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Marc Benioff Warns Microsoft's Copilot 'Spills Corporate Data,' Emphasizes Security Gaps Ahead Of Salesforce Agentforce Launch

25.10.2024 by admin

Salesforce Inc. CRM CEO Marc Benioff criticized Microsoft Corp. MSFT for its artificial intelligence tools, claiming that they are overhyped and underperforming.

What Happened: Benioff took aim at Microsoft’s Copilot AI tool, describing it as overhyped and ineffective, in an interview with Business Insider. This criticism comes in the wake of Microsoft’s announcement of new Dynamics 365 AI agents, which directly compete with Salesforce’s Agentforce product, a CRM lead.

Benioff’s comments were not a coincidence. The day before the interview, Microsoft introduced 10 new AI agents for its CRM offering, Dynamics 365. This announcement came just days before the release of Salesforce’s own AI agent product, Agentforce, which is set to be generally available on Friday.

Benioff stated, “Microsoft has really disappointed so many of our customers. They’ve really done it by delivering a level of hype around their AI solutions.”

He also criticized the accuracy of Copilot, stating that it “spills corporate data,” and referred to it as “Clippy 2.0,” a nod to an infamous 1990s Microsoft Office digital assistant.

Benioff emphasized the success of Salesforce’s AI solutions and the company’s continued lead in the CRM market. Despite Microsoft’s recent gains in CRM market share, Benioff remains confident in Salesforce’s position.

Why It Matters: The rivalry between Salesforce and Microsoft has intensified with the introduction of AI-driven technologies.

Recently, Benioff criticized Microsoft’s rebranding of Copilot to “agents,” calling it a sign of “panic mode” due to Microsoft’s lack of data and security models, which he claims leads to inaccuracies and data leaks. Benioff praised Salesforce’s Agentforce for its integration of data, workflows, and security into a unified platform.

Microsoft’s announcement during its “AI Tour” in London highlighted the ability of businesses to develop autonomous AI agents, aiming to streamline enterprise functions. This move is part of Microsoft’s Copilot Studio platform, which allows organizations to customize AI-driven agents.

Analysts have noted that Salesforce’s Agentforce platform is on par with Microsoft’s offerings, with Piper Sandler upgrading Salesforce’s rating and raising its price target.

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Photo courtesy: Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

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Earnings News

First Savings Financial Group, Inc. Reports Financial Results for the Fiscal Year Ended September 30, 2024

25.10.2024 by admin

JEFFERSONVILLE, Ind., Oct. 24, 2024 (GLOBE NEWSWIRE) — First Savings Financial Group, Inc. FSFG (the “Company”), the holding company for First Savings Bank (the “Bank”), today reported net income of $13.6 million, or $1.98 per diluted share, for the year ended September 30, 2024, compared to net income of $8.2 million, or $1.19 per diluted share, for the year ended September 30, 2023. The core banking segment reported net income of $16.9 million, or $2.47 per diluted share for the year ended September 30, 2024, compared to $14.9 million, or $2.18 per diluted share for the year ended September 30, 2023.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “Fiscal 2024 was, in many ways, a year of rebuilding, repositioning and refinement. A summary of these enhancement actions is provided below. While we’re not entirely pleased with the financial performance in fiscal 2024, we are confident that the Company is well positioned to better perform in fiscal 2025 and the years thereafter regardless of the economic environment. For fiscal 2025 we’ll remain focused on core banking; strong asset quality; selective high-quality lending; core deposit growth; increased SBA lending volume; continued improvement of liquidity, capital and interest rate sensitivity positions; and strategic opportunities. We believe the efforts of fiscal 2024 along with the focus for fiscal 2025 will deliver enhanced shareholder value. Additionally, we’ll continue to evaluate options and strategies that we believe will further position the Company for future success and deliver shareholder value.”

Net interest income decreased $3.5 million, or 5.7%, to $58.1 million for the year ended September 30, 2024 as compared to the prior year. The tax equivalent net interest margin for the year ended September 30, 2024 was 2.68% as compared to 3.10% for the prior year. The decrease in net interest income was due to a $22.3 million increase in interest expense, partially offset by an $18.8 million increase in interest income. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a provision for credit losses for loans of $3.5 million, a credit for unfunded lending commitments of $421,000, and a provision for credit losses for securities of $21,000 for the year ended September 30, 2024, compared to a provision for loan losses of $2.6 million only for the prior year. The provision for credit losses for loans increased primarily due to loan growth and the effects of adopting the Current Expected Credit Loss (CECL) methodology during the year ended September 30, 2024. The Company recognized net charge-offs totaling $527,000 during the year, of which $104,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $1.1 million during the prior year, of which $872,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $3.0 million from $13.9 million at September 30, 2023 to $16.9 million at September 30, 2024.

Noninterest income decreased $12.8 million for the year ended September 30, 2024 as compared to the prior year. The decrease was due primarily to a $14.1 million decrease in mortgage banking income due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

Noninterest expense decreased $23.2 million for the year ended September 30, 2024 as compared to the prior year. The decrease was due primarily to decreases in compensation and benefits, data processing expense and other operating expenses of $12.0 million, $2.2 million and $7.8 million, respectively. The decrease in compensation and benefits expense was due primarily to a reduction in staffing related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. The decrease in data processing expense was due primarily to expenses recognized in the prior year related to the implementation of the new core operating system in August 2023. The decrease in other operating expense was due primarily to a $1.9 decrease in net loss on captive insurance operations due to the dissolution of the captive insurance company in September 2023; a decrease in loss contingency accrual for SBA-guaranteed loans of $754,000 in 2024 compared to an increase of $1.5 million in 2023; a decrease in the loss contingency accrual for restitution to mortgage borrowers of $283,000 in 2024 compared to an increase of $609,000 in 2023; and a decrease of $853,000 in loan expense for 2024 as compared to 2023 due primarily to lower mortgage loan originations related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

The Company recognized income tax expense of $1.0 million for the year ended September 30, 2024 compared to tax expense of $10,000 for the prior year. The increase is primarily due to higher taxable income in the 2024 period. The effective tax rate for 2024 was 7.0%, which was an increase from the effective tax rate of 0.1% in 2023. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2024 and 2023 periods.

The Company reported net income of $3.7 million, or $0.53 per diluted share, for the three months ended September 30, 2024, compared to a net loss of $747,000, or $0.11 per diluted share, for the three months ended September 30, 2023. The core banking segment reported net income of $4.1 million, or $0.60 per diluted share, for the three months ended September 30, 2024, compared to $2.3 million, or $0.33 per diluted share, for the three months ended September 30, 2023.

Net interest income decreased $459,000, or 3.0%, to $15.1 million for the three months ended September 30, 2024 as compared to the same period in 2023. The tax equivalent net interest margin was 2.72% for the three months ended September 30, 2024 as compared to 3.03% for the same period in 2023. The decrease in net interest income was due to a $4.5 million increase in interest expense, partially offset by a $4.1 million increase in interest income. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a provision for credit losses for loans of $1.8 million, a credit for unfunded lending commitments of $262,000, and a credit for credit losses for securities of $86,000 for the three months ended September 30, 2024, compared to a provision for loan losses of $815,000 only for the same period in 2023. The provision for credit losses for loans increased primarily due to loan growth and the effects of adopting the Current Expected Credit Loss (CECL) methodology during the year ended September 30, 2024. The Company recognized net charge-offs totaling $304,000 during the 2024 period, of which $120,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $753,000 during the 2023 period, of which $609,000 was related to unguaranteed portions of SBA loans.

Noninterest income decreased $2.6 million for the three months ended September 30, 2024 as compared to the same period in 2023. The decrease was due primarily to a $3.0 million decrease in mortgage banking income due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

Noninterest expense decreased $9.0 million for the three months ended September 30, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits expense, data processing expense, and other operating expenses of $4.5 million, $1.5 million and $3.5 million, respectively. The decrease in compensation and benefits expense was due primarily to a reduction in staffing related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. The decrease in data processing expense was due primarily to expenses recognized in the prior year period related to the implementation of the new core operating system in August 2023. The decrease in other operating expense was due primarily to a $978,000 decrease in the net loss on captive insurance operations due to the dissolution of the captive insurance company in September 2023; a decrease in loss contingency accrual for SBA-guaranteed loans of $14,000 in 2024 compared to an increase of $1.0 million in 2023; and a decrease of $270,000 in loan expense for 2024 as compared to 2023 due primarily to lower mortgage loan originations related to the cessation of the national mortgage banking operations in the quarter ended December 31, 2023.

The Company recognized income tax expense of $145,000 for the three months ended September 30, 2024 compared to income tax benefit of $737,000 for the same period in 2023. The increase was primarily due to higher taxable income in the 2024 period.

Total assets increased $161.5 million, from $2.29 billion at September 30, 2023 to $2.45 billion at September 30, 2024. Net loans held for investment increased $193.6 million during the year ended September 30, 2024 due primarily to growth in residential real estate, residential construction, and commercial real estate loans. Loans held for sale decreased by $20.1 million from $45.9 million at September 30, 2023 to $25.7 million, primarily due to the winddown of the national mortgage banking operations. Residential mortgage loan servicing rights decreased $59.8 million during the year ended September 30, 2024, due to the sale of the entire residential mortgage loan servicing rights portfolio during the year.

Total liabilities increased $135.4 million due primarily to increases in total deposits of $199.1 million, which included an increase in brokered deposits of $70.8 million, partially offset by a decrease in FHLB borrowings of $61.5 million. As of September 30, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 30.1% of total deposits and 13.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

Common stockholders’ equity increased $26.1 million, from $151.0 million at September 30, 2023 to $177.1 million at September 30, 2024, due primarily to a $18.4 million decrease in accumulated other comprehensive loss and an increase in retained net income of $7.0 million. The decrease in accumulated other comprehensive loss was due primarily to decreasing long term market interest rates during the year ended September 30, 2024, which resulted in an increase in the fair value of securities available for sale. At September 30, 2024 and September 30, 2023, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

