Category: Taxation

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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

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: 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 (3^rdQuarter 2024 versus 2^ndQuarter 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

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

Source: GlobeNewswire (MIL-OSI)

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

Balance Sheet Well Positioned to Benefit From Federal Reserve Rate Cuts

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

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

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

Highlights for the Third Quarter of 2024 Included:

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

Management’s Discussion of Quarterly Operating Results

Net Interest Income

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

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


(Dollars in thousands)	Q3 2024				Q2 2024				Q3 2023
Net interest income	$	79,924			$	75,502			$	76,479
Purchase accounting amortization (accretion) on loans (“PAA”)		(266	)			(101	)			186
Adjusted net interest income excluding PAA on loans (non-GAAP)	$	79,658			$	75,401			$	76,665

Average interest-earning assets	$	12,734,246			$	12,624,556			$	12,984,061

NIM ⁽¹⁾		2.50		%		2.41		%		2.34	%
Adjusted NIM excluding PAA on loans (non-GAAP) ⁽²⁾		2.49		%		2.40		%		2.34	%

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

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

Loan Portfolio

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

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


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

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

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


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

Deposits and Borrowed Funds

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

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

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

Non-Interest Income

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

Non-Interest Expense

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

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

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

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

Income Tax Expense

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

Credit Quality

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

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

Capital Management

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

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

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

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

Earnings Call Information

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

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

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

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

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

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

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

Contact: Avinash Reddy
Senior Executive Vice President – Chief Financial Officer
718-782-6200 extension 5909

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands)

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

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

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

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except share and per share amounts)

	Three Months Ended								Nine Months Ended
	September 30,		June 30,			September 30,			September 30,			September 30,
	2024		2024			2023			2024			2023
Interest income:
Loans	$	151,828	$	147,099		$	142,995		$	442,492		$	409,744
Securities		7,766		7,907			7,916			23,553			24,261
Other short-term investments		4,645		4,412			6,930			18,621			16,599
Total interest income		164,239		159,418			157,841			484,666			450,604
Interest expense:
Deposits and escrow		74,025		72,878			62,507			219,972			152,395
Borrowed funds		8,764		9,033			16,925			32,494			50,855
Derivative cash collateral		1,526		2,005			1,930			5,244			4,904
Total interest expense		84,315		83,916			81,362			257,710			208,154
Net interest income		79,924		75,502			76,479			226,956			242,450
Provision (recovery) for credit losses		11,603		5,585			1,806			22,398			(950	)
Net interest income after provision (recovery)		68,321		69,917			74,673			204,558			243,400
Non-interest income:
Service charges and other fees		4,267		3,972			3,963			12,783			12,633
Title fees		190		294			291			617			829
Loan level derivative income		132		1,085			783			1,623			6,353
BOLI income		2,606		2,484			2,317			7,551			7,332
Gain on sale of Small Business Administration (“SBA”) loans		19		113			335			385			1,061
Gain on sale of residential loans		38		27			21			142			103
Fair value change in equity securities and loans held for sale		39		(416	)		(299	)		(1,219	)		(1,079	)
Net loss on sale of securities		—		—			—			—			(1,447	)
Gain (loss) on sale of other assets		2		3,695			(22	)		6,665			(22	)
Other		338		554			539			1,359			1,571
Total non-interest income		7,631		11,808			7,928			29,906			27,334
Non-interest expense:
Salaries and employee benefits		36,132		32,184			30,520			100,353			87,054
Severance		—		—			8,562			42			9,068
Occupancy and equipment		7,448		7,409			7,277			22,225			21,794
Data processing costs		4,544		4,405			4,309			13,262			12,744
Marketing		1,629		1,637			2,079			4,763			5,016
Professional services		2,036		2,766			1,277			6,269			4,876
Federal deposit insurance premiums		2,105		2,250			1,866			6,594			5,613
Loss on extinguishment of debt		1		—			—			454			—
Amortization of other intangible assets		286		285			349			878			1,075
Other		3,548		4,758			3,284			11,094			11,944
Total non-interest expense		57,729		55,694			59,523			165,934			159,184
Income before taxes		18,223		26,031			23,078			68,530			111,550
Income tax expense		4,896		7,552			8,093			19,033			31,764
Net income		13,327		18,479			14,985			49,497			79,786
Preferred stock dividends		1,822		1,822			1,822			5,465			5,465
Net income available to common stockholders	$	11,505	$	16,657		$	13,163		$	44,032		$	74,321
Earnings per common share (“EPS”):
Basic	$	0.29	$	0.43		$	0.34		$	1.13		$	1.92
Diluted	$	0.29	$	0.43		$	0.34		$	1.13		$	1.92

Average common shares outstanding for diluted EPS		38,366,619		38,329,485			38,203,961			38,317,223			38,177,704

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED SELECTED FINANCIAL HIGHLIGHTS (Dollars in thousands except per share amounts)

	At or For the Three Months Ended									At or For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Per Share Data:
Reported EPS (Diluted)	$	0.29		$	0.43		$	0.34		$	1.13		$	1.92
Cash dividends paid per common share		0.25			0.25			0.25			0.75			0.74
Book value per common share		29.31			28.97			28.03			29.31			28.03
Tangible common book value per share ⁽¹⁾		25.22			24.87			23.87			25.22			23.87
Common shares outstanding		39,152			39,148			38,811			39,152			38,811
Dividend payout ratio		86.21	%		58.14	%		73.53	%		66.37	%		38.54	%

Performance Ratios (Based upon Reported Net Income):
Return on average assets		0.39	%		0.55	%		0.44	%		0.49	%		0.78	%
Return on average equity		4.19			5.88			4.91			5.24			8.78
Return on average tangible common equity ⁽¹⁾		4.70			6.88			5.69			6.06			10.73
Net interest margin		2.50			2.41			2.34			2.37			2.52
Non-interest expense to average assets		1.71			1.66			1.73			1.63			1.56
Efficiency ratio		65.9			63.8			70.5			64.6			59.0
Effective tax rate		26.87			29.01			35.07			27.77			28.48

Balance Sheet Data:
Average assets	$	13,502,753		$	13,418,441		$	13,759,493		$	13,571,710		$	13,623,570
Average interest-earning assets		12,734,246			12,624,556			12,984,061			12,791,233			12,853,701
Average tangible common equity ⁽¹⁾		996,578			979,611			943,805			981,614			933,072
Loan-to-deposit ratio at end of period ⁽²⁾		95.4			98.2			102.0			95.4			102.0

Capital Ratios and Reserves – Consolidated: ⁽³⁾
Tangible common equity to tangible assets ⁽¹⁾		7.27	%		7.27	%		6.87	%
Tangible equity to tangible assets ⁽¹⁾		8.13			8.14			7.73
Tier 1 common equity ratio		10.16			10.06			9.67
Tier 1 risk-based capital ratio		11.28			11.17			10.76
Total risk-based capital ratio		14.76			14.46			13.33
Tier 1 leverage ratio		8.76			8.78			8.38
Consolidated CRE concentration ratio ⁽⁴⁾		487			499			547
Allowance for credit losses/ Total loans		0.78			0.72			0.67
Allowance for credit losses/ Non-performing loans		172.29			313.21			311.16

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

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

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME (Dollars in thousands)

	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
					Average						Average						Average
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Interest-earning assets:
Business loans ⁽¹⁾	$	2,609,934	$	46,656	7.11	%	$	2,400,219	$	42,933	7.19	%	$	2,260,203	$	38,384	6.74	%
One-to-four family residential, including condo and coop		924,150		11,024	4.75			886,037		9,968	4.52			879,688		9,165	4.13
Multifamily residential and residential mixed-use		3,902,220		45,790	4.67			3,958,617		45,775	4.65			4,114,476		46,099	4.45
Non-owner-occupied commercial real estate		3,297,760		44,804	5.40			3,359,004		44,728	5.36			3,382,927		44,184	5.18
Acquisition, development, and construction		147,875		3,505	9.43			164,283		3,638	8.91			222,039		5,075	9.07
Other loans		4,891		49	3.99			5,100		57	4.50			6,156		88	5.67
Securities		1,493,492		7,766	2.07			1,537,487		7,907	2.07			1,619,960		7,916	1.94
Other short-term investments		353,924		4,645	5.22			313,809		4,412	5.65			498,612		6,930	5.51
Total interest-earning assets		12,734,246		164,239	5.13	%		12,624,556		159,418	5.08	%		12,984,061		157,841	4.82	%
Non-interest-earning assets		768,507						793,885						775,432
Total assets	$	13,502,753					$	13,418,441					$	13,759,493

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking ⁽²⁾	$	798,024	$	4,635	2.31	%	$	631,403	$	1,499	0.95	%	$	786,892	$	2,896	1.46	%
Money market		3,771,562		36,841	3.89			3,495,989		33,193	3.82			2,975,267		24,275	3.24
Savings ⁽²⁾		2,102,282		19,492	3.69			2,336,202		23,109	3.98			2,342,424		20,316	3.44
Certificates of deposit		1,232,984		13,057	4.21			1,393,678		15,077	4.35			1,494,491		15,020	3.99
Total interest-bearing deposits		7,904,852		74,025	3.73			7,857,272		72,878	3.73			7,599,074		62,507	3.26
FHLBNY advances		528,652		4,455	3.35			671,242		6,429	3.85			1,250,717		14,370	4.56
Subordinated debt, net		271,450		4,307	6.31			202,232		2,604	5.18			200,232		2,553	5.06
Other short-term borrowings		131		2	6.07			—		—	—			120		2	6.61
Total borrowings		800,233		8,764	4.36			873,474		9,033	4.16			1,451,069		16,925	4.63
Derivative cash collateral		91,305		1,526	6.65			145,702		2,005	5.53			156,795		1,930	4.88
Total interest-bearing liabilities		8,796,390		84,315	3.81	%		8,876,448		83,916	3.80	%		9,206,938		81,362	3.51	%
Non-interest-bearing checking ⁽²⁾		3,209,502						3,042,382						3,065,186
Other non-interest-bearing liabilities		223,546						242,980						265,559
Total liabilities		12,229,438						12,161,810						12,537,683
Stockholders’ equity		1,273,315						1,256,631						1,221,810
Total liabilities and stockholders’ equity	$	13,502,753					$	13,418,441					$	13,759,493
Net interest income			$	79,924					$	75,502					$	76,479
Net interest rate spread					1.32	%					1.28	%					1.31	%
Net interest margin					2.50	%					2.41	%					2.34	%
Deposits (including non-interest-bearing checking accounts) ⁽²⁾	$	11,114,354	$	74,025	2.65	%	$	10,899,654	$	72,878	2.69	%	$	10,664,260	$	62,507	2.33	%

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

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS (Dollars in thousands)

	At or For the Three Months Ended
	September 30,			June 30,			September 30,
Asset Quality Detail	2024			2024			2023
Non-performing loans (“NPLs”)
Business loans ⁽¹⁾	$	25,411		$	20,287		$	19,555
One-to-four family residential, including condominium and cooperative apartment		3,880			3,884			2,874
Multifamily residential and residential mixed-use		—			—			—
Non-owner-occupied commercial real estate		19,509			15			15
Acquisition, development, and construction		657			657			657
Other loans		6			—			219
Total Non-accrual loans	$	49,463		$	24,843		$	23,320
Total Non-performing assets (“NPAs”)	$	49,463		$	24,843		$	23,320

Total loans 90 days delinquent and accruing (“90+ Delinquent”)	$	—		$	—		$	—

NPAs and 90+ Delinquent	$	49,463		$	24,843		$	23,320

NPAs and 90+ Delinquent / Total assets		0.36	%		0.18	%		0.17	%
Net charge-offs (“NCOs”)	$	4,199		$	3,640		$	4,864
NCOs / Average loans ⁽²⁾		0.15	%		0.14	%		0.18	%

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

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

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

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


	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2024				2024				2023				2024				2023
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders
Reported net income available to common stockholders	$	11,505			$	16,657			$	13,163			$	44,032			$	74,321
Adjustments to net income ^(1):
Fair value change in equity securities and loans held for sale		(39	)			416				299				1,219				1,079
Net (gain) loss on sale of securities and other assets		(2	)			(3,695	)			22				(6,665	)			1,469
Severance		—				—				8,562				42				9,068
Loss on extinguishment of debt		1				—				—				454				—
Income tax effect of adjustments		13				1,043				(176	)			1,574				(985	)
Adjusted net income available to common stockholders (non-GAAP)	$	11,478			$	14,421			$	21,870			$	40,656			$	84,952

Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)
Adjusted EPS (Diluted)	$	0.29			$	0.37			$	0.56			$	1.04			$	2.19
Adjusted return on average assets		0.39		%		0.48		%		0.69		%		0.45		%		0.88		%
Adjusted return on average equity		4.18				5.17				7.76				4.89				9.95
Adjusted return on average tangible common equity		4.69				5.97				9.38				5.60				12.25
Adjusted non-interest expense to average assets		1.70				1.65				1.48				1.62				1.46
Adjusted efficiency ratio		65.6				65.9				59.7				65.5				54.7

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

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


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

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


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

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

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


	September 30,				June 30,				September 30,
	2024				2024				2023
Reconciliation of Tangible Assets:
Total assets	$	13,746,529			$	13,548,763			$	13,651,405
Goodwill		(155,797	)			(155,797	)			(155,797	)
Other intangible assets		(4,181	)			(4,467	)			(5,409	)
Tangible assets (non-GAAP)	$	13,586,551			$	13,388,499			$	13,490,199

Reconciliation of Tangible Common Equity – Consolidated:
Total stockholders’ equity	$	1,263,929			$	1,250,596			$	1,204,344
Goodwill		(155,797	)			(155,797	)			(155,797	)
Other intangible assets		(4,181	)			(4,467	)			(5,409	)
Tangible equity (non-GAAP)		1,103,951				1,090,332				1,043,138
Preferred stock, net		(116,569	)			(116,569	)			(116,569	)
Tangible common equity (non-GAAP)	$	987,382			$	973,763			$	926,569

Common shares outstanding		39,152				39,148				38,811

Tangible common equity to tangible assets (non-GAAP)		7.27		%		7.27		%		6.87		%
Tangible equity to tangible assets (non-GAAP)		8.13				8.14				7.73

Book value per common share	$	29.31			$	28.97			$	28.03
Tangible common book value per share (non-GAAP)		25.22				24.87				23.87

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
Net Income	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 Income/NIM	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
Deposits and Funding	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%
Return Profile & Capital	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

¹Non-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 ²Comparisons are on a linked-quarter basis, unless otherwise noted ³Includes loans held-for-sale ⁴Includes the provision for unfunded commitments ⁵Expense 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 adjustment^1,3		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.

MIL-OSI: First Financial Corporation Reports Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

Average Total Loans

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

Total Loans Outstanding

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

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

Average Total Deposits

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

Total Deposits

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

Shareholders’ Equity

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

Book Value Per Share

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

Tangible Common Equity to Tangible Asset Ratio

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

Net Interest Income

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

Net Interest Margin

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

Nonperforming Loans

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

Credit Loss Provision

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

Net Charge-Offs

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

Allowance for Credit Losses

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

Non-Interest Income

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

Non-Interest Expense

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

Efficiency Ratio

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

Income Taxes

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

About First Financial Corporation

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

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


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
END OF PERIOD BALANCES
Assets	$	5,483,351	$	4,891,068	$	4,784,806	$	5,483,351	$	4,784,806
Deposits	$	4,717,489	$	4,132,327	$	4,040,995	$	4,717,489	$	4,040,995
Loans, including net deferred loan costs	$	3,715,235	$	3,204,009	$	3,117,626	$	3,715,235	$	3,117,626
Allowance for Credit Losses	$	46,169	$	38,334	$	39,034	$	46,169	$	39,034
Total Equity	$	565,951	$	530,670	$	470,168	$	565,951	$	470,168
Tangible Common Equity ^(a)	$	446,786	$	438,569	$	377,367	$	446,786	$	377,367

AVERAGE BALANCES
Total Assets	$	5,483,572	$	4,813,308	$	4,814,251	$	5,033,748	$	4,828,165
Earning Assets	$	5,165,520	$	4,556,839	$	4,575,996	$	4,762,940	$	4,590,258
Investments	$	1,342,037	$	1,279,278	$	1,351,433	$	1,309,879	$	1,384,941
Loans	$	3,705,779	$	3,197,695	$	3,147,317	$	3,361,207	$	3,104,623
Total Deposits	$	4,705,614	$	4,113,826	$	4,000,302	$	4,288,426	$	4,124,520
Interest-Bearing Deposits	$	4,403,454	$	3,413,752	$	3,222,633	$	3,714,432	$	3,309,111
Interest-Bearing Liabilities	$	157,227	$	152,303	$	309,948	$	176,985	$	197,142
Total Equity	$	546,912	$	517,890	$	493,764	$	529,174	$	494,428

INCOME STATEMENT DATA
Net Interest Income	$	47,170	$	39,294	$	41,150	$	125,384	$	127,672
Net Interest Income Fully Tax Equivalent ^(b)	$	48,630	$	40,673	$	42,539	$	129,600	$	131,774
Provision for Credit Losses	$	9,400	$	2,966	$	1,200	$	14,166	$	4,800
Non-interest Income	$	11,223	$	9,905	$	11,627	$	30,559	$	31,455
Non-interest Expense	$	38,564	$	32,651	$	32,265	$	104,637	$	95,932
Net Income	$	8,741	$	11,369	$	16,285	$	31,034	$	48,252

PER SHARE DATA
Basic and Diluted Net Income Per Common Share	$	0.74	$	0.96	$	1.37	$	2.63	$	4.02
Cash Dividends Declared Per Common Share	$	0.45	$	0.45	$	—	$	1.35	$	0.54
Book Value Per Common Share	$	47.93	$	44.92	$	40.00	$	47.93	$	40.00
Tangible Book Value Per Common Share ^(c)	$	36.22	$	36.04	$	33.69	$	37.84	$	32.10
Basic Weighted Average Common Shares Outstanding		11,808		11,814		11,901		11,809		11,993

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


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

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



Asset Quality	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Accruing loans and leases past due 30-89 days	$	16,391	$	14,913	$	15,961	$	16,391	$	15,961
Accruing loans and leases past due 90 days or more	$	1,517	$	1,353	$	1,370	$	1,517	$	1,370
Nonaccrual loans and leases	$	12,617	$	14,563	$	11,214	$	12,617	$	11,214
Other real estate owned	$	169	$	170	$	63	$	169	$	63
Nonperforming loans and other real estate owned	$	14,303	$	16,086	$	12,647	$	14,303	$	12,647
Total nonperforming assets	$	17,179	$	18,978	$	15,671	$	17,179	$	15,671
Gross charge-offs	$	6,936	$	6,091	$	3,601	$	16,219	$	11,520
Recoveries	$	2,365	$	1,414	$	1,528	$	5,449	$	5,975
Net charge-offs/(recoveries)	$	4,571	$	4,677	$	2,073	$	10,770	$	5,545


Non-GAAP Reconciliations	Three Months Ended September 30,
	2024		2023
($in thousands, except EPS)
Income before Income Taxes	$	10,429	$	19,312
Provision for credit losses		9,400		1,200
Provision for unfunded commitments		100		—
Pre-tax, Pre-provision Income	$	19,929	$	20,512


Non-GAAP Reconciliations	Nine Months Ended September 30,
	2024			2023
($ in thousands, except EPS)
Income before Income Taxes	$	37,140		$	58,395
Provision for credit losses		14,166			4,800
Provision for unfunded commitments		(200	)		(100	)
Pre-tax, Pre-provision Income	$	51,106		$	63,095


CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data)

	September 30,			December 31,
	2024			2023
	(unaudited)
ASSETS
Cash and due from banks	$	77,312		$	76,759
Federal funds sold		1,356			282
Securities available-for-sale		1,271,992			1,259,137
Loans:
Commercial		2,112,738			1,817,526
Residential		924,276			695,788
Consumer		671,353			646,758
		3,708,367			3,160,072
(Less) plus:
Net deferred loan costs		6,868			7,749
Allowance for credit losses		(46,169	)		(39,767	)
		3,669,066			3,128,054
Restricted stock		15,366			15,364
Accrued interest receivable		25,386			24,877
Premises and equipment, net		82,213			67,286
Bank-owned life insurance		128,242			114,122
Goodwill		93,363			86,985
Other intangible assets		25,802			5,586
Other real estate owned		169			107
Other assets		93,084			72,587
TOTAL ASSETS	$	5,483,351		$	4,851,146

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	831,575		$	750,335
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits		159,618			92,921
Other interest-bearing deposits		3,726,296			3,246,812
		4,717,489			4,090,068
Short-term borrowings		84,363			67,221
FHLB advances		30,456			108,577
Other liabilities		85,092			57,304
TOTAL LIABILITIES		4,917,400			4,323,170

Shareholders’ equity
Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-16,165,023 in 2024 and 16,137,220 in 2023
Outstanding shares-11,808,304 in 2024 and 11,795,024 in 2023		2,016			2,014
Additional paid-in capital		144,785			144,152
Retained earnings		677,155			663,726
Accumulated other comprehensive income/(loss)		(102,800	)		(127,087	)
Less: Treasury shares at cost-4,356,719 in 2024 and 4,342,196 in 2023		(155,205	)		(154,829	)
TOTAL SHAREHOLDERS’ EQUITY		565,951			527,976
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,483,351		$	4,851,146


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollar amounts in thousands, except per share data)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2024		2023			2024		2023
						(unaudited)
INTEREST INCOME:
Loans, including related fees	$	61,367	$	49,146		$	162,878	$	140,220
Securities:
Taxable		6,319		6,164			18,083		18,631
Tax-exempt		2,715		2,661			7,919		7,937
Other		1,294		752			2,989		2,864
TOTAL INTEREST INCOME		71,695		58,723			191,869		169,652
INTEREST EXPENSE:
Deposits		22,197		13,627			59,622		35,111
Short-term borrowings		993		1,923			2,928		4,025
Other borrowings		1,335		2,023			3,935		2,844
TOTAL INTEREST EXPENSE		24,525		17,573			66,485		41,980
NET INTEREST INCOME		47,170		41,150			125,384		127,672
Provision for credit losses		9,400		1,200			14,166		4,800
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		37,770		39,950			111,218		122,872
NON-INTEREST INCOME:
Trust and financial services		1,251		1,140			3,903		3,642
Service charges and fees on deposit accounts		8,139		7,099			21,576		20,971
Other service charges and fees		191		213			700		613
Securities gains (losses), net		103		—			104		—
Interchange income		177		—			490		47
Loan servicing fees		274		447			957		997
Gain on sales of mortgage loans		411		321			886		811
Other		677		2,407			1,943		4,374
TOTAL NON-INTEREST INCOME		11,223		11,627			30,559		31,455
NON-INTEREST EXPENSE:
Salaries and employee benefits		18,521		17,159			53,231		51,263
Occupancy expense		2,556		2,389			7,116		7,120
Equipment expense		4,280		3,580			12,736		10,404
FDIC Expense		558		613			1,721		1,977
Other		12,649		8,524			29,833		25,168
TOTAL NON-INTEREST EXPENSE		38,564		32,265			104,637		95,932
INCOME BEFORE INCOME TAXES		10,429		19,312			37,140		58,395
Provision for income taxes		1,688		3,027			6,106		10,143
NET INCOME		8,741		16,285			31,034		48,252
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes		31,628		(34,934	)		24,067		(36,504	)
Change in funded status of post retirement benefits, net of taxes		73		146			220		440
COMPREHENSIVE INCOME (LOSS)	$	40,442	$	(18,503	)	$	55,321	$	12,188
PER SHARE DATA
Basic and Diluted Earnings per Share	$	0.74	$	1.37		$	2.63	$	4.02
Weighted average number of shares outstanding (in thousands)		11,808		11,901			11,809		11,993

MIL-OSI: QNB Corp. Reports Earnings for Third Quarter 2024

Source: GlobeNewswire (MIL-OSI)

QUAKERTOWN, Pa., Oct. 22, 2024 (GLOBE NEWSWIRE) — QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the third quarter of 2024 of $3,338,000, or $0.91 per share on a diluted basis. This compares to net income of $2,344,000, or $0.65 per share on a diluted basis, for the same period in 2023. For the nine months ended September 30, 2024, QNB reported net income of $8,397,000, or $2.29 per share on a diluted basis. This compares to net income of $8,349,000, or $2.32 per share on a diluted basis, reported for the same period in 2023.

