Transport – Page 2320 – NewzIntel.com

MIL-OSI: WENDEL: Q3 2024 Trading Update

Source: GlobeNewswire (MIL-OSI)

PRESS RELEASE – OCTOBER 24, 2024

Fully diluted¹Net Asset Value of €184.5

up +13.7 %²year-to-date (+5.3% since June 30)

With the announced acquisition of Monroe Capital, Wendel dramatically expands its Asset Management platform and rebalances its business model towards more recurring cash flows and growth

Fully diluted Net Asset Value³as of September 30, 2024: €184.5 per share

Fully diluted NAV per share up +16.1%⁴ since the start of the year when restating for the €4 dividend paid in May 2024 reflecting:
- Strong increase in Bureau Veritas’ share price (+34% YTD)
- Slight decrease in value of non-listed assets
- Positive contribution of Asset Management activities (IK Partners), reflecting the increase in market multiples

Very active implementation of new strategic directions and active portfolio rotation

Principal Investment:
- €2.3 billion proceeds and value crystallization through the sale of 9% of Bureau Veritas’ share capital and the disposal of Constantia Flexibles
- €0.7 billion invested including €625 million in Globeducate, closed on October 16
Asset Management:
- €0.4 billion invested for the acquisition of 51% of IK Partners
- $1.13 billion will be invested in equity to acquire 75% of Monroe Capital, as announced on October 22, 2024 (closing expected in the first half of 2025)

Wendel Asset Management business is now a significant performance driver

Considering the announced acquisition of Monroe Capital, Wendel’s Asset Management platform will represent c.€31bn of AuM in private assets⁵
In 2025, Wendel AM business is expected to generate c.€160m⁶ of Fee Related Earnings (“FRE”) and c.€185m of total pre-tax profit in 2025
IK Partners Fee Paying AuM up +19% over the first 9 months of 2024

Consolidated 9M 2024 sales of €5,918.1 million, up +14.6% overall and +8.9% organically

Very strong organic growth at Bureau Veritas (+10.4% over 9 months)
Solid growth at CPI (+7.9%)
ACAMS (+8%) in total over 9 months, due to the earlier timing of a flagship conference than in 2023
Encouraging first 9 months for Stahl (+1.6% total growth), with Q3 (-4.7%) impacted by a mixed environment in its industry
Scalian: slight decrease of -0.2% over 9 months

Strong financial structure and committed to remain Investment Grade

Debt maturity of 3.9 years with an average cost of 2.4%
LTV ratio at -6.8% as of September 30, 2024, and 18.9%⁷ on a pro forma basis
Pro forma total liquidity of €1.4⁸ billion as of September 30, 2024, including €0.5 billion in cash and €875 million in committed credit facility (fully undrawn)

Laurent Mignon, Wendel Group CEO, commented:

“The first nine months of 2024 have been generating good value creation for shareholders, with fully diluted Net Asset Value growing by 13.7%, driven notably by Bureau Veritas’ strong stock price and operating performances.

We continue to enhance our cash flow generation and value creation profile, by executing our strategic plan with determination, rigor and financial discipline, as demonstrated by the Monroe Capital acquisition, announced two days ago, while also focusing on premium assets in our principal investment activities, highlighted by the recent acquisition of Globeducate.

Our transformation to a dual-strategy model is now well-grounded, with top partners in asset management such as IK Partners in private equity and now Monroe Capital in private credit.

Following the investment in Globeducate and the announced acquisition of Monroe Capital, the priorities of Wendel’s teams are to create value on existing assets, to successfully build the private asset management platform around IK Partners and Monroe Capital, and to maintain a solid financial structure.”

Wendel’s net asset value as of September 30, 2024: €184.5 per share on a fully diluted basis

Wendel’s Net Asset Value (NAV) as of September 30, 2024, was prepared by Wendel to the best of its knowledge and on the basis of market data available at this date and in compliance with its methodology.

Fully diluted Net Asset Value was €184.5 per share as of September 30, 2024 (see detail in the table below), as compared to €162.3 on December 31, 2023, representing an increase of +13.7% since the start of the year and +16.1% restated for the dividend paid in 2024. Compared to the last 20-day average share price as of September 30, the discount to the September 30, 2024, fully diluted NAV per share was -50.6%.

Bureau Veritas contributed very positively to the increase in Net Asset Value: on September 30, its 20-day average share price was up strongly (+34.3%) compared to December 31, 2023. Impacts from share price movements from IHS Towers (-30.0%) and Tarkett (-2.8%) were negligible given the weight of Bureau Veritas in the NAV. Total value creation per share of listed assets was therefore +€26.1 over the first nine months of 2024 on a fully diluted basis.

Unlisted assets’ contribution to the growth of the NAV was slightly negative over the first nine months of the year with a total change per share of -€1.2, reflecting a positive evolution of the market multiples and from bolt-on acquisitions, more than entirely offset by negative FX effect and selective downward revisions of outlooks for the current year (compared to December 31, 2023).

Asset management activities were consolidated and accounted in the NAV for the first time at the end of June following the acquisition of IK Partners. There is no sponsor money included in the NAV yet, as no capital has been called. IK Partners’ valuation is up by €1.5 per share over the third quarter, driven by positive market multiples evolution.

Cash operating costs and net financing results impacted NAV by -€1.2 over 9 months, as Wendel benefited from a positive carry. The impact of year-to-date share buybacks on fully diluted NAV per share is +€1.4 per share more as of September 30, 2024, than as of December 31, 2023. Other assets and liabilities impacted NAV by -€0.5.

Total Net Asset Value increase amounted to €26.2 per share over the first nine months of the year before dividend payment.

Fully diluted NAV per share of €184.5 as of September 30, 2024

(in millions of euros)			09/30/2024		12/31/2023
Listed investments	Number of shares	Share price ⁽¹⁾	3,800	3,867
Bureau Veritas	120.3m/160.8m	€29.9/€22.2	3,591	3,575
IHS	63.0m/63.0m	$3.1/$4.4	174	251
Tarkett		€8.9/€9.1	35	40
Investment in unlisted assets ⁽²⁾			3,158	4,360
Asset Management Activities ⁽³⁾			449	–
Other assets and liabilities of Wendel and holding companies ⁽⁴⁾			95	6
Net cash position & financial assets ⁽⁵⁾			3,027	1,286
Gross asset value			10,530	9,518
Wendel bond debt			-2,386	-2,401
IK Partners transaction deferred payment			-131	–
Net Asset Value			8,012	7,118
Of which net debt			509	-1,115
Number of shares			44,430,864	44,430,554
Net Asset Value per share			€180.3	€160.2
Wendel’s 20 days share price average			€91.1	€79.9
Premium (discount) on NAV			-49.5%	-50.1%
Number of shares – fully diluted			42,469,744	43,302,016
Fully diluted Net Asset Value, per share			€184.5	€162.3
Premium (discount) on fully diluted NAV			-50.6%	-50.8%

(1) Last 20 trading days average as of September 30, 2024, and December 31, 2023.

(2) Investments in unlisted companies (Stahl, Crisis Prevention Institute, ACAMS, Scalian, Wendel Growth as of September 30, 2024, also included Constantia Flexibles as of December 31, 2023). Aggregates retained for the calculation exclude the impact of IFRS16.

(3) IK Partners’ activity, no sponsor money has been called at this stage. It is therefore not included in the NAV at this stage.

(4) Of which 1,961,120 treasury shares as of September 30, 2024, and 1,128,538 treasury shares as of December 31, 2023.

(5) Cash position and financial assets of Wendel and holdings.

Assets and liabilities denominated in currencies other than the euro have been converted at exchange rates prevailing on the date of the NAV calculation.

If co-investment and management LTIP conditions are realized, subsequent dilutive effects on Wendel’s economic ownership are accounted for in NAV calculations. See page 246 of the 2023 Universal Registration Document.

Wendel’s Principal Investments’ portfolio rotation

Since the beginning of the year, Wendel has realized a total of €2.3 billion in disposals for its own account and has invested €0.7 billion, reflecting the acceleration of the diversification of its investment portfolio, in line with the strategy announced a few months ago:

Wendel announced on January 4, 2024, that it had completed the sale of Constantia Flexibles, generating total net proceeds⁹ for Wendel of €1,121 million for its shares, i.e. a valuation over 10% higher than the latest NAV on record before the announcement of the transaction (as at March 31, 2023).
Wendel announced on April 5, 2024, that it had successfully completed the sale of 40.5 million shares in Bureau Veritas, representing c.9% of the Company’s share capital, for total proceeds of approximately €1.1 billion. The transaction was carried out at a price of €27.127, or a discount of 3% from the previous day’s share price.
Wendel Growth realized its investment in Preligens, a leader in artificial intelligence (AI) for aerospace and defence, generating net proceeds to Wendel of c.€14.6M, translating into a gross IRR of 28%¹⁰. In addition, Wendel Growth announced on June 11, 2024, the acquisition of a minority stake in YesWeHack through an equity investment of €14.5 million.
Wendel reinvested €43.7m in Scalian upon the acquisition of MANNARINO Systems & Software on June 21, 2024. This Canadian company is a leading engineering services specialist for advanced technology R&D for the aviation sector, primarily in North America, with recognized expertise in safety-critical embedded software and systems.
On October 16, 2024, Wendel completed the acquisition of c.50% of Globeducate, one of the world’s leading international K-12 education groups, from Providence Equity Partners. Wendel invested €625 million of equity, at an Enterprise Value of c.€2 billion¹¹, to join Providence, and both firms will now own c.50% of the group.

Wendel’s Asset Management platform evolution

Acquisition of Monroe Capital dramatically expands Wendel’s Asset Management platform and rebalances its business model towards more recurring cash flows and growth

Wendel announced on October 22 that it had entered into a definitive partnership agreement including the acquisition of 75% of Monroe Capital LLC (“Monroe Capital” or “the Company”), and a sponsoring program of $800 million to accelerate Monroe Capital’s growth, and will invest in GP commitment for up to $200 million.

For Wendel, the acquisition of a controlling stake in Monroe Capital, a private credit market leader focused on the U.S. lower middle market that has established an outstanding track record, would represent a significant and transformational advancement of the strategy it announced in March 2023 to develop its third-party asset management platform to complement its longstanding Principal Investment business.

With IK Partners and Monroe Capital, Wendel’s third party asset management platform will reach c.€31 billion in AUM¹², c.€ 455 million revenues, c.€160 million pre-tax FRE (c.€101 million in pre-tax FRE (Wendel share) by 2025 and is expected to reach €150 million (Wendel share) in pre-tax FRE by 2027 through double-digit organic growth.

For more information, see the October 22, 2024, announcement on http://www.wendelgroup.com.

Third Party Asset Management value creation and performance

9 months 2024 performance

Over the first nine months of 2024, IK Partners had particularly strong activity, generating a total of €126.4 million in revenue. Total Assets under Management (€13.3 billion, of which €3.3 billion of Dry Powder¹³) grew by 20% since the beginning of the year, and FPAuM¹⁴ (€9.0 billion) by 19%. Over the period, €1.7 billion of new funds were raised (IK X, PFIII and IK SO) and 7 exits have been announced, for over €1.2 billion.

Sponsor money invested by Wendel

Wendel committed €400 million in IK Partners funds, of which €300 million in IK X. These commitments have not yet been called.

Principal Investment companies’ value creation and performance

Listed Assets: 36% of Gross Asset Value

Bureau Veritas – Strong Q3 2024 organic revenue growth; refocused portfolio with ongoing acquisitions acceleration, in line with the LEAP | 28 strategy; 2024 revenue outlook upgraded

(Full consolidation)

Revenue in the first nine months of 2024 totaled € 4,569.6 million, a 5.6% increase year-to-date.

Revenue in the third quarter of 2024 amounted to € 1,547.9 million, an 8.8% increase compared to Q3 2023. Organic growth achieved a strong 13.0%, which led to 10.5% on a 9-month basis. The scope effect was a positive 0.5%, reflecting bolt-on acquisitions (contributing to +1.1%) realized in the past few quarters and partly offset by the impact of small divestments completed over the last twelve months (contributing to -0.6%). Currency fluctuations had a negative impact of 4.7%, due to the strength of the euro against most currencies.

Three businesses delivered very strong organic growth: Marine & Offshore, up 13.2%, Industry, up 23.8%, and Certification, up 17.7%. Buildings & Infrastructure further recovered, up 9.3% organically in the third quarter (after 4.3% in the first half) while both Consumer Products Services and Agri Food & Commodities grew high-single digits organically, both reflecting improving market trends.

Based on the 9-month performance, leveraging a healthy and growing sales pipeline and strong underlying market growth, Bureau Veritas now expects to deliver for the full year 2024:

9 to 10% organic revenue growth (from “high single-digit” previously);
Improvement in adjusted operating margin at constant exchange rates;
Strong cash flow, with a cash conversion above 90%.

For more information: https://group.bureauveritas.com

Tarkett – Slight organic decrease year-to-date, with Q3 2024 solid organic sales growth of +2.4%, as Sports division grew at a sustained pace in the most important quarter of the year. Activity remained sluggish in flooring, particularly in EMEA and the CIS countries

(Equity method)

Revenue in the first nine months of 2024 amounted to €2,560.7 million, down by -1.2% compared to the same period of 2023, reflecting an organic decline of -0.4%. Sales prices remained stable over the financial year, i.e. -0.3% compared to the first nine months of 2023. In Q3 2024, Group net sales came to €1,002 million, up +1.8% compared to the third quarter of 2023. Organic growth reached +2.4%. Sales prices remained broadly stable over the year, with a slight decline of -0.5% compared to the third quarter of 2023.

For more information: https://www.tarkett-group.com/en/investors/

IHS Towers (not consolidated) – IHS Towers will report its Q3 2024 results in the coming weeks

Unlisted Assets: 30% of Gross Asset Value

	Sales (in millions)
	9 months 2023	9 months 2024
Stahl	€677.3	€687.9
CPI	$103.6	$112.0
ACAMS	$67.9	$76.8
Scalian	€402.2	€401.3

Stahl – Total sales up 1.6% for the first 9 months of 2024 on the back of Q3 market challenges in the leather market for automotive and luxury goods

(full consolidation) 

Stahl, the world leader in specialty coatings for flexible materials, posted total sales of €687.9 million in the first 9 months of 2024, representing a total increase of +1.6% over the period. Organically, sales were slightly down -0.4%, in a context of tougher markets in automotive and luxury goods, while FX contributed -1.3%. The acquisition of ICP Industrial Solutions Group (ISG) in March 2023 contributed positively (+3.3%) to total sales variation.

Stahl Q3 sales were down -4.7% (-3.1% organically and -1.6% due to FX) linked to the weaker market performance of the automotive and luxury goods sectors, notably in August, which was a particularly quiet month this year as many Italian tanneries were inactive for a four-week period due to reduced activity.

On September 27, Stahl completed the acquisition of WEILBURGER Coatings, a leading German-based manufacturer of water-based and energy cured coatings for the graphic arts and packaging industry. The transaction significantly strengthens Stahl’s packaging coatings division and supports its strategy to broaden its franchise for specialty coatings for flexible materials. This acquisition strengthens Stahl’s strategic position in Europe, positioning the company as the second-largest packaging coatings player in the region. WEILBURGER Coatings posted sales of €70 million in 2023 and has over 140 employees, primarily based in Germany.

Stahl also announced it maintained its Platinum EcoVadis rating for the third consecutive year, reaffirming its commitment to sustainability. In August, Stahl was awarded the Living Wage certification strengthening its commitment to fair compensation and employee well-being.

Crisis Prevention Institute reports +8.2% revenue as compared with 9M 2023

(full consolidation)

CPI recorded first nine months 2024 revenues of $112 million, up +8.2% compared to 9M 2023, or +8.1% organically (FX impact was +0.1%), resulting from the addition of new certified instructors across end markets and geographies, and strong consumption of training materials, signifying active training of broader staff throughout the Company’s primary customers in educational, healthcare and human services settings. The company’s year-to-date results include relatively flat year-over-year revenue for the third quarter, however, reflecting what management describes as a temporary, seasonal slowdown in new certified instructors and a difficult year-over-year comparison resulting from an unusually large enterprise program added in the third quarter of 2023.

2024 continues to be a pivotal year for CPI in growing its impact and reach, including further global expansion with the opening of its first office in the United Arab Emirates, and new program launches, including Reframing Behavior, a new certification program designed to help educators build a more positive, supportive learning environment and prevent disruptive classroom behavior. In addition, regulatory and legislative actions continue to provide support for workplace violence prevention programs and related training, including expanded requirements in New York, Texas and California during 2024.

ACAMS – ACAMS reports positive total growth amid accelerated transformation

(full consolidation)

ACAMS, the global leader in training and certifications for anti-money laundering and financial crime prevention professionals, reported year-to-date bookings of $78 million, roughly flat with reported bookings for the same period in 2023, and revenue of $77 million for the first nine months of 2024, representing 8% year-over-year growth. The results for the first nine months of 2024 reflect continued growth and market expansion in North America and Europe, largely offset by declines with customers in the Asia-Pacific region. As well, the year-to-date results include the impact of ACAMS’ flagship Las Vegas conference that was held in the third quarter of 2024 and fourth quarter of 2023. Excluding the impact of this timing difference would reduce year-over-year bookings and revenue growth for the nine months ending September 30, 2024, to -0.8% and +0.3%, respectively.

The Company has made considerable progress in its transformation this year. Having largely completed its separation and transition to a stand-alone, independent company in 2023, ACAMS has made many investments instrumental to the Company’s future growth, including organizational changes led by the CEO, Neil Sternthal, who joined ACAMS in early 2024 and subsequently added several executives, including a new Chief Financial Officer and a Chief Revenue Officer, investments in the Company’s technology platform, business analytics and sales organizations, and new product development, most notably with the planned introduction of its Certified Anti-Fraud Specialist (CAFS) certification.

Scalian – Slight decrease of total sales of -0.2% year-to-date, in a context of overall market slowdown

(full consolidation since July 2023.) 

Scalian, a European leader in digital transformation, project management and operational performance consulting, reported total revenues of €401.3 million over the first 9 months in a context of continued industry slowdown, in particular supply chain tensions in the aeronautic sector as well as the turndown of the European automotive sector. Sales are down by -2.5% organically and benefited from a positive scope effect of +2.3%.

Scalian announced the acquisition of Dulin Technology in January 2024, a Spanish-based consulting firm specializing in cybersecurity for the financial sector, and MANNARINO Systems & Software in June 2024, a Canadian-based company that is a leading engineering services specialist with a unique know-how in advanced technology R&D for the aviation sector.

Agenda

Friday, December 6, 2024,

2024 Investor Day.

Wednesday, February 26, 2025

Full-Year 2024 Results – Publication of NAV as of December 31, 2024, and Full-Year consolidated financial statements (post-market release)

Thursday, April 24, 2025

Q1 2025 Trading update – Publication of NAV as of March 31, 2025 (post-market release)

Thursday, May 15, 2025

Annual General Meeting

Wednesday, July 30, 2025

H1 2025 results – Publication of NAV as of June 30, 2025, and condensed Half-Year consolidated financial statements (post-market release)

Appendix 1: Nine-month 2024 sales of Group companies

Nine-month 2024 consolidated sales

(in millions of euros)	9-month 2023	9-month 2024	Δ	Organic Δ
Bureau Veritas	4,328.0	4,569.6	+5.6%	+10.4%
Stahl ⁽¹⁾	677.3	687.9	+1.6%	-0.4%
Scalian ⁽²⁾	n.a.	409.3	n.a.	n.a.
Crisis Prevention Institute	95.6	103.1	+7.9%	+8.1%
ACAMS ⁽³⁾	62.7	70.6	+12.6%	+8.6%
IK Partners⁽⁴⁾	n.a.	77.6	n.a.	n.a.
Consolidated net sales ⁽³⁾⁽⁴⁾	5,163.5	5,918.1	+14.6%	+8.9%

(1)   Acquisition of ICP Industrial Solutions Group (ISG) since March 2023 (sales’ contribution of €70.8M vs €62.7M as of 9M 2023)
(2)   Scalian has a different reporting date to Wendel. Consequently, sale’s contribution corresponds to 9 months’ sales between October 1st 2023 and June 30 2024.
(3)   The sales include a PPA restatement for an impact of -€0.5M (vs -€3.2M as of 9M 2023). Excluding this restatement, the sales amount to €71.3M vs. €66.1M as of 9M 2023. The total growth of +12.6% include a PPA effect of +4.5% and the conference revenue which generated $5,9M while this event occurred in Q4 2023 last year.
(4)   Contribution of five months of sales

Nine-month 2024 sales of equity accounted companies

(in millions of euros)	9-month 2023	9-month 2024	Δ	Organic Δ
Tarkett⁽⁵⁾	2,592.6	2,560.7	-1.2%	-0.4%

(5) Sales price adjustments in CIS countries are historically intended to compensate for currency movements and are therefore excluded from the “organic growth” indicator.

Q3 2024 sales of Group companies

Q3 2024 consolidated sales

(in millions of euros)	Q3 2023	Q3 2024	Δ	Organic Δ
Bureau Veritas	1,423.8	1,547.9	+8.8%	+13.0%
Stahl	234.3	223.3	-4.7%	-3.1%
Scalian ⁽¹⁾	n.a.	131.1	n.a.	n.a.
Crisis Prevention Institute	42.0	41.2	-1.8%	-1.0%
ACAMS ⁽²⁾	20.2	26.1	+29.1%	+28.6%
IK Partners	n.a.	44.2	n.a.	n.a.
Consolidated net sales	1,720.2	2,013.8	+17.1%	+10.6%

(1) Scalian has a different reporting date to Wendel. Consequently, sale’s contribution corresponds to 3 months’ sales between April 1st 2024 and June 30 2024.
(2) ACAMS Q3 2024 sales includes the conference which generated $5,9M, while this event occurred in Q4 2023 last year.

Q3 2024 sales of equity accounted companies

(in millions of euros)	Q3 2023	Q3 2024	Δ	Organic Δ
Tarkett⁽³⁾	984.3	1,002.0	+1.8%	+2.4%

(3) Sales price adjustments in CIS countries are historically intended to offset exchange rate movements, and are therefore excluded from the “organic growth” indicator.

¹ Fully-diluted NAV per share assumes all treasury shares are cancelled and a complementary liability is booked to account for all LTIP related securities in the money as of the valuation date.
² +13.7% compared with fully diluted NAV of €162.3 as of Dec. 31, 2023.
³ Fully diluted of share buybacks and treasury shares. Without adjusting for dilution, NAV stands at €8,012m and €180.3 per share.
⁴ Including the €4.0 per share dividend paid in 2024, and on a non-fully diluted basis NAV is up 15.0%.
⁵ As of September 2024.
⁶ c.€101m of FRE expected in 2025, Wendel share.

⁷ Proforma of Globeducate acquisition (€-625m), sponsor money commitment in IK (€-400m), IK Partners transaction deferred payment (€-131m), Monroe Capital 75% acquisition (including estimated earnout) and GP commitments in Monroe Capital ($-200m for 2025).

⁸ Proforma of Globeducate acquisition (€-625m), sponsor money commitment in IK (€-400m), IK Partners transaction deferred payment (€-131m), Monroe Capital 75% acquisition (including estimated earnout) and GP commitments in Monroe Capital ($-200m for 2025).

⁹ Net proceeds after ticking fees, financial debt, dilution to the benefit of the Company’s minority investors, transaction costs and other debt-like adjustments.
¹⁰ Gross IRR of 28%. Net IRR of 26%.
¹¹ EV including IFRS 16 impacts. Excluding IFRS 16, EV stands at c.€1.86 billion.
¹² As of September 2024

¹³ Commitments not yet invested

¹⁴ Fee Paying AuM

Attachment

Wendel_9M_2024_EN

The MIL Network –

January 25, 2025

MIL-OSI NGOs: Whatever we lose we will come back

Source: Médecins Sans Frontières –

Amid the ongoing Israeli bombardment and incursions across southern Lebanon, countless families have been uprooted, many seeking refuge in the coastal city of Saida. Médecins Sans Frontières’ (MSF’s) mobile medical teams have been visiting several locations in the southern city, offering general healthcare, medication, and mental health support to people displaced by the violence. Here are some of the testimonies of our patients there:

Hassan Zeineddine

“There’s nothing like living in your own home,” reflects Hassan Zeineddine, 67, an internally displaced Lebanese man with hypertension. He and his wife fled Kfar Melki, in the south of Lebanon, after nearby Israeli bombardments, leaving with only the clothes on their backs. “My sons are also displaced, scattered across the country. That alone is a struggle, but what we are going through is similar to what everyone else is.”

Having been uprooted three times during the recent escalations, Hassan, a retired employee who lost his pension and savings in the 2020 economic crisis, reminisces about the olive harvest and his deep connection to the land he was forced to leave behind.

“There is nothing quite like the south,” he says. “Wherever we go, whatever we lose, and whatever we are offered, we will always come back. I lived through the 1982 Israeli invasion and remember the airstrikes on southern villages then. As we returned to our homes then, we will now.”

Khadija

Khadija, a Syrian refugee and mother of five, was displaced from Nabatieh with her family. “She’s fading right before my eyes,” says Khadija, pointing to her seven-year-old daughter, who she says suffers from stunted growth. She describes the harsh conditions in the open parking lot by the Saida coastline where they’ve sought refuge.

“We never feel clean. People are competing over food here, and we don’t have enough clean water to wash. We go to the sea to relieve ourselves, but there are often men around.”

Her children are battling various health issues and it’s breaking her spirit. “Sidra, 13, has asthma, Hiba, 7, weighs barely 10 kilograms, and Malak, my 8-month-old, has a fever and diarrhoea. I breastfeed her whenever I can, but it’s not always enough, and I can’t properly clean her bottles.”

In a moment of despair Khadija admits, “Sometimes I wish we had stayed and died in an airstrike instead of living like this.”

Um Mohammad

Um Mohammad, a 40-year-old Syrian refugee displaced from Qsaibeh, in south Lebanon, has three daughters. She used to maintain her employer’s garden, landscaping and building fences around his land. The night she fled Qsaibeh, an airstrike landed dangerously close.

She recalls joining the community with buckets of water to put out the fire, and then her employer told her it was time to leave. She packed a change of clothes for each of her daughters, aged 18, 6, and 4, and grabbed only a blanket, leaving behind the groceries she had just bought that day on her kitchen floor.

Hala

Hala, 24, is a Syrian refugee and mother of three—Yamen, 2, Rawan, 3, and Razan, 6. She fled from the coastal town of Adloun in south Lebanon amidst airstrikes and the sirens of ambulances. “We left with nothing. We escaped on a motorcycle, but it broke down here in Saida. My husband went back to retrieve our belongings, but everything was stolen.”

Now, they rely on aid for food.

“All my children are sick with vomiting and diarrhoea. Rawan, who has down syndrome, used to receive physical therapy to walk and move. We had high hopes that she would begin verbal communication through speech therapy soon, and she had made so much progress. But now, all that is gone. She requires lots of medications and is often bullied by other children for not being able to express herself.”

Shams Al Mahmoud, Marimar, and Kazem

Shams Al Mahmoud, whose first name means ‘sun’ in Arabic and is a Syrian refugee, remains as bright and warm as ever, despite the hardships she and her family have endured. Along with her children—Mimar, 24, Mimas, Kazem, 20, and Marimar,14—Shams was displaced from Kfar Roumane and now lives in a parking lot in Saida, southern Lebanon.

With an endearing smile, she recounts the moments her family escaped Israeli airstrikes in the town they had called home for over a decade, fleeing for 12 hours on foot to finally find relative safety in Saida. A few days later, Kazem and one of his sisters made a dangerous trip back to their former home on a borrowed motorcycle to rescue their two kittens, Simba and Mimi.

“We thought of them as we were leaving,” says Marimar, as she fondly strokes one of the kittens. “But the airstrikes were too close. I’m so relieved we could go back for them.”

Najah Ashour

Najah Ashour, a Syrian refugee living in south Lebanon, was displaced once again along with her daughters—Maya, 11, Lujain, 6, and Sary, 9 months—after airstrikes struck the southern town of Baisariyeh. She is among the 1.2 million people displaced by the ongoing Israeli bombardments. While the war affects everyone, minority groups like Syrian refugees, migrant workers, the elderly, and people with disabilities face even greater risks of discrimination and exclusion, further limiting their access to healthcare and humanitarian aid.

MIL OSI NGO –

January 25, 2025

MIL-OSI Global: ‘Our nuclear childhood’: the sisters who witnessed H-bomb tests over their Pacific island, and are still coming to terms with the fallout

Source: The Conversation – UK – By Christopher Hill, Associate Professor (Research and Development), Faculty of Business and Creative Industries, University of South Wales

Nuclear detonations were the backdrop to Teeua and Teraabo’s childhood. By the time the sisters were eight and four, the Pacific island on which they grew up, Kiritimati, had hosted 30 atomic and thermonuclear explosions – six during Operation Grapple, a British series between 1957 and 1958, and 24 during Operation Dominic, led by the US in 1962.

The UK’s secretary of state for the colonies, Alan Lennox-Boyd, had claimed the Grapple series would put Britain “far ahead of the Americans, and probably the Russians too, in super-bomb development”. Grapple, the country’s largest tri-service operation since D-Day, also involved troops from Fiji and New Zealand. It sought to secure the awesome power of the hydrogen bomb: a thermonuclear device far more destructive than the atomic bomb.

Britain’s seat at the top table of “super-bomb development” was emphatically announced in April 1958 with Grapple Y: an “H-bomb” 200 times more powerful than the bomb dropped on Hiroshima in 1945. This remains Britain’s largest nuclear detonation – one of more than 100 conducted by the UK, US and Soviet Union in 1958 alone.

More than six decades later, the health effects on former servicemen based on Kiritimati, as well as at test locations in South and Western Australia, remain unresolved. Greater Manchester’s mayor, Andy Burnham, has called the treatment of UK nuclear test veterans “the longest-standing and, arguably, the worst” of all the British public scandals in recent history.

Unlike the Post Office, infected blood and Grenfell Tower inquiries in 2024, there has been no UK inquiry into British nuclear weapon tests in Australia and the Pacific. Yet veterans and their descendants maintain these tests caused hereditary ill-health effects and premature deaths among participants. The British government has been accused of hiding records of these health impacts for decades behind claims of national security.

Over the past year, the life stories of British nuclear test veterans have been collected by researchers, including myself, for an oral history project in partnership with the British Library. Whether from a vantage point of air, land or sea, the veterans all recall witnessing nuclear explosions with startling clarity, as if the moment was seared on to their memories. According to Doug Herne, a ship’s cook with the Royal Navy:

When the flash hit you, you could see the X-rays of your hands through your closed eyes. Then the heat hit you, and it was as if someone my size had caught fire and walked through me. To say it was frightening is an understatement. I think it shocked us into silence.

British servicemen describe their nuclear test experiences. Video: Wester van Gaal/Motherboard.

But what of the experiences of local people on Kiritimati? I have recently interviewed two sisters who are among the few surviving islanders who witnessed the nuclear tests. This is their story.

‘A mushroom cloud igniting the sky’

At the start of Operation Grapple in May 1957, around 250 islanders lived on Kiritimati – the world’s largest coral reef atoll, slap bang in the centre of the Pacific Ocean, around 1,250 miles (2,000km) due south of Hawaii. The island’s name is derived from the English word “Christmas”, the atoll having been “discovered” by the British explorer James Cook on Christmas Eve 1777.

In May 2023, I visited Kiritimati for a research project on “British nuclear imperialism”, which investigated how post-war Britain used its dwindling imperial assets and resources as a springboard for nuclear development. I sought to interview islanders who had remained on the atoll since the tests, including Teeua Tekonau, then aged 68. In 2024, I visited her younger sister, Teraabo Pollard, who lives more than 8,000 miles away in the contrasting surroundings of Burnley, north-west England.

Far from descriptions of fear and terror, both Teeua and Teraabo looked back on the tests with striking enthusiasm. Teraabo recalled witnessing them from the local maneaba (open-air meeting place) or tennis court as a “pleasurable” experience full of “excitement”.

She described having her ears plugged with cotton wool before being covered with a blanket. As if by magic, the blanket was then lifted to reveal a mushroom cloud igniting the night sky – a sight accompanied by sweetened bread handed out by American soldiers. So vivid was the light that Teraabo, then aged four, described “being excited about it being daytime again”.

An Operation Grapple thermonuclear test near Kiritimati, 1957-58. Video: Imperial War Museums.

In view of the violence of the tests, I was struck that Teeua and Teraabo volunteered these positive memories. Their enthusiasm seemed in marked contrast to growing concerns about the radioactive fallout – including those voiced by surviving test veterans and their descendants. As children, the tests seem to have offered the sisters a spectacle of fantasy and escapism – glazed with the saccharine of American treats and Disney films on British evacuation ships.

Yet they have also lived through the premature deaths of family members and, in Teraabo’s case, a malignant tumour dating from the time of the tests. And there have been similar stories from other families who lived in the shadow of these very risky, loosely controlled experiments. Teraabo told me about a friend who had peeked out from her blanket as a young girl – and who suffered from eye and health problems ever since.

‘Only a very slight health hazard’

Kiritimati forms part of the impossibly large Republic of Kiribati – a nation of 33 islands spread over 3.5 million square kilometres; the only one to have territory in all four hemispheres and, until 1995, on either side of the international date line. Before independence from Britain in 1979, Kiribati belonged to the Gilbert and Ellice Island Colony, which in effect made Kiritimati a “nuclear colony” for the purpose of British and American testing.

In 1955, Teeua and Teraabo’s parents, Taraem and Tekonau Tetoa, left their home island of Tabiteuea, a small atoll belonging to the Gilbert group of islands in the western Pacific. They boarded a British merchant vessel bound for Christmas Island nearly 2,000 miles away. Setting sail with new-born Teeua in their arms, the family looked forward to a future cutting copra on Kiritimati’s British coconut plantation.

The scale of this journey, with four young children, was immense. Just how the hundred or so Gilbertese passengers “managed to live [during the voyage] was better not asked”, according to one royal engineer who described a similar voyage a few years later. “There were piles of coconuts everywhere – perhaps they were for both food and drink.”

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Within two years of their arrival, the family faced more upheaval as mother Taraem and her children were packed aboard another ship ahead of the first three sets of British nuclear tests in the Pacific. Known as Grapple 1, 2 and 3, they were to be detonated over Malden Island, an atoll some 240 miles to the south of Kiritimati – but still too close for the comfort of local residents.

According to Teeua, the evacuation was prompted by disillusioned labourers brought to Kiritimati without their families, who went on strike after learning how much the British troops were being paid. But the islanders’ perspectives do not feature much in the colonial records, which give precedence to British disputes about logistical costs and safety calculations.

The Grapple task force resolved that the safe limit set by the International Commission on Radiological Protection should be reduced, to limit the cost of evacuations. A meeting in November 1956 noted that “only a very slight health hazard to people would arise from this reduction – and that only to primitive peoples”.

Shocking as this remark sounds, it is typical of the disregard that nuclear planners appear to have had, both for Indigenous communities and the mostly working-class soldiers. These lives did not seem to matter much in the context of Britain’s quest for nuclear supremacy. William Penney, Britain’s chief nuclear scientist, had bemoaned how critics during tests in Australia were “intent on thwarting the whole future of the British Empire for the sake of a few Aboriginals”.

Tekonau, Teeua’s father, was one of the 30 or so I-Kiribati people to stay behind on Kiritimati during the Malden tests in May and June 1957. As one of the only labourers to speak English, he had gained the trust of the district commissioner, Percy Roberts, who invited Tekonau to accompany him during inspections of villagers’ houses in Port London, then the island’s only village. On one occasion, Teeua said, the islanders did not recognise her father as he had been given a “flat top” haircut like the Fijian soldiers. “This means he had a nice relationship with the soldiers,” she told me. “Thank God for giving me such a good and clever dad.”

Since the initial tests did not produce a thermonuclear explosion, the task force embarked on further trials between November 1957 and September 1958, known as Grapple X, Y and Z. In view of expense and time, these were conducted on Kiritimati rather than Malden Island – and this time, the residents were not evacuated to other islands. Rather, families were brought aboard ships in the island’s harbour and shown films below deck.

