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Category: Politics

  • MIL-OSI United Kingdom: Trade Secretary launches new fund to unlock multi-billion exports boost 

    Source: United Kingdom – Executive Government & Departments

    Jonathan Reynolds will announce Regulatory Partnership for Growth Fund on visit to Brazil including his first G20 meeting

    • New £2.3million Regulatory Partnership for Growth Fund will help to unlock export opportunities worth nearly £5 billion for UK companies over five years   
    • Sectors like clean energy and life sciences set to benefit, as fund targets trade barriers worth £300m in its first year   
    • Announcement comes as Jonathan Reynolds visits Brazil for G20 trade talks  

    The UK’s pharmaceutical industry will find it easier to sell innovative medicines in huge markets like Brazil and around the world thanks to a new fund to cut red tape and boost exports.  

    Trade Secretary Jonathan Reynolds will announce the new £2.3 million Regulatory Partnership for Growth Fund as part of a three-day visit to Brazil, which will include his first G20 meeting.  

    The fund builds on the Prime Minister’s call at the International Investment Summit last week for UK regulators to support the Government’s growth mission, keep pace with emerging industries and upgrade the regulatory regime to make it fit for the modern age.  

    The fund will help UK regulators work with international partners to remove trade barriers and shape markets in various growing sectors. This will see sectors benefit from a potential £5 billion of new export opportunities over five years, with trade barriers worth £300 million being targeted within the first 12 months – which would be equal to an average of £135 in exports per pound invested.   

    In an exciting project in the life sciences sector, this will see UK regulators and expert bodies work closely with Brazil’s Ministry of Health in sharing best practice around evaluating cancer drugs, supporting them to improve their nation’s health while making it easier for the industry to access Brazil’s pharmaceutical market. 

    Business and Trade Secretary Jonathan Reynolds said:   

    We are rolling up our sleeves and removing red tape where it is holding this country back from harnessing every opportunity available.  

    This multi-million-pound fund will unleash the potential of some of the most prominent sectors in the UK, and through our excellent regulators businesses will find it easier to sell their world class goods and services to Brazil and other partners around the world, as we continue to build momentum ahead of our new Industrial Strategy.

    The fund will also:  

    • enable the Offshore Renewable Energy (ORE) Catapult to partner with Brazil as it develops a comprehensive offshore wind regulatory framework, which could generate an additional £55 million of exports over five years for the UK supply chain.   
    • in the professional services sector, the Law Society will build closer relationships with other countries to reduce requirements for UK lawyers to practice overseas, including in some US states, where they have faced onerous requirements.    
    • support UK regulators who will aim to improve the process for accreditation of UK education programmes, such as university degrees, in countries all over the world, including Malaysia.  

    Dr Stephen Wyatt, Director – Strategy and Emerging Technology, ORE Catapult said:   

    The UK is a world leader in offshore wind and, in partnership with the Department for Business & Trade, we now have the opportunity to translate two decades of experience into new export opportunities for UK companies.    

    Our work will help other countries to accelerate their plans to develop offshore wind and pinpoint key areas, such as floating wind, project development, and operations and maintenance where the UK’s leading companies can also flourish overseas.

    Richard Atkinson, President of The Law Society England and Wales said:   

    The Law Society of England and Wales appreciates the government’s initiative to establish the Regulatory Partnership for Growth Fund.  

    This funding will provide essential support to UK businesses by helping them move past regulatory barriers in various global markets.  

    By building closer relationships with countries overseas, this fund will contribute to the growth and progression of the legal profession globally.

    It comes as the Trade Secretary heads to São Paulo and Brasília to build on the UK’s strong and enduring relationship with Brazil, meeting investors including one of the world’s biggest aircraft manufacturers, Embraer, as well as some of the largest UK businesses in Brazil such as Astra Zeneca.   

    The Trade Secretary will then meet Brazil’s Vice President and Trade Minister Geraldo Alckmin in Brasília, where they will talk about how to build on the over £10bn of UK-Brazil trade last year and implementation of Brazil’s Industrial Strategy ahead of the UK publishing its own next year. He will then meet his G20 counterparts and call for pragmatic and meaningful reform to strengthen the World Trade Organization, as well as action to promote gender equality in trade.   

    The Trade Secretary will also use the visit to hold the first bilateral meeting on trade between the UK and Argentina since 2019 when he meets with his counterpart Diana Mondino, where he will commit to strengthening the UK’s trade and investment relationship in line with both governments’ goals to support economic growth.  

    He will also speak to the Vice-President of the European Commission Valdis Dombrovskis, where he will emphasise the importance on resetting the relationship between the UK and the EU.   

    The meetings are alongside wider G20 discussions under Brazil’s presidency on sustainable investment and how trade can drive greener and more sustainable development, ahead of South Africa taking on the G20 Presidency in 2025.   

    Notes to Editors

    • Not all the trade barriers that are part of the £2.3m fund can be made public due to commercial or diplomatic sensitivity.  
    • The data on trade barriers to be resolved by the £2.3m fund is extracted from the Digital Market Access Service (DMAS). DMAS is not a comprehensive repository of all market access issues facing UK exporters, and reporting rates vary widely across countries and regions  
    • The £2.3m fund will be used to aid the resolution of 36 barriers in scope – the aggregate valuation of these barriers is around £5bn over 5 years. The aggregate figure of around £300m over 5 years is for a sample of 6 barriers only. To calculate the aggregate figures, the mid-point for each valuation range is estimated over a five-year period and added to provide a central estimate. Further details on the methodology for the aggregate valuation figures are published in a DBT analytical working paper. In some cases, estimates may have been sourced externally from industry.  
    • The figure of around £135 in export value per pound over five years is calculated by dividing £300m by the cost of the fund (£2.3m). This is a potential export win and it should not be interpreted that every additional pound might get another £135 in return.

    Updates to this page

    Published 23 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Government pledges to make UK ‘top destination for women’s sport investment’ following record-breaking summit

    Source: United Kingdom – Executive Government & Departments

    The government has launched the 2024-25 Women’s Sport Investment Accelerator scheme, helping to attract more private investment in women’s sport and drive growth into the sector.

    • New scheme launched to attract more private investment in women’s sport to help drive growth in the sector.
    • Over 20 leagues, teams and competitions across 9 different sports set to benefit, including England Women’s Cricket and Barclays Women’s Super League.
    • Follows record-breaking International Investment Summit which secured over £63bn of private investment into the UK.

    Women’s sport in the UK is set for a massive boost as the Government announces a scheme to drive investment in elite clubs and leagues across the country, as part of a new pledge to make the UK the world’s top destination for women’s sport investment. 

    The scheme will prioritise development, commercial growth and financial sustainability. Sponsorship and investment are key to increasing visibility and inspiring young female athletes to ensure greater talent pathways are created, and to develop their careers in sport.