Contact:
Tony A. Schoen, CPA
Chief Financial Officer
812-283-0724

FIRST SAVINGS FINANCIAL GROUP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) Three Months Ended Years Ended OPERATING DATA: September 30, September 30, (In thousands, except share and per share data) 2024 2023 2024 2023 Total interest income $ 32,223 $ 28,137 $ 121,988 $ 103,229 Total interest expense 17,146 12,601 63,926 41,655 Net interest income 15,077 15,536 58,062 61,574 Provision for credit losses – loans 1,808 815 3,492 2,612 Provision (credit) for unfunded lending commitments (262 ) – (421 ) – Provision (credit) for credit losses – securities (86 ) – 21 – Total provision for credit losses 1,460 815 3,092 2,612 Net interest income after provision for credit losses 13,617 14,721 54,970 58,962 Total noninterest income 2,842 5,442 12,530 25,342 Total noninterest expense 12,642 21,647 52,890 76,122 Income (loss) before income taxes 3,817 (1,484 ) 14,610 8,182 Income tax expense (benefit) 145 (737 ) 1,018 10 Net income (loss) $ 3,672 $ (747 ) $ 13,592 $ 8,172 Net income (loss) per share, basic $ 0.54 $ (0.11 ) $ 1.99 $ 1.19 Weighted average shares outstanding, basic 6,833,376 6,817,365 6,830,466 6,848,311 Net income (loss) per share, diluted $ 0.53 $ (0.11 ) $ 1.98 $ 1.19 Weighted average shares outstanding, diluted 6,877,518 6,837,919 6,856,520 6,880,072 Performance ratios (annualized) Return on average assets 0.61 % (0.13 %) 0.58 % 0.37 % Return on average equity 8.52 % (1.82 %) 8.31 % 5.04 % Return on average common stockholders’ equity 8.52 % (1.82 %) 8.31 % 5.04 % Net interest margin (tax equivalent basis) 2.72 % 3.03 % 2.68 % 3.10 % Efficiency ratio 70.55 % 103.19 % 74.92 % 87.58 % QTD FYTD FINANCIAL CONDITION DATA: September 30, June 30, Increase September 30, Increase (In thousands, except per share data) 2024 2024 (Decrease) 2023 (Decrease) Total assets $ 2,450,368 $ 2,393,491 $ 56,877 $ 2,288,854 $ 161,514 Cash and cash equivalents 52,142 42,423 9,719 30,845 21,297 Investment securities 249,719 238,785 10,934 229,039 20,680 Loans held for sale 25,716 125,859 (100,143 ) 45,855 (20,139 ) Gross loans 1,985,146 1,846,769 138,377 1,787,143 198,003 Allowance for credit losses (1) 21,294 19,789 1,505 16,900 4,394 Interest earning assets 2,277,512 2,239,109 38,403 2,083,397 194,115 Goodwill 9,848 9,848 – 9,848 – Core deposit intangibles 398 438 (40 ) 561 (163 ) Loan servicing rights 2,754 2,860 (106 ) 62,819 (60,065 ) Noninterest-bearing deposits 191,528 201,854 (10,326 ) 242,237 (50,709 ) Interest-bearing deposits (customer) 1,180,196 1,111,143 69,053 1,001,238 178,958 Interest-bearing deposits (brokered) 509,157 399,151 110,006 438,319 70,838 Federal Home Loan Bank borrowings 301,640 425,000 (123,360 ) 363,183 (61,543 ) Subordinated debt and other borrowings 48,603 48,563 40 48,444 159 Total liabilities 2,273,253 2,225,491 47,762 2,137,873 135,380 Accumulated other comprehensive loss (11,195 ) (17,415 ) 6,220 (29,587 ) 18,392 Stockholders’ equity 177,115 168,000 9,115 150,981 26,134 Book value per share $ 25.72 $ 24.41 $ 1.31 $ 21.99 $ 3.73 Tangible book value per share – Non-GAAP (2) 24.23 22.91 1.32 20.47 3.76 Non-performing assets: Nonaccrual loans – SBA guaranteed $ 5,036 $ 5,049 $ (13 ) $ 5,091 $ (55 ) Nonaccrual loans 11,906 11,705 201 8,857 3,049 Total nonaccrual loans $ 16,942 $ 16,754 $ 188 $ 13,948 $ 2,994 Accruing loans past due 90 days – – – – – Total non-performing loans 16,942 16,754 188 13,948 2,994 Foreclosed real estate 444 444 – 474 (30 ) Troubled debt restructurings classified as performing loans – – – 1,266 (1,266 ) Total non-performing assets $ 17,386 $ 17,198 $ 188 $ 15,688 $ 1,698 Asset quality ratios: Allowance for credit losses as a percent of total gross loans 1.07 % 1.07 % 0.00 % 0.95 % 0.13 % Allowance for credit losses as a percent of nonperforming loans 125.69 % 118.12 % 7.57 % 121.16 % 4.52 % Nonperforming loans as a percent of total gross loans 0.85 % 0.91 % (0.05 %) 0.78 % 0.07 % Nonperforming assets as a percent of total assets 0.71 % 0.72 % (0.01 %) 0.69 % 0.02 % (1) The Company adopted ASU 2016-13 Topic 326 on October 1, 2023. Allowance was determined using current expected credit loss methodology (CECL) for the quarters ended September, June, and March 2024 and December 2023. Allowance was determined using the previous incurred loss methodology as of September 30, 2023. (2) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of these figures. RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED): The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company’s performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures. Three Months Ended Fiscal Year Ended September 30, September 30, 2024 2023 2024 2023 Net Income (In thousands) Net income attributable to the Company (non-GAAP) $ 3,660 $ 2,824 $ 11,674 $ 12,731 Plus: Reversal of contingent liability, net of tax effect – – 212 – Plus: Record Visa Class C shares, net of tax effect 15 – 342 – Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect – – 492 – Plus: Adjustment to MSR valuation allowance, net of tax effect – – 583 – Plus: Gain (loss) on premises and equipment, net of tax effect (3 ) – 87 – Plus: Adjustment to previous data processing contract termination accrual, net of tax effect – – 117 – Plus: Distribution from equity investment, net of tax effect – – 85 – Plus: Gain from repurchase of subordinated debt, net of tax effect – – – 513 Less: Net loss on sales of available for sale securities and time deposits, net of tax effect – – – (429 ) Less: Data processing system conversion, net of tax effect – (979 ) – (1,119 ) Less: MSR valuation allowance for intended sale, net of tax effect – (598 ) – (598 ) Less: Loss contingency for SBA-guaranteed loans, net of tax effect – (779 ) – (1,160 ) Less: Mortgage banking loss contingencies, net of tax effect – (296 ) – (847 ) Less: Professional fees related to mortgage banking loss contingencies, net of tax effect – (919 ) – (919 ) Net income attributable to the Company (GAAP) $ 3,672 $ (747 ) $ 13,592 $ 8,172 Net Income per Share, Diluted Net income per share, diluted (non-GAAP) $ 0.53 $ 0.41 $ 1.70 $ 1.85 Plus: Reversal of contingent liability, net of tax effect – – 0.03 – Plus: Record Visa Class C shares, net of tax effect – – 0.05 – Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect – – 0.07 – Plus: Adjustment to MSR valuation allowance, net of tax effect – – 0.09 – Plus: Gain (loss) on premises and equipment, net of tax effect – – 0.01 – Plus: Adjustment to previous data processing contract termination accrual, net of tax effect – – 0.02 – Plus: Distribution from equity investment, net of tax effect – – 0.01 – Plus: Gain from repurchase of subordinated debt, net of tax effect – – – 0.07 Less: Net loss on sales of available for sale securities and time deposits, net of tax effect – – – (0.06 ) Less: Data processing system conversion, net of tax effect – (0.14 ) – (0.16 ) Less: MSR valuation allowance for intended sale, net of tax effect – (0.09 ) – (0.09 ) Less: Loss contingency for SBA-guaranteed loans, net of tax effect – (0.11 ) – (0.17 ) Less: Mortgage banking loss contingencies, net of tax effect – (0.05 ) – (0.12 ) Less: Professional fees related to mortgage banking loss contingencies, net of tax effect – (0.13 ) – (0.13 ) Net income per share, diluted (GAAP) $ 0.53 $ (0.11 ) $ 1.98 $ 1.19 Core Banking Net Income (In thousands) Net income attributable to the Core Bank (non-GAAP) $ 4,081 $ 5,046 $ 15,449 $ 18,338 Plus: Reversal of contingent liability, net of tax effect – – 212 – Plus: Record Visa Class C shares, net of tax effect 15 – 342 – Plus: Adjustment to MSR valuation allowance, net of tax effect – – 583 – Plus: Gain (loss) on premises and equipment, net of tax effect (3 ) – 87 – Plus: Adjustment to previous data processing contract termination accrual, net of tax effect – – 117 – Plus: Distribution from equity investment, net of tax effect – – 85 – Plus: Gain from repurchase of subordinated debt, net of tax effect – – – 513 Less: Net loss on sales of available for sale securities and time deposits, net of tax effect – – – (429 ) Less: Data processing system conversion, net of tax effect – (979 ) – (1,119 ) Less: MSR valuation allowance for intended sale, net of tax effect – (598 ) – (598 ) Less: Mortgage banking loss contingencies, net of tax effect – (296 ) – (847 ) Less: Professional fees related to mortgage banking loss contingencies, net of tax effect – (919 ) – (919 ) Net income (loss) attributable to the Core Bank (GAAP) $ 4,093 $ 2,254 $ 16,875 $ 14,939 Core Bank Net Income per Share, Diluted Core Bank net income per share, diluted (non-GAAP) $ 0.60 $ 0.74 $ 2.26 $ 2.67 Plus: Reversal of contingent liability, net of tax effect – – 0.03 – Plus: Record Visa Class C shares, net of tax effect – – 0.05 – Plus: Adjustment to MSR valuation allowance, net of tax effect – – 0.09 – Plus: Gain (loss) on premises and equipment, net of tax effect – – 0.01 – Plus: Adjustment to previous data processing contract termination accrual, net of tax effect – – 0.02 – Plus: Distribution from equity investment, net of tax effect – – 0.01 – Plus: Gain from repurchase of subordinated debt, net of tax effect – – – 0.07 Less: Net loss on sales of available for sale securities and time deposits, net of tax effect – – – (0.06 ) Less: Data processing system conversion, net of tax effect – (0.14 ) – (0.16 ) Less: MSR valuation allowance for intended sale, net of tax effect – (0.09 ) – (0.09 ) Less: Mortgage banking loss contingencies, net of tax effect – (0.05 ) – (0.12 ) Less: Professional fees related to mortgage banking loss contingencies, net of tax effect – (0.13 ) – (0.13 ) Core Bank net income per share, diluted (GAAP) $ 0.60 $ 0.33 $ 2.47 $ 2.18 Efficiency Ratio (In thousands) Net interest income (GAAP) $ 15,077 $ 15,536 $ 58,062 $ 61,574 Noninterest income (GAAP) 2,842 5,442 12,530 25,342 Noninterest expense (GAAP) 12,646 21,647 52,890 76,122 Efficiency ratio (GAAP) 70.55 % 103.19 % 74.92 % 87.58 % Noninterest income (GAAP) $ 2,842 $ 5,442 $ 12,530 $ 25,342 Plus: Record Visa Class C shares 20 – 456 – Plus: Adjustment to MSR valuation allowance – – 777 – Plus: Gain (loss) on premises and equipment (4 ) – 116 – Plus: Distribution from equity investment – – 113 – Plus: Gain from repurchase of subordinated debt – – – 684 Less: Net loss on sales of available for sale securities and time deposits – – – (572 ) Less: MSR valuation allowance for intended sale – (797 ) – (797 ) Noninterest income (Non-GAAP) 2,858 4,645 13,992 24,657 Noninterest expense (GAAP) $ 12,642 $ 21,647 $ 52,890 $ 76,122 Plus: Reversal of contingent liability – – 283 – Plus: Decrease in loss contingency for SBA-guaranteed loans – – 656 – Plus: Adjustment to previous data processing contract termination accrual – – 156 – Less: Data processing system conversion – (1,305 ) – (1,492 ) Less: Loss contingency for SBA-guaranteed loans – (1,039 ) – (1,547 ) Less: Mortgage banking loss contingencies – (395 ) – (1,129 ) Less: Professional fees related to mortgage banking loss contingencies – (1,225 ) – (1,225 ) Noninterest expense (Non-GAAP) 12,642 17,683 53,985 70,729 Efficiency ratio (excluding nonrecurring items) (non-GAAP) 70.49 % 87.62 % 74.92 % 82.02 % Tangible Book Value Per Share September 30, June 30, Increase September 30, Increase (In thousands, except share and per share data) 2024 2024 (Decrease) 2023 (Decrease) Stockholders’ equity, net of noncontrolling interests (GAAP) $ 177,115 $ 168,000 $ 9,115 $ 150,981 $ 26,134 Less: goodwill and core deposit intangibles (10,246 ) (10,286 ) 40 (10,409 ) 163 Tangible equity (non-GAAP) $ 166,869 $ 157,714 $ 9,155 $ 140,572 26,297 Outstanding common shares 6,887,106 6,883,656 $ 3,450 6,867,121 19,985 Tangible book value per share (non-GAAP) $ 24.23 $ 22.91 $ 1.32 $ 20.47 $ 3.76 Book value per share (GAAP) $ 25.72 $ 24.41 $ 1.31 $ 21.99 $ 3.73 SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): As of Summarized Consolidated Balance Sheets September 30, June 30, March 31, December 31, September 30, (In thousands, except per share data) 2024 2024 2023 2023 2023 Total cash and cash equivalents $ 52,142 $ 42,423 $ 62,969 $ 33,366 $ 30,845 Total investment securities 249,719 238,785 240,142 246,801 229,039 Total loans held for sale 25,716 125,859 19,108 22,866 45,855 Total loans, net of allowance for credit losses 1,963,852 1,826,980 1,882,458 1,841,953 1,770,243 Loan servicing rights 2,754 2,860 3,028 3,711 62,819 Total assets 2,450,368 2,393,491 2,364,983 2,308,092 2,288,854 Customer deposits $ 1,371,724 $ 1,312,997 $ 1,239,271 $ 1,180,951 $ 1,243,475 Brokered deposits 509,157 399,151 548,175 502,895 438,319 Total deposits 1,880,881 1,712,148 1,787,446 1,683,846 1,681,794 Federal Home Loan Bank borrowings 301,640 425,000 315,000 356,699 363,183 Common stock and additional paid-in capital $ 27,725 $ 27,592 $ 27,475 $ 27,397 $ 27,064 Retained earnings – substantially restricted 173,337 170,688 167,648 163,753 166,306 Accumulated other comprehensive income (loss) (11,195 ) (17,415 ) (17,144 ) (13,606 ) (29,587 ) Unearned stock compensation (901 ) (999 ) (1,096 ) (1,194 ) (1,015 ) Less treasury stock, at cost (11,851 ) (11,866 ) (11,827 ) (11,827 ) (11,787 ) Total stockholders’ equity 177,115 168,000 165,056 164,523 150,981 Outstanding common shares 6,887,106 6,883,656 6,883,160 6,883,160 6,867,121 Three Months Ended Summarized Consolidated Statements of Income September 30, June 30, March 31, December 31, September 30, (In thousands, except per share data) 2024 2024 2023 2023 2023 Total interest income $ 32,223 $ 31,094 $ 30,016 $ 28,655 $ 28,137 Total interest expense 17,146 16,560 15,678 14,542 12,601 Net interest income 15,077 14,534 14,338 14,113 15,536 Provision for credit losses – loans 1,808 501 713 412 815 Provision (credit) for unfunded lending commitments (262 ) 158 (259 ) – – Provision (credit) for credit losses – securities (86 ) 84 23 – – Net interest income after provision for credit losses 13,617 13,791 13,861 13,701 14,721 Total noninterest income 2,842 3,196 3,710 2,782 5,442 Total noninterest expense 12,642 12,431 11,778 16,039 21,647 Income (loss) before income taxes 3,817 4,556 5,793 444 (1,484 ) Income tax expense (benefit) 145 483 866 (476 ) (737 ) Net income (loss) $ 3,672 $ 4,073 $ 4,927 $ 920 $ (747 ) Net income (loss) per share, basic $ 0.54 $ 0.60 $ 0.72 $ 0.13 $ (0.11 ) Weighted average shares outstanding, basic 6,833,376 6,832,452 6,832,130 6,823,948 6,817,365 Net income (loss) per share, diluted $ 0.53 $ 0.60 $ 0.72 $ 0.13 $ (0.11 ) Weighted average shares outstanding, diluted 6,877,518 6,842,336 6,859,611 6,839,704 6,837,919 SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended Noninterest Income Detail September 30, June 30, March 31, December 31, September 30, (In thousands) 2024 2024 2023 2023 2023 Service charges on deposit accounts $ 552 $ 538 $ 387 $ 473 $ 479 ATM and interchange fees 642 593 585 449 816 Net loss on sales of available for sale securities – – – – (11 ) Net unrealized gain on equity securities 28 419 6 38 11 Net gain on sales of loans, Small Business Administration 647 581 951 834 538 Mortgage banking income 6 49 53 89 3,018 Increase in cash surrender value of life insurance 363 353 333 329 311 Commission income 294 220 220 222 182 Real estate lease income 122 154 115 115 116 Net gain on premises and equipment (4 ) – 120 – 20 Other income 192 289 940 233 (38 ) Total noninterest income $ 2,842 $ 3,196 $ 3,710 $ 2,782 $ 5,442 Three Months Ended September 30, June 30, March 31, December 31, September 30, Consolidated Performance Ratios (Annualized) 2024 2024 2023 2023 2023 Return on average assets 0.61 % 0.69 % 0.92 % 0.16 % (0.13 %) Return on average equity 8.52 % 9.86 % 13.06 % 2.42 % (1.82 %) Return on average common stockholders’ equity 8.52 % 9.86 % 13.06 % 2.42 % (1.82 %) Net interest margin (tax equivalent basis) 2.72 % 2.67 % 2.66 % 2.69 % 3.03 % Efficiency ratio 70.55 % 70.11 % 65.26 % 94.93 % 103.19 % As of or for the Three Months Ended September 30, June 30, March 31, December 31, September 30, Consolidated Asset Quality Ratios 2024 2024 2023 2023 2023 Nonperforming loans as a percentage of total loans 0.85 % 0.91 % 0.82 % 0.83 % 0.78 % Nonperforming assets as a percentage of total assets 0.71 % 0.72 % 0.68 % 0.69 % 0.69 % Allowance for credit losses as a percentage of total loans 1.07 % 1.07 % 1.02 % 1.01 % 0.95 % Allowance for credit losses as a percentage of nonperforming loans 125.69 % 118.12 % 124.01 % 121.16 % 121.16 % Net charge-offs to average outstanding loans 0.02 % 0.01 % 0.01 % 0.00 % 0.04 % SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended Segmented Statements of Income Information September 30, June 30, March 31, December 31, September 30, (In thousands) 2024 2024 2023 2023 2023 Core Banking Segment: Net interest income $ 14,083 $ 13,590 $ 13,469 $ 13,113 $ 14,167 Provision (credit) for credit losses – loans 1,339 320 909 (49 ) 1,266 Provision (credit) for unfunded lending commitments 78 64 (259 ) – – Provision (credit) for credit losses – securities (86 ) 84 23 – – Net interest income after provision for credit losses 12,752 13,122 12,796 13,162 12,901 Noninterest income 2,042 2,474 2,537 1,679 2,136 Noninterest expense 10,400 10,192 10,093 10,252 13,559 Income before income taxes 4,394 5,404 5,240 4,589 1,478 Income tax expense 301 689 729 541 3 Net income $ 4,093 $ 4,715 $ 4,511 $ 4,048 $ 1,475 SBA Lending Segment (Q2 Business Capital, LLC): Net interest income $ 994 $ 944 $ 869 $ 1,003 $ 990 Provision (credit) for credit losses – loans 469 181 (196 ) 461 (451 ) Provision (credit) for unfunded lending commitments (340 ) 94 – – – Net interest income after provision for credit losses 865 669 1,065 542 1,441 Noninterest income 800 722 1,173 1,003 367 Noninterest expense 2,242 2,239 1,685 2,146 2,907 Income (loss) before income taxes (577 ) (848 ) 553 (601 ) (1,099 ) Income tax expense (benefit) (156 ) (206 ) 137 (131 ) (273 ) Net income (loss) $ (421 ) $ (642 ) $ 416 $ (470 ) $ (826 ) Mortgage Banking Segment: (3) Net interest income (loss) $ – $ – $ – $ (3 ) $ 379 Provision for credit losses – loans – – – – – Provision for unfunded lending commitments – – – – – Net interest income (loss) after provision for credit losses – – – (3 ) 379 Noninterest income – – – 100 2,939 Noninterest expense – – – 3,641 5,181 Loss before income taxes – – – (3,544 ) (1,863 ) Income tax benefit – – – (886 ) (467 ) Net loss $ – $ – $ – $ (2,658 ) $ (1,396 ) (3) National mortgage banking operations were ceased in the quarter ended December 31, 2023 and subsequent immaterial mortgage lending activity is reported within the Core Banking segment. SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended Segmented Statements of Income Information September 30, June 30, March 31, December 31, September 30, (In thousands, except percentage data) 2024 2024 2023 2023 2023 Net Income (Loss) Per Share by Segment Net income per share, basic – Core Banking $ 0.60 $ 0.69 $ 0.66 $ 0.59 $ 0.22 Net income (loss) per share, basic – SBA Lending (Q2 Business Capital, LLC) (0.06 ) (0.09 ) 0.06 (0.07 ) (0.12 ) Net income (loss) per share, basic – Mortgage Banking 0.00 0.00 0.00 (0.40 ) (0.21 ) Total net income (loss) per share, basic $ 0.54 $ 0.60 $ 0.72 $ 0.12 $ (0.11 ) Net Income (Loss) Per Diluted Share by Segment Net income per share, diluted – Core Banking $ 0.60 $ 0.69 $ 0.66 $ 0.59 $ 0.22 Net income (loss) per share, diluted – SBA Lending (Q2 Business Capital, LLC) (0.06 ) (0.09 ) 0.06 (0.07 ) (0.12 ) Net loss per share, diluted – Mortgage Banking 0.00 0.00 0.00 (0.40 ) (0.21 ) Total net income (loss) per share, diluted $ 0.54 $ 0.60 $ 0.72 $ 0.12 $ (0.11 ) Return on Average Assets by Segment (annualized) (4) Core Banking 0.71 % 0.83 % 0.80 % 0.73 % 0.28 % SBA Lending (1.71 %) (2.91 %) 1.81 % (2.11 %) (3.81 %) Efficiency Ratio by Segment (annualized) (4) Core Banking 64.50 % 63.45 % 63.06 % 69.31 % 83.17 % SBA Lending 124.97 % 134.39 % 82.52 % 106.98 % 214.22 % Three Months Ended Noninterest Expense Detail by Segment September 30, June 30, March 31, December 31, September 30, (In thousands) 2024 2024 2023 2023 2023 Core Banking Segment: Compensation $ 5,400 $ 5,587 $ 5,656 $ 5,691 $ 6,528 Occupancy 1,554 1,573 1,615 1,481 1,418 Advertising 399 253 205 189 404 Other 3,047 2,779 2,617 2,891 5,209 Total Noninterest Expense $ 10,400 $ 10,192 $ 10,093 $ 10,252 $ 13,559 SBA Lending Segment (Q2 Business Capital, LLC): Compensation $ 1,854 $ 1,893 $ 1,933 $ 1,826 $ 1,533 Occupancy 55 51 58 91 68 Advertising 17 12 7 10 10 Other 316 283 (313 ) 219 1,296 Total Noninterest Expense $ 2,242 $ 2,239 $ 1,685 $ 2,146 $ 2,907 Mortgage Banking Segment: (4) Compensation $ – $ – $ – $ 2,146 $ 3,647 Occupancy – – – 469 395 Advertising – – – 119 129 Other – – – 907 1,010 Total Noninterest Expense $ – $ – $ – $ 3,641 $ 5,181 (4) Ratios for Mortgage Banking Segment are not considered meaningful due to cessation of national mortgage banking operations in the quarter ended December 31, 2023. SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended SBA Lending (Q2 Business Capital, LLC) Data September 30, June 30, March 31, December 31, September 30, (In thousands, except percentage data) 2024 2024 2023 2023 2023 Final funded loans guaranteed portion sold, SBA $ 10,880 $ 7,515 $ 15,144 $ 14,098 $ 8,431 Gross gain on sales of loans, SBA $ 1,029 $ 811 $ 1,443 $ 1,303 $ 809 Weighted average gross gain on sales of loans, SBA 9.46 % 10.79 % 9.53 % 9.24 % 9.60 % Net gain on sales of loans, SBA (5) $ 647 $ 581 $ 951 $ 834 $ 538 Weighted average net gain on sales of loans, SBA 5.95 % 7.73 % 6.28 % 5.92 % 6.38 % (5) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment. SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended Summarized Consolidated Average Balance Sheets September 30, June 30, March 31, December 31, September 30, (In thousands) 2024 2024 2023 2023 2023 Interest-earning assets Average balances: Interest-bearing deposits with banks $ 16,841 $ 26,100 $ 24,587 $ 20,350 $ 21,631 Loans 1,988,997 1,943,716 1,914,609 1,857,654 1,796,749 Investment securities – taxable 99,834 101,350 102,699 103,728 105,393 Investment securities – nontaxable 158,917 157,991 157,960 159,907 160,829 FRB and FHLB stock 24,986 24,986 24,986 24,968 24,939 Total interest-earning assets $ 2,289,575 $ 2,254,143 $ 2,224,841 $ 2,166,607 $ 2,109,541 Interest income (tax equivalent basis): Interest-bearing deposits with banks $ 209 $ 324 $ 261 $ 249 $ 266 Loans 29,450 28,155 27,133 26,155 25,214 Investment securities – taxable 910 918 923 942 969 Investment securities – nontaxable 1,685 1,665 1,662 1,687 1,695 FRB and FHLB stock 471 519 499 74 428 Total interest income (tax equivalent basis) $ 32,725 $ 31,581 $ 30,478 $ 29,107 $ 28,572 Weighted average yield (tax equivalent basis, annualized): Interest-bearing deposits with banks 4.96 % 4.97 % 4.25 % 4.89 % 4.92 % Loans 5.92 % 5.79 % 5.67 % 5.63 % 5.61 % Investment securities – taxable 3.65 % 3.62 % 3.59 % 3.63 % 3.68 % Investment securities – nontaxable 4.24 % 4.22 % 4.21 % 4.22 % 4.22 % FRB and FHLB stock 7.54 % 8.31 % 7.99 % 1.19 % 6.86 % Total interest-earning assets 5.72 % 5.60 % 5.48 % 5.37 % 5.42 % Interest-bearing liabilities Interest-bearing deposits $ 1,563,258 $ 1,572,871 $ 1,549,012 $ 1,389,384 $ 1,385,994 Fed funds purchased – – – – 76 Federal Home Loan Bank borrowings 378,956 351,227 333,275 440,786 353,890 Subordinated debt and other borrowings 48,576 48,537 48,497 48,458 48,406 Total interest-bearing liabilities $ 1,990,790 $ 1,972,635 $ 1,930,784 $ 1,878,628 $ 1,788,366 Interest expense: Interest-bearing deposits $ 12,825 $ 12,740 $ 12,546 $ 9,989 $ 9,457 Fed funds purchased – – – – 1 Federal Home Loan Bank borrowings 3,521 3,021 2,298 3,769 2,459 Subordinated debt and other borrowings 800 799 833 784 684 Total interest expense $ 17,146 $ 16,560 $ 15,677 $ 14,542 $ 12,601 Weighted average cost (annualized): Interest-bearing deposits 3.28 % 3.24 % 3.24 % 2.88 % 2.73 % Fed funds purchased 0.00 % 0.00 % 0.00 % 0.00 % 5.26 % Federal Home Loan Bank borrowings 3.72 % 3.44 % 2.76 % 3.42 % 2.78 % Subordinated debt and other borrowings 6.59 % 6.58 % 6.87 % 6.47 % 5.65 % Total interest-bearing liabilities 3.45 % 3.36 % 3.25 % 3.10 % 2.82 % Net interest income (taxable equivalent basis) $ 15,579 $ 15,021 $ 14,801 $ 14,565 $ 15,971 Less: taxable equivalent adjustment (502 ) (487 ) (463 ) (452 ) (435 ) Net interest income $ 15,077 $ 14,534 $ 14,338 $ 14,113 $ 15,536 Interest rate spread (tax equivalent basis, annualized) 2.27 % 2.24 % 2.23 % 2.27 % 2.60 % Net interest margin (tax equivalent basis, annualized) 2.72 % 2.67 % 2.66 % 2.69 % 3.03 %