After these tests, the islanders returned to find the large X and Y detonations had cracked the walls of their homes and smashed their doors and furniture. One islander found their pet frigate bird, like so many of the wild birds on Kiritimati, had been blinded by the flash of Grapple Y. No compensation was ever paid to the islanders, although the Ministry of Supply did reimburse the colony for deterioration of “plantation assets”, including £4 for every damaged coconut tree (equivalent to £120 today).

A month before Grapple Y, Teraabo was born. Her earliest and most vivid childhood memories are of the US-led Operation Dominic four years later, by which time evacuation procedures had been abandoned altogether.

This series of tests was sanctioned by Britain in exchange for a nuclear-powered submarine and access to the Nevada Proving Grounds in the US – regarded as pivotal to the future of British weapons technology ahead of the signing of the Test Ban Treaty in October 1963, which would prohibit atmospheric testing.

Dominic’s 24 detonations on Kiritimati – which usually took place after sunset around 6pm, between April and November 1962 – were “awesome”, according to Teraabo. Recalling the suspense as the “tannoy announced the countdown”, she described “coming out of cover [and] witnessing the bomb [as] an amazing experience … When the bomb set off, the brilliance of the light was tremendous.”

Each explosion’s slow expiration would re-illuminate the Pacific sky. One, Starfish Prime, became known as a “rainbow bomb” because of the multi-coloured aurora it produced over the Pacific, having been launched into space where it exploded.

So spectacular were these descriptions that I almost felt I had to suspend disbelief as I listened. At one point in my interview with Teraabo, she leaned in to reassure me that she had no interest in exaggerating these events: “I’m a very proud person,” she whispered, “I would never lie.”

‘In our blood’

More than six decades on from the Grapple tests, I was sitting in Teeua’s kitchen in the village of Tabwakea (meaning “turtle”), near the northern tip of Kiritimati. I had driven here in a Subaru Forester, clapped-out from the many potholes on the island’s main road, itself built by royal engineers over 60 years ago.

Teeua Tekonau in her kitchen during the author’s visit to Kiritimati in 2023.
Christopher R. Hill., CC BY

Teeua’s home, nestled down a sand track, had a wooden veranda at the front where she would teach children to read and write under shelter from the hot equatorial sun. Handcrafted mats lined the sand and coral floor, fanning out from the veranda to the kitchen at the back.

The house felt full of the sounds of the local community, from the chatter of neighbours to the laughter of children outdoors. No one could feel lonely here, despite the vastness of the ocean that surrounds Kiritimati.

As Teeua cooked rice and prepared coffee, we discussed the main reason for my visit: to understand the impacts of the nuclear tests on the islanders, their descendents, and the sensitive ecosystem in which they live. Teeua is chair of Kiritimati’s Association of Atomic Cancer Patients, and one of only three survivors of the tests still living on Kiritimati. She pulled up a seat and looked at me:

Many, many died of cancer … And many women had babies that died within three months … I remember the coconut trees … when you drank [from the coconuts], you [were] poisoned.

Both Teeua’s parents and four of her eight siblings had died of cancer or unexplained conditions, she said. Her younger brother, Takieta, died of leukaemia at the age of two in November 1963 – less than a year after Operation Dominic ended. Her sister Teraabo, who discovered a tumour in her stomach shortly after the trials, was only able to have her stomach treated once she moved to the UK in 1981, by which time the tumour had turned malignant.

Teeua’s testimony pointed to the gendered impacts of the nuclear tests. She referred to the prevalence of menstrual problems and stillbirths, evidence of which can be inferred from the testimony of another nuclear survivor, Sui Kiritome, a fellow I-Kiribati who had arrived on Kiritimati in 1957 with her teacher husband. Sui has described how their second child, Rakieti, had “blood coming out of all the cavities of her body” at birth.

A rare military hospital record from 1958 – stored in the UK’s National Archives at Kew in London – also refers to the treatment of a civilian woman for ante-partum haemorrhage and stillbirth, though it is unclear whether this was a local woman or one of the soldier’s wives on the passenger ship HMT Dunera, which visited briefly to “boost morale” after Grapple X.

Members of the Kiritimati Association of Atomic Cancer Patients.
Courtesy: Teeua Taukaro., CC BY-ND

Having re-established the Association of Atomic Cancer Patients in 2009, Teeua has continued much of the work that Ken McGinley, first chair of the British Nuclear Tests Veterans Association, did after its establishment in 1983. She has documented the names of all I-Kiribati people present during the tests, along with their spouses, children and other relatives. And she has listed the cancers and illnesses from which they have suffered.

In the absence of medical records at the island hospital, these handwritten notes are the closest thing on the atoll to epidemiological data about the tests. But according to Teeua, concerns about the health effects of the tests date back much longer, to 1965 when a labourer named Bwebwe spoke out about poisonous clouds. “Everyone thought he was crazy,” Teeua recalled.

But Bwebwe’s speculations were lent credibility by Sui Kiritome’s testimony, and by the facial scars she bore that were visible for all to see. In an interview with her daughter, Sui explained how she was only 24 when she started to lose her hair, and “burns developed on my face, scalp and parts of my shoulder”.

In a similar manner to claims made by British nuclear test veterans, Sui attributed her health problems to being rained on during Grapple Y – which may have been detonated closer to the atoll’s surface than the task force was prepared to admit.

When I asked Teeua why her campaigning association was only reformed in 2009, she explained it had been prompted by a visit from British nuclear test veterans who “told us that everyone [involved in the tests] has cancer – blood cancer”. They had been told this in the past but, she said, “we did not believe it. But after years … after our children [also] died of cancer, then we remembered what they told us.”

After some visiting researchers explained to Teeua and the community that the effects of the tests were “not good”, she concluded that “our kids died of cancer because of the tests … That’s why we start to combine together … the nuclear survivors, to talk about what they did to our kids”.

I found Teeua’s testimony deeply troubling: not only because of the suffering she and other families have been through, but in the way that veterans had returned to Kiritimati as civilians, raising concerns among locals that may have lain dormant or been forgotten. The suggestion that radiation was “in her blood” must have been deeply disturbing for Teeua and her community.

But I reminded myself that the veterans who came looking for answers in 2009 were also victims. They made the long journey seeking clues about their health problems, or a silver bullet to prove their government’s deception over the nuclear fallout.

As young men, they were unwittingly burdened with a lifetime of uncertainty – compounded by endless legal disputes with the Ministry of Defence or inconclusive health studies that jarred with their personal medical histories. And, like the islanders, some of these servicemen died young after experiencing agonising illnesses.

The scramble for the Pacific

My research on British nuclear imperialism also sheds light on how imperial and settler colonial perceptions of “nature” shaped how these nuclear tests were planned and operationalised.

British sites were selected on the basis of in-depth environmental research. When searching the site for Britain’s first atomic bomb (the Montebello Islands off the west coast of Australia), surveyors discovered 20 new species of insect, six new plants, and a species of legless lizard.

Monitoring of radioactive fallout from nuclear tests fed into the rise of ecosystem ecologies as an academic discipline. In the words of one environmental specialist on the US tests, it seemed that “destruction was the enabling condition for understanding life as interconnected”.

Since H-bombs would exceed the explosive yield deemed acceptable by Australia, Winston Churchill’s government in the mid-1950s had been forced to look for a new test site beyond Western and South Australia. British planners drew on a wealth of imperial knowledge and networks – but their proposal to use the Kermadec Islands, an archipelago 600 miles north-east of Auckland, was rejected by New Zealand on environmental grounds.

So, when Teeua and her family landed on Kiritimati in 1955, their journey was part of “the scramble for the Pacific”: a race between Britain and the US to lay claim to the sovereignty of Pacific atolls in light of their strategic significance for air and naval power.

The British government archives include some notable environmental “what ifs?” Had the US refused the UK’s selection of Kiritimati because of its own sovereignty claim, then it would have been probable, as Lennox-Boyd, Britain’s colonial secretary, admitted, that “the Antarctic region south of Australia might have to be used” for its rapidly expanding nuclear programme.

Instead, this extraordinary period in global history recently took me to a Victorian mansion in the Lancashire town of Burnley, where I interviewed Teeua’s younger sister, Teraabo, about her memories of the Kiritimati tests.

‘No longer angry’

Teraabo’s home felt like the antithesis of Teeua’s island abode 8,300 miles away: ordered instead of haphazard, private instead of communal, spacious instead of crowded. And our interview had a more detached, philosophical tone.

Teraabo Pollard with her father’s nuclear test veteran medal.
Christopher R. Hill., CC BY-ND

Like her sister, Teraabo has worked to raise awareness about the legacy of the nuclear tests, including with the Christmas Island Appeal, an offshoot of the British Nuclear Test Veterans Association that sought to publicise the extent of the waste left on Kiritimati from the nuclear test period.

The appeal succeeded in persuading Tony Blair’s UK government to tackle the remaining waste in Kiritimati – most of which was non-radiological, according to a 1998 environmental assessment. The island was “cleaned up” and remediated between 2004 and 2008, at a cost of around £5 million to the Ministry of Defence. Much of the waste was flown or shipped back to the UK, where 388 tonnes of low-grade radioactive material were deposited in a former salt mine at Port Clarence, near Middlesbrough.

Yet Teraabo’s views have evolved. She told me she is “no longer angry” about the tests, a stark contrast to her position 20 years ago, when she told British journalist Alan Rimmer how islanders had “led a simple life with disease virtually unknown. But after the tests, everything changed. I now realise the whole island was poisoned.”

Whereas the Teraabo of 2003 blamed “the British government for all this misery”, she has since become more reflective. In the context of the cold war and the nuclear arms race, she even told me she could understand the British rationale for selecting Kiritimati as a test site. This seemed a remarkable statement from a survivor who had lost so much.

Over the course of the interview, it became clear Teraabo had grown tired of being angry – and that she had felt “trapped” by the tragic figure she was meant to represent in the campaigns of veterans and disarmers. Each time Teraabo rehearsed the doom-laden script of radiation exposure, she admitted she was also suppressing the joy of her childhood memories.

A turning point for Teraabo seems to have come in 2007, when she last visited Kiritimati and met her sister Teeua. By this time, the atoll’s population was 4,000 – quite a leap from the 300 residents she grew up with. “It is no longer the island I remember,” she said.

The Kiritimati of Teraabo’s memory was neat and well-structured. The one she described encountering in 2007 was chaotic and unkempt. She had come to the realisation that the Kiritimati she had been campaigning for – the pristine, untouched atoll of her parents – had long since moved on, so she should move on with it. The sorrow caused by the test operations would not define her.

Radioactive colonialism

Not long after I left Kiritimati in June 2023, the global nuclear disarmament organisation Ican began researching the atoll ahead of a major global summit to discuss the UN Treaty on the Prohibition of Nuclear Weapons. Descendants of Kiritimati’s nuclear test survivors were asked a series of questions, with those who provided the “right” answers being selected for a sponsored trip to UN headquarters in New York.

The chosen representatives included Teeua’s daughter, Taraem. I wondered if the survivors of Kiritimati are doomed to forever rehearse the stories of their nuclear past – a burden that Teeua and Teraabo have had to carry ever since they stood in awe of atomic and thermonuclear detonations more than 60 years ago.

They have had to deal with “radioactive colonialism” all their adult lives – the outside world demanding to see the imprint of radioactivity on their health and memories. But the sisters’ fondness for British order, despite all they have been through, prevails.

Their positive memories of Britain may in part reflect the elevated role of their father, Tekonau Tetoa – a posthumous recipient of the test veteran medal – within the British colonial system. During my visit, I happened upon an old photo of Tekonau, looking immaculate as he hangs off the side of a plantation truck in a crisp white shirt. Knowing Teeua did not possess a photo of her parents, I took a scan and raced to her house down the road.

“Do you recognise this man?” I asked, holding up my phone.

She flickered with recognition. “Is that my father?”

I nodded, and she shed a tear of joy.

Tekonau Tetoa, father of Teeua and Teraabo, hangs off the door of a coconut plantation truck in Kiritimati.
Courtesy: John Bryden., CC BY-ND

Memories of Teeua and Teraabo’s father are preserved in the island landscape of their youth: pristine, regimented by the ostensible tidiness of colonial and military order.

But such order masked contamination: an unknown quantity that would only become evident years later in ill-health and environmental damage. It was not only the nuclear tests: from 1957 to 1964, the atoll was sprayed four times a week with DDT, a carcinogenic insecticide, as part of attempts to reduce insect-borne disease. In the words of one of the pilots: “I had many a wave from the rather fat Gilbo ladies sitting on their loos as I passed overhead, and gave them some spray for good measure!” British tidiness concealed a special brand of poison.

Today, the prospect of a meaningful response from the UK to the concerns raised by the islanders and servicemen alike seems slim. In October 2023, the UK and France followed North Korea and Russia in vetoing a Kiribati and Kazakhstan-proposed UN resolution on victim assistance and environmental remediation for people and places harmed by nuclear weapons use and testing.

Over in Kiritimati, meanwhile, Teeua still tends to a small plot where Prince Philip planted a commemorative tree in April 1959, shortly after the British-led nuclear tests had ended. It is rumoured he did not drink from the atoll’s water while he was there.

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Christopher Hill receives funding from the Office for Veterans’ Affairs, UK Cabinet Office. The research for this article was also supported by funding from the Arts and Humanities Research Council (AHRC), UKRI. The author wishes to thank the following for their support with this article: Fiona Bowler, Ian Brailsford, Joshua Bushen, John Bryden, Jon Hogg, Brian Jones, Rens van Munster, Wesley Perriman, Maere Tekanene, Michael Walsh, Rotee Walsh and Derek Woolf. Sincere thanks to Teeua Tekonau and Teraabo Pollard for sharing their family stories.

– ref. ‘Our nuclear childhood’: the sisters who witnessed H-bomb tests over their Pacific island, and are still coming to terms with the fallout – https://theconversation.com/our-nuclear-childhood-the-sisters-who-witnessed-h-bomb-tests-over-their-pacific-island-and-are-still-coming-to-terms-with-the-fallout-239780

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI USA: Ernst, Hinson Work to Ensure Rural Access to Safe Contraception

US Senate News:

Source: United States Senator Joni Ernst (R-IA)
WASHINGTON – U.S. Senator Joni Ernst (R-Iowa) and Congresswoman Ashley Hinson (R-Iowa) are requesting information on the availability of birth control options to ensure Iowa families, especially in rural areas, have access to safe and effective contraception.
After data from 2017 revealed just 24 percent of all Community Health Centers (CHCs) in the country provide a comprehensive list of contraception options for patients to review on-site, the lawmakers specifically inquired about options available through Federally Qualified Health Centers (FQHCs), which serve rural areas.
“Families deserve access to safe and effective birth control when they visit their health care provider, regardless of where they live. To ensure rural areas are not overlooked, I’m working to identify the barriers that leave communities with fewer contraception options. We can build upon this fact-finding mission to address the real gaps in services that Iowa families are facing,”said Senator Joni Ernst.
“Ensuring women, regardless of zip code, have access to safe birth control options is vital for women’s health and family planning. Unfortunately, women in rural and underserved areas often have fewer contraception options. I’m working with Senator Ernst to expand access to safe birth control options for adult women who rely on Community Health Centers for care,”said Congresswoman Ashley Hinson.
“Increased access to family planning services has proven to reduce the rate of unintended pregnancies, reduce the spread of sexually transmitted diseases, and reduce rates of infertility and maternal mortality. The limited information that is available also indicates that women in rural communities are facing a significant lack of access. With millions of women in the United States living in areas with limited contraceptive access, it’s imperative we understand the deficiencies and why they exist,” the lawmakers wrote.
In the letter to the U.S. Government Accountability Office, the lawmakers requested:
An itemized inventory of available contraception,
Annual family planning counseling appointment requests and rates of return,
Expenditures of federal funds to reimburse facilities for contraception methods,
Financial resources and contraceptive options offered, and
Any additional barriers, including geographic, to those who wish to provide a wider range of contraceptive methods to patients.
Background:
Since 2017, Ernst has been working to provide access to safe and effective over-the-counter birth control. This year, her Allowing Greater Access to Safe and Effective Contraception Act has gained support.

MIL OSI USA News –

January 25, 2025

MIL-OSI Canada: Canadian Coast Guard strengthens ties with key international maritime partners

Source: Government of Canada News (2)

The Canadian Coast Guard works closely with partners every day to protect mariners, safeguard the environment, and keep waterways open.

October 24, 2024

Ottawa, Ontario – The Canadian Coast Guard works closely with partners every day to protect mariners, safeguard the environment, and keep waterways open. These partnerships at the community, provincial, territorial, national, and international levels are key to providing service to Canadians. The Canadian Coast Guard is always looking to strengthen those partnerships and, as such, has recently signed two new agreements with international partners.

On October 18, 2024, the Canadian Coast Guard signed a Memorandum of Understanding with the World Maritime University in Malmö, Sweden. It aims to strengthen collaboration in maritime and oceans education, training, and research. The five-year agreement will pave the way for innovative joint initiatives in maritime studies. This partnership reflects a shared commitment to sustainability, and fostering innovative solutions for the global maritime industry.

The Canadian Coast Guard College and World Maritime University share close ties, as two world-leading maritime education facilities. They work together through exchange programs, information sharing, and joint testing projects, including the testing of alternative, bio-friendly types of fuel for future vessels for both Canada and Sweden.

On October 24, 2024, the Canadian Coast Guard signed a second Memorandum of Understanding with the International Group of Protection and Indemnity Clubs in Ottawa, Ontario. The International Group of Protection and Indemnity Clubs is responsible for insuring over 90% of global cargo at sea. The agreement will lead to more timely engagement with shipowner representatives during incidents, and as a result will ensure more effective and efficient response to future marine pollution incidents.

This includes containment and clean-up of oil discharges and hazardous substances in Canadian waters. The Canadian Coast Guard’s Compliance and Enforcement Program notifies vessel owners of any pollution threats or hazards, and ensures they take responsibility. Where necessary, the Canadian Coast Guard steps in to manage the situation, using a wide range of tools and equipment to mitigate the hazard, clean up the spill, and mitigate any potential environmental impacts.

MIL OSI Canada News –

January 25, 2025

MIL-OSI USA: Wexton Announces $40 Million in Federal Infrastructure Law Funding for New Dulles Airport Terminal Project

Source: United States House of Representatives – Congresswoman Jennifer Wexton (D-VA)

Washington, DC – Today, Congresswoman Jennifer Wexton (D-VA) announced a new $40 million grant from the Bipartisan Infrastructure Law’s Airport Terminals Program (ATP) to aid in the construction of Washington Dulles International Airport’s new 14-gate regional and commuter terminal. This is the fourth consecutive fiscal year that the new terminal project has received funding through the Bipartisan Infrastructure Law, after receiving $49.6 million in 2022, $20 million in 2023, and $35 million in 2024.

“I’m proud that our Bipartisan Infrastructure Law is once again delivering critical funding that will help grow and enhance travel and economic activity here in Virginia’s 10th District at Dulles Airport,” said Congresswoman Wexton. “Today’s announcement brings the total to more than $144 million in federal funds to make this new terminal project a reality. A top priority for the airport, it will save passengers’ time, reduce crowding, and make the passenger experience smoother and more convenient. The investments we’ve made through this historic infrastructure law continue to have an impact in our community and local economy that will have benefits for generations to come.”

The new terminal will be conveniently located atop the underground Concourse C/D Aerotrain station, providing quick and easy access to passengers and reducing transit times for passengers with connections at Dulles who must currently use shuttle buses or long walkways. The new terminal will allow for jet bridge boarding that reduces boarding times and is more accessible for passengers with disabilities, rather than forcing passengers to board using outdoor covered walkways and aircraft stairs. It will be nearly four times larger than the current facility, which will reduce crowding, allow for expanded concessions and passenger amenities, and create additional space for operational areas, offices, aircraft servicing, and baggage handling.

The new regional and commuter terminal project will also improve Dulles’s environmental footprint, as the proposed new facility will be built to LEED Silver Certifiable standards. Environmental improvements include support for electric aircraft servicing vehicles and the use of modern energy efficient construction methods and materials.

The Airport Terminals Program, established by the Bipartisan Infrastructure Law which Wexton voted to pass in 2021, provides $1 billion in grants annually for five years to address aging infrastructure at our nation’s airports.

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MIL OSI USA News –

January 25, 2025

MIL-OSI Video: Addressing the Humanitarian Crisis in Gaza

Source: United States of America – Department of State (video statements)

Today, we’re announcing an additional $135 million dollars in humanitarian assistance — water, sanitation, maternal health — for Palestinians in Gaza as well as in the region. – Secretary Blinken from Doha, Qatar on October 24, 2024.

———-
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The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service and U.S. Agency for International Development.

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MIL OSI Video –

January 25, 2025

MIL-OSI United Kingdom: Local Government Association Conference

Source: United Kingdom – Executive Government & Departments

A speech from the Deputy Prime Minister

Location:: Harrogate
Delivered on:: 24 October 2024 (Transcript of the speech, exactly as it was delivered)

Firstly, I want to say a massive thank you to you, some of our most dedicated, brilliant public servants in this room.

For everything that you do, every day, to keep our country going.

You’ve shown remarkable resilience through some tough – and very tough – years.

During the pandemic, you kept vital services running in our communities.

Through this period of economic instability, you’ve made tough choices to protect the most vulnerable.

And following a summer of violent far-right disorder, you stood up for the values of decency and community that define our country.

And time and again, you step forward to support your local communities.

Now, I understand that this conference was originally planned for just before the General Election.

I have to admit that I’m much happier to be stood here as your Deputy Prime Minister!

Last year in Bournemouth, I said that if we were elected, we would deliver a plan for change.

A new way of governing. A government of public service.

And just over 100 days into government and we are getting on with the job.

We’re fixing the foundations to build a country that works for working people.

And local government is at the heart of this vision.

Because as you all know, I am a creature of local government.

I loved my job as a home help for Stockport council.

And I learned the importance of a good local service, and what it meant to really know and trust your community.

Back then, local government wasn’t on its knees.

Don’t get me wrong, things weren’t easy.

But we had the time and resource to provide a good service.

I know that good, functioning local government looks like great working with a good central government working in genuine partnership to deliver better outcomes.

So I know we can’t deliver true change for Britain without the support of every one of you in this room.

We can’t deliver for our missions without you.

Take our plans to deliver 1.5 million homes, including a new generation of secure, social and affordable homes.

The delivery of safer streets, an NHS and social care system that’s back on its feet.

The sustained economic growth we need to raise living standards.

And the strong communities on which good lives are built.

That’s why, in my very first week in the job – as Secretary of State for Housing, Communities and Local Government – I put local government back where it belongs.

At the heart of my department’s name and mission. 

And I’m lucky I have Jim by my side, the Minister of State for Local Government – who has run a council and knows local government from the inside out – and he’s here with me today and as part of the team.

Louise, your new Chair, also represents the best of local government – a fierce commitment to public service and leadership steeped in years of experience – not too many years, but a few.

And the fact that her predecessor, Shaun, has now joined us in the House of Commons just goes to show we are a government that believes in the power of local government.

We know what’s possible when you give people with skin in the game the power to change lives.

And, after an incredibly difficult few years, it’s time to unleash that power.

Which means resetting our relationship with local government and rebuilding its foundations.

It means ditching the slogans and gimmicks and going back to basics: delivering services that people can rely on.

You don’t need me to tell you how much harder that job has been after fourteen years of neglect.

[Redacted political content]

Councils stuck in a doom loop with money pouring out of a system with too many cracks.

And it isn’t just the scandal of wasted money. It’s the heartache of the wasted lives and potential.

[Redacted political content]

For all the promises about localism and levelling up, there was an assumption that if something needed doing, it should be done from Whitehall.

With central government hoarding power, micromanaging you, intervening in an uncoordinated and unhelpful way.

A begging-bowl system of wasteful competitive pots that led to councils bidding to pay for chess tables in public parks.

No more.

We’re going to turn the page on this failed approach – bringing local government into the heart of government.

As part of a partnership based on honesty and respect.

And it’s in that spirit that we need to face up to the financial crisis facing local government.

We all know that there’s no quick fix.

The dire public finances – the £22 billion black hole – we’ve inherited mean that it’s going to take hard graft on all sides to get us back on the road to recovery.

We knew things were bad, but on entering office, we uncovered a shocking crisis in local government which was far beyond what we had anticipated.

Councils of all political stripes have been left shelling out millions to plaster over the government’s mismanagement.

[Redacted political content]

To make matters worse, we discovered that over the last decade, the last [Redacted political content] government ripped away any financial oversight of council spending, scrapping the Audit Commission and pushing councils to borrow more and more.

This reckless approach has left the government with no transparent system in place to warn the public when a council is struggling.

And more and more authorities are struggling to stay afloat with communities in the most deprived parts of our country disproportionately affected, through cuts to services that they desperately depend on, as people’s [inaudible] go up.

And get it.

And I know we need change urgently.

You’ve all heard me say it – I’m going provide multi-year funding settlements, that will give you the stability and certainty to plan and invest for the long-term.

And that we will end the Dragon’s Den-style bidding wars between councils for competitive funding pots.

Instead, we’ll show you some respect with long-term funding, giving you flexibility to spend it where it is needed. 

And through the next Local Government Finance Settlement and beyond, we will provide more detail on how this is going to work.

Let me be clear that we can’t fix the system overnight.

[Redacted political content]

And I have to say, looking at the numbers we inherited, I am shocked by the scale of neglect.

It is going to be a long, hard slog to get local government back on its feet.

And in the short term, we’re doing all that we can to protect severely struggling councils, which is why I can announce that we are scrapping the punitive ‘pay day loan’ premium on borrowing for councils in need of Exceptional Financial Support.

This government will take a collaborative and a constructive approach to councils in financial difficulty.

You know I can’t go into detail about the Spending Review.

So let me talk to you today about things that I can tell you.

Fundamentally, I want to work together, across central and local government to reform high-cost public services and focus on preventing people from needing them in the first place.

Tackling profiteering in broken markets serving vulnerable groups, like we’ve seen in some of the private children’s homes.

When it comes to prevention, there can be few bigger priorities for us than preventing homelessness – one of the biggest pressures that you face.

By getting Britain building again. Speeding up the planning system and reintroducing mandatory housing targets.

I know that this will mean asking more from local councils.

Which is why we’re boosting the number of planners.

As part of our plans, to strengthen local planning departments and reinforce planning obligations to deliver more affordable homes on new developments – we will support you to hold developers to account.

And it’s why we’re also reviewing Right to Buy, to stem the loss of precious council homes.

But we’ll also tackle homelessness directly, by learning lessons from the past and working with local leaders to take action on all forms of homelessness.

We will develop a cross-government strategy to get us back on track to end homelessness.

We will also reform the broken local audit system in England that we inherited.

This should be the bedrock of local accountability and transparency, of trust and confidence in local democracy.

Instead, last year, just one percent of local bodies were able to publish audited accounts by the deadline.

This cannot go on.

We have already taken decisive action to introduce backstop dates to clear the backlog in unaudited accounts.

Local audit will and must provide value for money for the taxpayers and be fit for the future.

And similarly, when the way councils are run has gone wrong, central government hasn’t always responded constructively.

Instead kicking councils when they’re down for political reasons.

This Labour government are going to do things differently.

We will work with every council that needs it to put in place clear, deliverable plans to address problems and protect local taxpayers, rather than treating them as political footballs.

That’s the approach we’re taking in Birmingham.

Significant challenges continue to face the city council, but we’re going to work with the councillors and the community to solve them in partnership.

Birmingham has huge potential – and we’re going to work closely with the partners across the West Midlands to unlock that potential, including with the Mayor Parker of the West Midlands Combined Authority.

And that’s the change that we represent.

Not punishment, but collaboration.

Getting places into a stable financial footing by, yes, making difficult decisions, but with the interests of residents at the heart.

Our aim is to support councils to perform at their very best.

Councillor conduct / standards framework

Standards in local government matter – both the delivery of services and personal conduct.

Every decision you make has an impact on the daily lives of those you serve.

And most councillors meet the highest standards of public office and I am so proud to be representing you in government.

But sadly we all know there are rare occasions where bad behaviour occurs.

I’ve been made aware of cases of persistent bullying and harassment by councillors, even, in some cases, leading to victims’ resignations.

We don’t have a system that protects victims or empowers councils to deal with unacceptable behaviour.

And this cannot go on and we will give councils the powers to address poor conduct.

We will consult on reforms to the local government standards framework, including a proposal to allow for the suspension of members who violate codes of conduct.

But we also recognise that too often, councillors become victims themselves.

Too often I speak to dedicated councillors who are facing death threats and intimidation.

And I take this very seriously and recognise the impact this has on the lives of dedicated public servants and their families.

That’s why we are taking decisive action to prevent councillors from being subjected to intimidation and harassment by removing the requirement for members’ home addresses to be published.

[And I want you to know] this is a government that respects and appreciates the huge contribution made by councillors who work tirelessly for residents – and we will always have your back.

We are also taking a more collaborative approach to pressing issues like the widespread workforce challenges you are experiencing.

Ninety-four per cent of councils say they’re having difficulties with recruitment and retention.

This isn’t just your problem – it’s all our problem because council staff are on the frontline serving local communities.

So, we’re ready to work hand in hand with you to find creative solutions to staffing issues.

We’ll launch a Workforce Development Group in partnership with the sector to gain a shared understanding of the most immediate priorities and focus our efforts on where we can add the most value to your work.

And when we say we’ll work in partnership with the sector, every step of the way, we mean it.

I have formally launched our new Leaders’ Council at this very conference – which will give local government a voice at the heart of government – this a mark of just how seriously we take this.

The Council will bring together local government leaders and ministers to tackle shared problems and deliver for the communities they all ultimately serve.

We will use it to learn from the exciting innovations that councils are pioneering.

And we hugely respect your knowledge and expertise.

But it’s more than that.

The Leaders’ Council will be critical for co-designing policy at the highest levels.

And I look forward to working closely with the Council over the coming years.

Gone are the day of diktats from above.

It is time for those with skin in the game to be put in the driving seat.

That is what our devolution agenda is all about.

We will make it easier for you to come together and form combined authorities and devolve more powers to existing ones – meaning access to new powers over skills, transport and employment support.

Our landmark English Devolution Bill will deliver our manifesto commitment to transfer power out of Whitehall, making devolution the default setting.

And look, I know the coming years won’t always be easy, but I’m confident that, working in partnership, we can fix the basics so that you can focus on the things that really matter to our and your communities.

My starting point is that we should be clear about what we ask of you and then give you the autonomy and the support you need to deliver.

So, where we don’t need to get involved, we won’t.

It’s not our place, for example, to decide whether councillors should attend your meetings remotely or use proxy votes when they need to.

So, I can announce today that we’re putting forward proposals to let councils make the decision for themselves.

Which means making it possible for people from all walks of life to have a stake in local democracy, whether they have caring responsibilities or aren’t able to make it to the town hall in person because of illness or disability.

It’s right that we make it easier for more people to get involved in making their community a great place to live.

It’s also right that we expect the highest standards of local government – with central government playing its part as a responsible steward.

And for me this is personal.

I’m passionate about backing you with the long-term funding and certainty that you need.

The powers you need.

And the new relationship that we all need.

So local government can once again be a strong, functioning arm of the state, providing public services that people can rely on.

And I want to thank you, once again, for everything that you do for our communities.

This is a government of service that is on your side.

And the road ahead won’t always be a smooth path, but we will walk it together and build a better Britain.

Thank you.

Published 24 October 2024

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI Asia-Pac: Buildings Department follows up on incident of broken glass cladding at external wall of Citywalk

Source: Hong Kong Government special administrative region

Upon notification by the Police at about 7.30pm last night (October 24) regarding the incident of broken glass cladding at the external wall of Citywalk, Tsuen Wan, staff of the Buildings Department (BD) was immediately deployed to carry out site inspection and found that a piece of glass cladding of about 3m by 2m at the external wall of the fifth floor of the building facing Wo Tik Street was broken. No obvious danger to the overall building structure was noted.

As instructed by the staff of the BD, the property management company (PMC) of the building has arranged a contractor to remove the remaining loosen pieces of glass last night and would arrange inspection to the other glass cladding and carry out necessary repair as soon as possible to ensure public safety. The BD will issue an investigation order to require the owner to appoint an authorised person to conduct investigation and submit an investigation report together with a remedial proposal. The BD would maintain contact with the PMC to monitor the progress of the investigation and repair works.

The affected pavement is temporarily fenced off. The BD will continue to follow up the matter to ensure public safety.

The BD has specific requirements on the quality and construction of glass cladding. For example, the testing of materials and procedures before installation should comply with the relevant statutory requirements.

The BD emphasised that it is the responsibility of owners to ensure the safety of their buildings. Timely repair and maintenance of private buildings is the basic responsibility of owners. They may also be liable to criminal prosecution and civil proceedings if the building dilapidation causes damage to property or injury to persons.

MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Security: Upper Sackville — RCMP traffic stop results in seizure of handgun and drugs

Source: Royal Canadian Mounted Police

A traffic stop by the Nova Scotia RCMP’s Southeast Traffic Services (SETS) on Highway 101 has resulted in numerous charges and the seizure of a restricted firearm, drugs, illegal tobacco, and cash.

On October 23 at approximately 1:55 p.m., an officer with SETS was conducting traffic enforcement on Highway 101 in Upper Sackville and queried the license plate of a passing Dodge Ram, showing it to be unregistered. A traffic stop was conducted and the driver was determined to have a revoked driver’s license.

During the course of the Motor Vehicle Act investigation, the officer observed a quantity of unstamped tobacco cigarettes in the vehicle, and the driver was arrested under the Excise Act. The officer subsequently searched the vehicle and located more unstamped tobacco, bags of suspected methamphetamine pills, a significant quantity of cash, a 9mm handgun with the serial number removed, and two high capacity magazines.

The driver, 37-year-old Jacob Netherton of Mount Uniacke, has been charged with numerous offences including, but not limited to:

Possession of a Controlled Substance for the Purpose of Trafficking
Unauthorized Possession of a Firearm
Firearm Possession Contrary to Prohibition Order
Tampering with Firearm Serial Number
Possession of a Prohibited Device (over-capacity magazines)

Netherton was held in-custody pending an initial court appearance on October 24, 2024 at Halifax Provincial Court.

MIL Security OSI –

January 25, 2025

MIL-OSI Security: IAEA and Prince Albert II of Monaco Foundation Strengthen Long-Term Partnership on Ocean Acidification

Source: International Atomic Energy Agency – IAEA

Ocean acidification impacts marine life, particularly organisms with calcium-based shells or skeletons, such as corals and molluscs. (Photo: The Ocean Agency/Ocean Image Bank)

A new partnership has been signed which formalizes a long standing collaboration between the IAEA Marine Environment Laboratories, hosted by the Principality of Monaco, and the Prince Albert II of Monaco Foundation on ocean acidification and ocean-based solutions to climate change. The new Partnership falls under the framework of the IAEA’s Ocean Acidification International Coordination Centre and the Foundation’s initiative Ocean Acidification and other Ocean Change – Impacts and Solutions and was signed by the Foundation’s Vice President and CEO, Olivier Wenden, and IAEA Deputy Director General Najat Mokhtar.

Ocean acidification occurs when the ocean absorbs carbon dioxide (CO₂) released into the atmosphere by human activities. The ocean absorbs about 25 per cent of human-caused CO₂ emissions, leading to a series of changes in seawater chemistry, including an increase in acidity. Ocean acidification impacts marine life, particularly organisms with calcium-based shells or skeletons, such as corals and molluscs. Along with ocean warming and oxygen depletion, these changes create complex and unpredictable challenges for marine ecosystems.

Created in 2006, the Prince Albert II of Monaco, Foundation (PA2F) aims to protect the environment and promote sustainable development. Ocean acidification and ocean change has been a key focus of the PA2F since 2013 when the Ocean Change – Impacts and Solutions (OACIS) Initiative was launched.

“Ocean acidification is a global problem, but how the effects play out depend on local factors,” said Wenden. “Ocean acidification will hit harder in many regions of the world which do not necessarily have the resources or the capacity to monitor and to adapt. We are thrilled to be teaming up with the IAEA Marine Environment Laboratories to help bring knowledge and capacity to study ocean acidification to scientists across the globe”.

