Category: Trade

  • MIL-OSI USA: TreeHouse Foods Announces Expansion of Voluntary Recall to Include All Waffle and Pancake Products Due to the Potential for Listeria monocytogenes Contamination

    Source: US Department of Health and Human Services – 3

    Categories24/7 OSI, Health, MIL-OSI, United States Government, US Department of Health, US Department of Health and Human Services, US Health

    Label Product Description Retail UPC Best By Dates
    365 ORGANIC 365 Everyday 9oz Organic Homestyle Mini Waffles 099482436995 OCT 01 2024 to OCT 11 2025
      365 Everyday Organic 7.4oz Organic Blueberry Waffles 099482436971 OCT 01 2024 to OCT 11 2025
      365 Everyday Organic 7.4oz Organic Homestyle Waffles 099482436964 OCT 01 2024 to OCT 11 2025
      365 Everyday Organic 7.4oz Organic Multigrain Waffles 099482442828 OCT 01 2024 to OCT 11 2025
      365 Organic 9oz Organic Blueberry Mini Waffles 099482437008 OCT 01 2024 to OCT 11 2025
    ALWAYS SAVE Always Save 11oz Buttermilk Pancakes 070038644071 OCT 01 2024 to OCT 11 2025
      Always Save 9.9oz Homestyle Waffles 070038608752 OCT 01 2024 to OCT 11 2025
    BEST CHOICE Best Choice 12.3oz Blueberry Waffles 070038356851 OCT 01 2024 to OCT 11 2025
      Best Choice 12.3oz Buttermilk Waffles 070038356837 OCT 01 2024 to OCT 11 2025
      Best Choice 12.3oz Chocolate Chip Waffles 070038596790 OCT 01 2024 to OCT 11 2025
      Best Choice 12.3oz Multigrain Waffles 070038622116 OCT 01 2024 to OCT 11 2025
      Best Choice 12.3oz Original Waffles 070038362852 OCT 01 2024 to OCT 11 2025
      Best Choice 13.75oz Belgian Waffles 070038644019 OCT 01 2024 to OCT 11 2025
      Best Choice 16.5oz Buttermilk Pancakes 070038592716 OCT 01 2024 to OCT 11 2025
      Best Choice 29.6oz Buttermilk Waffles 070038632818 OCT 01 2024 to OCT 11 2025
      Best Choice 29.6oz Homestyle Waffles 070038632801 OCT 01 2024 to OCT 11 2025
    BETTERGOODS Bettergoods 10.72oz Blueberry Protein Waffles 194346252756 OCT 01 2024 to OCT 11 2025
      Bettergoods 10.72oz Chocolate Chip Protein Waffles 194346252763 OCT 01 2024 to OCT 11 2025
      Bettergoods 13.4oz Vanilla Protein Buttermilk Waffles 194346252749 OCT 01 2024 to OCT 11 2025
    BREAKFAST BEST Breakfast Best 12.3oz Blueberry Waffles 4061464782273 OCT 01 2024 to OCT 11 2025
      Breakfast Best 12.3oz Chocolate Chip Waffles 4061464785205 OCT 01 2024 to OCT 11 2025
      Breakfast Best 12.3oz Homestyle Waffles 041498194468 OCT 01 2024 to OCT 11 2025
      Breakfast Best 12.3oz Pumpkin Cinnamon Waffles 4061463257208 OCT 01 2024 to OCT 11 2025
      Breakfast Best 33oz Buttermilk Pancakes 4099100329315 OCT 01 2024 to OCT 11 2025
      Breakfast Best 8oz Homestyle Plant Based Waffles 4061459885750 OCT 01 2024 to OCT 11 2025
    BROOKSHIRE’S Brookshire’s 16.5oz Buttermilk Pancakes 092825096672 OCT 01 2024 to OCT 11 2025
      Brookshire’s 33oz Buttermilk Pancakes 092825096740 OCT 01 2024 to OCT 11 2025
    CENTRAL MARKET Central Market 11.3oz Gluten Free Buckwheat Blueberry Waffles 41220708390 OCT 01 2024 to OCT 11 2025
    CLOVER VALLEY Clover Valley 12.3oz Buttermilk Waffles 686151403404 OCT 01 2024 to OCT 11 2025
      Clover Valley 12.3oz Homestyle Waffles 686151403398 OCT 01 2024 to OCT 11 2025
    CULINARY TOURS Culinary Tours 13.75oz Mixed Berry Belgian Waffles 11225148569 OCT 01 2024 to OCT 11 2025
      Culinary Tours 13.75oz Original Belgian Waffles 011225148552 OCT 01 2024 to OCT 11 2025
    ESSENTIALS Essential 9.9oz Homestyle Waffles 607880101874 OCT 01 2024 to OCT 11 2025
    FOOD LION Food Lion 12.3oz Blueberry Waffles 035826091444 OCT 01 2024 to OCT 11 2025
      Food Lion 12.3oz Buttermilk Waffles 035826091468 OCT 01 2024 to OCT 11 2025
      Food Lion 12.3oz Homestyle Waffles 035826091451 OCT 01 2024 to OCT 11 2025
      Food Lion 29.6oz Buttermilk Waffles 035826091499 OCT 01 2024 to OCT 11 2025
      Food Lion 29.6oz Homestyle Waffles 035826091505 OCT 01 2024 to OCT 11 2025
    FOODHOLD Foodhold 11.3oz Gluten Free Homestyle Waffles 688267562761 OCT 01 2024 to OCT 11 2025
      Foodhold 11.3oz Gluten Free Blueberry Waffles 688267562754 OCT 01 2024 to OCT 11 2025
      Foodhold 12.3oz Blueberry Waffles 688267073946 OCT 01 2024 to OCT 11 2025
      Foodhold 12.3oz Buttermilk Waffles 688267073960 OCT 01 2024 to OCT 11 2025
      Foodhold 12.3oz Chocolate Chip Waffles 688267073984 OCT 01 2024 to OCT 11 2025
      Foodhold 12.3oz Homestyle Waffles 688267073922 OCT 01 2024 to OCT 11 2025
      Foodhold 12.3oz Multigrain Waffles 688267081958 OCT 01 2024 to OCT 11 2025
      Foodhold 29.6oz Blueberry Waffles 688267150012 OCT 01 2024 to OCT 11 2025
      Foodhold 29.6oz Buttermilk Waffles 688267002496 OCT 01 2024 to OCT 11 2025
      Foodhold 29.6oz Chocolate Chip Waffles 688267150029 OCT 01 2024 to OCT 11 2025
      Foodhold 29.6oz Homestyle Waffles 688267006340 OCT 01 2024 to OCT 11 2025
    FULL CIRCLE Full Circle 11.3oz Gluten Free Blueberry Waffles 036800486980 OCT 01 2024 to OCT 11 2025
      Full Circle 11.3oz Homestyle Gluten Free Waffles 036800486997 OCT 01 2024 to OCT 11 2025
    GIANT EAGLE Giant Eagle 11.3oz Gluten Free Blueberry Waffles 030034944940 OCT 01 2024 to OCT 11 2025
      Giant Eagle 11.3oz Gluten Free Homestyle Waffles 030034944933 OCT 01 2024 to OCT 11 2025
      Giant Eagle 12.3oz Blueberry Waffles 030034011642 OCT 01 2024 to OCT 11 2025
      Giant Eagle 12.3oz Buttermilk Waffles 030034011635 OCT 01 2024 to OCT 11 2025
      Giant Eagle 12.3oz Homestyle Waffles 030034011604 OCT 01 2024 to OCT 11 2025
      Giant Eagle 13.75oz Original Belgian Waffles 030034011680 OCT 01 2024 to OCT 11 2025
      Giant Eagle 16.5oz Blueberry Pancakes 030034011673 OCT 01 2024 to OCT 11 2025
      Giant Eagle 16.5oz Buttermilk Pancakes 030034011666 OCT 01 2024 to OCT 11 2025
      Giant Eagle 29.6oz Buttermilk Waffles 030034038076 OCT 01 2024 to OCT 11 2025
      Giant Eagle 29.6oz Homestyle Waffles 030034011628 OCT 01 2024 to OCT 11 2025
      Giant Eagle 33oz Buttermilk Bag Pancakes 030034071332 OCT 01 2024 to OCT 11 2025
      Giant Eagle 9oz Mini Homestyle Waffles 030034088347 OCT 01 2024 to OCT 11 2025
    GOOD & GATHER Good and Gather 10.7oz Buttermilk Vanilla Waffles 085239157961 OCT 01 2024 to OCT 11 2025
      Good and Gather 11.3oz Gluten Free Homestyle Waffles 085239157954 OCT 01 2024 to OCT 11 2025
      Good and Gather 12.3oz Blueberry Waffles 085239157923 OCT 01 2024 to OCT 11 2025
      Good and Gather 12.3oz Buttermilk Waffles 085239157916 OCT 01 2024 to OCT 11 2025
      Good and Gather 12.3oz Homestyle Waffles 085239157909 OCT 01 2024 to OCT 11 2025
      Good and Gather 13.75oz Belgian Waffles 085239157947 OCT 01 2024 to OCT 11 2025
      Good and Gather 9oz Organic Blueberry Mini Waffles 085239343012 OCT 01 2024 to OCT 11 2025
      Good and Gather 9oz Organic Homestyle Mini Waffles 085239343029 OCT 01 2024 to OCT 11 2025
    GORDON FOOD SERVICE Gordon Foodservice 74oz Homestyle Waffles 093901894793 OCT 01 2024 to OCT 11 2025
    GREAT VALUE Great Value 12.3oz Buttermilk Waffles 078742088587 OCT 01 2024 to OCT 11 2025
      Great Value 12.3oz Homestyle Waffles 078742088532 OCT 01 2024 to OCT 11 2025
    GREENWISE Greenwise 7.4oz Organic Multigrain Waffles 041415209541 OCT 01 2024 to OCT 11 2025
    HANNAFORD Hannaford 12.3oz Blueberry Waffles 041268196289 OCT 01 2024 to OCT 11 2025
      Hannaford 12.3oz Chocolate Chip Waffles 041268196326 OCT 01 2024 to OCT 11 2025
      Hannaford 12.3oz Homestyle Waffles 041268196296 OCT 01 2024 to OCT 11 2025
      Hannaford 12.3oz Multigrain Waffles 041268196319 OCT 01 2024 to OCT 11 2025
      Hannaford 12.3oz Reduced Fat Buttermilk Waffles 041268196302 OCT 01 2024 to OCT 11 2025
    HARRIS TEETER Harris Teeter 12.3oz Blueberry Waffles 072036726483 OCT 01 2024 to OCT 11 2025
      Harris Teeter 12.3oz Buttermilk Waffles 072036726476 OCT 01 2024 to OCT 11 2025
      Harris Teeter 12.3oz Homestyle Waffles 072036726469 OCT 01 2024 to OCT 11 2025
      Harris Teeter 12.3oz Multigrain Waffles 072036726490 OCT 01 2024 to OCT 11 2025
      Harris Teeter 16.5oz Buttermilk Pancakes 072036740694 OCT 01 2024 to OCT 11 2025
      Harris Teeter 29.6oz Blueberry Waffles 072036736444 OCT 01 2024 to OCT 11 2025
      Harris Teeter 29.6oz Homestyle Waffles 072036726513 OCT 01 2024 to OCT 11 2025
    H-E-B HEB 8.25oz Organic Whole Wheat Flax Waffles 041220708338 OCT 01 2024 to OCT 11 2025
      HEB 8.25oz Organic Homestyle Waffles 041220708307 OCT 01 2024 to OCT 11 2025
      HEB 9oz Organic Apple Cinnamon Mini Waffles 041220708376 OCT 01 2024 to OCT 11 2025
      HEB 9oz Organic Homestyle Mini Waffles 041220708413 OCT 01 2024 to OCT 11 2025
    H-E-B HIGHER HARVEST HEB Higher Harvest 10.72oz Blueberry Waffles 041220708093 OCT 01 2024 to OCT 11 2025
      HEB Higher Harvest 10.72oz Original Protein Waffles 041220013685 OCT 01 2024 to OCT 11 2025
      HEB Higher Harvest 11.3oz Gluten Free Blueberry Buckwheat Waffles 041220708390 OCT 01 2024 to OCT 11 2025
    KODIAK CAKES Kodiak Cakes 10.72oz Chocolate Chip Waffles 705599013201 OCT 01 2024 to APR 11 2026
      Kodiak Cakes 10.72oz Dark Chocolate Waffles 705599012709 OCT 01 2024 to APR 11 2026
      Kodiak Cakes 13.4oz Vanilla Buttermilk Waffles 705599012211 OCT 01 2024 to APR 11 2026
      Kodiak Cakes 14.8oz Blueberry Belgian Waffles 705599014826 OCT 01 2024 to APR 11 2026
      Kodiak Cakes 14.8oz Chocolate Chip Belgian Waffles 705599015137 OCT 01 2024 to APR 11 2026
      Kodiak Cakes 14.8oz Vanilla Buttermilk Belgian Waffles 705599014802 OCT 01 2024 to APR 11 2026
      Kodiak Cakes 9.88oz Cinnamon Mini Waffles 705599017162 OCT 01 2024 to APR 11 2026
      Kodiak Cakes 9.88oz Original Mini Waffles 705599017148 OCT 01 2024 to APR 11 2026
    KROGER Kroger 16.5oz Buttermilk Pancakes 011110874306 OCT 01 2024 to OCT 11 2025
      Kroger 16.5oz Original Pancakes 011110811769 OCT 01 2024 to OCT 11 2025
      Kroger 33oz Buttermilk Pancakes 011110786357 OCT 01 2024 to OCT 11 2025
    KRUSTEAZ Krusteaz 16.5oz Buttermilk Pancakes 686151200102 OCT 01 2024 to OCT 11 2025
      Krusteaz 3.44LB Original Belgian Waffles 686151903331 OCT 01 2024 to OCT 11 2025
    NATURE’S BASKET Natures Basket 7.41oz Organic Homestyle Waffles 030034944483 OCT 01 2024 to OCT 11 2025
    NATURES PATH ORGANIC Nature’s Path 7.4oz Organic Buckwheat Wildberry Waffles 058449590583 OCT 01 2024 to OCT 11 2025
      Natures Path 7.4oz Organic Chia Waffles 058449590729 OCT 01 2024 to OCT 11 2025
      Nature’s Path 7.4oz Organic Dark Chocolate Chip Waffles 058449167013 OCT 01 2024 to OCT 11 2025
      Nature’s Path 7.4oz Organic Homestyle Waffles 058449590545 OCT 01 2024 to OCT 11 2025
      Nature’s Path 7.4oz Organic Pumpkin Spice Waffles 058449590774 OCT 01 2024 to OCT 11 2025
      Natures Path Organic 7.4oz Flaxseed Waffles 058449590569 OCT 01 2024 to OCT 11 2025
    NATURE’S PROMISE Nature’s Promise 7.4oz Organic Blueberry Waffles 688267058448 OCT 01 2024 to OCT 11 2025
      Nature’s Promise 7.4oz Organic Gluten Free Homestyle Waffles 688267058431 OCT 01 2024 to OCT 11 2025
      Natures Promise 7.4oz Organic Multigrain Waffles 688267188497 OCT 01 2024 to OCT 11 2025
    O ORGANICS O Organics 7.4oz Organic Blueberry Waffles 079893801162 OCT 01 2024 to OCT 11 2025
      O Organics 7.4oz Organic Homestyle Waffles 079893801155 OCT 01 2024 to OCT 11 2025
    PICS BY PRICE CHOPPER Price Chopper 12.3oz Blueberry Waffles 041735157522 OCT 01 2024 to OCT 11 2025
      Price Chopper 12.3oz Buttermilk Waffles 041735157515 OCT 01 2024 to OCT 11 2025
      Price Chopper 12.3oz Chocolate Chip Waffles 041735157133 OCT 01 2024 to OCT 11 2025
      Price Chopper 12.3oz Homestyle Waffles 041735157508 OCT 01 2024 to OCT 11 2025
      Price Chopper 16.5oz Buttermilk Pancakes 041735157393 OCT 01 2024 to OCT 11 2025
      Price Chopper 16.5oz Homestyle Pancakes 041735157386 OCT 01 2024 to OCT 11 2025
      Price Chopper 29.6oz Blueberry Waffles 041735089656 OCT 01 2024 to OCT 11 2025
      Price Chopper 29.6oz Buttermilk Waffles 041735064905 OCT 01 2024 to OCT 11 2025
      Price Chopper 29.6oz Homestyle Waffles 041735064912 OCT 01 2024 to OCT 11 2025
      Price Chopper 9oz Mini Homestyle Waffles 041735010445 OCT 01 2024 to OCT 11 2025
    PRIVATE SELECTION Private Selection 13.75oz Belgian Waffles 011110893994 OCT 01 2024 to OCT 11 2025
    PUBLIX Publix 12.3oz Buttermilk Waffles 641415001543 OCT 01 2024 to OCT 11 2025
      Publix 12.3oz Homestyle Waffles 641415000546 OCT 01 2024 to OCT 11 2025
      Publix 13.75oz Belgian Waffles 041415204546 OCT 01 2024 to OCT 11 2025
      Publix 29.6oz Buttermilk Waffles 041415009547 OCT 01 2024 to OCT 11 2025
    SCHNUCKS Schnucks 12.3oz Blueberry Waffles 041318101072 OCT 01 2024 to OCT 11 2025
      Schnucks 12.3oz Buttermilk Waffles 041318101027 OCT 01 2024 to OCT 11 2025
      Schnucks 12.3oz Chocolate Chip Waffles 041318100518 OCT 01 2024 to OCT 11 2025
      Schnucks 12.3oz Homestyle Waffles 041318101010 OCT 01 2024 to OCT 11 2025
      Schnucks 16.5oz Buttermilk Pancakes 041318100570 OCT 01 2024 to OCT 11 2025
      Schnucks 33oz Buttermilk Bag Pancakes 041318100020 OCT 01 2024 to OCT 11 2025
    SE GROCERS SE Grocers 12.3oz Blueberry Waffles 038259117118 OCT 01 2024 to OCT 11 2025
      SE Grocers 12.3oz Buttermilk Waffles 038259117101 OCT 01 2024 to OCT 11 2025
      SE Grocers 12.3oz Chocolate Chip Waffles 038259145067 OCT 01 2024 to OCT 11 2025
      SE Grocers 12.3oz Homestyle Waffles 038259117132 OCT 01 2024 to OCT 11 2025
      SE Grocers 13.75oz Original Belgian Waffles 038259117163 OCT 01 2024 to OCT 11 2025
      SE Grocers 16.5oz Buttermilk Pancakes 038259117187 OCT 01 2024 to OCT 11 2025
      SE Grocers 16.5oz Homestyle Pancakes 038259117194 OCT 01 2024 to OCT 11 2025
      SE Grocers 29.6oz Buttermilk Waffles 038259117125 OCT 01 2024 to OCT 11 2025
      SE Grocers 29.6oz Homestyle Waffles 038259117149 OCT 01 2024 to OCT 11 2025
      SE Grocers 33oz Buttermilk Pancakes 038259117170 OCT 01 2024 to OCT 11 2025
      SE Grocers 7.4oz Organic Multigrain Waffles 607880200867 OCT 01 2024 to OCT 11 2025
    SIGNATURE SELECT Signature Select 16.5oz Buttermilk Pancakes 021130495757 OCT 01 2024 to OCT 11 2025
      Signature Select 33oz Buttermilk Pancakes 021130495740 OCT 01 2024 to OCT 11 2025
    SIMPLE TRUTH Simple Truth 10.72oz Protein Blueberry Waffles 011110108142 OCT 01 2024 to OCT 11 2025
      Simple Truth 11.3oz Gluten Free Blueberry Waffles 011110105509 OCT 01 2024 to OCT 11 2025
      Simple Truth 11.3oz Gluten Free Homestyle Waffles 011110105493 OCT 01 2024 to OCT 11 2025
      Simple Truth 13.4oz Protein Vanilla Buttermilk Waffles 011110108135 OCT 01 2024 to OCT 11 2025
    SIMPLE TRUTH ORGANIC Simple Truth 7.4oz Organic Blueberry Waffles 011110012883 OCT 01 2024 to OCT 11 2025
      Simple Truth 7.4oz Organic Homestyle Waffles 011110012302 OCT 01 2024 to OCT 11 2025
      Simple Truth Organic 19.75oz Homestyle Waffles 011110138293 OCT 01 2024 to OCT 11 2025
    TOPS Tops 12.3oz Blueberry Waffles 070784056043 OCT 01 2024 to OCT 11 2025
      Tops 12.3oz Buttermilk Waffles 070784056050 OCT 01 2024 to OCT 11 2025
      Tops 12.3oz Chocolate Chip Waffles 070784056067 OCT 01 2024 to OCT 11 2025
      Tops 12.3oz Homestyle Waffles 070784056012 OCT 01 2024 to OCT 11 2025
      Tops 16.5oz Buttermilk Pancakes 070784056340 OCT 01 2024 to OCT 11 2025
    TRADER JOE’S Trader Joe’s 11oz Blueberry Waffles 000000201063 OCT 01 2024 to OCT 11 2025
      Trader Joe’s 11oz Gluten Free Toaster Waffles 000000199674 OCT 01 2024 to OCT 11 2025
      Trader Joe’s 9.9oz Pumpkin Waffles 000000517263 OCT 01 2024 to OCT 11 2025
    WEGMANS Wegmans 11.3oz Gluten Free Blueberry Waffles 077890519653 OCT 01 2024 to OCT 11 2025
      Wegmans 11.3oz Gluten Free Homestyle Waffles 077890519622 OCT 01 2024 to OCT 11 2025
      Wegmans 13.75oz Belgian Waffles 077890550342 OCT 01 2024 to OCT 11 2025
      Wegmans 13.75oz Cinnamon Belgian Waffles 077890550014 OCT 01 2024 to OCT 11 2025
      Wegmans 16.5oz Blueberry Pancakes 077890481387 OCT 01 2024 to OCT 11 2025
      Wegmans 16.5oz Buttermilk Pancakes 077890481356 OCT 01 2024 to OCT 11 2025
      Wegmans 3.7lb Organic Homestyle Waffles 077890481394 OCT 01 2024 to OCT 11 2025
      Wegmans 7.4oz Organic Blueberry Waffles 077890481417 OCT 01 2024 to OCT 11 2025
      Wegmans 7.4oz Organic Flax Seed Waffles 077890481424 OCT 01 2024 to OCT 11 2025
      Wegmans 7.4oz Organic Homestyle Waffles 077890481400 OCT 01 2024 to OCT 11 2025
      Wegmans 7.4oz Organic Multigrain Waffles 077890481431 OCT 01 2024 to OCT 11 2025
      Wegmans 9oz Organic Mini Homestyle Waffles 077890481448 OCT 01 2024 to OCT 11 2025
      Wegmens 8.25oz Organic Flaxseed Waffles 077890577059 OCT 01 2024 to OCT 11 2025
    WILD HARVEST Wild Harvest 11.3oz Gluten Free Blueberry Waffles 711535515173 OCT 01 2024 to OCT 11 2025
      Wild Harvest 11.3oz Gluten Free Homestyle Waffles 711535515180 OCT 01 2024 to OCT 11 2025
    YELLOH Yelloh 16.5oz Blueberry Pancakes 810038684680 OCT 01 2024 to OCT 11 2025
      Yelloh 16.5oz Buttermilk Pancakes 810038684697 OCT 01 2024 to OCT 11 2025
      Yelloh 19.75oz Homestyle Waffles 810038681535 OCT 01 2024 to OCT 11 2025
           
           
           

    MIL OSI USA News

  • MIL-OSI USA: News 10/22/2024 ICYMI in The Hill: Blackburn Pushes Back Against KOSA Lies

    US Senate News:

    Source: United States Senator Marsha Blackburn (R-Tenn)
    NASHVILLE, Tenn. – U.S. Senator Marsha Blackburn (R-Tenn.) released a memo rebutting Big Tech’s lies about the Kids Online Safety Act, which passed the Senate 91-3. Read more about this memo in the article here and below. 
    Republican senator pushes back against KOSA ‘lies’
    Miranda NazzaroThe Hill
    Sen. Marsha Blackburn (R-Tenn.) pushed back against tech companies’ criticism of the Kids Online Safety Act (KOSA), responding in a memo Monday to what she described as “lies” about the privacy legislation.
    The memo, released Monday morning by her office, rebuked a series of arguments made by some leading tech companies and lawmakers opposed to the bill’s current form. It comes as the legislation faces an uncertain future in the House after passing in the Senate earlier this year.
    Blackburn, the co-author of the Senate-passed version, wrote KOSA does not censor speech nor affect the First Amendment — concerns raised by some House Republicans.
    “KOSA would not censor, limit, or remove any content from the internet and it does not give the FTC or state AGs the power to bring lawsuits over content or speech, no matter who it is from,” the memo stated. “The bill passes First Amendment scrutiny because it is content neutral.
    The bill would not give any new “rulemaking power” to the Federal Trade Commission (FTC), Blackburn wrote in response to some Republicans’ concerns it would give the FTC too much authority to regulate social media platforms.
    KOSA, which overwhelmingly passed the Senate in a 91-3 vote in late July, is aimed at boosting online privacy and safety for children. The bill would create regulations for the kinds of features tech and social media companies offer kids online and intends to reduce the addictive nature and mental health impact of these platforms.
    Some House Republicans suggested last month the bill could specifically censor conservative voices or anti-abortion views. Blackburn disagreed with this, writing online platforms will not be held liable for hosting or boosting users with these views, and emphasized the bill does not grant enforcement powers related to speech or content.
    “Claims that KOSA allows the FTC to decide what kids see online are blatant falsehoods circulated by tech companies trying to stop the bill from becoming law,” Blackburn wrote. “The bill gives the FTC the ability to hold social media accountable for their product designs — their own predatory business practices and deadly apps.”
    While the bill advanced out of the House Energy and Commerce Committee last month, members in both parties expressed concerns with its language, for different reasons. 
    Some lawmakers took issue with the language of KOSA’s “duty of care” provision. As written in the Senate version, the provision would require platforms to design and implement features for minors to prevent and reduce harms, such as those caused by content promoting suicide and eating disorders.
    Blackburn offered her definition of the provision, writing it “simply states that online platforms cannot put products on the market that will cause specific harms to kids, such as suicide and sexual predation. These harms are specified and defined by Congress, not the FTC.”
    The House version that advanced out of committee last month includes amendments changing this provision.
    The Tennessee Republican further emphasized that KOSA applies to commercial and online platforms like social media, online video games and video streaming services, but it does not apply to nonprofit organizations, blogs, news outlets, churches or broadband companies.
    “It would not impact the ability of kids to watch online sports, news or a church sermon,” Blackburn wrote.
    The bill would “give parents a seat at the table” and a place to voice their concerns with leading tech companies, she added.
    The push comes nearly a week after House Speaker Mike Johnson (R-La.) revealed he likes the concept of KOSA, though he claims the details of the Senate-passed version are “very problematic.”
    “I love the principle, but the details of that are very problematic,” Johnson told Punchbowl News in an interview in Pennsylvania.
    The Speaker said the Senate bill, as written, would have “unintended consequences,” Punchbowl reported. Johnson’s office confirmed his comments to The Hill. 
    Punchbowl reported Johnson did not appear open to persuasion on the Senate version, a potential blow to KOSA advocates who previously told the outlet the House leader might be flexible. 
    Monday’s memo follows a series of other efforts led by Blackburn and tech advocacy groups to pass the legislation on the full House floor.

    RELATED:  

    MIL OSI USA News

  • MIL-Evening Report: Abortion is back in the headlines in Australia. The debates in the United States tell us why

    Source: The Conversation (Au and NZ) – By Prudence Flowers, Senior Lecturer in US History, College of Humanities, Arts, and Social Sciences, Flinders University

    The 2022 news that the US Supreme Court had overturned Roe v Wade and ended the constitutional right to abortion sent shockwaves around the world.

    For Australian opponents of abortion who had long looked to the US for leadership and inspiration, it prompted rejoicing.

    As a leader of Cherish Life Queensland put it, “if the USA can do it, with God’s help, so can we”.

    In late 2024, the abortion issue has suddenly erupted in Queensland and South Australia. A subset of local conservatives, energised by the fall of Roe v Wade and the example of Donald Trump, are embracing the divisive “culture war” tactics that dominate US politics.

    Abortion and Australian politics in 2024

    In the 2020 Queensland election, the Liberal National Party (LNP) has promised a “review” of the legislation that had decriminalised abortion two years prior. However, the party has spent most of the 2024 campaign studiously avoiding the issue.

    That is, until Robbie Katter MP, of Katter’s Australia Party, threw a spanner in the works.

    On October 8, Katter announced that if the LNP won, as was widely predicted, he would immediately introduce a private member’s bill to repeal the state abortion law.

    LNP leader David Crisafulli, who voted against decriminalisation, insists that changing the law is “not part of our plan”.

    However, last week Crisafulli was asked 132 times about abortion and the issue of conscience votes and refused to provide a clear answer.

    In the final leaders’ debate on Tuesday night, Crisafulli finally said there would be no change to abortion law and he was “pro-choice”.

    However, that is unlikely to be the end of the issue – opposition to abortion runs deep in the LNP.

    Party policy in 2018 was that abortion should remain a criminal offence. Despite being a conscience vote, the three LNP members who voted for decriminalisation were threatened with “punishment” afterwards.

    In 2024, several new antiabortion candidates are running for the LNP. Former Liberal senator Amanda Stoker is a particularly high-profile one, having repeatedly addressed the Brisbane March for Life rally.

    The furore over the future of reproductive rights in Queensland occurred in parallel with controversy over anti-abortion legislation introduced by state Liberal MP Ben Hood in South Australia.

    His bill required anyone needing to end a pregnancy after 28 weeks to have labour induced and for the baby to be delivered alive, regardless of the health outcomes for the pregnant person or infant.

    Peak medical and legal bodies condemned the bill, which critics described as a “forced birth” measure. It was narrowly defeated in the upper house on October 16.

    Federally, Senator Jacinta Price has also called for abortion to be back on the “national agenda” and condemned abortion after the first 12 weeks of pregnancy. Her stance is out of step with abortion law in all Australian jurisdictions.




    Read more:
    Abortion is now legal across Australia – but it’s still hard to access. Doctors are both the problem and the solution


    Public and party opinion

    This sudden uptick in anti-abortion politics does not reflect Australian attitudes.

    A 2024 poll found 75% of Queenslanders agreed that decriminalising abortion had been the right action.

    This view was shared across partisan and geographical lines, held by 73% of LNP voters and 78% of regional Queenslanders.

    Historian Cassandra Byrnes demonstrates that these pro-choice attitudes have deep roots. A majority of the public opposed the police raids on abortion clinics that occurred under Nationals premier Sir Joh Bjelke-Petersen.

    A 2020 poll of South Australians found 80% supported decriminalisation. And 63% considered that later abortion should be available “when the woman and her healthcare team decide it is necessary”.

    The LNP’s hostility towards decriminalisation was also markedly different from the approach in other states.

    Notably, in both New South Wales and South Australia, prominent Liberals, including premiers, voted to decriminalise abortion.

    In South Australia, two senior Liberals, Minister for Human Services Michelle Lensink and Attorney-General Vickie Chapman, led the cross-party group that achieved law reform.

    Importing the culture wars

    When Australian states and territories debated decriminalisation, anti-abortion opponents relied heavily on tactics, pseudoscientific evidence and outright misinformation that first emerged in the United States.




    Read more:
    How the US right-to-life movement is influencing the abortion debate in Australia


    For example, in 2008, one Victorian group controversially distributed graphic photographs of aborted fetuses, and American diagrams and descriptions of later abortion procedures.

    Now, as Australian conservatives seek to reopen the debate over abortion, American influence underpins the rhetoric and framing.

    For decades, opponents of abortion in the United States focused on chipping away abortion rights and eroding access. They never accepted that abortion was health care.

    Since 1995, their central focus was also on the statistically rare abortions performed after 20 weeks gestation. This focus has been imported wholesale into Australia.

    The anti-abortion activism surrounding Hood’s bill reflects these approaches. Opponents of abortions waged a broad and stigmatising campaign against abortion after 22 weeks and six days, the legal point in South Australia after which two medical practitioners must approve an abortion.

    Hood’s bill is best interpreted as an anti-abortion “messaging” exercise rather than a genuine attempt to amend the law.

    For decades, this was the default tactic motivating Republicans when they introduced extreme, unenforceable bills. The purpose was not legislative change but to amplify their rhetoric and arguments and energise conservative voters.

    Opposition to abortion is also part of a broader rightward shift taking place among some state Liberal branches.

    In South Australia, conservatives launched a power grab after abortion was decriminalised in 2021. This included a significant recruitment drive among Pentecostals.

    A similar recruiting focus on conservative religious faith groups has also occurred in Victoria, triggered by LGBTQI+ victories.

    In South Australia, the party takeover is openly led by Senator Alex Antic. He made a name for himself through his hostility to COVID-19 vaccines and his opposition to trans and abortion rights.

    Antic praises Trump and seeks out connections with conservatives who are or have been close to him, including Steven Bannon and Donald Trump junior.

    Meanwhile, in Queensland, Crisafulli’s desperate efforts not to be pinned down on abortion offer a local version of themes in the 2024 presidential election.

    Because Republicans have experienced significant voter backlash over abortion, Trump has charted an uneasy course.

    Trump claims sole responsibility for the end of Roe v Wade while simultaneously denying any connection to the abortion bans now in place in many states.

    Like Crisafulli, Trump has been unclear about what his victory would mean for reproductive rights.

    Political commentator Mark Kenny concludes that an “ideological battle” is unfolding among Australian Liberals.

    As in the United States, unwavering hostility to abortion is proving central to these politicians as a way to signify their priorities to voters and define themselves against others in their party.

    Prudence Flowers has received funding from the South Australian Department of Human Services. She is a member of the South Australian Abortion Action Coalition.

    ref. Abortion is back in the headlines in Australia. The debates in the United States tell us why – https://theconversation.com/abortion-is-back-in-the-headlines-in-australia-the-debates-in-the-united-states-tell-us-why-241778

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI: Nokia Corporation: Repurchase of own shares on 23.10.2024

    Source: GlobeNewswire (MIL-OSI)

    Nokia Corporation
    Stock Exchange Release
    23 October 2024 at 22:30 EET

    Nokia Corporation: Repurchase of own shares on 23.10.2024

    Espoo, Finland – On 23 October 2024 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

    Trading venue (MIC Code) Number of shares Weighted average price / share, EUR*
    XHEL 1,334,469 4.34
    CEUX 394,178 4.34
    BATE
    AQEU
    TQEX
    Total 1,728,647 4.34

    * Rounded to two decimals

    On 25 January 2024, Nokia announced that its Board of Directors is initiating a share buyback program to return up to EUR 600 million of cash to shareholders in tranches over a period of two years. The first phase of the share buyback program started on 20 March 2024. On 19 July 2024, Nokia decided to accelerate the share buybacks by increasing the number of shares to be repurchased during the year 2024. The post-increase repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 22 July 2024 and end by 31 December 2024 with a maximum aggregate purchase price of EUR 600 million for all purchases during 2024.

    Total cost of transactions executed on 23 October 2024 was EUR 7,504,921. After the disclosed transactions, Nokia Corporation holds 181,887,229 treasury shares.

    Details of transactions are included as an appendix to this announcement.

    On behalf of Nokia Corporation

    BofA Securities Europe SA

    About Nokia
    At Nokia, we create technology that helps the world act together.

    As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

    Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

    Inquiries:

    Nokia Communications
    Phone: +358 10 448 4900
    Email: press.services@nokia.com
    Maria Vaismaa, Global Head of External Communications

    Nokia Investor Relations
    Phone: +358 40 803 4080
    Email: investor.relations@nokia.com

    Attachment

    The MIL Network

  • MIL-OSI USA: Brownley, Casten Introduce Legislation to Inform Consumers with Carbon Footprint Labels for Food Products

    Source: United States House of Representatives – Julia Brownley (D-CA)

  • MIL-OSI USA: In Bipartisan Push, Maryland, Virginia Lawmakers Call on President to Address Venezuelan Crab Imports

    Source: United States House of Representatives – Congressman C.A. Dutch Ruppersberger (2nd District of Maryland)

    WASHINGTON – Today, U.S. Senators Chris Van Hollen, Ben Cardin (both D-Md.), Mark Warner, and Tim Kaine (both D-Va.) along with U.S. Representatives Dutch Ruppersberger (D-Md.), John Sarbanes (D-Md.), Rob Wittman (R-Va.), Andy Harris (R-Md.), Kweisi Mfume (D-Md.), David Trone (D-Md.), and Glenn Ivey (D-Md.) wrote to President Joe Biden outlining their concerns with the recent surge of crabmeat imports from Venezuela and its impact on the Chesapeake Bay region’s seafood economy as well as public health. In their letter, the lawmakers urge the President to launch an investigation through the International Trade Commission into the harm that these imports pose to our domestic seafood industry, and press the Administration to encourage a fairer seafood trade relationship. 

     “We write to express our significant concerns with the influx of crabmeat from Venezuela, which has threatened the viability of local fisheries across the Chesapeake Bay. Domestic seafood producers in Maryland and Virginia have experienced significant strain due to the influx of imported Venezuelan crabmeat, some of which is mislabeled and contaminated. In 2018, Venezuelan crabmeat mislabeled as originating from Maryland caused an outbreak of foodborne illnesses, resulting in multiple hospitalizations,” the lawmakers began.

    Highlighting the economic damage caused by Venezuelan imports, they wrote, “Since then, the supply of imported crabmeat has increased, threatening the future livelihood of domestic industry and creating the conditions for a 62 percent decrease in the domestic supply. This has harmed crab fishing industries throughout the Chesapeake Bay, which produces 50 percent of the United States’ total blue crab harvest, a proportion that is now diminishing year over year. There are now fewer than 20 Maryland crab picking and seafood processing companies, down from 53 in 1995.”