Markets News

Bitcoin Gains, Ethereum, Dogecoin Muted Amid Tesla-Powered Stocks Rally: Analyst Highlights 'Most Bullish Outcome' For King Crypto In The Short Term

25.10.2024 by admin

Bitcoin traded in the green Thursday after Tesla Inc.’s TSLA searing rally lifted stocks out of losses.

Cryptocurrency	Gains +/-	Price (Recorded at 9:30 p.m. EDT)
Bitcoin BTC/USD	+1.13%	$67,956.29
Ethereum ETH/USD	-0.66%	$2,525.51
Dogecoin DOGE/USD	-1.46%	$0.14

What Happened: Bitcoin sailed to an intraday high of $68,693 during U.S. evening hours before dipping below $68,000 on profit-taking.

The world’s largest cryptocurrency took a sharp U-turn after clinching $69,000 earlier this week. Its October gains stood at 7% as of this writing, well below the historical average of 21.57%.

Ethereum failed to rise, wobbling in the $2,500 range throughout the day.

Total cryptocurrency liquidations breached $104 million in the last 24 hours, with long liquidations accounting for half of them.

Bitcoin’s Open Interest rose marginally by 0.05% in the 24 hours. Interestingly, most institutional investors and top traders on Binance bet against the cryptocurrency, as per the Long/Shorts Ratio.

Market sentiment remained in the “Greed” zone, according to the Cryptocurrency Fear & Greed Index, implying a bullish sentiment

Top Gainers (24-Hours)

Cryptocurrency	Gains +/-	Price (Recorded at 9:30 p.m. EDT)
Cat In A Dogs World (MEW)	+18.18%	$0.01125
Pyth Network (PYTH)	+10.91%	$0.3869
Raydium (RAY)	+8.94%	$2.93

The global cryptocurrency stood at $2.33 trillion, increasing by 2.05% in the last 24 hours.

Stocks made a strong comeback Thursday The S&P 500 rose 0.21% to end at 5,809.86, snapping a three-day losing streak. The tech-focused Nasdaq Composite gained 0.76% to close at 18,415.49.

On the flip side, the Dow Jones Industrial Average recorded its fourth straight day of losses, closing 0.33% lower at 42,374.36.

The rally was bolstered by a massive 22% jump in shares of electric vehicle giant Tesla after it reported higher-than-expected third-quarter earnings. Thursday marked the company’s best day since 2013.

Additionally, the benchmark 10-year Treasury yield dropped below 4.20%, a reversal from the three-month highs earlier this week.

See More: Best Cryptocurrency Scanners

Analyst Notes: Popular cryptocurrency analyst and trader Rekt Capital said that a weekly close above $67,900 would be the most bullish outcome for Bitcoin under present conditions.

The analyst repeated his previous stance of a “successful retest.”

A widely followed cryptocurrency trader known by the moniker Nihilus disputed predictions of a new Bitcoin low, instead predicting a retreat before a climb to new highs.

Markets News

Unpacking the Latest Options Trading Trends in Edwards Lifesciences

25.10.2024 by admin

Whales with a lot of money to spend have taken a noticeably bullish stance on Edwards Lifesciences.

Looking at options history for Edwards Lifesciences EW we detected 14 trades.

If we consider the specifics of each trade, it is accurate to state that 42% of the investors opened trades with bullish expectations and 42% with bearish.

From the overall spotted trades, 4 are puts, for a total amount of $169,256 and 10, calls, for a total amount of $439,821.

What’s The Price Target?

After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $60.0 and $80.0 for Edwards Lifesciences, spanning the last three months.