OACIS brings together the main organizations working on ocean acidification based in the Principality of Monaco (PA2F, the Monaco Government, the Oceanographic Museum, the Centre Scientifique de Monaco and the IAEA Marine Environment Laboratories), as well as the Villefranche Oceanographic Laboratory (French National Centre for Scientific Research (CNRS) /Sorbonne Universités), IDDRI and the International Union for Conservation of Nature.

Mokhtar said: “The IAEA is delighted and proud to formalize its long-lasting collaboration with the Prince Albert II of Monaco Foundation, a key player in marine conservation both in Monaco and internationally, with whom we share the same values and interests. We are excited to continue to work together to make sure that the scientific data and information needed to take action on ocean acidification is available, and to amplify our impact together, enabling lasting progress for IAEA Member States”.

Olivier Wenden, DDG Najat Mokhtar and Director Florence Descroix Comanducci, Lina Hansson, Jean-Pierre Cayol, Noura El-Haj on the steps of the Prince Albert II of Monaco Foundation, 3 October 2024, Monaco (Photo:Ludovic Arneodo/FPA2)

Ocean acidification is included under the Sustainable Development Goals under Goal 14, and its Target 3, which calls on countries to “minimize and address the impacts of ocean acidification, including through enhanced scientific cooperation at all levels”. Addressing ocean acidification is also part of the new Global Biodiversity Framework of the Convention of Biological Diversity, under Target 8. Yet, the capacity to monitor and study the effects of ocean acidification on marine biodiversity is largely insufficient in many parts of the world.

The IAEA’s Ocean Acidification International Coordination Centre (OA-ICC) promotes international collaboration on ocean acidification. The Centre organizes training courses for countries, provides access to data and resources and develops standardized methodologies and best practices. The OA-ICC also works to raise awareness among various stakeholders about the role that nuclear and isotopic techniques can play in assessing ocean acidification’s impacts. Scientists at the IAEA’s Marine Environment Laboratories in Monaco use these techniques to investigate the impacts of ocean acidification and its interaction with other environmental stressors.

Under the new partnership, the IAEA and the Foundation will co-organize training courses and expert meetings to empower countries to study and act on ocean acidification and ensure that research in this field is inclusive and participatory. They also plan to organize joint events to raise awareness about the latest research on ocean acidification and ocean-based solutions among policymakers, resource managers and other stakeholders at key ocean gatherings, such as the annual Monaco Ocean Week and the United Nations Ocean Conference and related events to be held in Nice and Monaco in June 2025.

Additionally, the partnership will also explore joint activities related to plastic pollution, another critical area where both the IAEA, through its flagship initiative on plastic pollution (NUTEC Plastics), and the PA2F are actively engaged.

As part of their joint upcoming activities, the two partners are organizing an international Winter School on Ocean Acidification and Multiple Stressors for researchers new to the field, which will take place at the IAEA Marine Environment Laboratories in Monaco from 18-29 November 2024.

MIL Security OSI –

January 25, 2025

MIL-OSI USA: Malliotakis and Local Officials Demand US DOE Hold City Accountable for Failing Children with Disabilities

Source: United States House of Representatives – Congresswoman Nicole Malliotakis (NY-11)

(STATEN ISLAND, NY) – Today, Congresswoman Nicole Malliotakis was joined by a bipartisan group of local elected officials to call on the U.S. Department of Education to hold New York City accountable for violating federal law by failing to provide non-public school students with developmental disabilities the Individualized Education Services Program (IESP) accommodations they are entitled to under the 1975 Individuals with Disabilities Education Act (IDEA).

One of the most prominent cases involves a deaf fifth grade student whose listening device, which she had used all summer and which the city had already paid for, was taken away. Her mother, Marisa Jones, has been advocating for the city to immediately reinstate her daughter’s accommodation, as without this device she struggles to hear and cannot participate fully in her education.

“It not only unconscionable that students across our city are being denied the accommodations they are legally entitled to, but it’s plain cruel to take away an already paid for listening device from a deaf 5th grade student. If another kid in the classroom were to walk up to her and snatch her device, you’d call it bullying, and that’s exactly what the City of New York, our own government, is doing,” said Congresswoman Nicole Malliotakis. “The city needs to stop playing games with children’s education and immediately reinstate these essential accommodations that they are legally required to provide under both state and federal laws immediately to prevent further learning loss by disabled students.”

“Without this [hearing device] my daughter can’t hear the teacher in the classroom she is effectively denied her right to an education.” said Marisa Jones, parent of a deaf student at St. Joseph Hill Academy. “It’s been two months since she hasn’t had these services, how do you make up for the regression? How do you make up for the lost time?”

“This year’s implementation of the IESP law is having an unjust impact on students with disabilities. The requirement to submit a written request by June 1st has caught many families off guard, as they were not properly informed. As a parent and a member of the Disabilities Committee, my priority is ensuring that these students have their necessary services reinstated. The financial burden on families to cover these essential services out of pocket is overwhelming, and we must ensure that every student receives the support they are entitled to.” said New York State Senator Jessica Scarcella-Spanton.

“We continue to receive numerous calls from private school parents regarding the DOE’s lack of concern or action taken regarding their children’s IEP’s (Individualized Educational Plans) and the services that are not being provided. This is unacceptable. These are mandated services that private school children, like public school children, are entitled to from the DOE. These children have been without their required services for almost two months. DOE needs to find the solution and provide the services needed to these children immediately. We support any and all efforts to get these students the services they need, and we thank Congresswoman Malliotakis for doing what she can to get it done.” said Staten Island Borough President Vito Fossella.

“As we have been saying from the beginning of this entirely preventable situation, NYC Public Schools knows our students need and are entitled to these critical services, yet the City recklessly deprives them of these services. Now, they must reap what they have sown. I applaud Congresswoman Malliotakis’ leadership and join her and my colleagues in calling on the U.S. Department of Education to hold New York City accountable for failing to provide our students with their legally prescribed IESP accommodations. They must be restored immediately.” said Assemblyman Sam Pirozzolo.

“We once again demand that the City take action immediately to rectify this disastrous situation. The City has been in violation of federal law since the beginning of the school year, and they have not been held accountable for their actions. We are calling on the federal government to step in and ensure accountability for our students and families,” said Assemblyman Mike Tannousis.

“I cannot believe that we are almost two months into the school year and some of our most vulnerable students are still being denied mandated services by the City of New York despite our ongoing efforts to rectify this at a local level,” said Assemblyman Michael Reilly. “This is embarrassing for our city and today we are joining with Congresswoman Malliotakis to make sure that the bureaucrats responsible for this are held accountable.”

“As we approach the third month of school and end of first marking period, children in need of valuable services are being denied because of an arbitrary date that has never been enforced before. I am once again calling on the DOE to rectify this situation immediately, so these students do not fall further behind in their development,” said Councilmember Joe Borelli.

“The decision by our local government to deliberately refuse to notify parents of the necessary paperwork for their IESP children is abhorrent. Students with special needs are refused access to services which are essential for their education simply because they are enrolled in private schools. This kind of decision making only reinforces the feelings of many parents who have already disengaged from our public school model due to previous breaches of trust. I expected better from the DOE, and I hope they will correct course and come into compliance with federal law.” said Councilmember David Carr.

Congresswoman Nicole Malliotakis and Congressman Ritchie Torres (NY-15) wrote to the U.S Department of Education requesting that it hold the city accountable for violating federal law by withholding Individualized Education Services Program (IESP) accommodations that children with disabilities are entitled to under the 1975 Individuals with Disabilities Education Act (IDEA). You can view the letter HERE.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Chavez-DeRemer Joins Oregon Delegation in Seeking Federal Help for State’s Record Fire Season

Source: United States House of Representatives – Lori Chavez-DeRemer (OR-05)

Citing severe damages to Central and Eastern Oregon, lawmakers’ letter asks President Biden “to swiftly provide the federal resources for our communities to recover and rebuild.”

WASHINGTON, D.C. – Oregon’s entire congressional delegation, including Reps. Lori Chavez-DeRemer, Cliff Bentz, Earl Blumenauer, Suzanne Bonamici, Val Hoyle, Andrea Salinas, and Sens. Ron Wyden and Jeff Merkley, are urging President Biden to grant the governor’s request for Oregon to receive a major disaster declaration in response to record-setting wildfires that burned about three times the average acreage this year.

“The 2024 wildfire season has been one of the most devastating and costly fire seasons on record,” the lawmakers wrote. “Central and Eastern Oregon experienced intense heat waves this summer, which dried out vegetation and created extreme fire risk on the landscape. Severe lightning storms ignited a large number of fires, and windy conditions allowed many of these fires to spread rapidly.”

“Over 1.9 million acres burned, making it the largest wildfire season by acreage in Oregon’s history. For context, the state’s 10-year average acres burned is 640,000 acres,” they continued. “The estimated damages and cost to public infrastructure exceeds $650 million, and this figure does not account for the long-term loss in revenue local businesses will experience as a result of these fires.“

The delegation wrote that this year’s extreme infernos and severe storms hit Gilliam, Grant, Jefferson, Umatilla, Wasco, and Wheeler counties hardest.

“The fires destroyed 42 homes and 132 additional buildings and structures, damaged critical infrastructure and the natural environment, interrupted schools, care facilities, and social services, injured 26 civilians and fire responders, and led to the death of an air tanker pilot,” the lawmakers wrote. “These fires have also created profound hardship for our ranchers, as they destroyed private and public grazing lands and cut off access to essential resources for livestock.”

In their letter supporting the governor’s request for federal disaster assistance, the Oregon lawmakers asked the Biden-Harris administration to ensure state, local, and tribal governments have access to all available resources through the Federal Emergency Management Agency and that the state’s cost-share be waived due to a lack of available state funding.

“Oregonians now require federal support and assistance to navigate the aftermath of this unprecedented fire season. The back-to-back incidents and lack of basic services had a devastating effect on the safety and stamina of our fire crews,” the delegation wrote. “We urge you and your administration to swiftly provide the federal resources for our communities to recover and rebuild.”

Full text of the letter is available HERE.

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MIL OSI USA News –

January 25, 2025

MIL-OSI United Nations: Deputy Secretary-General’s remarks to the Security Council – on Women, Peace and Security [as delivered]

Source: United Nations secretary general

Madam President, Excellencies,

First, let me begin by wishing everyone a happy UN Day.

Every year, in this Chamber, the global community reaffirms its commitment to ensuring women’s full, equal, and meaningful participation in conflict prevention, resolution, and recovery, and to upholding their rights during times of war.

Yet, progress remains dishearteningly slow.

Peace and security decision-making is overwhelmingly dominated by men.

And ending impunity for atrocities against women and girls is still but a distant goal.

And the past year has been especially difficult.

In Gaza, tens of thousands of Palestinian women and girls have been killed and injured amidst continued war and a terrible humanitarian crisis.

Meanwhile, the plight of Israeli women still held hostage demands urgent action to ensure their safety and immediate release.

In Lebanon, an escalation of destruction and displacement threatens women and girls’ safety and livelihood.

In Sudan, women are enduring extreme suffering, facing not only the loss of loved ones but also the dire lack of access to essential services and medical care.

I reiterate the Secretary-General’s calls:

Civilians must be protected, civilian infrastructure must not be targeted, and international law must be upheld.

The United Nations remains steadfast.

We will not look away or lose hope.

The women, peace and security agenda will always guide our work and show a path forward.

Despite attacks on our offices, and the detention and killings of our staff in unprecedented numbers, allow me to honor the work of my colleagues and share examples of what they do.

In peacekeeping missions, the women, peace and security agenda is a key political and strategic imperative.

Our teams work tirelessly to help protect and assist women – from relocating human rights defenders to aiding women after their release from abduction by armed groups, from ensuring women’s representation in local dialogues to helping bring justice to women in places where sexual violence has long been met with impunity.

In the Democratic Republic of Congo, for example, 57 percent of cases supported by the mission’s Prosecution Support Cells in 2023 involved conflict-related sexual violence, contributing to the conviction of dozens of members of armed groups and state security forces.

In Abyei, earlier this year, one-third of participants in a post-migration conference were women – this was a first.

In the Central African Republic, the mission is helping mobilize women for local elections that have not been held in 38 years.

Deploying more diverse teams to peacekeeping operations has helped us deliver better on our mandates.

The representation of women in most categories of uniformed personnel has doubled in the last five years, and initiatives have been put in place to foster gender-responsive work environments for all peacekeepers.

Yet, much more remains to be done to improve the gender balance of our deployments and reap the benefits of inclusion and diversity.

Success in peacekeeping hinges on the political support from Member States, especially those with the great honor of sitting in this Chamber to protect international peace and security.

I commend the efforts of the United Arab Emirates to empower Women in Peace and Security. This initiative has provided training and capacity building opportunities for over 600 women from the Middle East, Africa and Asia in military and peacekeeping. The UN is a proud partner in these efforts that advance the Women, Peace and Security Agenda.

Throughout the world, the UN reaches millions of displaced women and girls and survivors of violence with food, medical support, legal aid, shelter, access to safe spaces, psychosocial support, education, and jobs and livelihood opportunities.

Yesterday, survivors of conflict-related sexual violence from many war-torn corners of the globe gathered for a Survivor’s Hearing to mark the 15th anniversary of resolution 1888.

Effective protection from sexual violence is fundamental to women’s effective participation in peacebuilding, conflict recovery, and sustainable development that leaves no one behind.

None of this would happen without women’s organizations in the frontlines of crises, and we are trying to find ways of channeling more resources to them.

The Women’s Peace and Humanitarian Fund has supported over 1,300 local women’s civil society organizations since 2016, nearly half of them accessing UN funds for the first time, and 582 women human rights defenders and their families.

Last year, the Secretary-General invited all partners to contribute to the goal of raising 300 million dollars for women’s organizations in conflict-affected countries.

We still have a long way to go to get there.

40 percent of all funding of the 25-million-dollar GBV-focused grant by the Central Emergency Response Fund to UN Women and UNFPA was sub-granted to local women’s organizations and delivered remarkable results, a powerful demonstration that localization is both feasible and effective.

The Peacebuilding Fund has now exceeded its internal target allocation of 30 percent to gender equality for seven years in a row.

We know that the inclusion of women and gender-related provisions in peace processes not only advances gender equality, but also results in more durable peace agreements. From Guatemala to Northern Ireland, from Colombia to Liberia, research has shown how women in formal processes worked with diverse women’s groups to not only reach an agreement but also to strengthen the substance of peace agreements and opportunities for implementation.

Yet, women remain starkly under-represented from peace negotiations and conflict resolution efforts – including in some of the most intractable conflicts over the last year.

Historical data underscores this challenge: between 1992 and 2019, women constituted only 13 per cent of negotiators and six per cent of mediators in major peace processes.

More recent data from UN Women for 2023 shows that women on average made up less than ten per cent of peace negotiators and 13.5 per cent of mediators.

The processes in Libya and Yemen, where conflict parties have not included women, highlight a continued resistance to progress.

In Afghanistan, the regression of women’s rights highlights the severe impact of excluding women from governance – and society altogether.

It is imperative that we reinforce our resolve to support women in Afghanistan and elsewhere, advocating for their rights, agency and inclusion at every opportunity.

Collective action and solidarity are crucial.

In today’s broader global mediation landscape, the United Nations is not always present.

In fact, a diverse set of regional, state and other mediation actors initiates and leads mediation processes.

Many contexts feature joint or overlapping peace initiatives.

This means that no single mediator can affect global and meaningful change on women’s participation.

It is why, today, on behalf of the Secretary-General, I am pleased to launch the “Common Pledge on Women’s Participation in Peace Processes”, an initiative that brings together a broad array of mediation actors.

By endorsing this Common Pledge, Member States, regional organizations and other mediation actors commit to join the United Nations in taking concrete steps on women’s participation in all peace processes they are involved in.

These commitments include:

Appointing women as lead mediators and ensuring women are an integral part of mediation teams;

Ensuring mediators advocate with conflict parties for concrete targets and measures that promote women’s direct and meaningful participation in peace processes, including as members of their delegations;

Consulting with a broad range of women leaders and women-led civil society organizations in all stages of peace processes; and

Embedding gender expertise in their mediation teams to foster gender-responsive peace processes and agreements.

This Pledge targets mediating entities and is intended as an operational initiative, and not another general statement of principle.

It focuses on measures and decisions that are under the control of mediators and their organizations.

The Secretary-General invites Member States, regional organizations and other actors who are actively engaged in mediation to join this initiative and report on their progress at next year’s 25th Anniversary Security Council Open Debate on women, peace and security.

Madam President,

We have no illusions about the challenges posed by today’s geopolitical landscape and the complexity of achieving diplomatic outcomes.

As long as gendered power inequalities, patriarchal social structures, systematic biases, violence and discrimination continues to hold back half our societies, peace will remain elusive.

Yet, our collective experience has shown that progress is possible.

Together, we can have an impact that is greater than the sum of our individual efforts.

By leveraging our respective political capital and roles, let us dismantle the patriarchal power structures and advance gender equality, ensuring women’s full, equal and meaningful participation in political and public life.

Thank you.

MIL OSI United Nations News –

January 25, 2025

MIL-OSI Security: Sagkeeng First Nation — Powerview RCMP arrest two after firearms complaint

Source: Royal Canadian Mounted Police

On October 22, 2024, just after 12:00 am, Powerview RCMP responded to a call of two males with a firearm walking in the community.

Officers began patrols immediately and spotted a running vehicle parked in front of a residence with two occupants inside. As officers approached the vehicle, they noticed a rifle in the back seat.

Melvin Courchene, 26, and a 32-year-old male were both arrested without incident, and the firearm was seized. At that time, officers became aware there was still another male inside the residence with a firearm.

Officers on scene contained the residence, and requested assistance from the RCMP Emergency Response Team (ERT). A warrant to enter the residence was granted, ERT responded, and the suspect, Isaiah Morrisseau, 39, surrendered without incident.

Isaiah Morrisseau is charged with:

-Possession of Firearm when Knowing Possession Unauthorized

-Weapons Possession Contrary to Order and Fail to Surrender Authorization

-Possession of Weapon for Dangerous Purpose

Melvin Courchene is charged with:

-Possession of Firearm when Knowing Possession Unauthorized

-Possession of a Firearm in Motor Vehicle

-Weapons Possession Contrary to Order and Fail to Surrender Authorization x2

The 32-year-old male was arrested for:

-Unauthorized Possession of a Firearm

-Possession of a Firearm Ammunition in Motor Vehicle

Morrisseau and Courchene have been remanded, while the 32-year-old male was released on conditions and cannot be named.

The investigation continues.

MIL Security OSI –

January 25, 2025

MIL-OSI: Cointelegraph Accelerator opens applications for its upcoming cohort, offering investment to innovative projects

Source: GlobeNewswire (MIL-OSI)

DUBAI, United Arab Emirates, Oct. 24, 2024 (GLOBE NEWSWIRE) — Cointelegraph Accelerator, a startup booster leveraging Cointelegraph’s capabilities as a media and strategic partner, has announced the launch of the application process for its upcoming cohort, inviting innovative Web3 startups to apply for the program. The application period runs from October 24, 2024, to January 31, 2025, with the cohort set to commence in the first quarter of 2025.

The program supports early-stage crypto and blockchain companies by providing them with the necessary resources to scale. Selected startups receive seed investments and benefit from Cointelegraph’s extensive media reach, marketing expertise, industry connections and mentorship from seasoned professionals, positioning them for accelerated growth and success in the competitive Web3 landscape.

An accelerator designed for impact

Cointelegraph Accelerator’s program structure is crafted to offer much more than just funding. Participants receive:

An investment of up to $100,000 to scale operations to enhance product development and expand market reach.
Mentorship and advisory from industry experts, providing guidance and insights from experienced leaders to help up-and-coming Web3 startups navigate challenges, refine business strategies and capitalize on emerging opportunities.
Integration into Cointelegraph’s network enables connections with a vast array of investors, strategic partners, KOLs and thought leaders in the crypto and blockchain sectors.
Access to Cointelegraph media products allows startups to utilize Cointelegraph’s global media platform to amplify visibility, engage with a broader audience and establish a strong market presence.
Marketing expertise from a team with over 10 years of Web3 experience, including a critical assessment of value proposition, enhancement of go-to-market strategies, and best practices for PR, social media and community management

Focus areas for the cohort

The accelerator program is seeking applications from projects that are innovating within key verticals poised to shape the future of the blockchain industry:

Payments

Projects focusing on innovative payment technologies that facilitate seamless, secure and cost-effective transactions using crypto and blockchain rails. These solutions aim to enhance global commerce by making financial exchanges more accessible and efficient for individuals and businesses.

Infrastructure

Projects developing infrastructure solutions that serve as the backbone of blockchain technology. This includes advancements in blockchain protocols, DePIN, scalability solutions, infrastructure layers supporting AI and interoperability frameworks that enable other projects to build and thrive upon these foundations.

Decentralized finance (DeFi)

Projects creating decentralized protocols and platforms that provide alternatives to conventional banking, lending and investment services. By leveraging blockchain technology, these solutions aim to democratize finance, reduce reliance on intermediaries and empower users with greater control over their assets.

Real-world assets (RWA)

Projects that bring tangible items — such as securities, real estate and commodities — onto the blockchain through real-world asset tokenization. This integration allows for fractional ownership, improved liquidity and broader investment opportunities, making markets more inclusive and efficient.

Consumer Applications

Projects that develop solutions in areas like digital identity management, loyalty and rewards programs, social media platforms and content delivery networks. These applications aim to simplify user experiences, enhance security and offer new value propositions to everyday users, thereby accelerating the integration of blockchain technology into daily life.

Program Structure and Duration

The Accelerator is a 12-week intensive program conducted entirely remotely, providing flexibility and accessibility to startups worldwide. Despite being remote, the program includes offline meetups and demo days, offering valuable face-to-face networking opportunities and the chance to present projects to potential investors and partners.

During and upon completion of the program, startups will benefit from a media campaign lasting up to a year, leveraging Cointelegraph’s global reach to maintain momentum, increase brand awareness, and engage continuously with the broader blockchain community.

Inside the Cointelegraph Accelerator

Emphasizing the program’s commitment to fostering innovation in the industry, Paul Solntsev, managing director of Cointelegraph Accelerator, highlighted:

“We are excited to launch the application stage for the new cohort and support pioneering projects that will shape the future of the crypto and blockchain industry. Our accelerator is committed to providing the capital, as well as the resources, network, and mentorship necessary for these projects to thrive.”

Cointelegraph’s CEO, Yana Prikhodchenko, highlighted the profound impact of the accelerator program, saying:

“At Cointelegraph, we’re redefining the role of media in the blockchain industry by actively participating in its growth. Through our accelerator program, we go beyond traditional media business and nurture groundbreaking projects. This initiative allows us to provide tangible value to the community of founders and investors to empower the next generation of blockchain pioneers.”

About Cointelegraph Accelerator
Cointelegraph Accelerator is working with early-stage Web3 projects to boost their growth by leveraging its access to a native Web3 audience, marketing expertise, and a broad network of partners in the industry. Accelerator participants also get mentorship support over key aspects of Web3 startup growth, e.g., token launch, liquidity management, token incentives design, etc. The equity/token-based program aligns the interests of the accelerator and the participants, allowing them to build meaningful partnerships for sustainable growth.

For more information on the program and how to apply, visit the Cointelegraph Accelerator Program.

Tags: Blockchain, DeFi, Web3, Startups, Business, Cointelegraph Accelerator, Announcement

Contact:
Paul Solntsev
Head of Cointelegraph Accelerator
ps@cointelegraph.com

Disclaimer: This content is provided by Cointelegraph. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0b96b721-dd22-4a92-8c98-8b19ab8ccb28

The MIL Network –

January 25, 2025

MIL-OSI: Gevo to Report Third Quarter 2024 Financial Results on November 7, 2024

Source: GlobeNewswire (MIL-OSI)

ENGLEWOOD, Colo., Oct. 24, 2024 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced today that it will host a conference call on November 7, 2024, at 4:30 p.m. ET (2:30 p.m. MT) to report its financial results for the third quarter ended September 30, 2024.

To participate in the live call, please register through the following event weblink: https://register.vevent.com/register/BId0c13b561f9d442ba7211ad0cbc56dbc

After registering, participants will be provided with a dial-in number and pin.

To listen to the conference call (audio only), please register through the following event weblink: https://edge.media-server.com/mmc/p/ggx3po5y

A webcast replay will be available two hours after the conference call ends on November 7, 2024. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

About Gevo

Gevo’s mission is to convert renewable energy and biogenic carbon into sustainable fuels and chemicals with a net-zero or better carbon footprint. Gevo’s innovative technology can be used to make a variety of products, including sustainable aviation fuel (“SAF”), motor fuels, chemicals, and other materials. Gevo’s business model includes developing, financing, and operating production facilities for these renewable fuels and other products. It currently runs one of the largest dairy-based renewable natural gas (“RNG”) facilities in the United States. It also owns the world’s first production facility for specialty alcohol-to-jet (“ATJ”) fuels and chemicals. Gevo emphasizes the importance of sustainability by tracking and verifying the carbon footprint of its business systems through its Verity subsidiary.

Learn more at Gevo’s website: www.gevo.com.

PUBLIC AFFAIRS CONTACT
Heather Manuel
VP of Stakeholder Engagement & Partnerships
PR@gevo.com

INVESTOR CONTACT
Eric Frey, PhD
VP of Finance and Strategy
IR@gevo.com

The MIL Network –

January 25, 2025

MIL-OSI USA: Senate Intelligence Committee Chairman Presses Domain Registrars Providing Support to Russian Influence Efforts

US Senate News:

Source: United States Senator for Commonwealth of Virginia Mark R Warner

WASHINGTON – U.S. Senator Mark R. Warner (D-VA), Chairman of the Senate Select Committee on Intelligence, today wrote to American domain registrars NameCheap, GoDaddy, Cloudflare, NewFold Digital, NameSilo, and Versign – which were identified in a Department of Justice affidavit as providing domain services to the “Doppelganger” Russian covert influence network – pressing them to take immediate steps to address the continued abuse of their services for foreign covert influence, particularly in the period preceding and following Election Day.

Through the maintenance of both inauthentic social media accounts and websites, the hallmark of the Russian government-directed foreign malign influence campaigns known as “Doppelganger” has been the impersonation of Western media institutions online, including outlets like the Washington Post, Fox News, and Forward. Russian influence operatives have been attributed impersonating dozens of legitimate organizations online as early as September 2022, when researchers at the nonprofit EU Disinfo Lab first identified the network’s campaigns, using misleading domains (such as www.washingtonpost.pm, www.washingtonpost.ltd, www.fox-news.in, www.fox-news.top and www.forward.pw) to covertly spread Russian government propaganda with the aim of reducing international support for Ukraine, bolstering pro-Russian policies and interests, and influencing voters in U.S. and foreign elections, including the 2024 presidential election.

Citing research conducted by Meta in 2023, Warner noted several ways in which the global domain name industry has enabled Russian malign influence activity, including withholding vital domain name registration information from good-faith researchers and digital forensic investigators, ignoring inaccurate registration information submitted by registrants, and failing to identify repeated instances of intentional and malicious domain name squatting used to impersonate legitimate organizations.

Wrote Warner today, “Information included in the affidavit supporting recent seizure of a number of these domains provides further indication of your industry’s apparent inattention to abuses by foreign actors engaged in covert influence. Specifically, Russian influence actors utilized a number of tactics, techniques, and procedures that – against the backdrop of extensive open source literature on Doppelganger’s practices – should have alerted your company to abuse of its services, including the use of cryptocurrency to purchase domains, heavy reliance on anonymizing infrastructure to access your registration services (including the use of IPs widely associated with cybercriminal obfuscation network activity), the use of credit cards issued to a U.S. company “that has significant ties to, and employees based in, Russia,” use of fictitious and poorly-backstopped identities for registrants, and in at least one instance the use of a Russian address.”

Noted Warner, “While foreign covert influence represents one of the most egregious abuses of the domain name system, the industry’s inattention to abuse has been well-documented for years, enabling malicious activity such as phishing campaigns, drive-by malware, and online scams – all possible because of malicious actors using your services… Given the continued lapses of your industry to address these abuses, I believe Congress may need to evaluate legislative remedies that promote greater diligence across the global domain name ecosystem.”

“In the interim, your company must take immediate steps to address the continued abuse of your services for foreign covert influence – particularly in the days preceding, and weeks immediately following, Election Day. With the prospect of a close election – and declassified intelligence demonstrating the past practice of foreign adversaries in spreading narratives that undermine confidence in election processes– Americans will be particularly reliant on media organizations and state and local government websites to provide authoritative and accurate election information. It is imperative that your company work to diminish the risk that foreign adversaries use impersonated domains to promote false narratives in this context,” Warner concluded.

As Chairman of the Senate Select Committee on Intelligence, Warner has been consistently warning about the threat posed by foreign covert influence networks ahead of the 2024 elections. Last month, he convened a public hearing with representatives from Alphabet, Meta and Microsoft examining the roles and responsibilities of U.S. platforms to prevent the spread of foreign propaganda and misinformation on their networks.

A copy of the letters are available here.

MIL OSI USA News –

January 25, 2025

MIL-OSI Europe: Philip R. Lane: Underlying inflation: an update

Source: European Central Bank

Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Inflation: Drivers and Dynamics Conference 2024 organised by the Federal Reserve Bank of Cleveland and the ECB

Cleveland, 24 October 2024

Introduction

My aim today is to provide an update on underlying inflation in the euro area.^[1] The concept of underlying inflation plays a central role in the conduct of the ECB’s monetary policy: our interest rate decisions are based on our assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission. This three-pronged reaction function complements the traditional focus on the inflation forecast for inflation-targeting central banks with the signals embodied in underlying inflation measures, while also incorporating the evolving evidence on the strength of monetary policy transmission in the calibration of the monetary stance. This pragmatic approach reflects the value of data dependence under highly atypical macroeconomic conditions.

Latest developments in euro area underlying inflation

Underlying inflation is the persistent component of inflation, signalling where headline inflation will settle in the medium term after temporary factors have vanished. In practice, underlying inflation is unobservable and needs to be proxied or estimated. There are two broad categories of measures that aim to capture this concept. Exclusion-based measures omit certain items – such as energy and food – that are typically volatile and more sensitive to global factors than domestic fundamentals. Model-based measures, meanwhile, capture more complex channels and dynamics, subject to the limitations imposed by sensitivity to model estimation. An overview of such measures is shown in Chart 1.

Model-based measures at the ECB include the Persistent and Common Component of Inflation (PCCI), which is constructed by estimating a dynamic factor model that extracts the persistent and common component of inflation from granular price data at the item-country level, thereby exploiting the relative advantages of both cross-sectional and time series approaches.^[2] Another model-based measure is Supercore inflation, which picks out those items that are estimated to co-move with the business cycle. These model-based measures are reduced form in nature and, among other factors, reflect the empirical contribution of monetary policy tightening to delivering disinflation. That is to say, if current inflation is above target, one reason why underlying inflation might run below current inflation is that the projected mean reversion is partly driven by endogenous monetary policy tightening that has historically contributed to the return of inflation to the target over the medium term. In turn, monitoring the evolution of underlying inflation is an important element in diagnosing whether monetary policy is appropriately calibrated.

Each of the underlying inflation indicators tracked by the ECB has declined significantly since the post-pandemic inflation surges, with the range narrowing towards its historical average. The majority of indicators are hovering around 1.9 per cent to 2.8 per cent, down from a much wider range between 3.4 per cent to 7.5 per cent at its peak (Chart 1). Core inflation is the most prominent exclusion-based measure, defined as HICP inflation excluding energy and food: this edged down to 2.7 per cent in September, continuing the marked decline from 4.5 per cent a year ago.^[3]In terms of model-based measures, the PCCI today is at the bottom of the range, standing at 1.9 per cent in September and having hovered around 2.0 per cent since the end of last year. Most other measures that we regularly monitor have also come down over the past year and show signs of continued easing in September.

One challenge in interpreting standard indicators of underlying inflation is that these were affected by the past extraordinary supply shocks, as well as by temporary mismatches between demand and supply. As I pointed out in my March 2023 speech, it is helpful to think of headline inflation as being driven by three factors: (i) underlying inflation; (ii) a reverting component; and (iii) pure noise.^[4] In particular, the major dislocations of recent years induced a substantial reverting component of inflation that was sufficiently long-lasting not to constitute pure noise but that was also expected to fade out over time. These dislocations included the impact of energy inflation and supply bottlenecks. To capture their indirect impact on measures of underlying inflation, we have in parallel monitored adjusted measures of underlying inflation that “partial out” these indirect influences. These adjusted measures had a significantly lower peak rate of underlying inflation than the un-adjusted measures but, by construction, were also less affected by the sharp turnaround in energy prices and easing of supply bottlenecks during 2023 that flattered the speed of progress in the un-adjusted measures. Currently, these adjustments bring down the range to between 2 per cent and 2.5 per cent, as the impact of past supply-side shocks has greatly diminished. In particular, the forward-looking PCCI measures are by now free of such impacts.

Chart 1

Euro area underlying inflation measures and their adjusted counterpart

(annual percentage changes)

Exclusion-based measures	Model-based measures

Sources: Eurostat and ECB calculations.

Notes: HICPX stands for HICP inflation excluding energy and food; HICPXX for HICP inflation excluding energy, food, travel-related items, clothing and footwear; PCCI is the persistent and common component of inflation, while Supercore aggregates HICPX items sensitive to domestic business cycle. See also Bańbura et al. (2023), “Underlying inflation measures: an analytical guide for the euro area”, Economic Bulletin, Issue 5, ECB. The ‘adjusted’ measures abstract from energy and supply-bottlenecks shocks using a large SVAR, see Bańbura, M., Bobeica, E. and Martínez-Hernández, C. 2023, “What drives core inflation? The role of supply shocks.”, ECB Working Paper No 2875.

The latest observations are for September 2024.

Each measure of underlying inflation provides useful information about future headline inflation, although their forecasting performance varies. Chart 2 shows the root mean squared forecast error (RMSFE) for each measure vis-à-vis inflation two years ahead and vis-à-vis a smoothed inflation rate. Forecasting performance is normalised to the predictive power of current headline inflation: that is, a ratio below unity means that the measure does a better job than current headline inflation in forecasting future inflation. Indeed, most measures beat current headline inflation in forecasting future inflation. The PCCI measures have the best predictive power, while most exclusion-based measures perform less well.

However, in understanding the inflation process and calibrating monetary policy, it is essential to look beyond overall predictive power and also examine how the various underlying inflation measures can shed light on the speed and sequencing of the disinflation process. For instance, external shocks were a prominent feature of the post-pandemic economic landscape.^[5] While the PCCI measures provided a powerful signal that these shocks would ultimately fade out, the delayed and lagged adjustment in indicators such as services inflation, domestic inflation and wage growth served to highlight that convergence to the medium-term target would not be immediate.^[6] I will focus on these indicators in the next part of my talk.

Chart 2

Predictive properties of underlying inflation measures for HICP inflation

(RMSFE of each measure relative to RMSFE of headline inflation)

Sources: Eurostat and ECB calculations.

Notes: RMSFE 24 months and RMSFE smoothed HICP are the root mean squared forecast errors of each measure with respect to headline inflation 24 months ahead and the two-year centred moving average of inflation covering two years of future data, respectively, divided by the RMSFE of headline inflation. A ratio lower than unity indicates that the measure performs better than headline inflation. The sample covers the period from April 2001 to September 2024.

Services, domestic inflation and wages

Domestic inflation captures price dynamics in consumption items that are less influenced by external factors, being more determined by domestic economic conditions, including monetary policy. While trends in the relative prices of globally-determined components (mostly in the energy, food and goods categories) mean that the two per cent target for overall inflation is not a target for domestic inflation, domestic inflation cannot remain at an excessive level if the target is to be sustainably achieved.^[7] Moreover, assessing the strength of domestic inflation is essential to the calibration of monetary policy, since domestic inflation will be more responsive than global inflation components to the impact of monetary policy via the dampening of domestic demand.