    They go on to urge the President to:

    1. Direct the United States International Trade Commission to conduct an investigation, per Section 201 of the Trade Act of 1974, looking into the harm caused by Venezuelan crabmeat imports and recommending remedies.
    2. Use the full array of informal actions available to you to address this trade issue, including through negotiations, utilization of World Trade Organization Committees, bilateral dialogues, and other activities.

    The full text of the letter is available here and below. 

    Dear President Biden: 

    We write to express our significant concerns with the influx of crabmeat from Venezuela, which has threatened the viability of local fisheries across the Chesapeake Bay. Domestic seafood producers in Maryland and Virginia have experienced significant strain due to the influx of imported Venezuelan crabmeat, some of which is mislabeled and contaminated. In 2018, Venezuelan crabmeat mislabeled as originating from Maryland caused an outbreak of foodborne illnesses, resulting in multiple hospitalizations. Since then, the supply of imported crabmeat has increased, threatening the future livelihood of domestic industry and creating the conditions for a 62 percent decrease in the domestic supply. This has harmed crab fishing industries throughout the Chesapeake Bay, which produces 50 percent of the United States’ total blue crab harvest, a proportion that is now diminishing year over year. There are now fewer than 20 Maryland crab picking and seafood processing companies, down from 53 in 1995. 

    Chesapeake Bay crab fisheries and processors follow a strict set of regulations to ensure that the Bay remains one of the most sustainable crab fisheries in the world, that the blue crabs harvested there are of the highest quality, and that the industry does no harm to other species. Foreign competitors often confront little or no such regulation. Not only does this imbalance put local fisheries and seafood businesses at a steep disadvantage, it can also put consumers at increased risk. Consumers are often misled about what they are eating, and sometimes even made sick, as was the case when imported Venezuelan crabmeat was linked with multiple cases of Vibrio parahaemolyticus infections. 

    We urge your Administration to use all of the tools at its disposal to remedy this unsustainable situation. Specifically, we urge you to: 

    1. Direct the United States International Trade Commission to conduct an investigation, per Section 201 of the Trade Act of 1974, looking into the harm caused by Venezuelan crabmeat imports and recommending remedies.
    2. Use the full array of informal actions available to you to address this trade issue, including through negotiations, utilization of World Trade Organization Committees, bilateral dialogues, and other activities.  

    The Chesapeake Bay crab industry has faced numerous challenges, and the region has worked hard to preserve the blue crab population over the years. This industry carries unique cultural importance for the broader Mid-Atlantic region, enriching and enhancing the regional culinary landscape. Without the federal government stepping in to protect American manufacturers from unfair competition, they might not make it through this crisis. If they do not, Maryland, Virginia, and the country, will be all the poorer for it. 

    Sincerely,

     ###

    MIL OSI USA News

  • MIL-OSI Europe: JOINT MOTION FOR A RESOLUTION on the misinterpretation of UN resolution 2758 by the People’s Republic of China and its continuous military provocations around Taiwan – RC-B10-0134/2024

    Source: European Parliament

    Michael Gahler, Miriam Lexmann, Sebastião Bugalho, Rasa Juknevičienė, Danuše Nerudová
    on behalf of the PPE Group
    Yannis Maniatis, Kathleen Van Brempt, Tonino Picula
    on behalf of the S&D Group
    Joachim Stanisław Brudziński, Adam Bielan, Mariusz Kamiński, Charlie Weimers, Michał Dworczyk, Alexandr Vondra, Veronika Vrecionová, Ondřej Krutílek, Rihards Kols, Maciej Wąsik, Sebastian Tynkkynen, Alberico Gambino, Bert‑Jan Ruissen, Carlo Fidanza
    on behalf of the ECR Group
    Engin Eroglu, Petras Auštrevičius, Helmut Brandstätter, Dan Barna, Veronika Cifrová Ostrihoňová, João Cotrim De Figueiredo, Bernard Guetta, Svenja Hahn, Ľubica Karvašová, Karin Karlsbro, Moritz Körner, Nathalie Loiseau, Jan‑Christoph Oetjen, Ana Vasconcelos, Dainius Žalimas
    on behalf of the Renew Group
    Markéta Gregorová
    on behalf of the Verts/ALE Group

    European Parliament resolution on the misinterpretation of UN resolution 2758 by the People’s Republic of China and its continuous military provocations around Taiwan

    (2024/2891(RSP))

    The European Parliament,

     having regard to its previous resolutions on the People’s Republic of China (PRC) and Taiwan,

     having regard to its resolution of 16 September 2021 on a new EU-China strategy[1],

     having regard to its recommendation of 21 October 2021 to the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy on EU-Taiwan political relations and cooperation[2],

     having regard to its resolution of 7 June 2022 on the EU and the security challenges in the Indo-Pacific[3],

     having regard to its resolution of 15 September 2022 on the situation in the Strait of Taiwan[4],

     having regard to its resolution of 13 December 2023 on EU-Taiwan trade and investment relations[5],

     having regard to the Strategic Compass for Security and Defence, approved by the Council on 21 March 2022,

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 16 September 2021 entitled ‘The EU strategy for cooperation in the Indo-Pacific’ (JOIN(2021)0024),

     having regard to the EU’s ‘One China’ policy,

     having regard to the EU-China summit of 7 December 2023,

     having regard to the European Council conclusions on China of 30 June 2023,

     having regard to the visits of the Committee on Foreign Affairs of 25 to 27 July 2023 and of the Committee on International Trade of 19 to 21 December 2022 to Taiwan,

     having regard to the statement of 1 September 2024 by the Spokesperson of the High Representative of the Union for Foreign Affairs and Security Policy on the latest dangerous actions in the South China Sea,

     having regard to the statements by the Spokesperson of the High Representative of the Union for Foreign Affairs and Security Policy on China’s military drills around Taiwan, including the most recent statement of 14 October 2024,

     having regard to the G7 Foreign Ministers’ statements of 18 April 2023 and of 3 August 2022 on preserving peace and stability across the Taiwan Strait,

     having regard to the statement by the Chair of the G7 Foreign Ministers’ Meeting of 23 September 2024,

     having regard to the joint declaration by the G7 Defence Ministers of 19 October 2024,

     having regard to the urgency motion on Taiwan passed by the Australian Senate on 21 August 2024,

     having regard to UN General Assembly Resolution 2758 (XXVI) of 25 October 1971,

     having regard to the motion on UN Resolution 2758 passed by the Dutch House of Representatives on 12 September 2024,

     having regard to the press statement by the US Department of State of 13 October 2024,

     having regard to the UN Convention on the Law of the Sea (UNCLOS),

     having regard to Article 7 of the UN Framework Convention on Climate Change (UNFCCC), concluded on 9 May 1992,

     having regard to Rule 5 of the Standing Rules of Procedure of the Assembly of the International Civil Aviation Organization (ICAO),

     having regard to Article 4 of the Constitution of the International Criminal Police Organization (Interpol),

     having regard to Article 8 and Article 18(h) of the Constitution of the World Health Organization (WHO),

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

    A. whereas UN Resolution 2758 was passed by the UN General Assembly on 25 October 1971 and shifted the official recognition from the Republic of China (Taiwan) to the People’s Republic of China (PRC); whereas today Taiwan, while not being a member of the United Nations, maintains diplomatic relations with 11 of the 193 United Nations member states, as well as with the Holy See;

    B. whereas the EU and Taiwan are like-minded partners that share the common values of freedom, democracy, human rights and the rule of law; whereas Taiwan is a vibrant democracy, with a flourishing civil society; whereas Taiwan held peaceful and well-organised elections on 13 January 2024;

    C. whereas following the adoption of UN Resolution 2758, Taiwan lost its access to participation in multilateral forums, such as the WHO;

    D. whereas Taiwan has never been part of the PRC; whereas the Republic of China was established in 1912 and the PRC in 1949;

    E. whereas UN Resolution 2758 addresses the status of the PRC, but does not determine that the PRC enjoys sovereignty over Taiwan, nor does it make any judgement on the future inclusion of Taiwan in the UN or any other international organisation; whereas, however, the PRC continues to misinterpret UN Resolution 2758 to block Taiwan’s meaningful participation in international organisations and unilaterally change the status quo; whereas these actions highlight the PRC’s ambition to alter the existing multilateral international order and undermine international law, and can be seen as an expression of systemic rivalry;

    F. whereas the EU continues to maintain its own ‘One China’ policy, which is different from the PRC’s ‘One China’ principle; whereas the EU’s long-standing position has been to support the status quo and a peaceful resolution of differences across the Taiwan Strait, while encouraging dialogue and constructive engagement;

    G. whereas through their statement of 23 September 2024 the G7 members, among other things, underlined their support for ‘Taiwan’s meaningful participation in international organizations as a member where statehood is not a prerequisite and as an observer or guest where it is’;

    H. whereas supporting Taiwan’s participation in international organisations does not undermine the EU’s commitment to its ‘One China’ policy, which remains the political foundation of EU-China relations;

    I. whereas over the past decade the PRC has persistently tried to increase its influence over international institutions, using this to sideline Taiwan and prevent Taiwanese passport holders, including journalists, non-governmental organisation workers and political activists, from accessing international institutions; whereas the PRC exercises transnational repression by misusing extradition treaties to target Taiwanese people abroad and therefore put them at risk of arbitrary persecution and human rights abuses;

    J. whereas the statutes of most international organisations tasked to address global issues, including the WHO, the UNFCCC, Interpol and the ICAO, provide opportunities for entities such as Taiwan to participate without infringing on the rights of member states;

    K. whereas Taiwan has consistently demonstrated a peaceful and cooperative attitude globally, has significantly enhanced global developments and thus could contribute greatly to the work of various international organisations;

    L. whereas the PRC is a one-party state that is entirely controlled and ruled by the Chinese Communist Party;

    M. whereas in a speech on Taiwan’s national day of 10 October 2024, Taiwan’s President Lai Ching-te stated that the PRC has ‘no right to represent Taiwan’ and reiterated that the two sides are ‘not subordinate’ to each other; whereas the PRC has justified its recent military exercise by claiming that President Lai Ching-te is pursuing a separatist strategy;

    N. whereas on 14 October 2024 the PRC launched a large-scale military drill, named Joint Sword-2024B, that simulated a blockade of Taiwan; whereas during this exercise a record number of 153 PRC aircraft,18 warships and 17 PRC coastguard ships were detected around Taiwan;

    O. whereas during the exercises four formations of the PRC coastguard patrolled the island and briefly entered its restricted waters; whereas the very frequent deployment of the coastguard by the PRC in the Strait in what the PRC considers ‘law enforcement’ missions is putting constant pressure on the Taiwanese authorities and causing a dangerous increase in the risk of collisions, in what is one of the most concrete indications of the PRC’s intention to erode the status quo; whereas the exercises launched on 14 October 2024 were the fourth round of large-scale war games by the PRC in just over two years;

    P. whereas these activities were condemned by Taiwan as an ‘unreasonable provocation’ and are the latest in a series of war games conducted by the PRC against Taiwan; whereas these military drills came days after Lai Ching-te, Taiwan’s new president, gave a speech vowing to protect Taiwan’s sovereignty in the face of challenges from the PRC;

    Q. whereas the median line, which was set up in a decades-old tacit agreement between both sides of the Taiwan Strait, was designed to reduce the risk of conflict by keeping the military aircraft from both sides of the Strait at a safe distance and thus prevent fatal miscalculations; whereas the PRC’s People’s Liberation Army violated the median line only four times between 1954 and 2020, but now routine incursions reflect Beijing’s intent to irreversibly reset long-standing benchmarks;

    R. whereas the press statements by the High Representative of the Union for Foreign Affairs and Security Policy and the US Department of State reaffirm that peace and stability in the Taiwan Strait are of strategic importance for regional and global security and prosperity; whereas the High Representative’s statement recalls the need to preserve the status quo in the Taiwan Strait, opposes any unilateral actions that change the status quo by force or coercion and calls on all parties to exercise restraint and avoid any actions that may further escalate cross-Strait tensions;

    S. whereas on 23 May 2024 the PRC launched a military drill called Joint Sword-2024A, just days after the inauguration of Lai Ching-te as the new President of Taiwan;

    T. whereas over the past few years the PRC has held similar military drills around Taiwan; whereas these military drills have increased in intensity and have been moved closer and closer to Taiwan’s mainland; whereas during a previous drill in August 2022 the PRC also fired missiles into Japan’s exclusive economic zone;

    U. whereas on top of military pressure the PRC has long been pursuing a sophisticated strategy of targeting Taiwan with foreign information manipulation and interference (FIMI), including hybrid and cyberattacks with the goal of undermining Taiwan’s democratic society;

    V. whereas the PRC, under the leadership of Xi Jinping, has said that it will not renounce the use of force to seek unification with Taiwan;

    W. whereas the PRC’s 2005 Anti-Secession Law includes the use of non-peaceful means, triggered by ambiguous thresholds, to achieve what the PRC calls ‘unification’ with Taiwan; whereas such military action is a grave threat to the security and stability of the entire region, with potentially dire global consequences; whereas EU and US deterrence is of strategic importance to dissuade the PRC from undertaking any unilateral action against Taiwan;

    X. whereas the PRC’s increasingly aggressive behaviour, in particular in its own neighbourhood, such as the Taiwan Strait and the South China Sea, poses a risk to regional and global security; whereas since 2019 the PRC has violated the Taiwanese air defence identification zone (ADIZ) with increasing regularity; whereas the PRC has been behaving aggressively across vast areas of the Indo-Pacific and exerting varying degrees of military or economic coercion, which has led to disputes with neighbours such as Japan, India, the Philippines and Australia;

    Y. whereas the EU has condemned the dangerous actions conducted by Chinese coastguard vessels against lawful Philippine maritime operations in the South China Sea on 31 August 2024; whereas this incident is the latest in a series of actions endangering the safety of life at sea and violating the right to freedom of navigation and overflight in compliance with international law; whereas maritime security and freedom of navigation must be ensured in accordance with international law and, in particular, UNCLOS;

    Z. whereas the PRC is supporting Russia’s war of aggression against Ukraine, in particular through the export of dual-use goods to Russia and the ongoing involvement of PRC-based companies in sanctions evasion and circumvention;

    AA. whereas as a permanent member of the UN Security Council, the PRC has a responsibility to work for peace and stability in the region, and particularly in the Taiwan Strait;

    AB. whereas through its 2021 strategy for cooperation in the Indo-Pacific, the EU and its Member States increased their presence in the region, including through a higher military presence of certain Member States and the continued passage of military ships through the Taiwan Strait;

    AC. whereas Taiwan is located in a strategic position in terms of trade, notably in high-tech supply chains; whereas the Taiwan Strait is the primary route for ships travelling from China, Japan, South Korea and Taiwan towards Europe; whereas Taiwan dominates semiconductor manufacturing markets, as its producers manufacture around 50 % of the world’s semiconductor output; whereas the EU’s strategy for cooperation in the Indo-Pacific argues for increasing trade and investment cooperation with Taiwan;

    AD. whereas the EU is Taiwan’s fourth largest trading partner after the PRC, the United States and Japan; whereas in 2022 Taiwan was the EU’s 12th largest trading partner; whereas the EU is the largest source of foreign direct investment in Taiwan; whereas Taiwanese investments in the EU remain below their potential;

    AE. whereas members of the Australian Senate and of the Dutch House of Representatives have recently adopted motions concerning the distortion of UN Resolution 2758 by the PRC and called for support for Taiwan’s greater participation in multilateral organisations;

    1. Reiterates that Taiwan is a key EU partner and a like-minded democratic friend in the Indo-Pacific region; commends Taiwan and the Taiwanese people for their strong democracy and vibrant civil society, demonstrated once more by the peaceful and well-organised elections of 13 January 2024;

    2. Opposes the PRC’s constant distortion of UN Resolution 2758 and its efforts to block Taiwan’s participation in multilateral organisations; calls for the EU and its Member States to support Taiwan’s meaningful participation in relevant international organisations such as the WHO, the ICAO, Interpol and the UNFCCC; further calls on the UN Secretariat to grant Taiwanese nationals and journalists the right to access UN premises for visits, meetings and newsgathering activities;

    3. Strongly condemns the PRC’s unwarranted military exercises of 14 October 2024, its continued military provocations against Taiwan and its continued military build-up, which is changing the balance of power in the Indo-Pacific, and reiterates its firm rejection of any unilateral change to the status quo in the Taiwan Strait; lauds the restraint and disciplined reaction of the Taiwanese authorities and calls for regular exchanges between the EU and its Taiwanese counterparts on relevant security issues;

    4. Reaffirms its strong commitment to the status quo in the Taiwan Strait; underlines that any attempt to unilaterally change the status quo in the Taiwan Strait, particularly by means of force or coercion, will not be accepted and will be met with a decisive and firm reaction;

    5. Underlines that UN Resolution 2758 takes no position on Taiwan; strongly rejects and refutes the PRC’s attempts to distort history and international rules;

    6. Reiterates the EU’s commitment to its ‘One China’ policy as the political foundation of EU-China relations; recalls that the EU’s China strategy emphasises that constructive cross-strait relations are part of promoting peace and security in the whole Asia-Pacific region and that the EU supports initiatives aimed at dialogue and confidence-building;

    7. Underlines that in Taiwan it is up to the people to democratically decide how they want to live and that the status quo in the Taiwan Strait must not be unilaterally changed by the use or threat of force;

    8. Reiterates its strong condemnation of statements by Chinese President Xi Jinping that the PRC will never renounce the right to use force with respect to Taiwan; underlines that the PRC’s use of force or threats or other highly coercive measures to achieve unification is incompatible with international law; expresses grave concern over the PRC’s use of hostile disinformation to undermine trust in Taiwan’s democracy and governance; reiterates its previous calls for the EU and its Member States to cooperate with international partners in helping to sustain democracy in Taiwan, keeping it free from foreign interference and threats; underlines that only Taiwan’s democratically elected government can represent the Taiwanese people on the international stage;

    9. Condemns the PRC’s systematic grey-zone military actions, including cyber and disinformation campaigns against Taiwan, and urges the PRC to halt these activities immediately; calls, in this regard, for cooperation between the EU and Taiwan to be deepened further to enhance structural cooperation on countering disinformation and foreign interference; welcomes the posting of a liaison officer at the European Economic and Trade Office in Taiwan to coordinate joint efforts to tackle disinformation and interference as a first important step towards deeper EU-Taiwan cooperation, and calls for the EU to further deepen cooperation with Taiwan in this key area; praises the courage of the Taiwanese people and the proportionate and dignified reactions of the Taiwanese authorities and institutions in the face of intensifying Chinese threats and activities;

    10. Firmly rejects the PRC’s economic coercion against Taiwan and other countries, as well as against EU Member States, and underlines that such practices are not only illegal under World Trade Organization rules, but that they also have a devastating effect on the PRC’s reputation around the world and will lead to a further loss of trust in the PRC as a responsible actor; stresses the independent right of the EU and its Member States to develop relations with Taiwan in line with their interests and shared values of democracy and human rights without foreign interference; calls on EU and Member State missions abroad to address and provide alternatives to malign PRC business practices, especially in the Global South;

    11. Is very concerned at the adoption of the so-called guidelines for punishing ‘diehard Taiwan independence separatists’ for committing crimes of secession and the incitement of secession jointly announced by the Supreme People’s Court, the Supreme People’s Procuratorate, the ministries for public security and state security and the justice ministry in June 2024, which could lead to harsh punishments for the crime of secession, up to and including the death penalty; strongly condemns the sentencing of one Taiwanese activist to nine years in prison in September 2024 after his arrest in the PRC in 2022, as well as the constant harassment of Taiwanese people working and living in the PRC;

    12. Is seriously concerned about the situation in the East and South China Seas; recalls the importance of respecting international law, including UNCLOS and, in particular, its provisions on the obligation to settle disputes by peaceful means and on maintaining the freedom of navigation and overflight; calls on all countries that have not done so to swiftly ratify UNCLOS; calls for the EU and its Member States to step up their own maritime capacities in the region; reminds the PRC of its responsibilities, as a permanent member of the UN Security Council, to uphold international law and emphasises the obligation to resolve disputes peacefully;

    13. Reaffirms its grave concerns about China’s increasing military investments and capabilities; expresses grave concerns about the renewed Chinese and Russian commitment to further strengthen their military ties and condemns the Chinese supply of components and equipment to Moscow’s military industry; welcomes the Council decision to impose sanctions on Chinese companies for supporting Russia’s war against Ukraine; deplores the ‘no limits’ partnership between Russia and the PRC; welcomes the increasing commitment and military presence of the United States in the Indo-Pacific; reiterates its calls for a coordinated approach to deepening EU-US cooperation on security matters, including through transatlantic parliamentary dialogue;

    14. Strongly welcomes the close cooperation and alignment of Taiwan with the EU and the United States in responding to Russia’s war against Ukraine and issuing sanctions in response to this blatant violation of international law; recalls Taiwan’s help in addressing the humanitarian crisis caused by Russia’s war of aggression against Ukraine and its continuous involvement and support for the Ukrainian government and countries hosting Ukrainian refugees;

    15. Highlights that the PRC’s various actions in the field of cognitive and legal warfare are slowly undermining the status quo, as well as intensifying grey-zone activities that are intended to circumvent detection, existing laws and response thresholds; calls for the EU to establish and enforce its redlines through its toolbox of sanctions, including sectoral sanctions, against hybrid activities and cyberthreats, and to coordinate strong diplomatic and economic deterrence measures with liked-minded partners;

    16. Expresses its gratitude for Taiwan’s help and assistance during the COVID-19 pandemic;

    17. Recognises the importance of Taiwan in securing global supply chains, especially in the high-tech sector where Taiwan is the leading producer of semiconductors, and calls for the EU and its Member States to engage in closer cooperation with Taiwan;

    18. Calls on the Commission to launch, without delay, preparatory measures for negotiations on a bilateral investment agreement, or other kinds of agreement, with Taiwan; highlights the potential for cooperation on foreign direct investment screening policy and on tackling economic coercion and retaliation;

    19. Applauds the increase in freedom of navigation exercises conducted by several EU countries, including France, the Netherlands and Germany; notes that these activities are in line with international law and calls for more cooperation and coordination with regional partners in order to increase freedom of navigation operations in the region;

    20. Welcomes visits by former and current Taiwanese politicians to Europe, including the recent visit of former President Tsai Ing-wen to the European Parliament on 17 October 2024; welcomes, furthermore, continued exchanges of its Members with Taiwan and encourages further visits of official European Parliament delegations to Taiwan; additionally encourages further exchanges between the EU and Taiwan at all levels, including political meetings and people-to-people encounters;

    21. Encourages, in this light, increased economic, scientific and cultural interactions and exchanges, focusing, among other areas, on youth, academia, civil society, sports, culture and education, as well as city-to-city and region-to-region partnerships; reiterates its call on the Member States to engage in meaningful and structural technical cooperation with Taiwan’s National Fire Agency and National Police Agency and with local administrations in the field of civil protection and disaster management;

    22. Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and the governments of the People’s Republic of China and Taiwan.

     

     

    MIL OSI Europe News

  • MIL-OSI Europe: Briefing – Multilateral development banks: State of play and reform proposals – 23-10-2024

    Source: European Parliament

    Multilateral development banks (MDBs) are supranational financial institutions that support developing countries to help them achieve various goals. While the support is primarily financial, many MDBs have accumulated a good deal of experience, which allows them to propose non financial services too, such as policy advice, capacity building, technical assistance and training. MDBs are a key element in the multilateral development system. This wide-ranging remit, as well as the fact that MDBs are able to pursue public policy goals at minimal fiscal cost to member governments, explains the success of these institutions over the past 80 years, as well as their growing number: today, there are more than 20 MDBs around the world. Although their members, clients and goals may differ, MDBs share common characteristics, play similar roles, and conform broadly to the same institutional model. In the past decade, MDBs have been facing several challenges, both from within (legacy MDBs competing for relevance with other, newer MDBs) and outside their system (new needs and goals, such as contributing to the fight against climate change). Several countries, non-governmental organisations and think tanks have called for these banks to change in order to adapt to this new environment. Important discussions have been taking place among stakeholders. While discussions are ongoing, several MDBs are committed to reform.

    MIL OSI Europe News

  • MIL-OSI Asia-Pac: English Translation of Prime Minister’s Remarks at the Open Plenary of the 16th BRICS Summit

    Source: Government of India

    Posted On: 23 OCT 2024 5:22PM by PIB Delhi

    Your Highness,
    Excellencies,

    Ladies and Gentlemen,

    Congratulations to President Putin for the excellent organisation of the 16th BRICS Summit.

    And, once again, a warm welcome to all the new friends who have joined BRICS. In its new avatar, BRICS accounts for 40 per cent of the world’s humanity and about 30 per cent of the global economy.

    In the last nearly two decades, BRICS has achieved many milestones.I am confident that in the times to come, this organisation will emerge as a more effective medium to face global challenges.

    I would also like to convey warm greetings to Her Excellency Dilma Rousseff, President of the New Development Bank.

    Friends,

    In the last ten years, this bank has emerged as an important option for the development needs of the countries of the Global South.The opening of GIFT or Gujarat International Finance Tech City in India as well as regional centres in Africa and Russia has boosted the activities of this bank. And, development projects worth about USD 35 billion have been sanctioned. NDB should continue to work on the basis of the demand driven principle. And, while expanding the bank, ensuring long-term financial sustainability, healthy credit rating and market access should remain a priority.

    Friends,

    In its new expanded avatar, BRICS has emerged as an economy of more than USD 30 trillion dollars.The BRICS Business Council and the BRICS Women Business Alliance have played a special role in increasing our economic cooperation.

    This year, the consensus reached within BRICS on WTO reforms, trade facilitation in Agriculture, resilient supply chains, e-commerce and Special Economic Zones will strengthen our economic cooperation.Amidst all these initiatives, we should also focus on the interests of small and medium scale industries.

    I am pleased that the BRICS Startup Forum proposed during India’s presidency in 2021 will be launched this year. The Railway Research Network initiative taken by India is also playing an important role in increasing logistics and supply chain connectivity among BRICS countries. This year, the consensus reached by BRICS countries, in collaboration with UNIDO, to prepare a skilled work force for Industry 4.0 is quite significant.

    The BRICS Vaccine R&D Centre launched in 2022 is helping increase health security in all the countries. We would be happy to share India’s successful experience in Digital Health with BRICS partners.

    Friends,

    Climate Change has been a subject of our common priority.

    The consensus reached for the BRICS Open Carbon Market Partnership under Russia’s presidency is welcome. In India too, special emphasis is being laid on green growth, climate resilient infrastructure and green transition. Indeed, India has taken up several initiatives like the International Solar Alliance, Coalition for Disaster Resilient Infrastructure, Mission LiFE i.e. Lifestyle for Environment, Ek Ped Maa Ke Naam or a Tree in the name of mother.

    Last year, during COP-28, we started an important initiative called Green Credit.I invite BRICS partners to join these initiatives.

    Special emphasis is being laid on the construction of infrastructure in all BRICS countries.

    We have established a digital platform called the Gati-Shakti portal to rapidly expand multi-modal connectivity in India. This has helped in integrated infrastructure development planning and implementation and has reduced logistics costs.

    We will be happy to share our experiences with all of you.

    Friends,

    We welcome efforts to increase financial integration among BRICS countries.

    Trade in local currencies and smooth cross-border payments will strengthen our economic cooperation. The Unified Payments Interface (UPI) developed by India is a huge success story and has been adopted in many countries.

    Last year, together with His Highness Sheikh Mohamed, it was launched in the UAE as well. We can also cooperate with other BRICS countries in this area.

    Friends,

    India is fully committed to increasing cooperation under BRICS.

    Our strong belief in our diversity and multipolarity is our strength. This strength of ours, and our shared belief in humanity, will help in giving a meaningful shape to a prosperous and a bright future for the generations to come.

    I thank everyone for today’s very important and valuable discussions.

    As the next President of BRICS, I extend my heartfelt best wishes to President Lula. India will give its full support for the success of your BRICS presidency.

    Once again, many thanks to President Putin and all the leaders.

    DISCLAIMER – This is the approximate translation of Prime Minister’s remarks. Original remarks were delivered

    MIL OSI Asia Pacific News

  • MIL-OSI: QCR Holdings, Inc. Announces Net Income of $27.8 Million for the Third Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter 2024 Highlights

    • Net income of $27.8 million, or $1.64 per diluted share
    • Adjusted net income of $30.3 million or $1.78 per diluted share (non-GAAP) resulting in an adjusted ROAA (non-GAAP) of 1.35%
    • Significant increase in net interest income of $3.6 million from the prior quarter, or 6%
    • Net interest margin expanded by 8 basis points to 3.34% adjusted NIM (TEY) (non-GAAP)
    • Continued strong capital markets revenue of $16.3 million
    • Tangible book value (non-GAAP) per share grew $2.35, or 20% annualized
    • TCE/TA ratio (non-GAAP) improved 24 basis points to 9.24%

    MOLINE, Ill., Oct. 23, 2024 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $27.8 million and diluted earnings per share (“EPS”) of $1.64 for the third quarter of 2024, compared to net income of $29.1 million and diluted EPS of $1.72 for the second quarter of 2024.

    Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2024 were $30.3 million and $1.78, respectively. For the second quarter of 2024, adjusted net income (non-GAAP) was $29.3 million and adjusted diluted EPS (non-GAAP) was $1.73. For the third quarter of 2023, adjusted net income (non-GAAP) was $25.4 million, and adjusted diluted EPS (non-GAAP) was $1.51.

      For the Quarter Ended  
      September 30, June 30, September 30,  
    $ in millions (except per share data) 2024 2024 2023  
    Net Income $ 27.8 $ 29.1 $ 25.1  
    Diluted EPS $ 1.64 $ 1.72 $ 1.49  
    Adjusted Net Income (non-GAAP)* $ 30.3 $ 29.3 $ 25.4  
    Adjusted Diluted EPS (non-GAAP)* $ 1.78 $ 1.73 $ 1.51  
     

    *Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

    “We produced exceptional third quarter results, highlighted by our significant growth in net interest income and margin expansion. We also had another quarter of strong capital markets and wealth management revenue,” said Larry J. Helling, Chief Executive Officer. “In addition, we grew core deposits, maintained our excellent asset quality, and significantly increased our tangible book value per share.”

    Net Interest Income Grew 6% and Net Interest Margin Expanded 8 Basis Points

    Net interest income for the third quarter of 2024 totaled $59.7 million, an increase of $3.6 million from the second quarter of 2024, driven by strong growth in loans and investments combined with margin expansion. Loan yields increased and funding costs were stable. Loan discount accretion was $463 thousand during the third quarter of 2024, an increase of $195 thousand from the prior quarter.

    Net interest margin (“NIM”) was 2.90% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.37% for the third quarter, as compared to 2.82% and 3.27% for the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.34% for the third quarter of 2024, represented an increase of 8 basis points from 3.26% for the second quarter of 2024.  

    “Our adjusted NIM, on a tax equivalent yield basis (non-GAAP), expanded by 8 basis points from the second quarter to 3.34% and exceeded the upper end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “We are very pleased with another quarter of NIM expansion. Looking ahead, we anticipate continued growth in net interest income and are guiding to further fourth quarter adjusted NIM TEY (non-GAAP) expansion in a range of between 2 to 7 basis points.”

    Strong Noninterest Income Including $16.3 Million of Capital Markets Revenue

    Noninterest income for the third quarter of 2024 totaled $27.2 million, a decrease from $30.9 million in the second quarter of 2024. The Company delivered $16.3 million of capital markets revenue in the quarter compared to $17.8 million in the prior quarter. Capital markets revenue was impacted by a $473 thousand loss from the execution of our third securitization during the quarter, a more modest loss than our prior guidance. Wealth management revenue was $4.5 million for the quarter, a 17% annualized increase from the second quarter. Additionally, the Company recorded $2.2 million of income from bank-owned life insurance policy proceeds in the second quarter of 2024 which did not recur during the third quarter of 2024.

    “Our capital markets business delivered strong results driven by the swap fees from our low-income housing tax credit (“LIHTC”) lending program. The demand for affordable housing remains strong, which supports the sustainability of our LIHTC lending program,” added Mr. Gipple. “Our LIHTC lending pipelines, and the associated capital markets revenue remain robust. Additionally, our wealth management business continues to grow from new client additions and increased assets under management as we expand our market share.”

    During the third quarter, the Company executed a derivative strategy with a notional value of $410 million. These derivatives are designed to safeguard the Company’s regulatory capital ratios against the adverse effects of a significant decline in long-term interest rates. These derivatives are unhedged and are marked-to-market, with gains or losses recorded in noninterest income and reflected as a non-core item. For the quarter, the Company recorded a $414 thousand loss on these derivatives.

    Well Controlled Noninterest Expenses of $53.6 Million Impacted by m2 Equipment Finance Decision

    Noninterest expense for the third quarter of 2024 totaled $53.6 million, compared to $49.9 million for the second quarter and $51.1 million for the third quarter of 2023. The linked-quarter increase was primarily due to the previously announced one-time restructuring and goodwill impairment charges related to the decision to discontinue offering new loans and leases at m2 Equipment Finance, LLC (“m2”).  

    “Our core expenses, excluding m2 one-time charges, were $51.2 million, an increase of $1.3 million, and within our guidance range of $49 to $52 million,” said Mr. Gipple. The linked quarter increase in core expenses for the quarter was primarily driven by higher incentive compensation and advertising expenses. Year-to-date core noninterest expenses remain well controlled, having increased only 2% annually. Excluding the one-time charges and other non-core items, the Company’s adjusted efficiency ratio (non-GAAP) was 58.5% in the third quarter.

    Strong Core Deposit Growth

    During the third quarter of 2024, the Company generated strong deposit growth with core deposits increasing by $166.3 million, or 10.3% annualized, to $6.6 billion. “Year-to-date, core deposits have increased by $398.3 million, which is an annualized growth rate of 8.5%. This is a result of our dedication to expanding market share and building new relationships in our markets,” added Mr. Helling.

    Continued Loan Growth

    During the third quarter of 2024, the Company’s total loans and leases held for investment increased by $53.5 million to $6.7 billion. At quarter end, the Company held $165.9 million of LIHTC loans held for sale in anticipation of the Company’s next loan securitization.

    “Our year-to-date total loan growth excluding the impact of the loans securitized during the third quarter, is 10.5% annualized which was just above our guidance range. Year-to-date loan growth, net of loans securitized, was 5.8% annualized”, added Mr. Helling. “With the continued strength of our markets and healthy pipeline, we are maintaining our loan growth target for the full year 2024 of 8% to 10%, prior to the loan securitizations closed in the third quarter and planned for in the fourth quarter.”  

    Asset Quality Remains Excellent

    The Company’s nonperforming assets (“NPAs”) to total assets ratio was 0.39% on September 30, 2024, unchanged from the prior quarter. NPAs totaled $35.7 million at the end of the third quarter of 2024, a $1.2 million increase from the prior quarter.

    The Company’s total criticized loans, a leading indicator of asset quality, declined by $15.3 million on a linked-quarter basis, and the ratio of criticized loans to total loans and leases as of September 30, 2024, improved to 2.20%, as compared to 2.41% as of June 30, 2024. This marks the fourth consecutive quarter of improvement, resulting in a $50 million reduction in total criticized balances.

    The Company recorded a total provision for credit losses of $3.5 million during the quarter, representing a decline of $2.0 million from the prior quarter. The reduction in the provision for credit losses during the quarter was primarily due to overall credit quality improvements. Net charge-offs were $3.4 million during the third quarter of 2024, an increase of $1.8 million from the prior quarter. The increase in net charge offs primarily resulted from loans and leases at m2. The allowance for credit losses to total loans held for investment decreased to 1.30% from 1.33% as of the prior quarter.

    Continued Strong Capital Levels and Outstanding Tangible Book Value Expansion

    As of September 30, 2024, the Company’s tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) increased to 9.24%. The improvement in TCE was driven by strong earnings and an increase in accumulated other comprehensive income (“AOCI”). The total risk-based capital ratio decreased to 13.87% and the common equity tier 1 ratio decreased to 9.79% due to sizable loan and investment growth partially offset by strong earnings. By comparison, these ratios were 9.00%, 14.21%, and 9.92%, respectively, as of June 30, 2024. The Company remains focused on growing its regulatory capital and targeting TCE (non-GAAP) in the top quartile of its peer group.

    The Company’s tangible book value per share (non-GAAP) increased significantly by $2.35, or 20% annualized, during the third quarter of 2024. AOCI increased $12.1 million during the third quarter primarily due to declining interest rates. Tangible book value per share (non-GAAP) has grown by $5.19 year-to-date, for an annualized growth rate of nearly 16%. The combination of strong earnings, a modest dividend, and improved AOCI contributed to the improvement in tangible book value per share (non-GAAP).

    Conference Call Details
    The Company will host an earnings call/webcast tomorrow, October 24, 2024, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through October 31, 2024. The replay access information is 877-344-7529 (international 412-317-0088); access code 4892655. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

    About Us
    QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018, and Guaranty Bank, also based in Springfield, Missouri, was acquired by the Company and merged with Springfield First Community Bank in 2022, with the combined entity operating under the Guaranty Bank name. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2024, the Company had $9.1 billion in assets, $6.8 billion in loans and $7.0 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

    Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.  