Analyzing Volume & Open Interest

In today’s trading context, the average open interest for options of Edwards Lifesciences stands at 1511.31, with a total volume reaching 4,213.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Edwards Lifesciences, situated within the strike price corridor from $60.0 to $80.0, throughout the last 30 days.

Edwards Lifesciences 30-Day Option Volume & Interest Snapshot

Options Call Chart

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
EW	CALL	TRADE	BEARISH	11/15/24	$2.05	$1.8	$1.8	$77.50	$147.0K	3.5K	1.2K
EW	PUT	TRADE	BULLISH	11/15/24	$1.6	$1.45	$1.45	$65.00	$72.5K	4.9K	708
EW	CALL	SWEEP	BEARISH	01/17/25	$7.4	$7.2	$7.2	$67.50	$41.7K	310	83
EW	CALL	SWEEP	BULLISH	12/20/24	$2.5	$2.45	$2.45	$77.50	$37.7K	147	154
EW	PUT	TRADE	BULLISH	01/17/25	$2.45	$0.9	$1.35	$60.00	$33.7K	1.1K	250

About Edwards Lifesciences

Spun off from Baxter International in 2000, Edwards Lifesciences designs, manufactures, and markets a range of medical devices and equipment for advanced stages of structural heart disease. It has established itself as a leader across key products, including surgical tissue heart valves, transcatheter valve technologies, surgical clips, and catheters. The firm derives about 55% of its total sales from outside the US.

Present Market Standing of Edwards Lifesciences

With a trading volume of 6,662,255, the price of EW is up by 4.82%, reaching $74.01.
Current RSI values indicate that the stock is may be approaching overbought.
Next earnings report is scheduled for 0 days from now.

What Analysts Are Saying About Edwards Lifesciences

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $71.6.

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* Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for Edwards Lifesciences, targeting a price of $77.
* An analyst from Evercore ISI Group persists with their In-Line rating on Edwards Lifesciences, maintaining a target price of $70.
* Reflecting concerns, an analyst from Morgan Stanley lowers its rating to Equal-Weight with a new price target of $70.
* Maintaining their stance, an analyst from RBC Capital continues to hold a Outperform rating for Edwards Lifesciences, targeting a price of $75.
* An analyst from Canaccord Genuity has decided to maintain their Hold rating on Edwards Lifesciences, which currently sits at a price target of $66.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Edwards Lifesciences with Benzinga Pro for real-time alerts.

Market News and Data brought to you by Benzinga APIs

Markets News

The 'Ethereum Killer' Lives Up To Its Name: Solana Outperforms ETH by 19% Over A Week, But Can The Second-Largest Coin Stage A Comeback?

25.10.2024 by admin

Ethereum and Solana have plotted drastically divergent trajectories over the past week or so, causing investors eager to shift capital away from Bitcoin BTC/USD to sit up and take notice.

What happened: Solana, often touted as the “Ethereum Killer,” spiked over 13% in the last seven days, faring among the top weekly gainers. In contrast, Ethereum, with a much bigger market capitalization, slipped 4.63% in the said period.

In fact, in ETH’s terms, SOL was currently sitting at an all-time high, according to data from CoinMarketCap, reflecting a gain of 57% year-to-date. Over the last week, SOL was up over 19% against ETH.

Cryptocurrency	7-Day Gains +/-	Price (Recorded at 12:30 p.m. EDT)
Solana SOL/USD	+13.65%	$173.33
Ethereum ETH/USD	-4.63%	$2,497.52

The divergence comes at a time when Bitcoin, the market bellwether, was flirting with the $70,000 level in a bid to break out to new all-time highs.

According to Trading View, Solana’s Relative Strength Index (RSI) showed a reading of 67.80, indicating a neutral sentiment, having just returned from the overbought territory.

Additionally, the Moving Average Convergence Divergence (MACD) indicator was positive, flashing a ‘Buy’ signal.

On the other hand, Ethereum’s MACD indicator flashed a ‘Sell’ signal, while its RSI remained in the neutral zone.

However, despite the underperformance, analysts were not writing off Ethereum just yet.

Widely followed cryptocurrency-associated X handle Wolf spotted an ascending triangle pattern for the asset, which tends to be bullish as it indicates the continuation of an upward trend.

$ETH investors are understandably in disbelief due to its recent underperformance.
However, the chart still appears bullish; we could interpret it as forming an iHS or an asc. triangle.
ETH’s time is coming. pic.twitter.com/z25wJf4Pdr

— Wolf 🐺 (@IamCryptoWolf) October 24, 2024

Another popular analyst, with the pseudonym Basel, said that Ethereum is “severely undervalued” in the long term.

He added that most of the L2 networks are built atop Ethereum and won’t be able to function in its absence.

$SOL/ETH just set a new market cycle high and ATH! $ETH is severely undervalued long-term, it’s easy for everyone to dismiss the fact that the majority of L2 blockchains are built on top of $ETH and wouldn’t be able to function without it. pic.twitter.com/XyRe2Qtj2x

— Basel (@BaselIsmail) October 23, 2024

Photo by Avi Rozen on Shutterstock

Lastest news News

Binance Blockchain Week 2024: UXUY Unveils NFC Cards – Tap2Earn Onsite to Receive BNB Chain Ecosystem Airdrops

25.10.2024 by admin

Dubai, Oct. 25, 2024 (GLOBE NEWSWIRE) — Binance will host its Binance Blockchain Week 2024 from October 30 to October 31 at the Coca-Cola Arena in Dubai, UAE, under the theme “Momentum.”
The conference will focus on key topics such as technology, regulation, community, and the social impact of blockchain. Notable speakers include Binance founder Changpeng Zhao (CZ), Binance CEO Richard Teng, Dubai Future Foundation CEO HE Khalfan Belhoul, and Circle CEO Jeremy Allaire, among other thought leaders.
This year’s theme, “Momentum,” emphasizes the importance of harnessing the driving forces of the crypto industry to overcome current challenges and achieve future milestones. Attendees will engage in deep discussions about how “Momentum” will shape the future of Web3.

BNB Chain Ecosystem Airdrop

During the event, UXUY, a multi-chain infrastructure incubated and invested in by Binance Labs, will release limited edition NFC cards. Attendees can tap the NFC card with their phones to instantly create a UXUY Telegram wallet and receive a random airdrop from the BNB Chain ecosystem, including BNB, FDUSD, and other popular tokens. This interactive feature adds fun and engagement to the event, giving users the exciting experience of Tap2Earn in a live setting.

The UXUY Telegram Wallet is the first decentralized multi-chain wallet on Telegram, developed and operated by UXUY. It supports 21 blockchains, including BNB Chain, Bitcoin Lightning Network, Base, Solana, and TRON, with nearly 1.5 million users. UXUY’s mission is to bring 900 million users into the multi-chain crypto world.

UXUY is actively integrating BNB Chain DApps, such as PancakeSwap, Four.Meme, and KiloEx, achieving over 1.2 million on-chain interactions. This significantly lowers the barrier for Telegram’s 900 million users to access BNB Chain, continuously unlocking its immense potential.

Exclusive Access to Cutting-Edge Crypto Technology

This year’s Binance Blockchain Week not only brings together top leaders in the crypto industry but also introduces the eagerly awaited Innovation Stage. Attendees will gain first-hand insights into the latest advancements in cutting-edge platforms, tools, DeFi, NFTs, and other emerging trends, staying ahead of the curve. The Innovation Stage will also provide personalized, interactive experiences for engaged participants through live demos and keynote presentations, enriching the event’s content and format.

Jordan, co-founder of UXUY, will deliver a compelling talk on the Innovation Stage, sharing insights into UXUY’s pioneering work within the Telegram ecosystem.

Stay tuned for more details

Leading up to the event, visit the Binance Blockchain Week 2024 official website for the latest updates, ticket information, and more.

About BNB Chain

BNB Chain is a community-driven blockchain ecosystem that is breaking down barriers to Web3 adoption. It consists of the following components:

BNB Smart Chain (BSC): A secure DeFi hub with the lowest gas fees among all EVM-compatible L1s, serving as the governance chain of the ecosystem.

opBNB: A scalable L2 that offers the lowest gas fees and fast processing speeds among all L2s.

BNB Greenfield: Fulfills the ecosystem’s decentralized storage needs and allows users to create their own data marketplace.

About UXUY

UXUY, incubated and invested in by Binance Labs, is a next-generation decentralized multi-chain infrastructure that has launched its app and bot products across iOS, Android, and the Telegram ecosystem.

UXUY Wallet (@UXUYbot) is the first self-custody multi-chain wallet on Telegram, supporting various blockchains, including Bitcoin Lightning Network, BNB Chain, Base, TON, Arbitrum, TRON, and more. UXUY has created the first decentralized multi-chain wallet and DApp center based on Telegram, with over 1.5 million users. The goal of UXUY Wallet is to bring 900 million users into the multi-chain crypto ecosystem.

Jordan L
Co-founder, UXUY 
E: jordan@uxuy.com
T: https://t.me/zeroxjordan

news

News Real estate

Digital Realty Reports Third Quarter 2024 Results

25.10.2024 by admin

AUSTIN, Texas, Oct. 24, 2024 /PRNewswire/ — Digital Realty DLR, the largest global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced today financial results for the third quarter of 2024. All per share results are presented on a fully diluted basis.

Highlights

Reported net income available to common stockholders of $0.09 per share in 3Q24, compared to $2.31 in 3Q23
Reported FFO per share of $1.55 in 3Q24, compared to $1.55 in 3Q23
Reported Core FFO per share of $1.67 in 3Q24, compared to $1.62 in 3Q23
Reported rental rate increases on renewal leases of 15.2% on a cash basis in 3Q24
Signed total bookings during 3Q24 that are expected to generate $521 million of annualized GAAP rental revenue, including a $50 million contribution from the 0–1 megawatt category and $16 million contribution from interconnection
Reported backlog of $859 million of annualized GAAP base rent at the end of 3Q24
Raised 2024 Core FFO per share outlook to $6.65 – $6.75

Financial Results

Digital Realty reported revenues of $1.4 billion in the third quarter of 2024, a 5% increase from the previous quarter and a 2% increase from the same quarter last year.

The company delivered net income of $40 million in the third quarter of 2024, and net income available to common stockholders of $41 million, or $0.09 per diluted share, compared to $0.20 per diluted share in the previous quarter and $2.31 per diluted share in the same quarter last year.

Digital Realty generated Adjusted EBITDA of $758 million in the third quarter of 2024, a 4% increase from the previous quarter and a 11% increase over the same quarter last year.

The company reported Funds From Operations (FFO) of $520 million in the third quarter of 2024, or $1.55 per share, compared to $1.57 per share in the previous quarter and $1.55 per share in the same quarter last year.

Excluding certain items that do not represent core expenses or revenue streams, Digital Realty delivered Core FFO per share of $1.67 in the third quarter of 2024, compared to $1.65 per share in the previous quarter and $1.62 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share of $1.66 for the third quarter of 2024 and $4.99 per share for the nine-month period ended September 30, 2024.

“In the third quarter, Digital Realty posted over $520 million of new leasing, more than double the record set in the first quarter. Record leasing across both the greater-than-a-megawatt and 0-1 MW plus interconnection segments drove the backlog up nearly 60% above our prior record,” said Digital Realty President & Chief Executive Officer Andy Power. “Our backlog now represents over 20% of annualized in-place data center revenue, enhancing our visibility and positioning Digital Realty for accelerating longer-term growth.”

Leasing Activity

In the third quarter, Digital Realty signed total bookings that are expected to generate $521 million of annualized GAAP rental revenue, including a $50 million contribution from the 0–1 megawatt category and a $16 million contribution from interconnection.

The weighted-average lag between new leases signed during the third quarter of 2024 and the contractual commencement date was 15 months. The backlog of signed-but-not-commenced leases at quarter-end increased to $859 million of annualized GAAP base rent at Digital Realty’s share.

In addition to new leases signed, Digital Realty also signed renewal leases representing $258 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the third quarter of 2024 increased 15.2% on a cash basis and 27.5% on a GAAP basis.

New leases signed during the third quarter of 2024 are summarized by region and product as follows:


	Annualized GAAP
	Base Rent		Square Feet	GAAP Base Rent			GAAP Base Rent
Americas	(in thousands)		(in thousands)	per Square Foot		Megawatts	per Kilowatt
0-1 MW		$23,394	83		$282	7.5		$262
> 1 MW		425,641	1,102		386	158.8		223
Other ⁽¹⁾		4,684	66		71	—		—
Total		$453,719	1,251		$363	166.2		$225

EMEA ⁽²⁾
0-1 MW		$20,406	66		$308	7.5		$228
> 1 MW		17,339	80		217	9.0		161
Other ⁽¹⁾		168	5		35	—		—
Total		$37,913	151		$252	16.5		$191

Asia Pacific ⁽²⁾
0-1 MW		$6,563	20		$324	1.7		$315
> 1 MW		6,764	55		124	4.4		129
Other ⁽¹⁾		216	2		87	—		—
Total		$13,543	77		$175	6.1		$182

All Regions ⁽²⁾
0-1 MW		$50,363	169		$297	16.6		$252
> 1 MW		449,744	1,236		364	172.1		218
Other ⁽¹⁾		5,068	73		69	—		—
Total		$505,174	1,479		$342	188.8		$221

Interconnection		$15,702	N/A		N/A	N/A		N/A

Grand Total		$520,876	1,479		$342	188.8		$221


Note: Totals may not foot due to rounding differences.
(1)	Other includes Powered Base Building® shell capacity as well as storage and office space within fully improved data center facilities.
(2)	Based on quarterly average exchange rates during the three months ended September 30, 2024.

Investment Activity

As previously disclosed, in July, Digital Realty closed on the acquisition of two data centers with a combined IT load of 15 megawatts in the Slough Trading Estate for $200 million, marking the Company’s entry into the west London, UK submarket.

During the quarter, Digital Realty acquired the land and shell of one of its existing data centers in Schiphol Rijk, Amsterdam for €43 million, or approximately $48 million. The site comprises approximately 15 megawatts of fully leased capacity and was previously operated pursuant to an operating lease.

Subsequent to quarter end, Digital Realty closed on the acquisition of a 6.7-acre parcel in Richardson, Texas, adjacent to Digital Realty’s existing campus, for approximately $15 million to support the development of more than 80 megawatts of incremental IT capacity.