The domestic inflation indicator monitored at the ECB is an aggregation of HICP items with low import content.^[8] As shown in Chart 3, domestic inflation and services inflation co-move closely. This reflects the dominance of services items in the domestic inflation measures, accounting for 97 per cent of the overall index. At the same time, it remains useful to maintain domestic inflation and services inflation as separate measures: while almost 80 per cent of the services items are included in the domestic inflation index, the overall services category also includes highly-traded services items (Chart 4). These internationally-traded services items currently have a lower contribution to services inflation than domestic services items.

Chart 3

Services inflation and domestic inflation

(annual percentage changes)

Sources: Eurostat and ECB staff calculations.

Notes: Domestic inflation is an aggregate of HICP items with a relatively low import intensity, as explained in Fröhling, A., O’Brien, D. and Schaefer, S. (2022), “A new indicator of domestic inflation for the euro area”, Economic Bulletin, Issue 4, ECB.
The latest observations are for September 2024.

Chart 4

Services inflation and domestic inflation

(percentage point contribution to services inflation)

Sources: Eurostat and ECB staff calculations.

Notes: The chart shows all services items and the x axis shows the contribution of each item to total services inflation in September 2024. In weighted terms, 80 per cent of services are in domestic inflation and 97 per cent of domestic inflation is composed of services items. Domestic inflation also includes three good items which are not shown on the chart.

The large supply-side shocks of the post-pandemic period have been feeding through to domestic inflation with a lag compared with other measures of underlying inflation. Large supply-side shocks have travelled across sectors and consumption items at different speeds, so it is unsurprising that these had differential impacts on the various measures of underlying inflation, depending on their nature and construction.

Domestic inflation and services inflation tend to lag headline inflation more than other measures, exhibiting a lower frequency of price adjustment compared with the energy, food and goods categories in the HICP.^[9] For this reason, many items in services inflation and domestic inflation were late movers that responded with a much longer lag to the latest inflationary shock, such that annual services inflation remains elevated.^[10] Chart 5 shows the impact of energy and supply-chain bottlenecks on the PCCIs, domestic inflation and other measures of underlying inflation. Among these measures, PCCIs are more forward-looking and have picked up certain shocks faster, but with the byproduct that the effects of the shocks also faded quicker. Other indicators, like domestic inflation, are more backward-looking, and the currently higher levels also reflect the still ongoing propagation of past shocks. In similar vein, the past shocks took longer to build up in domestic inflation and are also taking longer to dissipate.

Chart 5

Impact of energy and supply-side bottlenecks shocks across measures of underlying inflation

(percentage points)

Impact of energy-related shocks	Impact of global supply chain-related shocks

Sources: Eurostat and ECB calculations

Notes: The range covers the estimated impact of shocks across all monitored underlying inflation measures. The impact of the energy and supply bottleneck shocks are estimated in a large SVAR, see Bańbura, M. et al. (2023), op. cit..

The latest observations are for September 2024.

The PCCI for services indicates that there is currently a sizeable gap between services inflation and its medium-term underlying trend, suggesting there is scope for downward adjustment in services inflation in the coming months. Services PCCI has been around 2.4 per cent since the end of last year, well below the current annual rate for services (Chart 6, left panel).^[11] This difference suggests that idiosyncratic and non-persistent factors are currently driving services inflation. Examples of such idiosyncratic factors include the base effect related to the introduction of the cheap travel Deutschland-ticket in Germany in May 2023, rent inflation in the Netherlands, and items that reprice less frequently, such as insurance or other administered prices (like hospital services) in some countries.

Over time, the fading out of these idiosyncratic and temporary factors should means that services inflation declines towards the underlying rate. Indeed, momentum indicators for services confirm the slight easing of inflation dynamics. While services momentum (i.e. the three-month-on-three-month growth rate of the seasonally-adjusted index) remains high, it has been continuously easing since May (Chart 6, right panel). The month-on-month seasonally-adjusted rate markedly dropped in September. ^[12]

Chart 6

Services inflation

(annual percentage changes (left panel) and annualised three-month-on-three-month and month-on-month changes (right panel))

Gap compared with PCCI	Momentum of services inflation

Sources: Eurostat and ECB staff calculations.

Note: The latest observations are for September 2024.

Services and domestic inflation are closely linked to wage growth: the expected easing of wage growth in 2025, together with the impact of past monetary policy tightening, should contribute to further disinflation. Wages constitute a higher direct share in costs of services than goods and Chart 7 highlights the strong link between domestic inflation, services and wages: their level is normally similar and they closely co-move with each other.^[13] Chart 7 also shows how pressures in these three components can take time to moderate following a tightening in policy.

Chart 7

Services and domestic inflation and wage growth after episodes of monetary policy tightening

(annual percentage changes)

Sources: Eurostat, ECB and ECB calculations.

Notes: Shaded areas show monetary policy tightening episodes. CPE stands for compensation per employee. The dotted line shows latest Eurostat data up to Q2 2024 for CPE carried forward with quarter-on-quarter rates from the September ECB staff projections. The latest observations are for the second quarter of 2024 for CPE and the third quarter of 2024 for the rest.

Wage growth is expected to ease from its current high level, with the cumulative increase in nominal wages over 2023-2024 largely restoring the purchasing power that was lost during the inflation surges of 2021-2022. Wage pressures are currently still high: the growth rate of compensation per employee stood at 4.5 per cent in the second quarter of 2024, albeit down from its peak of 5.6 per cent in the second quarter of 2023.

Recently, the incoming information for 2024 in the ECB wage tracker indicator of latest agreements shows that wage agreements signed in 2024 had substantially lower structural wage growth for the next 12 months if their previous agreement was signed in 2023 or 2022, as compared with 2021 (Chart 8, left panel). Moreover, in the months ahead, there are fewer wage agreements coming up for renegotiation that have not had an agreement since the surge in inflation (Chart 8, right panel). This suggests that the catching up motive in wage negotiations is losing ground as inflation normalises. Forward-looking indicators suggest further diminishing wage pressures into 2025 (Chart 9). The forward-looking wage tracker (dark blue line in Chart 9) shows the wage growth until the end of 2025 in the available contracts that have been agreed and signed.

One caveat in interpreting developments in the forward- looking wage tracker is that, since it only considers agreements that are active in the future, the contract coverage on which it is based declines as contracts expire (solid grey area in Chart 9). For this reason, scenarios for the expiring contracts (in the grey striped area) can help to assess risks around the outlook for wages. The scenarios illustrated in Chart 9 assume different renegotiated annual wage growth for expired contracts: (i) full pass-through of HICP and real productivity growth top-up to wages; (ii) HICPX and real productivity growth top-up to wages; (iii) wages increase at the same very strong level as contracts signed in the second quarter of 2024 that were still recouping large real wage losses (this is an upper bound scenario). Even this upper-bound scenario points to a slowdown in wage pressures in 2025 compared with 2024. This reflects in part that base effects, for example those related to high one-off payments this year, will dampen future wage growth in year-on-year terms.

Chart 8

Euro area wage tracker

(annual percentage changes (left panel) and millions of workers (right panel))

12-months-ahead growth for contracts signed in 2024 by its preceding agreement signing year	Expiring agreements by preceding contract signing

Sources: Calculated based on micro data on wage agreements provided by the Deutsche Bundesbank, Banco de España, the Dutch employer association (AWVN), Oesterreichische Nationalbank, Bank of Greece, Banca d’Italia, Bank of Ireland and Banque de France.

Note: The latest observations are for June 2025 for the workers under expiring agreements.

Chart 9

Euro area wage tracker – forward-looking scenarios

(annual percentage changes)

Sources: ECB staff calculations based on the ECB wage tracker database.

Notes: The forecast scenarios take sectors with contracts expiring after the current date and assumes that new contracts are concluded with a structural wage increase per year based on a full pass-through of projected (September 2024 ECB staff projections) HICP or HICPX inflation and productivity growth (scenarios HICP+PROD and HICPX+PROD), or at the same rate of wage increase observed for contracts signed in the second quarter of 2024 (forecast scenario Q2 2024). The forward-looking tracker only considers active agreements. All scenarios include one-off payments smoothed over 12 months.

The latest observations are for December 2025.

The latest information from surveys reinforces the projection of easing wage growth that will underpin the moderation in services inflation and domestic inflation. Chart 10 presents consecutive rounds of various ECB surveys, which provide a wealth of valuable information that helps us gauge the pulse of the economy in real time. The incoming survey information on wage growth provided by both firms and professional forecasters confirm the narrative embedded in our September 2024 ECB staff projection that wage growth will ease in 2025 compared with 2024, primarily owing to the fading out of the catch-up dynamic that has dominated wage negotiations between 2022 and 2024.

Chart 10

Eurosystem and ECB staff macroeconomic projections on wages and survey-based wage expectations

(annual percentage changes)

Sources: Survey of Professional Forecasters (SPF), June 2024 Eurosystem Staff Macroeconomic Projections and September 2024 ECB Staff Macroeconomic Projections, September and October 2024 Consensus Economics Forecasts, July and October Corporate Telephone Survey (CTS) and the survey on the access to finance of enterprises (SAFE) for the first and second quarters of 2024. Notes: The SAFE survey asks 12-month-ahead wage growth, while all the other surveys are for calendar years.

In summary, in analysing services inflation and domestic inflation, it is crucial to distinguish between the underlying persistent component that matters for the medium term and the backward-looking reverting component that takes time to fade out but that ultimately reflects the staggered nature of the adjustment process to the original and extraordinary inflation shocks. This backward-looking component has been substantial: the inflation shocks of 2021-2022 spread across sectors at varying speeds. The slowest-moving sectors were those in which prices adjust more slowly or are most closely tied to wage adjustment. For these indicators, we need patience as the normalisation process takes time.

Conclusion

In my remarks today, I have sought to provide an update on the dynamics of underlying inflation. I have emphasised that underlying inflation measures not only serve to extract the persistent component from the latest inflation readings but also provide insights into the nature of disinflation, especially in relation to the staggered nature of the adjustment process. In particular, the analysis of underlying inflation suggests that 2024 is a transition year, in which backward-looking components are still playing out. But the analysis of underlying inflation also indicates that the disinflation process is well on track, and inflation is set to return to target in the course of 2025.

MIL OSI Europe News –

January 25, 2025

MIL-OSI USA: Ciscomani, Chairman Bost Attend Veteran-Focused Events in AZ06

Source: United States House of Representatives – Congressman Juan Ciscomani (Arizona)

ARIZONA 6th – U.S. Congressman Juan Ciscomani (AZ-06) and House Committee on Veterans’ Affairs Chairman Mike Bost (IL-12) attended several veterans-focused events in Arizona’s 6th Congressional district, which is home to over 70,000 veterans. 

The events included hosting a quarterly meeting with Ciscomani’s Veterans Advisory Council, touring Northstar Neurology’s facilities, attending the Cochise County Veteran StandDown Resource Fair, discussing Cochise College’s Military and Veteran Serving Program, and attending the Fort Huachuca Quarterly Installation Retirement Ceremony.

“As the Representative to over 70,000 veterans that call Arizona’s 6th district home, it is my duty and honor to advocate on their behalf and ensure their needs are prioritized by the federal government,” said Ciscomani. “I am grateful to Chairman Bost for his leadership and taking the time to talk directly with veterans in my district. I will continue to push for legislation, funding, and other efforts that provide comprehensive healthcare, mental health support, educational opportunities, and employment resources to our veterans to empower them to transition successfully into civilian life.”

“As Chairman of the House Committee on Veterans’ Affairs, I was honored to visit with my friend and colleague Rep. Juan Ciscomani in Arizona’s sixth congressional district last week to meet with his veteran community,” said Chairman Bost. “We visited with veterans from all walks of life, including veterans from the Cochise community, and veterans’ survivors to see firsthand how Arizona is leading the way to get veterans and their family’s access to the economic opportunities, education, and outside-the-box mental health support and resources they have earned. House Republicans will continue pushing to cut through the red tape and open more doors for veterans and transitioning active-duty servicemembers across the country. It goes without saying that veterans in southeastern Arizona have no better advocate than my friend, Rep. Ciscomani, fighting for them every day in DC on the issues that matter most to them.”

Veterans Advisory Council

Ciscomani, Bost hosted a quarterly meeting with Ciscomani’s Veteran Advisory Council, which is chaired by Maj. Gen. Don Shepperd (Ret.) and is comprised of veterans from the U.S. Marine Corps, U.S. Air Force, U.S. Army, and U.S. Navy. The council has identified specific areas of focus, which include which include veterans’ transition into civilian life, access to housing, mental health and suicide prevention, and workforce and education opportunities.

Tour of Northstar Neurology

Ciscomani and Bost toured Northstar Neurology, a treatment facility in Tucson founded in 2017 that provides critical help to veterans suffering with a traumatic brain injury or PTSD.

Cochise County Veteran StandDown Resource Fair 

Ciscomani, Bost, and Congressman Tony Gonzales (TX-23) attended the Cochise County Veteran StandDown Resource Fair to speak directly with veterans about the most pressing issues they face and share resources Ciscomani’s office can offer to veterans. 

Cochise College Military & Veteran Serving Program

Ciscomani, Bost visited Cochise College to discuss their Military and Veteran Serving Program and strong partnership with Fort Huachuca to assist active-duty members and veterans and the two new Baccalaureate programs.

Fort Huachuca Quarterly Installation Retirement Ceremony

Ciscomani, Bost attended Fort Huachuca Quarterly Installation Retirement Ceremony to celebrate military retirees. 

Background:

In his freshman term in office, Congressman Ciscomani, who is a member of the House Committee on Veterans’ Affairs, has introduced ten pieces of veterans-focused legislation. These include: 

The VET-TEC Authorization Act of 2023 (H.R. 1669) which extends a popular program that covers costs for veterans seeking job training in high-tech industries. 
The VETS Opportunity Act (H.R. 7896), to expand veterans’ access to educational opportunities for in-demand skilled trade and vocational programs.

The VET MEDS Act (H.R. 5470) to extend the VA’s authority to allow certain healthcare providers to conduct exams across state lines.   
The Veterans’ Appeals Backlog Improvement Act (H.R. 1378) to reduce wait times for veterans seeking disability claims and ensure they are processed faster.  
The Prioritizing Veterans’ Survivors Act (H.R. 7100) to move the Office of Survivors Assistance (OSA) back within the Office of the VA Secretary. This move ensures that OSA has direct access to the Secretary to fix policy and program-wide problems.
The Rural Veterans’ Benefit Improvement Act (H.R. 8881) to ensure veterans have permanent, cross-state access to certified healthcare providers for disability claim exams.  
The Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act (H.R. 8371), which will be the flagship veterans’ package for the 118th Congress. It includes a number of bipartisan and bicameral proposals to reform and improve the delivery of healthcare, benefits, and services at the Department of Veterans Affairs (VA) for veterans, their families, and their survivors. This includes your effort to reauthorize the VET-TEC program.   
The Expanding Access for Online Veterans Student Act (H.R. 5702), which increased housing stipends for student veterans attending classes online.   
The Veteran Exam Expansion Act (H.R. 5938), which expands the pool of providers eligible to cross state lines when conducting disability exams for veterans.  
The Coordinating Care for Senior Veterans and Wounded Warriors Act (H.R. 9399) to improve healthcare coordination and management for veterans who receive services through Medicare and the Department of Veteran Affairs (VA).

Through casework, the Congressman’s team has returned over $5 million to constituents, including $1.9 million to the veterans of Arizona’s 6th Congressional District. This is money and benefits that were owed to constituents but were stuck in the bureaucracy of a federal agency.

###

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Senator Baldwin Leads Senate Resolution Designating October 23 National Marine Sanctuary Day

US Senate News:

Source: United States Senator for Wisconsin Tammy Baldwin

WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) introduced a Senate Resolution designating October 23, 2024 as “National Marine Sanctuary Day.” The resolution highlights the role of national marine sanctuaries in increasing access to nature, protecting biodiversity, and boosting economic activity for coastal communities.

“Wisconsin Shipwreck Coast National Marine Sanctuary is an engine for tourism and world-class research along Lake Michigan, stimulating our local economies and pioneering breakthroughs for our Great Lakes,” said Senator Baldwin. “I’m proud to have fought for and delivered a national marine sanctuary for Wisconsin, and will continue to fight to protect our nation’s natural resources and ensure generations to come can enjoy our coastlines.”

Senator Baldwin has fought to support national marine sanctuaries, successfully leading the charge to bring a National Marine Sanctuary to Wisconsin in 2021. In October 2013, Senator Baldwin urged the National Oceanic and Atmospheric Administration (NOAA) to re-open the public nomination process for marine sanctuaries for the first time in 20 years. After the Administration announced in June 2014 that Americans would be given the opportunity to nominate nationally significant marine and Great Lakes areas as national marine sanctuaries, Wisconsin’s Lake Michigan proposal was submitted and Senator Baldwin called on NOAA to support their efforts. The Wisconsin Shipwreck Coast National Marine Sanctuary was officially designated in 2021.

As a member of the Senate Appropriations Committee, Senator Baldwin has continued to advocate for Wisconsin’s Great Lakes by supporting robust funding for the National Marine Sanctuaries Program and by requesting federal funding for the Wisconsin Shipwreck Coast National Marine Sanctuary Foundation.

The resolution is co-sponsored by Senators Richard Blumenthal (D-CT), Maria Cantwell (D-WA), Ben Cardin (D-MD), Martin Heinrich (D-NM), Mazie Hirono (D-HI), Patty Murray (D-WA), Alex Padilla (D-CA), Brian Schatz (D-HI), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), Peter Welch (D-VT), Cory Booker (D-NJ), and Gary Peters (D-MI).

The resolution is supported by Alabama Coastal Foundation, Azul, California Academy of Sciences, Carolina Ocean Alliance, Creation Justice Ministries, EarthEcho International, The Florida Aquarium, Friends of the Mariana Trench, Global Rewilding Alliance, Greater Farallones Association, GreenLatinos, Guy Harvey Foundation, Healthy Ocean Coalition, Inland Ocean Coalition, Minorities in Shark Sciences, Monterey Bay Aquarium, National Aquarium, National Ocean Protection Coalition, National Wildlife Federation, Next 100 Coalition, Ocean Defense Initiative, Point Defiance Zoo & Aquarium + Northwest Trek Wildlife Park, Shark Stewards, Shedd Aquarium, South Carolina Aquarium, Surfrider Foundation, Sustainable Ocean Alliance, The Ocean Project, WILDCOAST, Wildlife Conservation Society, and World Ocean Day.

“National marine sanctuaries are special places in America’s waters where people show up as part of the solution to steward our blue planet,” said Joel R. Johnson, President and CEO of the National Marine Sanctuary Foundation. “From the Great Lakes to the Gulf of Mexico, the Chesapeake Bay to Pacific Islands, national marine sanctuaries connect us with wildlife and our shared history making us feel like we are part of something much greater than ourselves. Our continued support for these treasured waters is more essential than ever and makes a positive impact for present and future generations.”

“The conservation of our special ocean and Great Lakes places is vital for the species that depend on them, the communities that rely on them, and the future generations that dream about them,” said Ayana Melvan, Director of Conservation Action of the Aquarium Conservation Partnership.

“The ACP and its members strive to celebrate the science and stories of our National Marine Sanctuary System at every opportunity. We’re proud to stand behind the Senator’s resolution to recognize the 600,000 sq. miles and growing of marine and Great Lake waters that truly make America beautiful,” said Kim McIntyre, Executive Director of the Aquarium Conservation Partnership.

A full version of this resolution is available here and below.

Designating October 23, 2024, as “National Marine Sanctuary Day”.

Whereas, on October 23, 1972, the Marine Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 1401 et seq.) became law and ushered in a new era of ocean conservation;

Whereas the National Marine Sanctuary System is a nationwide network that conserves spectacular oceans, coasts, and Great Lakes;

Whereas communities across the United States can nominate their most treasured marine and Great Lakes waters for consideration as national marine sanctuaries;

Whereas national marine sanctuaries protect biodiversity, safeguard extraordinary seascapes, historic shipwrecks, and sacred cultural places, and provide abundant recreational opportunities;

Whereas national marine sanctuaries seek opportunities to partner with indigenous governments and communities to achieve shared conservation goals and to support the care-taking of ecological resources and cultural sites of indigenous peoples;

Whereas national marine sanctuaries protect vital habitats for countless species of fish and wildlife, including many species that are listed as threatened or endangered;

Whereas the conservation of marine ecosystems is vital for healthy oceans, coasts, and Great Lakes, for addressing climate change, and for sustaining productive coastal economies;

Whereas the National Marine Sanctuary Foundation and its partners work to protect and nurture the growth of the National Marine Sanctuary System;

Whereas national marine sanctuaries increase access to nature for all, support coastal communities, and generate billions of dollars annually in local communities by providing jobs in the United States, supporting commercial, Tribal, and recreational fisheries, bolstering tourism and recreation, engaging businesses in stewardship, and driving the growth of the blue economy;

Whereas national marine sanctuaries connect people and communities through science, education, United States history, recreation, and stewardship and inspire community-based solutions that help individuals understand and protect the spectacular underwater habitats, wildlife, archaeological resources, and cultural seascapes of the United States;

Whereas national marine sanctuaries are living laboratories that enable cooperative science and research that improves resource management and advances innovative public-private partnerships;

Whereas national marine sanctuaries can help make oceans, coasts, and Great Lakes more resilient by protecting ecosystems that sequester carbon, by safeguarding coastal communities from flooding and storms, and by protecting biodiversity;

Whereas the United States is a historic maritime Nation, and oceans, coasts, and Great Lakes are central to the way of life of the people of the United States;

Whereas engaging communities as stewards of these protected waters makes national marine sanctuaries unique and provides a comprehensive, ecosystem-based, highly participatory approach to managing and conserving marine and Great Lakes environments for current and future generations; and

Whereas October 23, 2024, is recognized as “National Marine Sanctuary Day” to increase awareness about the importance of the National Marine Sanctuary System and healthy oceans, coasts, and Great Lakes and to celebrate the many recreational opportunities available for the enjoyment of this network of protected waters: Now, therefore, be it

Resolved, That the Senate—

(1) designates October 23, 2024, as “National Marine Sanctuary Day”;

(2) encourages the people of the United States and the world to responsibly visit, experience, recreate in, and support the treasured national marine sanctuaries of the United States;

(3) acknowledges the importance of national marine sanctuaries in supporting community resilience, protecting biodiversity, and increasing access to nature;

(4) recognizes the importance of national marine sanctuaries for their recreational opportunities and contributions to local and national economies across the United States;

(5) celebrates the ability of the National Marine Sanctuary System to protect nationally significant places in oceans, coasts, and Great Lakes;

(6) calls on the National Oceanic and Atmospheric Administration to partner with communities and to complete designations of new national marine sanctuaries; and

(7) encourages Federal agencies to balance priorities and work together to support the priorities of the Marine Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 1401 et seq.).

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: QUIGLEY, SORENSEN, DURBIN, DUCKWORTH, ANNOUNCE $33.5 MILLION IN FEDERAL FUNDING FOR PEORIA AND CHICAGO AIRPORTS

Source: United States House of Representatives – Representative Mike Quigley (IL-05)

Today, U.S. Representatives Mike Quigley (D-IL-05), Eric Sorensen (D-IL-17) and U.S. Senators Dick Durbin (D-IL), and Tammy Duckworth (D-IL) announced $33,510,000 in federal funding from the Department of Transportation’s Airport Terminal Program.

With today’s announced funding, General Wayne A. Downing Peoria International Airport will receive $13,510,000 for the replacement of their air traffic control tower, and Chicago O’Hare International Airport will receive $20,000,000 for an expansion to Terminal 5.

“Throughout my career, I have worked tirelessly to ensure that travelers receive the best and most efficient service possible at O’Hare. Today’s funding announcement will build on the progress we have already made. This expansion will benefit not only our constituents but also travelers across the country, while boosting our economy. When I voted for the Bipartisan Infrastructure Law, I did so knowing it would bring vital investments like these and create lasting benefits across our state. Together, we are paving the way for a brighter future and a stronger transportation network for everyone,” said Quigley.

“By improving and modernizing airport infrastructure, we are laying the foundation for increased connectivity and reliability,” said Durbin. “Today’s announced federal funding for upgrading our airports across Illinois will enhance the travel experience for passengers and promote economic growth. I will continue working with Senator Duckworth and our Congressional colleagues to ensure Illinois airports have the necessary federal resources to keep passengers safe and connected.”

“Illinois’s airports are critical economic engines for our state,” Duckworth said. “This funding will help improve and modernize O’Hare and Downing International Airports and, after years of neglecting our nation’s infrastructure, I’m proud every day to see the Bipartisan Infrastructure Law at work rebuilding infrastructure all across our country. I will continue to work alongside Senator Durbin and the Illinois delegation to make traveling safer and more reliable for all passengers while ensuring that our communities are receiving the much-needed federal resources they deserve.”

“This important funding coming to Peoria International Airport is about connecting my neighbors in Central Illinois to the world. The new air traffic control tower will allow controllers to see the end points of both runways and all taxiways, making it safer for travelers and airport staff. I am grateful to Senators Durbin and Duckworth for their support of this project as we continue our work to keep air travel safe and open Peoria to new destinations,” said Sorensen.

Durbin and Duckworth previously worked to secure a provision in the Bipartisan Infrastructure Law (BIL) to make Peoria’s airport-owned air traffic control tower (ATCT) eligible for federal funding. Following the enactment of the Bipartisan Infrastructure Law, the ATCT has received $29 million in federal funding across two previous grants.

Durbin and Duckworth helped secure two previous BIL Airport Terminal Program grants for Chicago O’Hare International Airport for the Terminal 3 Project totaling $90 million, a 2023 grant of $50 million and a 2024 grant of $40 million.

MIL OSI USA News –

January 25, 2025

MIL-OSI: Origin Bancorp, Inc. Reports Earnings For Third Quarter 2024

Source: GlobeNewswire (MIL-OSI)

RUSTON, La., Oct. 23, 2024 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $18.6 million, or $0.60 diluted earnings per share for the quarter ended September 30, 2024, compared to net income of $21.0 million, or $0.67 diluted earnings per share, for the quarter ended June 30, 2024. Pre-tax, pre-provision (“PTPP”)⁽¹⁾ earnings was $28.3 million for the quarter ended September 30, 2024, compared to $32.0 million for the linked quarter.

“I am pleased with the balance sheet trends we showed in the third quarter,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “I am confident these trends will continue and our bankers will capitalize on opportunities throughout our markets.”

⁽¹⁾ PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

Financial Highlights

Total loans held for investment (“LHFI”) were $7.96 billion at both September 30, 2024, and June 30, 2024. LHFI, excluding mortgage warehouse lines of credit (“MW LOC”), were $7.46 billion at September 30, 2024, reflecting an increase of $8.9 million, or 0.12%, compared to June 30, 2024.
Noninterest-bearing deposits were $1.89 billion at September 30, 2024, reflecting an increase of $27.1 million, or 1.5%, compared to June 30, 2024.
Net interest income was $74.8 million for the quarter ended September 30, 2024, reflecting an increase of $914,000, or 1.2%, compared to the linked quarter.
Our book value per common share was $36.76 as of September 30, 2024, reflecting an increase of $1.53, or 4.3%, compared to June 30, 2024. Tangible book value per common share⁽¹⁾ was $31.37 at September 30, 2024, reflecting an increase of $1.60, or 5.4%, compared to June 30, 2024.
Stockholders’ equity was $1.15 billion at September 30, 2024, reflecting an increase of $49.8 million, or 4.5%, compared to June 30, 2024.
At September 30, 2024, and June 30, 2024, the ratio of Company-level common equity Tier 1 capital to risk-weighted assets was 12.46%, and 12.15%, respectively, the Tier 1 leverage ratio was 10.93% and 10.70%, respectively, and the total capital ratio was 15.45% and 15.16%, respectively. The ratio of tangible common equity to tangible assets⁽¹⁾ was 9.98% at September 30, 2024, compared to 9.47% at June 30, 2024.

⁽¹⁾ Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures. Please see the last few pages of this document for a reconciliation of these alternative financial measures to their most directly comparable GAAP measures.

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

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended September 30, 2024, was $74.8 million, an increase of $914,000, or 1.2%, compared to the quarter ended June 30, 2024, $813,000 of which was driven by one additional day in the current quarter. Higher interest rates drove a net increase of $147,000 in net interest income, which was reflected in a $1.2 million increase in interest income earned on interest-earnings assets offset by a $1.1 million increase in interest expense paid on interest-bearing liabilities.

Higher interest rates on LHFI drove a $2.0 million increase in the yield for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, $1.5 million of which was driven by real estate-based loans. The average rate on LHFI increased to 6.67% for the quarter ended September 30, 2024, compared to 6.58% for the quarter ended June 30, 2024. Higher interest rates on savings and interest-bearing transaction accounts drove a $1.1 million increase in interest expense, compared to the quarter ended June 30, 2024. The average rate on interest-bearing deposits increased to 4.01% for the quarter ended September 30, 2024, compared to 3.95% for the quarter ended June 30, 2024.

The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. The federal funds target rate range was reduced by 50 basis points on September 18, 2024, to a range of 4.75% to 5.00%, the first rate reduction since early 2020.

The NIM-FTE was 3.18% for the quarter ended September 30, 2024, representing a one- and a four-basis-point increase compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended September 30, 2024, was 6.09%, an increase of five and 40 basis points compared to the linked quarter and the prior year same quarter, respectively. The average rate paid on total interest-bearing liabilities for the quarter ended September 30, 2024, was 4.04%, representing a six- and 45-basis point increase compared to the linked quarter and the prior year same quarter, respectively.

As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, we reversed $1.2 million of accrued loan interest during the quarter ended June 30, 2024, due to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. This reversal of accrued loan interest income negatively impacted the fully tax equivalent net interest margin (“NIM-FTE”) by five basis points for the linked quarter. Had we not experienced the reversal of the $1.2 million of accrued interest income during the quarter ended June 30, 2024, our NIM-FTE would have been 3.22% for the linked quarter, and we would have experienced a four-basis point decrease in our current NIM-FTE compared to the linked quarter. There was no equivalent interest income reversal during the current quarter and these loans remain on non-accrual.

Credit Quality

The table below includes key credit quality information:

	At and For the Three Months Ended									Change			% Change
(Dollars in thousands, unaudited)	September 30, 2024			June 30, 2024			September 30, 2023			Linked Quarter			Linked Quarter
Past due LHFI	$	38,838		$	66,276		$	20,347		$	(27,438	)	(41.4)%
Allowance for loan credit losses (“ALCL”)		95,989			100,865			95,177			(4,876	)	(4.8	)
Classified loans		107,486			118,254			64,021			(10,768	)	(9.1	)
Total nonperforming LHFI		64,273			75,812			31,608			(11,539	)	(15.2	)
Provision for credit losses		4,603			5,231			3,515			(628	)	(12.0	)
Net charge-offs		9,520			2,946			2,686			6,574		223.2
Credit quality ratios⁽¹⁾:
ALCL to nonperforming LHFI		149.35	%		133.05	%		301.12	%		16.30	%	N/A
ALCL to total LHFI		1.21			1.27			1.26			(0.06	)	N/A
ALCL to total LHFI, adjusted⁽²⁾		1.28			1.34			1.30			(0.06	)	N/A
Classified loans to total LHFI		1.35			1.49			0.85			(0.14	)	N/A
Nonperforming LHFI to LHFI		0.81			0.95			0.42			(0.14	)	N/A
Net charge-offs to total average LHFI (annualized)		0.48			0.15			0.14			0.33		N/A

___________________________

⁽¹⁾	Please see the Loan Data schedule at the back of this document for additional information.
⁽²⁾	The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.

As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, our credit metrics were negatively impacted by certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. Our investigation of this activity remains ongoing and is not final; however, as a result of a forbearance agreement with one of our impacted customer relationships, our past due LHFI declined $26.4 million when compared to the quarter ended June 30, 2024. There was no material change in the level of our nonperforming or classified LHFI principal balances between the current quarter and the linked quarter as a result of the questioned activity. We continue to work with an outside forensic accounting firm to confirm the bank’s identification and reconciliation of the activity, targeting a conclusion of this analysis by the end of this year. At this time, we believe that any ultimate loss arising from the situation will not be material to our financial position.

Past due LHFI were $38.8 million for the quarter ended September 30, 2024, compared to $66.3 million at June 30, 2024. Of the $27.4 million decrease, $26.4 million were impacted by or related to the questioned activity. The remaining net decrease in past due LHFI was primarily due to charge-offs or payoffs in commercial and industrial past due loans during the quarter ended September 30, 2024.

Nonperforming LHFI decreased $11.5 million for the quarter reflecting a decrease in the percentage of nonperforming LHFI to LHFI to 0.81% compared to 0.95% for the linked quarter. The decrease in nonperforming loans was primarily driven by three commercial and industrial loan relationships totaling $14.6 million at June 30, 2024, $10.4 million of which were charged-off and $4.2 million were paid down during the current quarter.

Classified loans decreased $10.8 million to $107.5 million at September 30, 2024, reflecting 1.35% as a percentage of total LHFI, down 14 basis points from the linked quarter. The decrease in classified loans was primarily driven by the same three commercial and industrial loan relationships mentioned in the nonperforming loan paragraph directly above.

Noninterest Income

Noninterest income for the quarter ended September 30, 2024, was $16.0 million, a decrease of $6.5 million, or 28.8%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $5.2 million, $725,000 and $621,000 in the change in fair value of equity investments, mortgage banking revenue and other income, respectively.

The decrease in change in fair value of equity investments was due to a $5.2 million positive valuation adjustment on a non-marketable equity security recognized during the linked quarter with no comparable amount recognized during the current quarter.

The decrease in mortgage banking revenue was primarily due to an $833,000 combined decrease in the pipeline and interest rate lock commitment fair values during the current quarter compared to the linked quarter.

The decrease in other income was primarily due to an $818,000 gain on sale of bank property recognized in the linked quarter with no comparable amount recognized in the current quarter.

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2024, was $62.5 million, a decrease of $1.9 million, or 2.9% from the linked quarter. The decrease was primarily driven by a decrease of $1.6 million and in other noninterest expense.

The decrease in other expenses resulted from recognizing contingent liabilities totaling approximately $1.2 million related to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market, as described previously, in the linked quarter with no comparable liability incurred in the current quarter. Also, contributing to the quarter over quarter decline was a $357,000 decrease in corporate membership fees.

Financial Condition

Loans

Total LHFI were $7.96 billion at both September 30, 2024, and June 30, 2024, and reflected an increase of $388.7 million, or 5.1%, compared to September 30, 2023.
Total LHFI, excluding MW LOC, were $7.46 billion at September 30, 2024, representing an increase of $8.9 million, or 0.1%, from June 30, 2024, and an increase of $179.8 million, or 2.5%, from September 30, 2023.
During the quarter ended September 30, 2024, compared to the linked quarter, we experienced declines in construction/land/land development loans and MW LOC of $25.8 million and $11.3 million, respectively, partially offset by growth in multi-family real estate loans of $36.1 million.

Securities

Total securities were $1.18 billion at both September 30, 2024, and June 30, 2024, and reflected a decrease of $129.8 million, or 9.9%, compared to September 30, 2023.
Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was $94.2 million at September 30, 2024, an improvement of $32.9 million, or 25.9%, from the linked quarter.
The weighted average effective duration for the total securities portfolio was 4.21 years as of September 30, 2024, compared to 4.28 years as of June 30, 2024.

Deposits

Total deposits at September 30, 2024, were $8.49 billion, a decrease of $24.3 million, or 0.3%, compared to the linked quarter, and represented an increase of $112.1 million, or 1.3%, from September 30, 2023. The decrease in the current quarter compared to the linked quarter was primarily due to a decrease of $205.2 million in brokered (which includes both brokered time and brokered interest-bearing demand) deposits. The decrease in brokered deposits was primarily replaced with customer deposits.
Excluding brokered deposits, total deposit increased $180.9 million, or 2.3%, to $8.05 billion, primarily due to increases of $87.0 million, $64.4 million and $27.1 million in money market deposits, interest-bearing demand deposits and noninterest-bearing demand deposits, respectively.
At September 30, 2024, noninterest-bearing deposits as a percentage of total deposits were 22.3%, compared to 21.9% and 24.0% at June 30, 2024, and September 30, 2023, respectively. Excluding brokered deposits, noninterest-bearing deposits as a percentage of total deposits were 23.5%, compared to 23.7% and 26.1% at June 30, 2024, and September 30, 2023, respectively.