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

    Contact:
    Todd A. Gipple                                
    President                                
    Chief Financial Officer                        
    (309) 743-7745                                
    tgipple@qcrh.com

       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                 
      As of  
      September 30, June 30, March 31, December 31, September 30,
      2024 2024 2024 2023 2023  
                 
      (dollars in thousands)  
                 
    CONDENSED BALANCE SHEET            
                 
    Cash and due from banks $ 103,840   $ 92,173   $ 80,988   $ 97,123   $ 104,265    
    Federal funds sold and interest-bearing deposits   159,159     102,262     77,020     140,369     80,650    
    Securities, net of allowance for credit losses   1,146,046     1,033,199     1,031,861     1,005,528     896,394    
    Loans receivable held for sale (1)   167,047     246,124     275,344     2,594     278,893    
    Loans/leases receivable held for investment   6,661,755     6,608,262     6,372,992     6,540,822     6,327,414    
    Allowance for credit losses   (86,321 )   (87,706 )   (84,470 )   (87,200 )   (87,669 )  
    Intangibles   11,751     12,441     13,131     13,821     14,537    
    Goodwill   138,596     139,027     139,027     139,027     139,027    
    Derivatives   261,913     194,354     183,888     188,978     291,295    
    Other assets   524,779     531,855     509,768     497,832     495,251    
    Total assets $ 9,088,565   $ 8,871,991   $ 8,599,549   $ 8,538,894   $ 8,540,057    
                 
    Total deposits $ 6,984,633   $ 6,764,667   $ 6,806,775   $ 6,514,005   $ 6,494,852    
    Total borrowings   660,344     768,671     489,633     718,295     712,126    
    Derivatives   285,769     221,798     211,677     214,098     320,220    
    Other liabilities   181,199     180,536     184,122     205,900     184,476    
    Total stockholders’ equity   976,620     936,319     907,342     886,596     828,383    
    Total liabilities and stockholders’ equity $ 9,088,565   $ 8,871,991   $ 8,599,549   $ 8,538,894   $ 8,540,057    
                 
    ANALYSIS OF LOAN PORTFOLIO            
    Loan/lease mix: (2)            
    Commercial and industrial – revolving $ 387,409   $ 362,115   $ 326,129   $ 325,243   $ 299,588    
    Commercial and industrial – other   1,321,053     1,370,561     1,374,333     1,390,068     1,381,967    
    Commercial and industrial – other – LIHTC   89,028     92,637     96,276     91,710     105,601    
    Total commercial and industrial   1,797,490     1,825,313     1,796,738     1,807,021     1,787,156    
    Commercial real estate, owner occupied   622,072     633,596     621,069     607,365     610,618    
    Commercial real estate, non-owner occupied   1,103,694     1,082,457     1,055,089     1,008,892     955,552    
    Construction and land development   342,335     331,454     410,918     477,424     472,695    
    Construction and land development – LIHTC   913,841     750,894     738,609     943,101     921,359    
    Multi-family   324,090     329,239     296,245     284,721     282,541    
    Multi-family – LIHTC   973,682     1,148,244     1,007,321     711,422     874,439    
    Direct financing leases   19,241     25,808     28,089     31,164     34,401    
    1-4 family real estate   587,512     583,542     563,358     544,971     539,931    
    Consumer   144,845     143,839     130,900     127,335     127,615    
    Total loans/leases $ 6,828,802   $ 6,854,386   $ 6,648,336   $ 6,543,416   $ 6,606,307    
    Less allowance for credit losses   86,321     87,706     84,470     87,200     87,669    
    Net loans/leases $ 6,742,481   $ 6,766,680   $ 6,563,866   $ 6,456,216   $ 6,518,638    
                 
    ANALYSIS OF SECURITIES PORTFOLIO            
    Securities mix:            
    U.S. government sponsored agency securities $ 18,621   $ 20,101   $ 14,442   $ 14,973   $ 16,002    
    Municipal securities   965,810     885,046     884,469     853,645     764,017    
    Residential mortgage-backed and related securities   53,488     54,708     56,071     59,196     57,946    
    Asset backed securities   10,455     12,721     14,285     15,423     16,326    
    Other securities   39,190     38,464     40,539     41,115     43,272    
    Trading securities (3)   58,685     22,362     22,258     22,368        
    Total securities $ 1,146,249   $ 1,033,402   $ 1,032,064   $ 1,006,720   $ 897,563    
    Less allowance for credit losses   203     203     203     1,192     1,169    
    Net securities $ 1,146,046   $ 1,033,199   $ 1,031,861   $ 1,005,528   $ 896,394    
                 
    ANALYSIS OF DEPOSITS            
    Deposit mix:            
    Noninterest-bearing demand deposits $ 969,348   $ 956,445   $ 955,167   $ 1,038,689   $ 1,027,791    
    Interest-bearing demand deposits   4,715,087     4,644,918     4,714,555     4,338,390     4,416,725    
    Time deposits   942,847     859,593     875,491     851,950     788,692    
    Brokered deposits   357,351     303,711     261,562     284,976     261,644    
    Total deposits $ 6,984,633   $ 6,764,667   $ 6,806,775   $ 6,514,005   $ 6,494,852    
                 
    ANALYSIS OF BORROWINGS            
    Borrowings mix:            
    Term FHLB advances $ 145,383   $ 135,000   $ 135,000   $ 135,000   $ 135,000    
    Overnight FHLB advances   230,000     350,000     70,000     300,000     295,000    
    Other short-term borrowings   2,750     1,600     2,700     1,500     470    
    Subordinated notes   233,383     233,276     233,170     233,064     232,958    
    Junior subordinated debentures   48,828     48,795     48,763     48,731     48,698    
    Total borrowings $ 660,344   $ 768,671   $ 489,633   $ 718,295   $ 712,126    
                 
    (1) Loans with a fair value of $165.9 million, $243.2 million, $274.8 million and $278.0 million have been identified for securitization and are included in LHFS at September 30, 2024, June 30, 2024, March 31, 2024 and September 30, 2023, respectively.
    (2) Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.0 billion at September 30, 2024.   
    (3) Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.  
                 
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                     
          For the Quarter Ended  
          September 30, June 30, March 31, December 31, September 30,  
          2024 2024 2024 2023 2023  
                     
          (dollars in thousands, except per share data)  
                     
    INCOME STATEMENT              
    Interest income   $ 125,420   $ 119,746 $ 115,049   $ 112,248   $ 108,568    
    Interest expense     65,698     63,583   60,350     56,512     53,313    
    Net interest income     59,722     56,163   54,699     55,736     55,255    
    Provision for credit losses     3,484     5,496   2,969     5,199     3,806    
    Net interest income after provision for credit losses   $ 56,238   $ 50,667 $ 51,730   $ 50,537   $ 51,449    
                     
                     
    Trust fees     $ 3,270   $ 3,103 $ 3,199   $ 3,084   $ 2,863    
    Investment advisory and management fees     1,229     1,214   1,101     1,052     947    
    Deposit service fees     2,294     1,986   2,022     2,008     2,107    
    Gains on sales of residential real estate loans, net     385     540   382     323     476    
    Gains on sales of government guaranteed portions of loans, net         12   24     24        
    Capital markets revenue     16,290     17,758   16,457     36,956     15,596    
    Earnings on bank-owned life insurance     814     2,964   868     832     1,807    
    Debit card fees     1,575     1,571   1,466     1,561     1,584    
    Correspondent banking fees     507     510   512     465     450    
    Loan related fee income     949     962   836     845     800    
    Fair value gain (loss) on derivatives and trading securities     (886 )   51   (163 )   (582 )   (336 )  
    Other       730     218   154     1,161     299    
    Total noninterest income   $ 27,157   $ 30,889 $ 26,858   $ 47,729   $ 26,593    
                     
                     
    Salaries and employee benefits   $ 31,637   $ 31,079 $ 31,860   $ 41,059   $ 32,098    
    Occupancy and equipment expense     6,168     6,377   6,514     6,789     6,228    
    Professional and data processing fees     4,457     4,823   4,613     4,223     4,456    
    Restructuring expense     1,954                  
    FDIC insurance, other insurance and regulatory fees     1,711     1,854   1,945     2,115     1,721    
    Loan/lease expense     587     151   378     834     826    
    Net cost of (income from) and gains/losses on operations of other real estate     (42 )   28   (30 )   38     3    
    Advertising and marketing     2,124     1,565   1,483     1,641     1,429    
    Communication and data connectivity     333     318   401     449     478    
    Supplies       278     259   275     333     335    
    Bank service charges     603     622   568     761     605    
    Correspondent banking expense     325     363   305     300     232    
    Intangibles amortization     690     690   690     716     691    
    Goodwill impairment     432                  
    Payment card processing     785     706   646     836     733    
    Trust expense     395     379   425     413     432    
    Other       1,128     674   617     431     814    
    Total noninterest expense   $ 53,565   $ 49,888 $ 50,690   $ 60,938   $ 51,081    
                     
    Net income before income taxes   $ 29,830   $ 31,668 $ 27,898   $ 37,328   $ 26,961    
    Federal and state income tax expense     2,045     2,554   1,172     4,473     1,840    
    Net income     $ 27,785   $ 29,114 $ 26,726   $ 32,855   $ 25,121    
                     
    Basic EPS   $ 1.65   $ 1.73 $ 1.59   $ 1.96   $ 1.50    
    Diluted EPS   $ 1.64   $ 1.72 $ 1.58   $ 1.95   $ 1.49    
                     
                     
    Weighted average common shares outstanding     16,846,200     16,814,814   16,783,348     16,734,080     16,717,303    
    Weighted average common and common equivalent shares outstanding     16,982,400     16,921,854   16,910,675     16,875,952     16,847,951    
                     
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                 
          For the Nine Months Ended  
          September 30,   September 30,  
          2024   2023  
                 
          (dollars in thousands, except per share data)  
                 
    INCOME STATEMENT          
    Interest income   $ 360,215     $ 301,162    
    Interest expense     189,631       135,892    
    Net interest income     170,584       165,270    
    Provision for credit losses     11,949       11,340    
    Net interest income after provision for credit losses   $ 158,635     $ 153,930    
                 
                 
    Trust fees     $ 9,572     $ 8,613    
    Investment advisory and management fees     3,544       2,812    
    Deposit service fees     6,302       6,169    
    Gains on sales of residential real estate loans, net     1,307       1,288    
    Gains on sales of government guaranteed portions of loans, net     36       30    
    Capital markets revenue     50,505       55,109    
    Securities losses, net           (451 )  
    Earnings on bank-owned life insurance     4,646       3,352    
    Debit card fees     4,612       4,639    
    Correspondent banking fees     1,529       1,197    
    Loan related fee income     2,747       2,221    
    Fair value loss on derivatives and trading securities     (998 )     (680 )  
    Other       1,102       656    
    Total noninterest income   $ 84,904     $ 84,955    
                 
                 
    Salaries and employee benefits   $ 94,576     $ 95,560    
    Occupancy and equipment expense     19,059       18,242    
    Professional and data processing fees     13,893       12,048    
    Post-acquisition compensation, transition and integration costs           207    
    Restructuring expense     1,954          
    FDIC insurance, other insurance and regulatory fees     5,510       5,022    
    Loan/lease expense     1,116       2,034    
    Net cost of (income from) and gains/losses on operations of other real estate       (44 )     (64 )  
    Advertising and marketing     5,172       4,401    
    Communication and data connectivity     1,052       1,614    
    Supplies       812       921    
    Bank service charges     1,793       1,831    
    Correspondent banking expense     993       663    
    Intangibles amortization     2,070       2,222    
    Goodwill impairment     432          
    Payment card processing     2,137       1,820    
    Trust expense     1,199       983    
    Other       2,419       2,089    
    Total noninterest expense   $ 154,143     $ 149,593    
                 
    Net income before income taxes   $ 89,396     $ 89,292    
    Federal and state income tax expense     5,771       8,589    
    Net income     $ 83,625     $ 80,703    
                 
    Basic EPS   $ 4.97     $ 4.82    
    Diluted EPS   $ 4.94     $ 4.79    
                 
                 
    Weighted average common shares outstanding     16,814,787       16,731,847    
    Weighted average common and common equivalent shares outstanding   16,938,309       16,863,203    
                 
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                       
      As of and for the Quarter Ended   For the Nine Months Ended  
      September 30, June 30, March 31, December 31, September 30,
      September 30, September 30,  
      2024 2024 2024 2023 2023   2024 2023  
                       
      (dollars in thousands, except per share data)  
                       
    COMMON SHARE DATA                  
    Common shares outstanding   16,861,108     16,824,985     16,807,056     16,749,254     16,731,646          
    Book value per common share (1) $ 57.92   $ 55.65   $ 53.99   $ 52.93   $ 49.51          
    Tangible book value per common share (Non-GAAP) (2) $ 49.00   $ 46.65   $ 44.93   $ 43.81   $ 40.33          
    Closing stock price $ 74.03   $ 60.00   $ 60.74   $ 58.39   $ 48.52          
    Market capitalization $ 1,248,228   $ 1,009,499   $ 1,020,861   $ 977,989   $ 811,819          
    Market price / book value   127.81 %   107.82 %   112.51 %   100.31 %   98.00 %        
    Market price / tangible book value   151.07 %   128.62 %   135.18 %   133.29 %   120.30 %        
    Earnings per common share (basic) LTM (3) $ 6.93   $ 6.78   $ 6.75   $ 6.78   $ 6.65          
    Price earnings ratio LTM (3) 10.68 x 8.85 x 9.00 x 8.61 x 7.30 x        
    TCE / TA (Non-GAAP) (4)   9.24 %   9.00 %   8.94 %   8.75 %   8.05 %        
                       
                       
    CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY          
    Beginning balance $ 936,319   $ 907,342   $ 886,596   $ 828,383   $ 822,689          
    Net income   27,785     29,114     26,726     32,855     25,121          
    Other comprehensive income (loss), net of tax   12,057     (368 )   (5,373 )   25,363     (19,415 )        
    Common stock cash dividends declared   (1,012 )   (1,008 )   (1,008 )   (1,004 )   (1,003 )        
    Other (5)   1,471     1,239     401     999     991          
    Ending balance $ 976,620   $ 936,319   $ 907,342   $ 886,596   $ 828,383          
                       
                       
    REGULATORY CAPITAL RATIOS (6):                  
    Total risk-based capital ratio   13.87 %   14.21 %   14.30 %   14.29 %   14.48 %        
    Tier 1 risk-based capital ratio   10.33 %   10.49 %   10.50 %   10.27 %   10.30 %        
    Tier 1 leverage capital ratio   10.50 %   10.40 %   10.33 %   10.03 %   9.92 %        
    Common equity tier 1 ratio   9.79 %   9.92 %   9.91 %   9.67 %   9.68 %        
                       
                       
    KEY PERFORMANCE RATIOS AND OTHER METRICS                  
    Return on average assets (annualized)   1.24 %   1.33 %   1.25 %   1.54 %   1.21 %     1.27 %   1.34 %  
    Return on average total equity (annualized)   11.55 %   12.63 %   11.83 %   15.42 %   11.99 %     12.00 %   13.18 %  
    Net interest margin   2.90 %   2.82 %   2.82 %   2.90 %   2.89 %     2.85 %   3.00 %  
    Net interest margin (TEY) (Non-GAAP)(7)   3.37 %   3.27 %   3.25 %   3.32 %   3.31 %     3.30 %   3.37 %  
    Efficiency ratio (Non-GAAP) (8)   61.65 %   57.31 %   62.15 %   58.90 %   62.41 %     60.33 %   59.78 %  
    Gross loans/leases held for investment / total assets   73.30 %   74.48 %   74.11 %   76.60 %   74.09 %     73.30 %   77.36 %  
    Gross loans/leases held for investment / total deposits   95.38 %   97.69 %   93.63 %   100.41 %   97.42 %     95.38 %   101.72 %  
    Effective tax rate   6.86 %   8.06 %   4.20 %   11.98 %   6.82 %     6.46 %   9.62 %  
    Full-time equivalent employees   976     988     986     996     987       976     987    
                       
                       
    AVERAGE BALANCES                  
    Assets $ 8,968,653   $ 8,776,002   $ 8,550,855   $ 8,535,732   $ 8,287,813     $ 8,765,913   $ 8,041,141    
    Loans/leases   6,840,527     6,779,075     6,598,614     6,483,572     6,476,512       6,739,773     6,288,343    
    Deposits   6,858,196     6,687,188     6,595,453     6,485,154     6,342,339       6,714,251     6,272,083    
    Total stockholders’ equity   962,302     921,986     903,371     852,163     837,734       929,341     816,591    
                       
                       
                       
    (1) Includes accumulated other comprehensive income (loss).            
    (2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.    
    (3) LTM : Last twelve months.             
    (4) TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.         
    (5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.    
    (6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.        
    (7) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.           
    (8) See GAAP to Non-GAAP reconciliations.              
                       
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                               
                               
    ANALYSIS OF NET INTEREST INCOME AND MARGIN                        
                               
        For the Quarter Ended  
        September 30, 2024   June 30, 2024   September 30, 2023  
        Average
    Balance
    Interest
    Earned or
    Paid
    Average
    Yield or Cost
      Average
    Balance
    Interest
    Earned or
    Paid
    Average
    Yield or Cost
      Average
    Balance
    Interest
    Earned or
    Paid
    Average
    Yield or Cost
     
                               
        (dollars in thousands)  
                               
    Fed funds sold   $ 12,596 $ 173 5.37 %   $ 13,065 $ 183 5.54 %   $ 21,526 $ 284 5.23 %  
    Interest-bearing deposits at financial institutions   145,597   1,915 5.23 %     80,998   1,139 5.66 %     86,807   1,205 5.51 %  
    Investment securities – taxable   381,285   4,439 4.64 %     377,747   4,286 4.53 %     344,657   3,788 4.38 %  
    Investment securities – nontaxable (1)   760,645   10,744 5.65 %     704,761   9,462 5.37 %     600,693   6,974 4.64 %  
    Restricted investment securities   42,546   840 7.73 %     43,398   869 7.92 %     43,590   659 5.91 %  
    Loans (1)     6,840,527   116,854 6.80 %     6,779,075   112,719 6.69 %     6,476,512   103,428 6.34 %  
    Total earning assets (1) $ 8,183,196 $ 134,965 6.56 %   $ 7,999,044 $ 128,658 6.46 %   $ 7,573,785 $ 116,338 6.10 %  
                               
    Interest-bearing deposits $ 4,739,757 $ 42,180 3.54 %   $ 4,649,625 $ 40,924 3.54 %   $ 4,264,208 $ 33,563 3.12 %  
    Time deposits     1,164,560   13,206 4.51 %     1,091,870   12,128 4.47 %     999,488   10,003 3.97 %  
    Short-term borrowings   2,485   32 5.07 %     1,622   21 5.18 %     1,514   20 5.28 %  
    Federal Home Loan Bank advances   445,632   5,972 5.24 %     464,231   6,238 5.32 %     425,870   5,724 5.26 %  
    Subordinated debentures   233,313   3,616 6.20 %     233,207   3,582 6.14 %     232,890   3,307 5.68 %  
    Junior subordinated debentures   48,806   693 5.56 %     48,774   688 5.58 %     48,678   695 5.59 %  
    Total interest-bearing liabilities $ 6,634,553 $ 65,699 3.93 %   $ 6,489,329 $ 63,581 3.93 %   $ 5,972,648 $ 53,312 3.54 %  
                               
    Net interest income (1)   $ 69,266       $ 65,077       $ 63,026    
    Net interest margin (2)     2.90 %       2.82 %       2.89 %  
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.37 %       3.27 %       3.31 %  
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.34 %       3.26 %       3.28 %  
                               
                               
        For the Nine Months Ended          
        September 30, 2024   September 30, 2023      
        Average Balance Interest Earned or Paid Average Yield or Cost   Average Balance Interest Earned or Paid Average Yield or Cost          
                               
        (dollars in thousands)          
                               
    Fed funds sold   $ 15,196 $ 625 5.40 %   $ 19,267 $ 741 5.14 %          
    Interest-bearing deposits at financial institutions   106,195   4,254 5.35 %     83,783   3,151 5.03 %          
    Investment securities – taxable   377,538   12,986 4.57 %     340,140   10,847 4.24 %          
    Investment securities – nontaxable (1)   717,284   29,557 5.50 %     599,070   19,892 4.43 %          
    Restricted investment securities   41,348   2,383 7.57 %     38,817   1,677 5.70 %          
    Loans (1)     6,739,773   337,244 6.68 %     6,288,343   285,136 6.06 %          
    Total earning assets (1) $ 7,997,334 $ 387,049 6.46 %   $ 7,369,420 $ 321,444 5.83 %          
                               
    Interest-bearing deposits $ 4,639,937 $ 122,207 3.52 %   $ 4,099,789 $ 84,565 2.76 %          
    Time deposits     1,121,508   37,679 4.49 %     1,020,421   27,225 3.57 %          
    Short-term borrowings   1,846   76 5.47 %     3,588   152 5.66 %          
    Federal Home Loan Bank advances   421,782   16,948 5.28 %     311,740   11,898 5.03 %          
    Subordinated debentures   233,207   10,678 6.10 %     232,784   9,922 5.68 %          
    Junior subordinated debentures   48,774   2,074 5.59 %     48,646   2,129 5.77 %          
    Total interest-bearing liabilities $ 6,467,054 $ 189,662 3.91 %   $ 5,716,968 $ 135,891 3.17 %          
                               
    Net interest income (1)   $ 197,387       $ 185,553            
    Net interest margin (2)     2.85 %       3.00 %          
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.30 %       3.37 %          
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.28 %       3.34 %          
                               
                               
    (1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.  
    (2) See “Select Financial Data – Subsidiaries” for a breakdown of amortization/accretion included in net interest margin for each period presented.     
    (3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.            
                               
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                 
                 
      As of  
      September 30, June 30, March 31, December 31, September 30,
      2024 2024 2024 2023 2023  
                 
      (dollars in thousands, except per share data)  
                 
    ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES            
    Beginning balance $ 87,706   $ 84,470   $ 87,200   $ 87,669   $ 85,797    
    Change in ACL for transfer of loans to LHFS   (1,812 )   498     (3,377 )   266     175    
    Credit loss expense   3,828     4,343     3,736     2,519     3,260    
    Loans/leases charged off   (3,871 )   (1,751 )   (3,560 )   (3,354 )   (1,816 )  
    Recoveries on loans/leases previously charged off   470     146     471     100     253    
    Ending balance $ 86,321   $ 87,706   $ 84,470   $ 87,200   $ 87,669    
                 
                 
    NONPERFORMING ASSETS            
    Nonaccrual loans/leases $ 33,480   $ 33,546   $ 29,439   $ 32,753   $ 34,568    
    Accruing loans/leases past due 90 days or more   1,298     87     142     86        
    Total nonperforming loans/leases   34,778     33,633     29,581     32,839     34,568    
    Other real estate owned   369     369     784     1,347     120    
    Other repossessed assets   542     512     962            
    Total nonperforming assets $ 35,689   $ 34,514   $ 31,327   $ 34,186   $ 34,688    
                 
                 
    ASSET QUALITY RATIOS            
    Nonperforming assets / total assets   0.39 %   0.39 %   0.36 %   0.40 %   0.41 %  
    ACL for loans and leases / total loans/leases held for investment   1.30 %   1.33 %   1.33 %   1.33 %   1.39 %  
    ACL for loans and leases / nonperforming loans/leases   248.21 %   260.77 %   285.55 %   265.54 %   253.61 %  
    Net charge-offs as a % of average loans/leases   0.05 %   0.02 %   0.05 %   0.05 %   0.02 %  
                 
                 
                 
    INTERNALLY ASSIGNED RISK RATING (1) (2)            
    Special mention $ 80,121   $ 85,096   $ 111,729   $ 125,308   $ 128,052    
    Substandard (3)   70,022     80,345     70,841     70,425     72,550    
    Doubtful (3)                      
        Total Criticized loans (4) $ 150,143   $ 165,441   $ 182,570   $ 195,733   $ 200,602    
                 
    Classified loans as a % of total loans/leases (3)   1.03 %   1.17 %   1.07 %   1.08 %   1.10 %  
    Total Criticized loans as a % of total loans/leases (4)   2.20 %   2.41 %   2.75 %   2.99 %   3.04 %  
                 
                 
                 
                 
    (1) During the first quarter of 2024, the Company revised the risk rating scale used for credit quality monitoring.  
    (2) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion.  
    (3) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11 (7 or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Substandard or Doubtful.  
    (4) Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 (6, 7, or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.  
                 
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
     
       
                             
                             
          For the Quarter Ended For the Nine Months Ended  
          September 30,   June 30,   September 30,   September 30,   September 30,  
      SELECT FINANCIAL DATA – SUBSIDIARIES   2024   2024   2023   2024   2023  
          (dollars in thousands)  
                             
      TOTAL ASSETS                      
      Quad City Bank and Trust (1)   $ 2,552,962     $ 2,559,049     $ 2,433,084            
      m2 Equipment Finance, LLC     349,166       359,012       336,180            
      Cedar Rapids Bank and Trust     2,625,943       2,428,267       2,442,263            
      Community State Bank     1,519,585       1,531,109       1,417,250            
      Guaranty Bank     2,360,301       2,369,754       2,242,638            
                             
      TOTAL DEPOSITS                      
      Quad City Bank and Trust (1)   $ 2,205,465     $ 2,100,520     $ 1,973,989            
      Cedar Rapids Bank and Trust     1,765,964       1,721,564       1,722,905            
      Community State Bank     1,269,147       1,188,551       1,132,724            
      Guaranty Bank     1,778,453       1,791,448       1,722,861            
                             
      TOTAL LOANS & LEASES                      
      Quad City Bank and Trust (1)   $ 2,090,856     $ 2,107,605     $ 2,005,770            
      m2 Equipment Finance, LLC     353,259       363,897       341,041            
      Cedar Rapids Bank and Trust     1,743,809       1,736,438       1,750,986            
      Community State Bank     1,161,805       1,162,686       1,098,479            
      Guaranty Bank     1,832,331       1,847,658       1,751,072            
                             
      TOTAL LOANS & LEASES / TOTAL DEPOSITS                      
      Quad City Bank and Trust (1)     95 %     100 %     102 %          
      Cedar Rapids Bank and Trust     99 %     101 %     102 %          
      Community State Bank     92 %     98 %     97 %          
      Guaranty Bank     103 %     103 %     102 %          
                             
                             
      TOTAL LOANS & LEASES / TOTAL ASSETS                      
      Quad City Bank and Trust (1)     82 %     82 %     82 %          
      Cedar Rapids Bank and Trust     66 %     72 %     72 %          
      Community State Bank     76 %     76 %     78 %          
      Guaranty Bank     78 %     78 %     78 %          
                             
      ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT                      
      Quad City Bank and Trust (1)     1.49 %     1.49 %     1.50 %          
      m2 Equipment Finance, LLC     4.11 %     3.86 %     3.52 %          
      Cedar Rapids Bank and Trust     1.38 %     1.44 %     1.47 %          
      Community State Bank     1.06 %     1.14 %     1.28 %          
      Guaranty Bank     1.14 %     1.16 %     1.24 %          
                             
      RETURN ON AVERAGE ASSETS                      
      Quad City Bank and Trust (1)     0.76 %     0.88 %     0.97 %     0.81 %     1.00 %  
      Cedar Rapids Bank and Trust     2.52 %     2.94 %     2.28 %     2.84 %     2.95 %  
      Community State Bank     1.46 %     1.26 %     1.38 %     1.33 %     1.43 %  
      Guaranty Bank     1.28 %     1.42 %     1.23 %     1.20 %     1.07 %  
                             
      NET INTEREST MARGIN PERCENTAGE (2)                      
      Quad City Bank and Trust (1)     3.50 %     3.39 %     3.37 %     3.40 %     3.36 %  
      Cedar Rapids Bank and Trust     3.88 %     3.75 %     3.78 %     3.80 %     3.83 %  
      Community State Bank     3.76 %     3.72 %     3.88 %     3.74 %     3.92 %  
      Guaranty Bank (3)     3.12 %     2.99 %     3.06 %     3.03 %     3.22 %  
                             
      ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET                  
      INTEREST MARGIN, NET                      
      Cedar Rapids Bank and Trust   $     $     $     $     $ (8 )  
      Community State Bank     (1 )     (1 )     (1 )     (3 )     69    
      Guaranty Bank     496       301       572       1,194       1,537    
      QCR Holdings, Inc. (4)     (32 )     (32 )     (32 )     (97 )     (97 )  
                             
    (1 ) Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.  
    (2 ) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.      
    (3 ) Guaranty Bank’s net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.94% for the quarter ended September 30, 2024, 2.86% for the quarter ended June 30, 2024 and 2.97% for the quarter ended September 30, 2023.        
    (4 ) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.      
                             
     
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
                           
        As of
        September 30,   June 30,   March 31,   December 31,   September 30,  
    GAAP TO NON-GAAP RECONCILIATIONS   2024   2024   2024   2023   2023  
        (dollars in thousands, except per share data)
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)                      
                           
    Stockholders’ equity (GAAP)   $ 976,620     $ 936,319     $ 907,342     $ 886,596     $ 828,383    
    Less: Intangible assets     150,347       151,468       152,158       152,848       153,564    
    Tangible common equity (non-GAAP)   $ 826,273     $ 784,851     $ 755,184     $ 733,748     $ 674,819    
                           
    Total assets (GAAP)   $ 9,088,565     $ 8,871,991     $ 8,599,549     $ 8,538,894     $ 8,540,057    
    Less: Intangible assets     150,347       151,468       152,158       152,848       153,564    
    Tangible assets (non-GAAP)   $ 8,938,218     $ 8,720,523     $ 8,447,391     $ 8,386,046     $ 8,386,493    
                           
    Tangible common equity to tangible assets ratio (non-GAAP)   9.24 %     9.00 %     8.94 %     8.75 %     8.05 %  
                           
                           
                           
    (1) This ratio is a non-GAAP financial measure. The Company’s management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders’ equity and total assets, which are the most directly comparable GAAP financial measures.  
                           
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
     
       
                                   
    GAAP TO NON-GAAP RECONCILIATIONS   For the Quarter Ended   For the Nine Months Ended  
        September 30,   June 30,   March 31,   December 31,   September 30,   September 30,   September 30,  
    ADJUSTED NET INCOME (1)   2024   2024   2024   2023   2023   2024   2023  
        (dollars in thousands, except per share data)  
                                   
    Net income (GAAP)   $ 27,785     $ 29,114     $ 26,726     $ 32,855     $ 25,121     $ 83,625     $ 80,703    
                                   
    Less non-core items (post-tax) (2):                              
    Income:                              
    Securities gains (losses), net                                         (356 )  
    Fair value gain (loss) on derivatives, net     (542 )     (145 )     (144 )     (460 )     (265 )     (830 )     (537 )  
    Total non-core income (non-GAAP)   $ (542 )   $ (145 )   $ (144 )   $ (460 )   $ (265 )   $ (830 )   $ (893 )  
                                   
    Expense:                              
    Goodwill impairment     432                               432          
    Post-acquisition compensation, transition and integration costs                                         164    
    Restructuring expense     1,544                               1,544        
    Total non-core expense (non-GAAP)   $ 1,976     $     $     $     $     $ 1,976     $ 164    
                                   
    Adjusted net income (non-GAAP) (1)   $ 30,303     $ 29,259     $ 26,870     $ 33,315     $ 25,386     $ 86,431     $ 81,760    
                                   
    ADJUSTED EARNINGS PER COMMON SHARE (1)                              
                                   
    Adjusted net income (non-GAAP) (from above)   $ 30,303     $ 29,259     $ 26,870     $ 33,315     $ 25,386     $ 86,431     $ 81,760    
                                   
    Weighted average common shares outstanding     16,846,200       16,814,814       16,783,348       16,734,080       16,717,303       16,814,787       16,731,847    
    Weighted average common and common equivalent shares outstanding     16,982,400       16,921,854       16,910,675       16,875,952       16,847,951       16,938,309       16,863,203    
                                   
    Adjusted earnings per common share (non-GAAP):                              
    Basic   $ 1.80     $ 1.74     $ 1.60     $ 1.99     $ 1.52     $ 5.14     $ 4.89    
    Diluted   $ 1.78     $ 1.73     $ 1.59     $ 1.97     $ 1.51     $ 5.10     $ 4.85    
                                   
    ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)                              
                                   
    Adjusted net income (non-GAAP) (from above)   $ 30,303     $ 29,259     $ 26,870     $ 33,315     $ 25,386     $ 86,431     $ 81,760    
                                   
    Average Assets   $ 8,968,653     $ 8,776,002     $ 8,550,855     $ 8,535,732     $ 8,287,813     $ 8,765,913     $ 8,041,141    
                                   
    Adjusted return on average assets (annualized) (non-GAAP)     1.35 %     1.33 %     1.26 %     1.56 %     1.23 %     1.31 %     1.36 %  
    Adjusted return on average equity (annualized) (non-GAAP)     12.60 %     12.69 %     11.90 %     15.64 %     12.12 %     12.40 %     13.35 %  
                                   
    NET INTEREST MARGIN (TEY) (3)                              
                                   
    Net interest income (GAAP)   $ 59,722     $ 56,163     $ 54,699     $ 55,736     $ 55,255     $ 170,584     $ 165,270    
    Plus: Tax equivalent adjustment (4)     9,544       8,914       8,377       7,954       7,771       26,803       20,283    
    Net interest income – tax equivalent (Non-GAAP)   $ 69,266     $ 65,077     $ 63,076     $ 63,690     $ 63,026     $ 197,387     $ 185,553    
    Less: Acquisition accounting net accretion     463       268       363       673       539       1,094       1,501    
    Adjusted net interest income   $ 68,803     $ 64,809     $ 62,713     $ 63,017     $ 62,487     $ 196,293     $ 184,052    
                                   
    Average earning assets   $ 8,183,196     $ 7,999,044     $ 7,807,720     $ 7,631,035     $ 7,573,785     $ 7,997,334     $ 7,369,420    
                                   
    Net interest margin (GAAP)     2.90 %     2.82 %     2.82 %     2.90 %     2.89 %     2.85 %     3.00 %  
    Net interest margin (TEY) (Non-GAAP)     3.37 %     3.27 %     3.25 %     3.32 %     3.31 %     3.30 %     3.37 %  
    Adjusted net interest margin (TEY) (Non-GAAP)     3.34 %     3.26 %     3.24 %     3.29 %     3.28 %     3.28 %     3.34 %  
                                   
    EFFICIENCY RATIO (5)                              
                                   
    Noninterest expense (GAAP)   $ 53,565     $ 49,888     $ 50,690     $ 60,938     $ 51,081     $ 154,143     $ 149,593    
                                   
    Net interest income (GAAP)   $ 59,722     $ 56,163     $ 54,699     $ 55,736     $ 55,255     $ 170,584     $ 165,270    
    Noninterest income (GAAP)     27,157       30,889       26,858       47,729       26,593       84,904       84,955    
    Total income   $ 86,879     $ 87,052     $ 81,557     $ 103,465     $ 81,848     $ 255,488     $ 250,225    
                                   
    Efficiency ratio (noninterest expense/total income) (Non-GAAP)     61.65 %     57.31 %     62.15 %     58.90 %     62.41 %     60.33 %     59.78 %  
    Adjusted efficiency ratio (core noninterest expense/core total income) (Non-GAAP)     58.45 %     57.19 %     62.01 %     58.57 %     62.15 %     59.16 %     59.43 %  
                                   
                                   
                                   
                                   
    (1) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company’s management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. 
    In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
     
    (2) Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.    
    (3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.        
    (4) Net interest margin (TEY) is a non-GAAP financial measure. The Company’s management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it’s difficult to provide a more realistic run-rate for future periods.          
    (5) Efficiency ratio is a non-GAAP measure. The Company’s management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue.  
    In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most  directly comparable GAAP financial measures.
     
       
       
                    

    The MIL Network

  • MIL-OSI United Nations: Experts of the Human Rights Committee Welcome France’s Efforts to Combat Homophobia, Raise Questions on Violence in New Caledonia and Rules Governing Identity Checks

    Source: United Nations – Geneva

    The Human Rights Committee today concluded its consideration of the sixth periodic report of France on how it implements the provisions of the International Covenant on Civil and Political Rights, with Committee Experts welcoming France’s national plan combatting hatred against lesbian, gay, bisexual, transgender and intersex persons and plans to combat homophobia, while raising questions on violence in New Caledonia and rules governing identity checks. 

    One Committee Expert said the Committee welcomed the national plan for equality and against hatred and discrimination against lesbian, gay, bisexual, transgender and intersex persons (2020-2026) and the government plan (2023-2026) to combat homophobia and discrimination based on sexual orientation and gender identity. 

    Another Expert said it appeared that the current violence in the non-self-governing territory of New Caledonia was linked to reforms of the Nouméa Accord and a lack of progress in the decolonisation process.  What was the progress made on the issue of self-determination of the non-self-governing territory of New Caledonia as well as that of French Polynesia, and the participation and consultation processes put in place with the indigenous peoples living in these territories to obtain their free and informed consent and access to independence? 

    Another Expert asked if the State party could indicate whether mandatory training on racial and ethnic discrimination and profiling was systematically offered to law enforcement officials, both in metropolitan France and in the overseas territories?  Did the State party systematically collect data to monitor the use of identity checks, both in metropolitan France and in the overseas territories?  Would the State party be prepared to implement a template for all individuals subject to an identity check?  Would it be willing to introduce a centralised record of all identity checks to have an overview of how they were used, with whom and where?

    The delegation said France supported the recognition of indigenous peoples.  New Caledonia was one of the most advanced examples of the French Government recognising the rights of indigenous peoples.  Since the Nouméa Accord, an institutional framework had been put into place allowing for shared governance between the communities, representing the customs of the Kanak people.  On 1 October, the Prime Minister announced the postponement of elections in 2025, which was unanimously agreed by Parliament.  Since 1998, France had been cooperating with the decolonisation committee and the work had been fruitful.

    The delegation said all French citizens were equal before the law. The code of ethics for the police and national gendarmerie prohibited discriminatory identity checks.  When the law authorised an identity check, the police should not rely on any physical trait, unless there were specific grounds. Any act of discrimination could be reported by someone who believed they were a victim of discriminatory profiling. There were several ways to do this, including through the various controlling and monitoring authorities and the judiciary.