For the third quarter of 2024, the annualized rate of return on average assets and average shareholders’ equity was 0.72% and 8.13%, respectively, compared with 0.52% and 5.88%, respectively, for the third quarter 2023.

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended September 30, 2024, in comparison with the same period in 2023, due primarily to improvement in the interest margin causing a $1,182,000 increase in net interest income, decreased provision for credit losses on loans and unfunded commitments of $300,000 and a decrease in non-interest expense of $37,000; this was partly offset by a decrease in non-interest income of $96,000. The change in contribution from QNB Corp. for the quarter ended September 30, 2024, compared with the same period in 2023, is primarily due to more gains on sales from the equities portfolio and less unrealized losses on the equity portfolio; partly offset by interest expense on subordinated debt held at the holding company.

The following table presents disaggregated net income (loss):

	Three months ended,								Nine months ended,
	9/30/2024			9/30/2023		Variance			9/30/2024			9/30/2023			Variance
QNB Bank	$	3,394,000		$	2,334,000	$	1,060,000		$	8,466,000		$	8,568,000		$	(102,000	)
QNB Corp		(56,000	)		10,000		(66,000	)		(69,000	)		(219,000	)		150,000
Consolidated net income	$	3,338,000		$	2,344,000	$	994,000		$	8,397,000		$	8,349,000		$	48,000

Total assets as of September 30, 2024 were $1,841,563,000 compared with $1,706,318,000 at December 31, 2023. Total available-for-sale debt securities increased $19,855,000, or 7.9%, to $510,036,000, primarily due to purchases of higher-yielding securities partly offset be the sales of lower-yielding securities and payments. Loans receivable increased $77,828,000, or 7.1%, to $1,171,361,000. Total deposits increased $137,571,000, or 9.2%, to $1,626,284,000. Short-term borrowing declined $71,176,000, or 75.6%. During the third quarter of 2024, the QNB Corp. issued $40,000,000 of subordinated debt; the carrying value net of deferred costs was $39,030,000 at September 30, 2024.

“We continue to experience strong growth in customer loan and deposit balances, which has led to improvement in our net interest income and margin. Growth combined with solid liquidity and good asset quality, has our franchise positioned for positive momentum,” stated David W. Freeman, President and Chief Executive Officer. Freeman continued, “Our successful Sub-Debt issuance has further strengthened our Capital position and will enable continued growth in the future. I am optimistic that we are well positioned to capitalize on the foundation we have built.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended September 30, 2024 totaled $11,127,000, an increase of $914,000, from the same period in 2023. Net interest margin was 2.48% for the third quarter of 2024 and 2.38% for the same period in 2023. Net interest margin was 2.45% for the nine months ended September 30, 2024, compared with 2.40% for the same period in 2023.

The yield on earning assets was 4.86% for the third quarter 2024, compared with 4.28% in the third quarter of 2023; an increase of 58 basis points. For the nine-month period ended September 30, 2024, the yield on earning assets was 4.71%, compared with 3.97% for the same period in 2023. The cost of interest-bearing liabilities was 2.90% for the quarter ended September 30, 2024, compared with 2.35% for the same period in 2023, an increase of 55 basis points. For the nine-month period ended September 30, 2024, the cost of interest-bearing liabilities was 2.77% compared with 1.96% for the same period in 2023.

Proceeds from the growth in average deposits and proceeds from the issuance of subordinated debt and the sale and payments received on investment securities over the past year were invested in loans and other interest earning assets, and used to pay down short-term borrowings. Loan growth was primarily in commercial real estate, which comprised 45% of average earning assets in the third quarter of 2024 compared with 42% for the same period in 2023, and the increases in both rates and volume in commercial real estate loans majorly contributed to the 47 basis-point increase in the yield on loans. The decline in the available-for-sale portfolio was primarily in mortgage-backed securities, which comprised 19% of average earnings assets in the third quarter of 2024 compared with 23% for the same period in 2023. The 40-basis point increase in rate on investments was primarily due to the impact of the interest rate swaps entered into at the end of the second quarter of 2023, contributing to the increase in net interest margin. The 55 basis-point increase in the rate paid on deposits and the issuance of subordinated debt were the primary contributors to the increase in the cost of funds of 55 basis points.

Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses

QNB recorded $154,000 in provision for credit losses on loans in the third quarter of 2024 compared to $452,000 in provision in the third quarter of 2023. QNB’s allowance for credit losses on loans of $8,987,000 represents 0.77% of loans receivable at September 30, 2024, compared to $8,852,000, or 0.81% of loans receivable at December 31, 2023. Net loan charge-offs were $25,000 for the quarter ended September 30, 2024, compared with $275,000 for the same period in 2023. Annualized net loan charge-offs for the quarter ended September 30, 2024 were 0.01% and 0.10% for the quarter ended September 30, 2023, of average loans receivable, respectively. Net loan charge-offs were $58,000 for the nine months ended September 30, 2024, compared with recoveries of $219,000 for the same period in 2023 were primarily due to two large commercial customers. Annualized net loan charge-offs for the nine months ended September 30, 2024 were 0.01% compared to annualized net recoveries of 0.03% for the same period in 2023, of average loans receivable, respectively.

Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were $1,696,000, or 0.14% of loans receivable at September 30, 2024, compared with $1,940,000, or 0.18% of loans receivable at December 31, 2023. In cases where there is a collateral shortfall on non-accrual loans, specific reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At September 30, 2024, $1,021,000, or approximately 60% of the loans classified as non-accrual, are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $26,883,000 at September 30, 2024, compared with $11,747,000 at December 31, 2023; these were comprised primarily of commercial real estate loans.

Non-Interest Income

Total non-interest income was $1,967,000 for the third quarter of 2024 compared with $1,755,000 for the same period in 2023. There was a net realized gain of $224,000 on the sale of investments for the quarter ended September 30, 2024 compared to a net gain of $131,000 on the sales of securities in the same period in 2023. Unrealized net gain on investment equity securities was $143,000 for the quarter ended September 30, 2024 compared to a net loss of $138,000 for the same period in 2023. During the third quarter of 2024 the Bank sold lower yielding securities to better position its net interest margin.

Fees for service to customers increased $48,000 for the quarter ended September 30, 2024, as overdraft fees decreased $16,000 and other deposit-related fees increased $32,000. Retail brokerage and advisory income decreased $80,000 to $139,000 for the same period, due to a decrease in customer balances following employee turnover. Other non-interest income decreased $151,000 for the same period due to a sales tax refund of $115,000 received in 2023 and a decline in merchant fee income of $16,000 due to value.

For the nine months ended September 30, 2024, non-interest income was $5,268,000 an increase of $714,000 compared to the same period in 2023, primarily due to the change in fair value of the equities portfolio of $1,783,000. QNB completed the exchange offer to convert the Bank’s Visa B-1 shares to B-2 and C shares in the second quarter of 2024; the fair value of the Visa C shares was a gain of $1,419,000 at September 30, 2024. Realized loss on sale of securities was $495,000, a decline of $680,000 for the nine months ended September 30, 2024, compared with the same period in 2023. Net gain on sale of loans increased $27,000 when comparing the nine months ended September 30, 2024 with the same period in 2023. Increases in non-interest income for the nine months ended September 30, 2024 compared to the same period in 2023 comprise: fees for services to customers which increased $79,000. Decreases in non-interest income comprised: ATM and debit card fees, retail brokerage and advisory income, and other which decreased $16,000, $297,000 and $182,000, respectively. Other non-interest income decreased the $182,000 due primarily to a sales tax refund of $115,000 received in 2023, losses on disposals of furniture and equipment, mortgage servicing fees and letter of credit fees.

Non-Interest Expense

Total non-interest expense was $8,636,000 for the third quarter of 2024 compared with $8,671,000 for the same period in 2023. Salaries and benefits expense decreased $321,000, or 6.5%, to $4,650,000 when comparing the two quarters. Salary expense and related payroll taxes increased $77,000, or 1.9%, to $4,209,000 during the third quarter of 2024 compared to the same period in 2023. Benefits expense decreased $400,000, or 81.1%, when comparing the two periods primarily due to a reduction in medical costs and stop-loss reimbursements.

Net occupancy and furniture and equipment expense increased $27,000, or 1.8%, to $1,531,000 for the third quarter of 2024 primarily due to software maintenance costs partly offset by a reduction in repairs and maintenance. Other non-interest expense increased $259,000, or 11.8%, when comparing third quarter of 2024 with the same period in 2023 due to an increase in Bank shares tax of $89,000, due to the timing of tax credits received, an increase of $50,000 in debit card expense, an increase in FDIC insurance of $67,000, an increase in third-party services of $69,000, and an increase in write-offs due to fraud on customer accounts of $44,000, partly offset by decreases in director fees of $16,000, a decrease in marketing expense of $19,000 and a reduction loan-related costs of $23,000.

For the nine months ended September 30, 2024, non-interest expense was $26,403,000, an increase of $1,040,000, or 4.1%, compared to the same period in 2023.

Income Taxes

Provision for income taxes increased $467,000 to $961,000 in the third quarter of 2024 due to increased pre-tax income, compared with the same period in 2023. The effective tax rates for the quarter ended September 30, 2024 was 22.4% compared with 17.4% for the same period in 2023. The effective tax rates for the nine months ended September 30, 2024 was 20.5% compared with 18.9% for the same period in 2023.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Lehigh and Montgomery Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at QNBBank.com.

Forward Looking Statement

This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including “Item lA. Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands)
Balance Sheet (Period End)	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23
Assets	$	1,841,563		$	1,761,487		$	1,716,081		$	1,706,318		$	1,684,392
Cash and cash equivalents		104,232			76,909			50,963			62,657			55,141
Investment securities
Debt securities, AFS		510,036			460,418			481,596			490,181			505,390
Equity securities		2,760			7,233			6,217			5,910			4,765
Loans held-for-sale		294			786			—			549			446
Loans receivable		1,171,361			1,162,310			1,122,616			1,093,533			1,060,450
Allowance for loan losses		(8,987	)		(8,858	)		(8,738	)		(8,852	)		(8,542	)
Net loans		1,162,374			1,153,452			1,113,878			1,084,681			1,051,908
Deposits		1,626,284			1,572,839			1,536,188			1,488,713			1,483,333
Demand, non-interest bearing		190,240			190,333			188,260			185,098			192,226
Interest-bearing demand, money market and savings		1,055,409			1,003,813			990,451			988,634			1,000,921
Time		380,635			378,693			357,477			314,981			290,186
Short-term borrowings		22,918			49,066			55,088			94,094			96,703
Long-term debt		30,000			30,000			20,000			20,000			20,000
Subordinated debt		39,030			—			—			—			—
Shareholders’ equity		105,340			96,885			93,686			90,824			74,081

Asset Quality Data (Period End)
Non-accrual loans	$	1,696		$	2,078		$	2,001		$	1,940		$	1,893
Loans past due 90 days or more and still accruing		—			—			—			—			—
Non-performing loans		1,696			2,078			2,001			1,940			1,893
Other real estate owned and repossessed assets		—			—			—			—			—
Non-performing assets	$	1,696		$	2,078		$	2,001		$	1,940		$	1,893

Allowance for credit losses on loans	$	8,987		$	8,858		$	8,738		$	8,852		$	8,542

Non-performing loans / Loans excluding held-for-sale		0.14	%		0.18	%		0.18	%		0.18	%		0.18	%
Non-performing assets / Assets		0.09	%		0.12	%		0.12	%		0.11	%		0.11	%
Allowance for credit losses on loans / Loans excluding held-for-sale		0.77	%		0.76	%		0.78	%		0.81	%		0.81	%

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands, except per share data)	Three months ended,															Nine months ended,
For the period:	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23			9/30/24			9/30/23
Interest income	$	21,945		$	20,345		$	19,569		$	19,257		$	18,497		$	61,859		$	49,825
Interest expense		10,818			9,753			9,401			9,065			8,284			29,972			19,862
Net interest income		11,127			10,592			10,168			10,192			10,213			31,887			29,963
Provision for credit losses		159			114			(86	)		293			459			187			(1,137	)
Net interest income after provision for credit losses		10,968			10,478			10,254			9,899			9,754			31,700			31,100
Non-interest income:
Fees for services to customers		469			427			420			414			421			1,316			1,237
ATM and debit card		691			705			636			687			685			2,032			2,048
Retail brokerage and advisory income		139			126			93			207			219			358			655
Net realized (loss) gain on investment securities		224			(1,096	)		377			(2,262	)		131			(495	)		185
Unrealized gain (loss) on equity securities		143			1,016			(30	)		904			(138	)		1,129			(654	)
Net gain on sale of loans		19			(2	)		15			11			4			32			5
Other		282			289			325			322			433			896			1,078
Total non-interest income		1,967			1,465			1,836			283			1,755			5,268			4,554
Non-interest expense:
Salaries and employee benefits		4,650			5,038			4,974			4,717			4,971			14,662			14,309
Net occupancy and furniture and equipment		1,531			1,481			1,515			1,477			1,504			4,527			4,348
Other		2,455			2,415			2,344			2,552			2,196			7,214			6,706
Total non-interest expense		8,636			8,934			8,833			8,746			8,671			26,403			25,363
Income before income taxes		4,299			3,009			3,257			1,436			2,838			10,565			10,291
Provision for income taxes		961			544			663			302			494			2,168			1,942
Net income	$	3,338		$	2,465		$	2,594		$	1,134		$	2,344		$	8,397		$	8,349

Share and Per Share Data:
Net income – basic	$	0.91		$	0.67		$	0.71		$	0.31		$	0.65		$	2.29		$	2.32
Net income – diluted	$	0.91		$	0.67		$	0.71		$	0.31		$	0.65		$	2.29		$	2.32
Book value	$	28.57		$	26.34		$	25.57		$	24.86		$	20.35		$	28.57		$	20.35
Cash dividends	$	0.37		$	0.37		$	0.37		$	0.37		$	0.37		$	1.11		$	1.11
Average common shares outstanding -basic		3,679,799			3,665,695			3,655,176			3,642,096			3,613,230			3,666,937			3,600,137
Average common shares outstanding -diluted		3,682,773			3,665,695			3,655,176			3,642,096			3,613,230			3,666,937			3,600,137
Selected Ratios:
Return on average assets		0.72	%		0.55	%		0.59	%		0.25	%		0.52	%		0.62	%		0.64	%
Return on average shareholders’ equity		8.13	%		6.14	%		6.53	%		2.83	%		5.88	%		6.95	%		7.13	%
Net interest margin (tax equivalent)		2.48	%		2.46	%		2.39	%		2.36	%		2.38	%		2.45	%		2.40	%
Efficiency ratio (tax equivalent)		65.28	%		73.26	%		72.73	%		82.38	%		71.59	%		70.28	%		72.55	%
Average shareholders’ equity to total average assets		8.80	%		8.97	%		8.98	%		8.93	%		8.91	%		8.92	%		9.01	%
Net loan charge-offs (recoveries)	$	25		$	12		$	21		$	(19	)	$	275		$	58		$	(219	)
Net loan charge-offs (recoveries) – annualized / Average loans excluding held-for-sale		0.01	%		0.00	%		0.01	%		-0.01	%		0.10	%		0.01	%		-0.03	%
Balance Sheet (Average)
Assets	$	1,856,034		$	1,798,040		$	1,778,585		$	1,779,627		$	1,773,138		$	1,811,051		$	1,737,417
Investment securities (AFS & Equities)		552,323			569,135			578,615			604,292			624,423			566,638			636,498
Loans receivable		1,158,731			1,139,874			1,108,836			1,072,616			1,039,170			1,135,898			1,029,042
Deposits		1,600,925			1,542,661			1,497,692			1,490,244			1,488,632			1,547,290			1,443,816
Shareholders’ equity		163,274			161,340			159,739			158,987			158,063			161,458			156,499

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

	Three Months Ended
	September 30, 2024								September 30, 2023
	Average			Average					Average			Average
	Balance			Rate			Interest		Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	12,811			4.94	%	$	159	$	7,111			5.17	%	$	92
U.S. Government agencies		75,956			1.18			224		101,947			1.11			283
State and municipal		105,674			3.74			989		109,157			3.30			901
Mortgage-backed and CMOs		345,119			2.84			2,453		394,607			2.53			2,500
Corporate debt securities and mutual funds		8,804			5.97			131		6,648			4.40			73
Equities		3,959			4.61			46		4,953			4.70			59
Total investment securities		552,323			2.90			4,002		624,423			2.50			3,908
Loans:
Commercial real estate		819,091			5.60			11,525		722,833			5.10			9,288
Residential real estate		110,760			4.21			1,165		107,332			3.81			1,022
Home equity loans		66,239			6.84			1,138		57,694			6.65			967
Commercial and industrial		140,980			7.61			2,696		128,601			7.23			2,343
Consumer loans		3,613			7.75			70		3,823			7.53			73
Tax-exempt loans		18,305			3.88			179		19,630			3.59			178
Total loans, net of unearned income*		1,158,988			5.76			16,773		1,039,913			5.29			13,871
Other earning assets		95,780			5.43			1,307		62,420			5.48			862
Total earning assets		1,807,091			4.86			22,082		1,726,756			4.28			18,641
Cash and due from banks		15,540								15,679
Allowance for loan losses		(8,860	)							(8,396	)
Other assets		42,263								39,099
Total assets	$	1,856,034							$	1,773,138

Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-bearing demand	$	356,763			1.00	%		898	$	319,335			0.74	%		600
Municipals		154,619			4.69			1,823		157,391			4.63			1,837
Money market		238,494			3.56			2,132		201,277			3.01			1,527
Savings		278,247			1.28			896		325,567			1.27			1,038
Time < $100		178,228			4.12			1,846		128,884			2.92			947
Time $100 through $250		152,416			4.64			1,777		106,920			3.69			996
Time > $250		49,506			4.61			573		43,856			3.41			377
Total interest-bearing deposits		1,408,273			2.81			9,945		1,283,230			2.26			7,322
Short-term borrowings		34,078			2.18			186		95,568			3.07			740
Long-term debt		30,000			4.75			364		20,000			4.36			222
Subordinated debt		13,716			9.42			323		—			—			—
Total interest-bearing liabilities		1,486,067			2.90			10,818		1,398,798			2.35			8,284
Non-interest-bearing deposits		192,652								205,402
Other liabilities		14,041								10,875
Shareholders’ equity		163,274								158,063
Total liabilities and
shareholders’ equity	$	1,856,034							$	1,773,138
Net interest rate spread					1.96	%							1.93	%
Margin/net interest income					2.48	%	$	11,264					2.38	%	$	10,357
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

	Nine Months Ended
	September 30, 2024								September 30, 2023
	Average			Average					Average			Average
	Balance			Rate			Interest		Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	8,820			5.10	%	$	337	$	3,618			4.97	%	$	134
U.S. Government agencies		81,800			1.17			718		101,945			1.11			849
State and municipal		107,237			3.56			2,860		109,877			2.64			2,173
Mortgage-backed and CMOs		355,878			2.72			7,262		405,979			1.96			5,971
Corporate debt securities and mutual funds		7,416			5.78			321		6,637			4.41			219
Equities		5,487			3.87			159		8,442			4.07			257
Total investment securities		566,638			2.74			11,657		636,498			2.01			9,603
Loans:
Commercial real estate		798,714			5.47			32,701		700,375			4.79			25,091
Residential real estate		109,463			4.07			3,337		106,817			3.67			2,943
Home equity loans		64,700			6.83			3,307		57,317			6.44			2,762
Commercial and industrial		141,148			7.57			7,997		141,176			7.55			7,977
Consumer loans		3,679			7.78			214		3,942			7.15			211
Tax-exempt loans		18,410			3.86			532		19,984			3.53			527
Total loans, net of unearned income*		1,136,114			5.65			48,088		1,029,611			5.13			39,511
Other earning assets		61,999			5.45			2,530		27,195			5.67			1,153
Total earning assets		1,764,751			4.71			62,275		1,693,304			3.97			50,267
Cash and due from banks		13,880								14,046
Allowance for loan losses		(8,897	)							(8,871	)
Other assets		41,317								38,938
Total assets	$	1,811,051							$	1,737,417

Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-bearing demand	$	337,632			0.89	%		2,243	$	314,012			0.52	%		1,227
Municipals		139,810			4.76			4,987		128,270			4.34			4,163
Money market		232,140			3.57			6,196		169,308			2.30			2,913
Savings		288,885			1.28			2,769		363,496			1.18			3,208
Time < $100		168,894			3.98			5,027		113,951			2.30			1,960
Time $100 through $250		141,156			4.53			4,790		104,697			3.42			2,676
Time > $250		50,855			4.49			1,709		36,590			2.80			767
Total interest-bearing deposits		1,359,372			2.72			27,721		1,230,324			1.84			16,914
Short-term borrowings		57,880			2.33			1,010		112,724			2.99			2,518
Long-term debt		26,058			4.63			918		14,267			3.98			430
Subordinated debt		4,605			9.35			323		—			—			—
Total interest-bearing liabilities		1,447,915			2.77			29,972		1,357,315			1.96			19,862
Non-interest-bearing deposits		187,918								213,492
Other liabilities		13,760								10,111
Shareholders’ equity		161,458								156,499
Total liabilities and
shareholders’ equity	$	1,811,051							$	1,737,417
Net interest rate spread					1.94	%							2.01	%
Margin/net interest income					2.45	%	$	32,303					2.40	%	$	30,405
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

MIL-OSI: HEROWORKS to Participate in TTA 2024, Initiating Comprehensive Expansion into the Singapore Market

Source: GlobeNewswire (MIL-OSI)

SEOUL, KOREA, Oct. 21, 2024 (GLOBE NEWSWIRE) — South Korean hospitality tech company HEROWORKS is set to enter the Singapore market by introducing its hotel revenue management solution, ‘DatAmenity.’