Borrowings

FHLB advances and other borrowings at September 30, 2024, were $30.4 million, a decrease of $10.3 million, or 25.3%, compared to the linked quarter and represented an increase of $18.2 million, or 149.3%, from September 30, 2023.

Stockholders’ Equity

Stockholders’ equity was $1.15 billion at September 30, 2024, an increase of $49.8 million, or 4.5%, compared to $1.10 billion at June 30, 2024, and an increase of $146.7 million, or 14.7%, compared to September 30, 2023.
The increase in stockholders’ equity from the linked quarter is primarily due to a decrease in accumulated other comprehensive loss of $32.9 million and net income of $18.6 million, partially offset by dividends declared of $4.8 million during the current quarter.

Conference Call

Origin will hold a conference call to discuss its third quarter 2024 results on Thursday, October 24, 2024, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 84865 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ324.

If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

About Origin

Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 60 locations from Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

Non-GAAP Financial Measures

Origin reports its results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin’s results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, adjusted NIM-FTE, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, and core efficiency ratio.

Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high-profile bank failures, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; changes in benchmark interest rates and the resulting impacts on net interest income; deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of prolonged elevated interest rates on our financial projections, models and guidance); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; significant turbulence or a disruption in the capital or financial markets and the effect of market disruption and interest rate volatility on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; a potential U.S. federal government shutdown and the resulting impacts; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors (including Origin employees) which Origin may not be able to prevent, detect or mitigate, system failures, cybersecurity threats or security breaches and the cost of defending against them; Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

Contact:

Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank

Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank

Origin Bancorp, Inc.
Selected Quarterly Financial Data
(Unaudited)

	Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

Income statement and share amounts	(Dollars in thousands, except per share amounts)
Net interest income	$	74,804		$	73,890		$	73,323		$	72,989		$	74,130
Provision for credit losses		4,603			5,231			3,012			2,735			3,515
Noninterest income		15,989			22,465			17,255			8,196			18,119
Noninterest expense		62,521			64,388			58,707			60,906			58,663
Income before income tax expense		23,669			26,736			28,859			17,544			30,071
Income tax expense		5,068			5,747			6,227			4,119			5,758
Net income	$	18,601		$	20,989		$	22,632		$	13,425		$	24,313
PTPP earnings⁽¹⁾	$	28,272		$	31,967		$	31,871		$	20,279		$	33,586
Basic earnings per common share		0.60			0.68			0.73			0.43			0.79
Diluted earnings per common share		0.60			0.67			0.73			0.43			0.79
Dividends declared per common share		0.15			0.15			0.15			0.15			0.15
Weighted average common shares outstanding – basic		31,130,293			31,042,527			30,981,333			30,898,941			30,856,649
Weighted average common shares outstanding – diluted		31,239,877			31,131,829			31,078,910			30,995,354			30,943,860

Balance sheet data
Total LHFI	$	7,956,790		$	7,959,171		$	7,900,027		$	7,660,944		$	7,568,063
Total LHFI excluding MW LOC		7,461,602			7,452,666			7,499,032			7,330,978			7,281,770
Total assets		9,965,986			9,947,182			9,892,379			9,722,584			9,733,303
Total deposits		8,486,568			8,510,842			8,505,464			8,251,125			8,374,488
Total stockholders’ equity		1,145,673			1,095,894			1,078,853			1,062,905			998,945

Performance metrics and capital ratios
Yield on LHFI		6.67	%		6.58	%		6.58	%		6.46	%		6.35	%
Yield on interest-earnings assets		6.09			6.04			5.99			5.86			5.69
Cost of interest-bearing deposits		4.01			3.95			3.85			3.71			3.47
Cost of total deposits		3.14			3.08			2.99			2.84			2.61
NIM – fully tax equivalent (“FTE”)		3.18			3.17			3.19			3.19			3.14
Return on average assets (annualized) (“ROAA”)		0.74			0.84			0.92			0.55			0.96
PTPP ROAA (annualized)⁽¹⁾		1.13			1.28			1.30			0.82			1.33
Return on average stockholders’ equity (annualized) (“ROAE”)		6.57			7.79			8.57			5.26			9.52
Book value per common share	$	36.76		$	35.23		$	34.79		$	34.30		$	32.32
Tangible book value per common share⁽¹⁾		31.37			29.77			29.24			28.68			26.78
Adjusted tangible book value per common share⁽¹⁾		34.39			33.86			33.27			32.59			32.37
Return on average tangible common equity (annualized) (“ROATCE”)⁽¹⁾		7.74	%		9.25	%		10.24	%		6.36	%		11.48	%
Efficiency ratio⁽²⁾		68.86			66.82			64.81			75.02			63.59
Core efficiency ratio⁽¹⁾		67.48			65.55			65.24			70.55			60.49
Common equity tier 1 to risk-weighted assets⁽³⁾		12.46			12.15			11.97			11.83			11.46
Tier 1 capital to risk-weighted assets⁽³⁾		12.64			12.33			12.15			12.01			11.64
Total capital to risk-weighted assets⁽³⁾		15.45			15.16			14.98			15.02			14.61
Tier 1 leverage ratio⁽³⁾		10.93			10.70			10.66			10.50			10.00

__________________________

⁽¹⁾	PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
⁽²⁾	Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
⁽³⁾	September 30, 2024, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.

Origin Bancorp, Inc.
Selected Year-To-Date Financial Data
(Unaudited)

	Nine Months Ended September 30,
(Dollars in thousands, except per share amounts)		2024			2023

Income statement and share amounts
Net interest income	$	222,017		$	226,568
Provision for credit losses		12,846			14,018
Noninterest income		55,709			50,139
Noninterest expense		185,616			174,310
Income before income tax expense		79,264			88,379
Income tax expense		17,042			18,004
Net income	$	62,222		$	70,375
PTPP earnings⁽¹⁾	$	92,110		$	102,397
Basic earnings per common share		2.00			2.29
Diluted earnings per common share		2.00			2.28
Dividends declared per common share		0.45			0.45
Weighted average common shares outstanding – basic		31,051,672			30,797,399
Weighted average common shares outstanding – diluted		31,160,867			30,903,222

Performance metrics
Yield on LHFI		6.61	%		6.19	%
Yield on interest-earning assets		6.04			5.50
Cost of interest-bearing deposits		3.94			3.03
Cost of total deposits		3.07			2.22
NIM-FTE		3.18			3.24
Adjusted NIM-FTE⁽²⁾		3.18			3.21
ROAA (annualized)		0.84			0.94
PTPP ROAA (annualized)⁽¹⁾		1.24			1.37
ROAE (annualized)		7.62			9.45
ROATCE (annualized)⁽¹⁾		9.04			11.47
Efficiency ratio⁽³⁾		66.83			62.99
Core efficiency ratio⁽¹⁾		66.09			59.94

____________________________

⁽¹⁾	PTPP earnings, PTPP ROAA, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
⁽²⁾	Adjusted NIM-FTE is a non-GAAP financial measure and is calculated for nine months ended September 30, 2024, by removing the $20,000 net purchase accounting amortization from net interest income. And, for the nine months ended September 30, 2023, by removing the $2.2 million net purchase accounting accretion from net interest income.
⁽³⁾	Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.

Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
(Unaudited)

	Three Months Ended
	September 30, 2024		June 30, 2024		March 31, 2024			December 31, 2023			September 30, 2023

Interest and dividend income	(Dollars in thousands, except per share amounts)
Interest and fees on loans	$	133,195	$	129,879	$	127,186		$	123,673		$	121,204
Investment securities-taxable		6,536		6,606		6,849			7,024			8,194
Investment securities-nontaxable		905		893		910			1,124			1,281
Interest and dividend income on assets held in other financial institutions		3,621		4,416		3,756			3,664			4,772
Total interest and dividend income		144,257		141,794		138,701			135,485			135,451
Interest expense
Interest-bearing deposits		67,051		65,469		62,842			59,771			55,599
FHLB advances and other borrowings		482		514		518			220			3,207
Subordinated indebtedness		1,920		1,921		2,018			2,505			2,515
Total interest expense		69,453		67,904		65,378			62,496			61,321
Net interest income		74,804		73,890		73,323			72,989			74,130
Provision for credit losses		4,603		5,231		3,012			2,735			3,515
Net interest income after provision for credit losses		70,201		68,659		70,311			70,254			70,615
Noninterest income
Insurance commission and fee income		6,928		6,665		7,725			5,446			6,443
Service charges and fees		4,664		4,862		4,688			4,889			4,621
Other fee income		2,114		2,404		2,247			2,118			2,006
Mortgage banking revenue (loss)		1,153		1,878		2,398			(719	)		892
Swap fee income		106		44		57			196			366
Gain (loss) on sales of securities, net		221		—		(403	)		(4,606	)		(7,173	)
Change in fair value of equity investments		—		5,188		—			—			10,096
Other income		803		1,424		543			872			868
Total noninterest income		15,989		22,465		17,255			8,196			18,119
Noninterest expense
Salaries and employee benefits		38,491		38,109		35,818			35,931			34,624
Occupancy and equipment, net		6,298		7,009		6,645			6,912			6,790
Data processing		3,470		3,468		3,145			3,062			2,775
Office and operations		2,984		3,072		2,502			2,947			2,868
Intangible asset amortization		1,905		2,137		2,137			2,259			2,264
Regulatory assessments		1,791		1,842		1,734			1,860			1,913
Advertising and marketing		1,449		1,328		1,444			1,690			1,371
Professional services		2,012		1,303		1,231			1,440			1,409
Loan-related expenses		751		1,077		905			1,094			1,220
Electronic banking		1,308		1,238		1,239			1,103			1,384
Franchise tax expense		721		815		477			942			520
Other expenses		1,341		2,990		1,430			1,666			1,525
Total noninterest expense		62,521		64,388		58,707			60,906			58,663
Income before income tax expense		23,669		26,736		28,859			17,544			30,071
Income tax expense		5,068		5,747		6,227			4,119			5,758
Net income	$	18,601	$	20,989	$	22,632		$	13,425		$	24,313
Basic earnings per common share	$	0.60	$	0.68	$	0.73		$	0.43		$	0.79
Diluted earnings per common share		0.60		0.67		0.73			0.43			0.79

Origin Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)

(Dollars in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets
Cash and due from banks	$	159,337		$	137,615		$	98,147		$	127,278		$	141,705
Interest-bearing deposits in banks		161,854			150,435			193,365			153,163			163,573
Total cash and cash equivalents		321,191			288,050			291,512			280,441			305,278
Securities:
AFS		1,160,965			1,160,048			1,190,922			1,253,631			1,290,839
Held to maturity, net of allowance for credit losses		11,096			11,616			11,651			11,615			10,790
Securities carried at fair value through income		6,533			6,499			6,755			6,808			6,772
Total securities		1,178,594			1,178,163			1,209,328			1,272,054			1,308,401
Non-marketable equity securities held in other financial institutions		67,068			64,010			53,870			55,190			63,842
Loans held for sale		7,631			18,291			14,975			16,852			14,944
Loans		7,956,790			7,959,171			7,900,027			7,660,944			7,568,063
Less: ALCL		95,989			100,865			98,375			96,868			95,177
Loans, net of ALCL		7,860,801			7,858,306			7,801,652			7,564,076			7,472,886
Premises and equipment, net		126,751			121,562			120,931			118,978			111,700
Mortgage servicing rights		—			—			—			15,637			19,189
Cash surrender value of bank-owned life insurance		40,602			40,365			40,134			39,905			39,688
Goodwill		128,679			128,679			128,679			128,679			128,679
Other intangible assets, net		39,272			41,177			43,314			45,452			42,460
Accrued interest receivable and other assets		195,397			208,579			187,984			185,320			226,236
Total assets	$	9,965,986		$	9,947,182		$	9,892,379		$	9,722,584		$	9,733,303
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	1,893,767		$	1,866,622		$	1,887,066		$	1,919,638		$	2,008,671
Interest-bearing deposits excluding brokered interest-bearing deposits		5,137,940			4,984,817			4,990,632			4,918,597			4,728,263
Time deposits		1,023,252			1,022,589			1,030,656			967,901			968,352
Brokered deposits		431,609			636,814			597,110			444,989			669,202
Total deposits		8,486,568			8,510,842			8,505,464			8,251,125			8,374,488
FHLB advances and other borrowings		30,446			40,737			13,158			83,598			12,213
Subordinated indebtedness		159,861			159,779			160,684			194,279			196,825
Accrued expenses and other liabilities		143,438			139,930			134,220			130,677			150,832
Total liabilities		8,820,313			8,851,288			8,813,526			8,659,679			8,734,358
Stockholders’ equity:
Common stock		155,837			155,543			155,057			154,931			154,534
Additional paid-in capital		535,662			532,950			530,380			528,578			525,434
Retained earnings		548,419			534,585			518,325			500,419			491,706
Accumulated other comprehensive loss		(94,245	)		(127,184	)		(124,909	)		(121,023	)		(172,729	)
Total stockholders’ equity		1,145,673			1,095,894			1,078,853			1,062,905			998,945
Total liabilities and stockholders’ equity	$	9,965,986		$	9,947,182		$	9,892,379		$	9,722,584		$	9,733,303

Origin Bancorp, Inc.
Loan Data
(Unaudited)

	At and For the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

LHFI	(Dollars in thousands)
Owner occupied commercial real estate	$	991,671		$	959,850		$	948,624		$	953,822		$	932,109
Non-owner occupied commercial real estate		1,533,093			1,563,152			1,472,164			1,488,912			1,503,782
Construction/land/land development		991,545			1,017,389			1,168,597			1,070,225			1,076,756
Residential real estate – single family		1,414,013			1,421,027			1,373,532			1,373,696			1,338,382
Multi-family real estate		434,317			398,202			359,765			361,239			349,787
Total real estate loans		5,364,639			5,359,620			5,322,682			5,247,894			5,200,816
Commercial and industrial		2,074,037			2,070,947			2,154,151			2,059,460			2,058,073
MW LOC		495,188			506,505			400,995			329,966			286,293
Consumer		22,926			22,099			22,199			23,624			22,881
Total LHFI		7,956,790			7,959,171			7,900,027			7,660,944			7,568,063
Less: ALCL		95,989			100,865			98,375			96,868			95,177
LHFI, net	$	7,860,801		$	7,858,306		$	7,801,652		$	7,564,076		$	7,472,886

Nonperforming assets⁽¹⁾
Nonperforming LHFI
Commercial real estate	$	2,776		$	2,196		$	4,474		$	786		$	942
Construction/land/land development		26,291			26,336			383			305			235
Residential real estate⁽²⁾		14,313			13,493			14,918			13,037			13,236
Commercial and industrial		20,486			33,608			20,560			15,897			17,072
Consumer		407			179			104			90			123
Total nonperforming loans		64,273			75,812			40,439			30,115			31,608
Repossessed assets		6,043			6,827			3,935			3,929			3,939
Total nonperforming assets	$	70,316		$	82,639		$	44,374		$	34,044		$	35,547
Classified assets	$	113,529		$	125,081		$	88,152		$	84,474		$	67,960
Past due LHFI⁽³⁾		38,838			66,276			32,835			26,043			20,347

Allowance for loan credit losses
Balance at beginning of period	$	100,865		$	98,375		$	96,868		$	95,177		$	94,353
Provision for loan credit losses		4,644			5,436			4,089			3,582			3,510
Loans charged off		11,226			3,706			6,683			3,803			3,202
Loan recoveries		1,706			760			4,101			1,912			516
Net charge-offs		9,520			2,946			2,582			1,891			2,686
Balance at end of period	$	95,989		$	100,865		$	98,375		$	96,868		$	95,177

Credit quality ratios
Total nonperforming assets to total assets		0.71	%		0.83	%		0.45	%		0.35	%		0.37	%
Nonperforming LHFI to LHFI		0.81			0.95			0.51			0.39			0.42
Past due LHFI to LHFI		0.49			0.83			0.42			0.34			0.27
ALCL to nonperforming LHFI		149.35			133.05			243.27			321.66			301.12
ALCL to total LHFI		1.21			1.27			1.25			1.26			1.26
ALCL to total LHFI, adjusted⁽⁴⁾		1.28			1.34			1.30			1.31			1.30
Net charge-offs to total average LHFI (annualized)		0.48			0.15			0.13			0.10			0.14

____________________________

⁽¹⁾	Nonperforming assets consist of nonperforming/nonaccrual loans and property acquired through foreclosures or repossession, as well as bank-owned property not in use and listed for sale.
⁽²⁾	Includes multi-family real estate.
⁽³⁾	Past due LHFI are defined as loans 30 days or more past due.
⁽⁴⁾	The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.

Origin Bancorp, Inc.
Average Balances and Yields/Rates
(Unaudited)

	Three Months Ended
	September 30, 2024				June 30, 2024				September 30, 2023
	Average Balance		Yield/Rate		Average Balance		Yield/Rate		Average Balance		Yield/Rate

Assets	(Dollars in thousands)
Commercial real estate	$	2,507,566	5.93	%	$	2,497,490	5.91	%	$	2,428,969	5.73	%
Construction/land/land development		1,019,302	7.37			1,058,972	6.98			1,044,180	7.04
Residential real estate⁽¹⁾		1,824,725	5.56			1,787,829	5.48			1,663,291	5.06
Commercial and industrial (“C&I”)		2,071,984	7.96			2,128,486	7.87			2,024,675	7.62
MW LOC		484,680	7.64			430,885	7.57			376,275	7.21
Consumer		22,739	7.93			22,396	8.06			23,704	7.74
LHFI		7,930,996	6.67			7,926,058	6.58			7,561,094	6.35
Loans held for sale		14,645	6.28			14,702	6.84			11,829	5.81
Loans receivable		7,945,641	6.67			7,940,760	6.58			7,572,923	6.35
Investment securities-taxable		1,038,634	2.50			1,046,301	2.54			1,310,459	2.48
Investment securities-nontaxable		146,619	2.46			143,232	2.51			216,700	2.35
Non-marketable equity securities held in other financial institutions		66,409	2.85			56,270	6.53			58,421	6.47
Interest-bearing balances due from banks		229,224	5.46			254,627	5.53			279,383	5.42
Total interest-earning assets		9,426,527	6.09			9,441,190	6.04			9,437,886	5.69
Noninterest-earning assets		559,309				567,035				597,678
Total assets	$	9,985,836			$	10,008,225			$	10,035,564

Liabilities and Stockholders’ Equity
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	5,177,522	3.88	%	$	5,130,224	3.80	%	$	4,728,211	3.28	%
Time deposits		1,469,849	4.47			1,534,679	4.46			1,626,935	4.04
Total interest-bearing deposits		6,647,371	4.01			6,664,903	3.95			6,355,146	3.47
FHLB advances and other borrowings		40,331	4.75			41,666	4.96			230,815	5.51
Subordinated indebtedness		159,826	4.78			159,973	4.83			196,792	5.07
Total interest-bearing liabilities		6,847,528	4.04			6,866,542	3.98			6,782,753	3.59
Noninterest-bearing liabilities
Noninterest-bearing deposits		1,850,046				1,894,141				2,088,183
Other liabilities		162,565				163,273				151,716
Total liabilities		8,860,139				8,923,956				9,022,652
Stockholders’ Equity		1,125,697				1,084,269				1,012,912
Total liabilities and stockholders’ equity	$	9,985,836			$	10,008,225			$	10,035,564
Net interest spread			2.05	%			2.06	%			2.10	%
NIM			3.16				3.15				3.12
NIM-FTE⁽²⁾			3.18				3.17				3.14

____________________________

⁽¹⁾	Includes multi-family real estate.
⁽²⁾	In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.

Origin Bancorp, Inc.
Notable Items
(Unaudited)

	At and For the Three Months Ended
	September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
	$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾

	(Dollars in thousands, except per share amounts)
Notable interest income items:
Interest income reversal on relationships impacted by questioned banker activity	$	—		$	—		$	(1,206	)	$	(0.03	)	$	—		$	—		$	—		$	—		$	—		$	—
Notable provision expense items:
Provision expense related to questioned banker activity		—			—			(3,212	)		(0.08	)		—			—			—			—			—			—
Provision expense on relationships impacted by questioned banker activity		—			—			(4,131	)		(0.10	)		—			—			—			—			—			—
Notable noninterest income items:
MSR gain (impairment)		—			—			—			—			410			0.01			(1,769	)		(0.05	)		—			—
Gain (loss) on sales of securities, net		221			0.01			—			—			(403	)		(0.01	)		(4,606	)		(0.12	)		(7,173	)		(0.18	)
Gain on sub-debt repurchase		—			—			81			—			—			—			—			—			—			—
Positive valuation adjustment on non-marketable equity securities		—			—			5,188			0.13			—			—			—			—			10,096			0.26
Gain on bank property sale		—			—			800			0.02			—			—			—			—			—			—
Notable noninterest expense items:
Operating expense related to questioned banker activity		(848	)		(0.02	)		(1,452	)		(0.04	)		—			—			—			—			—			—
Total notable items	$	(627	)		(0.02	)	$	(3,932	)		(0.10	)	$	7			—		$	(6,375	)		(0.16	)	$	2,923			0.07

____________________________

⁽¹⁾	The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.

Origin Bancorp, Inc.
Notable Items – Continued
(Unaudited)

	Nine Months Ended September 30,
		2024						2023
	$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾

	(Dollars in thousands, except per share amounts)
Notable interest income items:
Interest income reversal on relationships impacted by questioned banker activity	$	(1,206	)	$	(0.03	)	$	—		$	—
Notable provision expense items:
Provision expense related to questioned banker activity		(3,212	)		(0.08	)		—			—
Provision expense on relationships impacted by questioned banker activity		(4,131	)		(0.10	)		—			—
Notable noninterest income items:
MSR gain		410			0.01			—			—
Loss on sales of securities, net		(182	)		—			(7,029	)		(0.18	)
Gain on sub-debt repurchase		81			—			471			0.01
Positive valuation adjustment on non-marketable equity securities		5,188			0.13			10,096			0.26
Gain on bank property sale		800			0.02			—			—
Notable noninterest expense items:
Operating expense related to questioned banker activity		(2,300	)		(0.06	)		—			—
Total notable items	$	(4,552	)		(0.12	)	$	3,538			0.09

____________________________

⁽¹⁾	The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.

Origin Bancorp, Inc.
Non-GAAP Financial Measures
(Unaudited)

	At and For the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

	(Dollars in thousands, except per share amounts)
Calculation of PTPP earnings:
Net income	$	18,601		$	20,989		$	22,632		$	13,425		$	24,313
Provision for credit losses		4,603			5,231			3,012			2,735			3,515
Income tax expense		5,068			5,747			6,227			4,119			5,758
PTPP earnings (non-GAAP)	$	28,272		$	31,967		$	31,871		$	20,279		$	33,586

Calculation of PTPP ROAA:
PTPP earnings	$	28,272		$	31,967		$	31,871		$	20,279		$	33,586
Divided by number of days in the quarter		92			91			91			92			92
Multiplied by the number of days in the year		366			366			366			365			365
PTPP earnings, annualized	$	112,473		$	128,571		$	128,184		$	80,455		$	133,249

Divided by total average assets	$	9,985,836		$	10,008,225		$	9,861,236		$	9,753,847		$	10,035,564
ROAA (annualized) (GAAP)		0.74	%		0.84	%		0.92	%		0.55	%		0.96	%
PTPP ROAA (annualized) (non-GAAP)		1.13			1.28			1.30			0.82			1.33

Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share:
Total assets	$	9,965,986		$	9,947,182		$	9,892,379		$	9,722,584		$	9,733,303
Goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Other intangible assets, net		(39,272	)		(41,177	)		(43,314	)		(45,452	)		(42,460	)
Tangible assets		9,798,035			9,777,326			9,720,386			9,548,453			9,562,164

Total common stockholders’ equity	$	1,145,673		$	1,095,894		$	1,078,853		$	1,062,905		$	998,945
Goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Other intangible assets, net		(39,272	)		(41,177	)		(43,314	)		(45,452	)		(42,460	)
Tangible common equity		977,722			926,038			906,860			888,774			827,806
Accumulated other comprehensive loss		94,245			127,184			124,909			121,023			172,729
Adjusted tangible common equity		1,071,967			1,053,222			1,031,769			1,009,797			1,000,535
Divided by common shares outstanding at the end of the period		31,167,410			31,108,667			31,011,304			30,986,109			30,906,716
Book value per common share (GAAP)	$	36.76		$	35.23		$	34.79		$	34.30		$	32.32
Tangible book value per common share (non-GAAP)		31.37			29.77			29.24			28.68			26.78
Adjusted tangible book value per common share (non-GAAP)		34.39			33.86			33.27			32.59			32.37
Tangible common equity to tangible assets (non-GAAP)		9.98	%		9.47	%		9.33	%		9.31	%		8.66	%

Calculation of ROATCE:
Net income	$	18,601		$	20,989		$	22,632		$	13,425		$	24,313
Divided by number of days in the quarter		92			91			91			92			92
Multiplied by number of days in the year		366			366			366			365			365
Annualized net income	$	74,000		$	84,417		$	91,025		$	53,262		$	96,459

Total average common stockholders’ equity	$	1,125,697		$	1,084,269		$	1,062,705		$	1,013,286		$	1,012,912
Average goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Average other intangible assets, net		(40,487	)		(42,563	)		(44,700	)		(46,825	)		(43,901	)
Average tangible common equity		956,531			913,027			889,326			837,782			840,332

ROATCE (non-GAAP)		7.74	%		9.25	%		10.24	%		6.36	%		11.48	%

Calculation of core efficiency ratio:
Total noninterest expense	$	62,521		$	64,388		$	58,707		$	60,906		$	58,663
Insurance and mortgage noninterest expense		(8,448	)		(8,402	)		(8,045	)		(8,581	)		(8,579	)
Adjusted total noninterest expense		54,073			55,986			50,662			52,325			50,084

Net interest income	$	74,804		$	73,890		$	73,323		$	72,989		$	74,130
Insurance and mortgage net interest income		(2,578	)		(2,407	)		(2,795	)		(2,294	)		(2,120	)
Total noninterest income		15,989			22,465			17,255			8,196			18,119
Insurance and mortgage noninterest income		(8,081	)		(8,543	)		(10,123	)		(4,727	)		(7,335	)
Adjusted total revenue		80,134			85,405			77,660			74,164			82,794

Efficiency ratio (GAAP)		68.86	%		66.82	%		64.81	%		75.02	%		63.59	%
Core efficiency ratio (non-GAAP)		67.48			65.55			65.24			70.55			60.49

Origin Bancorp, Inc.
Non-GAAP Financial Measures – Continued
(Unaudited)

	Nine Months Ended September 30,
		2024			2023

	(Dollars in thousands, except per share amounts)
Calculation of PTPP earnings:
Net income	$	62,222		$	70,375
Provision for credit losses		12,846			14,018
Income tax expense		17,042			18,004
PTPP earnings (non-GAAP)	$	92,110		$	102,397

Calculation of PTPP ROAA:
PTPP Earnings	$	92,110		$	102,397
Divided by the year-to-date number of days		274			273
Multiplied by number of days in the year		366			365
Annualized PTPP Earnings	$	123,037		$	136,904

Divided by total average assets	$	9,951,890		$	10,004,097
ROAA (annualized) (GAAP)		0.84	%		0.94	%
PTPP ROAA (annualized) (non-GAAP)		1.24			1.37

Calculation of ROATCE:
Net income	$	62,222		$	70,375
Divided by the year-to-date number of days		274			273
Multiplied by number of days in the year		366			365
Annualized net income	$	83,114		$	94,091

Total average common stockholders’ equity	$	1,091,018		$	995,395
Average goodwill		(128,679	)		(128,679	)
Average other intangible assets, net		(42,576	)		(46,391	)
Average tangible common equity		919,763			820,325

ROATCE		9.04	%		11.47	%

Calculation of core efficiency ratio:
Total noninterest expense	$	185,616		$	174,310
Insurance and mortgage noninterest expense		(24,895	)		(25,768	)
Adjusted total noninterest expense		160,721			148,542

Net interest income	$	222,017		$	226,568
Insurance and mortgage net interest income		(7,780	)		(5,187	)
Total noninterest income		55,709			50,139
Insurance and mortgage noninterest income		(26,747	)		(23,714	)
Adjusted total revenue		243,199			247,806

Efficiency ratio		66.83	%		62.99	%
Core efficiency ratio		66.09			59.94

The MIL Network –

January 25, 2025

MIL-OSI: TowneBank Reports Third Quarter 2024 Earnings

Source: GlobeNewswire (MIL-OSI)

SUFFOLK, Va., Oct. 23, 2024 (GLOBE NEWSWIRE) — TowneBank (the “Company” or “Towne”) (NASDAQ: TOWN) today reported earnings for the quarter ended September 30, 2024 of $42.95 million, or $0.57 per diluted share, compared to $44.86 million, or $0.60 per diluted share, for the quarter ended September 30, 2023. Excluding certain items affecting comparability, core earnings (non-GAAP) were $43.39 million, or $0.58 per diluted share, in the current quarter compared to $44.88 million, or $0.60 per diluted share, for the quarter ended September 30, 2023.

“Our third quarter results continued to deliver increased net interest income and noninterest income contributions from our diverse business model which were in line with expectations. We remain committed to prudent balance sheet management strategies. We were also excited to announce our partnership with Village Bank which will meaningfully enhance our Richmond presence, which is core to our franchise future growth. Lastly, the recently released FDIC Deposit Market Share Report for 2024 continues to demonstrate the strength of our Main Street banking model and core deposit franchise, resulting in the #1 market share, or 30%, in our legacy Virginia Beach-Norfolk-Newport News, VA-NC MSA,” said G. Robert Aston, Jr., Executive Chairman.

Highlights for Third Quarter 2024:

Total revenues were $174.52 million, an increase of $1.65 million, or 0.96%, compared to third quarter 2023. Noninterest income increased $2.43 million, driven by growth in residential mortgage banking income and insurance commissions. Partially offsetting the increase in noninterest income was a $0.78 million decline in net interest income.
Total deposits were $14.36 billion, an increase of $482.37 million, or 3.48%, compared to third quarter 2023. Total deposits increased 0.63%, or $90.58 million, in comparison to June 30, 2024, 2.52% on an annualized basis.
Noninterest-bearing deposits decreased 3.99%, to $4.27 billion, compared to third quarter 2023 and represented 29.71% of total deposits. Compared to the linked quarter, noninterest-bearing deposits decreased 0.84%.
Loans held for investment were $11.41 billion, an increase of $239.55 million, or 2.14%, compared to September 30, 2023, but a decrease of $39.23 million, or 0.34%, compared to June 30, 2024.
Annualized return on common shareholders’ equity was 8.18% compared to 9.04% in third quarter 2023. Annualized return on average tangible common shareholders’ equity (non-GAAP) was 11.54% compared to 13.11% in third quarter 2023.
Net interest margin was 2.90% for the quarter and tax-equivalent net interest margin (non-GAAP) was 2.93%, including purchase accounting accretion of 3 basis points, compared to the prior year quarter net interest margin of 2.95% and tax-equivalent net interest margin (non-GAAP) of 2.98%, including purchase accounting accretion of 5 basis points.
Compared to the linked quarter, net interest margin increased 4 bp and spread increased 6 bp.
The effective tax rate was 11.52% in the quarter compared to 17.34% in third quarter 2023 and 15.93% in the linked quarter. The lower effective tax rate in the current quarter was primarily due to the impact on state and federal taxes from the increase in credits and losses related to LIHTC investment properties placed in service during the period.

“Growth has certainly been challenging in the current environment but we believe our balance sheet is well positioned to support mid-single digit growth rates as we look ahead to next year. We plan to aggressively expand Towne Insurance and evaluate other opportunities to enhance our fee-based lines of business to further drive our differentiated business model,” stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

Net interest income was $112.28 million compared to $113.06 million for the quarter ended September 30, 2023. The decrease was driven by increased deposit costs, which were mostly offset by higher yields on earning assets.
On an average basis, loans held for investment, with a yield of 5.46%, represented 74.16% of earning assets at September 30, 2024 compared to a yield of 5.13% and 73.45% of earning assets in the third quarter of 2023.
The cost of interest-bearing deposits was 3.28% for the quarter ended September 30, 2024, compared to 2.77% in second quarter 2023. Interest expense on deposits increased $17.96 million, or 27.98%, over the prior year quarter driven by the increase in rate and growth in interest-bearing deposits.
Our total cost of deposits increased to 2.29% from 1.84% for the quarter ended September 30, 2023 due to a combination of higher interest-bearing deposit balances coupled with higher rates. The Federal Reserve Open Market Committee lowered the overnight funds rate late in the third quarter. Management is expecting the decrease to have favorable impact on deposit costs in the fourth quarter of 2024.
Average interest-earning assets totaled $15.40 billion at September 30, 2024 compared to $15.21 billion at September 30, 2023, an increase of 1.26%. The Company anticipates approximately $604 million of cash flows from its securities portfolio to be available for reinvestment in the next twenty-four months.
Average interest-bearing liabilities totaled $10.25 billion, an increase of $493.95 million, or 5.06%, from prior year, driven by deposit growth. Borrowings have declined between periods. There were no short term FHLB borrowings in the third quarter of 2024, compared to an average of $248.91 million in the prior year quarter.

Quarterly Provision for Credit Losses:

The quarterly provision for credit losses was a benefit of $1.10 million compared to an expense of $1.01 million in the prior year quarter and a benefit of $177 thousand in the linked quarter.
The allowance for credit losses on loans decreased $2.36 million in third quarter 2024, compared to the linked quarter. The decrease in the allowance was driven by a modest decline in the loan portfolio, primarily in higher-risk real estate construction and development loans, combined with continued strength in credit quality, and improvements in macroeconomic forecast scenarios utilized in our model.
Net loan charge-offs were $0.68 million in the quarter compared to net recoveries of $1.07 million in the prior year quarter and $19 thousand in the linked quarter. Year-to-date 2024, net loan charge-offs were $1.18 million compared to net loan charge-offs of $2.81 million in first nine months of 2023.
The ratio of net charge-offs to average loans on an annualized basis was 0.02% in third quarter 2024, compared to (0.04)% in third quarter 2023 and 0.00% in the linked quarter.
The allowance for credit losses on loans represented 1.08% of total loans at September 30, 2024, compared to 1.12% at September 30, 2023, and 1.10% at June 30, 2024. The allowance for credit losses on loans was 18.70 times nonperforming loans compared to 17.60 times at September 30, 2023 and 19.08 times at June 30, 2024.

Quarterly Noninterest Income:

Total noninterest income was $62.24 million compared to $59.81 million in 2023, an increase of $2.43 million, or 4.06%.
Residential mortgage banking income was $11.79 million compared to $10.65 million in third quarter 2023. Loan volume increased to $598.18 million in third quarter 2024 from $520.41 million in third quarter 2023. Both, the number of loans originated and the per-loan average balance increased in third quarter 2024 compared to third quarter 2023. Refinance activities increased in the quarter after more than a year of low activity. Residential purchase activity was 91.49% of production volume in the third quarter of 2024 compared to 95.96% in third quarter 2023. Management expects mortgage production volumes to be positively impacted by any additional reductions in the Federal Reserve overnight rate.
While level with the linked quarter at 3.28%, gross margins on residential mortgage sales increased 11 basis points from 3.17% in third quarter 2023.
Total net insurance commissions increased $1.95 million, or 8.20%, to $25.73 million in third quarter 2024 compared to 2023. This increase was primarily attributable to increases in property and casualty commissions, which were driven by organic growth.
Property management fee revenue decreased 12.34%, or $1.58 million, to $11.22 million in third quarter 2024 compared to 2023. Reservation levels declined compared to the prior year.