    Investment Minister Poppy Gustafsson will today [Wednesday 23 October] launch the 2024-25 Women’s Sport Investment Accelerator scheme, which will bring over 20 elite leagues, competitions and teams across nine different sports, such as the Barclays Women’s Super League and England Women’s Cricket, together with investors and industry experts to help them secure transformational investment and sponsorships.

    It will provide them with comprehensive market insights, seminars, connections and networking opportunities over a series of sessions, led by the Department for Business and Trade in collaboration with Deloitte, which will give them the tools and expert insight to help them attract investment and grow their business.

    Investment Minister Poppy Gustafsson will launch the scheme at a sport investment conference at Rothschild & Co today, involving leaders from major UK sports and some of the world’s most prominent investors.

    Minister for Investment Poppy Gustafsson said:

    The UK is already an elite home of women’s sport, and my goal is to make us the top destination for women’s sport investment.  

    The launch of this scheme, a week after our record-breaking International Investment Summit, shows the UK is truly the best place to do business in this fast-growing industry. 

    Off the back of the latest figures showing the industry could be worth over £1 billion this year, I’m looking forward to speaking to investors and clubs, leagues and teams today about how the Accelerator can drive this growth even further.

    The scheme will capitalise on the rapid growth of the women’s sport industry, which is expected to be worth over £1 billion by the end of the year according to Deloitte, marking a 300 percent increase since 2021.

    By supporting women’s sport to attract new private investment into the UK it will help deliver on the Government’s central Growth Mission, building on existing support for growing women’s sport including the £30 million Lionesses Future Fund and over £12 million to grow women’s rugby.

    It follows a successful pilot of the scheme in 2023-24 which supported leagues, teams and competitions across football, cricket, rugby and more to secure game-changing investment and sponsorship deals.

    Now, with two new sports and a range of new competitions and teams signed up, the scheme will provide even more dedicated advice and support to attract investment and offer more connections with investors.

    The launch also comes after major recent UK women’s sport investment successes, including a £45 million sponsorship deal for the Barclays Women’s Super League, Michelle Kang’s acquisition of the London City Lionesses, and the England & Wales Cricket Board launching the process to secure private investment into The Hundred early next year.

    Minister for Sport Stephanie Peacock said:

    Women’s sport has been growing rapidly in recent years and we are committed to supporting its expansion, from the grassroots to elite level.

    Last year, we welcomed Karen Carney OBE’s Review of Women’s Football which addressed the importance of growing investment in women’s sport.

    As Sports Minister, I want to see as many women and girls as possible enjoy sport and physical activity, and this scheme will be instrumental in securing investment to grow the sector even further.

    England & Wales Cricket Board Director of the Women’s Professional Game Beth Barrett-Wild said:

    The first edition of the Women’s Sport Investment Accelerator scheme provided an engine to help power conversations and connections between rights holders, investors, and commercial partners, with expert insight from Deloitte helping to deepen understanding for all about the landscape and opportunities.   

    I’m really looking forward to the launch of year two, and the chance to take this discussion to the next level, as we all work together to unlock the full potential of women’s sport.

    Deloitte Sports Business Group Lead Partner Tim Bridge said:

    We’re witnessing a surge in investment opportunities within women’s sport. The rise of dedicated funds and brand sponsorships for women’s and girls’ clubs, leagues and competitions signals a powerful shift. The Accelerator programme has been built to connect investors and brands with these opportunities, showcasing the strength and remarkable growth potential of women’s sport. This influx of investment will be instrumental in driving professionalisation and boosting participation across the UK, creating a lasting impact for women’s sport at all levels while delivering significant economic returns.

    The Government’s pledge to make the UK the top destination for women’s sport investment comes after the record-breaking International Investment Summit held just last week, which secured £63 billion of private investment into the UK which will create over 38,000 new jobs across the country.

    Full list of the elite sports represented in the 2024-25 Women’s Sport Investment Accelerator: 

    • Football 
    • Cricket 
    • Rugby union 
    • Rugby league 
    • Tennis 
    • Golf 
    • Netball 
    • Volleyball 
    • Cycling

    Updates to this page

    Published 23 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI Canada: Child Abuse Prevention Month: Minister Turton

    Source: Government of Canada regional news

    “No child should ever have to experience abuse. Whether at school or in the home, online or out in the community, abuse of any kind is always unacceptable. Child Abuse Prevention Month serves as an important reminder that everyone has a responsibility to know the warning signs and speak up to keep young people safe.

    “Our government remains committed to protecting all children and youth and ensuring they have a safe place to turn, as well as the resources they need when abuse does happen. This includes supporting the invaluable work of Alberta’s child and youth advocacy centres, which foster welcoming environments where young survivors are empowered to tell their stories and seek justice, as well as Little Warriors, for those who need longer-term support to recover from child sexual abuse trauma.

    “If you believe a child’s safety is at risk, don’t wait. Call the confidential, 24/7 Child Intervention line at 1-800-638-0715 or contact the nearest Children and Family Services office, Delegated First Nations Agency or local police.

    “To every Albertan who has taken action to protect a child’s safety and well-being, or prevent abuse from happening in their community, thank you. To every child and youth who has experienced abuse: we believe you, you are not alone and help is available.”

    Related information

    • What is child abuse, neglect and sexual exploitation
    • Get help for child abuse, neglect and sexual exploitation | Alberta.ca
    • Alberta Child Advocacy Centres – AB Child Advocacy Centres (albertacacs.ca)

    MIL OSI Canada News –

  • MIL-OSI Australia: University Chancellors’ Council – 13th National Conference on University Governance

    Source: Australian Ministers for Education

    I acknowledge the Traditional Owners of the land on which the Summit is taking place today, and I pay my respects to elders, past and present.

    I also acknowledge:

    •    John Stanhope AO and all the members of the Organising Committee, including
    •    Terry Moran AC
    •    Peter Varghese AO
    •    John Brumby AO
    •    John Pollaers OAM
    •    And all the other university leaders in the room

    I’m sorry I can’t be there with you. I wish I was.

    Universities are future makers.

    They help build the future that we’re all going to live in.

    Build the workforce we’re going to need.

    But not just that.

    The research that our universities do grapple with the problems of today.

    And the upshot of that is a different world tomorrow.

    Look around and you can see the fingerprints of universities everywhere.

    From environmental and industrial innovations to the medicine we take or the technology we hold in our hands.

    It’s just another way of saying how important our universities are and the work they do.

    Then there’s the change that’s coming at us. That we have to adapt to. Respond to. That we have to be ready for.

    This conference is talking about that.

    And AI is a classic example of it.

    The Accord itself is all about getting us ready for that future. That change that is coming at us.