– HEROWORKS to Participate in ‘TTA 2024’, the Largest Tourism & Tech Expo in the Asia-Pacific Region

– HEROWORKS to Supply its Hotel Revenue Management Solution ‘DatAmenity’ to the Singapore Market

– Seeking Global Tourism Partners to Target the Asian Market with Localized Systems

HEROWORKS has been selected as a participating company for the Travel & Tech Expo organized by the Singapore Tourism Enterprises Support Center (KTSC). From the 23rd to the 25th of this month, HEROWORKS will attend ‘Travel Tech Asia (TTA) 2024’ and ‘2024 ITB-Asia’ at the Marina Bay Sands Convention Centre in Singapore, seeking new business opportunities targeting the Asian hospitality tech market.

With the aim of providing optimized solutions for the Singapore market, HEROWORKS will engage in networking and one-on-one investment meetings with key stakeholders, including venture capitalists, angel investors, and other investors. Through business consultations with these stakeholders, HEROWORKS plans to identify the specific needs of Singapore’s tourism and hospitality industries and to localize the ‘DatAmenity’ technology by partnering with companies that can create synergistic effects.

DatAmenity is the first service in Korea to develop and implement a Revenue Management System (RMS) for hotels, and currently holds Korea’s number one market share. The solution collects and analyzes room data registered with Online Travel Agencies (OTAs), including pricing information and sales status, for all types of accommodations, such as hotels, motels, resorts, and pensions, assisting in optimally setting room sale prices.

Unlike traditional hotel solutions, the DatAmenity solution is offered as a cloud-based SaaS (Software as a Service) model, allowing users to easily access and utilize the system anytime, anywhere. It currently serves approximately 500 accommodation facilities and has received significant positive feedback.

Notably, DatAmenity has been recognized for its differentiated technological prowess in ‘Comparing Room Sales by Room Type.’ HEROWORKS identified the challenge that, despite having identical room configurations, differing room nomenclatures across hotels make accurate price comparisons difficult. In response, HEROWORKS developed a system allowing users (client companies) to set competitive hotels’ room classifications by their hotel’s room standards. This system, a proprietary technology exclusive to DatAmenity, has been proven innovative by acquiring a technology patent.

HEROWORKS CEO Lee Chang-ju stated, “The demand for data-driven revenue management is increasing in Singapore’s hospitality industry.” He added, “Through participating in the TTA and ITB-Asia expos, we expect to accelerate our penetration into the Asian market by establishing partnerships with Singapore’s tourism and tech companies.”

Meanwhile, HEROWORKS is a hospitality technology company specializing in developing automated systems for hotel revenue management. To address the gaps that existing hotel operational systems, such as Property Management Systems (PMS) and Channel Management Systems (CMS), cannot resolve, HEROWORKS has developed and operates a distinctive ‘Hotel Revenue Management Solution.’ Notably, the solution provides features that establish ‘optimal room sale prices’ and enable comprehensive viewing and management of ‘hotel customer reviews,’ contributing to enhanced hotel revenues.

Social Links

YouTube: https://youtu.be/e1kOthMDeUo?feature=shared

Blog: https://blog.naver.com/datamenity

Media Contact

Brand: HEROWORKS

Contact: Planning & Marketing Team

Email: dyeong@heroworks.co.kr

Website: https://www.heroworks.co.kr

MIL-OSI USA News: A Proclamation on National School Lunch Week, 2024

Source: The White House

America’s children deserve every opportunity to live fulfilling and healthy lives, and nutritious meals are key components in building those lives. During National School Lunch Week, we reaffirm that the health and well-being of our Nation’s children are a national priority. We recommit to doing everything we can to end child hunger. And we celebrate school nutrition professionals, who do the critical work of planning, preparing, and serving nutritious school meals to more than 30 million students each day.

Healthy school lunches benefit our Nation’s students and their families. Fueled by a good lunch, students can better focus in the classroom and be set up for success throughout the rest of their day. Free and reduced-price school meals provide families with some breathing room. And for families that live in areas where there are no grocery stores with healthy food options nearby, school meals can be a lifeline — offering children reliable, nutritious meals.

My Administration is committed to putting a healthy school lunch within reach of all our Nation’s children, no matter their family’s income. That is why we are giving more schools the option to make free school meals available to every student, and we published a final rule updating nutrition standards for school meals to improve children’s health. For the first time since 1975, we modernized the Thrifty Food Plan, making a healthy diet more affordable for the millions of families with Supplemental Nutrition Assistance Program benefits. These actions are a part of our national strategy to end hunger and reduce diet-related diseases by 2030. That plan includes the goal of expanding access to healthy, free school meals to nine million more kids — working toward a future where every kid has access to one. We also hosted the first White House Conference on Hunger, Nutrition, and Health in over 50 years. Since then, we have galvanized over $10 billion in external commitments dedicated to ending hunger and reducing diet-related diseases in children and families across the country. Furthermore, we are giving schools the resources they need to purchase food from local farmers and ranchers and cook meals from scratch — giving kids healthier options and powering our rural economy.

My Administration is taking steps to ensure our Nation’s children and families do not go hungry and can afford healthy food. This year my Administration launched SUN Bucks — also referred to as Summer Electronic Benefits Transfer — to provide families with money to buy groceries when school is out, reaching an estimated 21 million children. My American Rescue Plan expanded the Child Tax Credit, slashing child poverty by nearly 50 percent and helping keep food on the table for millions of families during the pandemic. I continue to call on the Congress to restore the enhanced Child Tax Credit to ensure families have the money they need to feed and care for their kids.

During National School Lunch Week, we recognize how important school lunches are to kids and families alike and recommit to expanding access to healthy, free school meals to support the health of the next generation. And we thank all the school staff, school nutrition professionals, educators, and school leaders, whose tireless work nourishes the future leaders of our Nation.

NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 13 through October 19, 2024, as National School Lunch Week. I call upon all Americans to recognize and commemorate all those who operate the National School Lunch Program with activities that raise awareness of the steadfast efforts in support of the health and well-being of our Nation’s children.

IN WITNESS WHEREOF, I have hereunto set my hand this
eleventh day of October, in the year of our Lord two thousand twenty-four, and of the Independence of the United States of America the two hundred and forty-ninth.

JOSEPH R. BIDEN JR.

MIL-OSI USA News: FACT SHEET: Biden-⁠ Harris Administration Continues Recovery Efforts in North Carolina Following Hurricane Helene

Source: The White House

Following Hurricane Helene’s devastating impacts across the Southeast and Appalachia, the Biden-Harris Administration continues its robust Federal efforts to help communities recover and rebuild. The storm heavily impacted North Carolina, where the Administration continues to surge resources and assist families, business owners, farmers, and other impacted communities receive the support and assistance they need and deserve.

Federal disaster assistance for Hurricane Helene survivors has surpassed $474 million – including more than $86 million in housing and other types of assistance for survivors in North Carolina. Survivors can register for assistance at one of three Disaster Recovery Centers in Caldwell, McDowell, and Buncombe Counties, or on disasterassistance.gov, by calling 1-800-621-3362, or via the FEMA app.

The Department of Defense continues to support search-and-rescue operations, route clearance, and commodities distribution across western North Carolina with 1,500 active-duty troops. The Department of Defense is also employing additional capabilities to assist with increasing situational awareness across the remote terrain of Western North Carolina. The Army Corps of Engineers continues missions supporting debris removal, temporary emergency power installation, infrastructure and water and wastewater assessments, and technical assistance. Over 2,000 North Carolina National Guard personnel along with over 200 Guardsmen from 15 States are conducting response operations in western North Carolina.

As response efforts continue in North Carolina, more than 1,250 FEMA staff remain on the ground, with more arriving daily. Nearly 400 Urban Search and Rescue personnel remain in the field helping people. These teams have rescued or supported over 3,200 survivors to date.

Power has been restored to more than approximately 96 percent of customers, as a result of 10,000 utility personnel working around the clock. Cellular restoration also continues to improve, with more than 93 percent of cellular sites in service. FEMA is boosting response coordination by providing 40 Starlink units to ensure first responders can communicate with each other.

Commodity distribution, mass feeding, and hydration operations continue in areas of western North Carolina. FEMA continues to send commodity shipments and voluntary organizations are supporting feeding operations with bulk food and water deliveries coming via truck and aircraft. Mobile feeding operations are reaching survivors in heavily impacted areas, including three mass feeding sites in Buncombe, McDowell and Watauga counties. The Salvation Army has 20 mobile feeding units supporting this massive operation and has provided emotional and spiritual care to survivors. To date, the American Red Cross is engaging in targeted distribution of emergency supplies in low-income communities with high levels of minor or affected residential damage.

Additional recovery efforts in North Carolina include:

Supporting Infrastructure Recovery

As part of the robust, whole-of-government response to Hurricane Helene, the U.S. Department of Transportation is supporting response and recovery efforts in impacted communities in North Carolina. DOT personnel are on the ground in multiple locations of the state.

On October 5, the Department of Transportation’s Federal Highway Administration (FHWA) announced $100 million in Quick Release Emergency Relief funding to support North Carolina. The funding helps pay for the costs of immediate emergency work resulting from Hurricane Helene flood damage. Additional funding will flow to affected communities from the Emergency Relief program.

FHWA worked closely with North Carolina and other federal agencies to assess infrastructure damage, including supporting hundreds of bridge inspections and other critical infrastructure assessments across the Southeast. On October 8, FHWA Acting Administrator Kristin White visited the region with Governor Roy Cooper, North Carolina Department of Transportation Secretary Joey Hopkins and other federal, state and local officials and got a first-hand look at impacts from the storm and recovery efforts.

The Federal Aviation Administration (FAA) continues to work with partners in affected parts of North Carolina and Tennessee, as the national airspace steadily returned to normal operations.

The FAA Air Traffic Organization Technical Operations Team is on-site and leading communications restoration efforts at air traffic facilities. FAA also supported the North Carolina Air National Guard by providing advisory services at Rutherford County Airport and Avery County Airport.

The FAA worked with state and local governments, critical infrastructure owners and operators, and first responders to enable drones to support response and recovery. The FAA granted permission to allow Wing to temporarily conduct beyond visual line of sight drone package deliveries for Walmart’s pharmacy in western North Carolina, delivering essential items including prescription medicine, medical supplies, and medical equipment to hard-to-reach locations.

Additionally, President Biden’s approval of a Presidential Emergency Declaration for North Carolina affords the state a period of emergency regulatory relief from Federal Motor Carrier Safety regulations, including flexibility around driving time for property- and passenger-carrying vehicles. This allows truck drivers to get essential supplies to affected areas in North Carolina. It may also provide opportunities for motorcoach buses to deliver relief teams to response locations and allow for the transport and evacuation of residents.

On October 10, Environmental Protection Agency (EPA) Administrator Michael Regan joined Governor Cooper, Senator Tillis, Congressman Edwards and local officials to assess federal and state recovery efforts in response to Hurricane Helene. EPA and its state partners have made significant progress bringing drinking water and wastewater systems back online, including restoring service to more than 75 drinking water systems that serve approximately 260,000 people in the Asheville area. EPA is also providing technical assistance and drinking water testing to systems and private drinking water well owners across the Asheville area through their Mobile Drinking Water lab – giving residents clear data and confidence that their water is safe to drink. The lab is capable of testing 100 samples per day. Water utilities and private well owners must request sampling services through their local health departments. EPA will remain on the ground in North Carolina helping area residents as long as their assistance is needed.

The Department of Energy’s Energy Response Organization remains activated to respond to storm impacts, and responders remain deployed to FEMA regional response coordination centers. Via the Electricity Sub-Sector Coordinating Council and Oil and Natural Gas Sub-Sector Coordinating Council, the Department of Energy has been coordinating continuously with energy sector partners on the ongoing Hurricane Helene response. As noted above, there are 10,000 line workers supporting power restoration efforts.

The National Oceanic and Atmospheric Administration continues to support post-disaster imagery flights following Hurricane Helene, already totaling over 68 flight hours during 20 flights, including over western North Carolina. This imagery not only supports FEMA and the broader response community, but the public at large.

Providing Financial Flexibilities to Homeowners and Taxpayers

The U.S. Department of Housing and Urban Development (HUD) is providing a 90-day moratorium on foreclosures of mortgages insured by the Federal Housing Administration (FHA) as well as foreclosures of mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee program. Additionally, affected homeowners that have mortgages through Government-Sponsored Enterprises – including Fannie Mae and Freddie Mac – and the FHA are eligible to suspend their mortgage payments through a forbearance plan for up to 12 months.

HUD announced $3 million for the State of North Carolina to support people experiencing homelessness in communities impacted by Hurricane Helene. Funding from the Rapid Unsheltered Survivor Housing program will help residents and families who are experiencing or at risk of homelessness and have needs that are not otherwise served or fully met by existing Federal disaster relief programs.

This summer, HUD launched a new streamlined process for requesting additional flexibility on existing grants after a disaster is declared. Recipients of annual HUD funding – including in North Carolina – may request waivers to unlock and accelerate the use of their funding for disaster response and recovery. With the updated waiver process, HUD is proactively issuing maximum flexibility to communities impacted by disasters. These flexibilities will expedite the recovery process, reduce administrative burden, and allow impacted jurisdictions to quickly tailor programs and activities to address the post disaster needs of their communities. The Disaster Assistance and Recovery Team within HUD’s Office of Housing Counseling continues to conduct focused meetings with housing counseling agencies in each state impacted by these disasters to discuss their unique response and recovery challenges and identify resources available to assist.

The Internal Revenue Service announced disaster tax relief for all individuals and businesses affected by Hurricane Helene in North Carolina. North Carolina taxpayers now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments.

Protecting Public Health

The U.S. Department of Health and Human Services (HHS) declared a Public Health Emergency for North Carolina to address the health impacts of Hurricane Helene. HHS’s Administration for Strategic Preparedness and Response (ASPR) continues to provide medical support for Hurricane Helene, predominantly onsite in North Carolina. These ASPR personnel are deployed to support Hurricane Helene response operations, which include four Disaster Medical Assistance Teams and personnel from a Disaster Mortuary Operational Response Team (DMORT) in North Carolina. ASPR Health and Medical Task Forces and ASPR Disaster Medical Assistance Teams from the National Disaster Medical System are providing 24-hour surge support to three hospitals: Mission Hospital in Asheville, Blue Ridge Regional Hospital in Spruce Pine, and Caldwell Memorial in Lenoir. To date, ASPR teams have seen nearly 1000 patients. ASPR will continue to work with federal, state, and local partners to prioritize medical assistance to other areas affected by Hurricane Helene as required and requested.

Supporting Workers and Worker Safety

Working alongside the Department of Labor, the States of North Carolina has announced that eligible workers can receive federal Disaster Unemployment Assistance to compensate for income lost directly resulting from Hurricane Helene. And, through the Department of Labor’s innovative partnership with the U.S. Postal Service, displaced workers in North Carolina can now go to the post office in any other state and verify their ID for purposes of getting their benefits quickly.

Supporting Farmers and Agriculture

The U.S. Department of Agriculture (USDA) has put contingency plans and program flexibilities into place to ensure farmers, foresters and communities are able to get the support they need, such as by extending program signup opportunities, expediting crop insurance payments, and using waivers and emergency procedures to expedite recovery efforts on working lands. USDA’s Food and Nutrition Service has issued flexibilities and waivers for North Carolina to ensure that food and nutritional assistance reaches those in need as soon as possible. In North Carolina, waivers have been issued to increase access to WIC products, replace benefits through Summer EBT, allow the purchase of hot foods through SNAP, and more.

Additionally, USDA is currently coordinating over 200 staff on the ground in North Carolina, including saw support teams and emergency road clearance teams, to help clear trees and debris, including in Waterville, Marion, Newton, and Weaverville.

Supporting Students and Student Loan Borrowers

The Department of Education has offered technical assistance to states and local educational agencies to support recovery efforts and shared critical resources, including those developed by other federal agencies and organizations, to support restoring the teaching and learning environment.

The Department’s office of Federal Student Aid (FSA) has flexibilities that are automatically available to affected institutions of higher education to help their continued management of the federal student aid programs. These flexibilities help schools if they need to adjust their academic calendars, such as due to unexpected closures, and also help students who may need to take a leave of absence. The flexibilities also help students avoid reductions in their federal aid due to any state or federal disaster assistance provided. FSA will also work with affected institutions that need help on other areas, such as paying credit balances. FSA has communicated with schools located in the areas impacted by Hurricane Helene. Those communications included existing Department guidance about how natural disasters impact schools and their administration of financial aid, resources, and links to FEMA disaster aid information. FSA’s communications also included a way for schools to share more information about the disaster impact on their campus and submit questions about administrative relief and flexibilities.

The Department is ensuring affected borrowers in areas impacted by the hurricanes can focus on their critical needs without needing to worry about missing their student loan payments. Direct Loan borrowers and federally-serviced FFEL borrowers in the affected area who miss their payments will be automatically placed into a natural disaster forbearance. During forbearance, payments are temporarily postponed or reduced, and interest is still charged. Thanks to regulations issued by the Biden-Harris Administration, months in this forbearance will count toward PSLF and IDR forgiveness. Direct Loan and federally serviced FEEL borrowers are not required to take an action but have the option to call their servicer if they wish to enroll in the forbearance proactively. Perkins loan borrowers should contact their loan holder to request natural disaster forbearance. 

Continuing to Survey Data

The Department of the Interior’s U.S. Geological Survey (USGS) continues working to measure river levels and flow, and repair streamgages that transmit critical data. USGS crews continue working to determine the extent of flooding by surveying for high-water marks. These flood-peak data and high-water marks are used to determine flood frequency and are critical in the design of infrastructure and in determining flood plain boundaries. USGS stood up a landslide response team that now includes 32 USGS scientists, 19 of which ware mapping landslides, to provide technical assistance to the North Carolina Geological Survey and Tennessee Geological Survey. Their work includes reconnaissance using satellite imagery, flights, and on-the-ground assessments to map landslides.

###

MIL-OSI USA News: Remarks by President Biden and First Lady Jill Biden at an Italian American Heritage Month Reception

Source: The White House

5:54 P.M. EDT

THE FIRST LADY: Thank you. (Applause.)

Thank you, Alexa. And I’m excited to see your generation forging new connections to our past and shining such a bright light into our future.

And I’m also grateful to the National Italian American Foundation. (Applause.) John, Robert, you’ve all — you’ve helped so many people experience our heritage in Italy and preserve it here in the United States. So, thank you.

Buonasera, everyone. (Laughter.)

AUDIENCE: Buonasera!

THE FIRST LADY: And welcome to the White House.

When I was a little girl, I learned what it means to be Italian American in my grandparents’ tiny, well-worn kitchen — and not only because there were ribbons of pasta — homemade pasta and sauce bubbling over on the stove.

No, the most important lesson that I learned in their kitchen was that, when you’re Italian American, there’s always room for one more chair at the table — (applause) — enough bread toast to feed one more guest, enough space in our hearts for another friend to become like family.

And even when times are hard, there’s —

THE PRESIDENT: Looking at me. (Laughter.)

THE FIRST LADY: There’s always enough time to — (the president makes the sign of the cross) — (laughter) — enjoy the pleasures of life together.

My grandparents also taught me to never waste an opportunity to invite more people to the table and make a difference together. So, I knew I had to bring those values of love, abundance, and service to the White House as the first Italian American first lady. (Applause.)

That’s why I’ve used this platform to give more women a seat at the table in discussions about their own health — (applause) — to hear from military families about how we can support them, to uplift community college students.

And I’ve had the opportunity to bring so many more people inside the historic walls of the White House by creating new educational experiences that allow more Americans to immerse themselves in this house, the People’s House; by using these rooms to celebrate the young people who are changing our world; by honoring the immigrants who helped build this country; and tonight — (applause) — thank you — and tonight, gathering with this community — my community — to celebrate our culture. (Laughter.)

So, it’s been the honor of my life to serve as first lady. And during my time here, I’ve often thought of my great-grandparents leaving everything they knew behind to chase the promise of America. And then, when they arrived on Ellis Island to take their first strides into a new life, I don’t think that they could ever have imagined that a group of hundreds of Italian Americans — coming together in the White House.

When our roots run deep, there’s no limit to how high we can reach. So, tonight, I hope that you feel the power of our ancestors’ values beating inside of us as we carry their legacy forward; that you feel home — you feel at home, eat good food, and end up with a little something sweet together, as a family. (Laughter.)

Now, it’s my pleasure to introduce a man who’s always felt at home — (laughs) — with Italian Americans. (Applause.) In fact, Joe first met my family at a big cookout at my grandparents’ house in Hammonton, New Jersey.