Quarterly Noninterest Expense:

Total noninterest expense was $126.90 million compared to $117.70 million in 2023, an increase of $9.20 million, or 7.81%. This increase was primarily attributable to growth in salaries and employee benefits of $4.87 million, professional fees of $1.95 million, software of $0.66 million, data processing of $0.56 million, and advertising and marketing of $0.51 million.
Salaries and benefits expense increases were driven by an increase in banking personnel and production incentives.
Investment in technology related to banking services and information monitoring continued to drive both direct and indirect costs. Professional fees increased due to consulting and outside services. Software costs increased due to higher core system costs, while data processing increased due to higher processing costs and merchant fee increases.
Advertising and marketing increased, driven by business development.

Consolidated Balance Sheet Highlights:

Management is focused on strategic balance sheet management with a concentration on controlled loan growth and maintaining strong levels of liquidity.
Total assets were $17.19 billion for the quarter ended September 30, 2024, a $119.18 million increase compared to $17.07 billion at June 30, 2024. Total assets increased $507.66 million, or 3.04%, from $16.68 billion at September 30, 2023.
Loans held for investment declined $39.23 million, or 0.34%, compared to the linked quarter but increased $239.55 million, or 2.14%, compared to prior year. There were declines in several loan categories from the linked quarter, with the most significant decline in the real estate construction and development category. The Company continued to maintain strong credit discipline throughout the period.
Mortgage loans held for sale increased $76.27 million, or 40.56%, compared to prior year and $63.56 million, or 31.66%, compared to the linked quarter, driven by the increase in production.
Total deposits increased $482.37 million, or 3.48%, primarily in interest-bearing demand and time deposits, compared to prior year. In the linked quarter comparison, total deposits increased $90.58 million, or 2.52% on an annualized basis.
Noninterest-bearing deposits decreased $177.23 million, or 3.99%, compared to prior year and $36.15 million, or 0.84%, compared to the linked quarter, primarily in commercial and escrow accounts.
Total borrowings decreased $116.22 million, or 28.55%, compared to third quarter 2023 and $4.35 million, or 1.47%, compared to the linked quarter. Short-term FHLB advances were zero at each of September 30, 2024, and the linked quarter end, compared to $100 million at September 30, 2023.

Investment Securities:

Total investment securities were $2.60 billion compared to $2.49 billion at June 30, 2024 and $2.54 billion at September 30, 2023. The weighted average duration of the portfolio at September 30, 2024 was 3.1 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $110.62 million at September 30, 2024, compared to $172.93 million at June 30, 2024 and $238.52 million at September 30, 2023, with the changes in fair value due to the change in interest rates.

Loans and Asset Quality:

Total loans held for investment were $11.41 billion at September 30, 2024, $11.45 billion June 30, 2024, and $11.17 billion at September 30, 2023.
Nonperforming assets were $7.47 million, or 0.04% of total assets, compared to $7.88 million, or 0.05%, at September 30, 2023, and $7.16 million, or 0.04%, in the linked quarter end.
Nonperforming loans were 0.06% of period end loans at September 30, 2024, September 30, 2023, and the linked quarter end.
Foreclosed property consisted of $884 thousand in repossessed autos at September 30, 2024, compared to $276 thousand in other real estate owned and $490 thousand in repossessed autos, for a total of $766 thousand in foreclosed property at September 30, 2023.

Deposits and Borrowings:

Total deposits were $14.36 billion compared to $14.27 billion at June 30, 2024 and $13.88 billion at September 30, 2023.
The ratio of period end loans held for investment to deposits was 79.46% compared to 80.24% at June 30, 2024 and 80.49% at September 30, 2023.
Noninterest-bearing deposits were 29.71% of total deposits at September 30, 2024 compared to 30.15% at June 30, 2024 and 32.02% at September 30, 2023. Noninterest-bearing deposits declined $177.23 million, or 3.99%, compared to September 30, 2023, and $36.15 million, or 0.84%, compared to the linked quarter.
Total borrowings were $290.82 million compared to $295.17 million at June 30, 2024 and $407.03 million at September 30, 2023.

Capital:

Common equity tier 1 capital ratio of 12.63%⁽¹⁾.
Tier 1 leverage capital ratio of 10.38%⁽¹⁾.
Tier 1 risk-based capital ratio of 12.75%⁽¹⁾.
Total risk-based capital ratio of 15.53% ⁽¹⁾ .
Book value per common share was $28.59 compared to $27.62 at June 30, 2024 and $26.28 at September 30, 2023.
Tangible book value per common share (non-GAAP) was $21.65 compared to $20.65 at June 30, 2024 and $19.28 at September 30, 2023.

⁽¹⁾ Preliminary.

About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

Now celebrating 25 years, TowneBank operates 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $17.19 billion as of September 30, 2024, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to close the transaction with Village Bank when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; our integration of Village Bank’s business to the extent that it may take longer or be more difficult, time-consuming or costly to accomplish than expected; deposit attrition, operating costs, customer losses and business disruption following the Village Bank transaction, including adverse effects on relationships with employees and customers; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected growth opportunities or cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2023, and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, President and Chief Executive Officer, 757-417-6482

Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813


TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
			2024			2024			2024			2023			2023
Income and Performance Ratios:
	Total revenue	$	174,518		$	174,970		$	167,102		$	155,546		$	172,864
	Net income		43,126			43,039			35,127			28,545			44,745
	Net income available to common shareholders		42,949			42,856			34,687			28,804			44,862
	Net income per common share – diluted		0.57			0.57			0.46			0.39			0.60
	Book value per common share		28.59			27.62			27.33			27.24			26.28
	Book value per common share – tangible ^(non-GAAP)		21.65			20.65			20.31			20.28			19.28
	Return on average assets		1.00	%		1.01	%		0.83	%		0.68	%		1.06	%
	Return on average assets – tangible ^(non-GAAP)		1.09	%		1.11	%		0.92	%		0.77	%		1.17	%
	Return on average equity		8.12	%		8.43	%		6.84	%		5.75	%		8.96	%
	Return on average equity – tangible ^(non-GAAP)		11.42	%		12.03	%		9.87	%		8.53	%		12.97	%
	Return on average common equity		8.18	%		8.49	%		6.89	%		5.79	%		9.04	%
	Return on average common equity – tangible ^(non-GAAP)		11.54	%		12.16	%		9.98	%		8.62	%		13.11	%
	Noninterest income as a percentage of total revenue		35.66	%		37.68	%		38.23	%		30.74	%		34.60	%
Regulatory Capital Ratios (1):
	Common equity tier 1		12.63	%		12.43	%		12.20	%		12.18	%		12.19	%
	Tier 1		12.75	%		12.55	%		12.32	%		12.29	%		12.31	%
	Total		15.53	%		15.34	%		15.10	%		15.06	%		15.09	%
	Tier 1 leverage ratio		10.38	%		10.25	%		10.15	%		10.17	%		10.06	%
Asset Quality:
	Allowance for credit losses on loans to nonperforming loans	18.70x			19.08x			18.01x			18.48x			17.60x
	Allowance for credit losses on loans to period end loans		1.08	%		1.10	%		1.10	%		1.12	%		1.12	%
	Nonperforming loans to period end loans		0.06	%		0.06	%		0.06	%		0.06	%		0.06	%
	Nonperforming assets to period end assets		0.04	%		0.04	%		0.05	%		0.05	%		0.05	%
	Net charge-offs (recoveries) to average loans (annualized)		0.02	%		—	%		0.02	%		—	%	(0.04		)%
	Net charge-offs (recoveries)	$	677		$	(19	)	$	520		$	68		$	(1,074	)

	Nonperforming loans	$	6,588		$	6,582		$	6,987		$	6,843		$	7,110
	Foreclosed property		884			581			780			908			766
	Total nonperforming assets	$	7,472		$	7,163		$	7,767		$	7,751		$	7,876
	Loans past due 90 days and still accruing interest	$	510		$	368		$	323		$	735		$	970
	Allowance for credit losses on loans	$	123,191		$	125,552		$	125,835		$	126,461		$	125,159
Mortgage Banking:
	Loans originated, mortgage	$	421,571		$	430,398		$	289,191		$	302,616		$	348,387
	Loans originated, joint venture		176,612			196,583			135,197			126,332			172,021
	Total loans originated	$	598,182		$	626,981		$	424,388		$	428,948		$	520,408
	Number of loans originated		1,637			1,700			1,247			1,237			1,487
	Number of originators		159			169			176			181			192
	Purchase %		91.49	%		94.85	%		95.66	%		95.06	%		95.96	%
	Loans sold	$	526,998		$	605,134		$	410,895		$	468,014		$	567,291
	Rate lock asset	$	1,548		$	1,930		$	1,681		$	895		$	1,348
	Gross realized gain on sales and fees as a % of loans originated		3.28	%		3.28	%		3.34	%		3.06	%		3.17	%
Other Ratios:
	Net interest margin		2.90	%		2.86	%		2.72	%		2.83	%		2.95	%
	Net interest margin-fully tax-equivalent ^(non-GAAP)		2.93	%		2.89	%		2.75	%		2.86	%		2.98	%
	Average earning assets/total average assets		90.43	%		90.36	%		90.52	%		90.48	%		90.73	%
	Average loans/average deposits		80.07	%		80.80	%		81.48	%		80.72	%		80.75	%
	Average noninterest deposits/total average deposits		30.19	%		30.06	%		30.25	%		31.69	%		33.50	%
	Period end equity/period end total assets		12.58	%		12.24	%		12.24	%		12.21	%		11.90	%
	Efficiency ratio ^(non-GAAP)		70.93	%		68.98	%		73.25	%		76.17	%		66.21	%
	(1) Current reporting period regulatory capital ratios are preliminary.


TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

Investment Securities										% Change
	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
*Available-for-sale securities, at fair value*		2024			2023			2024		Q3 23		Q2 24
U.S. agency securities	$	291,814		$	300,161		$	281,934		(2.78	)%	3.50	%
U.S. Treasury notes		28,655			26,721			27,701		7.24	%	3.44	%
Municipal securities		455,722			484,587			442,474		(5.96	)%	2.99	%
Trust preferred and other corporate securities		91,525			74,024			88,228		23.64	%	3.74	%
Mortgage-backed securities issued by GSEs and GNMA		1,496,631			1,079,303			1,411,883		38.67	%	6.00	%
Allowance for credit losses		(1,171	)		(1,343	)		(1,541	)	(12.81	)%	(24.01	)%
Total	$	2,363,176		$	1,963,453		$	2,250,679		20.36	%	5.00	%
*Gross unrealized gains (losses) reflected in financial statements*
Total gross unrealized gains	$	6,703		$	475		$	1,983		1,311.16	%	238.02	%
Total gross unrealized losses		(117,319	)		(238,993	)		(174,911	)	(50.91	)%	(32.93	)%
Net unrealized gains (losses) and other adjustments on AFS securities	$	(110,616	)	$	(238,518	)	$	(172,928	)	(53.62	)%	(36.03	)%
*Held-to-maturity securities, at amortized cost*
U.S. agency securities	$	102,428		$	101,659		$	102,234		0.76	%	0.19	%
U.S. Treasury notes		96,942			433,015			97,171		(77.61	)%	(0.24	)%
Municipal securities		5,342			5,249			5,318		1.77	%	0.45	%
Trust preferred corporate securities		2,133			2,185			2,147		(2.38	)%	(0.65	)%
Mortgage-backed securities issued by GSEs		5,577			5,746			5,618		(2.94	)%	(0.73	)%
Allowance for credit losses		(77	)		(85	)		(79	)	(9.41	)%	(2.53	)%
Total	$	212,345		$	547,769		$	212,409		(61.23	)%	(0.03	)%

Total gross unrealized gains	$	323		$	82		$	175		293.90	%	84.57	%
Total gross unrealized losses		(7,929	)		(23,505	)		(12,880	)	(66.27	)%	(38.44	)%
Net unrealized gains (losses) in HTM securities	$	(7,606	)	$	(23,423	)	$	(12,705	)	(67.53	)%	(40.13	)%
Total unrealized gains (losses) on AFS and HTM securities	$	(118,222	)	$	(261,941	)	$	(185,633	)	(54.87	)%	(36.31	)%
										% Change
Loans Held For Investment	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
		2024			2023			2024		Q3 23		Q2 24
Real estate – construction and development	$	1,118,669		$	1,325,976		$	1,190,768		(15.63	)%	(6.05	)%
Commercial real estate – owner occupied		1,655,345			1,686,888			1,673,582		(1.87	)%	(1.09	)%
Commercial real estate – non owner occupied		3,179,699			3,025,985			3,155,958		5.08	%	0.75	%
Real estate – multifamily		750,906			542,611			682,537		38.39	%	10.02	%
Residential 1-4 family		1,891,216			1,818,843			1,887,420		3.98	%	0.20	%
HELOC		408,565			371,861			408,273		9.87	%	0.07	%
Commercial and industrial business (C&I)		1,256,511			1,237,524			1,297,538		1.53	%	(3.16	)%
Government		521,681			523,456			517,954		(0.34	)%	0.72	%
Indirect		546,887			548,621			558,216		(0.32	)%	(2.03	)%
Consumer loans and other		83,039			91,206			79,501		(8.95	)%	4.45	%
Total	$	11,412,518		$	11,172,971		$	11,451,747		2.14	%	(0.34	)%

										% Change
Deposits	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
		2024			2023			2024		Q3 23		Q2 24
Noninterest-bearing demand	$	4,267,628		$	4,444,861		$	4,303,773		(3.99	)%	(0.84	)%
Interest-bearing:
Demand and money market accounts		6,990,103			6,764,415			6,940,086		3.34	%	0.72	%
Savings		319,970			350,031			312,881		(8.59	)%	2.27	%
Certificates of deposits		2,785,469			2,321,498			2,715,848		19.99	%	2.56	%
Total		14,363,170			13,880,805			14,272,588		3.48	%	0.63	%


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2024								June 30, 2024								September 30, 2023
				Interest			Average					Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	11,419,428		$	156,610		5.46	%	$	11,471,669		$	155,374		5.45	%	$	11,169,924		$	144,457		5.13	%
Taxable investment securities		2,376,102			20,940		3.53	%		2,368,476			21,671		3.66	%		2,373,731			18,645		3.14	%
Tax-exempt investment securities		168,768			1,686		4.00	%		156,503			1,521		3.89	%		206,639			1,993		3.86	%
Total securities		2,544,870			22,626		3.56	%		2,524,979			23,192		3.67	%		2,580,370			20,638		3.20	%
Interest-bearing deposits		1,226,445			15,249		4.95	%		1,182,816			14,512		4.93	%		1,230,582			15,031		4.85	%
Mortgage loans held for sale		208,513			3,247		6.23	%		165,392			2,945		7.12	%		227,426			3,928		6.91	%
Total earning assets		15,399,256			197,732		5.11	%		15,344,856			196,023		5.14	%		15,208,302			184,054		4.80	%
Less: allowance for loan losses		(125,331	)							(126,792	)							(125,553	)
Total nonearning assets		1,754,216								1,764,418								1,680,110
Total assets	$	17,028,141							$	16,982,482							$	16,762,859
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	6,917,622		$	48,896		2.81	%	$	6,896,176		$	48,161		2.81	%	$	6,605,853		$	41,381		2.49	%
Savings		315,338			842		1.06	%		317,774			845		1.07	%		356,116			938		1.05	%
Certificates of deposit		2,723,437			32,390		4.73	%		2,715,615			33,017		4.89	%		2,236,102			21,852		3.88	%
Total interest-bearing deposits		9,956,397			82,128		3.28	%		9,929,565			82,023		3.32	%		9,198,071			64,171		2.77	%
Borrowings		33,867			(25	)	(0.29	)%		100,165			1,627		6.43	%		299,105			3,382		4.42	%
Subordinated debt, net		256,309			2,237		3.49	%		256,093			2,236		3.49	%		255,446			2,245		3.52	%
Total interest-bearing liabilities		10,246,573			84,340		3.27	%		10,285,823			85,886		3.36	%		9,752,622			69,798		2.84	%
Demand deposits		4,305,783								4,267,590								4,633,856
Other noninterest-bearing liabilities		370,736								383,447								389,912
Total liabilities		14,923,092								14,936,860								14,776,390
Shareholders’ equity		2,105,049								2,045,622								1,986,469
Total liabilities and equity	$	17,028,141							$	16,982,482							$	16,762,859
Net interest income (tax-equivalent basis) (4)				$	113,392							$	110,137							$	114,256
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment					(1,110	)							(1,089	)							(1,198	)
Net interest income (GAAP)				$	112,282							$	109,048							$	113,058

Interest rate spread (2)(4)							1.84	%							1.78	%							1.96	%
Interest expense as a percent of average earning assets							2.18	%							2.25	%							1.82	%
Net interest margin (tax-equivalent basis) (3)(4)							2.93	%							2.89	%							2.98	%
Total cost of deposits							2.29	%							2.32	%							1.84	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Nine Months Ended								Nine Months Ended
	September 30, 2024								September 30, 2023
				Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	11,423,458		$	463,794		5.42	%	$	11,159,329		$	417,808		5.01	%
Taxable investment securities		2,395,007			61,327		3.41	%		2,420,634			52,656		2.90	%
Tax-exempt investment securities		162,294			4,756		3.91	%		201,535			5,883		3.89	%
Total securities		2,557,301			66,083		3.45	%		2,622,169			58,539		2.98	%
Interest-bearing deposits		1,192,319			43,995		4.93	%		1,179,952			40,168		4.55	%
Mortgage loans held for sale		163,755			7,908		6.44	%		168,822			8,079		6.38	%
Total earning assets		15,336,833			581,780		5.07	%		15,130,272			524,594		4.64	%
Less: allowance for loan losses		(126,508	)							(120,420	)
Total nonearning assets		1,748,215								1,637,952
Total assets	$	16,958,540							$	16,647,804
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	6,880,752		$	145,042		2.82	%	$	6,349,422		$	96,742		2.04	%
Savings		320,696			2,569		1.07	%		376,282			2,676		0.95	%
Certificates of deposit		2,674,509			94,928		4.74	%		1,964,718			47,358		3.22	%
Total interest-bearing deposits		9,875,957			242,539		3.28	%		8,690,422			146,776		2.26	%
Borrowings		115,171			4,679		5.34	%		505,856			17,644		4.60	%
Subordinated debt, net		256,094			6,710		3.49	%		253,612			6,650		3.50	%
Total interest-bearing liabilities		10,247,222			253,928		3.31	%		9,449,890			171,070		2.42	%
Demand deposits		4,265,971								4,873,945
Other noninterest-bearing liabilities		381,547								353,459
Total liabilities		14,894,740								14,677,294
Shareholders’ equity		2,063,800								1,970,510
Total liabilities and equity	$	16,958,540							$	16,647,804
Net interest income (tax-equivalent basis)(4)				$	327,852							$	353,524
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment					(3,304	)							(3,477	)
Net interest income (GAAP)				$	324,548							$	350,047

Interest rate spread (2)(4)							1.76	%							2.22	%
Interest expense as a percent of average earning assets							2.21	%							1.51	%
Net interest margin (tax-equivalent basis) (3)(4)							2.86	%							3.12	%
Total cost of deposits							2.29	%							1.45	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.


TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands, except share data)


	September 30,			December 31,
		2024			2023
	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	131,068		$	85,584
Interest-bearing deposits at FRB		1,061,596			939,356
Interest-bearing deposits in financial institutions		103,400			103,417
Total Cash and Cash Equivalents		1,296,064			1,128,357
Securities available for sale, at fair value (amortized cost of $2,474,963 and $2,292,963, and allowance for credit losses of $1,171 and $1,498 at September 30, 2024 and December 31, 2023, respectively)		2,363,176			2,129,342
Securities held to maturity, at amortized cost (fair value $204,816 and $462,656 at September 30, 2024 and December 31, 2023, respectively)		212,422			477,592
Less: Allowance for credit losses		(77	)		(84	)
Securities held to maturity, net of allowance for credit losses		212,345			477,508
Other equity securities		12,681			13,792
FHLB stock		12,134			21,372
Total Securities		2,600,336			2,642,014
Mortgage loans held for sale		264,320			149,987
Loans, net of unearned income and deferred costs		11,412,518			11,329,021
Less: allowance for credit losses		(123,191	)		(126,461	)
Net Loans		11,289,327			11,202,560
Premises and equipment, net		365,764			337,598
Goodwill		457,619			456,335
Other intangible assets, net		63,265			64,634
BOLI		279,325			277,445
Other assets		572,000			576,109
TOTAL ASSETS	$	17,188,020		$	16,835,039

LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,267,628		$	4,342,701
Interest-bearing:
Demand and money market accounts		6,990,103			6,757,619
Savings		319,970			336,492
Certificates of deposit		2,785,469			2,456,394
Total Deposits		14,363,170			13,893,206
Advances from the FHLB		3,405			203,958
Subordinated debt, net		256,444			255,796
Repurchase agreements and other borrowings		30,970			32,826
Total Borrowings		290,819			492,580
Other liabilities		371,316			393,375
TOTAL LIABILITIES		15,025,305			14,779,161
Preferred stock, authorized and unissued shares – 2,000,000		—			—
Common stock, $1.667 par value: 150,000,000 shares authorized;
75,068,662 and 74,893,462 shares issued at
September 30, 2024 and December 31, 2023, respectively		125,139			124,847
Capital surplus		1,117,279			1,112,761
Retained earnings		985,343			921,126
Common stock issued to deferred compensation trust, at cost:
1,056,823 and 1,004,717 shares at September 30, 2024 and December 31, 2023, respectively		(22,224	)		(20,813	)
Deferred compensation trust		22,224			20,813
Accumulated other comprehensive income (loss)		(81,482	)		(118,762	)
TOTAL SHAREHOLDERS’ EQUITY		2,146,279			2,039,972
Noncontrolling interest		16,436			15,906
TOTAL EQUITY		2,162,715			2,055,878
TOTAL LIABILITIES AND EQUITY	$	17,188,020		$	16,835,039

TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
INTEREST INCOME:
Loans, including fees	$	155,792		$	143,605		$	461,316		$	415,351
Investment securities		22,334			20,292			65,257			57,519
Interest-bearing deposits in financial institutions and federal funds sold		15,249			15,031			43,995			40,168
Mortgage loans held for sale		3,247			3,928			7,908			8,079
Total interest income		196,622			182,856			578,476			521,117
INTEREST EXPENSE:
Deposits		82,128			64,171			242,539			146,776
Advances from the FHLB		29			3,438			3,408			16,838
Subordinated debt, net		2,237			2,245			6,710			6,650
Repurchase agreements and other borrowings		(54	)		(56	)		1,271			806
Total interest expense		84,340			69,798			253,928			171,070
Net interest income		112,282			113,058			324,548			350,047
PROVISION FOR CREDIT LOSSES		(1,100	)		1,007			(2,154	)		16,232
Net interest income after provision for credit losses		113,382			112,051			326,702			333,815
NONINTEREST INCOME:
Residential mortgage banking income, net		11,786			10,648			35,685			31,380
Insurance commissions and related income, net		25,727			23,777			75,297			69,098
Property management income, net		11,221			12,800			42,306			40,433
Real estate brokerage income, net		—			(63	)		—			3,562
Service charges on deposit accounts		3,117			2,823			9,548			8,577
Credit card merchant fees, net		1,830			2,006			5,042			5,232
Investment commissions, net		2,835			2,363			7,759			6,581
BOLI		1,886			1,814			6,966			5,196
Gain on sale of equity investment		20			554			20			9,386
Other income		3,814			3,084			9,345			9,083
Net gain/(loss) on investment securities		—			—			74			—
Total noninterest income		62,236			59,806			192,042			188,528
NONINTEREST EXPENSE:
Salaries and employee benefits		72,123			67,258			214,849			204,124
Occupancy		9,351			9,027			28,490			27,579
Furniture and equipment		4,657			4,100			13,769			12,733
Amortization – intangibles		3,130			3,610			9,675			10,744
Software		6,790			6,130			19,947			17,922
Data processing		4,701			4,140			13,223			11,504
Professional fees		4,720			2,770			11,689			8,948
Advertising and marketing		4,162			3,653			12,268			12,012
Other expenses		17,266			17,014			52,565			61,762
Total noninterest expense		126,900			117,702			376,475			367,328
Income before income tax expense and noncontrolling interest		48,718			54,155			142,269			155,015
Provision for income tax expense		5,592			9,410			20,977			28,424
Net income	$	43,126		$	44,745		$	121,292		$	126,591
Net income attributable to noncontrolling interest		(177	)		117			(800	)		(1,680	)
Net income attributable to TowneBank	$	42,949		$	44,862		$	120,492		$	124,911
Per common share information
Basic earnings	$	0.57		$	0.60		$	1.61		$	1.67
Diluted earnings	$	0.57		$	0.60		$	1.61		$	1.67
Cash dividends declared	$	0.25		$	0.25		$	0.75		$	0.73


TOWNEBANK
Consolidated Balance Sheets – Five Quarter Trend
(dollars in thousands, except share data)


	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
	(unaudited)			(unaudited)			(unaudited)			(audited)			(unaudited)
ASSETS
Cash and due from banks	$	131,068		$	140,028		$	75,802		$	85,584		$	83,949
Interest-bearing deposits at FRB		1,061,596			1,062,115			926,635			939,356			1,029,276
Interest-bearing deposits in financial institutions		103,400			99,303			98,673			103,417			102,527
Total Cash and Cash Equivalents		1,296,064			1,301,446			1,101,110			1,128,357			1,215,752
Securities available for sale		2,363,176			2,250,679			2,204,101			2,129,342			1,963,453
Securities held to maturity		212,422			212,488			312,510			477,592			547,854
Less: allowance for credit losses		(77	)		(79	)		(82	)		(84	)		(85	)
Securities held to maturity, net of allowance for credit losses		212,345			212,409			312,428			477,508			547,769
Other equity securities		12,681			13,566			13,661			13,792			14,062
FHLB stock		12,134			12,134			12,139			21,372			16,634
Total Securities		2,600,336			2,488,788			2,542,329			2,642,014			2,541,918
Mortgage loans held for sale		264,320			200,762			150,727			149,987			188,048
Loans, net of unearned income and deferred costs		11,412,518			11,451,747			11,452,343			11,329,021			11,172,971
Less: Allowance for credit losses		(123,191	)		(125,552	)		(125,835	)		(126,461	)		(125,159	)
Net Loans		11,289,327			11,326,195			11,326,508			11,202,560			11,047,812
Premises and equipment, net		365,764			340,348			342,569			337,598			335,522
Goodwill		457,619			457,619			457,619			456,335			456,684
Other intangible assets, net		63,265			65,460			68,758			64,634			67,496
BOLI		279,325			277,434			279,293			277,445			275,240
Other assets		572,000			610,791			615,324			576,109			551,884
TOTAL ASSETS	$	17,188,020		$	17,068,843		$	16,884,237		$	16,835,039		$	16,680,356
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,267,628		$	4,303,773		$	4,194,132		$	4,342,701		$	4,444,861
Interest-bearing:
Demand and money market accounts		6,990,103			6,940,086			6,916,701			6,757,619			6,764,415
Savings		319,970			312,881			326,179			336,492			350,031
Certificates of deposit		2,785,469			2,715,848			2,689,062			2,456,394			2,321,498
Total Deposits		14,363,170			14,272,588			14,126,074			13,893,206			13,880,805
Advances from the FHLB		3,405			3,591			3,775			203,958			104,139
Subordinated debt, net		256,444			256,227			256,011			255,796			255,580
Repurchase agreements and other borrowings		30,970			35,351			31,198			32,826			47,315
Total Borrowings		290,819			295,169			290,984			492,580			407,034
Other liabilities		371,316			411,770			401,307			393,375			408,305
TOTAL LIABILITIES		15,025,305			14,979,527			14,818,365			14,779,161			14,696,144

Preferred stock		—			—			—			—			—
Common stock, $1.667 par value		125,139			125,090			125,009			124,847			124,837
Capital surplus		1,117,279			1,115,759			1,114,038			1,112,761			1,111,152
Retained earnings		985,343			961,162			937,065			921,126			911,042
Common stock issued to deferred compensation trust, at cost		(22,224	)		(22,756	)		(20,915	)		(20,813	)		(20,740	)
Deferred compensation trust		22,224			22,756			20,915			20,813			20,740
Accumulated other comprehensive income (loss)		(81,482	)		(129,224	)		(126,586	)		(118,762	)		(179,043	)
TOTAL SHAREHOLDERS’ EQUITY		2,146,279			2,072,787			2,049,526			2,039,972			1,967,988
Noncontrolling interest		16,436			16,529			16,346			15,906			16,224
TOTAL EQUITY		2,162,715			2,089,316			2,065,872			2,055,878			1,984,212
TOTAL LIABILITIES AND EQUITY	$	17,188,020		$	17,068,843		$	16,884,237		$	16,835,039		$	16,680,356


TOWNEBANK
Consolidated Statements of Income – Five Quarter Trend (unaudited)
(dollars in thousands, except share data)


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
INTEREST INCOME:
Loans, including fees	$	155,792		$	154,549		$	150,974		$	146,810		$	143,605
Investment securities		22,334			22,928			19,996			20,464			20,292
Interest-bearing deposits in financial institutions and federal funds sold		15,249			14,512			14,234			13,967			15,031
Mortgage loans held for sale		3,247			2,945			1,716			2,886			3,928
Total interest income		196,622			194,934			186,920			184,127			182,856
INTEREST EXPENSE:
Deposits		82,128			82,023			78,388			73,200			64,171
Advances from the FHLB		29			942			2,438			917			3,438
Subordinated debt, net		2,237			2,236			2,236			2,236			2,245
Repurchase agreements and other borrowings		(54	)		685			640			41			(56	)
Total interest expense		84,340			85,886			83,702			76,394			69,798
Net interest income		112,282			109,048			103,218			107,733			113,058
PROVISION FOR CREDIT LOSSES		(1,100	)		(177	)		(877	)		2,446			1,007
Net interest income after provision for credit losses		113,382			109,225			104,095			105,287			112,051
NONINTEREST INCOME:
Residential mortgage banking income, net		11,786			13,422			10,477			8,035			10,648
Insurance commissions and related income, net		25,727			24,031			25,539			21,207			23,777
Property management income, net		11,221			14,312			16,773			7,358			12,800
Real estate brokerage income, net		—			—			—			(32	)		(63	)
Service charges on deposit accounts		3,117			3,353			3,079			3,056			2,823
Credit card merchant fees, net		1,830			1,662			1,551			1,476			2,006
Investment commissions, net		2,835			2,580			2,343			2,380			2,363
BOLI		1,886			3,238			1,842			2,206			1,814
Other income		3,834			3,324			2,206			2,127			3,638
Net gain/(loss) on investment securities		—			—			74			—			—
Total noninterest income		62,236			65,922			63,884			47,813			59,806
NONINTEREST EXPENSE:
Salaries and employee benefits		72,123			71,349			71,377			66,035			67,258
Occupancy		9,351			9,717			9,422			9,308			9,027
Furniture and equipment		4,657			4,634			4,478			4,445			4,100
Amortization – intangibles		3,130			3,298			3,246			3,411			3,610
Software		6,790			7,056			6,100			6,743			6,130
Data processing		4,701			4,606			3,916			3,529			4,140
Professional fees		4,720			3,788			3,180			3,339			2,770
Advertising and marketing		4,162			3,524			4,582			3,377			3,653
Other expenses		17,266			16,012			19,290			21,708			17,014
Total noninterest expense		126,900			123,984			125,591			121,895			117,702
Income before income tax expense and noncontrolling interest		48,718			51,163			42,388			31,205			54,155
Provision for income tax expense		5,592			8,124			7,261			2,660			9,410
Net income		43,126			43,039			35,127			28,545			44,745
Net income attributable to noncontrolling interest		(177	)		(183	)		(440	)		259			117
Net income attributable to TowneBank	$	42,949		$	42,856		$	34,687		$	28,804		$	44,862
Per common share information
Basic earnings	$	0.57		$	0.57		$	0.46		$	0.39		$	0.60
Diluted earnings	$	0.57		$	0.57		$	0.46		$	0.39		$	0.60
Basic weighted average shares outstanding		74,940,827			74,925,877			74,816,420			74,773,335			74,750,294
Diluted weighted average shares outstanding		75,141,661			75,037,955			74,979,501			74,793,557			74,765,515
Cash dividends declared	$	0.25		$	0.25		$	0.25		$	0.25		$	0.25

TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Nine Months Ended						Increase/(Decrease)
	September 30,						June 30,			September 30,						YTD 2024 over 2023
		2024			2023			2024			2024			2023		Amount			Percent
Revenue
Net interest income	$	111,569		$	112,189		$	108,029		$	322,280		$	349,165		$	(26,885	)	(7.70	)%
Service charges on deposit accounts		3,117			2,823			3,352			9,548			8,577			971		11.32	%
Credit card merchant fees		1,830			2,006			1,662			5,042			5,232			(190	)	(3.63	)%
Investment commissions, net		2,835			2,363			2,580			7,759			6,581			1,178		17.90	%
Other income		4,828			4,224			4,840			13,096			12,012			1,084		9.02	%
Subtotal		12,610			11,416			12,434			35,445			32,402			3,043		9.39	%
Net gain/(loss) on investment securities		—			—			—			74			—			74		N/M
Total noninterest income		12,610			11,416			12,434			35,519			32,402			3,117		9.62	%
Total revenue		124,179			123,605			120,463			357,799			381,567			(23,768	)	(6.23	)%

Provision for credit losses		(1,043	)		1,206			(170	)		(2,189	)		16,442			(18,631	)	(113.31	)%

Expenses
Salaries and employee benefits		47,148			42,727			46,640			140,261			128,161			12,100		9.44	%
Occupancy		6,963			6,637			7,194			21,217			19,717			1,500		7.61	%
Furniture and equipment		3,878			3,273			3,810			11,336			10,150			1,186		11.68	%
Amortization of intangible assets		1,072			1,296			1,117			3,352			3,918			(566	)	(14.45	)%
Other expenses		26,674			22,595			23,587			77,215			80,215			(3,000	)	(3.74	)%
Total expenses		85,735			76,528			82,348			253,381			242,161			11,220		4.63	%
Income before income tax, corporate allocation and noncontrolling interest		39,487			45,871			38,285			106,607			122,964			(16,357	)	(13.30	)%
Corporate allocation		1,223			1,291			1,232			3,524			3,763			(239	)	(6.35	)%
Income before income tax provision and noncontrolling interest		40,710			47,162			39,517			110,131			126,727			(16,596	)	(13.10	)%
Provision for income tax expense		3,495			7,440			5,130			12,731			21,204			(8,473	)	(39.96	)%
Net income		37,215			39,722			34,387			97,400			105,523			(8,123	)	(7.70	)%
Noncontrolling interest		(29	)		—			(58	)		34			—			34		N/M
Net income attributable to TowneBank	$	37,186		$	39,722		$	34,329		$	97,434		$	105,523		$	(8,089	)	(7.67	)%

Efficiency ratio ^(non-GAAP)		68.18	%		60.86	%		67.43	%		69.89	%		62.44	%		7.45	%	11.93	%


TOWNEBANK
Realty Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Nine Months Ended						Increase/(Decrease)
	September 30,						June 30,			September 30,						YTD 2024 over 2023
		2024			2023			2024			2024			2023		Amount			Percent
Revenue
Residential mortgage brokerage income, net	$	12,211		$	10,955		$	13,996		$	37,006		$	32,964		$	4,042		12.26	%
Real estate brokerage income, net		—			(63	)		—			—			3,562			(3,562	)	(100.00	)%
Title insurance and settlement fees		—			—			—			—			443			(443	)	(100.00	)%
Property management fees, net		11,221			12,800			14,312			42,306			40,433			1,873		4.63	%
Income (loss) from unconsolidated subsidiary		51			(63	)		67			148			(884	)		1,032		116.74	%
Gain on equity investment		—			—			—			—			8,833			(8,833	)	(100.00	)%
Net interest and other income		906			1,163			1,317			3,007			1,984			1,023		51.56	%
Total revenue		24,389			24,792			29,692			82,467			87,335			(4,868	)	(5.57	)%