    A future where more people have a university degree than today.

    Where more people have a university qualification than ever before.

    Where by 2050, 80 per cent of the entire workforce would have a TAFE qualification or a university degree.

    That’s a big change.

    In the 1980s and 1990s, under Bob Hawke and Paul Keating, the number of Australians finishing high school jumped from around 40 per cent to almost 80 per cent.

    In the next 25 years it won’t just be 80 per cent of the workforce who have finished high school, 80 per cent will have gone to TAFE or university as well.

    That’s a big economic and social shift.

    Some of it will happen organically. Think about it.

    The fastest growing jobs in the future will be in areas like health care, teaching, ICT and engineering.

    And it’s often those professions that require university qualifications.

    But that alone is not enough to hit that 80 per cent target.

    We have also got to change.

    What the Accord says is we’ve got to break down that invisible barrier that stops a lot of people from getting a chance to go to university.

    Unless more people from poor backgrounds, more people from the outer suburbs, more people in the regions get a crack at university, then we won’t hit that target.

    That’s obvious just by looking at the raw statistics.

    About one in two young people in their 20s and 30s have a university degree, but not everywhere.  

    Not in the outer suburbs and not in the regions.

    At its core, the Universities Accord is about changing that.

    The first Accord bill is in the Parliament right now.

    It wipes about $3 billion of HECS debt, it creates paid prac, and it massively expands those FEE-FREE courses that act as a bridge between school and uni.

    That’s passed the House and it’s in the Senate.

    It’s just the start.

    The Accord is massive. Implementing it will take more than one budget or one government, but have bitten off a big chunk in this year’s budget.

    29 of the Accord’s 47 recommendations in full or in part.

    That includes a new funding system, needs-based funding and a new Australian Tertiary Education Commission to steer reform over multiple governments.

    And I hope to provide you with more detail on all of that before the end of the year.

    There is also another Accord Bill in the Parliament.

    That’s the one that sets up a National Student Ombudsman.

    An independent body to investigate and resolve disputes and give students a stronger voice when the worst happens.

    It is a necessary response to the terrible and appalling evidence of sexual violence and harassment on campus.

    But it’s not just about that. Its scope will be broad.

    That includes complaints about antisemitism and Islamophobia or any type of racism or discrimination.

    That builds on the work that TEQSA is doing with universities right now.

    The Accord also had a fair bit to say about governance more broadly.

    That’s why Education Ministers have agreed to set up the Expert Council on University Governance.

    It is based on a proposal from the University Chancellors Council.

    It is not intended to be a representative body or a stakeholder forum.

    Its job will really be to provide Ministers with expert and technical governance advice about how to improve university performance.

    There are three areas this Council will focus on:

    1.    Ensuring that universities are good employers providing a supportive workplace—and, importantly, a workplace where staff can have confidence that they will not be underpaid for the important work they do.
    2.    Making sure governing bodies have the right expertise, including in the business of running universities; and, of critical importance,
    3.    Making sure our universities are safe for our students and staff.

    My department is also engaging with the TEQSA to issue new guidance and requirements on workplace obligations for higher education providers.

    The department has also engaged an independent expert to support the National Tertiary Education Union (NTEU), Universities Australia (UA) and the Australian Higher Education Industrial Association (AHEIA) to assist in identification and resolution of priority issues to ensure universities are exemplary employers.

    And we will require universities to provide additional data to the Australian Government on casual staff numbers to increase transparency and understanding of workforce patterns and issues.

    All of these reforms are important to me.

    They are about making our universities as good as they possibly can be.

    Making them better.

    Making them fairer.

    And if we do that our country will be better and fairer too.

    Because the doors of opportunity, that the Prime Minister talks about and you hold in your hands, are opened just a bit wider.

    That’s what’s at stake.

    That’s how important the work you do is.

    Thank you and I hope you have a great conference.

    MIL OSI News –

  • MIL-OSI New Zealand: Coalition Government’s reforms give workers the best chance to succeed and prosper

    Source: New Zealand Government

    Minister for Workplace Relations and Safety Brooke van Velden responds to NZCTU’s protest across the country and says this Government is delivering for all workers, including the over 85 percent of New Zealand’s labour force who are not union members.

    “This coalition Government is focused on delivering for all hardworking New Zealanders as we continue to get spending under control, lift the country’s productivity and economic growth and deliver more efficient and effective public services,” says Ms van Velden.

    “In my own portfolio, I’ve been focused on getting the labour market settings right in order to ensure New Zealanders have access to more and better jobs,” says Ms van Velden.

    “At the beginning of my term this Government moved at pace to remove the Fair Pay Agreement legislation before any fair pay agreements were finalised and the negative impacts would have been felt by the labour market. Rather than helping employees, Fair Pay Agreements would have made life harder for businesses, making them more hesitant to employ people, and may have even resulted in business closure.

    “This Government also worked quickly to ensure that New Zealanders have access to more job opportunities, by extending the availability of 90-day trials. This allows employers to take on someone who might not tick all the boxes in terms of skills and experience but who has the right attitude, without the risk of a costly dismissal process.

    “Recently, I announced changes that would ensure workers could have certainty that they will continue to have access to contracting as a working arrangement and will have access to greater protections as well. The gateway contracting test achieves the best of all worlds: it gives businesses greater certainty to utilise contracting arrangements, but also improves the rights of workers by requiring there to be a written agreement and ensuring the characteristics of the work reflect a genuine contracting arrangement.

    “While I have not made any policy announcements yet, I expect the work I am doing to reform health and safety will create an environment where businesses and organisations can confidently address the things that cause workers harm. Workers and businesses should not be tripped up by unnecessary steps or trying to interpret and navigate complex or confusing rules and regulations.

    “Beyond my Workplace Relations and Safety portfolio, the coalition Government is delivering for workers across the board. That includes reducing inflation to ease the cost of living, delivering tax relief so that New Zealanders can enjoy the fruits of their hard work

    “New Zealanders elected a Government that would get government spending under control and deliver more efficient and effective public services. We make no apologies for starting to put things right.”

    MIL OSI New Zealand News –

  • MIL-OSI United Kingdom: Labour must bring councils back from “cliff edge” – Plaid Cymru Council Leaders

    Source: Party of Wales

    Plaid Cymru Council leaders have warned that Welsh councils face falling off a cliff edge unless both Labour governments take urgent action to address significant funding pressures.

    In a letter to the UK Chancellor and First Minister, the leaders of Carmarthenshire, Gwynedd, Ceredigion and Ynys Môn Councils along with the Deputy leader of Neath Port Talbot Council say “it is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act.”

    Writing ahead of next week’s UK government budget, Darren Price, Nia Jeffreys, Bryan Davies Gary Pritchard and Alun Llewelyn warn that a failure to act now will mean ”many services that protect the most vulnerable in society disappearing altogether.”