So, I was pretty nervous, you know, about Joe coming to meet my family. But as soon as Joe pulled up into the driveway — and you kn- — you can picture this — my tiny grandmom bolted out of the house, bounded down the porch steps, in her housecoat and her apron, and she gave Joe this huge hug, as if she’d known him his entire life. And before he could even get a plate, Joe was greeted not as a stranger but as family.

Over the years, I’ve seen the Italian American community extend the same joyful love and support to Joe. You mean so much to him. (Laughs.)

So, please welcome — I don’t know why I’m getting so emotional — your president, my husband, Joe. (Applause.)

THE PRESIDENT: Welcome to the White House. (Applause.)   My name is Joe Biden, and I’m Jill Biden’s husband. (Laughter and applause.)

Now, I may be Irish, but I’m not stupid. (Laughter.) I married Dominic Giacoppa’s granddaughter.

And five years ago, I want you to know, I received the Sons of Italy Man of the Year award. To the best of my knowledge, I’m the only non-Italian ever to receive that award. (Laughter and applause.) There was a large crowd when I received that award. It was down by the train station.

You know, I said I — I moved from an Irish Catholic neighborhood in Scranton to an Italian Catholic neighborhood in Claymont, Delaware. And I went from a — where — a place where you ended like Finnegan and Murphy and all that, down if your name didn’t lend — end in “O,” you’re in real trouble. (Laughter.)

I was one of the few guys whose name didn’t end in “O.” I’d look out there and look at all my friends. You know, I accepted the award and named some of the guys I grew up with next door: Sonny Daramo, whose mom would say, “Joey, it’s not sauce; it’s gravy, Joey. It’s gravy, Joey.” (Laughter and applause.) Oh, you think I’m kidding. I’m not. (Laughter.)

No, Anzilotti, De- — Sabatino, Buchini, Bifferato, Ceni, Congialdi, Deluterio, Monaco — no, you think I’m kidding — Tancr- —

By the way, after I talked about it, I looked down at that crowd and said, “You know…” — thinking about it, I said, “I deserve this damn award.” (Laughter.) “With that many Italian friends, man, I deserve that award.” (Laughter.)

Thank you, Alexa, for being here and sharing your pride in your family and your heritage.

Look, and it’s great to see so many friends from the National Italian American Foundation, you know, the Sons and Daughters of Italy, and so many other Italian American leaders and organization from all across the country.

You know, I can honestly say I wouldn’t be president without you. I wouldn’t be president without the Italian American community.

Now, what she didn’t say is we do have something in common. I’m Catherine Eugenia Finnegan — Irish Catholics background. You guys, a lot of you are Catholics, you know. (Laughter.) I know you don’t admit it as much, but there — (laughter).

This month is about celebrating the extraordinary contributions and proud, proud herita- — heritage of Italian Americans to our nation. And it’s kind of endless.

For some of our families, your story is America’s story. It stretches back generations. For others, it just started. No matter when these st- — stories of immigrants who left everything behind to travel across the ocean in pursuit of the American dream just for a shot — just a simple shot. You and your ancestors worked hard to help build this country and build the middle class.

People like my college friend, the late Congressman Bill Pascrell — he’s been — Bill, Jr. is here. Where — where are you, Bill? (Applause.) There you are.

I used to kid his dad all the time. I said, “You know, Delaware may be the second-smallest state in the Union, but we own the Delaware River up to the highwater mark in New Jersey.”   (Laughter.) There was actually a Supreme Court case about that. Anyway. (Laughter.)

But he represented New Jersey, and his son represents the House of Representatives. And Bill did it for 27 years, when he passed away this summer. He was the grandson of Italian immigrants, a giant in the community, and a devoted patriot to the nation. You got good blood, kid, as my dad would say. (Applause.)

He was a part of a proud, proud heritage of Italian Americans who enrich every part of American life: entrepreneurs, educators, scientists, chefs, diplomats, doctors, servicemembers, veterans, athletes, actors, artists, and so much more. There’s nothing the Italian community is not engaged in — I mean, virtually nothing. There’s noth- — no community you don’t excel in.

But I also know it wasn’t always easy. Many of your ancestors faced horrific discrimination, like my ancestors faced horrific discrimination, when they first came to our shores. Yet, even in the face of — Italian Americans proved that they had the resilient spirit and a devotion to family and community, an unshakeable faith in the promise of a better tomorrow.

You know, my dad used to have an expression. He’d say, “Joey, family is the beginning, the middle, and the end — the beginning, the middle, and the end.” It’s a faith that has carried through to today, both at home and abroad.

Italian Americans are central to our nation’s deep friendship and strategic partnership with Italy. I’ve — I’ve worked out a really good relationship with the Italians. I’m — well, Ital- — I better have done that but at home. (Laughter.) But all kidding aside, with th- — with Italy. What a magnificent country.

You know, and — anyway, I won’t get started. But — (laughter) — you know, the bond between our countries is founded on a shared principle and shared commitments, including the shared support for the brave people of Ukraine as they defend themselves against Russia’s illegal (inaudible). (Applause.)

I might add, they have a female leader. (Applause.) I wish Sonny Daramo were here to hear that. (Laughter.)

In addition, Italy’s remarkable stewardship with the presidency of the G7 this year, as well as Italy’s long-standing contributions to transatlantic security through NATO — look, and their strong leadership in the European Union — it underscores how important Italy’s role is on the global stage, not just, you know, for America but for the world.

You know, let me close with this. You know, Michelangelo famously said he “saw an angel in the marble, and I carved until I set it free.” “I saw an angel in the marble, and I carved until I set it free.” To me, that’s the essence of what Italian Americans have done to our country for our entire history. You’ve carved until you set us free. I’m — I’m being dead- — deadly earnest.

We’re all reminded that when Jill and I had the honor to host one of the greatest singers of all time, in my view, Andrea Bocelli, here at the White House for Christmas in our first year in office, he performed with his son and his daughter as if they were a choir of herald angels. They were incredible. You know, with their God-given talent, the Bocelli family moved our hearts, pierced our souls — and I mean this sincerely — I have all of the music on my — and they embodied the spirit and beauty of all that connects us as people. A powerful reminder that America’s story depends on — not on any one of us but on — not on some of us but all of us.

It’s a story I see in all of you, working tirelessly — tirelessly to help realize the promise of America — and I mean it — for all Americans. Not a joke. Because some of you have been on the short end of the stick like my family growing up had been.

This is what the Italian American Heritage Month is all about. It’s about celebrating and connecting, feeling the pride in heritage and community, remembering who the hell we are.

We’re the United States of America, and there’s nothing beyond our capacity when we do it together — nothing, nothing, nothing. (Applause.) No, I really mean it.

So, thank you. Thank you, thank you, thank you.

And I want to tell you, you know what made me mo- — the — probably one of the most famous guys in my family — the whole family? Not being president. I took her to a beautiful little island off of Sicily. (Laughter.) And she keeps saying, “I’m going back.” (Laughter.)

THE FIRST LADY: Soon!

THE PRESIDENT: “With — with or without you.” (Laughter.)

So, folks, all kidding aside, thank you. You’re an incredible community. (Applause.)

THE FIRST LADY: Thank you.

THE PRESIDENT: You’re an essential part of my life.

Thank you, thank you, thank you. (Applause.) Enjoy the day.

God bless you all. And may God protect our troops.

Thank you. (Applause.) All right.

6:07 P.M. EDT

https://www.imf.org/en/News/Articles/2024/10/11/pr-24369-turkiye-imf-executive-board-concludes-2024-aiv-consultation

MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Türkiye

Source: IMF – News in Russian

October 11, 2024

Washington, DC: On September 27, 2024, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation^[1] with Türkiye.

A decisive shift in economic policies over the past year has tightened Türkiye’s overall policy stance. The Central Bank of the Republic of Türkiye (CBRT) has brought the ex ante real policy rate into positive territory while reducing regulatory complexity. Tax and expenditure measures underpin efforts to restore fiscal prudence and the commitment to stronger incomes policies has strengthened credibility.

The policy turnaround has reduced economic imbalances and revived confidence. Headline inflation has fallen as tighter financial conditions are weighing on domestic demand. Market sentiment has sharply improved, with domestic and foreign investors shifting into lira-denominated assets while lower commodity prices, buoyant exports, and reduced gold imports have strengthened the current account, supporting a large improvement in both the gross and net reserves position. The financial and corporate sectors appear to have weathered the policy tightening and financial liberalization so far. Credit default swaps (CDS) spreads are now at about half their mid-2023 levels.

Under the authorities’ gradual policy adjustment, inflation is expected to further decline. Contractionary ex ante real policy rates, moderating wage growth, and more contractionary fiscal policy in 2025 are expected to reduce inflation to 43 percent this year and 24 percent in end-2025. After a strong first quarter, growth has weakened and is expected to fall to 3 percent in 2024 and 2.7 percent in 2025, recovering toward 4 percent in the medium term. Disinflation and improved confidence will support a narrowing of the current account deficit to about 2 percent of GDP and reserves to around 100 percent of the IMF’s adequacy metric.

Risks around the baseline are significant and tilted to the downside. They include stronger-than-expected wage and price inertia, a reversal of capital flows, higher global energy prices, and escalating geopolitical tensions. Significant financial and external vulnerabilities remain. The authorities’ gradual approach to fighting inflation prolongs the period during which risks might occur.

Executive Board Assessment^{^[2]}

The Executive Directors agreed with the thrust of the staff appraisal. They commended the authorities for the decisive policy tightening since mid-2023, which has helped to significantly reduce macroeconomic imbalances and risks. However, with inflationary pressures still high, and significant downside risks, they urged the authorities to press ahead with coordinated fiscal, monetary, and incomes policies to anchor inflationary expectations and entrench macroeconomic stability.

While noting sustainable public debt levels, Directors recommended a larger and more frontloaded fiscal consolidation to support disinflation efforts and further strengthen buffers. They supported strengthening tax administration, rationalizing tax expenditures, broadening the tax base, energy subsidy reform, limiting capital spending to essential projects, and enhancing risk monitoring while protecting earthquake related spending. Directors also urged further efforts to address fiscal risks arising from contingent liabilities in state owned enterprises, public private partnerships, and pension costs.

While noting the challenges, Directors considered that phasing out backward looking indexation and shifting toward setting wages in line with inflation expectations could significantly help reduce inflation.

Directors called for continued tight, data dependent monetary policy until inflation converges to target levels. They agreed that the central bank should stand ready to tighten further if needed to ensure that the path of disinflation stays on track. Directors highlighted that further strengthening the monetary transmission mechanism and central bank independence and communication would enhance policy credibility.

Directors encouraged foreign exchange intervention to focus on smoothing potentially destabilizing exchange rate movements that could dislodge inflation expectations, and to be scaled back as inflation recedes. They highlighted the need to effectively manage volatile capital flows and agreed that capital flow measures should be discontinued gradually as FX liquidity risk and inflation recede.

Directors underscored the importance of ongoing vigilance and further reforms to maintain financial stability. They supported continued implementation of the 2023 FSAP recommendations and efforts to align the supervisory and regulatory framework with Basel III standards. Directors commended the authorities for recent improvements to the AML/CFT framework and exit from the FATF grey list, while noting that further progress was needed, including to mitigate virtual assets risks.

Directors called for advancing structural reforms to achieve more inclusive, greener, and higher medium-term growth. Further energy and labor market reforms, including to boost female participation, remain important priorities.

Türkiye: Selected Economic Indicators, 2019−29
Population (2023): 85.4 million
Per capita GDP (2023): US$13,243
Quota: SDR 4,658.6 million

	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028	2029
						Proj.
Real sector			(Percent)
Real GDP growth rate	0.8	1.9	11.4	5.5	5.1	3.0	2.7	3.2	3.4	3.7	3.9
Contributions to real GDP growth
Private consumption	0.9	1.9	9.2	11.7	9.5	1.1	0.3	1.9	2.0	2.0	2.0
Public consumption	0.5	0.3	0.4	0.6	0.3	0.4	0.5	0.5	0.4	0.5	0.4
Investment (incl. inventories)	-3.0	4.8	-3.2	-7.5	-1.6	0.6	2.6	1.1	1.2	1.6	1.7
Net exports	2.4	-5.2	5.0	0.7	-3.1	0.9	-0.6	-0.2	-0.2	-0.3	-0.2
Output gap	-2.1	-4.6	1.1	1.5	1.9	0.7	-0.3	-0.5	-0.5	-0.2	0.0
GDP deflator growth rate	13.9	14.8	29.0	96.0	68.2	60.0	31.4	20.4	16.6	15.3	15.2
Inflation (period-average)	15.2	12.3	19.6	72.3	53.9	60.9	33.0	19.2	16.0	15.0	15.0
Inflation (end-year)	11.8	14.6	36.1	64.3	64.8	43.0	24.0	17.2	15.3	15.0	15.0

Unemployment rate	13.7	13.1	12.0	10.4	9.4	9.3	9.9	9.6	9.5	9.3	9.2

Fiscal sector			(Percent of GDP)
Nonfinancial public sector overall balance	-5.0	-4.7	-3.0	-2.7	-5.4	-5.3	-3.7	-3.1	-3.2	-3.1	-3.1
General government overall balance (headline) 1/	-3.0	-4.0	-2.6	-0.8	-5.2	-5.3	-3.5	-3.0	-3.0	-3.0	-3.0
General government gross debt (EU definition)	32.4	39.4	40.4	30.8	29.3	25.2	26.0	26.0	26.0	25.9	25.6

External sector			(Percent of GDP)
Current account balance	2.0	-4.3	-0.8	-5.1	-4.0	-2.2	-2.1	-2.0	-1.9	-1.9	-1.9
Gross external debt	54.5	59.8	53.9	50.5	45.2	41.3	39.8	40.9	40.4	39.9	39.3
Gross financing requirement	18.0	24.8	21.0	22.9	21.2	19.1	20.0	20.5	20.1	20.0	19.8
Monetary conditions (Percent)
Real average cost of CBRT funding to banks	5.4	-1.7	-1.9	-59.4	-35.4	…	…	…	…	…	…
Growth of broad money (M2)	27.3	33.9	53.0	59.2	70.1	…	…	…	…	…	…
Growth of credit to private sector	10.9	34.7	37.0	54.7	54.0	…	…	…	…	…	…

Sources: Turkish authorities; and IMF staff estimates and projections. 1/ Headline (or authorities’ definition), which includes items excluded from the IMF ‘program’ definition.

[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

[2] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summing ups can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm .

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Eva-Maria Graf

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

@IMFSpokesperson

MIL OSI

MIL OSI Russia News –

MIL-OSI: Agillic releases Q3 2024 financial report with 8% decrease in ARR from Subscriptions YoY, EBITDA of DKK 1.8 million and DKK 6.7 million in cash flow from operations

Source: GlobeNewswire (MIL-OSI)

Announcement no. 07 2024

Copenhagen – 22 October 2024 – Agillic A/S

ARR from subscriptions YTD decreased 8% primarily due to clients’ technology consolidations in Q1 2024. ARR from subscriptions increased modestly by 2% in Q3 2024 vs. Q2 2024. Agillic maintains its 2024 guidance due to expected growth from both existing clients and new sales in Q4 2024. Cash flow from operations was DKK 6.7 million in Q3 2024, an increase of DKK 12.6 million YoY.

Key financial and SaaS highlights
(DKK million)

Income statement	YTD 2024	YTD 2023	Change	Q3 2024	Q3 2023	Change
Revenue Subscriptions	37.0	40.2	-8%	12.1	13.6	-11%
Revenue Transactions	7.4	9.1	-19%	2.7	3.0	-10%
Other revenue	0.0	0.0	n/a	0.0	0.0	n/a
Total revenue	44.4	49.3	-10%	14.8	16.6	-11%
Gross profit	36.1	39.6	-9%	11.7	13.4	-13%
Gross margin	81%	80%	–	79%	81%	–
Other operating income	0.6	0.5	20%	0.2	0.2	0%
Employee costs	-23.7	-26.0	9%	-7.1	-7.9	10%
Operational costs	-11.2	-10.6	-6%	-3.6	-3.2	-13%
EBITDA	1.8	3.5	-49%	1.2	2.5	-52%
Net profit	1.2	-5.1	n/a	-2.4	-0.4	-500%

Financial position
Cash	3.7	11.5	-68%	3.7	11.5	-68%

ARR development
ARR Subscriptions	52.5	56.8	-8%	52.5	56.8	-8%
ARR Transactions	10.6	12.1	-12%	10.6	12.1	-12%
Total ARR	63.1	68.9	-8%	63.1	68.9	-8%
Change in ARR	-5.8	2.5	–	1.4	2.5	–
Change in ARR %	-8%	4%	–	2%	4%	–

Reclassification between other operating income, employee costs, and operational costs is updated in 2023 figures.

ARR
ARR from subscriptions decreased 8% YoY which was related to clients’ business and technology consolidation and in line with our expectations. ARR from transactions decreased 12% YoY as a consequence of lower volumes due to geopolitical factors. The decline in ARR mainly happened in Q1 2024, while ARR increased modestly in Q3, and we expect both ARR from subscriptions and ARR from transactions to increase further in Q4 2024.

Revenue
Total Revenue decreased 10% YoY related to the decrease in ARR. Total Revenue is expected to increase in Q4 2024.

EBITDA
EBITDA YTD was negatively impacted by the decrease in revenue and by an increase in operational costs related to a one-time cost of DKK 1.0 million for consultancy services. However, with an increase in the gross margin from 80% to 81% YTD, and a decrease in employee costs, we delivered a positive EBITDA in Q3 2024 YTD of DKK 1.8 million.

Cash
At the end of Q3, at the cash position was DKK 3.7 million in line with expectations. This was primarily a result of an increase in cashflow from operations to DKK 6.7 million (Q3 2023: DKK -5.9 million).

Financial guidance 2024 (unchanged)

Revenue	DKK million	62 to 66
EBITDA	–	0 to 2
ARR Subscriptions	–	56 to 60
ARR Transactions	–	10 to 14
Total ARR	–	66 to 74

For further information, please contact:
Emre Gürsoy, CEO
+45 30 78 42 00
emre.gursoy@agillic.com

Claus Boysen, CFO
+45 28 49 18 46
claus.boysen@agillic.com

Certified Adviser
John Norden, Norden CEF A/S

Disclaimer
The forward-looking statements regarding Agillic’s future financial situation involve factors of uncertainty and risk, which could cause actual developments to deviate from the expectations indicated. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the presented outlook. Furthermore, some of these expectations are based on assumptions regarding future events, which may prove incorrect. Please also refer to the overview of risk factors in the ‘risk management’ section of the annual report.

About Agillic A/S
Agillic is a Danish software company offering brands a platform through which they can work with data-driven insights and content to create. automate and send personalised communication to millions. Agillic is headquartered in Copenhagen, Denmark, with teams in Germany, Norway, and Romania.
For further information, please visit http://www.agillic.com

Appendix: Financial development per quarter

DKK million	2024			2023					2022

INCOME STATEMENT	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
Revenue Subscriptions	12.1	12.3	12.6	52.4	12.2	13.6	13.5	13.1	49.9	13.5	13.1	12.2	11.1
Revenue Transactions	2.7	2.5	2.2	12.0	2.9	3.0	2.9	3.2	16.7	6.0	4.8	3.3	2.6
Other revenue	0.0	0.0	0.0	0.3	0.3	0.0	0.0	0.0	0.4	0.0	0.0	0.1	0.3
Total revenue	14.8	14.8	14.8	64.7	15.4	16.6	16.4	16.3	67.0	19.5	17.9	15.6	14.0
Gross profit	11.7	12.1	12.3	52.2	12.6	13.4	13.2	13.0	49.6	15.5	11.4	11.7	11.0
Gross margin	79%	82%	83%	81%	82%	81%	80%	80%	74%	80%	63%	75%	78%
Other operating income	0.2	0.2	0.2	0.6	0.1	0.2	0.2	0.1	0.3	0.3	0.0	0.0	0.0
Employee costs	-7.1	-8.0	-8.6	-36.8	-10.8	-7.9	-9.4	-8.7	-32.5	-9.2	-7.3	-8.0	-8.0
Operational costs	-3.6	-4.3	-3.3	-14.1	-3.5	-3.2	-3.0	-4.4	-16.3	-5.1	-2.7	-3.7	-4.8
EBITDA	1.2	0.0	0.6	1.9	-1.6	2.5	1.0	0.0	1.1	1.5	1.4	0.0	-1.8
Net profit	-2.4	7.0	-3.4	-27.5	-22.4	-0.4	-1.8	-2.9	-10.6	-2.0	-1.2	-2.7	-4.7
BALANCE SHEET
Cash	3.7	4.4	7.2	9.8	9.8	11.5	18.3	26.9	7.4	7.4	1.8	12.6	7.5
Total assets	42.8	45.8	51.5	47.1	47.1	64.9	69.0	75.8	52.8	52.8	54.0	58.7	55.4
Equity	-17.8	-16.0	-23.6	-20.2	-20.2	1.5	1.8	3.4	-15.0	-15.0	-13.2	-12.0	-9.6
Borrowings	19.1	21.4	24.3	23.7	23.7	23.0	24.2	25.7	24.3	24.3	23.7	26.1	26.4
CASH FLOW
Cash flow from operations	4.1	2.6	0.0	-6.5	-0.6	-2.8	-4.3	1.2	3.1	7.3	-4.9	9.0	-8.3
Cash flow from investments	-2.6	-2.7	-3.0	-11.7	-2.1	-3.1	-3.2	-3.3	-13.5	-3.3	-3.3	-3.7	-3.2
Cash flow from financing	-2.2	-2.7	0.4	20.6	1.0	-0.9	-1.1	21.6	-2.8	1.6	-2.5	-0.2	-1.6
Net cash flow	-0.7	-2.8	-2.6	2.4	-1.7	-6.8	-8.6	19.5	-13.2	5.6	-10.8	5.1	-13.1
EMPLOYEES & CLIENTS
Employees end of period	40	39	41	50	50	50	50	46	48	48	47	51	47
Clients end of period	114	113	116	122	122	120	120	118	118	118	111	108	105
ARR & SAAS METRICS
ARR Subscriptions	52.5	51.7	52.2	57.8	57.8	56.8	54.9	54.2	54.1	54.1	50.3	49.6	48.5
ARR Transactions	10.6	10.0	8.9	12.3	12.3	12.1	11.5	17.3	22.6	22.6	19.6	14.6	10.3
Total ARR	63.1	61.7	61.1	70.1	70.1	68.9	66.4	72	76.7	76.7	69.9	64.2	58.8
Change in ARR (DKK)	1.4	0.6	-9.0	-6.6	1.2	2.5	-5.1	-5.2	21.0	6.8	5.7	5.4	3.1
Change in ARR %	2%	1%	-13%	-9%	2%	4%	-7%	-7%	38%	10%	9%	9%	6%
Average ARR	0.6	0.5	0.5	0.6	0.6	0.6	0.6	0.6	0.6	0.6	0.6	0.6	0.6
Yearly CAC	–	–	–	0.2	–	–	–	–	0.1	–	–	–	–
Months to recover CAC	–	–	–	6	–	–	–	–	3	–	–	–	–

Definitions

Cash is defined as available funds less bank overdraft withdrawals.
ARR: the annualised value of subscription agreements and transactions at the end of the actual reporting period.
Average ARR: the average Total ARR per client.
Customer Acquisition Costs (CAC): the sales and marketing cost (inclusive salaries, commissions, direct and share of costs of office) divided by the number of new clients. CAC is calculated end of year.
Months to recover CAC: the period in months it takes to generate sufficient gross profit from a client to cover the acquisition cost.