Balance Sheet

Digital Realty had approximately $17.0 billion of total debt outstanding as of September 30, 2024, comprised of $16.2 billion of unsecured debt and approximately $0.8 billion of secured debt and other. At the end of the third quarter of 2024, net debt-to-Adjusted EBITDA was 5.4x, debt-plus-preferred-to-total enterprise value was 24.5% and fixed charge coverage was 4.1x.

Digital Realty completed the following financing transactions during the third quarter:

In July, the company repaid £250 million ($316 million) in aggregate principal amount of its 2.75% senior notes;
In September, the company issued €850 million aggregate principal amount of 3.875% notes due 2033. Net proceeds were approximately €843 million ($933 million);
In September, the company repaid €375 million ($415 million) on the Euro term loan;
In late September, the company amended, extended, and upsized both its existing global revolving credit facility from $3.75 billion to $4.2 billion and its existing Japanese yen-denominated revolving credit facility from ¥33.3 billion (approximately $232 million) to ¥42.5 billion (approximately $297 million); and
The company also sold 5.2 million shares of common stock under its At-The-Market (ATM) equity issuance program at a weighted average price of $156.19 per share, for net proceeds of approximately $806 million.

Subsequent to quarter end, the company sold an additional 0.4 million shares of common stock under its ATM program at a weighted average price of $160.81 per share, for net proceeds of approximately $62 million.

2024 Outlook

Digital Realty raised its 2024 Core FFO per share and Constant-Currency Core FFO per share outlook to $6.65 – $6.75. The assumptions underlying the outlook are summarized in the following table.


	As of	As of	As of	As of
Top-Line and Cost Structure	February 15, 2024	May 2, 2024	July 25, 2024	October 24, 2024
Total revenue	$5.550 – $5.650 billion	$5.550 – $5.650 billion	$5.550 – $5.650 billion	$5.550 – $5.600 billion
Net non-cash rent adjustments ⁽¹⁾	($35 – $40 million)	($35 – $40 million)	($35 – $40 million)	($25 – $30 million)
Adjusted EBITDA	$2.800 – $2.900 billion	$2.800 – $2.900 billion	$2.800 – $2.900 billion	$2.925 – $2.975 billion
G&A	$450 – $460 million	$450 – $460 million	$450 – $460 million	$455 – $460 million

Internal Growth
Rental rates on renewal leases
Cash basis	4.0% – 6.0%	5.0% – 7.0%	5.0% – 7.0%	8.0% – 10.0%
GAAP basis	6.0% – 8.0%	7.0% – 9.0%	7.0% – 9.0%	12.0% – 14.0%
Year-end portfolio occupancy	+100 – 200 bps	+100 – 200 bps	+100 – 200 bps	+150 – 200 bps
“Same-Capital” cash NOI growth ⁽²⁾	2.0% – 3.0%	2.5% – 3.5%	2.5% – 3.5%	2.75% – 3.25%

Foreign Exchange Rates
U.S. Dollar / Pound Sterling	$1.25 – $1.30	$1.25 – $1.30	$1.25 – $1.30	$1.25 – $1.30
U.S. Dollar / Euro	$1.05 – $1.10	$1.05 – $1.10	$1.05 – $1.10	$1.05 – $1.10

External Growth
Dispositions / Joint Venture Capital
Dollar volume	$1,000 – $1,500 million	$1,000 – $1,500 million	$1,000 – $1,500 million	$1,000 – $1,500 million
Cap rate	6.0% – 8.0%	6.0% – 8.0%	6.0% – 8.0%	6.0% – 8.0%
Development
CapEx (Net of Partner Contributions) ⁽³⁾	$2,000 – $2,500 million	$2,000 – $2,500 million	$2,000 – $2,500 million	$2,200 – $2,400 million
Average stabilized yields	10.0%+	10.0%+	10.0%+	10.0%+
Enhancements and other non-recurring CapEx ⁽⁴⁾	$15 – $20 million	$15 – $20 million	$15 – $20 million	$25 – $30 million
Recurring CapEx + capitalized leasing costs ⁽⁵⁾	$260 – $275 million	$260 – $275 million	$260 – $275 million	$260 – $275 million

Balance Sheet
Long-term debt issuance
Dollar amount	$0 – $1,000 million	$0 – $1,000 million	$0 – $1,000 million	$933 million
Pricing	5.0% – 5.5%	5.0% – 5.5%	5.0% – 5.5%	3.875 %
Timing	Mid-Year	Mid-Year	Mid-Year	Sep-24

Net income per diluted share	$1.80 – $1.95	$1.80 – $1.95	$1.40 – $1.55	$1.40 – $1.50
Real estate depreciation and (gain) / loss on sale	$4.40 – $4.40	$4.40 – $4.40	$4.75 – $4.75	$4.75 – $4.75
Funds From Operations / share (NAREIT-Defined)	$6.20 – $6.35	$6.20 – $6.35	$6.15 – $6.30	$6.15 – $6.25
Non-core expenses and revenue streams	$0.40 – $0.40	$0.40 – $0.40	$0.45 – $0.45	$0.50 – $0.50
Core Funds From Operations / share	$6.60 – $6.75	$6.60 – $6.75	$6.60 – $6.75	$6.65 – $6.75
Foreign currency translation adjustments	$0.00 – $0.00	$0.00 – $0.00	$0.00 – $0.00	$0.00 – $0.00
Constant-Currency Core Funds From Operations / share	$6.60 – $6.75	$6.60 – $6.75	$6.60 – $6.75	$6.65 – $6.75


(1)	Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments).
(2)	The “Same-Capital” pool includes properties owned as of December 31, 2022 with less than 5% of total rentable square feet under development. It excludes properties that were undergoing, or were expected to undergo, development activities in 2023-2024, properties classified as held for sale, and properties sold or contributed to joint ventures for all periods presented.
(3)	Excludes land acquisitions and includes Digital Realty’s share of JV contributions. Figure is net of JV partner contributions.
(4)	Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs.
(5)	Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.

Note: The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures, including FFO, Core FFO, Adjusted FFO, Net Operating Income (NOI), “Same-Capital” Cash NOI and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, a reconciliation from Core FFO to Adjusted FFO, reconciliation from NOI to Cash NOI, and definitions of FFO, Core FFO, Adjusted FFO, NOI and “Same-Capital” Cash NOI are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items such as debt issuances, that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Investor Conference Call

Prior to Digital Realty’s investor conference call at 5:00 p.m. ET / 4:00 p.m. CT on October 24, 2024, a presentation will be posted to the Investors section of the company’s website at https://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company’s third quarter 2024 financial results and operating performance. The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier.

To participate in the live call, investors are invited to dial +1 (888) 317-6003 (for domestic callers) or +1 (412) 317-6061 (for international callers) and reference the conference ID# 0345410 at least five minutes prior to start time. A live webcast of the call will be available via the Investors section of Digital Realty’s website at https://investor.digitalrealty.com.

Telephone and webcast replays will be available after the call until November 24, 2024. The telephone replay can be accessed by dialing +1 (877) 344-7529 (for domestic callers) or +1 (412) 317-0088 (for international callers) and providing the conference ID# 4823548. The webcast replay can be accessed on Digital Realty’s website.

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

Contact Information

Matt Mercier
Chief Financial Officer
Digital Realty
(415) 874-2803

Jordan Sadler / Jim Huseby
Investor Relations
Digital Realty
(415) 275-5344

Consolidated Quarterly Statements of Operations				Third Quarter 2024
Unaudited and in Thousands, Except Per Share Data

	Three Months Ended						Nine Months Ended
	30-Sep-24	30-Jun-24	31-Mar-24		31-Dec-23	30-Sep-23		30-Sep-24	30-Sep-23
Rental revenues	$956,351	$912,994	$894,409		$885,694	$886,960		$2,763,753	$2,627,233
Tenant reimbursements – Utilities	305,097	274,505	276,357		316,634	335,477		855,959	983,041
Tenant reimbursements – Other	39,624	41,964	38,434		46,418	64,876		120,021	151,218
Interconnection & other	112,655	109,505	108,071		106,413	107,305		330,231	313,521
Fee income	12,907	15,656	13,010		14,330	7,819		41,572	30,596
Other	4,581	2,125	862		144	—		7,568	1,819
Total Operating Revenues	$1,431,214	$1,356,749	$1,331,143		$1,369,633	$1,402,437		$4,119,106	$4,107,428

Utilities	$356,063	$315,248	$324,571		$366,083	$384,455		$995,882	$1,105,753
Rental property operating	249,796	237,653	224,369		237,118	223,089		711,817	672,717
Property taxes	45,633	49,620	41,156		40,161	72,279		136,408	159,420
Insurance	4,869	4,755	2,694		3,794	4,289		12,318	13,029
Depreciation & amortization	459,997	425,343	431,102		420,475	420,613		1,316,442	1,274,379
General & administration	115,120	119,511	114,419		109,235	108,039		349,051	321,769
Severance, equity acceleration and legal expenses	2,481	884	791		7,565	2,682		4,156	10,489
Transaction and integration expenses	24,194	26,072	31,839		40,226	14,465		82,105	44,496
Provision for impairment	—	168,303	—		5,363	113,000		168,303	113,000
Other expenses	4,774	(529)	10,836		5,580	1,295		15,080	1,949
Total Operating Expenses	$1,262,928	$1,346,860	$1,181,776		$1,235,598	$1,344,206		$3,791,564	$3,717,001

Operating Income	$168,286	$9,889	$149,367		$134,035	$58,231		$327,542	$390,426

Equity in earnings / (loss) of unconsolidated joint ventures	(26,486)	(41,443)	(16,008)		(29,955)	(19,793)		(83,936)	164
Gain / (loss) on sale of investments	(556)	173,709	277,787		(103)	810,688		450,940	900,634
Interest and other income / (expense), net	37,756	62,261	9,709		50,269	24,812		109,726	18,162
Interest (expense)	(123,803)	(114,756)	(109,535)		(113,638)	(110,767)		(348,095)	(324,103)
Income tax benefit / (expense)	(12,427)	(14,992)	(22,413)		(20,724)	(17,228)		(49,832)	(54,855)
Loss on debt extinguishment and modifications	(2,636)	—	(1,070)		—	—		(3,706)	—
Net Income	$40,134	$74,668	$287,837		$19,884	$745,941		$402,639	$930,427

Net (income) / loss attributable to noncontrolling interests	11,059	5,552	(6,329)		8,419	(12,320)		10,282	(9,893)
Net Income Attributable to Digital Realty Trust, Inc.	$51,193	$80,220	$281,508		$28,304	$733,621		$412,921	$920,534

Preferred stock dividends	(10,181)	(10,181)	(10,181)		(10,181)	(10,181)		(30,544)	(30,544)
Net Income / (Loss) Available to Common Stockholders	$41,012	$70,039	$271,327		$18,122	$723,440		$382,377	$889,990

Weighted-average shares outstanding – basic	327,977	319,537	312,292		305,781	301,827		319,965	296,184
Weighted-average shares outstanding – diluted	336,249	327,946	320,798		314,995	311,341		328,641	306,735
Weighted-average fully diluted shares and units	342,374	334,186	326,975		321,173	317,539		334,830	312,867

Net income / (loss) per share – basic	$0.13	$0.22	$0.87		$0.06	$2.40		$1.20	$3.00
Net income / (loss) per share – diluted	$0.09	$0.20	$0.82		$0.03	$2.31		$1.10	$2.87

Funds From Operations and Core Funds From Operations					Third Quarter 2024
Unaudited and in Thousands, Except Per Share Data

	Three Months Ended							Nine Months Ended
Reconciliation of Net Income to Funds From Operations (FFO)		30-Sep-24	30-Jun-24	31-Mar-24		31-Dec-23	30-Sep-23		30-Sep-24	30-Sep-23

Net Income / (Loss) Available to Common Stockholders		$41,012	$70,039	$271,327		$18,122	$723,440		$382,378	$889,990
Adjustments:
Non-controlling interest in operating partnership		1,000	1,500	6,200		410	16,300		8,700	20,300
Real estate related depreciation & amortization ⁽¹⁾		449,086	414,920	420,591		410,167	410,836		1,284,597	1,247,072
Reconciling items related to non-controlling interests		(19,746)	(17,317)	(8,017)		(15,377)	(14,569)		(45,081)	(42,101)
Unconsolidated JV real estate related depreciation & amortization		48,474	47,117	47,877		64,833	43,215		143,468	112,320
(Gain) / loss on real estate transactions		556	(173,709)	(286,704)		103	(810,688)		(459,857)	(908,459)
Provision for impairment		—	168,303	—		5,363	113,000		168,303	113,000
Funds From Operations		$520,382	$510,852	$451,273		$483,621	$481,535		$1,482,507	$1,432,124

Weighted-average shares and units outstanding – basic		334,103	325,777	318,469		311,960	308,024		326,154	302,316
Weighted-average shares and units outstanding – diluted ^{(2) (3)}		342,374	334,186	326,975		321,173	317,539		334,830	312,867

Funds From Operations per share – basic		$1.56	$1.57	$1.42		$1.55	$1.56		$4.55	$4.74

Funds From Operations per share – diluted^{(2) (3)}		$1.55	$1.57	$1.41		$1.53	$1.55		$4.52	$4.68

	Three Months Ended							Nine Months Ended
Reconciliation of FFO to Core FFO		30-Sep-24	30-Jun-24	31-Mar-24		31-Dec-23	30-Sep-23		30-Sep-24	30-Sep-23

Funds From Operations		$520,382	$510,852	$451,273		$483,621	$481,535		$1,482,507	$1,432,124
Other non-core revenue adjustments ⁽⁴⁾		(4,583)	(33,818)	3,525		(146)	(27)		(34,876)	26,540
Transaction and integration expenses		24,194	26,072	31,839		40,226	14,465		82,105	44,496
Loss on debt extinguishment and modifications		2,636	—	1,070		—	—		3,706	—
Severance, equity acceleration and legal expenses ⁽⁵⁾		2,481	884	791		7,565	2,682		4,156	10,489
(Gain) / Loss on FX and derivatives revaluation		1,513	32,222	33,602		(24,804)	451		67,337	(14,195)
Other non-core expense adjustments ⁽⁶⁾		11,120	2,271	10,052		1,956	1,295		23,443	1,949
Core Funds From Operations		$557,744	$538,482	$532,153		$508,417	$500,402		$1,628,378	$1,501,403

Weighted-average shares and units outstanding – diluted^{(2) (3)}		334,476	326,181	319,138		312,356	308,539		326,545	302,740

Core Funds From Operations per share – diluted ⁽²⁾		$1.67	$1.65	$1.67		$1.63	$1.62		$4.99	$4.96

(1) Real Estate Related Depreciation & Amortization	Three Months Ended							Nine Months Ended
		30-Sep-24	30-Jun-24	31-Mar-24		31-Dec-23	30-Sep-23		30-Sep-24	30-Sep-23

Depreciation & amortization per income statement		$459,997	$425,343	$431,102		$420,475	$420,613		$1,316,442	$1,274,384
Non-real estate depreciation		(10,911)	(10,424)	(10,511)		(10,308)	(9,777)		(31,845)	(27,312)
Real Estate Related Depreciation & Amortization		$449,086	$414,920	$420,591		$410,167	$410,836		$1,284,597	$1,247,072


(2)	Certain of Teraco’s minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to Digital Realty in exchange for cash or the equivalent value of shares of Digital Realty common stock, or a combination thereof. US GAAP requires Digital Realty to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO/share. The potential future dilutive impact associated with this put right will be excluded from Core FFO and AFFO until settlement occurs – causing diluted share count to be higher for FFO than for Core FFO and AFFO. When calculating diluted FFO, Teraco related minority interest is added back to the FFO numerator as the denominator assumes all shares have been put back to Digital Realty.