    Writing to Rachel Reeves and Eluned Morgan ahead of next week’s budget they say:

    “Whilst appreciating that the challenges you face are significant following 14 years of austerity, it is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act. 

    The UK Budget presents an opportunity to provide urgent additional funding to Wales for critical Services such as social care, children’s services, schools and highways.

    Without adequate levels of funding, our schools will continue to lack the resources they need to give pupils the education they deserve. As the National Association of Head Teachers amplified in its report last month, spending per pupil has fallen by around 6% in real terms – an unsustainable situation if we are to truly give learners the best start in life.

    The Welsh Local Government Association estimates that local authorities in Wales face additional financial pressures of £559m for 2025-26. This would require a spending increase of just over 7% in net revenue.

    To address a pressure of £559m, without additional funding, will require a mix of council tax increases and further cuts to services and efficiencies. The pressure is equivalent to a 26% increase in council tax, or the loss of just under 14,000 posts.

    We know that we speak for all Local Authority leaders in Wales when we say that the weight of responsibility when it comes to protecting the most vulnerable in our communities is felt more acutely than ever. 

    We trust that your respective governments will work together as you have repeatedly pledged to do to ensure that Wales receives a fair deal from the UK Budget and that our councils get the urgent financial support they so desperately need. 

    Failure to do this will see many councils falling off the cliff edge with many services that protect the most vulnerable in society disappearing altogether and leaving a lasting legacy of inequality and deprivation.”

    A copy of the letter is below:

    Dear Chancellor and First Minister,

    We write in advance of the UK Budget on 30 October to express our grave concerns at the state of Local Authority finances in Wales.

    Whilst appreciating that the challenges you face are significant following 14 years of austerity, it is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act.

    The General Secretary of UNISON, Chrstina McAnea, has already warned that numerous critical services and a considerable number of jobs are under threat, posing the risk of doing irreversible damage to our communities.  

    The UK Budget presents an opportunity to provide urgent additional funding to Wales for critical Services such as social care, children’s services, schools and highways.

    Without adequate levels of funding, our schools will continue to lack the resources they need to give pupils the education they deserve. As the National Association of Head Teachers amplified in its report last month, spending per pupil has fallen by around 6% in real terms – an unsustainable situation if we are to truly give learners the best start in life.

    The Welsh Local Government Association estimates that local authorities in Wales face additional financial pressures of £559m for 2025-26. This would require a spending increase of just over 7% in net revenue.

    To address a pressure of £559m, without additional funding, will require a mix of council tax increases and further cuts to services and efficiencies. The pressure is equivalent to a 26% increase in council tax, or the loss of just under 14,000 posts.

    We know that we speak for all Local Authority leaders in Wales when we say that the weight of responsibility when it comes to protecting the most vulnerable in our communities is felt more acutely than ever.

    We trust that your respective governments will work together as you have repeatedly pledged to do to ensure that Wales receives a fair deal from the UK Budget and that our councils get the urgent financial support they so desperately need.

    Failure to do this will see many councils falling off the cliff edge with many services that protect the most vulnerable in society disappearing altogether and leaving a lasting legacy of inequality and deprivation.

    Yn gywir,

    Darren Price, Leader of Carmarthenshire County Council

    Bryan Davies, Leader of Ceredigion County Council

    Gary Pritchard, Leader of Ynys Mon County Council

    Nia Jeffreys, Deputy Leader of Cyngor Gwynedd

    Alun Llewelyn, Deputy Leader of Neath Port Talbot

    MIL OSI United Kingdom –

  • MIL-OSI Security: Child Predator Sentenced to More than 27 Years in Prison for Sexual Exploitation of a 5-Year-Old Girl

    Source: Office of United States Attorneys

                WASHINGTON – Michael Humphrey, 43, a registered sex offender from Southeast Washington, D.C., was sentenced today in U.S. District Court to more than 27 years in federal prison for uploading graphic videos of himself to the internet depicting his sexual abuse of a five-year-old girl, announced U.S. Attorney Matthew Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD). 

               Humphrey pleaded guilty January 8 to sexual exploitation of a child. Humphrey previously was convicted on a charge relating to the sexual abuse of another child. On March 10, 2020, he was convicted of third-degree sex offense in the Circuit Court of Montgomery County, Maryland. Since May 2022, Humphrey has been registered as a sex offender in the District of Columbia as required by law.

               In addition to the 327-month prison term rendered today, U.S. District Judge Trevor N. McFadden ordered Humphrey to serve 15 years of supervised release and pay restitution to the girl and several other victims.

               According to the government’s evidence, in July 2023, Google LLC reported to the National Center for Missing and Exploited Children (NCMEC) that two Google accounts, later identified as belonging to Humphrey, had uploaded material depicting child sexual abuse to Google servers. NCMEC turned that information over to the investigators from the FBI Washington Field Office and the MPD. 

               Investigators obtained a warrant authorizing the search of Humphrey’s Google accounts and discovered three videos that documented Humphrey sexually abusing a five-year-old girl in Washington, D.C. during June 2023.

               Humphrey was arrested on August 11, 2023, and has been held since. After he was taken into custody, investigators obtained Humphrey’s electronic devices and discovered thousands of images and hundreds of videos depicting the sexual abuse of children.

               This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, detectives from the Metropolitan Police Department, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.

               The matter is being prosecuted by Assistant U.S. Attorneys Rachel Forman and Janani Iyengar, of the U.S. Attorney’s Office for the District of Columbia.

    23cr0304

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office to Oversee Complaints Related to November 2024 General Election

    Source: Office of United States Attorneys

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

    Assistant U.S. Attorney Seth Askins has been appointed to serve as District Election Officer for the Southern District of California, and in that capacity is responsible for overseeing the district’s handling of Election Day complaints regarding voting rights, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department headquarters in Washington, D.C.

    “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Tara McGrath. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

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

    U.S. Attorney McGrath said: “The right to vote is the cornerstone of American democracy. We all must ensure that those who are entitled to vote can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Askins will be on duty while the polls are open. He can be reached by the public at the following telephone number: (619) 546-6692.”

    In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (858) 320-1800.

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

    U.S. Attorney McGrath urged those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.

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

    MIL Security OSI –

  • MIL-OSI Australia: Transcript – ABC Northern Tasmania radio

    Source: Australia Government Ministerial Statements

    EVAN WALLACE: Against the political backdrop of the state government’s bungled delivery of the new Spirit of Tasmania ferries, Federal Minister for Infrastructure, Transport and Regional Development, Catherine King, has been in Burnie to check out a number of projects that are set to benefit Tasmania’s north west. The Burnie shiploader, which is now complete and will assist in shipping materials off for export, and sections of the Burnie Cultural Precinct, which are now open to the public. Minister, good morning.