Published on 22 October 2024

Attachment

Agillic CA_no7 22102024

MIL-OSI USA: Connolly Leads Bipartisan Letter Urging the Administration to Take Action on Double Taxation with Taiwan

Source: United States House of Representatives – Representative Gerry Connolly (D-Va)

Congressman Gerry Connolly (D-VA), a senior member of the House Committee on Foreign Affairs, co-Chair of the Congressional Taiwan Caucus, and the author of the Taiwan Tax Agreement Act of 2023, led four of his colleagues in writing to Secretary of State Antony Blinken and Secretary of the Treasury Janet Yellen to urge the Administration to take action on the issue of double taxation with Taiwan.

In addition to Connolly, the letter was signed by Congressman Greg Meeks (D-NY), the Ranking Member of the House Committee on Foreign Affairs; Congressman Joe Wilson (R-SC), the Chairman of the House Subcommittee on the Middle East, North Africa, and Central Asia; Congressman Ami Bera (D-CA), the Ranking Member of the House Subcommittee on the Indo-Pacific and a co-Chair of the Congressional Taiwan Caucus; and Congressman Greg Stanton (D-AZ), a member of the House Committee on Foreign Affairs.

“As supporters of strong commercial ties between the U.S. and Taiwan, we write to urge you to take action to remedy double taxation burdens as we await the Senate passage of Taiwan-related provisions in the Tax Relief for American Families and Workers Act of 2024,” wrote the Members.

“While we continue to believe legislative action in the Senate, namely the authorization included in the Tax Relief for American Families and Workers Act of 2024, is needed to conclude a double taxation agreement, we welcome the Administration’s desire to begin negotiations between the American Institute in Taiwan and the Taiwan Economic and Cultural Representative Office on said agreement,” the Members continued. “We urge that such negotiations begin in earnest and that the Departments of State and Treasury use existing statutory authority to lower these barriers to trade in order to facilitate investment, protect against tax evasion, and shield businesses and individuals in the U.S. and Taiwan from the strain that double taxation causes.”

“Taiwan has grown to be an economic juggernaut in the Indo-Pacific and around the world. We must ensure that companies from the U.S. and Taiwan are not disadvantaged in conducting bilateral investment. Curing double taxation will be a clear reassertion of our support for a strong and prosperous Taiwan, for its own sake and as a bulwark against an increasingly aggressive China,” the Members concluded.

Full text of the letter is available here and below.

Dear Secretary Blinken and Secretary Yellen:

As supporters of strong commercial ties between the U.S. and Taiwan, we write to urge you to take action to remedy double taxation burdens as we await the Senate passage of Taiwan-related provisions in the Tax Relief for American Families and Workers Act of 2024.

While we continue to believe legislative action in the Senate, namely the authorization included in the Tax Relief for American Families and Workers Act of 2024, is needed to conclude a double taxation agreement, we welcome the Administration’s desire to begin negotiations between the American Institute in Taiwan and the Taiwan Economic and Cultural Representative Office on said agreement. We urge that such negotiations begin in earnest and that the Departments of State and Treasury use existing statutory authority to lower these barriers to trade in order to facilitate investment, protect against tax evasion, and shield businesses and individuals in the U.S. and Taiwan from the strain that double taxation causes.

As one of the world’s largest economies and a major regional player, Taiwan is a critical economic partner for the United States. Taiwan is the United States’ seventh-largest merchandise trading partner, with $128 billion in total goods trade. The U.S., meanwhile, is Taiwan’s second-largest trading partner. In 2023 alone, U.S. direct investment stock in Taiwan grew to $19.3 billion, with Taiwan’s direct investment stock in the United States reaching $15.6 billion, a testament to our ever-growing bilateral economic partnership.

We must do all we can to strengthen that partnership – including by implementing a tax agreement that removes unnecessary barriers and benefits businesses in both the U.S. and Taiwan. As we await Senate action on Taiwan-related provisions in the bipartisan Tax Relief for American Families and Workers Act, including an authorization for the American Institute in Taiwan and Taiwan Economic and Cultural Representative Office to negotiate a tax agreement, we urge you to take interim steps to allow businesses on either side to invest without the burden of double taxation.

Taiwan has grown to be an economic juggernaut in the Indo-Pacific and around the world. We must ensure that companies from the U.S. and Taiwan are not disadvantaged in conducting bilateral investment. Curing double taxation will be a clear reassertion of our support for a strong and prosperous Taiwan, for its own sake and as a bulwark against an increasingly aggressive China.

Sincerely,

MIL-OSI: Siili Solutions Plc, Business review, 1 January–30 September 2024

Source: GlobeNewswire (MIL-OSI)

Siili successfully launched the implementation of its new strategy in challenging market conditions

Siili Solutions Plc Stock Exchange Release 22 October 2024 at 9:45 am EEST

Key figures

EUR million	Q3/2024	Q3/2023	Q1-Q3/2024	Q1-Q3/2023
Revenue	24.1	27.0	83.3	92.3
Revenue growth. EUR million	-2.9	0.1	-9.0	6.5
Revenue growth. %	-10.8%	0.5%	-9.8%	7.6%
Organic revenue growth. EUR million	-2.9	-1.2	-9.0	2.3
Organic revenue growth. %	-10.8%	-4.1%	-9.8%	2.6%
Adjusted EBITA	0.7	1.3	4.0	6.3
Adjusted EBITA. % of revenue	2.9%	4.7%	4.8%	6.8%
EBITA	0.7	1.3	3.4	6.3
EBITA. % of revenue	2.9%	4.7%	4.1%	6.8%
Average number of employees during the period	956	1,057	976	1,049
Number of employees at the end of the period	945	1,053	945	1,053
Number of full-time employees (FTE) at the end of the period	909	1,023	909	1,023
Number of full-time subcontractors (FTE) at the end of the period	148	172	148	172

Key events in July-September:

On 13 August 2024, Siili published its new strategy placing AI and data at its core.
On 17 September 2024 Siili published a profit warning and lowered its financial guidance for 2024 revenue and adjusted EBITA.
Activity in sales created good ground for strategy implementation.

Outlook for 2024:

The updated financial guidance of revenue for 2024 is expected to be EUR 106–116 million and adjusted EBITA EUR 4.5–6.5 million.

The previous guidance for the current year’s revenue was EUR 120-140 million and adjusted EBITA EUR 7.5-10.5 million.

CEO Tomi Pienimäki:

In July–September, Siili continued to lay a solid foundation for the implementation of its new strategy in spite of challenging market conditions.

Revenue for the third quarter declined 11% year-on-year, to stand at approximately EUR 24 million. Adjusted EBITA for the quarter was EUR 0.7 million and about 3% of revenue.

The overall state of the IT service market has remained challenging, and recovery of the markets is taking longer than expected. Decision-making by customers on starting new projects continues to be slow, despite increased activity among customers. Against this backdrop, in September, we updated our guidance on revenue and adjusted EBITA for 2024.

As an example of positive developments in sales, I would like to highlight a significant new customer in the German automotive industry, starting out with a contract of approximately EUR 8 million for the next five years. Siili was also selected by several industry-leading AI users as a partner in data and AI projects. Growth in this area is one of our strategic priorities. For the time being, AI projects tend to be small, but they represent important openings in building long-term partnerships. We have continued to strengthen the data and AI competencies of the Siili team, both by training the personnel and by new recruitments.

In August, we announced a new strategy, placing artificial intelligence and data at its core. In October, we published a Handbook on AI-powered software development. In the book, our experts describe, in concrete terms, new ways of working that are already changing the way how the Siili team operates and that will strengthen our position as a leader in the utilisation of artificial intelligence in software development.

In October, Siili appointed Maria Niiniharju as VP Private Business and member of management team. Niiniharju brings us strong experience in business development as well as valuable data and AI expertise, which is perfect fit to accelerate Siili’s strategy execution.

Siili achieved 10th place in the Young Professional Attraction Index survey by Academic Work. Our goal is to be a community of top talent, and in line with our strategy, we will continue to endorse a strong corporate culture and continuous learning opportunities for the personnel.

Siili will arrange a Capital Markets Day on 26 November 2024. In the event, we will describe our new strategy, our AI and data expertise as well as our financial standing.

Despite the challenges of the operating environment, we believe in the normalisation of the markets, although the turnaround has been delayed. I want to extend my thanks to the entire Siili team and our customers for the past third quarter of the year. We are in a good position to continue the roll-out of our renewed strategy towards the end of the year.

—

This is not an interim report under IAS 34. The company complies with the half-yearly reporting requirements of the Securities Markets Act and publishes business reviews for the first three and nine months of the year, which present key information on the company’s financial performance. The financial information presented in this business review is unaudited.

Further information:

CEO Tomi Pienimäki

Tel: +358 40 834 1399, email: tomi.pienimaki(at)siili.com

CFO Aleksi Kankainen

Tel: +358 40 534 2709, email: aleksi.kankainen(at)siili.com

Distribution:

Nasdaq Helsinki Ltd
Main media
http://www.siili.com/en

Siili Solutions in brief:

Siili Solutions Plc is a forerunner in AI-powered digital development. Siili is the go-to partner for clients seeking growth, efficiency and competitive advantage through digital transformation. Our main markets are Finland, the Netherlands, the United Kingdom, and Germany. Siili Solutions Plc’s shares are listed on the Nasdaq Helsinki Stock Exchange. Siili has grown profitably since its founding in 2005. http://www.siili.com/en

Attachment

Siili Solutions Plc Business review 1 January-30 September 2024

MIL-OSI Canada: Joint Declaration by G7 Defence Ministers to reaffirm common determination to address security challenges

Source: Government of Canada News

We, the G7 Defense Ministers of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America, and the High Representative of the European Union, with the participation of the NATO Secretary General, have gathered in Naples to reaffirm our enduring unity and common determination to address, in a cohesive and concrete manner, security challenges, at a time in history marked by great instability.

October 19, 2024 – Naples, Italy – National Defence / Canadian Armed Forces

Preamble

We, the G7 Defense Ministers of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America, and the High Representative of the European Union, with the participation of the NATO Secretary General, have gathered in Naples to reaffirm our enduring unity and common determination to address, in a cohesive and concrete manner, security challenges, at a time in history marked by great instability.

In this spirit, we strongly reaffirm our commitment to promote respect for the United Nations Charter, to implement tangible measures to help safeguard peace and security, and to oppose any action aimed at undermining the free and open rules-based international order.

We:

reiterate our unwavering support for Ukraine, which has for nearly three years defended itself against Russia’s brutal and full-scale illegal war of aggression. We condemn Russia, which has put in place a posture of confrontation and destabilization on a global scale, also resorting to hybrid warfare and the irresponsible use of nuclear rhetoric;
believe that the G7, along with other international partners, can play a key role in the process of achieving a comprehensive, just and lasting peace in line with international law, with respect for Ukraine’s sovereignty, independence and territorial integrity. This cannot be done without continuing to work to achieve the widest possible international support for Ukraine, fostering a renewed sense of trust, based upon the inclusion of like-minded countries;
commit to identifying cooperative solutions to address the growing need for defense industries to be able to sustain a high pace of production, work on building and strengthening resilient and reliable defense industry, including on issues related to supply needed for Defense;
recognize the need for a more cooperative approach in defense-related research and development, also in terms of sharing and leveraging expertise and knowledge, while fostering a safe environment to prevent malign access, in order to maintain competitive advantage, including in the field of emerging and disruptive technologies;
acknowledge the relevance of finding effective solutions to ensure the extended sustainability of military operations and proper regeneration of forces;
are also committed to containing and countering information manipulation and the spread of misinformation and disinformation;
condemn Hamas’ brutal terrorist attack on Israel on October 7^th, 2023, which has unleashed a spiral of violence that threatens the entire Middle Eastern region;
are united in supporting the need for an immediate ceasefire in Gaza, the release of all hostages, a significant and sustained increase in the flow of humanitarian assistance throughout Gaza and a sustainable pathway to a two-state solution;
are concerned by the latest events in Lebanon and the risk of further escalation. We express concern over all threats to UNIFIL’s security. The protection of peacekeepers is incumbent upon all parties to a conflict. We also reaffirm the importance of supporting UNIFIL and the Lebanese Armed Forces in their role of ensuring the stability and security of Lebanon.
condemn the attacks perpetrated by the Houthis against maritime shipping transiting the area including the Red Sea, Bab el Mandeb Strait and Gulf of Aden, reaffirming the right to preserve freedom of navigation, protect shipping lanes and defend ships and personnel, in accordance with international law and UNSCRs 2722 and 2739;
condemn Iran’s direct military attack against Israel on 13 April and 1 October, 2024, and call on Iran to refrain from providing support to Hamas, Hezbollah, Houthis and other non-state actors, and taking further actions that could destabilize the region and trigger an uncontrolled process of escalation;
express our concerns about strategies pursued by some state actors towards Africa, including predatory economic practices, and disinformation, that create instability;
reaffirm our commitment to the strengthening of the stability and security of African countries, stressing the importance of an integrated approach, through practical and coordinated actions with African partners in the field of peace, security and defense, notably in the areas of capacity building, security and defense sectors reform, as well as interoperability. In this sense, we look forward to bilateral and multilateral partners’ initiatives on the “southern neighborhood”, including EU and NATO activities;
recognize that climate change is a defining challenge with a profound impact on our security that can aggravate demographic, economic, and political challenges to peace and stability worldwide, and especially in the most vulnerable countries;
reaffirm that the multilateral system, with the United Nations and its Charter at the center, must be strengthened. We are committed to take the necessary actions adopted at the UN Summit of the Future and to continue to support and adapt UN Peace Operations as a critical tool to maintain international peace and security;
reaffirm our commitment to a free and open Indo-Pacific, whose crucial role in global prosperity and security we recognize, and our commitment to fostering our security and defense partnerships with Indo-Pacific countries;
reaffirm that maintaining peace and stability across the Taiwan Strait is indispensable to international security and prosperity;
express our serious concern about the situation in the East and South China Seas and reiterate our strong opposition to any unilateral attempts to change the status quo by force or coercion, including in the maritime and air domains;
express our deep concern at China’s support to Russia, which is enabling Russia to maintain its illegal war in Ukraine and has significant and broad security implications, as well as the strengthening of military cooperation between China and Russia;
condemn the continued development of North Korea’s nuclear and ballistic missile programs, in direct violation of relevant UNSCRs, and express our concern about its increasing military cooperation with Russia.

Support to Ukraine

Since Russia’s full-scale invasion of Ukraine, we, the G7 with NATO, have played a central role in supporting Ukraine’s right to self-defense in order to counter Russia’s aggression, to achieve a comprehensive, just and lasting peace in Ukraine, reaffirming the primacy of international law, including the UN Charter and the principle of the inviolability of national sovereignty.

We reaffirm our unwavering support for the freedom, sovereignty, independence and territorial integrity of Ukraine for as long as it takes.

We continue to condemn in the strongest possible terms Russia’s blatant breach of international law, including the UN Charter, its repeated and deliberate attacks against civilian and critical infrastructures, the use of actions of hybrid warfare, as well as Russia’s irresponsible nuclear rhetoric.

We believe that Russia’s aggression against Ukraine is posing a threat to international security, the purposes and principles of the UN Charter and the rules-based international order.

We support Ukraine’s right to self-defense and reaffirm our commitment to Ukraine’s long-term security, including by implementing bilateral security commitments and arrangements based on the G7 “Joint Declaration in support of Ukraine” signed in the margins of the NATO Vilnius Summit, bilateral security agreements and arrangements signed with Ukraine, and the Ukraine Compact endorsed in the margins of the NATO Washington Summit.

We therefore reaffirm the importance of synergy and coherence between the support provided by NATO, the EU and on a bilateral or multilateral basis. In this regard, we support the mechanism of enhanced political consultations between Ukraine and the Alliance established with the NATO-Ukraine Council. We support the assistance initiatives of the EU and NATO, including the military support through the European Peace Facility, the EU Military Assistance Mission for Ukraine, negotiations for Ukraine’s accession to the European Union, and the NATO Security Assistance and Training for Ukraine. We also support the Ukraine Defense Contact Group, including the work of its Capability Coalitions, and recall the launch of the Ukraine Compact at the NATO Washington Summit. We welcome initiatives aimed at supporting Ukrainian defense industry and innovation, which are instrumental to enable Ukraine’s self-defense.

We underscore our intent to continue to provide assistance to Ukraine, including military assistance in the short and long term. We support Ukraine on its irreversible path to full Euro-Atlantic integration, including NATO membership.

We consider it imperative to continue supporting the education and training needs of the Ukrainian Defense and Security Forces in the short and long term, given the need for force regeneration and reconstitution. We welcome NATO’s and EU’s respective efforts through NATO Security Assistance and Training for Ukraine and EU Military Assistance Mission in support of Ukraine, which will provide support also to the long-term development and reform of Ukraine’s Armed Forces, including military assistance. In coherence with Apulia G7 Leaders’ Communiqué, Extraordinary Revenues stemming from immobilized Russian sovereign assets, held in the EU and other relevant jurisdictions, will be used for supporting Ukraine, including military, budgetary and reconstruction assistance in the short and long term, as consistent with G7 members’ respective legal systems.

We consider it a priority to work now to find solutions to create a Ukrainian military interoperable with supporting member states and NATO, capable of defending Ukraine now and deterring further attacks in the future. This process must be based on coordinated and sustained actions across relevant state and international actors.

We reiterate that our ultimate goal remains a comprehensive, just and lasting peace in accordance with international law, as set out in the UN Charter and its principles, that ensures respect for Ukraine’s sovereignty and territorial integrity.

Middle East

We express our concern about the escalation in the Middle East.

We reiterate our firm condemnation of the brutal terrorist attacks perpetrated by Hamas on 7 October 2023. We call for an immediate ceasefire and the prompt release of all hostages. This attack has triggered a spiral of violence, also involving Israel and Hezbollah, deeply affecting civilians. A dangerous cycle of attacks and retaliation risks fueling uncontrollable escalation in the Middle East, which is in no one’s interest. We encourage all parties to engage constructively to de-escalate current tensions and emphasize the importance for all parties to act in accordance with international law, including international humanitarian law. We reiterate the absolute need for the civilian population to be protected and that there must be full, rapid, safe, and unhindered humanitarian access, as a matter of absolute priority.

The conflict in the Gaza and the dramatic humanitarian crisis have highlighted the need to start a political process necessary to avoid further military escalation and achieve a stable and lasting security situation. We therefore reaffirm the need to continue working towards a lasting ceasefire in Gaza, a stable security situation, and an increased and unimpeded flow of humanitarian aid to the innocent civilian population.

We welcome UNSCR 2735 and reaffirm our commitment to support a political process towards achieving a two-state solution, as the only option for ensuring the long-term peaceful coexistence of Israelis and Palestinians, addressing both Israel’s legitimate security needs, alongside a sovereign, viable and democratic Palestinian state.

We commend initiatives to train and advise Palestinian Authority security forces, and support the broader reform of the security and judiciary building on the positive experience of successful capacity building initiatives, including those for the Palestinian Civil Police, an improvement for the Palestinian people.

We reaffirm the need to identify, with other partners, within the framework of the relevant international organizations, viable solutions for post-conflict stabilization, governance and security, and in this regard we stand ready to support, when security conditions permit, post-war initiatives aimed at stabilizing the region.

We support the restoration of security and stability on the Lebanon-Israel border, including the protection of local populations.

We are concerned by the latest events in Lebanon and the risk of further escalation. We reiterate our call for a full cessation of hostilities consistent with the full implementation of UNSCR 1701 and a diplomatic solution to the fighting, recognizing the fundamental stabilizing role of the Lebanese Armed Forces and reaffirming the essential role of UNIFIL. We express concern over all threats to UNIFIL’s security. The protection of peacekeepers is incumbent upon all parties to a conflict.

We unequivocally condemn Iran’s ballistic missiles large-scale attacks against Israel and emphasize the importance for all parties to act in accordance with international law, including international humanitarian law.

We unequivocally reiterate commitment to the security of Israel.

We express our deep concern at the intensification of military cooperation between Iran and Russia, including in the supply of ballistic missiles, UAVs, military equipment and sensitive technology, aimed at circumventing the sanctions regime.

We are committed to maintaining freedom of navigation, protecting sea-lanes and defending seafarers and ships from attacks by Houthis in the Red Sea, Arabian Sea and Gulf of Aden, in line with the UNSCR 2722. We call on the Houthis to immediately cease their escalatory measures that increase regional instability, and immediately release the vessel “Galaxy Leader” and its crew. We welcome the significant contributions of the G7 to maritime security initiatives in the region.

We also believe it is crucial to prevent the conflict from spreading across the region. We call on all parties to avert an all-out war, a situation that would irreversibly destabilize the entire region and project further tension and instability around the world.

Africa

We believe that the African continent and the G7 share great potential for partnership and shared objectives, aware that the complex balances and the combined effects of growing demographics and climate change imply the need for an ongoing and shared development agenda.

We express our commitment to support the governments of African countries in setting the conditions that form the basis of sustained security, stability, and prosperity.