    Introducing the report, Isabelle Rome, Ambassador for Human Rights of France and head of the delegation, said human rights were a priority for France.  In December 2023, the President of the Republic announced that a House of Human Rights would be created in Paris to support civil society organizations. France had strengthened its public policies on the judiciary, democracy and the law enforcement agencies since 2022, paying particular attention to conditions for the use of force, and compliance with the rules of ethics during all police operations.  Ms. Rome concluded by saying that France believed in its democratic model, in liberty, equality and fraternity, as illustrated this summer by the Olympic and Paralympic Games.

    In concluding remarks, Ms. Rome thanked the Committee for the dialogue.  France was deeply attached to the rule of law and the Committee’s recommendations would be scrupulously considered.  The country was committed to renewing dialogue with the territory of New Caledonia and its inhabitants. 

    Tania María Abdo Rocholl, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant.   The Committee aimed to ensure the highest level of implementation of the Covenant in France. 

    The delegation of France was made up of representatives of the Ministry for Europe and Foreign Affairs; the Ministry of the Interior and Overseas; the Ministry of Justice; the State Council; the Interministerial delegation to the fight against racism, anti-Semitism, and hatred; the French office for the protection of refugees and stateless persons; and the Permanent Mission of France to the United Nations Office at Geneva.

    The Human Rights Committee’s one hundred and forty-second session is being held from 14 October to 7 November 2024.  All the documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage.  Meeting summary releases can be found here.  The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet in public at 3 p.m. on Wednesday, 23 October, to begin its consideration of the second periodic report of Türkiye (CCPR/C/TUR/2).

    Report

    The Committee has before it the sixth periodic report of France (CCPR/C/FRA/6).

    Presentation of Report

    ISABELLE ROME, Ambassador for Human Rights of France and head of the delegation, said human rights were a priority for France.  In December 2023, the President of the Republic announced that a House of Human Rights would be created in Paris to support civil society organizations.  Launched in 2021, the Marianne initiative for human rights defenders aimed to encourage the activities of human rights defenders, both in their country of origin, and by welcoming them in France.  The fight against the death penalty was also a priority for France.  France would host the ninth World Congress against the Death Penalty in Paris in 2026.  France was also contributing to the organization of the first World Congress on Enforced Disappearances in Geneva on 15 and 16 January 2025. 

    The State’s new feminist diplomacy strategy would be published by the end of 2024.  France was proud that the Paris 2024 Olympic and Paralympic Games were the first gender-balanced games in history.  Through its diplomatic and consular network, France supported projects of democratic governance, respect for the rule of law, the fight against impunity, access to justice, and mechanisms to monitor the effective exercise of civil and political rights.  In 2019, France launched the Partnership for Information and Democracy, which was joined by 54 States from all regions, to guarantee freedom of expression.  In May 2024, the President of the French Republic and the Prime Minister of New Zealand announced the creation of a new non-governmental organization, the Christchurch Call Foundation, to coordinate the work of the Christchurch Call to eliminate terrorist and violent extremist content online. 

    France had strengthened its public policies on the judiciary, democracy and the law enforcement agencies since 2022, paying particular attention to conditions for the use of force, and compliance with the rules of ethics during all police operations.  The national law enforcement plan published in 2021 provided for an adaptation of the employment strategies of the republican security companies and the mobile gendarmerie squadrons during public demonstrations.  The right to demonstrate was guaranteed by the Constitution in France.  By getting in touch with the prefects and police units involved in public demonstrations, journalists could be added to communication channels, allowing them to receive live information and ask questions. 

    Between 2020 and 2024, the Ministry of Justice’s budget increased by 33 per cent, from €7.6 billion in 2020 to €10.1 billion in 2024. In five years, the French Ministry of Justice would have recruited as many magistrates as in the last 20 years. To combat prison overcrowding, the Ministry of Justice was implementing a proactive prison regulation policy, based on the development of alternatives to incarceration, the strengthening of early release mechanisms, and an ambitious prison real estate programme creating 15,000 net prison places.  An Interministerial Committee for Overseas Territories was set up in July 2023.  France had mobilised authorities to enable and guarantee the return to calm and security of people in New Caledonia. Emergency measures were deployed last June.  The mediation and work mission continued its work, with the aim of renewing political dialogue. 

    France had been implementing a new interministerial plan for gender equality 2023-2027, which contained 161 measures divided into four priority areas: the fight against violence against women; the global approach to women’s health; professional and economic equality; and the dissemination and transmission of a culture of equality.  The law of July 2023 aimed at strengthening women’s access to responsibilities in the public service.  It increased the mandatory quota of first-time female appointments to senior and management positions to 50 per cent.  On 8 March 2024, France became the first country in the world to enshrine the freedom to have access to voluntary termination of pregnancy in its Constitution. 

    Questions by Committee Experts

    A Committee Expert welcomed that France’s report was prepared in consultation with the National Consultative Commission on Human Rights, whose role was to monitor France’s international commitments and the implementation of recommendations issued by international and regional bodies.  In May 2024, despite the provisions of the Nouméa Accord which provided for a process of gradual transfer of power from France to New Caledonia, the National Assembly voted in favour of expanding the electorate of New Caledonia.  Thousands of Kanak demonstrators mobilised to denounce these reforms, which were allegedly passed without adequate consultation or free, prior and informed consent.  In the absence of sufficient dialogue on the part of the authorities, a violent conflict had been raging since that date. 

    The French Government had deployed considerable military resources to restore order, but at the cost of numerous allegations of excessive use of force that led to several deaths among Kanak protesters and security forces, as well as injuries.  According to information received by the Committee, at least 11 people were shot dead and 169 others were injured; 2658 demonstrators were arrested, many of whom were arbitrarily arrested and detained, dozens of them were also transferred to metropolitan France. 

    It appeared that the current violence in the non-self-governing territory of New Caledonia was linked to reforms of the Nouméa Accord and a lack of progress in the decolonisation process.  What was the progress made on the issue of self-determination of the non-self-governing territory of New Caledonia as well as that of French Polynesia, and the participation and consultation processes put in place with the indigenous peoples living in these territories to obtain their free and informed consent and access to independence?

    There had been several prominent court cases regarding the removal of headscarves in France.  In the opinion of the French State, should the Committee’s Views be followed only in the case where the Committee considered a complaint to be inadmissible or agreed with the arguments presented by the French Government? Were there intentions to lift reservations to the Covenant?  Who currently appointed the magistrates of the courts?  What was the current state of the constitutional reform initiated with a view to making the Prosecutor’s Office independent of the executive?  How could the full independence of judges and prosecutors be guaranteed?

    Since 2015, France had put in place measures to combat terrorism, which had been seen over the years to be increasingly detrimental to people’s rights and freedoms.

    Was the new legislation accompanied by sufficient guarantees against the risk of arbitrary and discriminatory implementation of these measures?  What independent and impartial expertise did public authorities have to assess the impact of new technologies on the exercise of the rights and freedoms recognised by the Covenant? 

    It was understood that mass surveillance technology was used during the Olympic and Paralympic Games.  How did the State party ensure that it did not lead to profiling that disproportionately affected racial, ethnic and religious minorities?  How did the State party ensure that continuous surveillance by algorithm-based systems did not violate the right to privacy and respected the requirements of proportionality and necessity?  For how long could the data collected in this way be kept? 

    What were the current conditions for the communication of information to the intelligence services, particularly in the area of sensitive data? What information could be transmitted and what traceability requirements were in place?  Under what conditions could information provided by the intelligence services be made available to the judicial authority and the Public Prosecutor’s Office?  What means of access was available to defendants and those accused of acts of terrorism?

    Another Expert said the Committee was informed that people of colour were subjected to identity checks by the police about 20 times more often than other citizens.  They also faced discriminatory treatment during police stops and searches, including direct fines, often without objective suspicion and without being informed of the reasons.  What could be done to ensure that the use of identity checks and fines was not left to the discretion of law enforcement agencies, and was based only on objective and individualised conditions, and not on racial origins?  Did the State party have explicit guidelines for law enforcement agencies that clearly prohibited racial profiling in police operations as well as discriminatory identity checks? 

    Could the State party indicate whether mandatory training on racial and ethnic discrimination and profiling was systematically offered to law enforcement officials, both in metropolitan France and in the overseas territories?  Did the State party systematically collect data to monitor the use of identity checks, both in metropolitan France and in the overseas territories?  Would the State party be prepared to implement a template for all individuals subject to an identity check?  Would it be willing to introduce a centralised record of all identity checks to have an overview of how they were used, with whom and where?

    The Committee had received extensive information that showed the persistent problem of systemic racial discrimination, as well as the use of negative stereotypes against minorities.  What measures had the State party taken to effectively combat all forms of hate speech and hate crimes against racial, ethnic and religious minorities? What training was provided to law enforcement officers, judges and prosecutors, and what awareness campaigns were organised to prevent and combat hate crime and hate speech?  Would France develop data collection and research in compliance with data protection rules, to effectively identify cases of racial or ethnic profiling and offences in metropolitan France and overseas?

    The Committee welcomed the national plan for equality and against hatred and discrimination against lesbian, gay, bisexual, transgender and intersex persons (2020-2026) and the government plan (2023-2026) to combat homophobia and discrimination based on sexual orientation and gender identity.  How would the State party ensure adequate resources and the active participation of civil society in the implementation of these plans?  Did these programmes sufficiently take into account minorities within minorities, such as lesbian, gay, bisexual, transgender and intersex asylum seekers? 

    The Committee was informed that some of the measures granting extensive powers to the administrative authorities, developed in the context of the state of emergency, had been granted permanent status.  What measures had the State party taken to ensure that initial emergency measures were in conformity with the Covenant in terms of necessity and proportionality?  How did the State party promote the accessibility of judicial procedures and ensure that they were effective?

    How would France ensure that anti-terrorism legislation did not disproportionately target Muslims and that actions were based on alleged criminal behaviour rather than religious practices?  How did the State party ensure that house searches and dissolution of organizations were conducted by the courts?  What was the percentage of terrorist offences in relation to criminal offences committed in the last five years?  The Committee was informed of the law establishing a new security regime, which subjected the accused to certain obligations, with a view of ensuring their reintegration.  How did France ensure that this monitoring system, which was based on the rather vague notion of “dangerousness”, was not arbitrary and did not disproportionately infringe on the rights of persons who had served their sentences?

    One Committee Expert said the Committee particularly welcomed the State party’s commitment of significant financial resources to address the needs of vulnerable groups during the health crisis of COVID-19. What was the impact of the measures described in the State party’s report, to ensure that the COVID-19 pandemic did not exacerbate inequalities, discrimination and exclusion, including among vulnerable groups?  Specifically, regarding domestic violence against women, which was said to have increased during the pandemic, what was the assessment of the effectiveness and impact of the measures taken? 

    While noting the information provided by the State party, including on the judicial review of the restrictions imposed, could the proportionality of the measures imposed to address COVID-19 be explained, including the ban on any gathering of more than 10 people imposed for a certain period? What assessment did the State party make of this experience for a better consideration of human rights in future crises?      

    Another Expert said the State party had reported on humanitarian repatriations from Syria of women and children of French nationality.  With regard to returns, according to public reports, there was still a significant number of women and children detained or held in camps and rehabilitation centres in Syria.  What was the number, the current situation, and the measures taken by the State party to ensure the full repatriation of all French women and children still in detention camps and rehabilitation centres for minors in Syria? 

    What was the estimated number of detained men and women in Syria who participated as Islamic State fighters?  Had measures been taken to ensure that due process standards were strictly respected in the trials before the Syrian national courts? According to information, in May and June 2019, 11 French nationals had been sentenced to death in Iraq for their involvement as Islamic State fighters.  Could the delegation provide an update on that information and indicate what steps the State party had taken to prevent the continued imposition of death sentences on its nationals in that country?  What other penalties had been applied to these French nationals in lieu of the death penalty?

    The Committee had requested information related to the Arms Trade Treaty, in order to know whether the State party carried out an evaluation for the granting of export licenses aimed at determining that the recipient country used the weapons included in the respective license within the framework of respect for the right to life.  Did the evaluation of an arms export take this into account?  Had any measures been taken to ensure a total ban on arms sales to countries where there was a clear risk that such weapons could be used to violate international human rights law?  Was it possible to access information on arms exports so that civil society could carry out oversight?  What measures had been taken to prevent the negative effects on the right to life of the operations of French companies abroad, especially in the province of Cabo Delgado in Mozambique? 

    A Committee Expert said the Committee was informed that there had been a rise in police violence in recent years, with multiple incidents resulting in fatal outcomes, some of them young boys.   Could more information be provided on trainings on racism for police officers?  Had improvements been made, bearing in mind previous incidents?  The Committee was informed that investigations and legal procedures of unlawful killings by law enforcement officials were not expeditious, sometimes even leading to de facto police impunity, or that sentences were not commensurate with the gravity of the crime. 

    Had there been plans to amend legal norms and review legal conditions for the use of firearms by the police and the gendarmerie, aiming to reduce the risks of disproportionate use of lethal force, and to strike a better balance with the principles of absolute necessity and strict proportionality?  What was the status of investigations of fatalities and injuries, including those related to alleged excessive use of force, which emerged during conflicts that started in May 2024 in New Caledonia? Had trainings been undertaken for those operating in France’s overseas territories? 

    The Committee welcomed the reported introduction of the new right to appeal introduced by article 803-8 of the Code of Criminal Procedure, as a step forward.  However, Experts had been informed that there were several challenges preventing its full use and benefits.  Since the right to a judicial remedy against undignified conditions of detention was introduced in 2021, what were the steps taken by the State party to disseminate it within the incarcerated population?  Was the information on the creation of a new legal tool easily reachable in all penitentiaries under the jurisdiction of the State party?  Had legal aid been introduced to those incarcerated persons who could not afford a lawyer or judicial taxes?  Were there plans to introduce wider use of alternatives to detention or a more restricted use of detention as a last resort?

    Responses by the Delegation

    The delegation said France supported the recognition of indigenous peoples.  New Caledonia was one of the most advanced examples of the French Government recognising the rights of indigenous peoples.  Since the Nouméa Accord, an institutional framework had been put into place allowing for shared governance between the communities, representing the customs of the Kanak people.  On 1 October, the Prime Minister announced the postponement of elections in 2025, which was unanimously agreed by Parliament.  Since 1998, France had been cooperating with the decolonisation committee and the work had been fruitful.

    Since 2015, the technical intelligence community had been working on a specific legal framework.  The law included respect for the private lives of citizens and had a strict principle of proportionality.  The law set forth the procedures to be respected when it came to implementing intelligence techniques, including prior authorisation by the Prime Minister.  There were restrictions on how long the data could be held.  The enhanced video surveillance was enacted in advance of the Olympics and Paralympics Games.  France chose to engage in a rigorous oversight mechanism regarding this surveillance.  This was a tool for detecting events without having to resort to facial recognition. 

    All French citizens were equal before the law.  The code of ethics for the police and national gendarmerie prohibited discriminatory identity checks.  When the law authorised an identity check, the police should not rely on any physical trait, unless there were specific grounds.  Any act of discrimination could be reported by someone who believed they were a victim of discriminatory profiling.  There were several ways to do this, including through the various controlling and monitoring authorities and the judiciary.

    At the end of the state of emergency, which followed the attacks carried out on France in 2015, the Government acknowledged the need to keep these tools in place due to the possibility of other attacks.  Four new measures had then been created.  These laws were only for preventing terrorism and were accompanied with significant guarantees for citizens.  The law of 30 July 2021 on preventing acts of terrorism gave these measures permanency.  The Constitutional Council believed this was a balanced approach that ensured achieving the goal of preventing terrorism while respecting private life.  House searches could not be instigated unless there was prior authorisation from a judge; 1,447 remedies were presented for the state of emergency.  The law of 2021 applied to people who had been sentenced to acts of terrorism. Sentences for terrorist activities represented around 0.04 per cent of all criminal activities. 

    A plan had been developed to prepare the plan on combatting lesbian, gay, bisexual, transgender and intersex hatred, involving members of civil society.  The plan contained 16 key measures, including a ten-million-euro fund by 2027 to improve the host centres for these individuals.  The goal was to have two centres per region in France.  For hate speech, the legislation provision had recently been strengthened.  In 2021, there was a vote to govern the digital space and that law had a set of provisions on combatting online hate speech to better regulate illegal behaviour. There had been significant progress made in this area, given that a bill had been introduced in the European Parliament to regulate heinous content online. 

    In France, 2020 was the year that the State had the lowest rate of femicide.  This meant that the measures set up were effective, and that the police and justice systems were able to act swiftly to combat family violence.  There were also provisions which allowed complaints to be raised. 

    Measures adopted during the pandemic were considered to be proportional.  The measures taken to address the pandemic did not overturn other measures in place. During COVID-19, the number of calls to victim support groups for violence had increased.  The accelerated measures implemented by France to support victims included electronic bracelets to ensure restraining orders were complied with.   In 2021, emergency plans were implemented to ensure people were protected.  At the end of the pandemic, the State provided hotlines 24/7 and reception centres in shopping malls.  More specialised support was also provided in courts. 

    International commitments by France to human rights did not involve a repatriation of citizens in an area where France had no control.  Authorities responded systematically to requests for repatriation made by French citizens.  Since 2019, repatriation efforts for minors had been organised.  France exported weapons to countries that wished to strengthen their armies, only with strict national oversight. 

    Force was only used when necessary in cases set forth by law and in a manner which was proportional to the threat.  A police or member of the gendarmerie would only use force if it was essential in their work, such as in cases of self-defence.  Police had additional guidelines on the use of weapons.  There should never be doubt regarding the reasons of an arrest warrant. 

    France had a law which allowed for all inmates to request guarantees for their detention conditions, ensuring they were dignified. A provision was in place which allowed individuals to benefit from jurisdictional support, in place since 2023. Template forms for this purpose were provided to all detainees upon their detention. 

    Questions by Committee Experts

    A Committee Expert said the problem with the New Caledonia information was the outcome of the projects which arose in France in 1984. The idea of postponing elections to 2025 was a positive sign as this would allow for mediation between the local and French authorities.  Over recent years, there had been a considerable strengthening of anti-terrorist measures.  However, the majority of terrorist threats were foiled by international cooperation efforts.  Were the measures justified by the threats the State faced?  How could this be transmitted between different intelligence branches?  How long was intelligence data stored and what measures were provided to keep the information secure? 

    Another Expert asked for disaggregated data on what law enforcement officials had been charged with?  Were inmates allowed to apply to a collective appeal so that others could benefit? 

    An Expert said there were laws which prohibited discrimination in identification checks; how was it ensured that this legislation was implemented?

    Another Committee Expert asked for the delegation to bear in mind the matter of redress granted to victims of violence. 

    One Expert asked for a more specific response to the measures adopted to comply with the rulings of the European courts against certain cases against France?  How did the State party ensure effective judicial control and parliamentary oversight in weapon exportation? 

    Responses by the Delegation

    The delegation said the French overseas territories met all international criteria under the law.  France had completed the decolonisation process and no longer administered non-self-governing territories.  As for French Polynesia, in 2023, France decided to speak before the General Assembly, illustrating ongoing dialogue between the State and French Polynesia. France supported the development of French Polynesia. 

    The French Government followed the individual communications procedure before the Committee.  Any communications were the subject of broad consultations among many ministries and institutions. 

    When France ended the state of emergency of 2015 to 2017, the risk of terrorism in the country was still high.  While this risk had come down, threats still persisted; 45 attacks had been foiled between 2017 and now. 

    In 2022, over 700 people brought cases to court regarding acts of violence committed by people in public authority.  Over 200 of these led to convictions. 

    The Ministry of Education and Youth was currently creating a programme to consider the new kinds of racism and anti-Semitism which had cropped up in recent years. 

    The French law enforcement force represented the population and was diverse.  Inmates could ask for specific improvements to detention conditions which impacted their dignity.  Improvements had been carried out in several penitentiaries as a result of this. Several inmates could present these complaints together.   

    Questions by Committee Experts

    A Committee Expert said since the end of the state of health emergency on 10 July 2020, the situation of exiled people in Calais had deteriorated.  The nearly 1,200 homeless men, women and children in Calais had seen their living conditions deteriorated due to the brutal “evacuations” of several large camps, and the dramatic reduction in vital services such as food distributions, and lack of access to showers and water points.  Additionally, around 100 unaccompanied minors had settled in tents in Jules Ferry Square to highlight that they had been abandoned by the State. Could the State party comment on this?

    According to information received, journalists and media organizations were reportedly facing increasing challenges in carrying out their duties, including restrictions on reporting, potential abuses of power, and other pressures that undermined press freedom.  Reporters without Borders reported that police reportedly assaulted several “clearly identifiable” journalists.  There were several cases cited to support these allegations, including journalists in New Caledonia who stated they were constantly harassed for their coverage of the riots.  Could the delegation comment on these allegations?  What measures did the State party intend to take to better protect journalists and human rights defenders in the exercise of their work? Had the perpetrators of the mentioned cases been prosecuted and what was the outcome, including convictions and reparations?

    Another Expert noted the numerous allegations of prison overcrowding in the State party and the serious health risks during the most critical period of the COVID-19 pandemic, asking what were the reasons for providing, through decree-law 2020-303, for the full continuation of pre-trial detention, which even affected minors?  What were the conditions for the application of the measure of full maintenance of pre-trial detention to children and how many children were affected by this measure? How did law no. 2021-646 of 25 May 2021 on global security preserving freedoms effectively guarantee respect for privacy, especially in the use of portable cameras by law enforcement officers and cameras installed on unmanned aerial vehicles?  Did it include the principles of proportionality and necessity? In the case of the use of surveillance devices in public demonstrations by law enforcement officers, were there safeguards or limitations to prevent their use from affecting the right to peaceful assembly and freedom of expression? 

    It was alleged that four former national secretaries of the General Confederation of Labour were being investigated for defamation and public slander following a complaint filed against them by the Directorate of the National School of Prison Administration.  Could information on this be provided?  The Committee would also like information on the processes followed against various union, political and community leaders for the crime of glorifying terrorism after the Hamas attacks of 7 October 2023.  It was reported that during the recent Olympic Games, there were many cases of systematic Islamophobia that mainly affected Muslim athletes and communities, a situation exacerbated by the security measures adopted. Could the delegation comment on this? What measures had the State party taken to combat hate speech against lesbian, gay, bisexual, transgender and intersex persons?

    One Expert said the Committee had unfortunately been informed that the situation of migrants in Calais and Grande-Synthe was still very worrying, with authorities continuing to apply the “zero point of fixation” policy, under which temporary shelters were systematically dismantled, sometimes with excessive use of force, every 48 hours.  How were migrants informed of the 48 hour rule and the possible dismantling of their temporary shelters?  Could the State consider the use of more humane and proportionate alternatives to dismantling these shelters, including increasing the capacity of reception centres?  What measures had been adopted to facilitate reporting on police abuses? 

    The Committee was concerned by reports that migrants had been detained at the French-Italian border without having obtained legal documents explaining their detention.  How did France ensure that such detentions were not arbitrary and that all migrants were informed of their procedural rights?  The Committee was also informed that the immigration law of 2 January 2024 expanded the criteria for expulsion to include minor offences, and allowed authorities to place a foreign person in administrative detention for reasons related to a potential threat to public order without justification, as well as allowing detention to be extended and reducing procedural rights.  How was it ensured that these measures were compatible with the provisions of the Covenant? 

    The Committee had received information that the State party continued to issue expulsion notices for the return of persons to countries where they were at risk of serious violations of their rights.  How did the State party ensure respect for the principle of non-refoulement in all cases of expulsion?  Regarding the internal borders of the Schengen area, in particular the issue of rapid refoulement at the border between France and Italy, the Committee noted with appreciation the State party’s follow-up to the conclusion of the Court of Justice of the European Union.  The Committee welcomed the annulment by the Council of State, in February, of certain parts of the Code on the Entry and Residence of Foreigners and the Right of Asylum. 

    However, information had been received that foreign nationals continued to be forcibly returned to Italy without having had access to a proper asylum procedure.  How did France ensure the individualised examination of all applications and effective access to asylum procedures?  Did the State intend to end the use of bone tests in law and in practice?  What was the objective of the January 2024 law to establish files to identify unaccompanied minors suspected of a criminal offence?  Who controlled these files and who kept them?  What measures had been taken to ensure adequate temporary accommodation and emergency accommodation for unaccompanied minors?

    One Committee Expert said France had adopted the third national action plan against human trafficking (2024-2027) at the beginning of 2024.  Could the evaluation of achievements from the second action plan be provided and what goals were set for the third plan?  What were the measures developed to combat trafficking?  Could victims receive compensation within the criminal procedure, or did they have to undergo civil suits for compensation?  What safeguards were in place to protect victims themselves from criminal accountability?  What methods had been developed for victims’ identification?  Had trainings been organised for prosecutors, judges and lawyers on human trafficking? 

    The Committee was concerned by numerous reports that the ban on manifestation of religious beliefs by means of clothing, headgear or other religious symbols was a source of tension in French society and was seen by some as disrespect for multiculturism, fuelling the sense of discrimination, racism, anti-Semitism, and Islamophobia.  What measures were being taken to ensure that the ban on expressing religion by means of religious clothing, headgear or symbols did not have a discriminatory effect in practice?  How was it ensured that all visible religious symbols were treated equally? What criteria was used to decide what symbol should be treated as conspicuous and thus be banned, while others were treated as discrete and allowed?  How did the State party avoid that the ban on manifestation of religious beliefs by means of clothing affected predominantly Muslim girls and women? 

    What safeguards were in place to ensure that provisions on the dissolution of association would not be broadly interpreted and end in violating the right to freedom of assembly?  There had been examples of associations, such as Uprisings of the Earth, labelled as eco-terrorists.  Could the delegation provide its views on this?  The Committee was concerned at the expansion of police powers to stop and check persons in the vicinity of protests, and the effect that this could have on the effective enjoyment of the right of peaceful assembly.  A significant number of protesters had been arrested and detained and a small percentage of the protesters arrested had been charged.  What was the position of the State party on these allegations?  How were personal dignity and respect understood by the courts?

    Another Expert said the year 2023 was marked by a succession of bans on demonstrations, particularly related to the mobilisation against the pension reform, or those carried out in support of the Palestinian people.  In October 2023, the Minister of the Interior issued a memo calling on local authorities to pre-emptively ban all demonstrations of solidarity with the Palestine people.  The ban was challenged before the Council of State, which determined that local authorities had to judge on a case-by-case basis the risks to public order and thus avoid repression by invoking public order, excessive force or arbitrary arrest.  This had had repercussions, even in the area of the right to information, which was concerning.

    Did the National Law Enforcement Scheme adopted in September 2020 mention the path of “de-escalation”, as a strategic principle for policing political manifestations in Europe, supported by the European Union?  The Committee had expressed concern about allegations of ill treatment, excessive use of force, and disproportionate use of intermediate force weapons, in particular during arrests, forced evacuations, and law enforcement operations.  A 2017 law (the Cazeneuve law) created a common framework for the use of weapons, allowing police to use armed force in five different cases.  However, the number of deaths had increased fivefold after the 2017 law, causing France to become the country in the European Union with the largest numbers of people killed or injured by shots fired by police. 

    Could the delegation explain the extent to which law enforcement agencies followed the applicable protocols in practice, with supporting statistics, and respected the principles of necessity, proportionality, precaution, non-discrimination and self-defence in the use of weapons?  What measures, in terms of training for law enforcement agencies, were envisaged?  Would the State party be willing to review the legal framework on the use of weapons and limit the use of firearms within the Security Code?  What follow-up had been given to decision 2020-131 of the Defender of Rights on general recommendations on law enforcement practices with regard to the rules of ethics? 

    According to a decision by the Ombudsman, France was the only country in Europe to use stun grenades to keep demonstrators at bay. Would grenades continue to be used despite the serious mutilations and injuries they caused?  Could the delegation provide updated information on the number of persons who had died as a result of police operations during arrests, including through the excessive use of force, and on the outcome of investigations into such deaths, sanctions imposed, and reparations provided to victims and their families?  Could statistics be provided on the number of proposals for sanctions presented by the Defender of Rights and what became of them, in particular the number of prosecutions? 

    Would the Brigades for the Repression of Motorised Violent Actions be dissolved?  The State party’s report provided information on complaints and investigations initiated concerning members of the security forces.  What measures would be taken to make the relevant statistical data more reliable, disaggregated and complete?

    Responses by the Delegation

    The delegation said the evacuations of camps in Calais which took place were done through either a legal or an administrative decision. These decisions were carried out with proper supervision and were overseen by the Government and social organizations.  Unaccompanied minors were housed in emergency shelter systems when possible and the same for adults when possible. 

    France guaranteed the right to protest and freedom of collective speech and expression of ideas.  The French State allowed journalists free circulation.  France was seeking to strike a balance because there were now many journalists without press identification who ran risks, placing themselves between protesters and law enforcement officials.  Law enforcement officers were called on to show professional behaviour at all times, including in situations where protests were violent. 

    Videos in public spaces were used to call attention to pre-determined actions; they did not have any impact on the right to protest. France supported the European plan for protecting journalists against violence.  This had allowed for additional guarantees to be provided in certain cases. 

    French authorities were mobilised to support efforts against hate speech, and there were efforts to address this phenomenon within the Ministry of Justice.  When cases were thrown out, they could be appealed before the appeals court.  Investigations into allegations of hate speech were underway. 

    The administrative police were evacuating camps, which were aimed at putting an end to illegal occupation and squatting of lands.  These operations on the ground involved parameters being established.  Regarding expulsions in Calais, 36 operations had taken place.  They were based on the same legal foundations; the anti-squat laws had been utilised to proceed with the evacuation.  Minors were always supported.  The State was aware of the situation of unaccompanied minors in Calais. Systems had been put in place to address these realities and identify the unaccompanied minors.  Work was being done with associations on the ground in Calais, including Doctors without Borders.  The shelters were only 20 minutes from Calais and allowed for daily operations and support.  This distance was far enough to protect unaccompanied minors from traffickers found in these camps. 

    When foreigners were not eligible for asylum seeking procedures, they could then be placed under administrative detention in administrative detention centres.  These decisions were subjected to oversight by judges.  During the detention period, foreigners benefitted from health care support and legal counsel.  Voluntary returnees received financial support.  Some countries were not considered to be safe, and therefore returns were only on a voluntary basis.  Since October 2022, the Government was active in Mayotte, allowing active participation in the asylum-seeking process. 

    There were 2,100 victims of trafficking and exploitation in 2023, a six per cent increase compared to 2022.  Around 882 people had been sentenced for exploitation and trafficking.  France thanked civil society for helping contribute to the National Action Plan against Trafficking.  Training was an important part of the strategy to combat trafficking; there was a training course on human trafficking with a focus on modern slavery. Training was provided to 150 different professionals.  To care for the victims of human trafficking, several mechanisms were in place, including an early detection mechanism.

    France guaranteed the rights of citizens at the highest level, and any restrictions applied to all religions equally.  There was freedom for an individual to display religious signs, but this needed to be assessed on a case-by-case basis.  Any restriction on a religious symbol was only imposed if they were identified as a risk to the public service. 

    Freedom of expression was guaranteed in France, but this could result in some groups promoting racist and hate speech.  The law of 2021 amended the list of cases where a dissolution could take place, broadening the list of discriminatory measures which could lead to a dissolution. 

    The Public Ministry could carry out prosecutions.  Sometimes the Prosecutor could enact educational measures instead, which was used in some cases of minors.  The judges of France were required to argue for their decisions, given that there were no automatic sentences in the State.  This was also true for those found guilty of threatening public order. 

    France was one of the first countries to call for a ceasefire in Gaza.  There had been a significant increase in anti-Semitic acts since October 2023. Freedom to demonstrate was a fundamental right protected by the Constitution and protests were not subjected to authorisation.  There should be a notification to law enforcement around 15 days before to protect the safety of those participating and those living in the area.  The prohibition of protests was only carried out if it was believed they were a threat to public order, and this was done with the oversight of a judge.  Exceptionally, some protests had been prohibited due to the risk they posed to public order. 

    The use of firearms in France was regulated by the Criminal Code. This allowed a gradual response to respect necessity and proportionality to the violence and the threat.  The goal was to reduce the risk of threatening life and the integrity of people.  The police and gendarmerie were trained on how to use these weapons.  Regarding the brigades, several changes in the practices of demonstrators, including the increase in use of social media, had meant that for three years, the strategy had changed.  On average, there were two to three protests every day in Paris.  To meet this challenge, the brigades were developed and had been used to break up certain disruptive groups.  Since October 2023, the Ministry of Justice had circulated a document on combatting offences related to terrorist activities. 

    The fight against Islamophobia was a strong State policy. The strong Muslim community in France should be able to live with their beliefs peacefully to enjoy their religion. Any law which might be seen as a restriction did not target any specific population or any specific religion. 

    Questions by Committee Experts

    A Committee Expert asked if minors in Mayotte could be afforded the same protections as in metropolitan France? 

    Another Expert said hate speech online affected artists and activists in the lesbian, gay, bisexual, transgender and intersex community. What had been done to prevent this? 

    An Expert said there had been a significant increase in those killed or wounded during protests or police operations.  Were grenades and defensive bullets still used?  What happened when police used these weapons? Was there a compulsory inquiry? Was there oversight regarding each use of weapons? 

    Responses by the Delegation

    Minors were subjected to an age evaluation before they were recorded as minors.  If recorded as a minor, they should not undergo another evaluation.  The dismantling of camps was based on public legal rulings.  The individuals were informed, and efforts were made to help them find shelters or to change their immigration status.  Readmission into the Schengen space was a complex issue. 

    There was a doctrine for the use of medium weapons which allowed gradual and proportionate use.  Recent changes allowed France to address the risk of wounds with these weapons.  Law enforcement officers needed to be clearly trained on each type of weapon on a regular basis.  There was a proposal to replace grenades with non-lethal “flash-bangs”. Random visits were undertaken to police and gendarmerie stations as a form of auditing.  Efforts were made to identify the amount of time weapons were used. 

    Closing Remarks

    ISABELLE ROME, Ambassador for Human Rights of France and head of the delegation, thanked the Committee for the dialogue.  France was deeply attached to the rule of law and was a living democracy; the Committee’s recommendations would be scrupulously considered.  France would continue to progress with an open-minded spirit, in partnership with civil society and the national human rights institution.  The country was committed to renewing dialogue with the territory of New Caledonia and its inhabitants. 

    TANIA MARÍA ABDO ROCHOLL, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant.  The Committee aimed to ensure the highest level of implementation of the Covenant in France. 

    __________

    CCPR.24.024E

    Produced by the United Nations Information Service in Geneva for use of the information media; not an official record.

    English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

    MIL OSI United Nations News

  • MIL-OSI USA: Federal Judge Rebuffs Pittsburgh Post-Gazette’s Claim That U.S. Labor Law Violates Constitution

    Source: Communications Workers of America

    PITTSBURGH, Pa. – A motion by representatives of the Pittsburgh Post-Gazette arguing that the National Labor Relations Act (NLRA) is unconstitutional was rejected by U.S. District Court Judge Cathy Bissoon on Tuesday.

    The Post-Gazette (“PG Publishing Co.”) is facing an injunction hearing on Monday, Oct. 28, in which the National Labor Relations Board will seek a ruling from Judge Bissoon ordering and enjoining the PG to stop violating federal labor law, bargain with its workers in good faith, and pay for their health care costs until a new collective bargaining agreement (CBA), or health care plan, is agreed.

    With its rejected motion, the PG joined Elon Musk, Trader Joe’s, and Amazon in claiming that the NLRA, which has regulated labor relations in the U.S. since its passage in 1935, violates the constitution. Judge Bissoon dismissed these arguments.

    “While PG’s positions are not outlandish by contemporary standards, this Court declines its invitation to ignore nearly a century’s worth of settled jurisprudence. See NLRB v. Jones & Laughlin Steel Corp., 301 U.S. 1 (1937),” Bissoon wrote in her order. “Although respect for stare decisis appears less ‘in vogue’ as of late, there is something to be said for tradition. The undersigned will continue to respect it.”

    Striking pressworkers, advertisers, and mailers have been on strike since October 6, 2022, following the PG unilaterally canceling the health care of its production and distribution workers over an increase in costs of $19 per week per person.

    Editorial workers in the Newspaper Guild of Pittsburgh joined them on Oct. 18 on an unfair labor practice strike stemming from the company’s illegally unilateral decision to tear up the Guild’s contract in July of 2020 and from the company’s other illegal behavior.

    “The Post-Gazette’s owners have gone beyond breaking the law and have argued that there should be no law at all,” said CWA District 2-13 Vice President Mike Davis. “It would be laughable at this point if it wasn’t causing real damage to the Post-Gazette’s workers and their families and undermining the news coverage that the people of Pittsburgh deserve. We are pleased that Judge Bissoon has rejected the Post-Gazette’s frivolous attempt to eliminate the National Labor Relations Act so we can focus on the real issue—the Post-Gazette’s failure to follow the law.”

    Monday’s hearing in front of Judge Bissoon is scheduled to begin at 10 a.m. at the federal courthouse at 700 Grant St. in Downtown Pittsburgh.

    ###

    About CWA: The Communications Workers of America represents working people in telecommunications, customer service, media, airlines, health care, public service and education, manufacturing, tech, and other fields.

    cwa-union.org @cwaunion

    MIL OSI USA News

  • MIL-OSI: South Plains Financial, Inc. Reports Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LUBBOCK, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended September 30, 2024.