Three Months Ended

Nine Months Ended

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

30-Sep-23

30-Sep-24

30-Sep-23

Teraco noncontrolling share of FFO

$9,828

$12,453

$9,768

$7,135

$11,537

$32,049

$32,251

Teraco related minority interest

$9,828

$12,453

$9,768

$7,135

$11,537

$32,049

$32,251


(3)	For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and the share count detail section that follows the reconciliation of Core FFO to AFFO for calculations of weighted average common stock and units outstanding. For definitions and discussion of FFO and Core FFO, see the Definitions section.
(4)	Includes deferred rent adjustments related to a customer bankruptcy, joint venture development fees included in gains, lease termination fees and gain on sale of equity investment included in other income.
(5)	Relates to severance and other charges related to the departure of company executives and integration-related severance.
(6)	Includes write-offs associated with bankrupt or terminated customers, non-recurring legal expenses and adjustments to reflect our proportionate share of transaction costs associated with noncontrolling interests.

Adjusted Funds From Operations (AFFO)					Third Quarter 2024
Unaudited and in Thousands, Except Per Share Data

	Three Months Ended							Nine Months Ended
Reconciliation of Core FFO to AFFO		30-Sep-24	30-Jun-24	31-Mar-24		31-Dec-23	30-Sep-23		30-Sep-24	30-Sep-23

Core FFO available to common stockholders and unitholders		$557,744	$538,482	$532,153		$508,417	$500,402		$1,628,378	$1,501,403
Adjustments:
Non-real estate depreciation		10,911	10,424	10,511		10,308	9,777		31,845	27,312
Amortization of deferred financing costs		4,853	5,072	5,576		5,744	5,776		15,501	15,832
Amortization of debt discount/premium		1,329	1,321	1,832		973	1,360		4,481	4,000
Non-cash stock-based compensation expense		15,026	14,464	12,592		9,226	14,062		42,083	41,012
Straight-line rental revenue		(17,581)	334	9,976		(21,992)	(14,080)		(7,271)	(46,424)
Straight-line rental expense		1,690	782	1,111		(4,999)	1,427		3,583	1,432
Above- and below-market rent amortization		(742)	(1,691)	(854)		(856)	(1,127)		(3,287)	(3,548)
Deferred tax (benefit) / expense		(9,366)	(9,982)	(3,437)		33,448	(8,539)		(22,786)	(16,995)
Leasing compensation & internal lease commissions		10,918	10,519	13,291		9,848	12,515		34,728	35,193
Recurring capital expenditures ⁽¹⁾		(67,308)	(60,483)	(47,676)		(142,808)	(90,251)		(175,467)	(184,214)

AFFO available to common stockholders and unitholders ⁽²⁾		$507,474	$509,241	$535,073		$407,306	$431,322		$1,551,788	$1,375,001

Weighted-average shares and units outstanding – basic		334,103	325,777	318,469		311,960	308,024		326,154	302,316
Weighted-average shares and units outstanding – diluted ⁽³⁾		334,476	326,181	319,138		312,356	308,539		326,545	302,740

AFFO per share – diluted ⁽³⁾		$1.52	$1.56	$1.68		$1.30	$1.40		$4.75	$4.54

Dividends per share and common unit		$1.22	$1.22	$1.22		$1.22	$1.22		$3.66	$3.66

Diluted AFFO Payout Ratio		80.4 %	78.1 %	72.8 %		93.6 %	87.3 %		77.0 %	80.6 %

	Three Months Ended							Nine Months Ended
Share Count Detail		30-Sep-24	30-Jun-24	31-Mar-24		31-Dec-23	30-Sep-23		30-Sep-24	30-Sep-23

Weighted Average Common Stock and Units Outstanding		334,103	325,777	318,469		311,960	308,024		326,154	302,316
Add: Effect of dilutive securities		373	404	669		396	515		391	424
Weighted Avg. Common Stock and Units Outstanding – diluted		334,476	326,181	319,138		312,356	308,539		326,545	302,740


(1)	Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues, including second-generation tenant improvements and external leasing commissions. Recurring capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building, costs which are incurred to bring a building up to Digital Realty’s operating standards, or internal leasing commissions.
(2)	For a definition and discussion of AFFO, see the Definitions section. For a reconciliation of net income available to common stockholders to FFO and Core FFO, see above.
(3)	For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and for calculations of weighted average common stock and units outstanding.

Consolidated Balance Sheets					Third Quarter 2024
Unaudited and in Thousands, Except Per Share Data

	30-Sep-24		30-Jun-24			31-Mar-24		31-Dec-23		30-Sep-23
Assets
Investments in real estate:
Real estate		$28,808,770		$27,470,635			$27,122,796		$27,306,369		$25,887,031
Construction in progress		5,175,054		4,676,012			4,496,840		4,635,215		5,020,464
Land held for future development		23,392		93,938			114,240		118,190		179,959
Investments in Real Estate		$34,007,216		$32,240,584			$31,733,877		$32,059,773		$31,087,453
Accumulated depreciation and amortization		(8,777,002)		(8,303,070)			(7,976,093)		(7,823,685)		(7,489,193)
Net Investments in Properties		$25,230,214		$23,937,514			$23,757,784		$24,236,089		$23,598,260
Investment in unconsolidated joint ventures		2,456,448		2,332,698			2,365,821		2,295,889		2,180,313
Net Investments in Real Estate		$27,686,662		$26,270,212			$26,123,605		$26,531,977		$25,778,573

Operating lease right-of-use assets, net		$1,228,507		$1,211,003			$1,233,410		$1,414,256		$1,274,410
Cash and cash equivalents		2,175,605		2,282,062			1,193,784		1,625,495		1,062,050
Accounts and other receivables, net ⁽¹⁾		1,274,460		1,222,403			1,217,276		1,278,110		1,325,725
Deferred rent, net		641,778		613,749			611,670		624,427		586,418
Goodwill		9,395,233		9,128,811			9,105,026		9,239,871		8,998,074
Customer relationship value, deferred leasing costs & other intangibles, net		2,367,467		2,315,143			2,359,380		2,500,237		2,506,198
Assets held for sale		—		—			287,064		478,503		—
Other assets		525,679		563,500			501,875		420,382		401,068
Total Assets		$45,295,392		$43,606,883			$42,633,089		$44,113,257		$41,932,515

Liabilities and Equity
Global unsecured revolving credit facilities, net		$1,786,921		$1,848,167			$1,901,126		$1,812,287		$1,698,780
Unsecured term loans, net		913,733		1,297,893			1,303,263		1,560,305		1,524,663
Unsecured senior notes, net of discount		13,528,061		12,507,551			13,190,202		13,422,342		13,072,102
Secured and other debt, net of discount		757,831		686,135			625,750		630,973		574,231
Operating lease liabilities		1,343,903		1,336,839			1,357,751		1,542,094		1,404,510
Accounts payable and other accrued liabilities		2,140,764		1,973,798			1,870,344		2,168,983		2,147,103
Deferred tax liabilities, net		1,223,771		1,132,090			1,121,224		1,151,096		1,088,724
Accrued dividends and distributions		—		—			—		387,988		—
Security deposits and prepaid rents		423,797		416,705			413,225		401,867		385,521
Obligations associated with assets held for sale		—		—			9,981		39,001		—
Total Liabilities		$22,118,781		$21,199,178			$21,792,866		$23,116,936		$21,895,634

Redeemable non-controlling interests		1,465,636		1,399,889			1,350,736		1,394,814		1,360,308

Equity
Preferred Stock: $0.01 par value per share, 110,000 shares authorized:
Series J Cumulative Redeemable Preferred Stock ⁽²⁾		$193,540		$193,540			$193,540		$193,540		$193,540
Series K Cumulative Redeemable Preferred Stock ⁽³⁾		203,264		203,264			203,264		203,264		203,264
Series L Cumulative Redeemable Preferred Stock ⁽⁴⁾		334,886		334,886			334,886		334,886		334,886
Common Stock: $0.01 par value per share, 392,000 shares authorized ⁽⁵⁾		3,285		3,231			3,097		3,088		3,002
Additional paid-in capital		27,229,143		26,388,393			24,508,683		24,396,797		23,239,088
Dividends in excess of earnings		(6,060,642)		(5,701,096)			(5,373,529)		(5,262,648)		(4,900,757)
Accumulated other comprehensive (loss), net		(657,364)		(884,715)			(850,091)		(751,393)		(882,996)
Total Stockholders’ Equity		$21,246,112		$20,537,503			$19,019,850		$19,117,535		$18,190,026

Noncontrolling Interests
Noncontrolling interest in operating partnership		$427,930		$434,253			$438,422		$438,081		$441,366
Noncontrolling interest in consolidated joint ventures		36,933		36,060			31,215		45,892		45,182

Total Noncontrolling Interests		$464,863		$470,313			$469,637		$483,972		$486,547

Total Equity		$21,710,975		$21,007,816			$19,489,487		$19,601,507		$18,676,573

Total Liabilities and Equity		$45,295,392		$43,606,883			$42,633,089		$44,113,257		$41,932,515


(1)	Net of allowance for doubtful accounts of $56,353 and $46,643 as of September 30, 2024 and September 30, 2023, respectively.
(2)	Series J Cumulative Redeemable Preferred Stock, 5.250%, $200,000 liquidation preference ($25.00 per share), 8,000 shares issued and outstanding as of September 30, 2024 and September 30, 2023.
(3)	Series K Cumulative Redeemable Preferred Stock, 5.850%, $210,000 liquidation preference ($25.00 per share), 8,400 shares issued and outstanding as of September 30, 2024 and September 30, 2023.
(4)	Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 liquidation preference ($25.00 per share), 13,800 shares issued and outstanding as of September 30, 2024 and September 30, 2023.
(5)	Common Stock: 331,347 and 302,846 shares issued and outstanding as of September 30, 2024 and September 30, 2023, respectively.

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios			Third Quarter 2024
Unaudited and Dollars in Thousands

	Three Months Ended
Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) ⁽¹⁾		30-Sep-24		30-Jun-24	31-Mar-24	31-Dec-23	30-Sep-23

Net Income / (Loss) Available to Common Stockholders		$41,012		$70,039	$271,327	$18,122	$723,440
Interest		123,803		114,756	109,535	113,638	110,767
Loss on debt extinguishment and modifications		2,636		—	1,070	—	—
Income tax expense (benefit)		12,427		14,992	22,413	20,724	17,228
Depreciation & amortization		459,997		425,343	431,102	420,475	420,613
EBITDA		$639,875		$625,130	$835,446	$572,958	$1,272,048
Unconsolidated JV real estate related depreciation & amortization		48,474		47,117	47,877	64,833	43,214
Unconsolidated JV interest expense and tax expense		34,951		27,704	34,271	42,140	27,000
Severance, equity acceleration and legal expenses		2,481		884	791	7,565	2,682
Transaction and integration expenses		24,194		26,072	31,839	40,226	14,465
(Gain) / loss on sale of investments		556		(173,709)	(277,787)	103	(810,688)
Provision for impairment		—		168,303	—	5,363	113,000
Other non-core adjustments, net ⁽²⁾		8,642		743	21,608	(35,439)	1,719
Non-controlling interests		(11,059)		(5,552)	6,329	(8,419)	12,320
Preferred stock dividends		10,181		10,181	10,181	10,181	10,181
Adjusted EBITDA		$758,296		$726,874	$710,556	$699,509	$685,943


(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see the Definitions section.
(2)	Includes foreign exchange net unrealized gains/losses attributable to remeasurement, deferred rent adjustments related to a customer bankruptcy, write offs associated with bankrupt or terminated customers, non-recurring legal expenses, gain on sale of land option and lease termination fees.