We recognize the significant impact several state and non-state actors have had on the economy and security of Africa. However, some aspects of this unbalanced influence have led to poor environmental, social and governance standards, supply chain dominance, debt unsustainability and labor and transparency concerns. The G7 endorses fair defense and economic partnerships that are mutually beneficial and equitable, through cooperation with African countries and its regional organizations.

We will continue our commitment to supporting peace, prosperity and stability in Africa, including within the EU integrated approach, combining different foreign policy tools, including civilian and military Common Security and Defence Policy missions and operations. Moreover, we welcome the assistance measures provided to African partners under the European Peace Facility, as a critical enabler of African ownership by strengthening the capacity of African Armed Forces and supporting African-led peace support operations. We see training, interoperability, the development of common protocols, the exchange of personnel and NATO’s Defence and related Security Capacity Building activities as effective tools for creating the right conditions for fostering security.

Indo-Pacific

We affirm our commitment to a free and open Indo-Pacific, based on the rule of law and upholding the principle of the peaceful resolution of disputes without resorting to the threat or use of force. The region is central to global growth, geopolitical developments and military balance.

The importance of the Indo-Pacific goes beyond the economic dimension alone, with many developed and developing countries having direct interests in promoting peace, security and prosperity in the region, including through defense and security partnerships. We seek constructive and stable relations with China and recognize the importance of direct and candid engagement to express concerns and manage differences, particularly with regards to international peace and security.

We express our serious concern about the situation in the South and East China Seas, and as stated in the Apulia G7 Leaders’ Communiqué, we reiterate our strong opposition to any unilateral attempts to change the status quo by force or coercion.

There is no legal basis for China’s expansive maritime claims in the South China Sea, and we are strongly opposed to China’s repeated obstruction of freedom of navigation, militarization of disputed features and coercive and intimidating activities, as well as the dangerous use of Coast Guard and maritime militia vessels in the South China Sea.

We reaffirm the universal and unified character of the UN Convention on the Law of the Sea and reaffirm its important role in setting out as the legal framework that governs activities in the oceans and the seas. We also reiterate that the award rendered by the Arbitral Tribunal on July 12, 2016, is legally binding upon the parties to those proceedings.

We reaffirm that maintaining peace and stability across the Taiwan Strait is indispensable to international security and prosperity. We are concerned about provocative actions, particularly the recent People’s Liberation Army military drills around Taiwan. There is no change in the basic positions of the G7 members on Taiwan, including stated one China policies. We call for a peaceful resolution of cross-Strait issues.

We express our deep concern at China’s increasing support to Russia’s war economy, and call on China to cease the transfer of dual-use materials, including weapons components and equipment that are substantial inputs for Russia’s defense sector which are enabling Russia to maintain its illegal war in Ukraine. We express our concern about destabilizing actions resulting from the strengthening military cooperation between China and Russia.

We condemn North Korea’s nuclear and ballistic missile programs. We reiterate our call for a complete, verifiable and irreversible dismantlement of all North Korea’s weapons of mass destruction and ballistic missile programs. We also condemn the increasing military cooperation between North Korea and Russia, including North Korea’s export and Russia’s procurement of North Korean ballistic missiles in direct violation of relevant UNSCRs, as well as Russia’s use of these missiles against Ukraine. We are concerned about the potential for any transfer of nuclear or ballistic missile-related technology to North Korea, which also violates relevant UNSCRs.

In this sense, acknowledging the relevance of the stability of the Indo-Pacific region to global dynamics, we are committed to coordinating our respective security and defense presence in the area, aimed at ensuring that regional security is preserved in accordance with international law.

We are committed to continue the dialogue with all partners in the region, as well as exploring increased participation in regional exercises and further operational cooperation in the region to deal with growing regional security challenges.

Defense readiness

We recognize these interconnected security challenges and acknowledge the need to respond decisively, including by continuing to strengthen the defense industry, encouraging robust engagement and industrial cooperation with partners. We welcome complementary initiatives launched in NATO and the EU.

We recognize the importance of ensuring reliable, predictable and stable access to finance for defense industries, acknowledging the specificities of the defense sector, fully taking into account sustainable finance policies, regulations, reporting and standards. We envisage greater cooperation, coordination and synergy aimed at a strong, responsive, secure, competitive and resilient defense industrial capacity and production. We will work on exploring multinational cooperation on efficient procurement, and aggregating demand to improve efficiencies. We consider it of paramount importance to keep our military edge through the responsible research and development and prompt adoption of new technologies, especially those in the emerging and disruptive technologies domain.

We highlight the relevance of an in-depth dialogue among G7 members on the challenges and opportunities for industrial resilience, work on building and strengthening resilient and reliable defense industry, including on issues related to supply needed for Defense.

We will continue working to improve interoperability, building upon the shared standards already in place.

We recognize the need to reduce heavy reliance on fossil fuels, and minimize and mitigate emissions, sharing best practices on energy transition, in order to preserve interoperability, protecting military effectiveness, and manage risks and vulnerabilities.

We acknowledge the need to share best practices about how to ensure buy-in and involvement from society, also to generate a credible and skilled workforce as a pillar of deterrence and defense. We recognize the importance of continuing to discuss and share each G7 member’s efforts to strengthen defense readiness.

Conclusions

We, the G7 Defense Ministers of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America, and the High Representative of the European Union, with the participation of the NATO Secretary General, reaffirm our commitment, enduring unity and shared determination to address international security challenges together, in cooperation with international organizations and partners who share our respect for, and commitment to, the rules-based international order and international law, including the UN Charter.

MIL OSI Canada News –

MIL-OSI Reportage: BNZ launches Tech Business Hub to empower early-stage technology businesses

Source: BNZ statements

New Zealand’s tech sector is set to get a boost thanks to the launch of the country’s first dedicated banking hub for early-stage technology businesses.

The Waikato-based BNZ Tech Business Hub is designed to address the unique needs of early-stage tech companies.

It offers BNZ customers access to bankers with specific training and expertise who are equipped to offer financial services to address the unique challenges and opportunities faced in the technology industries.

Tim Wixon, Head of Technology Industries at BNZ, says, “BNZ’s Tech Business Hub is not just a new offering – it represents a philosophical shift in how we approach banking for this sector. Technology businesses have distinct needs which have not historically been met by traditional banking models. Our hub will help fill this gap by offering practical guidance, advice, and tailored services to help accelerate sector growth.”

According to the Technology Investment Network, the top 200 New Zealand tech companies generated the second largest source of offshore revenue after dairy. The industry is also growing faster than any other in New Zealand and offers salaries around 30% higher than the New Zealand average.

“Technology Industries continue to be an increasingly important part of the New Zealand economy. Every year, we see more of our country’s tech companies succeed on the world stage and BNZ remains committed to assist wherever possible”, says Mr Wixon.

BNZ is ambitious in its support for technology companies in New Zealand, launching a range of innovative solutions in recent years to assist the sector, including Contracted Receivables Financing, Revenue Based Financing for SaaS businesses, and Project Scale Up, which provide high-potential and high-growth technology businesses with access to non-dilutive capital.

The new Tech Business Hub complements these offerings, underscoring BNZ’s commitment to fostering a vibrant homegrown tech ecosystem.

Tech Business Hub Team Manager – Figo Liu – says, “Tech businesses require banking partners who speak their language and understand their journey. Our goal is to nurture the tech and startup ecosystem by making it easier to start a business and grow.”

With the Tech Business Hub now up and running, BNZ is turning its attention to further ways that it can support tech businesses at all stages of their lifecycle.

“We believe that New Zealand’s tech sector has enormous potential, and we want to do everything we can to help these businesses succeed,” says Mr Wixon. “The BNZ Tech Business Hub is the next step in our commitment to this important part of our economy, and we look forward to working closely with tech entrepreneurs and innovators to help them achieve their goals.”

The post BNZ launches Tech Business Hub to empower early-stage technology businesses appeared first on BNZ Debrief.

MIL OSI Analysis –

MIL-OSI Australia: General anti-avoidance rules and PSI

Source: Australian Department of Revenue

Overview of general anti-avoidance rules

This information is relevant to you if both of the following apply:

you receive personal services income (PSI) as a sole trader or through your company, partnership or trust
the PSI rules don’t apply to your income because you are carrying on a personal services business (PSB).

The PSI rules were introduced to prevent the diverting, alienating or splitting of income with other individuals or entities in an attempt to pay less tax.

The general anti-avoidance rules (GAAR) may still apply if you are a PSB and the PSI rules don’t apply. For the GAAR to apply to your arrangement, there must be a sole or dominant purpose to obtain a tax benefit.

When the GAAR may apply

The GAAR may apply where there are factors indicating that the dominant purpose of the arrangement is to obtain a tax benefit by diverting, alienating or splitting your PSI or retaining profits in your lower-taxed company, partnership or trust (being an interposed entity).

In deciding whether the PSB has engaged in income splitting to gain a tax benefit, the following considerations may be relevant:

Whether the salary or wages paid to you is commensurate with
- the skills you exercised or services you provided, and
- the income received by the PSB for your services.
Remuneration commensurate to the value of your services will generally be the gross amount received by the PSB for your services, less allowable deductions (other than deductions associated with non PSI income of the PSB or income splitting).
Whether the PSB distributes income to associates and does not distribute income to you, the individual who provided the actual services.
Whether the salary or wages paid to associates by the sole trader or PSB is not commensurate with
- the skills exercised and services provided by the associate, and
- the income received by the sole trader or PSB is for services performed by the individual (which is different to income being generated by assets of an interposed entity).

Examples include if you:

use a company, partnership, or trust to retain profits from your PSI
divert, alienate or split your PSI with an associate – which reduces your overall income tax liability, or
create an entitlement to deductions which would not be available to an individual providing the same services as an employee.

Example: when the GAAR may apply

Jason provides services as a computer analyst through his trust, JB Trust. Jason’s wife and children are also beneficiaries of JB Trust. The contract price for Jason’s services is $120,000.

Through the income year, Jason is paid a salary of $50,000 by JB Trust to perform his services. JB Trust also incurs $25,000 of deductions. The balance of $45,000 is distributed to Jason’s wife and children, who are in the lowest marginal tax rate.

The JB Trust self-assesses as a PSB due to passing the results test. The PSI rules don’t apply to the income. The GAAR may apply to the arrangement JB Trust has in place, as Jason may be obtaining a tax benefit by splitting the income with his associates.

If the GAAR applied, then the tax benefits would be cancelled. This is done by making a determination, and relevant amounts would be deemed to be included in Jason’s assessable income.

End of example

The GAAR Panel advises on the application of the GAAR to particular arrangements.

Draft Practical Compliance Guideline (PCG 2024/D2)

A draft Practical Compliance Guideline (PCG 2024/D2) is currently being finalised. The draft Guideline outlines the types of alienation arrangements that we consider to be of ‘low’ or ‘higher’ risk of the general anti-avoidance provisions of income tax law (Part IVA) applying and the likelihood of us reviewing those arrangements.

For more information, visit PCG 2024/D2 Personal services businesses and Part IVA of the Income Tax Assessment Act 1936.

MIL OSI News –

MIL-OSI: BlackRock® Canada Announces October Cash Distributions for the iShares® ETFs

Source: GlobeNewswire (MIL-OSI)

TORONTO, Oct. 21, 2024 (GLOBE NEWSWIRE) — BlackRock Asset Management Canada Limited (“BlackRock Canada”), an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE: BLK), today announced the October 2024 cash distributions for the iShares ETFs listed on the TSX or Cboe Canada which pay on a monthly basis. Unitholders of record of a fund on October 28, 2024 will receive cash distributions payable in respect of that fund on October 31, 2024.

Details regarding the “per unit” distribution amounts are as follows:

Fund Name	Fund Ticker	Cash Distribution Per Unit
iShares 1-10 Year Laddered Corporate Bond Index ETF	CBH	$0.049
iShares 1-5 Year Laddered Corporate Bond Index ETF	CBO	$0.050
iShares S&P/TSX Canadian Dividend Aristocrats Index ETF	CDZ	$0.109
iShares Equal Weight Banc & Lifeco ETF	CEW	$0.059
iShares 1-5 Year Laddered Government Bond Index ETF	CLF	$0.032
iShares 1-10 Year Laddered Government Bond Index ETF	CLG	$0.037
iShares S&P/TSX Canadian Preferred Share Index ETF	CPD	$0.055
iShares US Dividend Growers Index ETF (CAD-Hedged)	CUD	$0.074
iShares Convertible Bond Index ETF	CVD	$0.074
iShares Global Monthly Dividend Index ETF (CAD-Hedged)	CYH	$0.076
iShares Canadian Financial Monthly Income ETF	FIE	$0.040
iShares U.S. Aggregate Bond Index ETF	XAGG	$0.101
iShares U.S. Aggregate Bond Index ETF⁽¹⁾	XAGG.U	$0.073
iShares U.S. Aggregate Bond Index ETF (CAD-Hedged)	XAGH	$0.088
iShares Core Canadian Universe Bond Index ETF	XBB	$0.079
iShares Core Canadian Corporate Bond Index ETF	XCB	$0.069
iShares ESG Advanced Canadian Corporate Bond Index ETF	XCBG	$0.119
iShares U.S. IG Corporate Bond Index ETF	XCBU	$0.114
iShares U.S. IG Corporate Bond Index ETF⁽¹⁾	XCBU.U	$0.083
iShares Core MSCI Global Quality Dividend Index ETF	XDG	$0.082
iShares Core MSCI Global Quality Dividend Index ETF⁽¹⁾	XDG.U	$0.059
iShares Core MSCI Global Quality Dividend Index ETF (CAD-Hedged)	XDGH	$0.059
iShares Core MSCI Canadian Quality Dividend Index ETF	XDIV	$0.104
iShares Core MSCI US Quality Dividend Index ETF	XDU	$0.058
iShares Core MSCI US Quality Dividend Index ETF⁽¹⁾	XDU.U	$0.042
iShares Core MSCI US Quality Dividend Index ETF (CAD-Hedged)	XDUH	$0.053
iShares Canadian Select Dividend Index ETF	XDV	$0.112
iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged)	XEB	$0.054
iShares S&P/TSX Composite High Dividend Index ETF	XEI	$0.109
iShares Core Canadian 15+ Year Federal Bond Index ETF	XFLB	$0.110
iShares Flexible Monthly Income ETF	XFLI	$0.185
iShares Flexible Monthly Income ETF⁽¹⁾	XFLI.U	$0.134
iShares Flexible Monthly Income ETF (CAD-Hedged)	XFLX	$0.185
iShares S&P/TSX Capped Financials Index ETF	XFN	$0.142
iShares Floating Rate Index ETF	XFR	$0.074
iShares Core Canadian Government Bond Index ETF	XGB	$0.049
iShares Global Government Bond Index ETF (CAD-Hedged)	XGGB	$0.038
iShares Canadian HYBrid Corporate Bond Index ETF	XHB	$0.073
iShares U.S. High Dividend Equity Index ETF (CAD-Hedged)	XHD	$0.083
iShares U.S. High Dividend Equity Index ETF	XHU	$0.078
iShares U.S. High Yield Bond Index ETF (CAD-Hedged)	XHY	$0.083
iShares U.S. IG Corporate Bond Index ETF (CAD-Hedged)	XIG	$0.063
iShares 1-5 Year U.S. IG Corporate Bond Index ETF (CAD-Hedged)	XIGS	$0.102
iShares Core Canadian Long Term Bond Index ETF	XLB	$0.062
iShares S&P/TSX North American Preferred Stock Index ETF (CAD-Hedged)	XPF	$0.066
iShares High Quality Canadian Bond Index ETF	XQB	$0.053
iShares S&P/TSX Capped REIT Index ETF	XRE	$0.059
iShares ESG Aware Canadian Aggregate Bond Index ETF	XSAB	$0.047
iShares Core Canadian Short Term Bond Index ETF	XSB	$0.073
iShares Conservative Short Term Strategic Fixed Income ETF	XSC	$0.056
iShares Conservative Strategic Fixed Income ETF	XSE	$0.054
iShares Core Canadian Short Term Corporate Bond Index ETF	XSH	$0.060
iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF	XSHG	$0.116
iShares 1-5 Year U.S. IG Corporate Bond Index ETF	XSHU	$0.118
iShares 1-5 Year U.S. IG Corporate Bond Index ETF⁽¹⁾	XSHU.U	$0.085
iShares Short Term Strategic Fixed Income ETF	XSI	$0.061
iShares ESG Aware Canadian Short Term Bond Index ETF	XSTB	$0.047
iShares 0-5 Year TIPS Bond Index ETF (CAD-Hedged)	XSTH	$0.048
iShares 0-5 Year TIPS Bond Index ETF	XSTP	$0.053
iShares 0-5 Year TIPS Bond Index ETF⁽¹⁾	XSTP.U	$0.038
iShares 20+ Year U.S. Treasury Bond Index ETF (CAD-Hedged)	XTLH	$0.109
iShares 20+ Year U.S. Treasury Bond Index ETF	XTLT	$0.110
iShares 20+ Year U.S. Treasury Bond Index ETF⁽¹⁾	XTLT.U	$0.080
iShares Diversified Monthly Income ETF	XTR	$0.040
iShares S&P/TSX Capped Utilities Index ETF	XUT	$0.081

⁽¹⁾ Distribution per unit amounts are in U.S. dollars for XAGG.U, XCBU.U, XDG.U, XDU.U, XFLI.U, XSHU.U, XSTP.U, XTLT.U

Estimated October Cash Distributions for the iShares Premium Money Market ETF

The October cash distributions per unit for the iShares Premium Money Market ETF are estimated to be as follows:

Fund Name	Fund Ticker	Estimated Cash Distribution Per Unit
iShares Premium Money Market ETF	CMR	$0.195

BlackRock Canada expects to issue a press release on or about October 25, 2024, which will provide the final amounts for the iShares Premium Money Market ETF.

Further information on the iShares Funds can be found at http://www.blackrock.com/ca.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit http://www.blackrock.com/corporate | Twitter: @BlackRockCA

About iShares ETFs

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1400+ exchange traded funds (ETFs) and US$4.2 trillion in assets under management as of September 30, 2024, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

iShares^® ETFs are managed by BlackRock Asset Management Canada Limited.

Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”). Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). TSX is a registered trademark of TSX Inc. (“TSX”). All of the foregoing trademarks have been licensed to S&P Dow Jones Indices LLC and sublicensed for certain purposes to BlackRock Fund Advisors (“BFA”), which in turn has sub-licensed these marks to its affiliate, BlackRock Asset Management Canada Limited (“BlackRock Canada”), on behalf of the applicable fund(s). The index is a product of S&P Dow Jones Indices LLC, and has been licensed for use by BFA and by extension, BlackRock Canada and the applicable fund(s). The funds are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, any of their respective affiliates (collectively known as “S&P Dow Jones Indices”) or TSX, or any of their respective affiliates. Neither S&P Dow Jones Indices nor TSX make any representations regarding the advisability of investing in such funds.

MSCI is a trademark of MSCI, Inc. (“MSCI”). The ETF is permitted to use the MSCI mark pursuant to a license agreement between MSCI and BlackRock Institutional Trust Company, N.A., relating to, among other things, the license granted to BlackRock Institutional Trust Company, N.A. to use the Index. BlackRock Institutional Trust Company, N.A. has sublicensed the use of this trademark to BlackRock. The ETF is not sponsored, endorsed, sold or promoted by MSCI and MSCI makes no representation, condition or warranty regarding the advisability of investing in the ETF.

Contact for Media:
Reem Jazar
Email: reem.jazar@blackrock.com

MIL-OSI USA: Warren, Wyden, Blumenthal, Porter Call on DOJ to Prosecute Tax Prep Companies for Illegally Sharing Sensitive Personal and Financial Taxpayer Data

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren

October 22, 2024

Treasury, IRS assessment confirm 2023 Congressional investigation finding that companies broke the law by sharing sensitive data with Big Tech firms.

Tax prep companies potentially face billions of dollars in criminal liability.

“DOJ has the sole authority to enforce the criminal statute on behalf of the millions of taxpayers harmed by this unauthorized disclosure of their sensitive personal and financial data.”

Text of Letter (PDF)

Washington, D.C. – U.S. Senators Elizabeth Warren (D-Mass.), Ron Wyden (D-Ore.), Chair of the Senate Committee on Finance, and Richard Blumenthal (D-Conn.), along with Representative Katie Porter (D-Calif.) wrote to the Department of Justice (DOJ) urging the investigation and prosecution of major tax preparation companies for illegally sharing protected and sensitive taxpayer information with Big Tech firms.

Last month, the Treasury Inspector General for Tax Administration (TIGTA) released an audit report confirming that four online tax preparation companies broke the law by sharing legally protected and sensitive taxpayer information with Big Tech firms without taxpayer consent. Specifically, the report found that consent statements being used by the tax prep companies did not clearly identify the intended use of taxpayer data, a violation of Treasury regulations. The IRS agreed with TIGTA’s assessment. The report confirms November 2022 investigative reporting by the Markup and the results of a July 2023 Congressional investigation, led by Senator Warren, which found that the improper sharing of sensitive taxpayer personal and financial information by TaxSlayer, H&R Block, TaxAct, and Ramsey Solutions with Meta and Google appeared to be illegal.

Tax prep companies used pixels, computer code that tracks a user’s website activity, to obtain sensitive personal and financial information, including approximate income and refund amounts, for millions of taxpayers who filed their taxes online with these companies. Meta then used that information for advertising and to train its AI algorithm.

TIGTA conducted a detailed review of four tax preparation companies, and found that the companies did not obtain proper taxpayer consent for the release of their information.

“We write to urge you to investigate and prosecute the criminal behavior of major tax preparation companies identified in our investigation and confirmed by the Treasury Inspector General for Tax Administration and the Internal Revenue Service,” wrote the lawmakers. The penalties for these violations can include $1,000 per violation and up to 1 year in prison. TIGTA itself notes that it “reports potential criminal violations directly to the Department of Justice when TIGTA deems that it is appropriate to do so.”

The IRS recently announced the expansion of the highly successful Direct File program to 24 total states, making 30 million taxpayers eligible to file for free, securely, and directly with the IRS. However, many taxpayers still rely on private tax prep companies.

“Accountability for these tax preparation companies – who disclosed millions of taxpayers’ tax return data…is essential for protecting the rule of law and the privacy of taxpayers,” concluded the lawmakers.