    Third Quarter 2024 Highlights

    • Net income for the third quarter of 2024 was $11.2 million, compared to $11.1 million for the second quarter of 2024 and $13.5 million for the third quarter of 2023.
    • Diluted earnings per share for the third quarter of 2024 was $0.66, compared to $0.66 for the second quarter of 2024 and $0.78 for the third quarter of 2023.
    • Average cost of deposits for the third quarter of 2024 was 247 basis points, compared to 243 basis points for the second quarter of 2024 and 207 basis points for the third quarter of 2023.
    • Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023.
    • Nonperforming assets to total assets were 0.59% at September 30, 2024, compared to 0.57% at June 30, 2024 and 0.12% at September 30, 2023.
    • Return on average assets for the third quarter of 2024 was 1.05% annualized, compared to 1.07% annualized for the second quarter of 2024 and 1.27% annualized for the third quarter of 2023.
    • Tangible book value (non-GAAP) per share was $25.75 as of September 30, 2024, compared to $24.15 as of June 30, 2024 and $21.07 as of September 30, 2023.
    • The consolidated total risk-based capital ratio, Common Equity Tier 1 risk-based capital ratio, and Tier 1 leverage ratio at September 30, 2024 were 17.61%, 13.25%, and 11.76%, respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”.

    Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I’m pleased with our third quarter results, which I believe demonstrate that the Bank is performing at a high level. We remain well capitalized and focused on managing our loan portfolio as the credit environment continues to normalize. Against this backdrop, we are maintaining our credit discipline and not stretching to chase loan growth. We are also building liquidity as we expect the Federal Reserve to continue reducing their market interest rate to stimulate economic growth looking to the year ahead. Importantly, we are seeing a level of optimism from our customers that we have not seen over the last seven to eight quarters and our new business production pipeline is the strongest that it has been in more than two years. Looking forward, we remain confident in the credit profile of our loan portfolio and are cautiously optimistic that we will see loan growth accelerate in the quarters ahead. Additionally, we are beginning to see deposit cost pressures ease, which we expect will be supportive of our net interest margin as well as continued deposit growth.”

    Results of Operations, Quarter Ended September 30, 2024

    Net Interest Income

    Net interest income was $37.3 million for the third quarter of 2024, compared to $35.9 million for the second quarter of 2024 and $35.7 million for the third quarter of 2023. Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023. The average yield on loans was 6.68% for the third quarter of 2024, compared to 6.60% for the second quarter of 2024 and 6.10% for the third quarter of 2023. The average cost of deposits was 247 basis points for the third quarter of 2024, which is 4 basis points higher than the second quarter of 2024 and 40 basis points higher than the third quarter of 2023.

    Interest income was $61.6 million for the third quarter of 2024, compared to $59.2 million for the second quarter of 2024 and $56.5 million for the third quarter of 2023. Interest income increased $2.4 million in the third quarter of 2024 from the second quarter of 2024, which was primarily comprised of an increase of $934 thousand in loan interest income and an increase of $1.5 million in interest income on other interest-earning assets. The growth in loan interest income was due to a rise of 8 basis points in the yield on loans, partially offset by a decrease in average loans of $12.7 million. The increase in interest income on other interest-earning assets was predominately a result of increased liquidity from growth in deposits and a net decrease in loans during the third quarter. Interest income increased $5.1 million in the third quarter of 2024 compared to the third quarter of 2023. This increase was primarily due to an increase of average loans of $64.2 million and higher market interest rates during the period, resulting in growth of $5.3 million in loan interest income.

    Interest expense was $24.3 million for the third quarter of 2024, compared to $23.3 million for the second quarter of 2024 and $20.8 million for the third quarter of 2023. Interest expense increased $1.0 million compared to the second quarter of 2024 and increased $3.5 million compared to the third quarter of 2023. The $1.0 million increase was primarily as a result of growth in average interest-bearing deposits of $64.4 million. The $3.5 million increase was primarily as a result of growth in average interest-bearing deposits of $111.2 million and a 43 basis point increase in the cost of interest-bearing liabilities.

    Noninterest Income and Noninterest Expense

    Noninterest income was $10.6 million for the third quarter of 2024, compared to $12.7 million for the second quarter of 2024 and $12.3 million for the third quarter of 2023. The decrease from the second quarter of 2024 was primarily due to a decrease of $1.5 million in mortgage banking revenues, mainly from a decrease of $1.4 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Additionally, there was a decrease of $750 thousand in bank card services and interchange revenue mainly as a result of incentives received during the second quarter of 2024 and a decrease of $315 thousand in income from investments in Small Business Investment Companies. The decrease in noninterest income for the third quarter of 2024 as compared to the third quarter of 2023 was primarily due to a decrease of $2.7 million in mortgage banking activities revenue mainly from a decline of $2.7 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Further, there was approximately $700 thousand in insurance proceeds received for property damage in the third quarter of 2024, which affected other noninterest income in both period comparisons.

    Noninterest expense was $33.1 million for the third quarter of 2024, compared to $32.6 million for the second quarter of 2024 and $31.5 million for the third quarter of 2023. The $556 thousand increase from the second quarter of 2024 was largely the result of a rise of $226 thousand in net occupancy expenses, primarily from increased utilities, growth of $155 thousand in marketing and development expenses, and smaller increases in other noninterest expenses – including operational and fraud losses, losses on disposal of fixed assets, settlements, and charitable donations. These increases were partially offset by a decrease of $432 thousand in personnel costs as there was an additional $350 thousand in accrued expense in the second quarter related to incentive-based compensation. The increase in noninterest expense for the third quarter of 2024 as compared to the third quarter of 2023 was largely the result of an increase of $274 thousand in IT and data services related to the Company’s cloud project, an increase of $247 thousand in professional services mainly from legal expenses, and smaller increases in other noninterest expenses – including losses on disposal of fixed assets, settlements, and charitable donations.

    Loan Portfolio and Composition

    Loans held for investment were $3.04 billion as of September 30, 2024, compared to $3.09 billion as of June 30, 2024 and $2.99 billion as of September 30, 2023. The $56.9 million, or 1.8%, decrease during the third quarter of 2024 as compared to the second quarter of 2024 occurred primarily as a result of the expected payoff of a $16 million short-term bridge note that was originated in the second quarter of 2024, the early payoff of a $17 million residential land development loan, and an $18 million decrease in consumer auto loans. As of September 30, 2024, loans held for investment increased $43.8 million, or 1.5%, from September 30, 2023, primarily attributable to strong organic loan growth, occurring mainly in multi-family property loans, direct-energy loans, and single-family property loans, partially offset by decreases in consumer auto loans and construction, land, and development loans.

    Deposits and Borrowings

    Deposits totaled $3.72 billion as of September 30, 2024, compared to $3.62 billion as of June 30, 2024 and $3.62 billion as of September 30, 2023. Deposits increased by $94.8 million, or 2.6%, in the third quarter of 2024 from June 30, 2024. As of September 30, 2024, deposits increased $98.7 million, or 2.7%, from September 30, 2023. Noninterest-bearing deposits were $998.5 million as of September 30, 2024, compared to $951.6 million as of June 30, 2024 and $1.05 billion as of September 30, 2023. Noninterest-bearing deposits represented 26.9% of total deposits as of September 30, 2024. The quarterly change in total deposits was mainly due to organic growth in both noninterest-bearing and interest-bearing deposits. The year-over-year increase in total deposits was primarily the result of organic growth in interest-bearing deposits, given the overall focus in the banking industry on improving liquidity, partially offset by a decline in noninterest-bearing deposits.

    Asset Quality

    The Company recorded a provision for credit losses in the third quarter of 2024 of $495 thousand, compared to $1.8 million in the second quarter of 2024 and a negative provision of $700 thousand in the third quarter of 2023. The provision during the third quarter of 2024 was largely attributable to net charge-off activity, partially offset by decreased loan balances.

    The ratio of allowance for credit losses to loans held for investment was 1.41% as of September 30, 2024, compared to 1.40% as of June 30, 2024 and 1.41% as of September 30, 2023.

    The ratio of nonperforming assets to total assets was 0.59% as of September 30, 2024, compared to 0.57% as of June 30, 2024 and 0.12% as of September 30, 2023. The previously disclosed $20.0 million multi-family property credit, which was placed on nonaccrual status in the second quarter of 2024 after the maturity date was accelerated, was subsequently modified during the third quarter. The modification included more stringent credit metrics. Although the loan remains in nonaccrual status, the loan continues to pay as agreed and is showing improving credit trends. Annualized net charge-offs were 0.11% for the third quarter of 2024, compared to 0.10% for the second quarter of 2024 and 0.05% for the third quarter of 2023.

    Capital

    Book value per share increased to $27.04 at September 30, 2024, compared to $25.45 at June 30, 2024. The change was primarily driven by $8.9 million of net income after dividends paid and an increase in accumulated other comprehensive income (“AOCI”) of $16.6 million. The increase in AOCI was attributed to the after-tax increase in fair value of our available for sale securities, net of fair value hedges, as a result of decreases in long-term market interest rates during the period. Tangible common equity to tangible assets (non-GAAP) increased 33 basis points to 9.77% in the third quarter of 2024.

    Conference Call

    South Plains will host a conference call to discuss its third quarter 2024 financial results today, October 23, 2024, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

    A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13749147. The replay will be available until November 6, 2024.

    About South Plains Financial, Inc.

    South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

    We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

    A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

    Available Information

    The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

    The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; the impact of changes in U.S. presidential administrations or Congress; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

    Contact: Mikella Newsom, Chief Risk Officer and Secretary
      (866) 771-3347
      investors@city.bank
       

    Source: South Plains Financial, Inc.

     
    South Plains Financial, Inc.
    Consolidated Financial Highlights – (Unaudited)
    (Dollars in thousands, except share data)
     
      As of and for the quarter ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Selected Income Statement Data:                            
    Interest income $ 61,640     $ 59,208     $ 58,727     $ 57,236     $ 56,528  
    Interest expense   24,346       23,320       23,359       22,074       20,839  
    Net interest income   37,294       35,888       35,368       35,162       35,689  
    Provision for credit losses   495       1,775       830       600       (700 )
    Noninterest income   10,635       12,709       11,409       9,146       12,277  
    Noninterest expense   33,128       32,572       31,930       30,597       31,489  
    Income tax expense   3,094       3,116       3,143       2,787       3,683  
    Net income   11,212       11,134       10,874       10,324       13,494  
    Per Share Data (Common Stock):                            
    Net earnings, basic $ 0.68     $ 0.68     $ 0.66     $ 0.63     $ 0.80  
    Net earnings, diluted   0.66       0.66       0.64       0.61       0.78  
    Cash dividends declared and paid   0.14       0.14       0.13       0.13       0.13  
    Book value   27.04       25.45       24.87       24.80       22.39  
    Tangible book value (non-GAAP)   25.75       24.15       23.56       23.47       21.07  
    Weighted average shares outstanding, basic   16,386,079       16,425,360       16,429,919       16,443,908       16,842,594  
    Weighted average shares outstanding, dilutive   17,056,959       16,932,077       16,938,857       17,008,892       17,354,182  
    Shares outstanding at end of period   16,386,627       16,424,021       16,431,755       16,417,099       16,600,442  
    Selected Period End Balance Sheet Data:                            
    Cash and cash equivalents $ 471,167     $ 298,006     $ 371,939     $ 330,158     $ 352,424  
    Investment securities   606,889       591,031       599,869       622,762       584,969  
    Total loans held for investment   3,037,375       3,094,273       3,011,799       3,014,153       2,993,563  
    Allowance for credit losses   42,886       43,173       42,174       42,356       42,075  
    Total assets   4,337,659       4,220,936       4,218,993       4,204,793       4,186,440  
    Interest-bearing deposits   2,720,880       2,672,948       2,664,397       2,651,952       2,574,361  
    Noninterest-bearing deposits   998,480       951,565       974,174       974,201       1,046,253  
    Total deposits   3,719,360       3,624,513       3,638,571       3,626,153       3,620,614  
    Borrowings   110,307       110,261       110,214       110,168       122,493  
    Total stockholders’ equity   443,122       417,985       408,712       407,114       371,716  
    Summary Performance Ratios:                            
    Return on average assets (annualized)   1.05 %     1.07 %     1.04 %     0.99 %     1.27 %
    Return on average equity (annualized)   10.36 %     10.83 %     10.72 %     10.52 %     14.01 %
    Net interest margin (1)   3.65 %     3.63 %     3.56 %     3.52 %     3.52 %
    Yield on loans   6.68 %     6.60 %     6.53 %     6.29 %     6.10 %
    Cost of interest-bearing deposits   3.36 %     3.33 %     3.27 %     3.14 %     2.93 %
    Efficiency ratio   68.80 %     66.72 %     67.94 %     68.71 %     65.34 %
    Summary Credit Quality Data:                            
    Nonperforming loans $ 24,693     $ 23,452     $ 3,380     $ 5,178     $ 4,783  
    Nonperforming loans to total loans held for investment   0.81 %     0.76 %     0.11 %     0.17 %     0.16 %
    Other real estate owned   973       755       862       912       242  
    Nonperforming assets to total assets   0.59 %     0.57 %     0.10 %     0.14 %     0.12 %
    Allowance for credit losses to total loans held for investment   1.41 %     1.40 %     1.40 %     1.41 %     1.41 %
    Net charge-offs to average loans outstanding (annualized)   0.11 %     0.10 %     0.13 %     0.08 %     0.05 %
                                           
      As of and for the quarter ended
      September 30
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Capital Ratios:                            
    Total stockholders’ equity to total assets   10.22 %     9.90 %     9.69 %     9.68 %     8.88 %
    Tangible common equity to tangible assets (non-GAAP)   9.77 %     9.44 %     9.22 %     9.21 %     8.40 %
    Common equity tier 1 to risk-weighted assets   13.25 %     12.61 %     12.67 %     12.41 %     12.19 %
    Tier 1 capital to average assets   11.76 %     11.81 %     11.51 %     11.33 %     11.13 %
    Total capital to risk-weighted assets   17.61 %     16.86 %     17.00 %     16.74 %     16.82 %

    (1)   Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

     
    South Plains Financial, Inc.
    Average Balances and Yields – (Unaudited)
    (Dollars in thousands)
     
      For the Three Months Ended
      September 30, 2024   September 30, 2023
           
      Average
    Balance
      Interest   Yield/Rate   Average
    Balance
      Interest   Yield/Rate
    Assets                                  
    Loans $ 3,069,900   $ 51,513     6.68 %   $ 3,005,699   $ 46,250     6.10 %
    Debt securities – taxable   524,641     5,300     4.02 %     561,068     5,422     3.83 %
    Debt securities – nontaxable   154,806     1,016     2.61 %     159,577     1,054     2.62 %
    Other interest-bearing assets   336,887     4,032     4.76 %     325,201     4,031     4.92 %
                                       
    Total interest-earning assets   4,086,234     61,861     6.02 %     4,051,545     56,757     5.56 %
    Noninterest-earning assets   172,922                 177,216            
                                       
    Total assets $ 4,259,156               $ 4,228,761            
                                       
    Liabilities & stockholders’ equity                                  
    NOW, Savings, MMDA’s $ 2,247,299     18,143     3.21 %   $ 2,223,014     16,061     2.87 %
    Time deposits   431,307     4,510     4.16 %     344,395     2,904     3.35 %
    Short-term borrowings   3         0.00 %     3         0.00 %
    Notes payable & other long-term borrowings           0.00 %             0.00 %
    Subordinated debt   63,891     835     5.20 %     76,077     1,012     5.28 %
    Junior subordinated deferrable interest debentures   46,393     858     7.36 %     46,393     862     7.37 %
                                       
    Total interest-bearing liabilities   2,788,893     24,346     3.47 %     2,689,882     20,839     3.07 %
    Demand deposits   976,048                 1,071,175            
    Other liabilities   63,661                 85,713            
    Stockholders’ equity   430,554                 381,991            
                                       
    Total liabilities & stockholders’ equity $ 4,259,156               $ 4,228,761            
                                       
    Net interest income       $ 37,515               $ 35,918      
    Net interest margin (2)               3.65 %                 3.52 %
                                           

    (1)   Average loan balances include nonaccrual loans and loans held for sale.
    (2)   Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

     
    South Plains Financial, Inc.
    Average Balances and Yields – (Unaudited)
    (Dollars in thousands)
     
      For the Nine Months Ended
      September 30, 2024   September 30, 2023
                           
      Average
    Balance
      Interest   Yield/Rate   Average
    Balance
      Interest   Yield/Rate
    Assets                                  
    Loans $ 3,055,679   $ 151,031     6.60 %   $ 2,892,887   $ 128,724     5.95 %
    Debt securities – taxable   537,425     16,096     4.00 %     574,159     16,027     3.73 %
    Debt securities – nontaxable   155,489     3,062     2.63 %     194,492     3,870     2.66 %
    Other interest-bearing assets   287,192     10,052     4.68 %     212,384     7,010     4.41 %
                                       
    Total interest-earning assets   4,035,785     180,241     5.97 %     3,873,922     155,631     5.37 %
    Noninterest-earning assets   176,230                 183,149            
                                       
    Total assets $ 4,212,015               $ 4,057,071            
                                       
    Liabilities & stockholders’ equity                                  
    NOW, Savings, MMDA’s $ 2,251,569     53,792     3.19 %   $ 2,090,250     38,529     2.46 %
    Time deposits   399,646     12,153     4.06 %     309,250     6,239     2.70 %
    Short-term borrowings   3         0.00 %     111     5     6.02 %
    Notes payable & other long-term borrowings           0.00 %             0.00 %
    Subordinated debt   63,845     2,505     5.24 %     76,031     3,037     5.34 %
    Junior subordinated deferrable interest debentures   46,393     2,575     7.41 %     46,393     2,402     6.92 %
                                       
    Total interest-bearing liabilities   2,761,456     71,025     3.44 %     2,522,035     50,212     2.66 %
    Demand deposits   964,829                 1,085,345            
    Other liabilities   68,458                 74,865            
    Stockholders’ equity   417,272                 374,826            
                                       
    Total liabilities & stockholders’ equity $ 4,212,015               $ 4,057,071            
                                       
    Net interest income       $ 109,216               $ 105,419      
    Net interest margin (2)               3.61 %                 3.64 %
                                           

    (1)   Average loan balances include nonaccrual loans and loans held for sale.
    (2)   Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

     
    South Plains Financial, Inc.
    Consolidated Balance Sheets
    (Unaudited)
    (Dollars in thousands)
     
      As of
      September 30,
    2024
      December 31,
    2023
               
    Assets          
    Cash and due from banks $ 60,863     $ 62,821  
    Interest-bearing deposits in banks   410,304       267,337  
    Securities available for sale   606,889       622,762  
    Loans held for sale   11,389       14,499  
    Loans held for investment   3,037,375       3,014,153  
    Less:  Allowance for credit losses   (42,886 )     (42,356 )
    Net loans held for investment   2,994,489       2,971,797  
    Premises and equipment, net   53,323       55,070  
    Goodwill   19,315       19,315  
    Intangible assets   1,882       2,429  
    Mortgage servicing rights   24,573       26,569  
    Other assets   154,632       162,194  
    Total assets $ 4,337,659     $ 4,204,793  
               
    Liabilities and Stockholders’ Equity          
    Noninterest-bearing deposits $ 998,480     $ 974,201  
    Interest-bearing deposits   2,720,880       2,651,952  
    Total deposits   3,719,360       3,626,153  
    Subordinated debt   63,914       63,775  
    Junior subordinated deferrable interest debentures   46,393       46,393  
    Other liabilities   64,870       61,358  
    Total liabilities   3,894,537       3,797,679  
    Stockholders’ Equity          
    Common stock   16,386       16,417  
    Additional paid-in capital   97,367       97,107  
    Retained earnings   371,782       345,264  
    Accumulated other comprehensive income (loss)   (42,413 )     (51,674 )
    Total stockholders’ equity   443,122       407,114  
    Total liabilities and stockholders’ equity $ 4,337,659     $ 4,204,793  
     
    South Plains Financial, Inc.
    Consolidated Statements of Income
    (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended   Nine Months Ended
      September 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
                           
    Interest income:                      
    Loans, including fees $ 51,505   $ 46,242     $ 151,008   $ 128,703
    Other   10,135     10,286       28,567     26,094
    Total interest income   61,640     56,528       179,575     154,797
    Interest expense:                      
    Deposits   22,653     18,965       65,945     44,768
    Subordinated debt   835     1,012       2,505     3,037
    Junior subordinated deferrable interest debentures   858     862       2,575     2,402
    Other                 5
    Total interest expense   24,346     20,839       71,025     50,212
    Net interest income   37,294     35,689       108,550     104,585
    Provision for credit losses   495     (700 )     3,100     4,010
    Net interest income after provision for credit losses   36,799     36,389       105,450     100,575
    Noninterest income:                      
    Service charges on deposits   2,023     1,840       5,785     5,286
    Income from insurance activities   28     30       92     1,478
    Mortgage banking activities   1,890     4,602       9,232     12,146
    Bank card services and interchange fees   3,302     3,157       10,415     10,156
    Gain on sale of subsidiary       290           33,778
    Other   3,392     2,358       9,229     7,236
    Total noninterest income   10,635     12,277       34,753     70,080
    Noninterest expense:                      
    Salaries and employee benefits   18,767     18,709       56,954     61,400
    Net occupancy expense   4,255     4,111       12,204     12,246
    Professional services   1,807     1,560       5,028     4,924
    Marketing and development   1,015     853       2,629     2,573
    Other   7,284     6,256       20,815     23,206
    Total noninterest expense   33,128     31,489       97,630     104,349
    Income before income taxes   14,306     17,177       42,573     66,306
    Income tax expense   3,094     3,683       9,353     13,885
    Net income $ 11,212   $ 13,494     $ 33,220   $ 52,421
     
    South Plains Financial, Inc.
    Loan Composition
    (Unaudited)
    (Dollars in thousands)
     
      As of
      September 30,
    2024
      December 31,
    2023
               
    Loans:          
    Commercial Real Estate $ 1,120,448   $ 1,081,056
    Commercial – Specialized   406,255     372,376
    Commercial – General   526,448     517,361
    Consumer:          
    1-4 Family Residential   562,401     534,731
    Auto Loans   253,509     305,271
    Other Consumer   65,789     74,168
    Construction   102,525     129,190
    Total loans held for investment $ 3,037,375   $ 3,014,153
     
    South Plains Financial, Inc.
    Deposit Composition
    (Unaudited)
    (Dollars in thousands)
     
      As of
      September 30,
    2024
      December 31,
    2023
               
    Deposits:          
    Noninterest-bearing deposits $ 998,480   $ 974,201
    NOW & other transaction accounts   496,176     562,066
    MMDA & other savings   1,780,337     1,722,170
    Time deposits   444,367     367,716
    Total deposits $ 3,719,360   $ 3,626,153
     
    South Plains Financial, Inc.
    Reconciliation of Non-GAAP Financial Measures (Unaudited)
    (Dollars in thousands)
     
      For the quarter ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Pre-tax, pre-provision income                                    
    Net income $ 11,212     $ 11,134     $ 10,874     $ 10,324     $ 13,494  
    Income tax expense   3,094       3,116       3,143       2,787       3,683  
    Provision for credit losses   495       1,775       830       600       (700 )
    Pre-tax, pre-provision income $ 14,801     $ 16,025     $ 14,847     $ 13,711     $ 16,477  
    Efficiency Ratio                            
    Noninterest expense $ 33,128     $ 32,572     $ 31,930     $ 30,597     $ 31,489  
                                 
    Net interest income   37,294       35,888       35,368       35,162       35,689  
    Tax equivalent yield adjustment   221       223       223       225       229  
    Noninterest income   10,635       12,709       11,409       9,146       12,277  
    Total income   48,150       48,820       47,000       44,533       48,195  
                                 
    Efficiency ratio   68.80 %     66.72 %     67.94 %     68.71 %     65.34 %
                                 
    Noninterest expense $ 33,128     $ 32,572     $ 31,930     $ 30,597     $ 31,489  
    Less: Subsidiary transaction and related expenses                            
    Less:  net loss on sale of securities                            
    Adjusted noninterest expense   33,128       32,572       31,930       30,597       31,489  
                                 
    Total income   48,150       48,820       47,000       44,533       48,195  
    Less:  gain on sale of subsidiary                           (290 )
    Adjusted total income   48,150       48,820       47,000       44,533       47,905  
                                 
    Adjusted efficiency ratio   68.80 %     66.72 %     67.94 %     68.71 %     65.73 %
      As of
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Tangible common equity                            
    Total common stockholders’ equity $ 443,122     $ 417,985     $ 408,712     $ 407,114     $ 371,716  
    Less:  goodwill and other intangibles   (21,197 )     (21,379 )     (21,562 )     (21,744 )     (21,936 )
                                 
    Tangible common equity $ 421,925     $ 396,606     $ 387,150     $ 385,370     $ 349,780  
                                 
    Tangible assets                            
    Total assets $ 4,337,659     $ 4,220,936     $ 4,218,993     $ 4,204,793     $ 4,186,440  
    Less:  goodwill and other intangibles   (21,197 )     (21,379 )     (21,562 )     (21,744 )     (21,936 )
                                 
    Tangible assets $ 4,316,462     $ 4,199,557     $ 4,197,431     $ 4,183,049     $ 4,164,504  
                                 
    Shares outstanding   16,386,627       16,424,021       16,431,755       16,417,099       16,600,442  
                                 
    Total stockholders’ equity to total assets   10.22 %     9.90 %     9.69 %     9.68 %     8.88 %
    Tangible common equity to tangible assets   9.77 %     9.44 %     9.22 %     9.21 %     8.40 %
    Book value per share $ 27.04     $ 25.45     $ 24.87     $ 24.80     $ 22.39  
    Tangible book value per share $ 25.75     $ 24.15     $ 23.56     $ 23.47     $ 21.07  

    The MIL Network

  • MIL-OSI: Horizon Bancorp, Inc. Reports Third Quarter 2024 Results, Including EPS of $0.41 and Continued Profitability Improvement, as well as Accretive Balance Sheet Initiatives

    Source: GlobeNewswire (MIL-OSI)

    MICHIGAN CITY, Ind., Oct. 23, 2024 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three and nine months ended September 30, 2024.

    Net income for the three months ended September 30, 2024 was $18.2 million, or $0.41 per diluted share, compared to net income of $14.1 million, or $0.32, for the second quarter of 2024 and compared to net income of $16.2 million, or $0.37 per diluted share, for the third quarter of 2023.

    Net income for the nine months ended September 30, 2024 was $46.3 million, or $1.05 per diluted share, compared to net income of $53.2 million, or $1.21, for the nine months ended September 30, 2023.

    Third Quarter 2024 Highlights

    • Net interest income increased for the fourth consecutive quarter to $46.9 million, compared to $45.3 million in the linked quarter of 2024. Net interest margin, on a fully taxable equivalent (“FTE”) basis1, expanded for the fourth consecutive quarter to 2.66%, compared to 2.64% in the linked quarter of 2024.
    • Total loans held for investment (“HFI”) were $4.8 billion at September 30, 2024, relatively unchanged from June 30, 2024 balances. However, consistent with the Company’s stated growth strategy, the commercial portfolio showed continued organic growth momentum during the quarter, which was offset with planned run-off of lower-yielding indirect auto loans in the consumer loan portfolio. 
    • Positive deposit growth of 1.7% during the quarter, to $5.7 billion at period end. The quarter was highlighted by stable non-interest bearing deposit balances and growth in core relationship consumer and commercial portfolios. 
    • Credit quality remains strong, with annualized net charge offs of 0.03% of average loans during the third quarter. Non-performing assets to total assets of 0.32% remains well within expected ranges, with no material change in the loss outlook. Provision for loan losses of $1.0 million reflects continued positive credit performance.

    “Horizon continues to execute well on its key strategic initiatives of consistently improving our operating performance through a more productive balance sheet, growth in non-interest income and continued disciplined in our operating model. As a result, we are optimistic on the positive momentum of the franchise through year-end 2024 and into 2025. During the quarter, our commercial team was able to deliver another quarter of quality loan growth, even coming off a strong end to the second quarter. The strength of Horizon’s core deposit franchise showed solid performance, and our credit metrics remain well managed. These efforts led to a third consecutive quarter of sequential growth in pre-tax pre-provision income,” President and Chief Executive Officer Thomas M. Prame said. “Importantly, we continue our efforts to optimize our business model, and are pleased to announce the repositioning of a portion of our securities portfolio and the intended sale of our mortgage warehouse business during the fourth quarter. These shareholder accretive actions are expected to yield sustainable improvement in the profitability of our business that will be evident in the fourth quarter, and positively impact Horizon’s financial performance in 2025.”

    _________________________
    1
    Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Accretive Fourth Quarter 2024 Strategic Actions

    Horizon announced strategic actions taking place in the fourth quarter of 2024, which are designed to simplify its business, strengthen the balance sheet and improve long-term structural profitability. In October, the Company completed the repositioning of about $325 million of available-for-sale securities. Additionally, the Company has signed a letter of intent to sell its mortgage warehouse business, which is expected to generate a gain-on-sale. Details on these actions, the use of proceeds, and the expected financial impact are available in the Company’s third quarter 2024 investor presentation published at investor.horizonbank.com.

     
    Financial Highlights
    (Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
      Three Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,
      2024   2024   2024   2023   2023
    Income statement:                  
    Net interest income $ 46,910     $ 45,279     $ 43,288     $ 42,257     $ 42,090  
    Credit loss expense   1,044       2,369       805       1,274       263  
    Non-interest income   11,511       10,485       9,929       (20,449 )     11,830  
    Non-interest expense   39,272       37,522       37,107       39,330       36,168  
    Income tax expense   (75 )     1,733       1,314       6,419       1,284  
    Net income $ 18,180     $ 14,140     $ 13,991     $ (25,215 )   $ 16,205  
                       
    Per share data:                  
    Basic earnings per share $ 0.42     $ 0.32     $ 0.32     $ (0.58 )   $ 0.37  
    Diluted earnings per share   0.41       0.32       0.32       (0.58 )     0.37  
    Cash dividends declared per common share   0.16       0.16       0.16       0.16       0.16  
    Book value per common share   17.27       16.62       16.49       16.47       15.89  
    Market value – high   16.57       12.74       14.44       14.65       12.68  
    Market value – low   11.89       11.29       11.75       9.33       9.90  
    Weighted average shares outstanding – Basic   43,712,059       43,712,059       43,663,610       43,649,585       43,646,609  
    Weighted average shares outstanding – Diluted   44,112,321       43,987,187       43,874,036       43,649,585       43,796,069  
    Common shares outstanding (end of period)   43,712,059       43,712,059       43,726,380       43,652,063       43,648,501  
                       
    Key ratios:                  
    Return on average assets   0.92 %     0.73 %     0.72 %   (1.27)        %     0.81 %
    Return on average stockholders’ equity   9.80       7.83       7.76       (14.23 )     8.99  
    Total equity to total assets   9.52       9.18       9.18       9.06       8.71  
    Total loans to deposit ratio   83.92       85.70       82.78       78.01       76.52  
    Allowance for credit losses to HFI loans   1.10       1.08       1.09       1.13       1.14  
    Annualized net charge-offs of average total loans(1)   0.03       0.05       0.04       0.07       0.07  
    Efficiency ratio   67.22       67.29       69.73       180.35       67.08  
                       
    Key metrics (Non-GAAP)(2):                  
    Net FTE interest margin   2.66 %     2.64 %     2.50 %     2.43 %     2.41 %
    Return on average tangible common equity   12.65       10.18       10.11       (18.76 )     11.79  
    Tangible common equity to tangible assets   7.58       7.22       7.20       7.08       6.72  
    Tangible book value per common share $ 13.46     $ 12.80     $ 12.65     $ 12.60     $ 12.00  
                       
                       
    (1) Average total loans includes loans held for investment and held for sale.
    (2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
     

    Income Statement Highlights

    Net Interest Income

    Net interest income was $46.9 million in the third quarter of 2024, compared to $45.3 million in the second quarter of 2024, driven by net growth in average interest earning assets of $117.5 million and continued net FTE interest margin expansion during the quarter. Horizon’s net FTE interest margin1 was 2.66% for the third quarter of 2024, compared to 2.64% for the second quarter of 2024, attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward lower-cost deposit balances. Interest accretion from the fair value of acquired loans did not contribute significantly to the third quarter net interest income, or net FTE interest margin.

    Provision for Credit Losses

    During the third quarter of 2024, the Company recorded a provision for credit losses of $1.0 million. This compares to a provision for credit losses of $2.4 million during the second quarter of 2024, and $0.3 million during the third quarter of 2023. The decrease in the provision for credit losses during the third quarter of 2024 when compared with the second quarter of 2024 was primarily attributable to less total loan growth in the current quarter relative to the prior quarter.

    For the third quarter of 2024, the allowance for credit losses included net charge-offs of $0.4 million, or an annualized 0.03% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the second quarter of 2024, and net charge-offs of $0.7 million, or an annualized 0.07% of average loans outstanding, in the third quarter of 2023.

    The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.10% at September 30, 2024, compared to 1.08% at June 30, 2024 and 1.14% at September 30, 2023.

    Non-Interest Income

    For the Quarter Ended September 30,   June 30,   March 31,   December 31,   September 30,
    (Dollars in Thousands) 2024
      2024
      2024
      2023   2023
    Non-interest Income                  
    Service charges on deposit accounts $ 3,320     $ 3,130     $ 3,214     $ 3,092     $ 3,086  
    Wire transfer fees   123       113       101       103       120  
    Interchange fees   3,511       3,826       3,109       3,224       3,186  
    Fiduciary activities   1,394       1,372       1,315       1,352       1,206  
    Gains (losses) on sale of investment securities                     (31,572 )      
    Gain on sale of mortgage loans   1,622       896       626       951       1,582  
    Mortgage servicing income net of impairment   412       450       439       724       631  
    Increase in cash value of bank owned life insurance   349       318       298       658       1,055  
    Other income   780       380       827       1,019       964  
    Total non-interest income $ 11,511     $ 10,485     $ 9,929     $ (20,449 )   $ 11,830  
                                           

    Total non-interest income was $11.5 million in the third quarter of 2024, compared to $10.5 million in the second quarter of 2024, due primarily to higher realized gains on sale of mortgage loans and increased other income.

    _________________________
    1
    Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Non-Interest Expense

    For the Quarter Ended September 30,   June 30,   March 31,   December 31,   September 30,
    (Dollars in Thousands) 2024
      2024
      2024
      2023
      2023
    Non-interest Expense                  
    Salaries and employee benefits $ 21,829     $ 20,583     $ 20,268     $ 21,877     $ 20,058  
    Net occupancy expenses   3,207       3,192       3,546       3,260       3,283  
    Data processing   2,977       2,579       2,464       2,942       2,999  
    Professional fees   676       714       607       772       707  
    Outside services and consultants   3,677       3,058       3,359       2,394       2,316  
    Loan expense   1,034       1,038       719       1,345       1,120  
    FDIC insurance expense   1,204       1,315       1,320       1,200       1,300  
    Core deposit intangible amortization   844       844       872       903       903  
    Other losses   297       515       16       508       188  
    Other expense   3,527       3,684       3,936       4,129       3,294  
    Total non-interest expense $ 39,272     $ 37,522     $ 37,107     $ 39,330     $ 36,168  
                                           

    Total non-interest expense was $39.3 million in the third quarter of 2024, compared with $37.5 million in the second quarter of 2024. The increase in non-interest expense during the third quarter of 2024 was primarily driven by a $1.2 million increase in salaries and employee benefits expense, which is partially attributable to a legacy benefits program expense, and a $0.6 million increase in outside services and consultants expense related to strategic initiatives.

    Income Taxes

    Horizon’s effective tax rate was -0.4% for the third quarter of 2024, as compared to 10.9% for the second quarter of 2024. The decrease in the effective tax rate during the third quarter was primarily due to an increase in net realizable tax credits for the current year, which reduced the Company’s estimated annual effective tax rate.

    Balance Sheet

    Total assets increased by $14.9 million, or 0.2%, to $7.93 billion as of September 30, 2024, from $7.91 billion as of June 30, 2024. The increase in total assets is primarily due to increases in federal funds sold of $79.5 million, or 230.6%, to $113.9 million as of September 30, 2024, compared to $34.5 million as of June 30, 2024. The increase in federal funds sold during the period was partially offset by a decrease in other assets of $46.6 million, or 28.1%, to $119.0 million as of September 30, 2024, from $165.7 million as of June 30, 2024.

    Total investment securities remained unchanged, at $2.4 billion as of September 30, 2024, compared to June 30, 2024, as the positive market impact to available for sale securities was offset by normal pay-downs and maturities. There were no purchases of investment securities during the third quarter of 2024.

    Total loans HFI and loans held for sale were relatively consistent at $4.8 billion as of September 30, 2024 compared to $4.8 billion as of June 30, 2024, as growth in commercial loans of $9.5 million were offset by a decline in consumer loans of $43.3 million.

    Total deposit balances increased by $96.9 million, or 1.7%, to $5.7 billion as of September 30, 2024 when compared to balances as of June 30, 2024. Non-interest bearing deposit balances were essentially unchanged during the quarter.

    Total borrowings decreased by $86.4 million, or 7.0%, to $1.1 billion as of September 30, 2024, primarily related to the repayment of a portion of Federal Home Loan Bank advances, when compared to balances as of June 30, 2024.

    Capital

    The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters:

    For the Quarter Ended September 30,   June 30,   March 31, December 31,
      2024*   2024   2024** 2023**
    Consolidated Capital Ratios            
    Total capital (to risk-weighted assets)   13.52 %     13.41 %     13.75 %   14.04 %
    Tier 1 capital (to risk-weighted assets)   11.70 %     11.59 %     11.89 %   12.13 %
    Common equity tier 1 capital (to risk-weighted assets)   10.74 %     10.63 %     10.89 %   11.11 %
    Tier 1 capital (to average assets)   9.01 %     9.02 %     8.91 %   8.61 %
    *Preliminary estimate – may be subject to change  
    **Prior periods were previously revised (see disclosure in Form 10-Q for the quarterly period ending June 30, 2024)  
       

    As of September 30, 2024, the ratio of total stockholders’ equity to total assets is 9.52%. Book value per common share was $17.27, increasing $0.65 during the third quarter of 2024.