    CATHERINE KING: Good morning, Evan. It’s lovely to be with you.

    EVAN WALLACE: Now, before we talk infrastructure, you’re a mum. We just heard some lovely reflections for National Children’s Week. Do you have a favourite nursery rhyme?

    CATHERINE KING: Oh gosh. Isn’t that funny? I had this little – there was a little Italian one called Sleep My Baby that I used to sing to my little boy, which I – [indistinct], I think it was called. And I used to sing that to him, so that was my favourite one, but hasn’t rubbed off. My son is now six foot five and 16, knows everything and towers over me and doesn’t sing or speak any Italian.

    EVAN WALLACE: Oh, shame, shame. Now, look, you’ve been in Burnie, checking out some major infrastructure projects, including the new Port of Burnie shiploader. What sort of difference will the new shiploader make to communities and businesses who call north and north west Tasmania home?

    CATHERINE KING: Well, what it does is – I actually had a chance to look at the old shiploader back in 2022. It was one of the first projects I visited after we came to government with Senator Anne Urquhart. It was a pretty rainy old day then, and you could tell this 1968 facility, whilst it had done Burnie proud and the people of the community proud, she was a bit tired and wasn’t working and functioning in the way that it should do. In particular, what you could see was that it didn’t meet OH&S standards. Workers really were stringing it together and trying to make it work. So this new shiploader meets all the new OH&S standards, the new cabin’s really comfortable, but it also loads more. It’s loaded already over 40,000 tonnes in freight. But what it also does is it’s very much part of the entire freight system here in Tasmania, getting those minerals to export, getting trucks off the road. So making sure that you’ve got those facilities. We’ve also- there’s also the bulk minerals export facility. There’s further money to go in that project. So really it’s about making sure Tasmania and the north west continues to have great facilities to export its products.

    EVAN WALLACE: But if you are in the north and north west and you’re scratching your head and think, oh, it might just be a bit of a politician ease there, just what sort of tangible difference will it make if you’re a business or a community member?

    CATHERINE KING: Well, it means that you can load more of your products onto the ships and more quickly, and that’s more efficient for the way in which you go about doing business. It means, potentially, that there can be more investment in some of the mines, more minerals coming out of Tasmania, and that means jobs.

    EVAN WALLACE: Succinctly put. Now, your government is contributing to a number of major infrastructure projects in Tasmania. In Launceston, you’ve allocated $65 million for the UTAS Stadium; in Hobart, $240 million for the Macquarie Point Precinct. On the mines, wherever you go in Launceston, where I am, people are talking about the state government’s bungled handling of the new Spirit of Tasmania ferries. Do you still have faith in the state government as an infrastructure partner after its bungled handling of the new Spirits, Minister?

    CATHERINE KING: Well, obviously, in terms of TasPorts and the Spirit of Tasmania as a government business enterprise, it has to work in the best interests of Tasmanians and I’m sure it’s under a fair bit of scrutiny at the moment and the government will need to deal with that. I’m really confident we’ve been delivering really big projects with the Tasmanian government for a long time. The Bridgeport Bridge is probably the largest of those at the moment. But I just drove over in Burnie, the upgrades to the bridge there, the walking tracks and the shiploader obviously is something I think Tasmanians can be very proud of.

    It has been delivered largely- it’s been delivered by TasRail, but it has been delivered by contracts with Tasmanian companies, built for Tasmania by Tasmanians, as we heard yesterday. The steel manufacturer from Haywards, I think also the builder. You’ve got some terrific companies here, and the- really, the issue with mega projects and these sorts of things is that, you know, really making sure that we’ve got good scrutiny on those is part of what my department is involved in, and also why I’ve stepped Infrastructure Australia up much more into the space of evaluation, learning from projects as we go. So we build a lot of things with the Tasmanian government, so I’m sure the Tasmanian Government will be looking at what’s gone wrong in terms of TasPorts and the ships as well, and learning lessons from that.

    EVAN WALLACE: But you still have full faith in the Tasmanian Government as an infrastructure partner?

    CATHERINE KING: Yeah. Well the projects we’re delivering with them, they have done well at and we continue to work really closely with them in terms of that. And I look forward to continuing to do that as well as delivering with the local councils along this coast.

    EVAN WALLACE: So you’re confident that with the likes of the UTAS Stadium, the Macquarie Point precinct, that these projects will be delivered on time and on budget?

    CATHERINE KING: Well, my department works really closely with the Tasmanian Government. We get project status reports, we make milestone payments, we’re all over it. And so we have a lot of confidence in working with the Tasmanian Government. They’ve been a proven delivery partner for many, years on projects that we co-invest with them on.

    EVAN WALLCE: You’ve talked about some of the steps that you might be taking with respect to oversight, and there are probably a lot of listeners wondering whether your government is going to take any extra steps, given what we’ve seen with the bungled handling of the Spirit of Tasmania ferries to ensure these projects stay on track. So speaking directly to those individuals who are feeling a bit dubious, or feeling- questioning just how well and how effectively these projects could get off the ground, what are those steps that your government is going to take to ensure that they do remain on track and on budget?

    CATHERINE KING: So every project requires a report to me before we release any money. And then there are milestone payments that happen across that. I’ve got department officials looking through that all the time and basically making decisions about where projects are ready. We do a lot of planning work before we start projects, before we commit any money to them, to make sure we actually have a really good handle on what the costs are going to be. Obviously, there are always things that happen from supply chain issues to labour, conditions. Obviously COVID added costs as well. And we factor those in when we’re doing some of the planning work and we’ve got much better at doing that. So that always happens. Milestone payments are through. And then the other thing I’ve done is introduced with Infrastructure Australia some post-evaluation work, so we learn. But mega projects, really- those ones we call them over 250 million, are always really difficult and they do require extra level of scrutiny. And that’s what we do when we’re co-investing with the Tasmanian government.

    EVAN WALLACE: So does that mean if that those projects fall off track, that they’re behind schedule, that you’ll just withhold payment from the Tasmanian Government?

    CATHERINE KING: We can do that. Or there can be other mitigation measures put in place. So certainly the first thing we ask is what’s happening. But really the way in which it works between the Commonwealth and the Tasmanian Government is we are in constant contact about where projects are up to, where milestones are up to, and that work is constant. So really our expectation is that- we don’t- there’s no surprises. We don’t suddenly hear that there is something going wrong with the project. We know if something’s happening and we can work out what mitigation needs to be put in place for that. But of course, ultimately under the deeds that we have, the agreements we have with- we can withhold payments and we don’t make final payments until quite some time after a project has actually been finished.