Senator Warren has been at the forefront of holding tax prep firms and Big Tech accountable for their behavior, and pushed for an easy and free IRS Drect File program:

In May 2024, Senators Elizabeth Warren and Tom Carper (D-Del.), along with Representatives Don Beyer (D-Va.), Katie Porter (D-Calif.), and Brad Sherman (D-Calif.) led over 130 lawmakers in sending a letter to the Secretary of the Treasury Janet Yellen and IRS Commissioner Daniel Werfel, applauding the successful pilot of the Direct File program, and urging them to make it permanent and expand its functionality and scope.
In June 2023, Senators Elizabeth Warren and Tom Carper (D-Del.), along with Representatives Brad Sherman (D-Calif.), Katie Porter (D-Calif.), and Don Beyer (D-Va.) led a coalition of 99 Democratic lawmakers in sending a letter to IRS Commissioner Daniel Werfel and Deputy Treasury Secretary Adewale Adeyemo, applauding the IRS’ announcement of a pilot of a free tax filing tool next year.
In April 2023, Senators Elizabeth Warren and Tom Carper (D-Del.) led their colleagues in sending a letter to IRS Commissioner Daniel Werfel urging the agency to simplify the tax process and broaden access to free e-filing options.
In April 2023, at a hearing of the Senate Finance Committee, Senator Elizabeth Warren questioned IRS Commissioner Daniel Werfel about the IRS’s failed Free-File partnership with private tax preparation software companies and called on the agency to implement a direct E-File program that will be truly free and easy for millions of Americans.
- Commission Werfel agreed with Senator Warren that the gap between the 70% of taxpayers that Free File is supposed to serve and the 2% it actually does is “massive.” When Senator Warren pointed out that tax prep companies are instead pushing alternative services that should be free, are marketed as free, but are not, Commissioner Werfel also agreed that “the whole process needs to be improved,” that taxpayer rights have been violated, and the IRS has an obligation to make “the tax system easier for taxpayers to navigate.”
In March 2023, Senators Warren and Angus King (I-Maine) wrote a letter with 19 other senators to the Internal Revenue Service and Secretary Yellen expressing strong support for Secretary Yellen’s directive for the IRS not to raise audit rates for small businesses or households making under $400,000 annually.
In December 2022, Senators Warren and Ron Wyden (D-Ore.), along with Representatives Katie Porter (D-Calif.) and Brad Sherman (D-Calif.) sent letters to tax preparation companies H&R Block, TaxAct, and TaxSlayer, plus big tech firms Meta, and Google, amid reports that the tax preparation companies have been secretly transmitting individual taxpayers’ sensitive financial information to Meta and Google.
In July 2022, Senator Elizabeth Warren led 22 of her colleagues in introducing the Tax Filing Simplification Act of 2022 to simplify the tax filing process for millions of Americans by lowering costs, eliminating red tape for all taxpayers, and saving them hours and hundreds of dollars.
During an exchange of the United States Senate Finance Committee in June 2022, U.S. Treasury Secretary Janet Yellen agreed with Senator Elizabeth Warren on the need to create a free tax filing system that actually works for Americans.

MIL-OSI USA: Congresswoman Tenney’s Office Holds District-Wide Constituent Services Day

Source: United States House of Representatives – Congresswoman Claudia Tenney (NY-22)

Oswego, New York — Congresswoman Claudia Tenney (NY-24) announced that her office will be hosting a district-wide day of constituent services, offering personalized federal casework assistance across six of the 12 counties in New York’s 24th District.

Staff from Tenney’s office will be available to help constituents with a variety of issues related to federal agencies, including the Department of Veterans Affairs, Social Security Administration, Internal Revenue Service, and Passport Agency.

For those interested in attending these mobile office hours or seeking more information, please contact one of Tenney’s district offices. The offices in Lockport (716-514-5130), Victor (585-869-2060), and Oswego (315-236-7088) are open Monday through Friday, from 9:00 am to 5:00 pm.

Mobile office hours will be available at the following times and locations on October 24, 2024:

Orleans County
10 AM – 12 PM
Clarendon Town Hall
16385 Church Street, Clarendon, New York 14429

Livingston County
1 PM – 3 PM
Conesus Town Hall – 2nd Floor
6210 South Livonia Road, Conesus, New York 14435

Jefferson County
9 AM – 11 AM
Adams Town Hall
3 S. Main Street, Adams, New York, 13605

Wayne County
12:30 PM – 2PM
Town of Wolcott Town Hall
6070 Lake Avenue, Wolcott, New York 14590

Cayuga County
3 PM – 4:30 PM
Town of Cato Town Hall
11320 Short Cut Road, Cato, New York 13033

Seneca County
2 PM – 4:30 PM
Waterloo Town Hall
66 Virginia Street, Waterloo, New York 13165

###

MIL-OSI United Kingdom: Defence Secretary oral statement on war in Ukraine – 22 October 2024

Source: United Kingdom – Executive Government & Departments

Defence Secretary John Healey, provided an update to the House of Commons on the war in Ukraine.

Location:: House of Commons
Delivered on:: 22 October 2024

Mr Speaker, I have just returned from three days of intense defence diplomacy.

First, at the NATO Defence Ministers meeting in Brussels where we welcomed President Zelenskyy and then, at the G7 Defence Ministers meeting in Naples where we had important updates from the battlefield, agreed this is a critical point in the conflict and stressed the need to step up and speed up support for Ukraine.

The G7 joint declaration strongly condemned Putin’s illegal invasion and reinforced our unwavering support for Ukraine. It also rightly stated:

“Russia’s aggression against Ukraine is posing a threat to international security, the purposes and principles of the United Nations, and the rules-based international order.”

This is what’s at stake for us all. And if President Putin prevails in Ukraine, he will not stop at Ukraine. And if big nations redraw international boundaries by force, the sovereignty and security of all nations is undermined.

That’s why the UK support, alongside allies, is so important. Military, economic, industrial, diplomatic.

But I can tell the House, Mr Speaker, I have returned to the UK knowing that NATO is united for Ukraine. The G7 is united for Ukraine. Just as the UK is united for Ukraine.

And our job now is to turn these talks into action, which is exactly what we are doing as a government. So, the Chancellor and I are today are announcing that the UK will provide an additional £2.26bn to Ukraine

This is new money, new money which will be delivered under the Extraordinary Revenue Acceleration Loans to Ukraine scheme. That’s part of the $50 billion loan package from G7 countries to support Ukraine’s military, budget, and reconstruction needs.

Loans, Mr Speaker, which will be repaid using the profits generated from immobilised Russian sovereign assets. Profits on frozen Russian money, supporting Ukraine’s fight against Putin. Turning the proceeds of Putin’s corrupt regime against that regime and putting it in the hands of Ukrainians.

And Mr Speaker, I want to be clear: Today’s new money is additional to the £3bn a year of military support this Government has committed to Ukraine each year for as long as it takes.

In addition to the £3.5bn Defence Industrial Support Treaty which I signed with Defence Minister Umerov in July, money that will be used by Ukraine to procure military equipment from British companies, boosting our British jobs and our British industry. And extra to the additional artillery, air defences, ammunition, and missiles we have announced in the first four months of this new Government.

Ukraine is a first order priority for me as Defence Secretary, it’s a first order priority for this Government. We will continue to step up support. We will continue to lead. We will stand with Ukraine as long as it takes.

Mr Speaker, today is now day 973 since Putin launched his full scale, illegal invasion of Ukraine. 973 days during which Ukrainians have been fighting with great courage – civilians and military alike. And there have been important battlefield developments in recent weeks. When I last updated the House, Ukrainian forces were one month into their remarkable offensive in Kursk.

Three months on, they continue to hold Russian territory and Ukraine’s strategic surprise has put Putin under pressure, forcing the diversion of some Russian troops and equipment.

And despite the increase in brutal Russian counter attacks and aerial bombardments, they have so far failed to dislodge that Ukrainian incursion. And it’s not just in Kursk where Ukraine is fighting back.

Ukrainian forces have launched long range attacks into Russian territory on military targets which are directly supporting Putin’s illegal invasion.

In September, Ukraine used long range drones to attack four ammunition storage facilities. These strikes successfully destroyed thousands of tonnes of ammunition.

Both the defensive thrust into Kursk, and the strategic defensive strikes into Russia, have had an impact on the battlefield.

Russia’s advance towards Pokrovsk in the East – Putin’s main line of effort – has been slowed. Russian losses continue to rise. Since the start of the conflict, Russia has likely suffered 675,000 casualties.

In September, the average casualty rate each date of Russians on the battlefield of Ukraine was 1271 – a record high and two and a half times the level this time last year.

And on equipment, Mr Speaker, they have now lost 3,400 tanks, 8,500 armoured vehicles and 26 Russian vessels in the Black Sea fleet have been destroyed or damaged.

But despite the incredible resilience Ukrainian forces have shown, they remain under great pressure from Russian forces across multiple fronts, and Russian troops continue to advance and continue to attack Ukraine infrastructure. Targeting the important port of Odessa and striking energy infrastructure.

So as we head into winter, Mr Speaker, Ukraine’s energy generation capacity has been reduced by up to two thirds of that of pre-war levels. Russian industry remains on a war footing. Russian artillery is outfiring Ukraine by at least 3 to 1, and Russia is also conscripting this year an additional 400,000 troops.

Defence will now account for 32%, one third of the total government budget in Russia next year.

And, Mr Speaker, in a concerning new development, it is now highly likely that the transfer and deployment of hundreds of combat troops from North Korea to Russia has begun. North Korean soldiers supporting Russia’s war of aggression on European soil – it is as shocking as it is desperate.

North Korea already sends significant munitions and arms to Russia in direct violation of multiple UN resolutions. And this developing military cooperation between Russia and DPRK has serious security implications for Europe and the Indo-Pacific.

It represents a wider growing alliance of aggression which NATO and the G7 nations must confront.

Mr Speaker, despite this dangerous development, Ukraine remains determined to fight on their frontline in the East and holding the territory in Kursk. President Zelensky will also continue to seek support for his Victory Plan, and we want to see this Plan succeed. We stand ready to work closely with the Ukrainians and with allies to make it succeed.

Mr Speaker, as we approach 1000 days of this war, this conflict is now at a really critical moment. And that’s why the UK continues to step up support for Ukraine.

Ukrainians are fighting to regain their sovereign territory, but they are also fighting to protect the peace, the democracy and the security for the rest of us in Europe.

Published 22 October 2024

Invasion of Ukraine

MIL OSI United Kingdom –

MIL-OSI New Zealand: Retirement Commission – NEW FINANCIAL EDUCATION PARTNERSHIP HELPS RANGATAHI LEARN ABOUT MONEY

Source: Retirement Commission

Te whai hua – kia ora, Sorted in Schools, Inland Revenue and School Kit have joined forces to bring more innovative new learning resources to teach high school students about money.

Newly designed interactive resource packs on tax and compound interest will be sent to around 13,000 year 9 and 10 students throughout New Zealand over the next 12 months.

Te Ara Ahunga Ora Retirement Commission Learning Lead, Yasmin Frazer says this partnership extends the reach of Te whai hua – kia ora, Sorted in Schools, the Retirement Commission’s free financial education programme.

“It’s critical the next generation of New Zealanders can access financial knowledge through the education system, and this provides teachers further resources to engage their students with money,” she says.

“We have been providing resources and upskilling teachers and Kaiako through our Te whai hua – kia ora, Sorted in Schools programme since 2019, with 89% of New Zealand schools and kura now using it.

“Partnering with School Kit has meant we can offer more ways to teach kids about money as well as supporting us to support more teachers to learn more about financial education themselves.”

The kits can be incorporated into a variety of subjects, comprising English, Math, Business or Social Studies and combine a mix of digital and physical resources including encouraging use of the practical tools available on the Sorted website.

The tax focused kit teaches students about tax in a way that is compelling and meaningful so they can hit the ground running when they start working, it also delves into how it contributes to areas like health and education.

Inland Revenue Te Tari Taake Community Compliance Leader, Cy Lochead says, “We want everyone in New Zealand Aotearoa to understand how tax works and what it’s used for, as it’s an important part of our working lives.”

“Partnering with Te Ara Ahunga Ora to develop financial literacy through the education system has created an opportunity to develop that understanding right from the start.

“We’re excited to see the School Kit released, creating new opportunities to engage with the taxation module content.”

Notes:

About Te whai hua – kia ora, Sorted in Schools

Te Ara Ahunga Ora Retirement Commission launched Te whai hua – kia ora, Sorted in Schools in 2019, which now has 78% New Zealand secondary schools and 81% of kura taking part.

It is the first government-backed financial education programme fully aligned with the curriculum, so can be taught as part of day-to-day classes in subjects as diverse as maths, social sciences, technology, English and even health. The resources cover topics ranging from debt and money management to KiwiSaver and insurance and include learning and assessment materials for NCEA unit and achievement standards.

More than 300 resources, designed by teachers for teachers, are already available through the website sortedinschools.org.nz, and we deliver free professional development workshops and webinars to help teachers feel confident to teach the subject. Ask your secondary school if you haven’t seen them using it.

In 2022/23 68% of schools and kura have used Te whai hua – kia ora and 97% of teachers value Te whai hua – kia ora as a financial capability programme they like to use. And it’s all free.

MIL OSI New Zealand News –

MIL-OSI USA: SCHNEIDER INTRODUCES THE EXPANDING CLEAN FUEL PRODUCTION ACT

Source: United States House of Representatives – Representative Brad Schneider (D-IL)

LINCOLNSHIRE, IL — Congressman Brad Schneider (IL-10), with Reps. Dan Kildee (MI-08) and Julia Brownley (CA-26), introduced today the Expanding Clean Fuel Production Act which would extend for ten years the Section 45Z clean fuel production credit.

The Inflation Reduction Act created the clean fuel production credit (CFPC) for transportation fuel with zero or low greenhouse gas emissions, including sustainable aviation fuel (SAF). This credit currently expires at the end of 2027 and this bill would extend it for ten additional years, making the credit available through 2037.

“I’m proud to introduce this legislation with Reps. Kildee and Brownley to extend the SAF credit, boost production of clean fuels and position the U.S. as a global leader in production and use of sustainable fuels,” said Rep. Schneider. “A ten-year extension would allow for sustained investment in production to accelerate the transition to cleaner fuels and to significantly cut greenhouse gas emissions from the aviation industry, in particular. We are already seeing the impact of the Inflation Reduction Act’s investments on U.S. production of sustainable fuels.”

Schneider authored the tax credit for the production of SAF which was included in the Inflation Reduction Act in 2022 and aims to halve carbon emissions in the aviation sector.

The credit was inspired by a SAF credit included in the Sustainable Skies Act, which Rep. Schneider authored with Reps. Kildee and Brownley in 2021. The credit was ultimately enacted in the Inflation Reduction Act in 2022, will transition into the CFPC in 2025, and will expire in 2027. SAF producers are eligible for a tax credit of $1.25 to $1.75 per gallon.

“The 45z tax credit has been critical in helping to ramp up U.S. production of sustainable aviation fuel,” said Rep. Brownley. “However, we needed to extend the credit long-term to provide market certainty and to ensure a safe and reliable supply of SAF to meet the needs of the aviation industry. I appreciate Congressman Schneider and Congressman Kildee’s partnership on this bill, and I look forward to working with stakeholders in the environmental, energy, and aviation community to extend the 45z credit and promote U.S. investment in this critical domestic fuel source.”

“In my home state of Michigan, we have already seen the harmful effects of climate change on our Great Lakes,” said Rep. Kildee. “This legislation will help us continue producing clean energy and fuels here in the United States, to help create good paying jobs, provide new markets to Michigan farmers, and reduce carbon emissions from airplanes and other vehicles,”

“As the leading U.S. airline in SAF use and advocacy, we know that extending incentives for U.S. SAF producers by a full ten years is a necessary first step to grow the industry,” said Lauren Riley, Chief Sustainability Officer for United Airlines. “The continued leadership of Representatives Schneider, Kildee and Brownley is helping to assure U.S. competitiveness in SAF and clean fuels, while boosting U.S. agricultural producers and rural communities. We look forward to working with Representatives Schneider, Kildee and Brownley and their colleagues on both sides of the aisle to ensure that this tax credit is both extended and enhanced in a way that will maximize investment in SAF and other clean, low-carbon fuels.”

“Sustainable Aviation Fuel (SAF) is the single most important method to decarbonize aviation in the coming decades, and LanzaJet applauds the leadership of Representatives Schneider, Kildee, and Brownley in advancing SAF tax incentives that will catalyze domestic investment in this critical sector,” said Jimmy Samartzis, LanzaJet CEO. “As the original sponsors of the IRA’s SAF Blender’s Tax Credit via the Sustainable Skies Act, Reps Schneider, Kildee, and Brownley continue to lay the foundation for a vibrant U.S. SAF industry by providing for ten years of policy certainty for domestic SAF producers via this important bill. We look forward to continuing to work with Representatives Schneider, Kildee, and Brownley to develop policy proposals that will both extend and enhance the IRA’s short term SAF tax credits and enable achievement of the goals of the SAF Grand Challenge.”

“We applaud Representative Schneider and his colleagues Representatives Kildee and Brownley for their efforts to extend incentives for SAF,” said Alison Graab, Executive Director of the SAF Coalition. “We look forward to working with them on both an extension as well as enhancing and strengthening the incentive. Advancing sustainable aviation fuel demonstrates a clear commitment to the environmental and economic promises SAF holds, and incentives that are durable and attract investment are essential to unlocking that potential and driving the progress needed to sustain and grow the SAF industry.”

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MIL-OSI USA: Congresswoman Bonnie Watson Coleman Holds Town Hall in North Brunswick

Source: United States House of Representatives – Congresswoman Bonnie Watson Coleman

October 22, 2024

Yesterday, Congresswoman Bonnie Watson Coleman held a town hall to hear from neighbors and share updates about her work in Congress and the District on behalf of New Jersey’s 12th Congressional District constituents.

Congresswoman Watson Coleman began the town hall by discussing her work on gun violence prevention, healthcare access, and defending reproductive rights and democracy.

The Congresswoman also discussed her efforts in the Appropriations Committee to bring back over $31.7 million to the 12^th District for important infrastructure projects like the North Brunswick Safety Access Road, upgrades to Route 522, and enhancements to the Veterans Memorial Bridge connecting South River and Sayreville.

She also answered questions from constituents about background checks for gun purchases, assistance to veterans, bringing back the State and Local Tax (SALT) deduction, and how we can bring the country together and unite around our common values.

MIL-OSI USA: Houlahan Receives Re-Opening Plan from IRS After Demanding Answers on Reading Office Closure

Source: United States House of Representatives – Representative Chrissy Houlahan (D-PA)

Houlahan Receives Re-Opening Plan from IRS After Demanding Answers on Reading Office Closure

Reading, October 22, 2024

READING, PA – Today, Representative Chrissy Houlahan (D-PA) announced that the Internal Revenue Service shared a re-opening plan for its Reading, PA Taxpayer Assistance Center (TAC) that has been closed since early July. The TAC is currently open for taxpayer services three days a week and, starting December 30th, the IRS expects it will resume full five-day service.

In July, Houlahan sent a letter to IRS Commissioner Danny Werfel sharing her concern about the extended closure of the Taxpayer Assistance Center in Reading. This center, located just one floor below Houlahan’s own district office, provides vital services and accessibility to her constituents in Pennsylvania’s Sixth Congressional District.

In her letter, Houlahan emphasized the importance of the Reading TAC to the community and the need for in-person services for people who cannot access tax law assistance over the phone. “As you know, in-person services are critical for disadvantaged, older, or disabled individuals who may be unable to access these services online or over the phone. In-person assistance is especially necessary in the City of Reading, where the poverty rate is 29.4% and nearly 20% of residents live with a disability. I urge you to re-open the Reading TAC as soon as possible,” wrote Houlahan.

In September, Houlahan received a response from Commissioner Werfel, who stated that the closure occurred due to the attrition of two employees. Werfel also shared that the IRS was enlisting the help of employee volunteers to resume three-day service until the office is fully staffed and the agency’s commitment to opening the office as soon as feasibly possible. “I appreciate Commissioner Werfel’s response and transparency regarding the center’s re-opening. I am grateful that my letter brought eyes, attention, and prioritization to the importance of the in-person Taxpayer Assistance Center in Reading,” said Houlahan.

Additionally, members of Houlahan’s team have met with IRS staff on multiple occasions to discuss the center’s re-opening. The recent updates from the IRS are as follows:

A temporary employee is present at the Reading TAC to meet with taxpayers three days a week. Hours of operation are Tuesday: 10:30 a.m. to 4:30 p.m., Wednesday: 8:30 a.m. to 4:30 p.m., and Thursday: 8:30 a.m. to 2 p.m.

Houlahan is an Air Force veteran, an engineer, a serial entrepreneur, an educator, and a nonprofit leader. She represents Pennsylvania’s 6th Congressional District, which encompasses Chester County and southern Berks County. She serves on the House Armed Services Committee and the House Permanent Select Committee on Intelligence. She is the recipient of the U.S. Chamber of Commerce’s Abraham Lincoln Leadership for America Award which “recognizes members who demonstrate the bipartisan leadership and constructive governing necessary to move our country forward” and the Congressional Management Foundation’s 2022 Democracy Award for best Constituent Services in Congress.

MIL-OSI United Kingdom: Jersey adopts legislation to implement Pillar 2 from 202522 October 2024 Ministers have welcomed the decision of the States Assembly to unanimously adopt legislation to implement a Pillar 2 Income Inclusion Rule and a multinational corporate income tax from 2025, fulfilling… Read more

Source: Channel Islands – Jersey

22 October 2024

Ministers have welcomed the decision of the States Assembly to unanimously adopt legislation to implement a Pillar 2 Income Inclusion Rule and a multinational corporate income tax from 2025, fulfilling Jersey’s commitment to enact the OECD’s global minimum tax framework for large in-scope multinational groups.

For accounting periods starting on or after 1 January 2025, in-scope Jersey companies and branches of multinational groups will pay an effective rate of 15% on their Jersey profits under the new Multinational Corporate Income Tax (MCIT). Jersey’s MCIT applies the OECD Model Rules and takes account of certain instances of double taxation.