    Tangible common equity1 totaled $588.5 million at September 30, 2024, and the ratio of tangible common equity to tangible assets1 was 7.58% at September 30, 2024, up from 7.22% at June 30, 2024. Tangible book value, which excludes intangible assets from total equity, per common share1 was $13.46, increasing $0.66 during the third quarter of 2024.

    Credit Quality

    As of September 30, 2024, total non-accrual loans increased by $5.3 million, or 29.0%, from June 30, 2024, to 0.49% of total loans HFI. Total non-performing assets increased $5.1 million, or 25.0%, to $25.6 million, compared to $20.5 million as of June 30, 2024. The ratio of non-performing assets to total assets increased to 0.32% compared to 0.26% as of June 30, 2024.

    As of September 30, 2024, net charge-offs decreased by $0.2 million to $0.4 million, compared to $0.6 million as of June 30, 2024 and remain just 0.03% annualized of average loans.

    _________________________
    1
    Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Earnings Conference Call

    As previously announced, Horizon will host a conference call to review its third quarter financial results and operating performance.

    Participants may access the live conference call on October 24, 2024 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

    A telephone replay of the call will be available approximately one hour after the end of the conference through November 1, 2024. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 9847279.

    About Horizon Bancorp, Inc.

    Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.9 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

    Use of Non-GAAP Financial Measures

    Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. We believe that this shows the impact of such events as acquisition-related purchase accounting adjustments and swap termination fees, among others we have identified in our reconciliations. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to the purchase accounting impacts and one-time costs of acquisitions and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

    Forward Looking Statements

    This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

    Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; macroeconomic conditions and their impact on Horizon and its customers; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

       
      Condensed Consolidated Statements of Income
      (Dollars in Thousands Except Per Share Data, Unaudited)
      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                          
    Loans receivable $ 75,488     $ 71,880     $ 66,954     $ 65,583     $ 63,003     $ 214,322     $ 178,961  
    Investment securities – taxable   8,133       7,986       7,362       8,157       8,788       23,481       26,253  
    Investment securities – tax-exempt   6,310       6,377       6,451       6,767       7,002       19,138       21,617  
    Other   957       738       4,497       3,007       1,332       6,192       1,960  
    Total interest income   90,888       86,981       85,264       83,514       80,125       263,133       228,791  
    Interest Expense                          
    Deposits   30,787       28,447       27,990       27,376       24,704       87,224       58,481  
    Borrowed funds   11,131       11,213       11,930       11,765       11,224       34,274       30,713  
    Subordinated notes   830       829       831       870       880       2,490       2,641  
    Junior subordinated debentures issued to capital trusts   1,230       1,213       1,225       1,246       1,227       3,668       3,469  
    Total interest expense   43,978       41,702       41,976       41,257       38,035       127,656       95,304  
    Net Interest Income   46,910       45,279       43,288       42,257       42,090       135,477       133,487  
    Provision for loan losses   1,044       2,369       805       1,274       263       4,218       1,185  
    Net Interest Income after Provision for Loan Losses   45,866       42,910       42,483       40,983       41,827       131,259       132,302  
    Non-interest Income                          
    Service charges on deposit accounts   3,320       3,130       3,214       3,092       3,086       9,664       9,135  
    Wire transfer fees   123       113       101       103       120       337       345  
    Interchange fees   3,511       3,826       3,109       3,224       3,186       10,446       9,637  
    Fiduciary activities   1,394       1,372       1,315       1,352       1,206       4,081       3,728  
    Gains (losses) on sale of investment securities                     (31,572 )                 (480 )
    Gain on sale of mortgage loans   1,622       896       626       951       1,582       3,144       3,372  
    Mortgage servicing income net of impairment   412       450       439       724       631       1,301       1,984  
    Increase in cash value of bank owned life insurance   349       318       298       658       1,055       965       3,051  
    Other income   780       380       827       1,019       964       1,987       1,675  
    Total non-interest income   11,511       10,485       9,929       (20,449 )     11,830       31,925       32,447  
    Non-interest Expense                          
    Salaries and employee benefits   21,829       20,583       20,268       21,877       20,058       62,680       58,932  
    Net occupancy expenses   3,207       3,192       3,546       3,260       3,283       9,945       10,095  
    Data processing   2,977       2,579       2,464       2,942       2,999       8,020       8,684  
    Professional fees   676       714       607       772       707       1,997       1,873  
    Outside services and consultants   3,677       3,058       3,359       2,394       2,316       10,094       7,548  
    Loan expense   1,034       1,038       719       1,345       1,120       2,791       3,635  
    FDIC insurance expense   1,204       1,315       1,320       1,200       1,300       3,839       2,680  
    Core deposit intangible amortization   844       844       872       903       903       2,560       2,709  
    Other losses   297       515       16       508       188       828       543  
    Other expense   3,527       3,684       3,936       4,129       3,294       11,147       10,255  
    Total non-interest expense   39,272       37,522       37,107       39,330       36,168       113,901       106,954  
    Income /(Loss) Before Income Taxes   18,105       15,873       15,305       (18,796 )     17,489       49,283       57,795  
    Income tax expense   (75 )     1,733       1,314       6,419       1,284       2,972       4,599  
    Net Income /(Loss) $ 18,180     $ 14,140     $ 13,991     $ (25,215 )   $ 16,205     $ 46,311     $ 53,196  
    Basic Earnings /(Loss) Per Share $ 0.42     $ 0.32     $ 0.32     $ (0.58 )   $ 0.37     $ 1.06     $ 1.22  
    Diluted Earnings/(Loss) Per Share   0.41       0.32       0.32       (0.58 )     0.37       1.05       1.21  
                                                           
      Condensed Consolidated Balance Sheets
      (Dollars in Thousands)
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Assets                  
    Interest earning assets                  
    Federal funds sold $ 113,912     $ 34,453     $ 161,704     $ 401,672     $ 71,576  
    Interest earning deposits   12,107       4,957       9,178       12,071       4,718  
    Interest earning time deposits   735       1,715       1,715       2,205       2,207  
    Federal Home Loan Bank stock   53,826       53,826       53,826       34,509       34,509  
    Investment securities, available for sale   541,170       527,054       535,319       547,251       865,168  
    Investment securities, held to maturity   1,888,379       1,904,281       1,925,725       1,945,638       1,966,483  
    Loans held for sale   2,069       2,440       922       1,418       2,828  
    Gross loans held for investment (HFI)   4,803,996       4,822,840       4,618,175       4,417,630       4,359,002  
    Total Interest earning assets   7,416,194       7,351,566       7,306,564       7,362,394       7,306,491  
    Non-interest earning assets                  
    Allowance for credit losses   (52,881 )     (52,215 )     (50,387 )     (50,029 )     (49,699 )
    Cash   108,815       106,691       100,206       112,772       98,843  
    Cash value of life insurance   37,115       36,773       36,455       36,157       149,212  
    Other assets   119,026       165,656       160,593       177,061       152,280  
    Goodwill   155,211       155,211       155,211       155,211       155,211  
    Other intangible assets   11,067       11,910       12,754       13,626       14,530  
    Premises and equipment, net   93,544       93,695       94,303       94,583       94,716  
    Interest receivable   39,366       43,240       40,008       38,710       37,850  
    Total non-interest earning assets   511,263       560,961       549,143       578,091       652,943  
    Total assets $ 7,927,457     $ 7,912,527     $ 7,855,707     $ 7,940,485     $ 7,959,434  
    Liabilities                  
    Savings and money market deposits $ 3,420,827     $ 3,364,726     $ 3,350,673     $ 3,369,149     $ 3,322,788  
    Time deposits   1,220,653       1,178,389       1,136,121       1,179,739       1,250,606  
    Borrowings   1,142,744       1,229,165       1,219,812       1,217,020       1,214,016  
    Repurchase agreements   122,399       128,169       139,309       136,030       142,494  
    Subordinated notes   55,703       55,668       55,634       55,543       59,007  
    Junior subordinated debentures issued to capital trusts   57,423       57,369       57,315       57,258       57,201  
    Total interest earning liabilities   6,019,749       6,013,486       5,958,864       6,014,739       6,046,112  
    Non-interest bearing deposits   1,085,535       1,087,040       1,093,076       1,116,005       1,126,703  
    Interest payable   11,400       11,240       7,853       22,249       16,281  
    Other liabilities   55,951       74,096       74,664       68,680       76,969  
    Total liabilities   7,172,635       7,185,862       7,134,457       7,221,673       7,266,065  
    Stockholders’ Equity                  
    Preferred stock                            
    Common stock                            
    Additional paid-in capital   358,453       357,673       356,599       356,400       355,478  
    Retained earnings   454,050       442,977       435,927       429,021       461,325  
    Accumulated other comprehensive income (loss)   (57,681 )     (73,985 )     (71,276 )     (66,609 )     (123,434 )
    Total stockholders’ equity   754,822       726,665       721,250       718,812       693,369  
    Total liabilities and stockholders’ equity $ 7,927,457     $ 7,912,527     $ 7,855,707     $ 7,940,485     $ 7,959,434  
                                           
      Loans and Deposits        
      (Dollars in Thousands, Unaudited)        
      September 30,   June 30,   March 31,   December 31,   September 30,   % Change
      2024   2024   2024   2023   2023   Q3’24 vs Q2’24   Q3’24 vs Q3’23
    Commercial:                          
    Commercial real estate $ 2,105,459     $ 2,117,772     $ 1,984,723     $ 1,962,097     $ 1,916,056       (1 )%     10 %
    Commercial & Industrial   808,600       786,788       765,043       712,863       673,188       3 %     20 %
    Total commercial   2,914,059       2,904,560       2,749,766       2,674,960       2,589,244       %     13 %
    Residential Real estate   801,356       797,956       782,071       681,136       675,399       %     19 %
    Mortgage warehouse   80,437       68,917       56,548       45,078       65,923       17 %     22 %
    Consumer   1,008,144       1,051,407       1,029,790       1,016,456       1,028,436       (4 )%     (2 )%
    Total loans held for investment   4,803,996       4,822,840       4,618,175       4,417,630       4,359,002       %     10 %
    Loans held for sale   2,069       2,440       922       1,418       2,828       (15 )%     (27 )%
    Total loans $ 4,806,065     $ 4,825,280     $ 4,619,097     $ 4,419,048     $ 4,361,830       %     10 %
                               
    Deposits:                          
    Interest bearing deposits                          
    Savings and money market deposits $ 3,420,827     $ 3,364,726     $ 3,350,673     $ 3,369,149     $ 3,322,788       2 %     3 %
    Time deposits   1,220,653       1,178,389       1,136,121       1,179,739       1,250,606       4 %     (2 )%
    Total Interest bearing deposits   4,641,480       4,543,115       4,486,794       4,548,888       4,573,394       2 %     1 %
    Non-interest bearing deposits                          
    Non-interest bearing deposits   1,085,535       1,087,040       1,093,076       1,116,005       1,126,703       %     (4 )%
    Total deposits $ 5,727,015     $ 5,630,155     $ 5,579,870     $ 5,664,893     $ 5,700,097       2 %     %
                                                           
      Average Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average
    Balance
    Interest(4) Average
    Rate(4)
      Average
    Balance
    Interest(4) Average
    Rate(4)
      Average
    Balance
    Interest(4) Average
    Rate(4)
    Assets
    Interest earning assets                      
    Federal funds sold $ 64,743   $ 860     5.28 %   $ 47,805   $ 645     5.43 %   $ 92,305   $ 1,247     5.36 %
    Interest earning deposits   8,781     97     4.39 %     7,662     93     4.88 %     8,018     85     4.21 %
    Federal Home Loan Bank stock   53,826     1,607     11.88 %     53,827     1,521     11.36 %     34,509     618     7.10 %
    Investment securities – taxable (1)   1,301,830     6,526     1.99 %     1,309,305     6,465     1.99 %     1,650,081     8,170     1.96 %
    Investment securities – non-taxable (1)   1,125,295     7,987     2.82 %     1,132,065     8,072     2.87 %     1,220,998     8,863     2.88 %
    Total investment securities   2,427,125     14,513     2.38 %     2,441,370     14,537     2.39 %     2,871,079     17,033     2.35 %
    Loans receivable (2) (3)   4,775,788     75,828     6.32 %     4,662,124     72,208     6.23 %     4,280,700     63,254     5.89 %
    Total interest earning assets $ 7,330,263   $ 92,905     5.04 %   $ 7,212,788   $ 89,004     4.96 %   $ 7,286,611   $ 82,237     4.59 %
    Non-interest earning assets                      
    Cash and due from banks $ 108,609         $ 108,319         $ 100,331      
    Allowance for credit losses   (52,111 )         (50,334 )         (49,705 )    
    Other assets   471,259           508,555           587,514      
    Total average assets $ 7,858,020         $ 7,779,328         $ 7,924,751      
                           
    Liabilities and Stockholders’ Equity
    Interest bearing liabilities                      
    Interest bearing deposits $ 3,386,177   $ 18,185     2.14 %   $ 3,334,490   $ 16,814     2.03 %   $ 3,267,594   $ 12,661     1.54 %
    Time deposits   1,189,148     12,602     4.22 %     1,134,590     11,633     4.12 %     1,271,104     12,043     3.76 %
    Borrowings   1,149,952     10,221     3.54 %     1,184,172     10,278     3.49 %     1,180,452     10,399     3.50 %
    Repurchase agreements   123,524     910     2.93 %     125,144     935     3.00 %     136,784     825     2.39 %
    Subordinated notes   55,681     830     5.93 %     55,647     829     5.99 %     58,983     880     5.92 %
    Junior subordinated debentures issued to capital trusts   57,389     1,230     8.53 %     57,335     1,213     8.51 %     57,166     1,227     8.52 %
    Total interest bearing liabilities $ 5,961,871   $ 43,978     2.93 %   $ 5,891,378   $ 41,702     2.85 %   $ 5,972,083   $ 38,035     2.53 %
    Non-interest bearing liabilities
    Demand deposits $ 1,083,214         $ 1,080,676         $ 1,159,241      
    Accrued interest payable and other liabilities   74,563           80,942           77,942      
    Stockholders’ equity   738,372           726,332           715,485      
    Total average liabilities and stockholders’ equity $ 7,858,020         $ 7,779,328         $ 7,924,751      
    Net FTE interest income (non-GAAP) (5)   $ 48,927         $ 47,302         $ 44,202    
    Less FTE adjustments (4)     2,017           2,023           2,112    
    Net Interest Income   $ 46,910         $ 45,279         $ 42,090    
    Net FTE interest margin (Non-GAAP) (4)(5)       2.66 %         2.64 %         2.41 %
     
    (1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
    (2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
    (3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
    (4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate
    (5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
     
      Credit Quality        
      (Dollars in Thousands Except Ratios, Unaudited)        
      Quarter Ended        
      September 30,   June 30,   March 31,   December 31,   September 30,   % Change
      2024   2024   2024   2023   2023   3Q24 vs 2Q24   3Q24 vs 3Q23
    Non-accrual loans                          
    Commercial $ 6,830     $ 4,321     $ 5,493     $ 7,362     $ 6,919       58 %     (1 )%
    Residential Real estate   9,529       8,489       8,725       8,058       7,644       12 %     25 %
    Mortgage warehouse                                 %     %
    Consumer   7,208       5,453       4,835       4,290       4,493       32 %     60 %
    Total non-accrual loans   23,567       18,263       19,053       19,710       19,056       29 %     24 %
    90 days and greater delinquent – accruing interest   819       1,039       108       559       392       (21 )%     109 %
    Total non-performing loans   24,386       19,302       19,161       20,269       19,448       26 %     25 %
                               
    Other real estate owned                          
    Commercial $ 1,158     $ 1,111     $ 1,124     $ 1,124     $ 1,287       4 %     (10 )%
    Residential Real estate                     182       32       %     (100 )%
    Mortgage warehouse                                 %     %
    Consumer   36       57       50       205       72       (37 )%     (50 )%
    Total other real estate owned $ 1,194     $ 1,168     $ 1,174     $ 1,511     $ 1,391       2 %     (14 )%
                               
    Total non-performing assets $ 25,580     $ 20,470     $ 20,335     $ 21,780     $ 20,839       25 %     23 %
                               
    Loan data:                          
    Accruing 30 to 89 days past due loans $ 18,087     $ 19,785     $ 15,154     $ 16,595     $ 13,089       (9 )%     38 %
    Substandard loans   59,775       51,221       47,469       49,526       47,563       17 %     26 %
    Net charge-offs (recoveries)                          
    Commercial   (55 )     57       (57 )     233       142       (196 )%     (139 )%
    Residential Real estate   (9 )     (4 )     (5 )     21       (39 )     (125 )%     77 %
    Mortgage warehouse                                 %     %
    Consumer   439       534       488       531       619       (18 )%     (29 )%
    Total net charge-offs   375       587       426       785       722       (36 )%     (48 )%
                               
    Allowance for credit losses                          
    Commercial   32,854       31,941       30,514       29,736       29,472       3 %     11 %
    Residential Real estate   2,675       2,588       2,655       2,503       2,794       3 %     (4 )%
    Mortgage warehouse   862       736       659       481       714       17 %     21 %
    Consumer   16,490       16,950       16,559       17,309       16,719       (3 )%     (1 )%
    Total allowance for credit losses $ 52,881     $ 52,215     $ 50,387     $ 50,029     $ 49,699       1 %     6 %
                               
    Credit quality ratios                          
    Non-accrual loans to HFI loans   0.49 %     0.38 %     0.41 %     0.45 %     0.44 %        
    Non-performing assets to total assets   0.32 %     0.26 %     0.26 %     0.27 %     0.26 %        
    Annualized net charge-offs of average total loans   0.03 %     0.05 %     0.04 %     0.07 %     0.07 %        
    Allowance for credit losses to HFI loans   1.10 %     1.08 %     1.09 %     1.13 %     1.14 %        
                                                   
    Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024   2024   2024   2023   2023
    Interest income (GAAP) (A) $ 90,888     $ 86,981     $ 85,264     $ 83,514     $ 80,125  
    Taxable-equivalent adjustment:                    
    Investment securities – tax exempt (1)     1,677       1,695       1,715       1,799       1,861  
    Loan receivable (2)     340       328       353       314       251  
    Interest income (non-GAAP) (B)   92,905       89,004       87,332       85,627       82,237  
    Interest expense (GAAP) (C)   43,978       41,702       41,976       41,257       38,035  
    Net interest income (GAAP) (D) =(A) – (C)   46,910       45,279       43,288       42,257       42,090  
    Net FTE interest income (non-GAAP) (E) = (B) – (C)   48,927       47,302       45,356       44,370       44,202  
    Average interest earning assets (F)   7,330,263       7,212,788       7,293,559       7,239,034       7,286,611  
    Net FTE interest margin (non-GAAP) (G) = (E*) / (F)   2.66 %     2.64 %     2.50 %     2.43 %     2.41 %
                         
    (1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
    (2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
    *Annualized
     
    Non–GAAP Reconciliation of Return on Average Tangible Common Equity
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024   2024   2024   2023   2023
                         
    Net income (loss) (GAAP) (A) $ 18,180     $ 14,140     $ 13,991     $ (25,215 )   $ 16,205  
                         
    Average stockholders’ equity (B)   738,372       726,332       725,083       702,793       715,485  
    Average intangible assets (C)   166,819       167,659       168,519       169,401       170,301  
    Average tangible equity (Non-GAAP) (D) = (B) – (C) $ 571,553     $ 558,673     $ 556,564     $ 533,392     $ 545,184  
    Return on average tangible common equity (“ROACE”) (non-GAAP) (E) = (A*) / (D)   12.65 %     10.18 %     10.11 %   (18.76 )%     11.79 %
    *Annualized                    
                         
    Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024   2024   2024   2023   2023
    Total stockholders’ equity (GAAP) (A) $ 754,822     $ 726,665     $ 721,250     $ 718,812     $ 693,369  
    Intangible assets (end of period) (B)   166,278       167,121       167,965       168,837       169,741  
    Total tangible common equity (non-GAAP) (C) = (A) – (B) $ 588,544     $ 559,544     $ 553,285     $ 549,975     $ 523,628  
                         
    Total assets (GAAP) (D)   7,927,457       7,912,527       7,855,707       7,940,485       7,959,434  
    Intangible assets (end of period) (B)   166,278       167,121       167,965       168,837       169,741  
    Total tangible assets (non-GAAP) (E) = (D) – (B) $ 7,761,179     $ 7,745,406     $ 7,687,742     $ 7,771,648     $ 7,789,693  
                         
    Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E)   7.58 %     7.22 %     7.20 %     7.08 %     6.72 %
                                             
    Non–GAAP Reconciliation of Tangible Book Value Per Share
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024
      2024
      2024
      2023
      2023
    Total stockholders’ equity (GAAP) (A) $ 754,822     $ 726,665     $ 721,250     $ 718,812     $ 693,369  
    Intangible assets (end of period) (B)   166,278       167,121       167,965       168,837       169,741  
    Total tangible common equity (non-GAAP) (C) = (A) – (B) $ 588,544     $ 559,544     $ 553,285     $ 549,975     $ 523,628  
    Common shares outstanding (D)   43,712,059       43,712,059       43,726,380       43,652,063       43,648,501  
                         
    Tangible book value per common share (non-GAAP) (E) = (C) / (D) $ 13.46     $ 12.80     $ 12.65     $ 12.60     $ 12.00  
                                             
    Contact: John R. Stewart, CFA
      EVP, Chief Financial Officer
    Phone: (219) 814–5833
    Fax: (219) 874–9280
    Date: October 23, 2024
       

    The MIL Network

  • MIL-OSI: Univest Financial Corporation Reports Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    SOUDERTON, Pa., Oct. 23, 2024 (GLOBE NEWSWIRE) — Univest Financial Corporation (“Univest” or the “Corporation”) (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the “Bank”) and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended September 30, 2024 was $18.6 million, or $0.63 diluted earnings per share, compared to net income of $17.0 million, or $0.58 diluted earnings per share, for the quarter ended September 30, 2023.

    Loans
    Gross loans and leases increased $45.9 million, or 0.7% (2.8% annualized), from June 30, 2024, primarily due to increases in commercial real estate and residential mortgage loans, partially offset by decreases in construction and commercial loans. Gross loans and leases increased $163.5 million, or 2.5% (3.3% annualized), from December 31, 2023, primarily due to increases in commercial, commercial real estate and residential mortgage loans, partially offset by a decrease in construction loans.

    Deposits and Liquidity
    Total deposits increased $358.8 million, or 5.5% (22.0% annualized), from June 30, 2024, primarily due to seasonal increases in public funds partially offset by decreases in commercial, consumer and brokered deposits. Total deposits increased $478.4 million, or 7.5% (10.0% annualized), from December 31, 2023, primarily due to increases in commercial, brokered, and seasonal public funds deposits. Noninterest-bearing deposits totaled $1.3 billion and represented 19.3% of total deposits at September 30, 2024, compared to $1.4 billion representing 21.5% of total deposits at June 30, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.4 billion at September 30, 2024 and June 30, 2024. This represented 20.3% of total deposits at September 30, 2024, compared to 22.1% at June 30, 2024.

    As of September 30, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $504.7 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.6 billion at September 30, 2024, of which $1.8 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at September 30, 2024. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

    Net Interest Income and Margin
    Net interest income of $53.2 million for the third quarter of 2024 decreased $386 thousand, or 0.7%, from the third quarter of 2023 and increased $2.2 million, or 4.3%, from the second quarter of 2024. The decrease in net interest income for the three months ended September 30, 2024 compared to the same period in the prior year reflects the continued pressure on the cost of deposits due to the shift of balances from lower to higher cost deposit products which exceeded the increase in interest income from asset yield expansion and the increase in average interest-earning assets. However, we continue to see indicators of stabilization in cost of funds and our funding mix. The increase in net interest income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was due to higher average balances of interest-earning assets and increased yields on these assets, partially offset by higher interest-bearing liability balances and costs.

    Net interest margin, on a tax-equivalent basis, was 2.82% for the third quarter of 2024, compared to 2.84% for the second quarter of 2024 and 2.96% for the third quarter of 2023. Excess liquidity reduced net interest margin by approximately nine basis points for the quarter ended September 30, 2024 compared to approximately two basis points for the quarter ended June 30, 2024 and approximately four basis points for the quarter ended September 30, 2023. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 2.91% for the quarter ended September 30, 2024 compared to 2.86% for the quarter ended June 30, 2024 and 3.00% for the quarter ended September 30, 2023.

    Noninterest Income
    Noninterest income for the quarter ended September 30, 2024 was $20.2 million, an increase of $1.5 million, or 7.8%, from the comparable period in the prior year.

    Investment advisory commission and fee income increased $476 thousand, or 9.8%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increased assets under management and supervision driven by new business and market appreciation. Insurance commission and fee income increased $386 thousand, or 8.0%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase in commercial lines premiums. Other income increased $1.2 million, or 512.3%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase of $705 thousand in gains on the sale of Small Business Administration loans.

    Other service fee income decreased $1.2 million, or 39.9%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to a $785 thousand valuation allowance recorded on mortgage servicing rights driven by the increase in prepayment speed assumptions as a result of the decrease in interest rates during the quarter. Additionally, net servicing fees on sold mortgage loans decreased by $307 thousand, primarily attributable to the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024 and increased amortization driven by prepayments.

    Noninterest Expense
    Noninterest expense for the quarter ended September 30, 2024 was $48.6 million, a decrease of $436 thousand, or 0.9%, from the comparable period in the prior year.

    Other expense decreased $808 thousand, or 11.0%, for the quarter ended September 30, 2024 primarily due to decreases in retirement plan costs, insurance expense, recruiter fees, and bank shares tax expense.

    Professional fees decreased $184 thousand, or 10.4%, for the quarter ended September 30, 2024 primarily driven by a reduction in consultant fees. Deposit insurance premiums decreased $161 thousand, or 12.8%, for the quarter ended September 30, 2024 driven by an improvement in the financial ratios that contribute to our deposit insurance assessment rate.

    Salaries, benefits and commissions increased $724 thousand, or 2.4%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increases in salary expense and an increase in incentive compensation due to increased profitability, partially offset by an increase in compensation capitalized driven by higher loan production.

    Tax Provision
    The effective income tax rate was 20.6% for the quarter ended September 30, 2024, compared to an effective tax rate of 20.0% for the quarter ended September 30, 2023. The effective tax rates for the three months ended September 30, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. The increase in effective tax rate in the quarter was primarily due to increases in state tax rates.

    Asset Quality and Provision for Credit Losses
    Nonperforming assets totaled $36.6 million at September 30, 2024 and June 30, 2024, and $40.1 million at September 30, 2023.

    Net loan and lease charge-offs were $820 thousand for the three months ended September 30, 2024 compared to $809 thousand and $969 thousand for the three months ended June 30, 2024 and September 30, 2023, respectively.

    The provision for credit losses was $1.4 million for the three months ended September 30, 2024 compared to $707 thousand and $2.0 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at September 30, 2024, June 30, 2024 and September 30, 2023.

    Dividend and Share Repurchases
    On October 23, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 20, 2024 to shareholders of record as of November 6, 2024. During the quarter ended September 30, 2024, the Corporation repurchased 156,728 shares of common stock at an average price of $26.47 per share. Including brokerage fees and excise tax, the average price per share was $26.76. As of September 30, 2024, 539,646 shares are available for repurchase under the Share Repurchase Plan. On October 23, 2024, the Corporation’s Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation’s share repurchase program.

    Conference Call
    Univest will host a conference call to discuss third quarter 2024 results on Thursday, October 24, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=27c257f2&confId=71976. The general public can access the call by dialing 1-833-470-1428; using Access Code 752766. A replay of the conference call will be available through December 24, 2024 by dialing 1-866-813-9403; using Access Code 807549.

    About Univest Financial Corporation
    Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.2 billion in assets and $5.3 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2024. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  

    This press release and the reports Univest files with the Securities and Exchange Commission often contain “forward-looking statements” relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest’s future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition and demand for financial services in our market area; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs and higher costs we pay to retain and attract deposits; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (5) our ability to access cost-effective funding; (6) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (7) economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation; (8) legislative, regulatory, accounting or tax changes; (9) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (10) technological issues that may adversely affect our operations or those of our customers; (11) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (12) changes in the securities markets; (13) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (14) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (15) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

    (UVSP – ER)

    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    September 30, 2024
    (Dollars in thousands)                            
                                 
    Balance Sheet (Period End)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23        
    ASSETS                            
    Cash and due from banks   $ 78,346     $ 66,808     $ 49,318     $ 72,815     $ 68,900          
    Interest-earning deposits with other banks     426,354       124,103       152,288       176,984       221,441          
    Cash and cash equivalents     504,700       190,911       201,606       249,799       290,341          
    Investment securities held-to-maturity     137,681       140,112       143,474       145,777       149,451          
    Investment securities available for sale, net of allowance for credit losses     354,100       342,776       350,819       351,553       334,538          
    Investments in equity securities     2,406       2,995       3,355       3,293       4,054          
    Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost     40,235       37,438       37,394       40,499       42,417          
    Loans held for sale     17,131       28,176       13,188       11,637       16,473          
    Loans and leases held for investment     6,730,734       6,684,837       6,579,086       6,567,214       6,574,958          
    Less: Allowance for credit losses, loans and leases     (86,041 )     (85,745 )     (85,632 )     (85,387 )     (83,837 )        
    Net loans and leases held for investment     6,644,693       6,599,092       6,493,454       6,481,827       6,491,121          
    Premises and equipment, net     47,411       48,174       48,739       51,441       51,287          
    Operating lease right-of-use assets     29,260       29,985       30,702       31,795       31,053          
    Goodwill     175,510       175,510       175,510       175,510       175,510          
    Other intangibles, net of accumulated amortization     7,158       7,701       7,473       10,950       11,079          
    Bank owned life insurance     138,744       137,823       137,896       131,344       130,522          
    Accrued interest and other assets     106,708       114,753       102,958       95,203       100,220          
    Total assets   $ 8,205,737     $ 7,855,446     $ 7,746,568     $ 7,780,628     $ 7,828,066          
                                 
    LIABILITIES                            
    Noninterest-bearing deposits   $ 1,323,953     $ 1,397,308     $ 1,401,806     $ 1,468,320     $ 1,432,559          
    Interest-bearing deposits:     5,530,195       5,098,014       5,003,552       4,907,461       5,006,606          
    Total deposits     6,854,148       6,495,322       6,405,358       6,375,781       6,439,165          
    Short-term borrowings     8,256       11,781       4,816       6,306       14,676          
    Long-term debt     225,000       250,000       250,000       310,000       320,000          
    Subordinated notes     149,136       149,011       148,886       148,761       148,636          
    Operating lease liabilities     32,246       33,015       33,744       34,851       34,017          
    Accrued expenses and other liabilities     59,880       62,180       60,095       65,721       64,374          
    Total liabilities     7,328,666       7,001,309       6,902,899       6,941,420       7,020,868          
                                 
    SHAREHOLDERS’ EQUITY                            
    Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued     157,784       157,784       157,784       157,784       157,784          
    Additional paid-in capital     301,262       300,166       298,914       301,066       300,171          
    Retained earnings     512,938       500,482       488,790       474,691       464,634          
    Accumulated other comprehensive loss, net of tax benefit     (41,623 )     (54,124 )     (54,740 )     (50,646 )     (71,586 )        
    Treasury stock, at cost     (53,290 )     (50,171 )     (47,079 )     (43,687 )     (43,805 )        
    Total shareholders’ equity     877,071       854,137       843,669       839,208       807,198          
    Total liabilities and shareholders’ equity   $ 8,205,737     $ 7,855,446     $ 7,746,568     $ 7,780,628     $ 7,828,066          
                                 
                                 
        For the three months ended,   For the nine months ended,
    Balance Sheet (Average)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
    Assets   $ 8,005,265     $ 7,721,540     $ 7,696,575     $ 7,865,634     $ 7,693,983     $ 7,808,514   $ 7,453,070
    Investment securities, net of allowance for credit losses     493,334       493,140       500,983       489,587       506,341       495,810     513,704
    Loans and leases, gross     6,730,791       6,640,536       6,577,365       6,594,233       6,537,169       6,649,860     6,359,498
    Deposits     6,641,324       6,353,752       6,303,854       6,470,141       6,222,710       6,433,737     5,968,659
    Shareholders’ equity     864,406       844,572       842,546       814,941       811,515       850,559     802,541
                                                         
    Univest Financial Corporation
    Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
    September 30, 2024
    (Dollars in thousands)                            
                                 
    Summary of Major Loan and Lease Categories (Period End)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23        
    Commercial, financial and agricultural   $ 1,044,043     $ 1,055,332     $ 1,014,568     $ 989,723     $ 1,050,004          
    Real estate-commercial     3,442,083       3,373,889       3,283,729       3,302,798       3,275,140          
    Real estate-construction     285,616       313,229       379,995       394,462       427,561          
    Real estate-residential secured for business purpose     530,674       532,628       524,196       517,002       516,471          
    Real estate-residential secured for personal purpose     969,562       952,665       922,412       909,015       861,122          
    Real estate-home equity secured for personal purpose     182,901       179,150       177,446       179,282       176,855          
    Loans to individuals     26,794       26,430       27,200       27,749       27,331          
    Lease financings     249,061       251,514       249,540       247,183       240,474          
    Total loans and leases held for investment, net of deferred income     6,730,734       6,684,837       6,579,086       6,567,214       6,574,958          
    Less: Allowance for credit losses, loans and leases     (86,041 )     (85,745 )     (85,632 )     (85,387 )     (83,837 )        
    Net loans and leases held for investment   $ 6,644,693     $ 6,599,092     $ 6,493,454     $ 6,481,827     $ 6,491,121          
                                 
                                 
    Asset Quality Data (Period End)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23        
    Nonaccrual loans and leases, including nonaccrual loans held for sale*   $ 15,319     $ 16,200     $ 20,363     $ 20,527     $ 18,085          
    Accruing loans and leases 90 days or more past due     310       205       268       534       2,135          
    Total nonperforming loans and leases     15,629       16,405       20,631       21,061       20,220          
    Other real estate owned     20,915       20,007       19,220       19,032       19,916          
    Repossessed assets     79       149       167                      
    Total nonperforming assets   $ 36,623     $ 36,561     $ 40,018     $ 40,093     $ 40,136          
    Nonaccrual loans and leases / Loans and leases held for investment     0.23 %     0.24 %     0.31 %     0.31 %     0.28 %        
    Nonperforming loans and leases / Loans and leases held for investment     0.23 %     0.25 %     0.31 %     0.32 %     0.31 %        
    Nonperforming assets / Total assets     0.45 %     0.47 %     0.52 %     0.52 %     0.51 %        
                                 
    Allowance for credit losses, loans and leases   $ 86,041     $ 85,745     $ 85,632     $ 85,387     $ 83,837          
    Allowance for credit losses, loans and leases / Loans and leases held for investment     1.28 %     1.28 %     1.30 %     1.30 %     1.28 %        
    Allowance for credit losses, loans and leases / Nonaccrual loans and leases     561.66 %     529.29 %     420.53 %     415.97 %     463.57 %        
    Allowance for credit losses, loans and leases / Nonperforming loans and leases     550.52 %     522.68 %     415.06 %     405.43 %     414.62 %        
    *Includes a $5.8 million loan held for sale at September 30, 2023.                            
                                 
        For the three months ended,   For the nine months ended,
        09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
    Net loan and lease charge-offs   $ 820     $ 809     $ 1,406     $ 1,074     $ 969     $ 3,035     $ 4,323  
    Net loan and lease charge-offs (annualized)/Average loans and leases     0.05 %     0.05 %     0.09 %     0.06 %     0.06 %     0.06 %     0.09 %
                                 
    Univest Financial Corporation  
    Consolidated Selected Financial Data (Unaudited)  
    September 30, 2024  
    (Dollars in thousands, except per share data)                              
        For the three months ended,   For the nine months ended,  
    For the period:   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23  
    Interest income   $ 106,438   $ 99,832   $ 98,609   $ 101,232   $ 97,106   $ 304,879   $ 270,498  
    Interest expense     53,234     48,805     47,142     48,472     43,516     149,181     103,261  
         Net interest income     53,204     51,027     51,467     52,760     53,590     155,698     167,237  
    Provision for credit losses     1,414     707     1,432     1,931     2,024     3,553     8,839  
    Net interest income after provision for credit losses     51,790     50,320     50,035     50,829     51,566     152,145     158,398  
    Noninterest income:                              
         Trust fee income     2,110     2,008     2,108     1,943     1,910     6,226     5,789  
         Service charges on deposit accounts     2,037     1,982     1,871     1,960     1,816     5,890     5,088  
         Investment advisory commission and fee income     5,319     5,238     5,194     4,561     4,843     15,751     14,303  
         Insurance commission and fee income     5,238     5,167     7,201     4,596     4,852     17,606     16,447  
         Other service fee income     1,815     3,044     6,415     2,967     3,020     11,274     9,414  
         Bank owned life insurance income     921     1,086     842     823     806     2,849     2,362  
         Net gain on sales of investment securities     18                     18      
         Net gain on mortgage banking activities     1,296     1,710     939     809     1,216     3,945     2,880  
         Other income     1,396     745     1,025     961     228     3,166     1,921  
    Total noninterest income     20,150     20,980     25,595     18,620     18,691     66,725     58,204  
    Noninterest expense:                              
    Salaries, benefits and commissions     30,702     30,187     31,338     29,321     29,978     92,227     90,867  
    Net occupancy     2,723     2,679     2,872     2,751     2,594     8,274     7,935  
    Equipment     1,107     1,088     1,111     1,066     1,087     3,306     3,066  
    Data processing     4,154     4,161     4,495     4,444     4,189     12,810     12,355  
    Professional fees     1,579     1,466     1,688     1,768     1,763     4,733     5,373  
    Marketing and advertising     490     715     416     632     555     1,621     1,548  
    Deposit insurance premiums     1,097     1,098     1,135     1,350     1,258     3,330     3,475  
    Intangible expenses     164     188     187     212     220     539     726  
    Restructuring charges                 189             1,330  
    Other expense     6,536     7,126     6,832     7,313     7,344     20,494     21,641  
    Total noninterest expense     48,552     48,708     50,074     49,046     48,988     147,334     148,316  
    Income before taxes     23,388     22,592     25,556     20,403     21,269     71,536     68,286  
    Income tax expense     4,810     4,485     5,251     4,149     4,253     14,546     13,436  
    Net income   $ 18,578   $ 18,107   $ 20,305   $ 16,254   $ 17,016   $ 56,990   $ 54,850  
    Net income per share:                              
         Basic   $ 0.64   $ 0.62   $ 0.69   $ 0.55   $ 0.58   $ 1.95   $ 1.86  
         Diluted   $ 0.63   $ 0.62   $ 0.69   $ 0.55   $ 0.58   $ 1.94   $ 1.86  
    Dividends declared per share   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.63   $ 0.63  
    Weighted average shares outstanding     29,132,948     29,246,977     29,413,999     29,500,147     29,479,066     29,264,161     29,410,852  
    Period end shares outstanding     29,081,108     29,190,640     29,337,919     29,511,721     29,508,128     29,081,108     29,508,128  
                                   
    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    September 30, 2024
                               
      For the three months ended,   For the nine months ended,
    Profitability Ratios (annualized) 09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
                               
    Return on average assets   0.92 %     0.94 %     1.06 %     0.82 %     0.88 %     0.97 %     0.98 %
    Return on average assets, excluding restructuring   0.92 %     0.94 %     1.06 %     0.83 %     0.88 %     0.97 %     1.00 %
    charges (1)                          
    Return on average shareholders’ equity   8.55 %     8.62 %     9.69 %     7.91 %     8.32 %     8.95 %     9.14 %
    Return on average shareholders’ equity, excluding   8.55 %     8.62 %     9.69 %     7.99 %     8.32 %     8.95 %     9.31 %
    restructuring charges (1)                          
    Return on average tangible common equity (1)(3)   10.84 %     11.01 %     12.38 %     10.23 %     10.77 %     11.40 %     11.87 %
    Return on average tangible common equity, excluding   10.84 %     11.01 %     12.38 %     10.32 %     10.77 %     11.40 %     12.10 %
    restructuring charges (1)(3)                          
    Net interest margin (FTE)   2.82 %     2.84 %     2.88 %     2.84 %     2.96 %     2.85 %     3.22 %
    Efficiency ratio (2)   65.7 %     67.1 %     64.6 %     68.3 %     67.3 %     65.8 %     65.3 %
    Efficiency ratio, excluding restructuring charges (1)(2)   65.7 %     67.1 %     64.6 %     68.0 %     67.3 %     65.8 %     64.7 %
                               
    Capitalization Ratios                          
                               
    Dividends declared to net income   33.0 %     33.9 %     30.5 %     38.1 %     36.4 %     32.4 %     33.8 %
    Shareholders’ equity to assets (Period End)   10.69 %     10.87 %     10.89 %     10.79 %     10.31 %     10.69 %     10.31 %
    Tangible common equity to tangible assets (1)   8.71 %     8.81 %     8.80 %     8.70 %     8.22 %     8.71 %     8.22 %
    Common equity book value per share $ 30.16     $ 29.26     $ 28.76     $ 28.44     $ 27.36     $ 30.16     $ 27.36  
    Tangible common equity book value per share (1) $ 24.05     $ 23.17     $ 22.70     $ 22.41     $ 21.32     $ 24.05     $ 21.32  
                               
    Regulatory Capital Ratios (Period End)                          
    Tier 1 leverage ratio   9.53 %     9.74 %     9.65 %     9.36 %     9.43 %     9.53 %     9.43 %
    Common equity tier 1 risk-based capital ratio   10.88 %     10.72 %     10.71 %     10.58 %     10.32 %     10.88 %     10.32 %
    Tier 1 risk-based capital ratio   10.88 %     10.72 %     10.71 %     10.58 %     10.32 %     10.88 %     10.32 %
    Total risk-based capital ratio   14.27 %     14.09 %     14.11 %     13.90 %     13.58 %     14.27 %     13.58 %
                               
    (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.
    (2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
    (3) Net income before amortization of intangibles to average tangible common equity.
                               