    EVAN WALLACE: And very quickly Catherine King, in 30 seconds or so, there is an election around the corner. You are in Tasmania’s north west today. If you’re someone listening in the north west and you’re struggling to keep a roof above your family’s head and put food on the table, what’s the one thing that your government has done that’s made the biggest difference to make their lives easier?

    CATHERINE KING: Well, the biggest thing that we’ve done is absolutely tackle inflation We’ve halved inflation since we came to office at the same time as providing cost of living relief, to take the sting out of this cost of living crisis where we can. So obviously the tax breaks, cheaper medicines, really concentrating on getting childcare fees down and investing in that, is an investment into our futures.

    EVAN WALLACE: More than one thing there, Minister. But before I let you go…

    CATHERINE KING: [Interrupts] There’s never one.

    EVAN WALLACE: … your favourite TV variety show?

    CATHERINE KING: Oh gosh, I knew you were going to ask me that, and it’s funny, I don’t watch a lot of TV, what I have been watching on, I think, Apple TV, is Slow Horses. If everyone hasn’t seen it, it’s not really a variety TV show, but that’s the one thing. And I think last Christmas my favourite thing I did over summer, was I lay on the couch, and I watched the entire series of Ted Lasso.

    EVAN WALLACE: Always good to have a laugh. Minister Catherine King, thanks for joining us on Northern Tasmania Breakfast.

    CATHERINE KING: Really good to be with you, Evan.

    MIL OSI News –

  • MIL-OSI New Zealand: General electorates down by one, number of Māori electorates stays at seven – Stats NZ media and information release: Number of electorates and electoral populations: 2023 Census

    Source: Statistics New Zealand

    General electorates down by one, number of Māori electorates stays at seven – 23 October 2024 – Aotearoa New Zealand has 120 parliamentary seats. These are made up of general electorate, Māori electorate, and list seats.

    The number of general electorates in Aotearoa New Zealand will decrease from 65 to 64 at the next general election. There is no change to the number of Māori electorates, which remains at seven, Stats NZ said today.

    The number of electorates in the North Island will decrease by one from 49 to 48.

    “This means there will be one more list seat in a 120-member Parliament,” acting deputy government statistician Kathy Connolly said.

    Data from the 2023 Census and Māori Electoral Option was used to determine these results.

    Visit our website to read this news story and information release:

    MIL OSI New Zealand News –

  • MIL-OSI Canada: Statement from Premier Pillai on New Brunswick election

    Source: Government of Canada regional news

    Premier Ranj Pillai has issued the following statement:

    “On behalf of the Government of Yukon, I would like to congratulate Susan Holt and the Liberal Party of New Brunswick on their success in yesterday’s election.

    “This is truly a historic moment, not just for New Brunswick but for all of Canada, as Premier-designate Holt will become the first woman to serve as Premier in the province’s history. Her success marks a significant milestone for leadership, gender equality and the advancement of progressive politics across our country.

    • Read more about Statement from Premier Pillai on New Brunswick election
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    MIL OSI Canada News –

  • MIL-OSI China: Harris to visit Texas where Senate race tightens

    Source: China State Council Information Office

    In the final weeks to Election Day, U.S. Vice President and Democratic presidential nominee Kamala Harris is to make a surprise visit to Houston, Texas, on Friday, as the Senate race between Democratic Congressman Colin Allred and Republican Senator Ted Cruz has become more competitive in the largest red state.

    This marks Harris’ first stop in Texas since July, where she will appear with Allred at a Friday afternoon rally, reportedly focusing on abortion rights, an issue central to elections nationwide.

    Allred, a three-term U.S. representative from Dallas, has been narrowing the polling gap with Cruz and consistently outraising him. National Democratic groups have poured millions of dollars into Allred’s campaign.

    Cruz, who is seeking for his third term, is still favored to win with an average lead of about four percentage points in recent public polls. However, two leading election forecasters now shifted the race from “likely Republican” to “lean Republican.”

    On Sunday, the Dallas Morning News, the state’s top newspaper by daily circulation, endorsed Allred, dealing another setback to Cruz. Some Democrats now view Texas as one of their best opportunities to gain a Senate seat.

    Allred has centered his campaign on Texas’ abortion ban, one of the strictest in the country, blasting Cruz for supporting a law with no exceptions for rape, incest, or the life of the mother. He also slammed Cruz for “only focused on himself,” citing the two-term senator’s 2021 Cancun vacation when millions of Texans lost power for days in a deadly historic winter storm.

    Cruz, on the other hand, has leaned heavily into immigration issues, accusing Allred and Harris of repeatedly voting for “open borders,” while largely avoiding addressing abortion exceptions, deferring the issue to state control.

    Harris County, which includes much of Houston, is a Democratic stronghold. In 2020, Biden won the county by 13 points, but Trump carried Texas by 5.6 points. Texas has remained the largest red state since Jimmy Carter’s victory in 1976.

    Early voting began across Texas on Monday.

    MIL OSI China News –

  • MIL-OSI China: IMF maintains 2024 global growth forecast at 3.2 pct, warns of geopolitical tensions

    Source: China State Council Information Office

    The International Monetary Fund (IMF) on Tuesday maintained its global growth forecast in 2024 at 3.2 percent, consistent with its projection in July, according to its newly released World Economic Outlook (WEO).

    The level of uncertainty surrounding the global economic outlook is high, the report noted.

    “Newly elected governments (about half of the world population has gone or will go to the polls in 2024) could introduce significant shifts in trade and fiscal policy,” the report said.

    IMF Chief Economist Pierre-Olivier Gourinchas speaks at a press conference in Washington, D.C., the United States, on Oct. 22, 2024. (Xinhua/Hu Yousong)

    “Moreover, the return of financial market volatility over the summer has stirred old fears about hidden vulnerabilities. This has heightened anxiety over the appropriate monetary policy stance — especially in countries where inflation is persistent and signs of slowdown are emerging,” it further said.

    The report also noted that a further intensification of geopolitical rifts could weigh on trade, investment and the free flow of ideas. “This could affect long-term growth, threaten the resilience of supply chains, and create difficult trade-offs for central banks,” it said.

    In response to a question from Xinhua, IMF Chief Economist Pierre-Olivier Gourinchas said at a press conference that rising geopolitical tensions are “something that we are very concerned about,” noting that there are two dimensions of the impact.

    “One is, of course, if you increase tariffs, for instance, between different blocks, that will disrupt trade, that will misallocate resources, that will weigh down on economic activity,” said Gourinchas.

    “But there is also an associated layer that comes from the uncertainty that increases related to future trade policy, and it will also depress investment, depress economic activity and consumption,” he continued.

    The chief economist noted that the IMF has found an impact on global output levels of approximately 0.5 percent in 2026. “So it’s a quite sizable effect of both an increase in tariffs between different countries and an increase in trade policy uncertainty,” he said.