Three Months Ended

Financial Ratios

30-Sep-24

30-Jun-24

31-Mar-24

31-Dec-23

30-Sep-23

Total GAAP interest expense

$123,803

$114,756

$109,535

$113,638

$110,767

Capitalized interest

28,312

27,592

28,522

33,032

29,130

Change in accrued interest and other non-cash amounts

43,720

(55,605)

55,421

(66,013)

44,183

Cash Interest Expense ⁽³⁾

$195,835

$86,743

$193,479

$80,657

$184,081

Preferred stock dividends

10,181

Total Fixed Charges ⁽⁴⁾

$162,296

$152,529

$148,239

$156,851

$150,079

Coverage

Interest coverage ratio ⁽⁵⁾

4.3x

4.2x

Cash interest coverage ratio ⁽⁶⁾

3.4x

6.4x

6.3x

3.2x

7.0x

Fixed charge coverage ratio ⁽⁷⁾

4.1x

4.0x

Cash fixed charge coverage ratio ⁽⁸⁾

3.3x

5.9x

3.1x

5.9x

3.3x

Leverage

Debt to total enterprise value ^(9)(10)

23.5 %

24.2 %

26.7 %

28.6 %

Debt-plus-preferred-stock-to-total-enterprise-value ^(10)(11)

24.5 %

25.3 %

27.9 %

29.8 %

Pre-tax income to interest expense ⁽¹²⁾

1.3x

1.7x

3.5x

1.2x

7.6x

Net Debt-to-Adjusted EBITDA ⁽¹³⁾

5.4x

5.3x

5.7x

6.0x

6.4x


(3)	Cash interest expense is interest expense less amortization of debt discount and deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash-based interest expense.
(4)	Fixed charges consist of GAAP interest expense, capitalized interest, and preferred stock dividends.
(5)	Adjusted EBITDA divided by GAAP interest expense plus capitalized interest (including our pro rata share of unconsolidated joint venture interest expense).
(6)	Adjusted EBITDA divided by cash interest expense (including our pro rata share of unconsolidated joint venture interest expense).
(7)	Adjusted EBITDA divided by fixed charges (including our pro rata share of unconsolidated joint venture fixed charges).
(8)	Adjusted EBITDA divided by the sum of cash interest expense and preferred stock dividends (including our pro rata share of unconsolidated joint venture cash fixed charges).
(9)	Total debt divided by market value of common equity plus debt plus preferred stock.
(10)	Total enterprise value defined as market value of common equity plus debt plus preferred stock.
(11)	Same as (9), except numerator includes preferred stock.
(12)	Calculated as net income plus interest expense divided by GAAP interest expense.
(13)	Calculated as total debt at balance sheet carrying value, plus capital lease obligations, plus Digital Realty’s pro rata share of unconsolidated joint venture debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated joint venture cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated joint venture EBITDA), multiplied by four.

Definitions

Funds From Operations (FFO):
We calculate funds from operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts (Nareit) in the Nareit Funds From Operations White Paper – 2018 Restatement. FFO is a non-GAAP financial measure and represents net income (loss) (computed in accordance with GAAP), excluding gain (loss) from the disposition of real estate assets, provision for impairment, real estate related depreciation and amortization (excluding amortization of deferred financing costs), our share of unconsolidated JV real estate related depreciation & amortization, net income attributable to non-controlling interests in operating partnership and, depreciation related to non-controlling interests. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions and after adjustments for unconsolidated partnerships and joint ventures, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the Nareit definition and, accordingly, our FFO may not be comparable to other REITs’ FFO. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Core Funds from Operations (Core FFO):
We present core funds from operations, or Core FFO, as a supplemental operating measure because, in excluding certain items that do not reflect core revenue or expense streams, it provides a performance measure that, when compared year over year, captures trends in our core business operating performance. We calculate Core FFO by adding to or subtracting from FFO (i) other non-core revenue adjustments, (ii) transaction and integration expenses, (iii) loss on debt extinguishment and modifications, (iv) gain on / issuance costs associated with redeemed preferred stock, (v) severance, equity acceleration and legal expenses, (vi) gain/loss on FX revaluation, and (vii) other non-core expense adjustments. Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO as a measure of our performance is limited. Other REITs may calculate Core FFO differently than we do and accordingly, our Core FFO may not be comparable to other REITs’ Core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Adjusted Funds from Operations (AFFO):
We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs, including on a per share and unit basis. We calculate AFFO by adding to or subtracting from Core FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs, (iii) amortization of debt discount/premium, (iv) non-cash stock-based compensation expense, (v) straight-line rental revenue, (vi) straight-line rental expense, (vii) above- and below-market rent amortization, (viii) deferred tax expense / (benefit), (ix) leasing compensation and internal lease commissions, and (x) recurring capital expenditures. Other REITs may calculate AFFO differently than we do and, accordingly, our AFFO may not be comparable to other REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

EBITDA and Adjusted EBITDA:
We believe that earnings before interest, loss on debt extinguishment and modifications, income taxes, and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our performance without the impact of non-cash depreciation and amortization or the cost of debt and, with respect to Adjusted EBITDA, (i) unconsolidated joint venture real estate related depreciation & amortization, (ii) unconsolidated joint venture interest expense and tax, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) non-controlling interests, (ix) preferred stock dividends, and (x) issuance costs associated with redeemed preferred stock. Adjusted EBITDA is EBITDA excluding (i) unconsolidated joint venture real estate related depreciation & amortization, (ii) unconsolidated joint venture interest expense and tax, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) non-controlling interests, (ix) preferred stock dividends, and (x) gain on / issuance costs associated with redeemed preferred stock. In addition, we believe EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs. Because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, exclude capitalized costs, such as leasing commissions, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our performance is limited. Other REITs may calculate EBITDA and Adjusted EBITDA differently than we do and, accordingly, our EBITDA and Adjusted EBITDA may not be comparable to other REITs’ EBITDA and Adjusted EBITDA. Accordingly, EBITDA and Adjusted EBITDA should be considered only as supplements to net income computed in accordance with GAAP as a measure of our financial performance.

Net Operating Income (NOI) and Cash NOI:
Net operating income, or NOI, represents rental revenue, tenant reimbursement revenue and interconnection revenue less utilities expense, rental property operating expenses, property taxes and insurance expenses (as reflected in the statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the company’s rental portfolio. Cash NOI is NOI less straight-line rents and above- and below-market rent amortization. Cash NOI is commonly used by stockholders, company management and industry analysts as a measure of property operating performance on a cash basis. Same-Capital Cash NOI represents buildings owned as of December 31, 2022 of the prior year with less than 5% of total rentable square feet under development and excludes buildings that were undergoing, or were expected to undergo, development activities in 2023-2024, buildings classified as held for sale, and buildings sold or contributed to joint ventures for all periods presented (prior period numbers adjusted to reflect current same-capital pool). However, because NOI and cash NOI exclude depreciation and amortization and capture neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our results from operations, the utility of NOI and cash NOI as measures of our performance is limited. Other REITs may calculate NOI and cash NOI differently than we do and, accordingly, our NOI and cash NOI may not be comparable to other REITs’ NOI and cash NOI. NOI and cash NOI should be considered only as supplements to net income computed in accordance with GAAP as measures of our performance.

Additional Definitions

Net debt-to-Adjusted EBITDA ratio is calculated as total debt at balance sheet carrying value, plus capital lease obligations, plus Digital Realty’s pro rata share of unconsolidated joint venture debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated joint venture cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated joint venture EBITDA), multiplied by four.

Debt-plus-preferred-to-total enterprise value is total debt plus preferred stock divided by total debt plus the liquidation value of preferred stock and the market value of outstanding Digital Realty Trust, Inc. common stock and Digital Realty Trust, L.P. units, assuming the redemption of Digital Realty Trust, L.P. units for shares of Digital Realty Trust, Inc. common stock.

Fixed charge coverage ratio is Adjusted EBITDA divided by the sum of GAAP interest expense, capitalized interest and preferred stock dividends. For the quarter ended September 30, 2024, GAAP interest expense was $124 million, capitalized interest was $28 million and preferred stock dividends was $10 million.


Reconciliation of Net Operating Income (NOI)	Three Months Ended						Nine Months Ended
(in thousands)	30-Sep-24		30-Jun-24		30-Sep-23		30-Sep-24		30-Sep-23

Operating income		$168,286		$9,889		$58,231		$327,542		$390,426

Fee income		(12,907)		(15,656)		(7,819)		(41,572)		(30,596)
Other income		(4,581)		(2,125)		—		(7,568)		(1,819)
Depreciation and amortization		459,997		425,343		420,613		1,316,442		1,274,379
General and administrative		115,120		119,511		108,039		349,051		321,769
Severance, equity acceleration and legal expenses		2,481		884		2,682		4,156		10,489
Transaction expenses		24,194		26,072		14,465		82,105		44,496
Provision for impairment		—		168,303		113,000		168,303		113,000
Other expenses		4,774		(529)		1,295		15,080		1,949

Net Operating Income		$757,365		$731,692		$710,505		$2,213,540		$2,124,094


Cash Net Operating Income (Cash NOI)

Net Operating Income		$757,365		$731,692		$710,505		$2,213,540		$2,124,094

Straight-line rental revenue		(18,423)		(2,873)		(14,185)		(23,818)		(17,999)
Straight-line rental expense		1,683		959		1,632		4,011		1,844
Above- and below-market rent amortization		(742)		(1,691)		(1,127)		(3,287)		(3,548)

Cash Net Operating Income		$739,883		$728,088		$696,826		$2,190,446		$2,104,391



Constant Currency CFFO Reconciliation	Three Months Ended						Nine Months Ended
(in thousands, except per share data)	30-Sep-24				30-Sep-23		30-Sep-24		30-Sep-23

Core FFO ⁽¹⁾		$557,744				$500,402		$1,628,378		$1,501,403
Core FFO impact of holding ’23 Exchange Rates Constant ⁽²⁾		(3,281)				—		1,792		—

Constant Currency Core FFO		$554,463				$500,402		$1,630,170		$1,501,403
Weighted-average shares and units outstanding – diluted		334,476				308,539		326,545		302,740
Constant Currency CFFO Per Share		$1.66				$1.62		$4.99		$4.96


1)	As reconciled to net income above.
2)	Adjustment calculated by holding currency translation rates for 2024 constant with average currency translation rates that were applicable to the same periods in 2023.

This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements relating to: our economic outlook, our expected investment and expansion activity, anticipated continued demand for our products and service, our liquidity, our joint ventures, supply and demand for data center and colocation space, our acquisition and disposition activity, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, our product offerings, available inventory, rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, investment activity, the company’s FFO, Core FFO, constant currency Core FFO, adjusted FFO, and net income, 2024 outlook and underlying assumptions, information related to trends, our strategy and plans, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and development activity and plans, projected construction costs, estimated yields on investment, expected occupancy, expected square footage and IT load capacity upon completion of development projects, backlog NOI, NAV components, and other forward-looking financial data. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. Some of the risks and uncertainties that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

reduced demand for data centers or decreases in information technology spending;
decreased rental rates, increased operating costs or increased vacancy rates;
increased competition or available supply of data center space;
the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services;
breaches of our obligations or restrictions under our contracts with our customers;
our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties;
the impact of current global and local economic, credit and market conditions;
global supply chain or procurement disruptions, or increased supply chain costs;
the impact from periods of heightened inflation on our costs, such as operating and general and administrative expenses, interest expense and real estate acquisition and construction costs;
the impact on our customers’ and our suppliers’ operations during an epidemic, pandemic, or other global events;
our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers;
changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate;
our inability to retain data center space that we lease or sublease from third parties;
information security and data privacy breaches;
difficulties managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas;
our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent and future acquisitions;
our failure to successfully integrate and operate acquired or developed properties or businesses;
difficulties in identifying properties to acquire and completing acquisitions;
risks related to joint venture investments, including as a result of our lack of control of such investments;
risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements;
our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital;
financial market fluctuations and changes in foreign currency exchange rates;
adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges;
our inability to manage our growth effectively;
losses in excess of our insurance coverage;
our inability to attract and retain talent;
environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals;
the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations;
our inability to comply with rules and regulations applicable to our company;
Digital Realty Trust, Inc.’s failure to maintain its status as a REIT for federal income tax purposes;
Digital Realty Trust, L.P.’s failure to qualify as a partnership for federal income tax purposes;
restrictions on our ability to engage in certain business activities;
changes in local, state, federal and international laws, and regulations, including related to taxation, real estate, and zoning laws, and increases in real property tax rates; and
the impact of any financial, accounting, legal or regulatory issues or litigation that may affect us.

The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. Several additional material risks are discussed in our annual report on Form 10‑K for the year ended December 31, 2023, and other filings with the U.S. Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the 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. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Digital Realty, Digital Realty Trust, the Digital Realty logo, Interxion, Turn-Key Flex, Powered Base Building, ServiceFabric, AnyScale Colo, Pervasive Data Center Architecture, PlatformDIGITAL, PDx, Data Gravity Index and Data Gravity Index DGx are registered trademarks and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. All other names, trademarks and service marks are the property of their respective owners.

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Earnings News

Meridian Corporation Reports Third Quarter 2024 Results and Announces a Quarterly Dividend of $0.125 per Common Share

25.10.2024 by admin

MALVERN, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — Meridian Corporation MRBK today reported:

	Three Months Ended
(Dollars in thousands, except per share data) (Unaudited)	September 30, 2024		June 30, 2024		September 30, 2023
Income:
Net income	$	4,743	$	3,326	$	4,005
Diluted earnings per common share	$	0.42	$	0.30	$	0.35
Pre-tax, pre-provision income ⁽¹⁾	$	8,527	$	7,072	$	5,292
(1) See Non-GAAP reconciliation in the Appendix

Net income for the quarter ended September 30, 2024 was $4.7 million and pre-tax, pre-provision income was $8.5 million¹.
Return on average assets and return on average equity for the third quarter of 2024 were 0.80% and 11.41%, respectively.
Net interest margin was 3.20% for the third quarter of 2024, with a loan yield of 7.41%.
Total assets at September 30, 2024 were $2.4 billion, compared to $2.4 billion at June 30, 2024 and $2.2 billion at September 30, 2023.
Commercial loans, excluding leases, increased $30.0 million, or 2% for the quarter and $158.0 million, or 11% year over year.
Third quarter deposit growth was $63.5 million, or 3%, and $170.3 million, or 9.4% year over year.
Non-interest-bearing deposits were up $13.2 million or 6%, quarter over quarter.
On October 22, 2024, the Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable November 19, 2024 to shareholders of record as of November 12, 2024.

Christopher J. Annas, Chairman and CEO commented:

“Our third quarter earnings showed significant improvement from the second quarter, increasing by 42.6% to $4.7 million, or $0.42 per share. Key highlights include an improving net interest margin at 3.20% for the quarter, and strong results from our wealth and mortgage segments. Robust loan growth of 7.2% for the first nine months of the year reflects our strong sales culture and healthy economic conditions in our primary market areas. We have great systems for lenders to be more effective, and that same technology for our customers to bank entirely online, which leads to better efficiencies. Deposit growth is consistent, and we are evaluating deposit-rich segments to accelerate growth that is less reliant on branch networks.