    Univest Financial Corporation  
    Average Balances and Interest Rates (Unaudited)  
      For the Three Months Ended,  
    Tax Equivalent Basis September 30, 2024   June 30, 2024  
      Average Income/ Average   Average Income/ Average  
    (Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
    Assets:                
    Interest-earning deposits with other banks $ 270,724   $ 3,624 5.33 % $ 84,546   $ 1,108 5.27 %
    Obligations of state and political subdivisions*   1,283     7 2.17     1,269     7 2.22  
    Other debt and equity securities   492,051     3,706 3.00     491,871     3,741 3.06  
    Federal Home Loan Bank, Federal Reserve Bank and other stock   38,769     742 7.61     37,286     700 7.55  
    Total interest-earning deposits, investments and other interest-earning assets   802,827     8,079 4.00     614,972     5,556 3.63  
                     
    Commercial, financial, and agricultural loans   997,465     18,459 7.36     983,615     17,447 7.13  
    Real estate—commercial and construction loans   3,592,556     52,672 5.83     3,549,206     50,577 5.73  
    Real estate—residential loans   1,692,361     21,127 4.97     1,660,489     20,413 4.94  
    Loans to individuals   26,651     549 8.20     26,821     542 8.13  
    Tax-exempt loans and leases   232,159     2,565 4.40     230,495     2,476 4.32  
    Lease financings   189,599     3,275 6.87     189,910     3,105 6.58  
         Gross loans and leases   6,730,791     98,647 5.83     6,640,536     94,560 5.73  
    Total interest-earning assets   7,533,618     106,726 5.64     7,255,508     100,116 5.55  
    Cash and due from banks   62,902           56,387        
    Allowance for credit losses, loans and leases   (86,517 )         (86,293 )      
    Premises and equipment, net   47,989           48,725        
    Operating lease right-of-use assets   29,620           30,344        
    Other assets   417,653           416,869        
          Total assets $ 8,005,265         $ 7,721,540        
                     
    Liabilities:                
    Interest-bearing checking deposits $ 1,215,166   $ 8,824 2.89 % $ 1,094,150   $ 7,311 2.69 %
    Money market savings   1,849,628     21,213 4.56     1,692,759     19,131 4.55  
    Regular savings   727,395     878 0.48     759,960     929 0.49  
    Time deposits   1,491,560     17,255 4.60     1,422,113     16,134 4.56  
         Total time and interest-bearing deposits   5,283,749     48,170 3.63     4,968,982     43,505 3.52  
                     
    Short-term borrowings   8,210     1 0.05     29,506     242 2.30  
    Long-term debt   247,826     2,781 4.46     250,000     2,777 4.47  
    Subordinated notes   149,068     2,282 6.09     148,943     2,281 6.16  
         Total borrowings   405,104     5,064 4.97     428,449     5,300 4.98  
         Total interest-bearing liabilities   5,688,853     53,234 3.72     5,397,431     48,805 3.64  
    Noninterest-bearing deposits   1,357,575           1,384,770        
    Operating lease liabilities   32,627           33,382        
    Accrued expenses and other liabilities   61,804           61,385        
         Total liabilities   7,140,859           6,876,968        
    Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)   7,046,428     3.01     6,782,201     2.89  
                     
    Shareholders’ Equity:                
    Common stock   157,784           157,784        
    Additional paid-in capital   300,565           299,426        
    Retained earnings and other equity   406,057           387,362        
         Total shareholders’ equity   864,406           844,572        
         Total liabilities and shareholders’ equity $ 8,005,265         $ 7,721,540        
    Net interest income   $ 53,492       $ 51,311    
                     
    Net interest spread     1.92       1.91  
    Effect of net interest-free funding sources     0.90       0.93  
    Net interest margin     2.82 %     2.84 %
    Ratio of average interest-earning assets to average interest-bearing liabilities   132.43 %         134.43 %      
                     
    * Obligations of states and political subdivisions are tax-exempt earning assets.          
    Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
    Net interest income includes net deferred costs amortization of $897 thousand and $698 thousand for the three months ended September 30, 2024 and June 30, 2024,, respectively.
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2024 and June 30, 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.  
                     
    Univest Financial Corporation  
    Average Balances and Interest Rates (Unaudited)  
      For the Three Months Ended September 30,  
    Tax Equivalent Basis 2024   2023  
      Average Income/ Average   Average Income/ Average  
    (Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
    Assets:                
    Interest-earning deposits with other banks $ 270,724   $ 3,624 5.33 % $ 143,109   $ 1,865 5.17 %
    Obligations of state and political subdivisions*   1,283     7 2.17     2,281     16 2.78  
    Other debt and equity securities   492,051     3,706 3.00     504,060     3,540 2.79  
    Federal Home Loan Bank, Federal Reserve Bank and other stock   38,769     742 7.61     40,406     712 6.99  
    Total interest-earning deposits, investments and other interest-earning assets   802,827     8,079 4.00     689,856     6,133 3.53  
                     
    Commercial, financial, and agricultural loans   997,465     18,459 7.36     995,355     17,545 6.99  
    Real estate—commercial and construction loans   3,592,556     52,672 5.83     3,552,709     49,548 5.53  
    Real estate—residential loans   1,692,361     21,127 4.97     1,543,360     18,270 4.70  
    Loans to individuals   26,651     549 8.20     26,538     525 7.85  
    Tax-exempt loans and leases   232,159     2,565 4.40     234,685     2,430 4.11  
    Lease financings   189,599     3,275 6.87     184,522     2,928 6.30  
         Gross loans and leases   6,730,791     98,647 5.83     6,537,169     91,246 5.54  
    Total interest-earning assets   7,533,618     106,726 5.64     7,227,025     97,379 5.35  
    Cash and due from banks   62,902           62,673        
    Allowance for credit losses, loans and leases   (86,517 )         (83,827 )      
    Premises and equipment, net   47,989           52,071        
    Operating lease right-of-use assets   29,620           31,647        
    Other assets   417,653           404,394        
          Total assets $ 8,005,265         $ 7,693,983        
                     
    Liabilities:                
    Interest-bearing checking deposits $ 1,215,166   $ 8,824 2.89 % $ 1,070,063   $ 6,703 2.49 %
    Money market savings   1,849,628     21,213 4.56     1,645,210     17,850 4.30  
    Regular savings   727,395     878 0.48     828,672     861 0.41  
    Time deposits   1,491,560     17,255 4.60     1,140,622     11,668 4.06  
         Total time and interest-bearing deposits   5,283,749     48,170 3.63     4,684,567     37,082 3.14  
                     
    Short-term borrowings   8,210     1 0.05     93,028     1,117 4.76  
    Long-term debt   247,826     2,781 4.46     320,000     3,036 3.76  
    Subordinated notes   149,068     2,282 6.09     148,568     2,281 6.09  
         Total borrowings   405,104     5,064 4.97     561,596     6,434 4.55  
         Total interest-bearing liabilities   5,688,853     53,234 3.72     5,246,163     43,516 3.29  
    Noninterest-bearing deposits   1,357,575           1,538,143        
    Operating lease liabilities   32,627           34,788        
    Accrued expenses and other liabilities   61,804           63,374        
         Total liabilities   7,140,859           6,882,468        
    Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)   7,046,428     3.01     6,784,306     2.54  
                     
    Shareholders’ Equity:                
    Common stock   157,784           157,784        
    Additional paid-in capital   300,565           299,575        
    Retained earnings and other equity   406,057           354,156        
         Total shareholders’ equity   864,406           811,515        
         Total liabilities and shareholders’ equity $ 8,005,265         $ 7,693,983        
    Net interest income   $ 53,492       $ 53,863    
                     
    Net interest spread     1.92       2.06  
    Effect of net interest-free funding sources     0.90       0.90  
    Net interest margin     2.82 %     2.96 %
    Ratio of average interest-earning assets to average interest-bearing liabilities   132.43 %         137.76 %      
                     
    * Obligations of states and political subdivisions are tax-exempt earning assets.          
    Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
    Net interest income includes net deferred costs amortization of $897 thousand and $563 thousand for the three months ended September 30, 2024 and 2023, respectively.
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.
                     
    Univest Financial Corporation  
    Average Balances and Interest Rates (Unaudited)  
      For the Nine Months Ended September 30,  
    Tax Equivalent Basis 2024   2023  
      Average Income/ Average   Average Income/ Average  
    (Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
    Assets:                
    Interest-earning deposits with other banks $ 159,114   $ 6,341 5.32 % $ 79,630   $ 2,856 4.80 %
    Obligations of state and political subdivisions*   1,500     26 2.32     2,284     48 2.81  
    Other debt and equity securities   494,310     11,094 3.00     511,420     10,547 2.76  
    Federal Home Loan Bank, Federal Reserve Bank and other stock   38,392     2,166 7.54     39,664     2,102 7.09  
    Total interest-earning deposits, investments and other interest-earning assets   693,316     19,627 3.78     632,998     15,553 3.29  
                     
    Commercial, financial, and agricultural loans   972,003     52,429 7.21     997,590     50,002 6.70  
    Real estate—commercial and construction loans   3,572,375     153,890 5.75     3,447,551     137,929 5.35  
    Real estate—residential loans   1,657,142     61,095 4.92     1,478,871     51,216 4.63  
    Loans to individuals   26,928     1,639 8.13     26,859     1,453 7.23  
    Tax-exempt loans and leases   231,679     7,505 4.33     233,211     7,159 4.10  
    Lease financings   189,733     9,549 6.72     175,416     8,128 6.20  
         Gross loans and leases   6,649,860     286,107 5.75     6,359,498     255,887 5.38  
    Total interest-earning assets   7,343,176     305,734 5.56     6,992,496     271,440 5.19  
    Cash and due from banks   58,070           59,811        
    Allowance for credit losses, loans and leases   (86,435 )         (81,829 )      
    Premises and equipment, net   49,098           52,067        
    Operating lease right-of-use assets   30,359           31,384        
    Other assets   414,246           399,141        
          Total assets $ 7,808,514         $ 7,453,070        
                     
    Liabilities:                
    Interest-bearing checking deposits $ 1,163,526   $ 24,353 2.80 % $ 980,725   $ 15,259 2.08 %
    Money market savings   1,749,592     59,564 4.55     1,532,318     43,020 3.75  
    Regular savings   752,336     2,712 0.48     900,448     2,375 0.35  
    Time deposits   1,384,576     47,019 4.54     845,635     22,231 3.51  
         Total time and interest-bearing deposits   5,050,030     133,648 3.54     4,259,126     82,885 2.60  
                     
    Short-term borrowings   15,919     248 2.08     195,606     7,094 4.85  
    Long-term debt   263,380     8,441 4.28     245,366     6,438 3.51  
    Subordinated notes   148,944     6,844 6.14     148,444     6,844 6.16  
         Total borrowings   428,243     15,533 4.85     589,416     20,376 4.62  
         Total interest-bearing liabilities   5,478,273     149,181 3.64     4,848,542     103,261 2.85  
    Noninterest-bearing deposits   1,383,707           1,709,533        
    Operating lease liabilities   33,389           34,548        
    Accrued expenses and other liabilities   62,586           57,906        
         Total liabilities   6,957,955           6,650,529        
    Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)   6,861,980     2.90     6,558,075     2.11  
                     
    Shareholders’ Equity:                
    Common stock   157,784           157,784        
    Additional paid-in capital   300,224           299,550        
    Retained earnings and other equity   392,551           345,207        
         Total shareholders’ equity   850,559           802,541        
         Total liabilities and shareholders’ equity $ 7,808,514         $ 7,453,070        
    Net interest income   $ 156,553       $ 168,179    
                     
    Net interest spread     1.92       2.34  
    Effect of net interest-free funding sources     0.93       0.88  
    Net interest margin     2.85 %     3.22 %
    Ratio of average interest-earning assets to average interest-bearing liabilities   134.04 %         144.22 %      
                     
    * Obligations of states and political subdivisions are tax-exempt earning assets.          
    Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
    Net interest income includes net deferred costs amortization of $2.0 million and $1.7 million for the nine months ended September 30, 2024 and 2023, respectively.  
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the nine months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.  
                     
    Univest Financial Corporation
    Loan Portfolio Overview (Unaudited)
    September 30, 2024
           
    (Dollars in thousands)      
    Industry Description Total Outstanding Balance   % of Commercial Loan Portfolio
    CRE – Retail $ 458,230   8.6 %
    Animal Production   384,554   7.2 %
    CRE – Multi-family   340,181   6.4 %
    CRE – 1-4 Family Residential Investment   295,454   5.6 %
    CRE – Office   294,508   5.6 %
    CRE – Industrial / Warehouse   254,019   4.8 %
    Hotels & Motels (Accommodation)   186,130   3.5 %
    Specialty Trade Contractors   180,486   3.4 %
    Nursing and Residential Care Facilities   167,467   3.2 %
    Education   167,282   3.2 %
    Motor Vehicle and Parts Dealers   129,799   2.4 %
    Repair and Maintenance   127,927   2.4 %
    Merchant Wholesalers, Durable Goods   125,009   2.4 %
    Homebuilding (tract developers, remodelers)   120,040   2.2 %
    CRE – Mixed-Use – Residential   110,137   2.1 %
    Crop Production   104,343   2.0 %
    Wood Product Manufacturing   93,505   1.8 %
    Food Services and Drinking Places   88,178   1.7 %
    Real Estate Lenders, Secondary Market Financing   85,171   1.6 %
    Rental and Leasing Services   79,876   1.5 %
    Religious Organizations, Advocacy Groups   73,802   1.4 %
    Fabricated Metal Product Manufacturing   72,794   1.4 %
    CRE – Mixed-Use – Commercial   72,268   1.4 %
    Administrative and Support Services   71,787   1.4 %
    Personal and Laundry Services   71,184   1.3 %
    Merchant Wholesalers, Nondurable Goods   69,363   1.3 %
    Amusement, Gambling, and Recreation Industries   69,052   1.3 %
    Miniwarehouse / Self-Storage   65,176   1.2 %
    Food Manufacturing   61,472   1.1 %
    Truck Transportation   52,570   1.0 %
    Industries with >$50 million in outstandings $ 4,471,764   84.3
    Industries with <$50 million in outstandings $ 830,652   15.7
    Total Commercial Loans $ 5,302,416   100.0
           
           
    Consumer Loans and Lease Financings Total Outstanding Balance    
    Real Estate-Residential Secured for Personal Purpose   969,562    
    Real Estate-Home Equity Secured for Personal Purpose   182,901    
    Loans to Individuals   26,794    
    Lease Financings   249,061    
    Total – Consumer Loans and Lease Financings $ 1,428,318    
           
    Total $ 6,730,734    
           
    Univest Financial Corporation
    Non-GAAP Reconciliation
    September 30, 2024
     
    Non-GAAP to GAAP Reconciliation
    Management uses non-GAAP measures in its analysis of the Corporation’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.
                                     
            As of or for the three months ended,   As of or for the nine months ended,
    (Dollars in thousands) 09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
    Restructuring charges (a)     $     $     $     $ 189     $     $     $ 1,330  
    Tax effect of restructuring charges                         (40 )                 (279 )
    Restructuring charges, net of tax     $     $     $     $ 149     $     $     $ 1,051  
                                     
    Net income $ 18,578     $ 18,107     $ 20,305     $ 16,254     $ 17,016     $ 56,990     $ 54,850  
    Amortization of intangibles, net of tax   130       149       148       167       174       426       574  
    Net income before amortization of intangibles $ 18,708     $ 18,256     $ 20,453     $ 16,421     $ 17,190     $ 57,416     $ 55,424  
                                     
    Shareholders’ equity $ 877,071     $ 854,137     $ 843,669     $ 839,208     $ 807,198     $ 877,071     $ 807,198  
    Goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
    Other intangibles (b)     (2,147 )     (2,157 )     (2,273 )     (2,405 )     (2,558 )     (2,147 )     (2,558 )
    Tangible common equity $ 699,414     $ 676,470     $ 665,886     $ 661,293     $ 629,130     $ 699,414     $ 629,130  
                                     
    Total assets $ 8,205,737     $ 7,855,446     $ 7,746,568     $ 7,780,628     $ 7,828,066     $ 8,205,737     $ 7,828,066  
    Goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
    Other intangibles (b)     (2,147 )     (2,157 )     (2,273 )     (2,405 )     (2,558 )     (2,147 )     (2,558 )
    Tangible assets $ 8,028,080     $ 7,677,779     $ 7,568,785     $ 7,602,713     $ 7,649,998     $ 8,028,080     $ 7,649,998  
                                     
    Average shareholders’ equity $ 864,406     $ 844,572     $ 842,546     $ 814,941     $ 811,515     $ 850,559     $ 802,541  
    Average goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
    Average other intangibles (b)     (2,086 )     (2,222 )     (2,318 )     (2,477 )     (2,680 )     (2,209 )     (2,913 )
    Average tangible common equity $ 686,810     $ 666,840     $ 664,718     $ 636,954     $ 633,325     $ 672,840     $ 624,118  
                                     
    (a) Associated with branch optimization and headcount rationlization expense management strategies
    (b) Amount does not include mortgage servicing rights
                                     

    The MIL Network

  • MIL-OSI Economics: DDG Ellard highlights importance of WTO collaboration with World Customs Organization

    Source: World Trade Organization

    Ladies and gentlemen, good morning.

    I would like to begin by expressing my sincere thanks to Secretary General Ian Saunders and the World Customs Organization for inviting me to speak with you today. It is an honour to address such a distinguished group of delegates whose work plays a vital role in the global trading system. Your expertise, innovation, and commitment not only drive the efficient movement of goods but also shape the frameworks that govern international trade.

    The WTO and the WCO have a long history of collaboration. First, the Technical Committee on Customs Valuation and the Technical Committee on Rules of Origin at the WCO were both created by the WTO Agreements on Customs Valuation and Rules of Origin back in 1995.  We are approaching the milestone of 30 years of collaboration on both topics. Second, the Harmonized System Nomenclature serves as the lingua franca for all WTO Members, providing standardized reference in negotiations, trade monitoring, and dispute settlement.

    The dynamic partnership between the WTO and the WCO has always been essential for the success of global trading system. At the WTO, our Members create the legal frameworks that facilitate trade and promote transparency and fairness. These frameworks could not exist without the technical expertise of the WCO and its members to ensure they are operationally effective and sustainable in the real world of trade.

    Equally, the work of the WCO delegates frequently informs policy discussions at the WTO. The standards and tools developed here—whether through the Harmonized System, the SAFE Framework of Standards [1], or other initiatives — provide a solid technical foundation for our trade agreements. They ensure that WTO rules reflect the practical and everyday dynamics of cross-border operations and customs procedures.

    In other words, our organizations share a deeply symbiotic relationship that not only aligns our efforts, but also strengthens them. Together, we create a dynamic and mutually reinforcing system that makes trade efficient, secure, predictable, adaptable, and ready for the future.

    Today’s meeting

    I was particularly pleased to see several topics in today’s program that align closely with the WTO’s ongoing work. These discussions highlight the continued importance of our collaboration as we both, together, address the evolving landscape of international trade.

    One of the most pressing topics is digital customs. As the world moves deeper into the digital age, e-commerce is expanding rapidly, driving the need for modernized customs procedures. At the WTO, we are actively engaging in discussions on digital trade policies, and the WCO’s technical insights have been invaluable. For instance, during a workshop held under the multilateral Work Programme on E-commerce, the WCO shared key updates on its tools and initiatives related to cross-border e-commerce as a contribution to discussions on the legal and regulatory frameworks for e-commerce. In addition, the stabilized text of the Joint Statement Initiative on E-commerce makes specific reference to the WCO Data Model in the context of the single window provision, emphasizing how WCO standards support the digitalization of customs processes. Your experiences in developing digital customs practices will play a crucial role in how WTO Members shape policies to support the proliferation of this sector.

    The agenda item on green customs demonstrates our collective commitment to addressing sustainability challenges through customs procedures that protect the environment and promote responsible trade. The WCO has been actively collaborating with the WTO, particularly through the Committee on Market Access thematic session on ‘Greening the Harmonized System.’ I was particularly interested to see that the WCO presented findings on aligning the HS with environmental policy needs, highlighting its efforts to refine classification criteria to better address environmental policy objectives. This collaboration reinforces how trade policy and customs practices must evolve together to achieve sustainability goals.

    Today’s meeting serves as another example of our close cooperation. At the end of the week, the Chairperson of the WTO Trade Facilitation Committee will provide an update on the key advancements from the Committee’s most recent meeting, focusing on the implementation of the Trade Facilitation Agreement (TFA). We are also looking forward to discussions on the important role of National Trade Facilitation Committees in supporting cooperation between customs and other stakeholders at the national level. We all realize that such coordination is a critical ingredient of success in trade facilitation reform, but it is also a challenging task to undertake. I look forward to hearing insights of WCO members in this regard.

    Other collaboration

    But our collaboration goes beyond today’s agenda. Let me share some examples.

    First, the WCO and the WTO have a long-standing partnership through the WTO Committee on Market Access (CMA), where the WCO Secretariat is regularly invited to speak about HS amendments or other topics of common interest, such as the most recent thematic session on supply chain resilience. During this session, the WCO showcased the critical role of customs administrations in maintaining the flow of goods during crises and introduced its newly endorsed definition of ‘Customs-Industry Resilience.’ This work demonstrated how strategic interventions can restore critical supply chains swiftly and mitigate disruptions, showing the vital role of customs expertise in shaping WTO policies on trade resilience.

    Another example of successful collaboration is with the WTO Informal Working Group on MSMEs. This Working Group developed a compendium of Authorized Economic Operator (AEO) measures with a focus on micro, small, and medium-sized enterprises (MSMEs), which was presented at the WCO SAFE Working Group Meeting in November 2023. The final version, which was issued earlier this year, incorporates feedback received from WCO members. I would like to thank the WCO and its members for their support to this initiative. The WTO MSME Group and the WCO are now working on a joint document that will build on the recently published AEO compendium and incorporate new insights from the recent WCO survey on AEOs. This collaboration represents another significant step in integrating MSMEs into AEO programmes and facilitating MSME participation in global trade.

    I take this opportunity to thank the WCO and SG Saunders once again for organizing an insightful and well-attended session on digitalization, MSMEs, Single Window, and AEOs at our Public Forum Back in September — I was delighted to participate and learned much from the panel, including the impressive work undertaken by the Thai customs service and the concrete role of the private sector through the ICC.

    As these examples highlight, the work done here at the WCO directly informs policy discussions at the WTO. By sharing best practices and developing technical standards, you ensure that global trade frameworks remain both practical and responsive to real-world challenges.

    Looking ahead, we recognize the challenges that lie before us. The digitalization of trade, the need for more resilient supply chains, and the push for sustainable trade practices will all require close cooperation between the WTO and WCO. Therefore, we are seeking to deepen the WTO-WCO cooperation through a formal Memorandum of Understanding (MOU). The MOU aims to formalize our existing ties and foster even closer cooperation and consultation on issues of mutual interest, particularly in customs operations and trade policy.

    The MOU acknowledges the complexity of modern international trade and the critical role that customs administrations play in facilitating trade flows while addressing challenges, such as IP rights enforcement, supply chain security, and compliance management. It also emphasizes the importance of transparency, consistency, and integrity in customs procedures, ensuring that trade policy is aligned with practical implementation.

    Through the MOU, we will engage in specific projects in areas like commodity classification, valuation, origin determination, trade facilitation, and e-commerce. We will also explore emerging topics like green customs and the prevention of illicit trade. These initiatives will strengthen the connection between customs and trade policy while enhancing the capabilities of our members. Separate project agreements will guide the implementation of these initiatives.

    We will continue to seek the WCO’s insights and expertise as we develop policies that address emerging trends in areas such as e-commerce, digital trade, and security. Our partnership is essential in ensuring that trade policies remain relevant, adaptable, and effective.

    In conclusion, I would like to once again thank the WCO Secretary General and all of the delegates here today for your ongoing commitment to advancing global trade. At the WTO, we appreciate that your work ensures that trade moves efficiently and securely, while also shaping the existing and evolving policies that govern our trading system.

    I am confident that today’s discussions will further build upon the collaboration between the WCO and the WTO, allowing us to better address the challenges ahead and seize the opportunities that will shape the future of global trade.

    Thank you.

    Share

    MIL OSI Economics

  • MIL-OSI China: First China-Europe Express cargo ship completes maiden voyage

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

    WILHELMSHAVEN, Germany, Jan. 24 — The first container ship of the “China-Europe Express”, the fastest direct route connecting Europe and China’s Yangtze River Delta region, arrived at its destination at the Jade Weser Port in Wilhelmshaven on Friday.

    The “KAWA Ningbo” cargo ship, carrying over 1700 containers of new-energy and other high-value goods, completed its non-stop voyage in 26 days, well below the shipment time of 45 days in the past.

    “The launch of the ‘China-Europe Express’ route not only provides convenience for the exchange of goods between China and Europe, but also plays a positive role in stabilizing the global product and supply chains, vividly interpreting the profound connotation of jointly building the ‘Belt and Road,’” remarked Cong Wu, consul general of the Chinese General Consulate in Hamburg at a ceremony marking the completion of the voyage.

    Cong further emphasized that the steady development of this new route would undoubtedly create new cooperation opportunities for both regions and inject fresh vitality into bilateral economic growth.

    Frank Doods, State Secretary in the Lower Saxony Ministry of Economics, Transport, Construction and Digitization, praised the route for bringing rich development opportunities to the city of Wilhelmshaven where the port is located and the broader Lower Saxony. He also expressed optimism about deepening economic ties between Germany and China.

    This milestone route was established through a partnership agreement signed at the China International Import Expo last year. The maiden voyage departed from east China’s Ningbo-Zhoushan Port on Dec. 30. The route is set to operate on a monthly basis, enabling regular freight exchange between China and Europe.

    MIL OSI China News

  • MIL-OSI Asia-Pac: Hong Kong resident rescued from detention in Southeast Asian country to return to Hong Kong next Monday (with photo)

    Source: Hong Kong Government special administrative region

    Hong Kong resident rescued from detention in Southeast Asian country to return to Hong Kong next Monday (with photo)
    Hong Kong resident rescued from detention in Southeast Asian country to return to Hong Kong next Monday (with photo)
    ******************************************************************************************

         The Security Bureau (SB) today (January 25) said that a Hong Kong resident who had been detained for illegal work in Myanmar was recently rescued and safely arrived in Thailand earlier. With the co-ordination by the SB’s dedicated task force in Thailand over the past few days and the concerted efforts by different parties, the individual will return to Hong Kong next Monday (January 27) together with the dedicated task force.     Members of the dedicated task force had met with the Hong Kong resident at a detention centre last night (January 24) after his transferral to Bangkok. The task force members expressed sympathy to the individual, who expressed gratitude for the visit to Thailand by the task force members to follow up on his case. He was also very pleased to learn that he will be able to return to Hong Kong next Monday. He was in good mental and physical conditions. The task force members immediately made arrangements for his return to Hong Kong, and will continue to follow up to investigate his case after his return.     The Secretary for Security, Mr Tang Ping-keung, was very relieved that one more Hong Kong resident was rescued and able to return to Hong Kong to re-unite with his family before the Chinese New Year. He thanked sincerely for the support and assistance, as well as the importance attached to the case, by the Office of the Commissioner of the Ministry of Foreign Affairs in the Hong Kong Special Administrative Region, the Chinese Embassy in the Republic of the Union of Myanmar, the Chinese Embassy in the Kingdom of Thailand, the Consulate General of the People’s Republic of China in Chiang Mai, the Consulate General of Myanmar in Hong Kong, the Royal Thai Consulate-General, Hong Kong, the Hong Kong Economic and Trade Office in Bangkok and the relevant Thai authorities, enabling the return of the Hong Kong resident to Hong Kong within a short period of time as far as practicable. He also commended the dedicated task force for the committed efforts in following up the case and assisting the Hong Kong resident’s return to Hong Kong as soon as possible.     The dedicated task force, comprising members from the SB, the Hong Kong Police Force and the Immigration Department, has been contacting and liaising with different parties since their arrival in Thailand on January 21. They met with the Chinese Embassy in the Kingdom of Thailand, the Deputy Commissioner of the Immigration Bureau of the Royal Thai Police, Mr Phanthana Nutchanart; the officer-in-charge of the Immigration Detention Centre of the Royal Thai Police; the Director of Special Investigation and the Director of Human Trafficking under the Ministry of Justice of Thailand to discuss the arrangements for the rescued Hong Kong resident to return to Hong Kong as soon as possible and follow up on the remaining cases. The dedicated task force will continue to maintain close liaison with the relevant parties and proactively follow up on the remaining 10 request-for-assistance cases in which the individuals have not yet returned to Hong Kong.

     
    Ends/Saturday, January 25, 2025Issued at HKT 8:20

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI United Nations: Ms. Hanna Serwaa Tetteh of Ghana – Special Representative for Libya and Head of the United Nations Support Mission in Libya

    Source: United Nations MIL-OSI 2

    nited Nations Secretary-General António Guterres announced today the appointment of Hanna Serwaa Tetteh of Ghana as his Special Representative for Libya and Head of the United Nations Support Mission in Libya (UNSMIL).

    She succeeds Abdoulaye Bathily of Senegal, who served as Special Envoy and Head of UNSMIL until May 2024.  The Secretary-General is grateful for his leadership, as well as to Deputy Special Representative, Stephanie Koury, who led the Mission in the interim period as Officer-in-Charge.

    Ms. Tetteh brings to this position decades of experience at the national, regional and international levels, including most recently as the Special Envoy of the Secretary-General for the Horn of Africa from 2022 until 2024.  Prior to this, she was the Special Representative of the Secretary-General to the African Union and Head of the United Nations Office to the African Union (UNOAU) from 2018 to 2020, having earlier served as Director-General of the United Nations Office at Nairobi.

    Before joining the United Nations, Ms. Tetteh was a senior member of the cabinet of the Government of Ghana as Minister for Foreign Affairs from 2013 to 2017, and member of the National Security Council and the Armed Forces Council.  She also served as Minister for Trade and Industry from 2009 to 2013.  During her tenure as Foreign Minister from 2014 to 2015, she was the Chairperson of the Council of Ministers as well as Chairperson of the Mediation and Security Council of the Economic Community of West African States (ECOWAS).  During her term as Minister for Trade and Industry, she was also a member of the Government’s economic management team, a member of the board of the Millennium Development Authority, a member of the National Development Planning Commission and the Chairperson of the Ghana Free Zones Board.

    Ms. Tetteh served as Member of Parliament in the National Democratic Congress (NDC) for the Awutu Senya Constituency from 2000 to 2005.  She later returned to Parliament as the NDC Member of Parliament for the Awutu Senya West Constituency from 2013 to 2017.  She was subsequently appointed as Co-Facilitator in the High-Level Forum for the Revitalisation of the Agreement for the resolution of the conflict in South Sudan.

    Ms. Tetteh holds a Bachelor of Laws (LLB) degree from the University of Ghana, Legon and after her post-graduate legal studies at the Ghana School of Law was called to the Bar in 1992.  She is fluent in English, Hungarian and Fante.

    MIL OSI United Nations News

  • MIL-OSI USA: ICYMI—Hagerty Joins Varney & Co. on Fox Business to Discuss Debanking Conservatives, Support for Hegseth, Panama Canal

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, today joined Varney & Co. on Fox Business to discuss the egregious debanking of conservatives, his strong support for Pete Hegseth, and President Donald Trump’s concerns about China’s influence on the Panama Canal.

    *Click the photo above or here to watch*
    Partial Transcript
    Hagerty on banks debanking conservatives: “I certainly side with President Trump on this one because I’ve seen it myself. Look, you’ve got these big banks that have DEI and ESG narratives that they’re trying to follow. You’ve got regulators; I think that’s the most pernicious aspect of this. You’ve got regulators here in Washington, bank supervisors that don’t have to put out a written warning. What they have to do is suggest that perhaps there’s some reputational risk associated with a particular entity or a particular customer, even Barron Trump has had difficulty getting a bank account. I think President Trump has felt this in his own family. Christian ministry groups are having a difficult time. It’s absolutely amazing to me and, I think, to all Americans that the banking system isn’t open and available to everybody in America. We’re going to change that. Now that the gavel has shifted here in the Senate, the Banking Committee is under Republican control. We fully intend to take supervisory action to get a very hard look at this. And on the Executive Branch side, I can guarantee you President Trump is going to dig into this too. It’s got to come to an end.”
    Hagerty on his strong support for Pete Hegseth: “Pete is also a hometown favorite for me. He’s from Tennessee. I’ve been friends with Pete for years; I’m delighted to see him into this position. I think if anybody watched the four and a half hours of Pete’s confirmation hearing, what they’ve seen is somebody that’s patriotic, someone that’s bright, someone that’s energetic. Pete’s the type of person that’s going to be transformative at the Pentagon at a time when we really need it. Pete has been clear: he’s going to be focused on lethality and competence, not on pronouns. And he is going to be the type of person that inspires, that helps us recruit and retain the type of military personnel that we need. We’re in a great deficit right now; that’s about to change when Pete Hegseth becomes our next Secretary of Defense, which he will […] [Pete has] the warfighter’s mentality. He understands what they need, and I think he’s going to be a shot in the arm for the Pentagon. It really is going to be a good, positive move.”
    Hagerty on the Panama Canal: “David, as you well know, Chinese entities have contracts and operate on both ends of the Panama Canal. I don’t think [President] Jimmy Carter ever anticipated this when he gave the Panama Canal away. This is a strategic asset that was built with American dollars and American lives, frankly. And it’s something that we need to take very seriously. I’ve negotiated with President Trump in the past when I was U.S. Ambassador to Japan. He delivered the U.S.-Japan Trade Agreement, the U.S.-Japan Digital Trade Agreement; I was deeply involved in those negotiations. And one of the things I know for sure is [that] you don’t get ahead of the president.”