    According to the latest WEO report, global growth is projected to hold steady, but there are weakening prospects and rising threats.

    The growth outlook is very stable in emerging markets and developing economies, around 4.2 percent this year and next, with continued robust performance from emerging Asia, the report said.

    Noting that the return of inflation near central bank targets paves the way for a policy triple pivot, Gourinchas said that the first pivot — on monetary policy — is under way already.

    The second pivot is on fiscal policy, he noted. “After years of loose fiscal policy in many countries, it is now time to stabilize debt dynamics and rebuild much-needed fiscal buffers,” Gourinchas said.

    The third pivot — and the hardest — is toward growth-enhancing reforms, he said. “Much more needs to be done to improve growth prospects and lift productivity,” he said.

    The IMF chief economist noted that while industrial and trade policy measures can sometimes boost investment and activity in the short run, especially when relying on debt-financed subsidies, “they often lead to retaliation and fail to deliver sustained improvements in standards of living.”

    “Economic growth must come instead from ambitious domestic reforms that boost technology and innovation, improve competition and resource allocation, further economic integration and stimulate productive private investment,” he added.

    MIL OSI China News –

  • MIL-OSI New Zealand: Government Cuts – Maranga Ake: Why FIRST Union is joining the fight

    Source: First Union

    FIRST Union is proud to be supporting Maranga Ake, today’s nationwide hui of the union movement of Aotearoa, and says that the current National-ACT-NZ First Government poses a significant threat to hard-won workplace rights and threatens the future prosperity and employment protections of workers in all industries.
    Dennis Maga, FIRST Union General Secretary, says that while the union has opposed several of the Government’s “regressive” policies like the reintroduction of 90-day trial legislation and the cancellation of Fair Pay Agreements, the greatest threat to workers’ wellbeing at present comes from Workplace Relations Minister Brooke Van Velden’s planned changes to contracting law.
    “We’re joining the movement today because our country’s sovereignty and working freedoms are being compromised by politicians selling out our lawmaking to overseas companies like Uber,” said Mr Maga.
    “The union movement has not undergone decades of struggle and strife only to have the freedoms we won cast aside in one term of Government.”
    Mr Maga pointed to recent revelations that Minister Brooke Van Velden’s planned principles for “reform” of contracting law appear to have been written largely by Uber lobbyists. Her proposed changes to the Employment Relations Act would weaken employment rights, increase contractor misclassification and sanction continued tax avoidance by companies like Uber, Mr Maga said.
    “It’s not just existing contractors who should be concerned about the Minister’s weakening of employment law – permanent employment could become precarious if contracting misclassification by employers becomes widespread and accepted.”
    Mr Maga said that historically, unions were the answer to problems created by Parliament.
    “The union movement is made up of hundreds of thousands of diverse and unique groups of people and workforces, and an attack on any industry is an attack on all of us,” said Mr Maga.
    “We deserve to be proud of country and proud of the significant victories won by workers, like the forty-hour working week, sick leave, holiday pay and collective bargaining.”
    “This is the time to stand up and fight back together against a brazen assault on workers’ rights while we still can.”

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Business and Tech – Connecting Kiwi cleantech ventures with global opportunities

    Source: Callaghan Innovation

    23 October 2024 – Fourteen ambitious Kiwi cleantech startups will soon chase global investment and partnership opportunities as part of the 2024 Cleantech Trek to the USA and Europe.

    Estimated to be worth more than NZD$1 trillion annually by 2030, the global cleantech market is growing rapidly due to investment in clean energy technologies like solar and wind, and growing consumer demand for more sustainably produced materials.  

    The 2024 Cleantech Trek is a New Zealand Cleantech Mission initiative to support innovative Kiwi startups to access the multi-billion-dollar global cleantech market.

    Participating companies will attend key industry events to pitch to investors, meet multinationals and make connections as they seek to participate in this market.

    A highlight of the trip will be a visit to leading global steelmaker ArcelorMittal’s commercial flagship carbon capture and utilisation facility in Ghent, Belgium.

    The commercial-scale facility uses Lanzatech’s carbon capture process to capture carbon-rich waste gases from steelmaking and convert these into advanced ethanol.

    Nasdaq listed Lanzatech began as a cleantech startup based in Auckland. “As Lanzatech has shown, we have the world-class science and engineering expertise, and vision, to develop cleantech solutions that can make a global impact,” says New Zealand Cleantech Mission Lead, Callaghan Innovation’s Phil Anderson.

    Because cleantech solutions are addressing the most difficult to solve environmental and sustainability challenges, their commercialisation typically requires more capital, stronger networks, and a longer path to market than is the case in most other sectors.

    “To succeed, Kiwi cleantech startups need to build long-term relationships with multi-nationals and investors to develop and commercialise their solutions on a global scale,” says Phil Anderson.

    The 2024 Cleantech Trek will begin in the USA in late October, and head to Europe, where three participating startups will be recognised on US-based Cleantech Group’s 2024 50 to Watch list, in Paris, at the 2024 Cleantech Forum Europe in early November.

    Cetogenix, Mushroom Material, and Nilo will be recognised on the Cleantech Group’s 2024 50 to Watch list of the top cleantech ventures globally in the early stages of commercialising solutions to global environmental problems and climate change.  

    “Having three Kiwi cleantech startups on this influential list shows that the world is beginning to see just how much potential Kiwi cleantech startups have to offer,” says Phil Anderson.  

    “This country is such a small player it’s really important that we work together when it comes to getting in front of potential investors and partners overseas.

    “That’s why I’m thrilled this year that the Cleantech Trek will be supported by NZTE, Are Ake, Auckland Unlimited and ASB Bank, who have come on board as our Europe leg sponsor, as well as our Verge stand partner Climate Salad,” he says.

    About Callaghan Innovation

    Callaghan Innovation is New Zealand’s innovation agency. It activates innovation and helps businesses grow faster for a better New Zealand. The government agency partners with ambitious businesses of all sizes, delivering a range of innovation and research and development (R&D) services to suit each stage of their growth. Its staff – including more than 150 of New Zealand’s leading scientists and engineers – empower innovators by connecting people, opportunities and networks, and providing tailored technical solutions, skills and capability development programmes, and grants co-funding. Callaghan Innovation also enhances the operation of New Zealand’s innovation ecosystem, working closely with MBIE, NZTE, NZVIF, Crown Research Institutes, and other organisations that help increase business investment in R&D and innovation. The agency operates from five urban offices and a regional partner network in a further 12 locations across Aotearoa.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Activist News – Christchurch City becomes the first New Zealand city to sanction Israel – PSNA

    Source: Palestine Solidarity Network Aotearoa

     

    This morning Christchurch City became the first city in New Zealand to sanction Israel after passing a resolution to amend its procurement policy to exclude companies building and maintaining illegal Israeli settlements on Palestinian land. 