Jersey will also impose a top-up tax on low-taxed profits outside of the Island under the OECD’s Pillar 2 Income Inclusion Rule (IIR) but will not apply the Undertaxed Profits Rule (UTPR).

Jersey has a long-standing corporate income tax regime and Revenue Jersey is well resourced to deal with the roll out of Pillar 2. Over 95% of Jersey companies will be unaffected by this Pillar 2 legislation and will remain within the existing Jersey income tax regime.

Jersey’s Minister for Treasury & Resources, Deputy Elaine Millar, said: “The Government is committed to providing an internationally competitive business environment in Jersey and is working with industry and the Jersey Financial Services Commission in a tri-partite Ministerial Working Group. One of the outcomes will be a new Pillar 2-compliant Qualifying Refundable Tax Credit (QRTC) regime. This regime will be effective in incentivising business growth and deepening business ties with Jersey.

“Jersey is committed to providing taxpayers with the tax certainty they need and the highest standards of customer service. We will be keeping the Pillar 2 administrative burden in Jersey as low as possible, within the boundaries of the OECD global rules.”

Jersey’s Minister for External Relations, Deputy Ian Gorst, added: “The passing of this legislation maintains Jersey’s reputation as a forward-thinking jurisdiction that is fully aligned with international tax initiatives developed by standard-setting bodies like the OECD. I am confident that Jersey is well positioned to implement this new Pillar 2 regime and maintain a globally competitive business environment for our taxpayer customers worldwide.”

Affected taxpayers and their advisers can also contact Revenue Jersey officers with any questions or requests by email at pillar2@gov.je.

MIL OSI United Kingdom –

MIL-OSI Economics: Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development

Source: International Monetary Fund

October 22, 2024

1. The G-24 expresses its deep concern over the humanitarian crises and conflicts afflicting numerous regions across the globe, resulting in loss of lives, immense suffering, forced displacement and migration for countless individuals. We call for a strong, united, multilateral approach to restore peace, stability, and livelihoods. To this end, we urge all parties to prioritize diplomacy, de-escalation, and cooperation. Furthermore, we call for robust multilateral support for recovery, reconstruction, and long-term development efforts in affected areas.

2. Global economic growth is forecast to remain relatively stable in the coming year, but risks and uncertainties persist, especially for some Emerging Markets and Developing Economies (EMDEs). Despite a projected stabilization of global growth in 2024 and 2025, the relatively optimistic forecast masks the tepid economicprospects in the most vulnerable countries. Furthermore, geopolitical tensions, trade fragmentation, increasingly frequent extreme weather conditions, and a more pronounced slowdown could pose significant headwinds to global growth and worsen some EMDEs’ prospects of as they deal with the spillover effect of Advanced Economies’ policies.

3. Although inflationary pressures are gradually easing, the outlook remains uncertain due to elevated risks. Food price inflation is declining or stabilizing, and energy prices have remained low, in part reflecting the role of the OPEC Declaration of Cooperation in safeguarding oil market stability. Though many advanced economies have successfully brought inflation back to target levels, some EMDEs are still grappling with high inflation rates. Looking ahead, trade tensions and increased policy uncertainty would contribute to heightened upside risks to inflation. Furthermore, escalating geopolitical tensions could lead to heightened volatility in food and energy prices. Given the uncertainty, central banks may likely maintain a cautious approach to monetary easing, potentially keeping interest rates high for an extended period.

4. Against this background, some EMDEs are confronted with significant challenges, as a prolonged period of elevated or slower reduction of policy rates increases external, fiscal, and financial risks. Furthermore, depreciation of some EMDE’s currencies, together with high debt and rising debt-servicing costs, is constraining fiscal space, impacting capital flows and growth, while straining financial stability. As EMDE policymakers struggle to balance sizable investment needs with fiscal sustainability, real growth could suffer.

5. Given the uncertain economic environment, the International Monetary Fund (IMF) should stand ready to fulfill its role as the center of the Global Financial Safety Net. Strengthening the international monetary system by enhancing crisis prevention and adjustment mechanisms; coordinating global stability; and providing timely, predictable, and adequate liquidity support to members facing balance of payments difficulties will contribute to a more resilient and interconnected global economy.

6. We welcome the ongoing reviews and updates of IMF procedures and policies, as this will support members. The incorporation of emerging challenges such as climate-related risks, domestic public debt, and complex debt restructuring scenarios in the review of the Low-Income Countries Debt Sustainability Framework (LIC-DSF) is welcome. However, we look forward to the comprehensive review which we hope will address the fundamental concerns about the methodology. Furthermore, the recent approval of the use of Special Drawing Rights (SDRs) for the acquisition of hybrid capital instruments by prescribed holders is a significant step forward. The approved limit of SDR15 billion could increase lending by four-fold, including through supporting the goals of G20 Global Alliance against Hunger and Poverty, the sustainable development and climate goals. We call on countries with strong external positions to voluntarily explore rechanneling SDRs, including through Multilateral Development Banks (MDBs), where legally possible, while respecting the reserve asset quality of the SDR and ensuring their liquidity.

7. Ongoing refinements to the IMF’s lending toolkit provide another opportunity to address the challenges confronting members while strengthening IMF’s financial resilience. We welcome the refinements to the Resilience and Sustainability Trust (RST), including adjustments to its design to facilitate early disbursements, eliminate dual-purpose reforms, and ensure program continuity. We look forward to further work to operationalize the RST mandate on pandemic preparedness. We also call for the comprehensive review planned for 2026 to address the remaining issues, especially with respect to the requirement of an upper credit tranche program and expansion of focus into other medium-term challenges facing EMDEs. Additionally, we welcome the completion of the review of charges and surcharges that resulted in a reduction of the cost of borrowing from the General Resource Account. The approved changes are in the right direction, but we call on the IMF to consider initiating, as soon as possible, further reforms to provide more significant reduction of surcharges, and additional cut in the margin for the rate of charge. Furthermore, we welcome the Poverty Reduction and Growth Trust (PRGT) reforms, including the increase in resources for concessional financing, and the additional boost to the subsidy resources.

8. The approval of a Third chair for Sub-Saharan Africa at the IMF Executive Board would strengthen the region’s voice, improve its representation, and simultaneously, reduce the workload of the region’s officials. Additionally, we recommend further pursuit of governance reforms in MDBs and International Financial Institutions, (IFIs), to correct the regional and gender underrepresentation in their top management and senior staff positions. We call upon all countries to complete the internal approval procedures for the 16th General Review as soon as possible. We await the result of the ongoing efforts to develop possible approaches for a new quota formula and we hope that it will serve as a guide for quota realignment that reflects members’ relative economic weight and strengthen the voice of EMDEs under the 17th General Review of Quotas. As the review is crucial for the legitimacy of the IMF, we emphasize the importance of adhering to the June 2025 deadline.

9. We welcome the progress in the implementation of the World Bank Group (WBG) Evolution Roadmap. The launch of the PortfolioGuarantee Platform, and stronger private capital mobilization efforts have the potential to help bring additional resources to support client countries in meeting their development needs. We hope that more contributions to the Livable Planet Fund would incentivize global challenge related projects across borders, and that the launch of the Grant Facility for Project Preparation Trust Fund would enhance clients’ institutional capacity in project preparations. Not only is it paramount to increase investment, but such investment must be at an affordable cost in order to ensure the debt sustainability of EMDEs as they pursue new growth strategies aligned with the Sustainable Development Goals (SDGs) and the Paris Agreement. Therefore, we look forward to a timely and successful conclusion of the 2-stage International Bank for Reconstruction and Development (IBRD) loan pricing adjustments to enhance affordability of IBRD loan.

10. International Development Association, (IDA21), replenishment will be crucial for supporting vulnerable populations, breaking the cycle of poverty, and promoting global stability. We welcome the focus on key areas of People, Planet, Prosperity, Digitalization, and Infrastructure, which are at the core of the development challenges of the Global South. Given rising external financing needs amidst declining Overseas Development Assistance and Foreign Direct Investments, we hope that the ongoing IDA21 replenishment discussions will result in a robust and impactful outcome, increasing support for LICs in real terms, supported by an expanded donor base. We call on donors to be ambitious, and to align their contributions with the scale of the challenges. It is also important to thoroughly consider the different levels of fragility before applying any adjustment to loan terms that may impact debt sustainability. While we welcome the proposed Global and Regional Opportunities Window (GROW), which aims to address regional and global challenges, such as adaptation, we call for an expanded focus on other issues that impact the Global South such as biodiversity, desertification, carbon and methane gas emissions from agricultural production, and rising sea level.

11. Considering the need for significant resources, and the misalignment of shareholding structure, the upcoming 2025 Shareholding Review for IBRD and the International Finance Corporation, (IFC), is crucial. We call on shareholders to build consensus for a speedy and successful review in line with the Lima Shareholding Principles, resulting in the increase of the voice and representation of EMDEs and ensuring a more equitable balance of voting power to improve legitimacy and effectiveness. In addition, the review should propose specific options to address misalignment.

12. We look forward to the implementation of the G20 Brazil Presidency MDB Roadmap Towards Bigger, Better, and more Effective MDBs, building on the mandate from G20 New Delhi Leaders Declaration, and based on the recommendations of the G20 Independent Experts Group. To further increase scale and impact, we call for deepening of engagement and cooperation between WBG and the MDBs with a view to operating as a system to address countries’ development priorities and needs, as well as global and regional challenges. We call for regular reviews of the alignment of MDBs resources and strategies. These reviews would lay a solid basis for MDB Boards’ consideration on if and when additional capital may be needed. In addition, to enhance private capital mobilization, we advocate for providing support aimed at removing regulatory bottlenecks to private investment, developing innovative risk-sharing and hedging instruments, including through local currency lending and domestic capital market reforms. To further maximize the impact of public investment, and its ability to boost growth, improve productivity, and reduce poverty, EMDEs should be supported with comprehensive policy reform programs to improve public investment efficiency, governance and fiscal administration, subject to the country’s specific circumstance.

13. We commend the recent progress under the G20 Common Framework and the Global Sovereign Debt Roundtable (GSDR), including establishing a common understanding of processes and practices. We call for a step up of the implementation of the G20 Common Framework in a predictable, timely, orderly, and coordinated manner and more meaningful debt relief. Additionally, we welcome the joint efforts of all stakeholders to enhance debt management and transparency and encourage private creditors to follow suit. We draw attention to the need for further reforms, especially with respect to early engagement with creditors and interaction with credit rating agencies. Ultimately, we urge for a comprehensive reform of the sovereign debt framework that addresses debt vulnerabilities in low and middle-income countries in an effective, comprehensive and systematic manner. We call for consideration of options – including the support of the IMF and the World Bank – to help countries facing short-term liquidity challenges whose debt is sustainable.

14. The global community is falling short of attaining climate and development goals, and in providing the commensurate financial support to developing countries towards achieving them. The frequency, intensity, and scale of extreme weather events, particularly in developing countries, are increasing, necessitating urgent action. Recognizing the varying national circumstances, we call for accelerating climate action based on equity and the principle of common but differentiated responsibilities and respective capabilities. Therefore, climate change strategies must incorporate the needs of EMDEs, and mitigation and adaptation actions should aim at ensuring accessibility to all types of energy, and energy security, bearing in mind sustainable development and efforts to eradicate poverty. Furthermore, MDBs and IFIs should support investment in the research and development of green technologies that reduce greenhouse gas emissions. We acknowledge the need to significantly scale up finance, and hence call for a concrete goal that is commensurate with the pressing challenges, and that is therefore greater than the $100 billion per year planned during the upcoming CoP29. We look forward to faster progress on the operationalization and capitalization of the Loss and Damage Fund. We reiterate our call for new and additional grant-based, highly concessional finance and non-debt instruments to support both middle- and low-income countries, especially as they transition in a just and equitable manner.

15. Domestic Resource Mobilization is essential for sustainable development. We strongly support national efforts to prevent and combat illicit financial flows, corruption, money-laundering and tax evasion, as such efforts would increase domestic resources. We call for increased capacity building to support members, to improve their expertise in domestic resource mobilization. We acknowledge the work of the Organization of Economic Co-operation and Development on tax base erosion and profit shifting, and welcome the progress made on the Two-Pillar Solution under the OECD Inclusive Framework. Additionally, we look forward to the forthcoming negotiation of the United Nations Framework Convention on International Tax Cooperation and its two early protocols. We call for a constructive engagement as well as multilateral consensus to achieve lasting progress on this initiative. Finally, we commend the work of the Brazil G20 Presidency on taxation and inequality.

16. Challenges to multilateralism are not abating. It is concerning that policymakers in some of the world’s largest economies continue to pursue protectionist or nationalist policies that are not in line with global integration on trade and development. We reaffirm our support for a rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable, and transparent, multilateral trading system with the World Trade Organization at its We encourage countries to contribute to the strengthening of multilateralism through ongoing initiatives. These include the Bretton Woods Initiative, which seeks to develop a long-term perspective on the global economy and the roles of the IMF and World Bank, and the Fourth Conference on Financing for Development, a forum aimed at identifying obstacles and constraints to the achievement of the SDGs and supporting the reform of the international financial architecture. We call for enhanced collaboration and cooperation among multilateral institutions to ensure a coherent and collaborative approach towards multilateralism.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER:

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

@IMFSpokesperson

MIL OSI Economics –

MIL-OSI: Federal Home Loan Bank of San Francisco Expands Support to Community Development Financial Institutions and State Housing Finance Agencies

Source: GlobeNewswire (MIL-OSI)

SAN FRANCISCO, Oct. 22, 2024 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) released enhancements to its credit and collateral risk policy that will enable greater lending by non-depository Community Development Financial Institutions (CDFIs) and state-charted Housing Finance Agencies (HFAs) to better support the low-income communities they serve. The enhancements align with the Bank’s mission to support affordable housing and economic development and are designed to provide increased liquidity to support community development for communities in need.

“We have spent significant time listening to our CDFI members and analyzing ways we can expand our relationships with CDFIs and HFAs, working together toward a shared mission of advancing economic opportunity and affordable housing. Our new underwriting enhancements are a first step toward increasing access and liquidity,” said Alanna McCargo, president and chief executive officer of FHLBank San Francisco. “By improving our terms and funding access for our non-depository CDFI members and increasing financing availability for housing associates like HFAs, we will be able to increase the availability of funds to benefit the communities that we collectively serve. Furthermore, we will continue to partner with our CDFI members and housing associates to innovate new programs that support their efforts, as there is a lot of untapped opportunity to expand in this space.”

The main borrowing enhancements include:

Increased credit terms from 5 years to up to 20 years on collateral, including Low Income Housing Tax Credit (LIHTC) properties, for non-depository CDFIs that can offer financing for the life of large affordable housing projects
Increased borrowing availability on posted collateral to support affordable housing and community development projects
Housing associate program limits increased from $250 to $500 million to continue to support state housing finance agency programs

FHLBank San Francisco will discuss the impact of these enhancements with CDFIs this week at the annual Opportunity Finance Network Conference in Los Angeles, the largest annual gathering of CDFIs. The Bank looks forward to engaging, collaborating and celebrating the work CDFIs and HFAs do to expand economic opportunity in the communities they serve.

CDFIs and HFAs are on the front lines of providing capital to low-income communities. The FHLBank San Francisco supports the missions of our non-depository CDFIs members and housing associates by providing access to low-cost capital and grants for affordable housing and economic development. With non-depository CDFIs traditionally finding it challenging to obtain long-term, affordable financing, FHLBank San Francisco has worked to partner with them to enhance their ability to serve their customers and communities. This important partnership increases the supply of affordable housing and facilitates homeownership and economic development initiatives in underserved communities.

To further their own community impact goals, CDFI members also benefit from FHLBank San Francisco’s discounted Advances for Community Enterprise (ACE) and Community Investment Program (CIP) credit products, the Affordable Housing Program (AHP) and the Access to Housing and Economic Assistance for Development (AHEAD) Program that provides micro grants for economic development.

For over a decade, FHLBank San Francisco has partnered with its non-depository CDFIs to generate positive community impact, including:

Funding $686 million in competitively priced advances since 2011, and an additional $36 million in discounted advances for community development.
Awarding $79.9 million in AHP grants to construct or preserve 6,885 affordable housing units.
Awarding $1.6 million in AHEAD grants to our non-depository CDFI members for 45 economic development and recovery initiatives.
Supporting programs aimed at supporting Latina entrepreneurs, providing vital housing and other services to Native American communities, facilitating career development for people of color, and other programs and projects that benefit underserved communities.

About the Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco is a member-owned cooperative supporting local lenders in Arizona, California, and Nevada to build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant, equitable, and resilient.

MIL-OSI USA: Attorney General Bonta, Together with Local, State, and Federal Law Enforcement Partners, Announces Eradication of 774,829 Cannabis Plants and 106,141 Pounds of Illegally-Grown Cannabis Worth over $353 Million

Source: US State of California

LOS ANGELES – California Attorney General Rob Bonta, together with local and federal law enforcement partners, today announced the eradication of 774,829 illegally cultivated cannabis plants and 106,141 pounds of processed cannabis, as well as 282 arrests in 36 different counties across California as part of Eradication and Prevention of Illicit Cannabis (EPIC) program. The total underground market price for these seizures is valued at approximately $353 million. EPIC is an interagency task force focused on combating the illegal cannabis market, cannabis enforcement work, and investigating and prosecuting civil and criminal cases with a focus on environmental, economic, and labor impacts from illegal cultivation.

“California has the largest safe, legal, and regulated cannabis market in the world, but unfortunately illegal and unlicensed grows continue to proliferate,” said Attorney General Rob Bonta. “The EPIC program was forged out of our recognition of the need for a more comprehensive approach that addresses the broader implications of the underground cannabis market. This includes tackling the environmental damage caused by these illicit activities, as well as the economic ramifications that arise from unregulated cultivation. Furthermore, there is a growing concern about labor exploitation within this underground market, where workers may face unsafe conditions and unfair treatment. I want to express my gratitude to the various partners involved in this effort, including local, state, and federal law enforcement agencies. Together, we are working toward a solution that not only curtails illegal activities but also promotes a sustainable and equitable cannabis industry in the state.”

“California has the largest state park system in the country with 1.59 million acres of park land to protect,” said California State Parks Law Enforcement Assistant Chief Jeremy Stinson. “Unfortunately, illegal cannabis cultivation is a serious threat to that land with more than 400 sites documented. California State Parks appreciates being a partner agency within EPIC to help address this issue. Protecting our state’s natural resources for all Californians and future generations is an important part of our mission. We look forward to continuing this valuable partnership to preserve and protect California’s state parks system.”

“California cannabis enforcement has a long way to go to ensure that the illicit cannabis doesn’t make it into the legal market,” said San Bernardino County Sheriff Shannon Dicus. “Partnerships like EPIC are a major step forward in tackling this problem.”

Over the course of the 2024 season, EPIC teams operating in Northern, Central, and Southern California, conducted 665 operations, recovered 201 weapons, and removed infrastructure, including dams, water lines, and containers of toxic chemicals, such as carbofuran, methyl parathion, aluminum phosphate, zinc phosphide, and illegal fertilizers. Carbofuran, in particular, poses untold risks to public health. A lethal insecticide that is effectively banned in the United States, carbofuran remains on plants after application and seeps into soil and nearby water sources.

In 2024, EPIC operations were conducted in the following 36 counties:

Alameda: 1 site, 751 plants eradicated
Butte: 5 sites, 4,397 plants eradicated
Colusa: 3 sites, 10 plants eradicated
Contra Costa: 2 sites, 5,010 plants eradicated
El Dorado: 8 sites, 2,174 plants eradicated
Fresno: 31 sites, 52,796 plants eradicated
Glenn: 1 site, 747 plants eradicated
Kern: 60 sites, 89,819 plants eradicated
Kings: 1 site, 539 plants eradicated
Lake: 48 sites, 42,776 plants eradicated
Lassen: 1 site, 7,359 plants eradicated
Los Angeles: 3 sites, 3,684 plants eradicated
Madera: 3 sites, 1,230 plants eradicated
Mariposa: 2 sites, 1,368 plants eradicated
Mendocino: 116 sites, 133,702 plants eradicated
Nevada: 33 sites, 28,428 plants eradicated
Riverside: 79 sites, 136,601 plants eradicated
Sacramento: 13 sites, 46,042 plants eradicated
San Bernardino: 23 sites, 27,845 plants eradicated
San Diego: 7 sites, 9,301 plants eradicated
Santa Barbara: 1 site, 362 plants eradicated
Santa Clara: 2 sites, 1,012 plants eradicated
Shasta: 67 sites, 51,289 plants eradicated
Siskiyou: 98 sites, 67,943 plants eradicated
Stanislaus: 6 sites, 5,103 plants eradicated
Trinity: 38 sites, 32,381 plants eradicated
Tulare: 7 sites, 5,468 plants eradicated
Tuolumne: 2 sites, 7,637 plants eradicated
Ventura: 3 sites, 7,891 plants eradicated
Yuba: 2 sites, 1,164 plants eradicated
Monterey: reconnaissance only
Napa: reconnaissance only
San Benito: reconnaissance only
San Luis Obispo: reconnaissance only
Santa Cruz: reconnaissance only
Solano: reconnaissance only

The EPIC program focuses on the investigation and prosecution of civil and criminal cases relating to illicit cannabis cultivation with a focus on environmental and economic harms and labor exploitation. EPIC is a multi-agency collaboration led by DOJ in partnership with the U.S. Department of Agriculture’s U.S. Forest Service; the U.S. Department of the Interior’s Bureau of Land Management and National Park Service; the California Department of Fish and Wildlife; the U.S. Department of Justice’s Drug Enforcement Administration; the California National Guard, Counter Drug Task Force; the Central Valley High Intensity Drug Trafficking Areas program; California State Parks; California Environmental Protection Agency; and other local law enforcement departments.

EPIC marks an evolution in DOJ’s cannabis enforcement work, reflecting the issues and concerns arising from operations each summer. EPIC works in close coordination with DOJ’s Cannabis Control Section, Special Prosecutions Section, and Tax Recovery and Underground Economy (TRUE) Task Force to build investigations and prosecute civil and criminal cases.

B-roll of the operations produced by DOJ are available for use by producers and members of the media. Please contact agpressoffice@doj.ca.gov.

Graphics of 2024 EPIC season statistics are available here.