    MIL OSI USA News

  • MIL-OSI USA: In Senate Floor Speech, Murray Lays Out Case Against Controversial DoD Nominee Pete Hegseth, Slams Him for Refusal to Meet Prior to Confirmation Vote

    US Senate News:

    Source: United States Senator for Washington State Patty Murray
    ICYMI: Murray, Duckworth Lead Senators in Introducing Resolution Recognizing the Service of Women in Combat
    ICYMI: Senator Murray Statement on Pete Hegseth Canceling Meeting with Her, Refusal to Meet Ahead of Probable Confirmation Vote
    Murray: “Our military uniforms do not say Democrat. They do not say Republican. They just don’t. You cannot be an effective commander if your people don’t trust you. But how are troops supposed to trust you to keep them safe in combat if you think half the nation is the enemy?”
    ***VIDEO of Senator Murray’s floor speech HERE***
    Washington, D.C. – Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, took to the Senate floor to lay out her strong opposition to Pete Hegseth’s nomination to lead the Secretary of the U.S. Department of Defense (DoD). Murray articulated the many grave concerns she has with Mr. Hegseth’s qualifications, positions, and his character—and slammed him for refusing to meet with her before his confirmation vote.
    On Saturday, Murray called out Hegseth for refusing to meet with her until after his confirmation vote, and today on the Senate floor, she reiterated that every nominee should be willing to meet with senators to answer basic questions about how they would approach their role if confirmed, calling it: “beneath the dignity of the role he aspires to for Mr. Hegseth to refuse to meet one-on-one with most Democrats.”
    “I mean, if Mr. Hegseth is afraid of me, how is he going to stand up to China? Meeting with members on both sides isn’t just some formality—if you are confirmed, it is part of the job,” Murray said.
    “Let’s be perfectly clear about the stakes here—we are talking about who we will put in command of the most powerful military in the world. There is nothing on Mr. Hegseth’s resume that remotely suggests he has the experience for the role,” Murray continued. “I have a deep appreciation for his service to our country—I do. But let’s not kid ourselves here. I don’t see how being a Fox TV host prepares you to lead three million servicemembers and civilians. I don’t see how bankrupting a veterans’ nonprofit through wasteful spending qualifies you to manage a budget of nearly $900 billion dollars. Moreover, we really truly have no sense of what his understanding of military policy is or what his strategic priorities would be.”
    Murray pointed out that, because senators had had to spend so much time at Mr. Hegseth’s confirmation hearing asking him basic questions about his questionable character and fitness—questions Republicans refused to ask—they had little time to ask him about how he would do his job.
    “How does he plan to reduce costs and development times for key military capabilities that are critical to our national security? How would he invest in our defense industrial base and public shipyards, like the one in my home state in Washington? How does he view the pacing threat in the Indo-Pacific and how would he work with our partners and allies to prepare for a potential conflict? Does he have any thoughts on that at all?,” Murray asked. “This is just not a serious candidate who has thoughtful positions on the challenges we face.”
    “You know what position he is serious about? What he has stated over and over again? ‘I’m straight up just saying we should not have women in combat roles.’ He said that last November,” Murray said on the Senate floor. “He has also made clear he has little regard for the Geneva Conventions. Now maybe this is a bit old fashioned of me, but I think we should have a Secretary of Defense who is firmly against war crimes. Not one who has spoken in favor of torture like water boarding, in favor of people convicted of war crimes, and questioned whether we should follow the Geneva Conventions.”
    “And let’s not forget—in addition to having no real qualifications, and many alarming positions, Mr. Hegseth also has many red flags that raise serious concerns about his character and conduct… There is no world where we should have a predator running the Department of Defense that is responsible for the wellbeing of millions of women and men in uniform.”
    Murray concluded by saying, there is no world where the person in charge of the U.S. military should see his fellow Americans as the enemy. In Hegseth’s book American Crusade, published in 2020, Hegseth wrote: “The other side, the left, is not our friend. We are not esteemed colleagues, nor mere political opponents. We are foes. Either we win or they win. We agree on nothing else.”“How are troops supposed to trust you to keep them safe in combat if you think half the nation is the enemy? How are Muslim servicemembers supposed to trust you if you think their religion is a threat to the country? How are women servicemembers supposed to trust you if you think they should be at home?,” Murray asked on the Senate floor.
    “I don’t have an answer to that. Maybe Mr. Hegseth doesn’t either—maybe that is why he won’t meet with me. And then again, maybe it’s because he thinks I’m his foe because I’m a Democrat, or maybe he doesn’t think I should have a say in the military issues because I’m a woman. But I do have a say—and I say someone like Mr. Hegseth is grossly unqualified to take on one of the most important jobs in the world,” Murray said.
    As the top Democrat on the Senate Appropriations Committee, Senator Murray helps author and negotiate defense spending each year. In Fiscal Year 2024, Murray prioritized investments in our servicemembers and military families, including by delivering on a 5.2% pay raise for servicemembers, expanding child care services, increasing funding for sexual assault prevention services, and boosting mental health and suicide prevention resources. Senator Murray also played a leading role in negotiating and delivering on a comprehensive national security supplemental in April of 2024 to extend aid to Ukraine, provide badly needed humanitarian relief, and support key partners in the Indo Pacific while deterring aggression by the Chinese government.
    Senator Murray’s full remarks, as delivered on the Senate floor today, are below and video is HERE:
    “Mr. President. I realize some Republicans were hoping we would cut this process short, but I have no problem coming to the floor, and having a lengthy discussion about Mr. Hegseth’s nomination to be Defense Secretary.
    “I am eager to talk about it. The only person who doesn’t seem to want to talk about the Hegseth nomination is actually Mr. Hegseth himself! Because, Mr. President, I have been trying for weeks to schedule a meeting with Mr. Hegseth prior to his confirmation vote.
    “I genuinely want a chance to ask him directly about my concerns with his character and fitness, yes, but also about the serious challenges facing our nation—whether it’s competition with China or aggression from Russia.
    “As Vice Chair of the Senate Appropriations Committee, I help write the bill that funds the Defense Department—every year. And that bill only passes with bipartisan support. I don’t think it’s asking a lot to be able to meet with the person nominated to lead that department.
    “I’ve had the opportunity to meet with ten of President Trump’s Cabinet nominees, and I look forward to meeting with more before they are confirmed by the Senate. Conducting these meetings is the absolute bare minimum given the role of each Senator and the constituents they represent.
    “But Mr. Hegseth refused to meet with me and has refused to meet with many of my Democratic colleagues.
    “I think most Americans would agree you shouldn’t get the job if you decide you can just skip the job interview. Every nominee—every nominee—should be willing to meet with Senators, regardless of their party, to answer basic questions about how they would approach their role if confirmed.
    “It’s honestly beneath the dignity of the role he aspires to for Mr. Hegseth to refuse to meet one-on-one with most Democrats.
    “What is he afraid of? Are the questions we have to ask really that hard? I mean, if Mr. Hegseth is afraid of me, how is he going to stand up to China?
    “Meeting with members on both sides isn’t just some formality—if you are confirmed, it is part of the job. So this is a serious concern, and one of many concerns I have with Mr. Hegseth’s qualifications, his positions, and his character.
    “Let’s be perfectly clear about the stakes here—we are talking about who we will put in command of the most powerful military in the world. There is nothing on Mr. Hegseth’s resume that remotely suggests he has the experience for that role.
    “I have a deep appreciation for his service to our country—I do. But let’s not kid ourselves here.
    “I don’t see how being a Fox TV host prepares you to lead three million servicemembers and civilians. I don’t see how bankrupting a veterans’ nonprofit through wasteful spending qualifies you to manage a budget of nearly $900 billion dollars.
    “Moreover, we really truly have no sense of what his understanding of military policy is, or what his strategic priorities would be. Now thanks to Senator Duckworth, we know that he is someone who can’t name a single country in ASEAN—I mean, that ignorance is alarming.
    “Senators had just seven minutes during his confirmation hearing to ask questions—many asked the questions we knew our Republican colleagues would not, regarding Hegseth’s questionable character and fitness. Important questions, absolutely!
    “But because we had to spend so much time understanding if he even could do this job at the most basic level—we had precious little time to ask him about how he would do his job!
    “How would Pete Hegseth ensure our servicemembers and their families have the resources they need at home and abroad? How does he plan to reduce costs and development times for key military capabilities that are critical to our national security? How would he invest in our defense industrial base and public shipyards, like the one in my home state of Washington?
    “How does he view the pacing threat in the Indo-Pacific, and how would he work with our partners and allies to prepare for a potential conflict? Does he have any thoughts on that at all?
    “This is just not a serious candidate who has thoughtful positions on the challenges that we face.
    “You know what position he is serious about? What he has stated over and over again?
    “And I quote: ‘I’m straight up just saying we should not have women in combat roles.’ He said that last November. Or, ‘we need moms. But not in the military, especially in combat units.’
    “Now that is infuriating, and disqualifying—I don’t have to try very hard to imagine how that kind of condescending attitude will go over with our women in uniform.
    “And after decades of comments like this denigrating the role of women in the military in ways that simply do not square with reality, Mr. Hegseth’s recent about-face on this topic is just not convincing.
    “He has also made clear he has little regard for the Geneva Conventions. Now, maybe this is a bit old fashioned of me, but I think we should have a Secretary of Defense who is firmly against war crimes. Not one who has spoken in favor of torture like waterboarding, in favor of people convicted of war crimes, and questioned whether we should follow the Geneva Conventions.
    “And let’s not forget—in addition to having no real qualifications, and many alarming positions, Mr. Hegseth also has many red flags that raise serious concerns about his character and his conduct.
    “There is the report that he and his management team pursued women on his staff.  There is the report that he took his employees to a strip club and got drunk. There is the report he got drunk in uniform, and had to be carried out of a strip club. There is the report he chanted ‘kill all Muslims’ while he was drunk.
    “And beyond reporting, there are the police records backing up the account of a woman who told a nurse she may have been drugged and then raped by Pete Hegseth.
    “Now, we couldn’t hear from that woman because Mr. Hegseth reached a financial settlement and he has now threatened to sue her for speaking out. And we almost didn’t hear about that incident at all since he didn’t even disclose it when he was vetted!
    “But there are other people we have heard from. We know his mother once wrote to her son, directly criticizing him as an abuser of women. We know his former sister-in-law, in a signed affidavit, has shared she saw Mr. Hegseth drink to excess, and understood his ex-wife feared for her safety with him.
    “And we know that same ex-wife told the FBI, ‘he drinks more than he doesn’t.’ That is an awful lot of smoke for us to be ignoring the fire.
    “There is absolutely no world where someone who has a history of running up debts at nonprofits should be responsible for overseeing half of our discretionary spending.
    “There is no world where someone with a history of failing to address his irresponsible alcohol use should be given one of the most stressful jobs imaginable, and should be making life and death decisions on a daily and an hourly basis.
    “There is no world where we should have a predator running the Department of Defense that is responsible for the wellbeing of millions of women and men in uniform. I don’t get how that is complicated.
    “Mr. President, let me just end on this: there is no world where the person in charge of our military should see his fellow Americans as the enemy.
    “But Mr. Hegseth has made clear that is his view. Regarding Democrats and Republicans, he has written, and this is him: ‘The other side, the left, is not our friend. We are not esteemed colleagues, nor mere political opponents. We are foes. Either we win or they win. We agree on nothing else.’
    “That is an especially dark view of our country. Our military uniforms do not say Democrat. They do not say Republican. They just don’t.
    “Mr. President, you cannot be an effective commander if your people don’t trust you. But how are troops supposed to trust you to keep them safe in combat if you think half the nation is the enemy?
    “How are Muslim servicemembers supposed to trust you if you think their religion is a threat to our country? How are women servicemembers supposed to trust you if you think they should be at home?
    “I don’t have an answer to that. Maybe Mr. Hegseth doesn’t either—maybe that’s why he won’t meet with me. And then again, maybe it’s because he thinks I’m his foe because I’m a Democrat. Or maybe he doesn’t think I should have a say in the military issues because I’m a woman.
    “But Mr. President, I do have a say—and I say someone like Mr. Hegseth is grossly unqualified to take on one of the most important jobs in the world.
    “And I will be voting against him. And I urge my Republican colleagues to seriously consider the message it will send to confirm someone for Secretary of Defense who has failed, time and again, to meet the most basic standards of conduct our women and men in uniform are required to live up to.”

    MIL OSI USA News

  • MIL-OSI: BitMart Celebrates the Year of the Snake with 300,000 USDT in Rewards

    Source: GlobeNewswire (MIL-OSI)

    Mahe, Seychelles , Jan. 24, 2025 (GLOBE NEWSWIRE) — Today, BitMart, the leading global cryptocurrency exchange, is thrilled to announce the Year of the Snake Campaign, featuring a 300,000 USDT prize pool in random tokens. From January 21, 2025, to February 11, 2025, users can participate in exciting activities and claim their share of rewards across trading, referrals, social media, and more.

    Event Highlights:

    Trading Competition – 100,000 USDT in Prizes
    Compete based on total trading volume and win big! The top 50 traders will receive rewards, with the 1st place winner taking home 10,000 USDT.

    New User Rewards – 50,000 USDT Giveaway
    Register and trade 300 USDT to earn 10-20 USDT in random tokens. Limited availability – first come, first served!

    Invite & Earn – 50,000 USDT Reward Pool
    Invite friends to trade and earn 3-5 USDT per referral. The top 10 inviters will receive exclusive airdrops.

    Daily Trading Rewards – 60,000 USDT Up for Grabs
    Trade at least 100 USDT daily to unlock 3-5 USDT daily rewards. Don’t miss your chance to earn every day.

    Social Media Airdrops – 30,000 USDT Bonus
    Follow, retweet, and tag friends to share 20,000 USDT, plus an additional 10,000 USDT in exclusive airdrops from projects like Mantle Network (MNT), Artela (ART), and more.

    BitMart AMA – 10,000 USDT in Prizes 
    Join BitMart’s AMA session, ask questions, and earn participation rewards.
    How to Participate:
    Get started by visiting the BitMart Year of the Snake Campaign Pagehttps://www.bitmart.com/activity/YearofSnake/en-US.
    Promotion Period:
    January 21, 2025, 04:00 AM UTC – February 11, 2025, 04:00 AM UTC
    BitMart continues to empower its global community with rewarding opportunities and innovative trading experiences. Join the celebration and make this Lunar New Year one to remember!
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    The MIL Network

  • MIL-OSI Asia-Pac: NIFTEM-K hosts delegates of the International South-South Learning programme on Food Fortification

    Source: Government of India (2)

    Posted On: 24 JAN 2025 5:51PM by PIB Delhi

    National Institute of Food Technology Entrepreneurship and Management, Kundli (NIFTEM-K), under the aegis of the Ministry of Food Processing Industries (MoFPI), hosted a high-level international delegation comprising of 17 representatives from the ECOWAS (Economic Community of West African States) region, National Fortification Alliances, including technical experts and policymakers and officials from the West African Health Organization (WAHO), underlining the regional significance of this knowledge-sharing initiative, visited NIFTEM-K to study India’s successful food fortification initiatives. The visit, organised by German Federal Ministry of Economic Cooperation and Development (BMZ) brought together representatives from Burkina Faso, Senegal, Nigeria, Côte d’Ivoire, Ghana, Benin, and Madagascar

    “This exchange represents a significant milestone in international cooperation for food fortification. As an Institute of National Importance, NIFTEM-K is proud to share India’s expertise and technological innovations in food fortification with our partners from Africa, contributing to global nutrition security” said Dr. Harinder Singh Oberoi, Director of NIFTEM-K.

    The interactions led to deliberations over the international cooperation for fortification initiative. Mr. Arvind Kumar (Deputy Secretary, Ministry of Food Processing Industries-MoFPI), in his special address, emphasized on the crucial role of the Ministry in supporting such collaborative initiatives to enhance global nutrition. He also mentioned the important flagship schemes of the Ministry including PMKSY, PLISFPPI and the PMFME etc. Interactive session by the experts discussed over fortification standards, regulations, trade practices in India and the globe. Sh Arun Om Lal, Industry Chair Professor, NIFTEM-K while moderating the session provided insights into NIFTEM-K’s infrastructure, research capabilities, fortification facilities and advanced food processing facilities at pilot plants as well as FSSAI notified food testing facility of CFRA, underscoring its role in capacity building and industry partnerships.

    Dr. Komal Chauhan, Head-CEFF and Dean (Research & Outreach), NIFTEM-K, warmly welcomed the national and international delegates, fostering meaningful discussions on strengthening fortification policies, scaling up effective interventions, and advancing food security. The visit provided a platform for knowledge exchange, international collaboration, and strategic partnerships, reinforcing NIFTEM’s commitment to driving innovation and excellence in food fortification on a global scale.

       

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    (Release ID: 2095886) Visitor Counter : 73

    MIL OSI Asia Pacific News

  • MIL-OSI Europe: Davos: Strong support for the WTO and rules-based trading

    Source: Switzerland – Department of Foreign Affairs in English

    Federal Councillor Guy Parmelin hosted an informal meeting of ministers responsible for the World Trade Organization (WTO) on 24 January in Davos. Invited guests also included WTO Director-General Ngozi Okonjo-Iweala and representatives of the private sector. The meeting emphasised the important role of the WTO and the rules-based international trading system, and discussed the current challenges facing the WTO and the priorities in the organisation’s activities.

    MIL OSI Europe News

  • MIL-OSI Asia-Pac: India’s Prominence at Davos: Union Minister Shri Ashwini Vaishnaw highlights export-led growth and inclusive development

    Source: Government of India

    Addressing global leaders and industry captains, Shri Ashwini Vaishnaw, Union Minister of Information & Broadcasting, Railways, Electronics & IT presented India’s vision of inclusive development and its remarkable growth story to global leaders and industry captains at the World Economic Forum in Davos.

    Balanced approach to economic growth

    The Union Minister for Information and Broadcasting highlighted the balanced approach to economic growth taken by India with both manufacturing and services driving nations’s development. “It cannot be manufacturing or services; it has to be manufacturing and services as both these sectors are integral to India’s economic trajectory,” the minister stated, underscoring the synergy required between the two for sustainable and inclusive growth.

    Export-Led Growth Strategy

    He emphasized India’s transformation from focusing solely on import substitution to adopting a “Make in India, Make for the World” approach. With 99% of mobile phones used domestically now manufactured in India, the growth strategy has shifted towards export-led growth across sectors such as pharmaceuticals, chemicals, and garments.

    With the prominent role of artificial intelligence (AI) in the services sector in shaping India’s future, driving innovation and creating opportunities, the Union Minister also highlighted the need for laying special emphasis on training the talent pool in AI.

    India: “Use case capital of world”

    On AI, he emphasized India’s potential to become the “use case capital” of the world, creating innovative applications for industries globally. He noted that while AI models are becoming increasingly commoditized, the focus should shift to developing use cases, applications, and solutions that cater to global industries. “Experts believe that India has the potential to lead the world in AI services, just as it has successfully done in the IT services sector,” the minister remarked, underlining India’s capability to shape the future of AI on a global scale.

    Focus on AI Skilling and Innovation

    Shri Ashwini Vaishnaw underscored the government’s focus on skilling to prepare India’s workforce for emerging technologies, particularly in artificial intelligence (AI). “We have set an ambitious target to equip at least 1 million people with AI tools and skills, enabling them to create use cases and applications that the world needs,” the minister stated.

    He highlighted similar large-scale initiatives in other sectors, such as setting up 5G labs in 100 universities to prepare students for the telecom industry and providing advanced EDA tools in 240 universities to train students in semiconductor design. By aligning course curricula with industry requirements, the government is ensuring a skilled workforce at every level of the value chain, with results already becoming visible across industries.

    Semiconductor and AI Leadership

    Shri Vaishnaw shed light on India’s ascent in the semiconductor and AI sectors, stating that “Most semiconductor industry leaders believe today that India will soon join the top three destinations for semiconductors.”

    India as a global manufacturing and talent hub

    Emphasizing why global companies are increasingly gravitating towards India, the Union Minister highlighted the nation’s “unique advantage” rooted in trust, abundant talent, and exceptional design capabilities. He credited India’s leadership under the Prime Minister of India for creating an environment of global trust, attracting companies to shift not just supply chains but also value chains to India. “With nearly 2,000 Global Capability Centers (GCCs) working on advanced designs, India is poised to be a major player in global manufacturing,” he stated.

    MIL OSI Asia Pacific News

  • MIL-OSI USA: 40 Years Ago: STS-51C, the First Dedicated Department of Defense Shuttle Mission

    Source: NASA

    On Jan. 24, 1985, space shuttle Discovery took off from NASA’s Kennedy Space Center (KSC) in Florida on STS-51C, the first space shuttle mission entirely dedicated to the Department of Defense (DOD). As such, many of the details of the flight remain classified. Discovery’s crew of Commander Thomas “T.K.” Mattingly, Pilot Loren Shriver, Mission Specialists Ellison Onizuka and James Buchli, and Payload Specialist Gary Payton deployed a classified satellite that used an Inertial Upper Stage (IUS) to reach its final geostationary orbit. The three-day mission ended with a landing at KSC. Postflight inspection of the Solid Rocket Boosters (SRBs) revealed the most significant erosion of O-ring seals seen in the shuttle program up to that time, attributed to unusually cold weather before and during launch. 

    In October 1982, NASA assigned astronauts Mattingly, Shriver, Onizuka, and Buchli as the STS-10 crew for a dedicated DOD flight aboard Challenger then scheduled for September 1983. Payton joined the crew as a payload specialist in the summer of 1983 with Keith Wright assigned as his backup. The failure of the IUS on STS-6 in April 1983 delayed the STS-10 mission, that also used the IUS, until engineers could identify and fix the cause of the problem. By September 1983, NASA had remanifested the crew and the payload on STS-41F with a July 1984 launch, that changed to STS-41E by November 1983. Additional delays in fixing the IUS delayed the mission yet again, by June 1984 redesignated as STS-51C and slated for December 1984 aboard Challenger. 
    STS-51C marked the third spaceflight for Mattingly, selected in 1966 as part of NASA’s fifth group of astronauts. He served on the prime crew for Apollo 13 until exposure to German measles forced his last-minute replacement by his backup. He then flew on Apollo 16 and STS-4. For Shriver, Onizuka, and Buchli, all three selected as astronauts in the class of 1978, STS-51C marked their first trip into space. The U.S. Air Force selected Payton and Wright in August 1979 in its first class of Manned Spaceflight Engineers, and STS-51C marked Payton’s first and only space mission. 
    In November 1984, NASA decided to delay STS-51C from December 1984 to January 1985 and swap orbiters from Challenger to Discovery. Postflight inspections following Challenger’s STS-41G mission in October 1984 revealed degradation of the bonding materials holding thermal protection system tiles onto the orbiter, requiring the replacement of 4,000 tiles. The time required to complete the work precluded a December launch. Tests conducted on Discovery prior to its November STS-51A mission revealed the bonding material to be sound.  

    On Jan. 5, 1985, Discovery rolled out from KSC’s Vehicle Assembly Building, where workers mated it with its External Tank (ET) and SRBs, to Launch Pad 39A. There, engineers conducted the Terminal Countdown Demonstration Test, essentially a dress rehearsal for the actual countdown, on Jan. 6-7, with the crew participating in the final few hours much as they would on launch day. The astronauts returned to KSC on Jan. 20 to prepare for the planned launch on Jan. 23. The day before, NASA managers decided to delay the launch by one day due to unseasonably cold weather, with concern about sub-freezing temperatures causing ice to form on the ET and possibly coming loose during ascent and damaging the vehicle. The DOD had requested that NASA keep the actual launch time secret until T minus nine minutes, with most of the countdown taking place hidden from public view.  

    Liftoff of Discovery on its third mission, STS-51C, came at 2:50 p.m. EST on Jan. 24, beginning the 15th space shuttle flight. Eight and a half minutes later, Discovery and its five-man crew had reached orbit. And, at the DOD customer’s request, all public coverage of the mission ended. Although NASA could not reveal the spacecraft’s orbital parameters, trade publications calculated that Discovery first entered an elliptical orbit, circularized over the next few revolutions, prior to Onizuka deploying the IUS and payload combination on the seventh orbit. Neither NASA nor the DOD have released any imagery of the deployment or even of the payload bay, with only a limited number of in-cabin and Earth observation photographs made public. 

    To maintain the mission’s secrecy, NASA could reveal the touchdown time only 16 hours prior to the event. On Jan. 27, Mattingly and Shriver brought Discovery to a smooth landing at KSC’s Shuttle Landing Facility after a flight of three days one hour 33 minutes, the shortest space shuttle mission except for the first two orbital test flights. The astronauts orbited the Earth 49 times. About an hour after touchdown, the astronaut crew exited Discovery and boarded the Astrovan for the ride back to crew quarters. Neither NASA management nor the astronauts held a post mission press conference. The U.S. Air Force announced only that the “IUS aboard STS-51C was deployed from the shuttle Discovery and successfully met its mission objectives.” Later in the day, ground crews towed Discovery to the Orbiter Processing Facility to begin preparing it for its next planned mission, STS-51D in March. 
    Postscript 
    Following the recovery of SRBs after each shuttle mission, engineers conducted detailed inspections before clearing them for reuse. After STS-51C, inspections of the critical O-ring seals that prevented hot gases from escaping from the SRB field joints revealed significant erosion and “blow-by” between the primary and secondary O-rings. Both left and right hand SRBs showed this erosion, the most significant of the program up to that time. Importantly, these O-rings experienced weather colder than any previous shuttle mission, with overnight ambient temperatures in the teens and twenties. Even at launch time, the O-rings had reached only 60 degrees. Engineers believed that these cold temperatures made the O-rings brittle and more susceptible to erosion. One year later, space shuttle Challenger launched after similarly cold overnight temperatures, with O-rings at 57 degrees at launch time. The Rogers Commission report laid the blame of the STS-51L accident on the failure of O-rings that allowed super-hot gases to escape from the SRB and impinge on the hydrogen tank in the ET, resulting in the explosion that destroyed the orbiter and claimed the lives of seven astronauts. The commission also faulted NASA’s safety culture for not adequately addressing the issue of O-ring erosion, a phenomenon first observed on STS-2 and to varying degrees on several subsequent missions.  

    MIL OSI USA News

  • MIL-OSI Security: Five Defendants Sentenced in Options Trading Scheme

    Source: Office of United States Attorneys

    ATLANTA – Milan Patel has been sentenced to prison in connection with a years-long market manipulation scheme in which he and his co-conspirators conceived, drafted, and disseminated false rumors about publicly traded companies and then profitably traded on these rumors by purchasing and selling mainly short-term call options.

    “The defendants used their financial acumen to manipulate the securities markets by releasing false information about publicly traded companies,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office is committed to working with our law enforcement partners to investigate and prosecute all forms of securities fraud.”

    “These sentencings should serve as a reminder to anyone attempting to tilt the balance of financial markets in their direction using insider trading, investigating this illegal behavior is a top priority of the FBI and you will be held accountable,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta.

    According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: Between approximately October 2017 and January 2020, Milan Patel, Bart Ross, Mark Melnick, Anthony Salandra, and Charles Parrino conspired to trade securities—primarily short-term call options—in large, publicly traded companies based on materially false rumors about those companies that they generated and disseminated. These materially false rumors were intended to increase the price of the securities (both the underlying stock and options).

    Call options are essentially a contract that gives the options’ holder the right, but not the obligation, to buy shares of the underlying stock at a set price per share—the option’s strike price—on or before a set future date (the option’s expiration date). Generally, the holder of a call option benefits when the price of the underlying stock increases. Short-term call options are ones that generally expire within a week.

    Ross, Salandra, and Parrino, were formerly registered brokers with the Financial Industry Regulatory Authority (FINRA) and were responsible for drafting some of the fraudulent rumors. The conspirators would often refine a proposed rumor by exchanging drafts among themselves using the Trillian instant messaging application.

    Melnick was a day trader and T3 Live Senior Trading Strategist who often provided technical evaluations on whether a particular false rumor would be successful. These rumors were carefully crafted to: (a) appear plausible enough to other market participants to move the price of the underlying security; and (b) move the price of the security in a particular direction—namely move the stock or option price up—so that Patel and the other conspirators could profitably trade on the rumors.

    Patel was responsible for disseminating the rumor via Trillian to multiple accounts, which would in turn result in the false rumor being distributed over one or more market subscription services, including Trade The News, TradeXchange, and Benzinga, as well as various Twitter accounts.

    Before Patel disseminated the rumor, the co-conspirators would acquire a position in the publicly traded company that was the subject of the rumor. The co-conspirators purchased short-term call options often mere seconds before Patel disseminated the rumor. The conspirators often purchased short-term call options because the price of such options is more sensitive than the price of the underlying stock. The conspirators profited from their scheme by selling the options (or other securities) after they increased in price. They would then sell off their positions shortly after the rumor was disseminated and the price of the option or underlying stock had increased.

    In total, the defendants executed more than 500 trades and made $2,651,320 in profits as a result of their fraudulent scheme.

    U.S. District Judge Leigh Martin May sentenced the defendants in the case as follows:

    •Milan Patel, 49, of Cumming, Georgia, was sentenced on January 23, 2025, to 18 months in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Patel was convicted on August 20, 2024, after he pleaded guilty to conspiracy to commit securities fraud.

    •Charles Parrino, 59, of West Palm Beach, Florida, was sentenced on January 17, 2025, to one year and one day in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Parrino was convicted on September 27, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.

    •Mark Melnick, 44, of Marlboro, New Jersey, was sentenced on December 18, 2024, to three years’ probation with the first six months to be served on home confinement. He was also ordered to pay a $4,000 fine. Melnick was convicted on September 21, 2021, after he pleaded guilty to conspiracy to commit securities and wire fraud.

    •Anthony Salandra, 60, of Delray Beach, Florida, was sentenced on December 5, 2024, to three years’ probation with the first six months to be served on home confinement. Salandra was convicted on April 11, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.

    •Bart Ross, 60, of Atlanta, Georgia, was sentenced on September 7, 2022, to three years’ probation. Ross was convicted on December 18, 2020, after he pleaded guilty to conspiracy to commit securities and wire fraud.

    This case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission.

    Assistant U.S. Attorney Alex R. Sistla prosecuted the case.

    The SEC is investigating potential civil violations of the U.S. securities laws relating to above-described scheme. In connection with its investigation, the SEC filed separate civil enforcement actions against Patel, Parrino, Melnick, Salandra, and Ross in the U.S. District Court for the Northern District of Georgia.

    For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

    MIL Security OSI

  • MIL-OSI Economics: Iceland donates an additional CHF 200,000 to WTO Fish Fund

    Source: WTO

    Headline: Iceland donates an additional CHF 200,000 to WTO Fish Fund

    Director-General Ngozi Okonjo-Iweala said: “I warmly welcome Iceland’s second contribution to the WTO Fish Fund, which reflects its strong commitment to sustainable fisheries and multilateral cooperation. Building on its previous donation, this latest contribution will be instrumental in supporting developing and LDC members as they work to implement the historic Agreement on Fisheries Subsidies.”
    Ambassador Einar Gunnarsson of Iceland said: “Iceland is proud to support the WTO Fisheries Funding Mechanism as part of our longstanding commitment to sustainable fisheries and ocean health. By contributing to this fund, we aim to assist developing and least-developed countries in implementing the Agreement on Fisheries Subsidies, ensuring that they have the tools and capacity to join global efforts to protect marine ecosystems. Sustainable Development Goal 14.6 reminds us that collective action is essential, and Iceland remains dedicated to playing its part in fostering sustainable and equitable use of our shared ocean resources.”
    The Agreement on Fisheries Subsidies will enter into force upon its acceptance by two-thirds of WTO members. Eighty-nine WTO members have formally accepted the Agreement. Twenty-two more formal acceptances are needed for the Agreement to come into effect. Because the new Agreement will involve adjustments and enhancements to WTO members’ legislative and administrative frameworks, their transparency and notification obligations, and their fisheries management policies and practices, Article 7 of the Agreement provides for the creation of a voluntary funding mechanism to finance targeted technical assistance and capacity building to help developing and least developed country members with implementation.
    The Fund is operated by the WTO, with the support of the Food and Agriculture Organization (FAO), the International Fund for Agricultural Development (IFAD), and the World Bank Group. These core partners bring together relevant expertise to support members seeking assistance to implement the Agreement.
    Iceland contributed CHF 500,000 to the Fish Fund in September 2023; including the most recent donation, Iceland has contributed a total of CHF 700,000 to the Fish Fund. Between 2002 and 2025, Iceland has contributed CHF 1,025,000 to various WTO technical assistance trust funds.
    More information on the fund, which became ready to accept donations on 8 November 2022, is available here.

    MIL OSI Economics

  • MIL-OSI Economics: Advanced trade policy course underway at WTO

    Source: WTO

    Headline: Advanced trade policy course underway at WTO

    The course is designed to foster participants’ autonomy in conducting WTO-related work, enabling them to effectively engage in trade policy formulation, implementation and monitoring, as well as in WTO negotiations and dispute settlement. Legal and economic aspects of WTO rules will be addressed through interactive sessions, which will provide opportunities to share experiences on contemporary trade issues.
    In his opening remarks, the WTO Permanent Representative of Barbados and Patron of the course, Ambassador Matthew Wilson, emphasized the importance of multilateralism and strategic partnerships. He said: “Multilateralism must never be taken for granted. Gaining a seat at the negotiating table is not easy. To influence global politics — whether it be trade, human rights, climate change or the digital revolution — it is crucial to work with other economies on consolidating global cooperation.”
    In addition to honing their negotiation skills, Ambassador Wilson encouraged participants to share their experiences and to actively engage with each other in a critical and constructive manner.
    Emphasizing the pivotal role of these courses as part of the WTO’s technical assistance activities, Deputy Director-General Xiangchen Zhang referred to his own participation in the programme after the WTO was created in 1995. He said: “I benefited a lot from this course, not only from the knowledge and expertise point of view but also by taking advantage of the opportunity to establish a network of contacts, many of whom became my counterparts during trade negotiations and with whom I worked on various bilateral and multilateral initiatives. I encourage you to participate actively in order to make the most of the time you have invested in this course.”
    Participants in this year’s course hail from Africa, Asia and the Pacific, Central and Eastern Europe, Latin America and the Caribbean and the Middle East.  Six come from least-developed countries.
    The list of participants is here.
    The programme can be found here.

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  • MIL-OSI Economics: Davos: DG suggests deep breaths and to “chill” over trade tensions; ministers show WTO support

    Source: WTO

    Headline: Davos: DG suggests deep breaths and to “chill” over trade tensions; ministers show WTO support

    The WEF’s annual meeting was held under the theme “Collaboration for the Intelligent Age”. In her speaking engagements and interactions with heads of state, government officials and business leaders, DG Okonjo-Iweala highlighted the importance of the WTO for the world economy and for addressing current global challenges. She also underlined the risks of further economic fragmentation and the trade opportunities arising from advancements in artificial intelligence and the green economy. In addition, she warned against escalating trade tensions, which could potentially trigger a damaging trade war.
    At an event on 21 January titled Finding Growth in Uncertain Times, she stated that trade has remained resilient despite recent crises, emphasizing that “trade will still be a source of growth.” She highlighted findings from a recent WTO study indicating the potential for double-digit trade growth if artificial intelligence tools are adopted, as they can reduce trade costs and boost productivity. DG Okonjo-Iweala also underscored the WTO’s relevance beyond the issue of tariffs, noting its role in ensuring food and product safety standards for imported goods. She cautioned against the risks of further trade fragmentation: “We’ve done simulations that show that fragmenting into two geopolitical trading blocs and adding trade policy uncertainty may lead to a real loss in global GDP in the longer term of 6.4%. This is like losing the economy of Japan and Korea combined.”
    DG Okonjo-Iweala discussed the role of trade in environmental preservation at the session Squaring the Climate-Trade Circle on 22 January.  “You can’t have the adoption of clean energy technology without trade,” she said. She also proposed that countries produce and export goods in line with their environmental comparative advantage, or the products causing the least damage in terms of carbon emissions.
    On 23 January, DG Okonjo-Iweala took part in a townhall titled Debating Tariffs alongside Valdis Dombrovskis, European Commissioner for Economy and Productivity. “It is easy to use tariffs, it is attractive as a policy tool, but I hope we have a strong analysis of what this means,” she said. When asked about potential new tariffs being discussed in the United States, the Director-General warned against a spiral of retaliation that could impact the global economy, as observed in the 1930s when raising tariffs worsened the economic crisis. “If we have tit-for-tat retaliation and we go to where we were in the 1930s, we are going to see double-digit global GDP losses. That’s catastrophic. Everyone will pay, and the poor countries will pay even more,” she stressed.
    On 24 January, the Director-General attended a ministerial gathering on WTO issues at the invitation of Guy Parmelin, Swiss Federal Councillor and head of the Department of Economic Affairs, Education and Research. Ministers considered the way ahead for the Organization and initial plans for the 14th WTO Ministerial Conference, to be held in March 2026 in Yaoundé, Cameroon.
    DG Okonjo-Iweala encouraged members to move away from “business as usual” and long-held positions. She invited them instead to advance work on the organization’s reform. “The context is changing, we must deliver, and we must modernize,” she said. According to the summary of the meeting shared by Mr Parmelin, ministers “underlined the significance of the WTO and the rules-based, transparent and predictable multilateral trading system”.  

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    MIL OSI Economics