     

    “We are delighted the council has taken a stand against Israel’s ongoing theft of Palestinian land”, says PSNA National Chair John Minto.

     

    “It has been the failure of western governments to hold Israel to account which means Israel has a 76-year history of oppression and brutal abuse of Palestinians.”

     

    “Today Israel is running riot across the Middle East because it has never been held to account for 76 years of flagrant breaches of international law,” says Minto.

     

    “The motion passed by Christchurch City today helps to end Israeli impunity for war crimes” (Building settlements on occupied land belonging to others is a war crime under international law)

     

    “The motion is a small but significant step in sanctioning Israel. Many more steps must follow”.

     

    “We are particularly pleased the council rejected the red herrings and obfuscations of New Zealand Jewish Council spokesperson Ben Kepes who urged councillors to reject the motion”

     

    “Mr Kepes presentation was a repetition of the tired, old arguments used by white South Africans to avoid accountability for their apartheid policies last century – policies which are mirrored in Israel today”

     

    Before the vote PSNA National Chair John Minto and University of Canterbury lecturer Josephine Varghese spoke in favour of the motion backed by a packed public gallery displaying a “Stop the genocide” banner.

     

    “It would be nice to think the government would pick up resolution 2334 and show leadership in sanctioning Israel rather than leaving it to local bodies”

     

    John Minto

    National Chair

    Palestine Solidarity Network Aotearoa

    MIL OSI New Zealand News –

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

    Source: New Zealand Governor General

    Fakaalofa lahi atu – and my very warmest Pacific greetings.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    MIL OSI New Zealand News –

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

    Source: New Zealand Governor General

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

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

    Tēnā koutou katoa.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    MIL OSI New Zealand News –

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

    MIL OSI Translation. French Polynesian to English –

    Source: Government of New Caledonia

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

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

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

     

    Findings on the current model

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

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

    Building on core values

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

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

     

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

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

    Clear strategic objectives

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

    Business model

    OS1 – Preserve decent purchasing power

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

    OS3 – Freeing up financing for the economy

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

    OS5 – Redefining the nickel industry model

    OS6 – Major infrastructure works

     

    Health and social model

    OS7 – Make the Caledonian health system viable and efficient

    OS8 – Controlling social protection expenditure

    OS9 – Strengthening family policy

     

    Institutional model

    OS10 – Making public action more efficient

    OS11 – Optimize the distribution of skills

    OS12 – Promoting the expression and representation of civil society

     

    Societal model

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

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

    OS15 – Protect and enhance natural resources

    OS16 – Preventing and adapting to climate change

    The prospects of PS2R

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

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

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

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

    MIL Translation OSI

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

    Source: Hong Kong Government special administrative region

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

    MIL OSI Asia Pacific News –

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

    Source: New South Wales Department of Primary Industries

    18 Oct 2024

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

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

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

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

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

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

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

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

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

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

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

    NSW Minister for Agriculture, Tara Moriarty said:

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

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

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

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

    MEDIA: Alastair Walton | Minister Moriarty | 0418 251 229

    MIL OSI News –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

    FINANCIAL POSITION AND RATIO

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

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

    OUTLOOK

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

    CORPORATE PROFILE

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

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

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

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

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

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

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

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

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

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

    The MIL Network –

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

    By Sialai Sarafina Sanerivi in Apia

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    “Oceans are the most underfunded area.

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

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

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

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

    Republished from the Samoa Observer with permission.

    MIL OSI Analysis – EveningReport.nz –

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

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

    Damitha Jayawardena/Shutterstock

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

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

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

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

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

    Striking the right balance

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

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

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

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

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

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

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

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

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

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

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

    It’s time for carbon pricing

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

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

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

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

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

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

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

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

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

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

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

    A carbon solutions levy

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

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

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

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

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

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

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

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

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

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

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

    Regional considerations

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

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

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

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

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

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

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

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

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

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

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

    The alternatives to carbon pricing are weak

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    MIL OSI Analysis – EveningReport.nz –

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

    Source: China State Council Information Office 3

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

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

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

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

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

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

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

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

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

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

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

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

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

    MIL OSI China News –

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

    Source: China State Council Information Office 3

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

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

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

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

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

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

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

    MIL OSI China News –

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    MIL OSI China News –

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

    Source: GlobeNewswire (MIL-OSI)

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

    QUARTER HIGHLIGHTS (3rdQuarter 2024 versus 2ndQuarter 2024)

    Income Statement

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

    Balance Sheet

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

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

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

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

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

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

    Provision for Credit Losses

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

    Noninterest Income and Noninterest Expense

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

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

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

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

    Income Taxes

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

    Discussion of Financial Condition

    Earning Assets

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

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

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

    Allowance for Credit Losses

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

    Credit Quality

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

    Deposits

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

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

    Liquidity

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

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

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

    Capital

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

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

    About Capital City Bank Group, Inc.

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

    FORWARD-LOOKING STATEMENTS

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

    USE OF NON-GAAP FINANCIAL MEASURES
    Unaudited

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

    The GAAP to non-GAAP reconciliations are provided below.

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

    CEO COMMENTARY:

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


    THIRD     QUARTER HIGHLIGHTS2:

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


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

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

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

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

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

    LOANS
    Broad-based disciplined commercial loan growth.

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

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

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

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

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

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

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

    NONINTEREST EXPENSE
    Disciplined expense management.

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

    INCOME TAXES

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

    CAPITAL
    Capital ratios remain strong.

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

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

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

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

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

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

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

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

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

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

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

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

                    

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

    The MIL Network –

  • MIL-OSI Submissions: Census results reflect Aotearoa New Zealand’s diversity – Stats NZ media and information release: 2023 Census population, dwelling, and housing highlights

    Source: Statistics New Zealand

    Census results reflect Aotearoa New Zealand’s diversity – media release – 3 October 2024 – Aotearoa New Zealand continues to become more culturally diverse, according to 2023 Census data released by Stats NZ today.

    The 2023 Census showed that people living in Aotearoa New Zealand identified with a wide range of ethnicities – and spoke over 150 languages. Additionally, while most of the population were born here, New Zealand was also home to people born in a diverse range of countries.

    “Just under 30 percent of New Zealanders were born overseas, and the census recorded well over 200 different birthplaces,” deputy government statistician and deputy chief executive insights and statistics Rachael Milicich said.

    “Pretty much every part of the world is represented here, from people born in Iceland in the north, to Argentina in the south.”

    Of the census usually resident population count, 3.5 million people were born in New Zealand and 1.4 million were born overseas.

    Visit Statistics NZ’s website to read this news story and information release:

    MIL OSI –