Provision for credit losses		(57	)		(199	)		(7	)		35			(210	)		245		116.67	%

Expenses
Salaries and employee benefits		12,355			12,881			12,370			36,913			41,670			(4,757	)	(11.42	)%
Occupancy		1,638			1,669			1,811			5,019			5,559			(540	)	(9.71	)%
Furniture and equipment		604			600			596			1,794			1,933			(139	)	(7.19	)%
Amortization of intangible assets		637			742			781			2,094			2,166			(72	)	(3.32	)%
Other expenses		8,839			9,544			9,136			26,174			27,319			(1,145	)	(4.19	)%
Total expenses		24,073			25,436			24,694			71,994			78,647			(6,653	)	(8.46	)%

Income before income tax, corporate allocation and noncontrolling interest		373			(445	)		5,005			10,438			8,898			1,540		17.31	%
Corporate allocation		(484	)		(600	)		(490	)		(1,322	)		(1,800	)		478		(26.56	)%
Income before income tax provision and noncontrolling interest		(111	)		(1,045	)		4,515			9,116			7,098			2,018		28.43	%
Provision for income tax expense		18			(99	)		1,163			2,336			1,769			567		32.05	%
Net income		(129	)		(946	)		3,352			6,780			5,329			1,451		27.23	%
Noncontrolling interest		(148	)		117			(125	)		(834	)		(1,680	)		846		(50.36	)%
Net income attributable to TowneBank	$	(277	)	$	(829	)	$	3,227		$	5,946		$	3,649		$	2,297		62.95	%

Efficiency ratio excluding gain on equity investment ^(non-GAAP)		96.09	%		99.61	%		80.54	%		84.76	%		97.43	%	(12.67		)%	(13.00	)%

TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Nine Months Ended						Increase/(Decrease)
	September 30,						June 30,			September 30,						YTD 2024 over 2023
		2024			2023			2024			2024			2023		Amount			Percent
Commission and fee income
Property and casualty	$	23,157		$	22,103		$	22,225		$	66,104		$	60,259		$	5,845		9.70	%
Employee benefits		4,483			4,245			4,404			13,712			13,393			319		2.38	%
Specialized benefit services		—			133			—			10			445			(435	)	(97.75	)%
Total commissions and fees		27,640			26,481			26,629			79,826			74,097			5,729		7.73	%

Contingency and bonus revenue		2,731			2,335			2,951			10,185			9,343			842		9.01	%
Other income		25			557			6			41			573			(532	)	(92.84	)%
Total revenue		30,396			29,373			29,586			90,052			84,013			6,039		7.19	%

Employee commission expense		4,446			4,906			4,771			13,728			14,340			(612	)	(4.27	)%
Revenue, net of commission expense		25,950			24,467			24,815			76,324			69,673			6,651		9.55	%

Salaries and employee benefits		12,620			11,650			12,339			37,675			34,293			3,382		9.86	%
Occupancy		750			721			712			2,254			2,303			(49	)	(2.13	)%
Furniture and equipment		175			227			228			639			650			(11	)	(1.69	)%
Amortization of intangible assets		1,421			1,572			1,400			4,229			4,660			(431	)	(9.25	)%
Other expenses		2,126			1,568			2,263			6,303			4,614			1,689		36.61	%
Total operating expenses		17,092			15,738			16,942			51,100			46,520			4,580		9.85	%
Income before income tax, corporate allocation and noncontrolling interest		8,858			8,729			7,873			25,224			23,153			2,071		8.94	%
Corporate allocation		(739	)		(691	)		(742	)		(2,202	)		(1,963	)		(239	)	12.18	%
Income before income tax provision and noncontrolling interest		8,119			8,038			7,131			23,022			21,190			1,832		8.65	%
Provision for income tax expense		2,079			2,069			1,831			5,910			5,451			459		8.42	%
Net income		6,040			5,969			5,300			17,112			15,739			1,373		8.72	%
Noncontrolling interest		—			—			—			—			—			—		—	%
Net income attributable to TowneBank	$	6,040		$	5,969		$	5,300		$	17,112		$	15,739		$	1,373		8.72	%

Provision for income taxes		2,079			2,069			1,831			5,910			5,451			459		8.42	%
Depreciation, amortization and interest expense		1,550			1,726			1,529			4,632			5,115			(483	)	(9.44	)%
EBITDA ^(non-GAAP)	$	9,669		$	9,764		$	8,660		$	27,654		$	26,305		$	1,349		5.13	%

Efficiency ratio ^(non-GAAP)		60.44	%		59.21	%		62.63	%		61.43	%		60.55	%		0.88	%	1.45	%


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)

	Three Months Ended									Nine Months Ended
	September 30,			September 30,			June 30,			September 30,			September 30,
		2024			2023			2024			2024			2023

Return on average assets (GAAP)		1.00	%		1.06	%		1.01	%		0.95	%		1.00	%
Impact of excluding average goodwill and other intangibles and amortization		0.09	%		0.11	%		0.10	%		0.09	%		0.11	%
Return on average tangible assets (non-GAAP)		1.09	%		1.17	%		1.11	%		1.04	%		1.11	%

Return on average equity (GAAP)		8.12	%		8.96	%		8.43	%		7.80	%		8.48	%
Impact of excluding average goodwill and other intangibles and amortization		3.30	%		4.01	%		3.60	%		3.31	%		3.87	%
Return on average tangible equity (non-GAAP)		11.42	%		12.97	%		12.03	%		11.11	%		12.35	%

Return on average common equity (GAAP)		8.18	%		9.04	%		8.49	%		7.86	%		8.54	%
Impact of excluding average goodwill and other intangibles and amortization		3.36	%		4.07	%		3.67	%		3.37	%		3.95	%
Return on average tangible common equity (non-GAAP)		11.54	%		13.11	%		12.16	%		11.23	%		12.49	%

Book value (GAAP)	$	28.59		$	26.28		$	27.62		$	28.59		$	26.28
Impact of excluding average goodwill and other intangibles and amortization		(6.94	)		(7.00	)		(6.97	)		(6.94	)		(7.00	)
Tangible book value (non-GAAP)	$	21.65		$	19.28		$	20.65		$	21.65		$	19.28

Efficiency ratio (GAAP)		72.71	%		68.09	%		70.86	%		72.88	%		68.20	%
Impact of exclusions	(1.78		)%	(1.88		)%	(1.88		)%	(1.86		)%	(0.82		)%
Efficiency ratio (non-GAAP)		70.93	%		66.21	%		68.98	%		71.02	%		67.38	%

Average assets (GAAP)	$	17,028,141		$	16,762,859		$	16,982,482		$	16,958,540		$	16,647,804
Less: average goodwill and intangible assets		522,219			526,445			525,122			523,335			526,375
Average tangible assets (non-GAAP)	$	16,505,922		$	16,236,414		$	16,457,360		$	16,435,205		$	16,121,429

Average equity (GAAP)	$	2,105,049		$	1,986,469		$	2,045,622		$	2,063,800		$	1,970,510
Less: average goodwill and intangible assets		522,219			526,445			525,122			523,335			526,375
Average tangible equity (non-GAAP)	$	1,582,830		$	1,460,024		$	1,520,500		$	1,540,465		$	1,444,135

Average common equity (GAAP)	$	2,088,674		$	1,969,898		$	2,029,150		$	2,047,482		$	1,954,850
Less: average goodwill and intangible assets		522,219			526,445			525,122			523,335			526,375
Average tangible common equity (non-GAAP)	$	1,566,455		$	1,443,453		$	1,504,028		$	1,524,147		$	1,428,475

Net income (GAAP)	$	42,949		$	44,862		$	42,856		$	120,492		$	124,911
Amortization of intangibles, net of tax		2,473			2,852			2,605			7,643			8,488
Tangible net income (non-GAAP)	$	45,422		$	47,714		$	45,461		$	128,135		$	133,399

Total revenue (GAAP)	$	174,518		$	172,864		$	174,970		$	516,590		$	538,575
Net (gain)/loss on investment securities		—			—			—			(74	)		—
Other nonrecurring (income) loss		(20	)		(554	)		—			(20	)		(9,386	)
Total Revenue for efficiency calculation (non-GAAP)	$	174,498		$	172,310		$	174,970		$	516,496		$	529,189

Noninterest expense (GAAP)	$	126,900		$	117,702		$	123,984		$	376,475		$	367,328
Less: amortization of intangibles		3,130			3,610			3,298			9,675			10,744
Noninterest expense net of amortization (non-GAAP)	$	123,770		$	114,092		$	120,686		$	366,800		$	356,584


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2023			2023			2023
Net income (GAAP)	$	42,949		$	42,856		$	34,687		$	28,804		$	44,862

Adjustments
Plus: Acquisition-related expenses, net of tax		460			18			564			56			458
Plus: FDIC special assessment, net of tax		—			(310	)		1,021			4,083			—
Less: Gain on sale of equity investments, net of noncontrolling interest		(16	)		—			—			(1,846	)		(438	)
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	43,393		$	42,564		$	36,272		$	31,097		$	44,882
Weighted average diluted shares		75,141,661			75,037,955			74,979,501			74,793,557			74,765,515
Diluted EPS (GAAP)	$	0.57		$	0.57		$	0.46		$	0.39		$	0.60
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	0.58		$	0.57		$	0.48		$	0.42		$	0.60
Average assets	$	17,028,141		$	16,982,482		$	16,864,235		$	16,683,041		$	16,762,859
Average tangible equity	$	1,582,830		$	1,520,500			1,517,600		$	1,465,216		$	1,460,024
Average common tangible equity	$	1,566,455		$	1,504,028		$	1,501,494		$	1,449,052		$	1,443,453
Return on average assets, excluding certain items affecting comparability (non-GAAP)		1.01	%		1.01	%		0.87	%		0.74	%		1.06	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		11.53	%		11.95	%		10.29	%		9.15	%		12.97	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		11.65	%		12.08	%		10.40	%		9.25	%		13.13	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		72.45	%		70.85	%		74.84	%		78.33	%		67.76	%

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Nine Months Ended
	September 30,			September 30,
		2024			2023
Net income (GAAP)	$	120,492		$	124,911

Adjustments
Plus: Acquisition-related expenses, net of tax		1,040			7,718
Plus: FDIC special assessment, net of tax		711			—
Plus: Initial provision for acquired loans, net of tax		—			3,166
Less: Gain on sale of equity investments, net of noncontrolling interest and tax		(16	)		(5,951	)
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	122,227		$	129,844
Weighted average diluted shares		75,043,848			74,618,743
Diluted EPS (GAAP)	$	1.61		$	1.67
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	1.63		$	1.74
Average assets	$	16,958,540		$	16,647,804
Average tangible equity	$	1,540,465		$	1,444,135
Average tangible common equity	$	1,524,147		$	1,428,475
Return on average assets, excluding certain items affecting comparability (non-GAAP)		0.96	%		1.04	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		11.26	%		12.81	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		11.38	%		12.95	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		72.68	%		67.61	%

The MIL Network –

January 25, 2025

MIL-OSI: Live Oak Bancshares, Inc. Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

WILMINGTON, N.C., Oct. 23, 2024 (GLOBE NEWSWIRE) — Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported third quarter of 2024 net income of $13.0 million, or $0.28 per diluted share.

“Live Oak delivered historic production levels this quarter as our teams continue to put capital into the hands of business owners across the country,” said Live Oak Chairman and Chief Executive Officer James S. (Chip) Mahan III. “We believe our business momentum is in an exciting place and our conservative approach to growth is driving positive operating leverage, revenue, and deeper customer relationships.”

Third Quarter 2024 Key Measures

(Dollars in thousands, except per share data)							Increase (Decrease)
	3Q 2024			2Q 2024			Dollars			Percent			3Q 2023
Total revenue⁽¹⁾	$	129,932		$	125,479		$	4,453			3.5	%	$	127,301
Total noninterest expense		77,589			77,656			(67	)		(0.1	)		74,262
Income before taxes		17,841			36,058			(18,217	)		(50.5	)		42,760
Effective tax rate		27.0	%		25.2	%		n/a			n/a			6.9	%
Net income	$	13,025		$	26,963		$	(13,938	)		(51.7	)%	$	39,793
Diluted earnings per share		0.28			0.59			(0.31	)		(52.5	)		0.88
Loan and lease production:
Loans and leases originated	$	1,757,856		$	1,171,141		$	586,715			50.1	%	$	1,073,255
% Fully funded		42.4	%		38.2	%		n/a			n/a			52.2	%
Total loans and leases:	$	10,191,868		$	9,535,766		$	656,102			6.9	%	$	8,775,235
Total assets:		12,607,346			11,868,570			738,776			6.2			10,950,460
Total deposits:		11,400,547			10,707,031			693,516			6.5			10,003,642

(1) Total revenue consists of net interest income and total noninterest income.

Loans and Leases

As of September 30, 2024, the total loan and lease portfolio was $10.19 billion, 6.9% above its level at June 30, 2024, and 16.1% above its level a year ago. Excluding historical Paycheck Protection Program loans, the third quarter of 2024 was the Company’s highest loan production quarter of all time. Compared to the second quarter of 2024, loans and leases held for investment increased $659.8 million, or 7.2%, to $9.83 billion while loans held for sale decreased $3.7 million, or 1.0%, to $360.0 million. Average loans and leases were $9.76 billion during the third quarter of 2024 compared to $9.38 billion during the second quarter of 2024.

The total loan and lease portfolio at September 30, 2024, and June 30, 2024, was comprised of 34.5% and 36.4% of guaranteed loans, respectively.

Loan and lease originations totaled $1.76 billion during the third quarter of 2024, an increase of $586.7 million, or 50.1%, from the second quarter of 2024. Loan and lease originations increased $684.6 million, or 63.8%, from the third quarter of 2023.

Deposits

Total deposits increased to $11.40 billion at September 30, 2024, an increase of $693.5 million compared to June 30, 2024, and an increase of $1.40 billion compared to September 30, 2023. The increase in total deposits from prior periods was to support growth in the loan and lease portfolio as well as the Company’s targeted liquidity levels.

Average total interest-bearing deposits for the third quarter of 2024 increased $287.5 million, or 2.8%, to $10.56 billion, compared to $10.27 billion for the second quarter of 2024. The ratio of average total loans and leases to average interest-bearing deposits was 92.5% for the third quarter of 2024, compared to 91.4% for the second quarter of 2024.

Borrowings

Borrowings totaled $115.4 million at September 30, 2024 compared to $117.7 million and $25.8 million at June 30, 2024, and September 30, 2023, respectively. During the first quarter of 2024, the Company increased long-term borrowings by $100.0 million through an unsecured 5.95% fixed rate 60-month term loan with a third party correspondent bank. This increase in borrowings was to strategically enhance capital levels in order to accommodate future growth expectations.

Net Interest Income

Net interest income for the third quarter of 2024 was $97.0 million compared to $91.3 million for the second quarter of 2024 and $89.4 million for the third quarter of 2023. The net interest margin for the third quarter of 2024 and second quarter of 2024 was 3.33% and 3.28%, respectively, an increase of five basis points quarter over quarter. During the third quarter of 2024, the average cost of interest-bearing liabilities increased by two basis points, while the average yield on interest-earning assets increased by six basis points.

The increase in net interest income for the third quarter of 2024 compared to the third quarter of 2023 was largely driven by growth in average loans and leases held for investment. Partially mitigating this increase was a decrease in the net interest margin by four basis points arising from an increase in deposits and borrowings, combined with the increase in average cost of funds, outpacing the increase in average yield on interest-earning assets.

Noninterest Income

Noninterest income for the third quarter of 2024 was $32.9 million, a decrease of $1.2 million compared to the second quarter of 2024, and a decrease of $5.0 million compared to the third quarter of 2023. The primary drivers in noninterest income changes are outlined below.

The loan servicing asset revaluation resulted in a loss of $4.2 million for the third quarter of 2024 compared to a $11.3 million gain for the third quarter of 2023. This decrease between periods was principally due to the third quarter of 2023 change in valuation techniques used to estimate the fair value of servicing rights which resulted in a nonrecurring gain of $13.7 million during that period.

Net gains on sales of loans was $16.6 million, a $2.3 million increase compared to the second quarter of 2024 and a $4.0 million increase compared to the third quarter of 2023. The increase in net gains on sales of loans for both compared periods was the result of higher levels of market premiums combined with increased loan sale volumes. The average guaranteed loan sale premium was 107%, 106% and 105% for the third and second quarters of 2024 and third quarter of 2023, respectively. The volume of guaranteed loans sold was $266.3 million for the third quarter of 2024 compared to $250.5 million sold in the second quarter of 2024 and $225.6 million sold in the third quarter of 2023.

Loans accounted for under the fair value option had a net gain of $2.3 million for the third quarter of 2024, compared to a net gain of $172 thousand for the second quarter of 2024 and a net loss of $568 thousand for the third quarter of 2023. The increased levels of net gains arising from the valuation of loans accounted for under the fair value option compared to the second quarter of 2024 was largely associated with lower market interest rates. The increase in net gains when compared to the third quarter of 2023 was principally due to the third quarter of 2023 change in valuation techniques used to estimate the fair value of loans measured at fair value, which resulted in a nonrecurring gain of $1.3 million during that period.

Management fee income decreased by $2.2 million, as compared to both the second quarter of 2024 and third quarter of 2023. This decrease was the result of a restructuring of the Canapi Funds in the third quarter of 2024. In connection with that restructuring, the Company’s subsidiary Canapi Advisors voluntarily withdrew as an advisor to the funds. The Company remains an investor in the Canapi Funds and continues its focus on new and emerging financial technology companies.

Other noninterest income for the third quarter of 2024 totaled $7.1 million compared to $11.0 million for the second quarter of 2024 and $3.5 million for the third quarter of 2023. The quarter over quarter decrease of $3.9 million was largely related to a $6.7 million gain arising from the sale of one of the Company’s aircraft in the second quarter of 2024, partially offset by a $2.4 million gain from the sale of a building in the third quarter of 2024. The $3.6 million increase compared to the third quarter of 2023 was largely related to the above mentioned $2.4 million gain from the sale of an idle building and accompanying land that was determined earlier in 2024 not to be best suited to serve the Company’s future expansion plans.

Noninterest Expense

Noninterest expense for the third quarter of 2024 totaled $77.6 million compared to $77.7 million for the second quarter of 2024 and $74.3 million for the third quarter of 2023. Compared to the third quarter of 2023, the increase in noninterest expense was principally impacted by smaller balance increases in various expense categories, partially offset by $2.2 million in decreased levels of FDIC insurance expense. The decrease in FDIC insurance expense was the product of favorable changes in the Company’s FDIC assessment rates.

Asset Quality

During the third quarter of 2024, the Company recognized net charge-offs for loans carried at historical cost of $1.7 million, compared to $8.3 million in the second quarter of 2024 and $9.1 million in the third quarter of 2023. Net charge-offs as a percentage of average held for investment loans and leases carried at historical cost, annualized, for the quarters ended September 30, 2024, June 30, 2024, and September 30, 2023, was 0.08%, 0.38% and 0.48%, respectively.

Unguaranteed nonperforming (nonaccrual) loans and leases, excluding $8.7 million and $9.6 million accounted for under the fair value option at September 30, 2024, and June 30, 2024, respectively, increased to $49.4 million, or 0.52% of loans and leases held for investment which are carried at historical cost, at September 30, 2024, compared to $37.3 million, or 0.42%, at June 30, 2024.

Provision for Credit Losses

The provision for credit losses for the third quarter of 2024 totaled $34.5 million compared to $11.8 million for the second quarter of 2024 and $10.3 million for the third quarter of 2023. The level of provision expense in the third quarter of 2024 was primarily the result of specific reserve increases on individually evaluated loans and continued growth of the loan and lease portfolio. Provision expense for three individually evaluated loan relationships amounted to $13.6 million, or 60.0% and 56.3% of the increase in the total provision for loan and lease losses when compared to the second quarter of 2024 and third quarter of 2023, respectively.

The allowance for credit losses on loans and leases totaled $168.7 million at September 30, 2024, compared to $137.9 million at June 30, 2024. The allowance for credit losses on loans and leases as a percentage of total loans and leases held for investment carried at historical cost was 1.78% and 1.57% at September 30, 2024, and June 30, 2024, respectively.

Income Tax

Income tax expense and related effective tax rate was $4.8 million and 27.0% for the third quarter of 2024, $9.1 million and 25.2% for the second quarter of 2024 and $3.0 million and 6.9% for the third quarter of 2023, respectively. The lower level of income tax expense for the third quarter of 2024 compared to the second quarter of 2024 was primarily the result of the decreased level of pretax income. The higher level of income tax expense for the third quarter of 2024 as compared to the third quarter of 2023 was primarily the result of lower levels of anticipated investment tax credits in 2024 as compared to the prior year.

Conference Call

Live Oak will host a conference call to discuss the Company’s financial results and business outlook tomorrow, October 24, 2024, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 04478. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:

Live Telephone Dial-In

U.S.: 800.549.8228
International: +1 646.564.2877
Pass Code: None Required

Live Webcast Log-In

Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required
Multi-Factor Code: Provided After Registration

Important Note Regarding Forward-Looking Statements

Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company’s status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of global health crises and pandemics, such as the Coronavirus Disease 2019 (COVID-19) pandemic, on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company’s ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company’s business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company’s ability to comply with regulatory requirements and expectations; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

About Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoakbank.com.

Contacts:

Live Oak Bancshares, Inc.
Quarterly Statements of Income (unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended															3Q 2024 Change vs.
	3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2023			2Q 2024			3Q 2023
Interest income																%			%
Loans and fees on loans	$	192,170		$	181,840		$	176,010		$	169,531		$	162,722			5.7			18.1
Investment securities, taxable		9,750			9,219			8,954			8,746			8,701			5.8			12.1
Other interest earning assets		7,016			7,389			7,456			8,259			9,188			(5.0	)		(23.6	)
Total interest income		208,936			198,448			192,420			186,536			180,611			5.3			15.7
Interest expense
Deposits		110,174			105,358			101,998			96,695			90,914			4.6			21.2
Borrowings		1,762			1,770			311			265			287			(0.5	)		513.9
Total interest expense		111,936			107,128			102,309			96,960			91,201			4.5			22.7
Net interest income		97,000			91,320			90,111			89,576			89,410			6.2			8.5
Provision for credit losses		34,502			11,765			16,364			8,995			10,279			193.3			235.7
Net interest income after provision for credit losses		62,498			79,555			73,747			80,581			79,131			(21.4	)		(21.0	)
Noninterest income
Loan servicing revenue		8,040			7,347			7,624			7,342			6,990			9.4			15.0
Loan servicing asset revaluation		(4,207	)		(2,878	)		(2,744	)		(3,974	)		11,335			(46.2	)		(137.1	)
Net gains on sales of loans		16,646			14,395			11,502			12,891			12,675			15.6			31.3
Net gain (loss) on loans accounted for under the fair value option		2,255			172			(219	)		(170	)		(568	)		1211.0			497.0
Equity method investments (loss) income		(1,393	)		(1,767	)		(5,022	)		47			(1,034	)		21.2			(34.7	)
Equity security investments gains (losses), net		909			161			(529	)		(384	)		(783	)		464.6			216.1
Lease income		2,424			2,423			2,453			2,439			2,498			—			(3.0	)
Management fee income		1,116			3,271			3,271			3,309			3,277			(65.9	)		(65.9	)
Other noninterest income		7,142			11,035			9,761			8,607			3,501			(35.3	)		104.0
Total noninterest income		32,932			34,159			26,097			30,107			37,891			(3.6	)		(13.1	)
Noninterest expense
Salaries and employee benefits		44,524			46,255			47,275			44,274			42,947			(3.7	)		3.7
Travel expense		2,344			2,328			2,438			1,544			2,197			0.7			6.7
Professional services expense		3,287			3,061			1,878			3,052			1,762			7.4			86.5
Advertising and marketing expense		2,473			3,004			3,692			2,501			3,446			(17.7	)		(28.2	)
Occupancy expense		2,807			2,388			2,247			2,231			2,129			17.5			31.8
Technology expense		9,081			7,996			7,723			8,402			7,722			13.6			17.6
Equipment expense		3,472			3,511			3,074			3,480			3,676			(1.1	)		(5.5	)
Other loan origination and maintenance expense		4,872			3,659			3,911			3,937			3,498			33.2			39.3
Renewable energy tax credit investment impairment (recovery)		115			170			(927	)		14,575			—			(32.4	)		100.0
FDIC insurance		1,933			2,649			3,200			4,091			4,115			(27.0	)		(53.0	)
Other expense		2,681			2,635			3,226			5,117			2,770			1.7			(3.2	)
Total noninterest expense		77,589			77,656			77,737			93,204			74,262			(0.1	)		4.5
Income before taxes		17,841			36,058			22,107			17,484			42,760			(50.5	)		(58.3	)
Income tax expense (benefit)		4,816			9,095			(5,479	)		1,321			2,967			(47.0	)		62.3
Net income	$	13,025		$	26,963		$	27,586		$	16,163		$	39,793			(51.7	)		(67.3	)
Earnings per share
Basic	$	0.28		$	0.60		$	0.62		$	0.36		$	0.89			(53.3	)		(68.5	)
Diluted	$	0.28		$	0.59		$	0.60		$	0.36		$	0.88			(52.5	)		(68.2	)
Weighted average shares outstanding
Basic		45,073,482			44,974,942			44,762,308			44,516,646			44,408,997
Diluted		45,953,947			45,525,082			45,641,210			45,306,506			45,268,745

Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)

	As of the quarter ended															3Q 2024 Change vs.
	3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2023			2Q 2024			3Q 2023
Assets																%			%
Cash and due from banks	$	666,585		$	615,449		$	597,394		$	582,540		$	534,774			8.3			24.6
Certificates of deposit with other banks		250			250			250			250			3,750			—			(93.3	)
Investment securities available-for-sale		1,233,466			1,151,195			1,120,622			1,126,160			1,099,878			7.1			12.1
Loans held for sale		359,977			363,632			310,749			387,037			572,604			(1.0	)		(37.1	)
Loans and leases held for investment⁽¹⁾		9,831,891			9,172,134			8,912,561			8,633,847			8,202,631			7.2			19.9
Allowance for credit losses on loans and leases		(168,737	)		(137,867	)		(139,041	)		(125,840	)		(121,273	)		(22.4	)		(39.1	)
Net loans and leases		9,663,154			9,034,267			8,773,520			8,508,007			8,081,358			7.0			19.6
Premises and equipment, net		267,032			267,864			258,071			257,881			258,041			(0.3	)		3.5
Foreclosed assets		8,015			8,015			8,561			6,481			6,701			—			19.6
Servicing assets		52,553			51,528			49,343			48,591			47,127			2.0			11.5
Other assets		356,314			376,370			387,059			354,476			346,227			(5.3	)		2.9
Total assets	$	12,607,346		$	11,868,570		$	11,505,569		$	11,271,423		$	10,950,460			6.2			15.1
Liabilities and shareholders’ equity
*Liabilities*
Deposits:
Noninterest-bearing	$	258,844		$	264,013		$	226,668		$	259,270		$	239,536			(2.0	)		8.1
Interest-bearing		11,141,703			10,443,018			10,156,693			10,015,749			9,764,106			6.7			14.1
Total deposits		11,400,547			10,707,031			10,383,361			10,275,019			10,003,642			6.5			14.0
Borrowings		115,371			117,745			120,242			23,354			25,847			(2.0	)		346.4
Other liabilities		83,672			82,745			74,248			70,384			70,603			1.1			18.5
Total liabilities		11,599,590			10,907,521			10,577,851			10,368,757			10,100,092			6.3			14.8
*Shareholders’ equity*
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding		—			—			—			—			—			—			—
Class A common stock (voting)		361,925			356,381			349,648			344,568			340,929			1.6			6.2
Class B common stock (non-voting)		—			—			—			—			—			—			—
Retained earnings		707,026			695,172			669,307			642,817			627,759			1.7			12.6
Accumulated other comprehensive loss		(61,195	)		(90,504	)		(91,237	)		(84,719	)		(118,320	)		32.4			48.3
Total shareholders’ equity		1,007,756			961,049			927,718			902,666			850,368			4.9			18.5
Total liabilities and shareholders’ equity	$	12,607,346		$	11,868,570		$	11,505,569		$	11,271,423		$	10,950,460			6.2			15.1

(1) Includes $343.4 million, $363.0 million, $379.2 million, $388.0 million and $410.1 million measured at fair value for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

Live Oak Bancshares, Inc.
Statements of Income (unaudited)
(Dollars in thousands, except per share data)

	Nine Months Ended
	September 30, 2024			September 30, 2023
Interest income
Loans and fees on loans	$	550,020		$	454,136
Investment securities, taxable		27,923			24,751
Other interest earning assets		21,861			22,852
Total interest income		599,804			501,739
Interest expense
Deposits		317,530			243,512
Borrowings		3,843			2,498
Total interest expense		321,373			246,010
Net interest income		278,431			255,729
Provision for credit losses		62,631			42,328
Net interest income after provision for credit losses		215,800			213,401
Noninterest income
Loan servicing revenue		23,011			20,057
Loan servicing asset revaluation		(9,829	)		8,860
Net gains on sales of loans		42,543			33,654
Net gain (loss) on loans accounted for under the fair value option		2,208			(3,369	)
Equity method investments (loss) income		(8,182	)		(6,041	)
Equity security investments gain (losses), net		541			(585	)
Lease income		7,300			7,568
Management fee income		7,658			10,015
Other noninterest income		27,938			11,467
Total noninterest income		93,188			81,626
Noninterest expense
Salaries and employee benefits		138,054			130,778
Travel expense		7,110			7,378
Professional services expense		8,226			4,685
Advertising and marketing expense		9,169			10,058
Occupancy expense		7,442			6,259
Technology expense		24,800			23,456
Equipment expense		10,057			11,517
Other loan origination and maintenance expense		12,442			10,867
Renewable energy tax credit investment (recovery) impairment		(642	)		69
FDIC insurance		7,782			12,579
Other expense		8,542			12,035
Total noninterest expense		232,982			229,681
Income before taxes		76,006			65,346
Income tax expense		8,432			7,611
Net income	$	67,574		$	57,735
Earnings per share
Basic	$	1.50		$	1.30
Diluted	$	1.48		$	1.28
Weighted average shares outstanding
Basic		44,937,409			44,298,798
Diluted		45,707,245			45,023,739

Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)

	As of and for the three months ended
	3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2023
Income Statement Data
Net income	$	13,025		$	26,963		$	27,586		$	16,163		$	39,793
Per Common Share
Net income, diluted	$	0.28		$	0.59		$	0.60		$	0.36		$	0.88
Dividends declared		0.03			0.03			0.03			0.03			0.03
Book value		22.32			21.35			20.64			20.23			19.12
Tangible book value⁽¹⁾		22.24			21.28			20.57			20.15			19.04
Performance Ratios
Return on average assets (annualized)		0.43	%		0.93	%		0.98	%		0.58	%		1.46	%
Return on average equity (annualized)		5.21			11.39			11.93			7.36			18.68
Net interest margin		3.33			3.28			3.33			3.32			3.37
Efficiency ratio⁽¹⁾		59.72			61.89			66.89			77.88			58.34
Noninterest income to total revenue		25.35			27.22			22.46			25.16			29.76
Selected Loan Metrics
Loans and leases originated	$	1,757,856		$	1,171,141		$	805,129		$	981,703		$	1,073,255
Outstanding balance of sold loans serviced		4,452,750			4,292,857			4,329,097			4,238,328			4,028,575
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment⁽³⁾		1.78	%		1.57	%		1.63	%		1.53	%		1.56	%
Net charge-offs⁽³⁾	$	1,710		$	8,253		$	3,163		$	4,428		$	9,122
Net charge-offs to average loans and leases held for investment^{(2) (3)}		0.08	%		0.38	%		0.15	%		0.22	%		0.48	%

Nonperforming loans and leases at historical cost⁽³⁾
Unguaranteed	$	49,398		$	37,340		$	43,117		$	39,285		$	33,255
Guaranteed		166,177			122,752			105,351			95,678			65,837
Total		215,575			160,092			148,468			134,963			99,092
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment⁽³⁾		0.52	%		0.42	%		0.51	%		0.48	%		0.43	%

Nonperforming loans at fair value⁽⁴⁾
Unguaranteed	$	8,672		$	9,590		$	7,942		$	7,230		$	6,518
Guaranteed		49,822			51,570			47,620			41,244			39,378
Total		58,494			61,160			55,562			48,474			45,896
Unguaranteed nonperforming fair value loans to fair value loans held for investment⁽⁴⁾		2.53	%		2.64	%		2.09	%		1.86	%		1.59	%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)		11.19	%		11.85	%		11.89	%		11.73	%		11.63	%
Tier 1 leverage capital (to average assets)		8.60			8.71			8.69			8.58			8.56

Notes to Quarterly Selected Financial Data
(1) See accompanying GAAP to Non-GAAP Reconciliation.
(2) Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
(3) Loans and leases at historical cost only (excludes loans measured at fair value).
(4) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).

Live Oak Bancshares, Inc.
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)

	Three Months Ended September 30, 2024								Three Months Ended June 30, 2024
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	519,340		$	7,016		5.37	%	$	555,570		$	7,389		5.35	%
Investment securities		1,287,410			9,750		3.01			1,263,675			9,219		2.93
Loans held for sale		409,902			9,859		9.57			387,824			9,329		9.67
Loans and leases held for investment⁽¹⁾		9,354,522			182,311		7.75			8,997,164			172,511		7.71
Total interest-earning assets		11,571,174			208,936		7.18			11,204,233			198,448		7.12
Less: Allowance for credit losses on loans and leases		(137,285	)							(136,668	)
Noninterest-earning assets		567,098								562,488
Total assets	$	12,000,987							$	11,630,053
Interest-bearing liabilities:
Interest-bearing checking	$	350,239		$	4,892		5.56	%	$	304,505		$	4,267		5.64	%
Savings		5,043,930			51,516		4.06			4,804,037			48,617		4.07
Money market accounts		134,481			190		0.56			128,625			186		0.58
Certificates of deposit		5,028,830			53,576		4.24			5,032,856			52,288		4.18
Total deposits		10,557,480			110,174		4.15			10,270,023			105,358		4.13
Borrowings		116,925			1,762		6.00			119,321			1,770		5.97
Total interest-bearing liabilities		10,674,405			111,936		4.17			10,389,344			107,128		4.15
Noninterest-bearing deposits		237,387								223,026
Noninterest-bearing liabilities		90,079								70,667
Shareholders’ equity		999,116								947,016
Total liabilities and shareholders’ equity	$	12,000,987							$	11,630,053
Net interest income and interest rate spread				$	97,000		3.01	%				$	91,320		2.97	%
Net interest margin							3.33								3.28
Ratio of average interest-earning assets to average interest-bearing liabilities							108.40	%							107.84	%

(1) Average loan and lease balances include non-accruing loans and leases.

Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)

	As of and for the three months ended
	3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2023
Total shareholders’ equity	$	1,007,756		$	961,049		$	927,718		$	902,666		$	850,368
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,606			1,644			1,682			1,721			1,759
Tangible shareholders’ equity (a)	$	1,004,353		$	957,608		$	924,239		$	899,148		$	846,812
Shares outstanding (c)		45,151,691			45,003,856			44,938,673			44,617,673			44,480,215
Total assets	$	12,607,346		$	11,868,570		$	11,505,569		$	11,271,423		$	10,950,460
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,606			1,644			1,682			1,721			1,759
Tangible assets (b)	$	12,603,943		$	11,865,129		$	11,502,090		$	11,267,905		$	10,946,904
Tangible shareholders’ equity to tangible assets (a/b)		7.97	%		8.07	%		8.04	%		7.98	%		7.74	%
Tangible book value per share (a/c)	$	22.24		$	21.28		$	20.57		$	20.15		$	19.04
Efficiency ratio:
Noninterest expense (d)	$	77,589		$	77,656		$	77,737		$	93,204		$	74,262
Net interest income		97,000			91,320			90,111			89,576			89,410
Noninterest income		32,932			34,159			26,097			30,107			37,891
Total revenue (e)	$	129,932		$	125,479		$	116,208		$	119,683		$	127,301
Efficiency ratio (d/e)		59.72	%		61.89	%		66.89	%		77.88	%		58.34	%
Pre-provision net revenue (e-d)	$	52,343		$	47,823		$	38,471		$	26,479		$	53,039

This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business, for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.

The MIL Network –

January 25, 2025

MIL-OSI: Brookfield Real Assets Income Fund Inc. Announces Quarterly Webcast

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Brookfield Public Securities Group LLC (“PSG”) will host a webcast for Brookfield Real Assets Income Fund Inc. (NYSE: RA) (the “Fund”) on Wednesday, October 30, 2024 at 4:30pm ET. PSG will provide an update on the Fund and on general market conditions.

There will be an opportunity to ask questions about the Fund during the call. Questions may also be submitted ahead of the call by sending an e-mail to ir@brookfieldoaktree.com.

Registration and Webcast Link: https://event.webcasts.com/starthere.jsp?ei=1690860&tp_key=3c44dc9cca

Audio only: +1 323-794-2442 or 800-289-0462
Event Code: 612518

It is not necessary to dial into the audio conference, unless you are unable to join via the webcast URL.

A replay will be available via this link shortly following the webcast. A transcript of the webcast will also be available by calling 855-777-8001 or by sending an e-mail request to the Fund at ir@brookfieldoaktree.com.

Brookfield Real Assets Income Fund Inc is managed by Brookfield Public Securities Group LLC (PSG). The Fund uses its website as a channel of distribution of material information about the Fund. Financial and other material information regarding the Fund is routinely posted on and accessible at https://www.brookfieldoaktree.com/fund/brookfield-real-assets-income-fund-inc

Contact information:

Investing involves risk; principal loss is possible.

A fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Read the prospectus carefully before investing.

Brookfield Real Assets Income Fund Inc. is distributed by Foreside Fund Services, LLC.

Quasar Distributors, LLC, provides filing administration for Brookfield Real Assets Income Fund Inc.

The MIL Network –

January 25, 2025

MIL-OSI: Update: Eagle Bancorp, Inc. Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

BETHESDA, Md., Oct. 23, 2024 (GLOBE NEWSWIRE) — Eagle Bancorp, Inc. (“Eagle”, the “Company”) (NASDAQ: EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the third quarter ended September 30, 2024.

Eagle reported net income of $21.8 million or $0.72 per share for the third quarter 2024, compared to a net loss of $83.8 million during the second quarter in which the Company recorded a $104.2 million impairment in the value of goodwill. Operating net income¹ in the second quarter, adjusted to exclude the impairment charge on goodwill, was $20.4 million or $0.67 per share per diluted share. Pre-provision net revenue (“PPNR”)¹ in the third quarter was $35.2 million compared to a pre-provision net loss of $69.8 million for the prior quarter, or $34.4 million of PPNR when adjusted to exclude the impairment charge on goodwill¹.

The $1.4 million increase in operating net income¹ over the prior quarter is attributed to a positive variance of $2.2 million related to the change in provision for unfunded commitments; $1.6 million increase in non-interest income; and a $490 thousand increase in net interest income, offset by a $1.3 million increase in operating non-interest expense, adjusted to exclude the impairment charge on goodwill, and a $1.1 million increase in provision for credit losses.

“We continue to strategically position the Company for future growth as evidenced by actions taken during the quarter with the refinancing of our maturing subordinated debt and the recalibration of our common dividend strategy,” said Susan G. Riel, President and Chief Executive Officer of the Company. “We announced the addition of Evelyn Lee to our senior leadership as our Chief Lending Officer for our commercial lending team. As a 25 year banker in the Washington D.C. market, I am excited about accomplishing our strategic goal of continuing to build out our commercial banker group and pursuing diversification of the loan portfolio and growing our relationship deposits,” added Ms. Riel.

Eric R. Newell, Chief Financial Officer of the Company said, “Raising senior debt in the third quarter demonstrates the confidence debt investors have in our vision and the future of the Company. Operating performance was stable from last quarter evidenced by operating net income¹ increasing $1.4 million to $21.8 million in the third quarter. We continued to build our reserve for credit losses, with coverage as a percentage of total held for investment loans at 1.40% increasing 7 basis points from last quarter. Common equity tier one capital increased to 14.5% and our tangible common equity¹ ratio exceeds 10%.”

Ms. Riel added, “I thank all of our employees for their hard work and their commitment to a culture of respect, diversity and inclusion in both the workplace and the communities we serve.”

Third Quarter 2024 Highlights

The Company repaid $70 million of maturing subordinated debt and issued $77.7 million of 10% unsecured senior debt maturing September 30, 2029.
During the quarter, the Company announced a recalibration of the common stock dividend to $0.165 per share from $0.45 per share in the second quarter an action estimated to retain an additional $32 million of capital annually to meet growth and investment objectives.
The ACL as a percentage of total loans held for investment was 1.40% at quarter-end; up from 1.33% at the prior quarter-end. Performing office coverage² was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
Nonperforming assets increased $38.2 million to $137.1 million as of September 30, 2024 and were 1.22% of total assets compared to 0.88% as of June 30, 2024. Inflows to non-performing loans in the quarter totaled $45.5 million offset by $9 million of outflows, of which $5 million was the loan held for sale at June 30, 2024 and an increase of other real estate owned of $2.0 million. The inflows were predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
Substandard loans declined $17.0 million to $391.3 million and special mention loans increased $57.1 million to $365.0 million at September 30, 2024.
Net charge-offs for the third quarter were 0.26% compared to 0.11% for the second quarter 2024. Of the total $5.3 million of net charge offs in the quarter, $3.8 million is associated with a senior living property that has not stabilized.
The net interest margin (“NIM”) decreased slightly to 2.37% for the third quarter 2024, compared to 2.40% for the prior quarter, primarily due to continued decline in average non-interest bearing deposits. Net interest income increased $490 thousand from the second quarter to $71.8 million in the third quarter.
At quarter-end, the common equity ratio, tangible common equity ratio¹, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.86%, 10.86%, and 14.54%, respectively.
Total estimated insured deposits at quarter-end were $6.4 billion, or 74.5% of deposits, stable from the second quarter total of 72.5% of deposits.
Total on-balance sheet liquidity and available capacity was $4.6 billion at quarter-end compared to $4.0 billion at June 30, 2024.

Income Statement

Net interest income was $71.8 million for the third quarter 2024, compared to $71.4 million for the prior quarter. The increase in net interest income was primarily driven by an increase in the average balances of deposits held with other banks and average loans partially offset by higher average interest-bearing deposits and higher rates paid on those deposits in the third quarter from the prior quarter.
Provision for credit losses was $10.1 million for the third quarter 2024, compared to $9.0 million for the prior quarter. The increase in the provision quarter over quarter reflects higher net charge-offs in the third quarter from the prior quarter. Reserve for unfunded commitments was a reversal of $1.6 million due to lower unfunded commitments in our construction portfolio. This compared to a reserve for unfunded commitments in the prior quarter of $0.6 million.
Noninterest income was $6.95 million for the third quarter 2024, compared to $5.33 million for the prior quarter. The primary driver for the increase was higher swap fee income.
Noninterest expense was $43.6 million for the third quarter 2024, compared to $146.5 million for the prior quarter. The decrease over the comparative quarters was primarily due to a goodwill impairment charge of $104.2 million in the second quarter 2024. When excluding the goodwill impairment charge, the increase quarter over quarter was associated with increased FDIC insurance expense.

Loans and Funding

Total loans were $8.0 billion at September 30, 2024, down 0.4% from the prior quarter-end. The decrease in total loans was driven by a reduction in commercial loans and income producing commercial real estate loans from the prior quarter-end, partially offset by increased fundings of ongoing construction projects for commercial and residential properties.
At September 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 10.8% of the total loan portfolio, down from 11.3% at the prior quarter-end.

Total deposits at quarter-end were $8.5 billion, up $273.5 million, or 3.3%, from the prior quarter-end. The increase was primarily attributable to an increase in time deposits from the company’s digital acquisition channel. Period end deposits have increased $165 million when compared to prior year comparable period end of September 30, 2023.
Other short-term borrowings were $1.2 billion at September 30, 2024, down 25.3% from the prior quarter-end as maturing FHLB borrowings were paid down with increased cash from deposits.

Asset Quality

Allowance for credit losses was 1.40% of total loans held for investment at September 30, 2024, compared to 1.33% at the prior quarter-end. Performing office coverage was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
Net charge-offs were $5.3 million for the quarter compared to $2.3 million in the second quarter of 2024.
Nonperforming assets were $137.1 million at September 30, 2024.
- NPAs as a percentage of assets were 1.22% at September 30, 2024, compared to 0.88% at the prior quarter-end. At September 30, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $2.7 million. The increase in NPAs was predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
- Loans 30-89 days past due were $56.3 million at September 30, 2024, compared to $8.4 million at the prior quarter-end. Of the total increase, $25 million was brought current subsequent to quarter-end.

Capital

Total shareholders’ equity was $1.2 billion at September 30, 2024, up 4.8% from the prior quarter-end. The increase in shareholders’ equity of $56.0 million was primarily due to increased valuations of available-for-sale securities and an increase in retained earnings.
Book value per share and Tangible book value per share³ was $40.61, up $1.86 from the prior quarter-end.

Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended September 30, 2024 as compared to the three months ended June 30, 2024 and September 30, 2023, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other reports filed with the SEC.

About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates.

Conference call: Eagle Bancorp will host a conference call to discuss its third quarter 2024 financial results on Thursday, October 24, 2024 at 10:00 a.m. Eastern Time.

The listen-only webcast can be accessed at:

https://edge.media-server.com/mmc/p/79xpxyi2
For analysts who wish to participate in the conference call, please register at the following URL:
https://register.vevent.com/register/BI6cdce3c45a9f49219ea94a6f7c9fa083

A replay of the conference call will be available on the Company’s website through November 7, 2024: https://www.eaglebankcorp.com/

Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “can,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” “could,” “strive,” “feel” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market (including volatility in interest rates and interest rate policy; the current inflationary environment; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters’ performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Eagle Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Interest Income
Interest and fees on loans	$	139,836		$	137,616		$	132,273
Interest and dividends on investment securities		12,578			12,405			13,732
Interest on balances with other banks and short-term investments		21,296			19,568			15,067
Interest on federal funds sold		103			142			77
Total interest income		173,813			169,731			161,149
Interest Expense
Interest on deposits		81,190			76,846			70,929
Interest on customer repurchase agreements		332			330			311
Interest on other short-term borrowings		20,448			21,202			18,152
Interest on long-term borrowings	$	—			—			1,038
Total interest expense		101,970			98,378			90,430
Net Interest Income		71,843			71,353			70,719
Provision for Credit Losses		10,094			8,959			5,644
Provision (Reversal) for Credit Losses for Unfunded Commitments		(1,593	)		608			(839	)
Net Interest Income After Provision for Credit Losses		63,342			61,786			65,914

Noninterest Income
Service charges on deposits		1,747			1,653			1,631
Gain on sale of loans		20			37			(5	)
Net gain on sale of investment securities		3			3			5
Increase in cash surrender value of bank-owned life insurance		731			709			669
Other income		4,450			2,930			4,047
Total noninterest income		6,951			5,332			6,347
Noninterest Expense
Salaries and employee benefits		21,675			21,770			21,549
Premises and equipment expenses		2,794			2,894			3,095
Marketing and advertising		1,588			1,662			768
Data processing		3,435			3,495			3,194
Legal, accounting and professional fees		3,433			2,705			2,162
FDIC insurance		7,399			5,917			3,342
Goodwill impairment		—			104,168			—
Other expenses		3,290			3,880			3,523
Total noninterest expense		43,614			146,491			37,633
(Loss) Income Before Income Tax Expense		26,679			(79,373	)		34,628
Income Tax Expense		4,864			4,429			7,245
Net (Loss) Income	$	21,815		$	(83,802	)	$	27,383

(Loss) Earnings Per Common Share
Basic	$	0.72		$	(2.78	)	$	0.91
Diluted	$	0.72		$	(2.78	)	$	0.91

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
	September 30,			June 30,			September 30,
		2024			2024			2023
Assets
Cash and due from banks	$	16,383		$	10,803		$	8,625
Federal funds sold		9,610			5,802			13,611
Interest-bearing deposits with banks and other short-term investments		584,491			526,228			235,819
Investment securities available-for-sale at fair value (amortized cost of $1,550,038, $1,613,659, and $1,732,722, respectively, and allowance for credit losses of $17, $17 and $17, respectively)		1,433,006			1,584,435			1,474,945
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,237, $2,012 and $2,010, respectively (fair value of $868,425, $856,275 and $923,313, respectively)		961,925			982,955			1,032,485
Federal Reserve and Federal Home Loan Bank stock		37,728			54,274			25,689
Loans held for sale		—			5,000			—
Loans		7,970,269			8,001,739			7,916,391
Less: allowance for credit losses		(111,867	)		(106,301	)		(83,332	)
Loans, net		7,858,402			7,895,438			7,833,059
Premises and equipment, net		8,291			8,788			11,216
Operating lease right-of-use assets		15,167			16,250			20,151
Deferred income taxes		74,381			86,236			98,987
Bank-owned life insurance		115,064			114,333			112,234
Goodwill and intangible assets, net		21			129			105,239
Other real estate owned		2,743			773			1,487
Other assets		167,840			174,396			190,667
Total Assets	$	11,285,052		$	11,465,840		$	11,164,214
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing demand	$	1,609,823		$	1,693,955		$	2,072,665
Interest-bearing transaction		903,300			1,123,980			932,779
Savings and money market		3,316,819			3,165,314			3,129,773
Time deposits		2,710,908			2,284,099			2,241,089
Total deposits		8,540,850			8,267,348			8,376,306
Customer repurchase agreements		32,040			39,220			25,689
Other short-term borrowings		1,240,000			1,659,979			1,300,001
Long-term borrowings		75,812			—			69,887
Operating lease liabilities		18,755			20,016			24,422
Reserve for unfunded commitments		5,060			6,653			6,183
Other liabilities		147,111			139,348			145,842
Total Liabilities		10,059,628			10,132,564			9,948,330
Shareholders’ Equity
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,173,200 30,180,482, and 30,185,732, respectively		298			297			296
Additional paid-in capital		382,284			380,142			372,394
Retained earnings		967,019			949,863			1,054,699
Accumulated other comprehensive loss		(124,177	)		(160,843	)		(211,505	)
Total Shareholders’ Equity		1,225,424			1,169,459			1,215,884
Total Liabilities and Shareholders’ Equity	$	11,285,052		$	11,302,023		$	11,164,214

Loan Mix and Asset Quality (Dollars in thousands)

	September 30,					June 30,					September 30,
		2024					2024					2023
	Amount		%			Amount		%			Amount		%
Loan Balances – Period End:
Commercial	$	1,154,349		14	%	$	1,238,261		15	%	$	1,418,760		18	%
PPP loans		348		—	%		407		—	%		588		—	%
Income producing – commercial real estate		4,155,120		52	%		4,217,525		53	%		4,147,301		52	%
Owner occupied – commercial real estate		1,276,240		16	%		1,263,714		16	%		1,182,959		15	%
Real estate mortgage – residential		57,223		1	%		61,338		1	%		76,511		1	%
Construction – commercial and residential		1,174,591		15	%		1,063,764		13	%		904,282		11	%
Construction – C&I (owner occupied)		100,662		1	%		99,526		1	%		129,616		2	%
Home equity		51,567		1	%		52,773		1	%		53,917		1	%
Other consumer		169		—	%		4,431		—	%		2,457		—	%
Total loans	$	7,970,269		100	%	$	8,001,739		100	%	$	7,916,391		100	%

	Three Months Ended or As Of
	September 30,		June 30,		September 30,
		2024		2024		2023
Asset Quality:
Net charge-offs	$	5,303	$	2,285	$	340
Nonperforming loans	$	134,371	$	98,169	$	70,148
Other real estate owned	$	2,743	$	773	$	1,757
Nonperforming assets	$	137,114	$	98,942	$	71,905
Special mention	$	364,983	$	307,906	$	158,182
Substandard	$	391,301	$	408,311	$	219,001

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended
	September 30, 2024								June 30, 2024
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,455,007		$	19,568		5.41	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		8,045			100		5.00	%
Loans ^{(1) (2)}	$	8,026,524			139,835		6.93	%		8,003,206			137,516		6.91	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,478,856			7,048		1.92	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		995,274			5,357		2.16	%
Federal funds sold		10,003			103		4.10	%		13,058			142		4.37	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,953,446		$	169,731		5.71	%
Total noninterest earning assets		397,006								510,725
Less: allowance for credit losses		(108,998	)							(102,671	)
Total noninterest earning assets		288,008								408,054
TOTAL ASSETS	$	12,360,899							$	12,361,500

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest-bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,636,795		$	16,100		3.96	%
Savings and money market		3,254,128			34,896		4.27	%		3,321,001			33,451		4.05	%
Time deposits		2,517,944			31,698		5.01	%		2,215,693			27,295		4.95	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		7,173,489			76,846		4.31	%
Customer repurchase agreements		38,045			332		3.47	%		38,599			330		3.44	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,682,684			21,202		5.07	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,894,772		$	98,378		4.45	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,051,777
Other liabilities		160,272								151,324
Total noninterest bearing liabilities		2,075,938								2,203,101
Shareholders’ equity		1,201,477								1,263,627
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	12,361,500
Net interest income				$	71,843							$	71,353
Net interest spread							1.26	%							1.26	%
Net interest margin							2.37	%							2.40	%
Cost of funds							3.69	%							3.61	%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.8 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended September 30,
		2024								2023
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,127,451		$	15,067		5.30	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		—			—		—	%
Loans ^{(1) (2)}		8,026,524			139,835		6.93	%		7,795,144			132,273		6.73	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,554,348			8,126		2.07	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		1,047,515			5,606		2.12	%
Federal funds sold		10,003			103		4.10	%		7,728			77		3.95	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,532,186		$	161,149		5.54	%
Total noninterest earning assets		397,006								489,683
Less: allowance for credit losses		(108,998	)							(78,964	)
Total noninterest earning assets		288,008								410,719
TOTAL ASSETS	$	12,360,899							$	11,942,905

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,421,522		$	12,785		3.57	%
Savings and money market		3,254,128			34,896		4.27	%		3,113,755			32,855		4.19	%
Time deposits		2,517,944			31,698		5.01	%		2,162,582			25,289		4.64	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		6,697,859			70,929		4.20	%
Customer repurchase agreements		38,045			332		3.47	%		36,082			311		3.42	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,610,097			19,190		4.73	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,344,038		$	90,430		4.30	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,248,782
Other liabilities		160,272								114,923
Total noninterest bearing liabilities		2,075,938								2,363,705
Shareholders’ equity		1,201,477								1,235,162
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	11,942,905
Net interest income				$	71,843							$	70,719
Net interest spread							1.26	%							1.24	%
Net interest margin							2.37	%							2.43	%
Cost of funds							3.69	%							3.39	%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			June 30,			March 31,			December 31,
Income Statements:		2024			2024			2024			2023			2023			2023			2023			2022
Total interest income	$	173,813		$	169,731		$	175,602		$	167,421		$	161,149		$	156,510		$	140,247		$	129,130
Total interest expense		101,970			98,378			100,904			94,429			90,430			84,699			65,223			43,530
Net interest income		71,843			71,353			74,698			72,992			70,719			71,811			75,024			85,600
Provision (reversal) for credit losses		10,094			8,959			35,175			14,490			5,644			5,238			6,164			(464	)
Provision (reversal) for credit losses for unfunded commitments		(1,593	)		608			456			(594	)		(839	)		318			848			161
Net interest income after provision for (reversal of) credit losses		63,342			61,786			39,067			59,096			65,914			66,255			68,012			85,903
Noninterest income before investment gain (loss)		6,948			5,329			3,585			2,891			6,342			8,593			3,721			5,326
Net gain (loss) on sale of investment securities		3			3			4			3			5			2			(21	)		3
Total noninterest income		6,951			5,332			3,589			2,894			6,347			8,595			3,700			5,329
Salaries and employee benefits		21,675			21,770			21,726			18,416			21,549			21,957			24,174			23,691
Premises and equipment expenses		2,794			2,894			3,059			2,967			3,095			3,227			3,317			3,292
Marketing and advertising		1,588			1,662			859			1,071			768			884			636			1,290
Goodwill impairment		—			104,168			—			—			—			—			—			—
Other expenses		17,557			15,997			14,353			14,644			12,221			11,910			12,457			10,645
Total noninterest expense		43,614			146,491			39,997			37,098			37,633			37,978			40,584			38,918
(Loss) income before income tax expense		26,679			(79,373	)		2,659			24,892			34,628			36,872			31,128			52,314
Income tax expense		4,864			4,429			2,997			4,667			7,245			8,180			6,894			10,121
Net (loss) income	$	21,815		$	(83,802	)	$	(338	)	$	20,225		$	27,383		$	28,692		$	24,234		$	42,193
Per Share Data:
(Loss) earnings per weighted average common share, basic	$	0.72		$	(2.78	)	$	(0.01	)	$	0.68		$	0.91		$	0.94		$	0.78		$	1.32
(Loss) earnings per weighted average common share, diluted	$	0.72		$	(2.78	)	$	(0.01	)	$	0.67		$	0.91		$	0.94		$	0.78		$	1.32
Weighted average common shares outstanding, basic		30,173,852			30,185,609			30,068,173			29,925,557			29,910,218			30,454,766			31,109,267			31,819,631
Weighted average common shares outstanding, diluted		30,241,699			30,185,609			30,068,173			29,966,962			29,944,692			30,505,468			31,180,346			31,898,619
Actual shares outstanding at period end		30,173,200			30,180,482			30,185,732			29,925,612			29,917,982			29,912,082			31,111,647			31,346,903
Book value per common share at period end	$	40.61		$	38.75		$	41.72		$	42.58		$	40.64		$	40.78		$	39.92		$	39.18
Tangible book value per common share at period end ⁽¹⁾	$	40.61		$	38.74		$	38.26		$	39.08		$	37.12		$	37.29		$	36.57		$	35.86
Dividend per common share	$	0.165		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45
Performance Ratios (annualized):
Return on average assets		0.70	%		(2.73	)%		(0.01	)%		0.65	%		0.91	%		0.96	%		0.86	%		1.49	%
Return on average common equity		7.22	%		(26.67	)%		(0.11	)%		6.48	%		8.80	%		9.24	%		7.92	%		13.57	%
Return on average tangible common equity ⁽¹⁾		7.22	%		(28.96	)%		(0.11	)%		7.08	%		9.61	%		10.08	%		8.65	%		14.82	%
Net interest margin		2.37	%		2.40	%		2.43	%		2.45	%		2.43	%		2.49	%		2.77	%		3.14	%
Efficiency ratio ⁽²⁾		55.4	%		191.0	%		51.1	%		48.9	%		48.8	%		47.2	%		51.6	%		42.8	%
Other Ratios:
Allowance for credit losses to total loans ⁽³⁾		1.40	%		1.33	%		1.25	%		1.08	%		1.05	%		1.00	%		1.01	%		0.97	%
Allowance for credit losses to total nonperforming loans		83	%		110	%		109	%		131	%		119	%		268	%		1,160	%		1,151	%
Nonperforming assets to total assets		1.22	%		0.88	%		0.79	%		0.57	%		0.64	%		0.28	%		0.08	%		0.08	%
Net charge-offs (recoveries) (annualized) to average total loans ⁽³⁾		0.26	%		0.11	%		1.07	%		0.60	%		0.02	%		0.29	%		0.05	%		0.05	%
Tier 1 capital (to average assets)		10.94	%		10.58	%		10.26	%		10.73	%		10.96	%		10.84	%		11.42	%		11.63	%
Total capital (to risk weighted assets)		15.74	%		15.07	%		14.87	%		14.79	%		14.54	%		14.51	%		14.74	%		14.94	%
Common equity tier 1 capital (to risk weighted assets)		14.54	%		13.92	%		13.80	%		13.90	%		13.68	%		13.55	%		13.75	%		14.03	%
Tangible common equity ratio ⁽¹⁾		10.86	%		10.35	%		10.03	%		10.12	%		10.04	%		10.21	%		10.36	%		10.18	%
Average Balances (in thousands):
Total assets	$	12,360,899		$	12,361,500		$	12,784,470		$	12,283,303		$	11,942,905		$	11,960,111		$	11,426,056		$	11,255,956
Total earning assets	$	12,072,891		$	11,953,446		$	12,365,497		$	11,837,722		$	11,532,186		$	11,546,050		$	11,004,817		$	10,829,703
Total loans ⁽³⁾	$	8,026,524		$	8,003,206		$	7,988,941		$	7,963,074		$	7,795,144		$	7,790,555		$	7,712,023		$	7,379,198
Total deposits	$	9,344,414		$	9,225,266		$	9,501,661		$	9,471,369		$	8,946,641		$	8,514,938		$	8,734,125		$	9,524,139
Total borrowings	$	1,654,736		$	1,721,283		$	1,832,947		$	1,401,917		$	1,646,179		$	2,102,507		$	1,359,463		$	411,060
Total shareholders’ equity	$	1,201,477		$	1,263,627		$	1,289,656		$	1,238,763		$	1,235,162		$	1,245,647		$	1,240,978		$	1,233,705

(1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3) Excludes loans held for sale.

GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
(dollars in thousands, except per share data)

	September 30,			June 30,			September 30,
		2024			2024			2023
Tangible common equity
Common shareholders’ equity	$	1,225,424		$	1,169,459		$	1,215,884
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible common equity	$	1,225,403		$	1,169,330		$	1,110,645

Tangible common equity ratio
Total assets	$	11,285,052		$	11,302,023		$	11,164,214
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible assets	$	11,285,031		$	11,301,894		$	11,058,975

Tangible common equity ratio		10.86	%		10.35	%		10.04	%

Per share calculations
Book value per common share	$	40.61		$	38.75		$	40.64
Less: Intangible book value per common share		—			(0.01	)		(3.52	)
Tangible book value per common share	$	40.61		$	38.74		$	37.12

Shares outstanding at period end		30,173,200			30,180,482			29,917,982

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Average tangible common equity
Average common shareholders’ equity	$	1,201,477		$	1,263,627		$	1,235,162
Less: Average intangible assets		(24	)		(99,827	)		(104,639	)
Average tangible common equity	$	1,201,453		$	1,163,800		$	1,130,523

Return on average tangible common equity
Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Return on average tangible common equity		7.22	%	(28.96)%				9.61	%

Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Add back of goodwill impairment	$	—			104,168			—
Operating net (loss) income (Non-GAAP)		21,815			20,366			27,383
Operating Return on average tangible common equity (Non-GAAP)		7.22	%		7.04	%		9.61	%

Efficiency ratio
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Operating revenue	$	78,794		$	76,685		$	77,066
Noninterest expense	$	43,614		$	146,491		$	37,633
Add back of goodwill impairment		—			(104,168	)		—
Operating Noninterest expense (Non-GAAP)		43,614			42,323			37,633

Efficiency ratio		55.35	%		191.03	%		48.83	%
Operating Efficiency ratio (Non-GAAP)		55.35	%		55.19	%		48.83	%

Pre-provision net revenue
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Less: Noninterest expense		(43,614	)		(146,491	)		(37,633	)
Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433

Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433
Add back of goodwill impairment	$	—		$	104,168		$	—
Operating Pre-provision net revenue (Non-GAAP)	$	35,180		$	34,362		$	39,433

Tangible common equity, tangible common equity to tangible assets (the “tangible common equity ratio”), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders’ equity, or tangible common equity, and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders’ equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company calculates the operating annualized return on average tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions.

The efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank’s overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

	Three Months Ended
	September 30,		June 30,			September 30,
		2024		2024			2023
Net (loss) income	$	21,815	$	(83,802	)	$	27,383
Add back of goodwill impairment		—		104,168			—
Operating Net (loss) income (Non-GAAP)	$	21,815	$	20,366		$	27,383

(Loss) earnings per share (diluted)⁴	$	0.72	$	(2.78	)	$	0.91
Add back of goodwill impairment per share (diluted)		—		3.45			—
Operating earnings (loss) per share (diluted) (Non-GAAP)	$	0.72	$	0.67		$	0.91

Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management’s evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company’s goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company’s performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.

_______________¹ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
²Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
³ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
⁴ For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.

EAGLE BANCORP, INC.
CONTACT:
Eric R. Newell
240.497.1796

For the September 30, 2024 Earnings Presentation, click http://ml.globenewswire.com/Resource/Download/d55e221f-6ef9-45bd-8784-011bf19dce58

The MIL Network –

January 25, 2025

MIL-OSI USA: Hold DOJ Accountable for Failure to Prosecute Noncitizen Voter Registration

US Senate News:

Source: United States Senator for Wisconsin Ron Johnson

It should be obvious to everyone — even Democrats — that we should prevent illegal immigrants from voting. Unfortunately, most Democrats in Congress do not agree. I was happy to cosponsor the SAVE Act in the Senate. This legislation aimed to secure our elections by requiring proof of citizenship to vote. It passed in the House, but not the Senate.

On October 2, I joined Republican colleagues in a letter to U.S. Attorney General Merrick Garland exposing the Department of Justice’s (DOJ) failure to prevent noncitizens from registering to vote in America’s federal elections and its refusal to prosecute those who have done so.

We need more information about the incidence of noncitizens registering to vote, and steps that the DOJ is taking to deal with the issue and secure U.S. elections.

In recent weeks, I have written two op-eds highlighting my concerns with election integrity. I urge you to read both.

The Daily Caller: FBI Ignoring Real Threats To Election Integrity

The Federalist: Democrat-Controlled States Refuse To Clean Voter Rolls And Fix Election Problems

Under the Biden-Harris administration, more than 500,000 unaccompanied migrant children have crossed the southwest border without a parent or guardian to provide care.

Last month, I joined a letter to President Biden and Vice President Harris calling out abuses in their Unaccompanied Migrant Children Program, namely the Department of Health and Human Services (HHS)’s cover-up of the crisis. HHS has failed to comply with two out of three Department of Homeland Security subpoenas and other information requests issued amid its investigation into more than 100 suspicious sponsors.

The Biden-Harris administration limited background checks for sponsors of unaccompanied children, cut back on familial DNA testing at the border, and decreased information sharing with law enforcement.

Cartel trafficking activity surged an estimated 2,500% from the Trump administration to the middle of the Biden-Harris term in 2022.

I joined another letter demanding Biden and Harris collect DNA samples from every immigrant the Department of Homeland Security (DHS) encounters, per the DNA Fingerprint Act of 2005. DHS missed three separate opportunities to gather DNA from the illegal immigrant who murdered Rachel Morin, a Maryland mother of five.

MILTON: The Milton Area Chamber of Commerce hosted a town hall at the Milton House Museum. Before the event, I took a fascinating tour of Wisconsin’s only certified Underground Railroad site which is designated a National Historic Landmark.

REESEVILLE: Caine Warehousing hosted a town hall at their Dodge County campus. It was an honor to meet the three generations of Caines who run this successful family business.

WATERTOWN: American Disposal and Lueck Recycling, another family run business, hosted a town hall at their facility. People are very concerned about open borders, the economy, and parental rights.

WATERTOWN: I always look forward to my visits to Maranatha Baptist University. I held a meeting with campus leadership and then answered questions from students, staff, and community members.

WHITEWATER: I enjoyed meeting with students at the University of Wisconsin Whitewater. When asked by a campus reporter about my main message for young people, I responded “jealously guard your freedom.”

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Brownley, Budzinski Introduce Legislation to Establish VA Veterans Experience Office and Amplify Veteran Voices on Care and Services

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

Washington, DC – Today, Congresswoman Julia Brownley (CA-26) and Congresswoman Nikki Budzinski (IL-13) announced the introduction of the Improving Veterans Experience Act, a bill to codify the Veterans Experience Office (VEO) within the U.S. Department of Veterans Affairs (VA). Established in 2015, the VEO gathers feedback directly from veterans, their families, and caregivers on their experience with VA and incorporates the information to improve services. The VEO has been crucial to improving veterans’ trust in VA outpatient care, expanding outreach to women veterans, and creating a more effective and supportive mobile app that provides veterans with information and resources about care and benefits.

“As a member of the House Veterans’ Affairs Committee, one of my primary goals has been to ensure our nation’s veterans have access to the timely, high-quality care they have earned. By permanently establishing the Veterans Experience Office, the VA can continue to carry out its mission to provide the highest quality customer experience when delivering care, benefits, and services to veterans and their families. I applaud Congresswoman Budzinski’s leadership and commitment to fulfilling the solemn promise of serving our veterans as well as they have served our country,” said Congresswoman Brownley, Ranking Member of the House Veterans’ Affairs Subcommittee on Health.

“There is no better way to improve VA services than to hear from the veterans, family members and caregivers who are navigating the process firsthand,” said Congresswoman Budzinski. “Too often, a lack of trust, complicated documents and confusing processes discourage veterans from reaching out for the help they need. By giving veterans a voice and putting their insights into action, the VEO has been instrumental in making VA services more accessible. Veterans can only receive the excellent care they deserve when their feedback is prioritized and I’m proud to introduce this legislation alongside Congresswoman Brownley to ensure the VEO can continue to build trust and improve veterans’ experiences with the VA.”

“The Veterans Experience Office (VEO) serves as the customer experience engine reflecting the voice of the veteran. Since its establishment in 2015, veterans trust in the VA has increased by 25%, reaching all-time highs. DAV thanks Rep. Budzinski for introducing the Improving Veterans Experience Act of 2024, which would codify the VEO within the VA and allow it to continue collecting essential feedback from veterans, their families and caregivers on how to enhance VA services,” said Joy Ilem, National Legislative Director of Disabled American Veterans.

In 2016, the VEO helped launch the first VA-wide customer experience survey to collect feedback on the ease, effectiveness and emotional resonance of VA services. According to the VA, veteran trust in the agency has increased by 25% since the survey was established, reaching all-time highs. In 2018, the VEO overhauled the VA website after hearing extensive feedback from veterans that it was difficult to use.

The Improving Veterans Experience Act is endorsed by Disabled American Veterans (DAV) and Paralyzed Veterans of America (PVA).

Read the full text of the bill here.

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Issues: 118th Congress, Veterans’ Affairs

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Brownley, Schneider, Kildee Introduce Legislation to Expand Sustainable Aviation Fuel Production and Reduce Carbon Emissions

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

Washington, DC – Today, Congresswoman Julia Brownley (CA-26), Congressman Brad Schneider (IL-10), and Congressman Dan Kildee (MI-08) announced the introduction of the Expanding Clean Fuel Production Act, a bill that would extend the clean fuel production tax credit, also known as Section 45z, of the Inflation Reduction Act for 10 years. The Inflation Reduction Act created the clean fuel production credit (CFPC) for transportation fuel with zero or low greenhouse gas emissions, including sustainable aviation fuel (SAF). This credit currently expires at the end of 2027.

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

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

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

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

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

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

The Inflation Reduction Act (IRA) of 2022 enacted a tax credit for the production of SAF, aiming to halve carbon emissions in the aviation sector. The credit was inspired by a SAF credit included in the Sustainable Skies Act, which Congresswoman Brownley authored with Representatives Schneider and Kildee in 2021.

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Issues: 118th Congress, Climate Crisis, Energy and Environment, Transportation and Infrastructure

MIL OSI USA News –

January 25, 2025

Category: Transport

Hassan Zeineddine

Khadija

Um Mohammad

Hala

Shams Al Mahmoud, Marimar, and Kazem

Najah Ashour

Beyond survival: Helping children and adults cope with the traumas of war in Lebanon

MSF urges for protection of civilians and medical staff amid Israeli bombardment in Lebanon

Israeli bombardment in Lebanon is causing mass displacement and urgent humanitarian needs

‘A mushroom cloud igniting the sky’

‘Only a very slight health hazard’

‘In our blood’

The scramble for the Pacific

‘No longer angry’

Radioactive colonialism

Updates to this page

Citing severe damages to Central and Eastern Oregon, lawmakers’ letter asks President Biden “to swiftly provide the federal resources for our communities to recover and rebuild.”

Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Inflation: Drivers and Dynamics Conference 2024 organised by the Federal Reserve Bank of Cleveland and the ECB

Introduction

Latest developments in euro area underlying inflation

Chart 1

Chart 2

Services, domestic inflation and wages

Chart 3

Chart 4

Chart 5

Chart 6

Chart 7

Chart 8

Chart 9

Chart 10

Conclusion