Our wealth segment is benefiting from local disruption and the cross-selling from our commercial/industrial and CRE lending units. A recent hire from a large local bank has accelerated growth and has a pipeline for adding advisors. The mortgage segment has recovered from the rate shock, and despite a continued lack of homes for sale, is hitting volume levels similar to pre-2019. The hard decisions made to cut back expenses and reposition the business are paying off. And if mortgage rates fall in 2025, there are many refinance opportunities.

Since starting the bank in 2004, Meridian has built a great reputation for responsiveness and consistency. The business community heavily relies on these qualities in a bank to build and grow themselves. We are the go-to bank in the Philadelphia metro market, and in a great position to build ever larger market share.”

Select Condensed Financial Information

	As of or for the quarter ended (Unaudited)
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars in thousands, except per share data)
Income:
Net income	$	4,743		$	3,326		$	2,676		$	571		$	4,005
Basic earnings per common share		0.43			0.30			0.24			0.05			0.36
Diluted earnings per common share		0.42			0.30			0.24			0.05			0.35
Net interest income		18,242			16,846			16,609			16,942			17,224

Balance Sheet:
Total assets	$	2,387,721		$	2,351,584		$	2,292,923		$	2,246,193		$	2,230,971
Loans, net of fees and costs		2,008,396			1,988,535			1,956,315			1,895,806			1,885,629
Total deposits		1,978,927			1,915,436			1,900,696			1,823,462			1,808,645
Non-interest bearing deposits		237,207			224,040			220,581			239,289			244,668
Stockholders’ equity		167,450			162,382			159,936			158,022			155,114

Balance Sheet Average Balances:
Total assets	$	2,373,261		$	2,319,295		$	2,269,047		$	2,219,340		$	2,184,385
Total interest earning assets		2,277,523			2,222,177			2,173,212			2,121,068			2,086,331
Loans, net of fees and costs		1,997,574			1,972,740			1,944,187			1,891,170			1,876,648
Total deposits		1,960,145			1,919,954			1,823,523			1,820,532			1,782,140
Non-interest bearing deposits		246,310			229,040			233,255			254,025			253,485
Stockholders’ equity		165,309			162,119			159,822			157,210			156,271

Performance Ratios (Annualized):
Return on average assets		0.80	%		0.58	%		0.47	%		0.10	%		0.73	%
Return on average equity		11.41	%		8.25	%		6.73	%		1.44	%		10.17	%

Income Statement – Third Quarter 2024 Compared to Second Quarter 2024

Third quarter net income increased $1.4 million, or 42.6%, to $4.7 million led by increased net interest income and a lower quarterly provision for credit losses, combined with an increase in net operating income from the mortgage division. Net interest income increased $1.4 million, or 8.3%, as the increase in interest income out-paced the increase in interest expense. Non-interest income increased $1.6 million or 17.2%, reflecting higher levels of mortgage banking income and an improvement in fair value changes of the pipeline as well as fair valued portfolio loans. Non-interest expense increased $1.5 million, or 8.0%, due primarily to an increase in salaries and employee benefits expense, professional fees and other expense. These increases were partially offset by a decrease in advertising and promotion expense. Detailed explanations of the major categories of income and expense follow below.

Net Interest income

The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the periods indicated and allocated by rate and volume. Changes in interest income and/or expense related to changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category.

	Quarter Ended
(dollars in thousands)	September 30, 2024		June 30, 2024		$ Change			% Change		Change due to rate			Change due to volume
Interest income:
Cash and cash equivalents	$	416	$	331	$	85		25.7	%	$	3		$	82
Investment securities – taxable		1,480		1,324		156		11.8	%		28			128
Investment securities – tax exempt ⁽¹⁾		397		403		(6	)	(1.5	)%		(3	)		(3	)
Loans held for sale		766		572		194		33.9	%		(5	)		199
Loans held for investment ⁽¹⁾		37,339		35,916		1,423		4.0	%		967			456
Total loans		38,105		36,488		1,617		4.4	%		962			655
Total interest income	$	40,398	$	38,546	$	1,852		4.8	%	$	990		$	862
Interest expense:
Interest-bearing demand deposits	$	1,390	$	1,279	$	111		8.7	%	$	118		$	(7	)
Money market and savings deposits		8,391		8,265		126		1.5	%		(494	)		620
Time deposits		9,532		9,447		85		0.9	%		(406	)		491
Total interest – bearing deposits		19,313		18,991		322		1.7	%		(782	)		1,104
Borrowings		1,985		1,851		134		7.2	%		21			113
Subordinated debentures		779		777		2		0.3	%		—			2
Total interest expense		22,077		21,619		458		2.1	%		(761	)		1,219
Net interest income differential	$	18,321	$	16,927	$	1,394		8.24	%	$	1,751		$	(357	)
(1) Reflected on a tax-equivalent basis.

Interest income increased $1.9 million quarter-over-quarter on a tax equivalent basis, driven by the level of average earning assets which increased by $55.3 million contributing $862 thousand to the interest income increase. In addition, the yield on earnings assets increased 8 basis points during the period.

Average total loans, excluding residential loans for sale, increased $25.0 million resulting in an increase due to volume in interest income of $456 thousand. The largest drivers of this increase were commercial, commercial real estate, and small business loans which on a combined basis increased $34.4 million on average, partially offset by a decrease in average leases of $11.6 million. Home equity, residential real estate, consumer and other loans held in portfolio increased on a combined basis $2.1 million on average. The yield on total loans increased 10 basis points, helped by loan fees of $509 thousand, and the yield on cash and investments increased 3 basis points on a combined basis.

Total interest expense increased $458 thousand, quarter-over-quarter, due to higher levels of deposits, particularly money market and time deposits having a bigger impact than rate changes. Interest expense on total deposits increased $322 thousand and interest expense on borrowings increased $134 thousand. During the period, money market accounts and time deposits increased $15.1 million and $8.6 million on average, respectively, while interest-bearing demand deposits decreased $640 thousand on average. Borrowings increased $9.1 million on average. Overall increase in interest expense on deposits due to volume changes was $1.1 million.

The cost of interest-bearing deposits decreased 3 basis points driven by certain money market funds and wholesale time deposits which repriced at lower costs. The total decrease in interest expense on deposits attributable to rate changes was $782 thousand. Overall the net interest margin increased 14 basis points to 3.20% as the yield on earning assets improved, the cost of funds declined and non-interest bearing balances increased $18.7 million on average.

Provision for Credit Losses

The overall provision for credit losses for the third quarter decreased $398 thousand to $2.3 million, from $2.7 million in the second quarter. The provision for funded loans decreased $670 thousand and the provision on unfunded loan commitments increased $272 thousand during the current quarter. The third quarter provision for funded loans of $2.0 million declined from the prior quarter due largely to a decrease of $1.9 million in net charge-offs and was positively impacted by favorable changes in certain portfolio baseline loss rates.

Non-interest income

The following table presents the components of non-interest income for the periods indicated:

	Quarter Ended
(Dollars in thousands)	September 30, 2024			June 30, 2024			$ Change			% Change
Mortgage banking income	$	6,474		$	5,420		$	1,054		19.4	%
Wealth management income		1,447			1,444			3		0.2	%
SBA loan income		544			785			(241	)	(30.7	)%
Earnings on investment in life insurance		222			215			7		3.3	%
Net change in the fair value of derivative instruments		(102	)		203			(305	)	(150.2	)%
Net change in the fair value of loans held-for-sale		169			(29	)		198		(682.8	)%
Net change in the fair value of loans held-for-investment		965			(24	)		989		(4120.8	)%
Net loss (gain) on hedging activity		(197	)		(63	)		(134	)	212.7	%
Net loss on sale of investment securities available-for-sale		(57	)		—			(57	)	(100.0	)%
Other		1,366			1,293			73		5.6	%
Total non-interest income	$	10,831		$	9,244		$	1,587		17.2	%

Total non-interest income increased $1.6 million, or 17.2%, quarter-over-quarter as mortgage banking income increased $1.1 million, or 19.4%. Mortgage loan sales increased $47.8 million or 24.1% quarter over quarter driving higher gain on sale income at a slightly higher margin. SBA and other income decreased $168 thousand combined due largely to lower levels of SBA loan sales. SBA loans sold for the quarter-ended September 30, 2024 totaled $11.9 million, down $246 thousand, or 2.0%, compared to the quarter-ended June 30, 2024. The gross margin on SBA sales was 7.9% for the quarter, down from 8.8% for the previous quarter.

Non-interest expense

The following table presents the components of non-interest expense for the periods indicated:

	Quarter Ended
(Dollars in thousands)	September 30, 2024		June 30, 2024		$ Change			% Change
Salaries and employee benefits	$	12,829	$	11,437	$	1,392		12.2	%
Occupancy and equipment		1,243		1,230		13		1.1	%
Professional fees		1,106		1,029		77		7.5	%
Data processing and software		1,553		1,506		47		3.1	%
Advertising and promotion		717		989		(272	)	(27.5	)%
Pennsylvania bank shares tax		181		274		(93	)	(33.9	)%
Other		2,917		2,553		365		14.3	%
Total non-interest expense	$	20,546	$	19,018	$	1,528		8.0	%

Salaries and employee benefits increased $1.4 million overall, with bank and wealth segments combined having increased $588 thousand, and the mortgage segment increased $804 thousand. Mortgage segment salaries, commissions, and employee benefits are impacted by volume and therefore increased as originations increased $17.2 million over the prior quarter.

Professional fees increased $77 thousand during the current quarter due to an increased level of legal expense related to non-performing assets. Advertising and promotion expense decreased $272 thousand from the prior quarter as a result of a seasonal decrease in business development expenses. Other expense increased $365 thousand from the prior quarter due to an increase in employee travel and trainings, combined with an increase in loan fees.

Balance Sheet – September 30, 2024 Compared to June 30, 2024

Total assets increased $36.1 million, or 1.5%, to $2.4 billion as of September 30, 2024 from $2.4 billion at June 30, 2024. This increase was driven by strong loan growth and an increase in investments. Interest-bearing cash increased $4.2 million, or 26.9%, to $19.8 million as of September 30, 2024, from June 30, 2024.

Portfolio loan growth was $20.3 million, or 1.0% quarter-over-quarter. The portfolio growth was generated from commercial mortgage loans which increased $25.6 million, or 3.3%, commercial & industrial loans which increased $11.4 million, or 3.2%, and small business loans which increased $5.0 million despite the sale of $11.9 million in small business loan during the quarter. Lease financings decreased $10.9 million, or 11.2% from June 30, 2024, partially offsetting the above noted loan growth, but this decline was expected as we continue to refocus away from lease originations. Other assets increased by $7.1 million quarter-over-quarter, due largely to certain SBA loan sales that settled after quarter-end.

Total deposits increased $63.5 million, or 3.3% quarter-over-quarter, due largely to higher levels of money market accounts and time deposits to a lesser degree. Money market accounts and savings accounts increased a combined $35.4 million, while time deposits increased $11.6 million from largely wholesale efforts, and interest bearing demand deposits increased $3.4 million. Non-interest bearing deposits increased $13.2 million. Overall borrowings decreased $42.4 million, or 22.6% quarter-over-quarter.

Total stockholders’ equity increased by $5.1 million from June 30, 2024, to $167.5 million as of September 30, 2024. Changes to equity for the current quarter included net income of $4.7 million, less dividends paid of $1.4 million, plus an increase of $1.3 million in other comprehensive income due to the positive impact that declining interest rate environment had on the investment portfolio. The Community Bank Leverage Ratio for the Bank was 9.32% at September 30, 2024.

Asset Quality Summary

Non-performing loans increased $7.5 million to $45.1 million at September 30, 2024 compared to $37.6 million at June 30, 2024. As a result of the increase, the ratio of non-performing loans to total loans increased to 2.20% as of September 30, 2024, from 1.84% as of June 30, 2024, and the ratio of non-performing assets to total assets increased to 1.97% as of September 30, 2024, compared to 1.68% as of June 30, 2024. The increase in non-performing assets was led by a $4.2 million increase in non-performing residential mortgage loans and a $1.8 million increase in non-performing commercial loans as the bank repurchased at a discount of $574 thousand, the remaining balance of a commercial loan participation to another bank. The impact of this loan repurchase increased the balance of non-performing loans by $2.1 million and also increased the ACL by the amount of the discount.

Meridian realized net charge-offs of 0.11% of total average loans for the quarter ended September 30, 2024, down from 0.20% for the quarter ended June 30, 2024. Net charge-offs decreased to $2.3 million for the quarter ended September 30, 2024, compared to net charge-offs of $4.1 million for the quarter ended June 30, 2024. Third quarter charge-offs were comprised of $1.2 million from small ticket equipment leases which are charged-off after becoming more than 120 days past due, and $1.1 million in SBA loans. Overall there were recoveries of $153 thousand, largely related to leases and small business loans.

The ratio of allowance for credit losses to total loans held for investment, excluding loans at fair value (a non-GAAP measure, see reconciliation in the Appendix), was 1.10% as of September 30, 2024, consistent with the coverage ratio of 1.10% as of June 30, 2024. As of September 30, 2024 there were specific reserves of $6.8 million against individually evaluated loans, a decrease of $394 thousand from $7.2 million in specific reserves as of June 30, 2024. The specific reserve decline over the prior quarter was the result of a drop in SBA loan related reserves driven by charge-offs during the current quarter, partially offset by an increase in specific reserve as the result of repurchasing a commercial loan participation from another bank as discussed above.

About Meridian Corporation

Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware and Maryland. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. For additional information, visit our website at www.meridianbanker.com. Member FDIC.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023 and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.

MERIDIAN CORPORATION AND SUBSIDIARIES
FINANCIAL RATIOS (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)

	Quarter Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Earnings and Per Share Data:
Net income	$	4,743		$	3,326		$	2,676		$	571		$	4,005
Basic earnings per common share	$	0.43		$	0.30		$	0.24		$	0.05		$	0.36
Diluted earnings per common share	$	0.42		$	0.30		$	0.24		$	0.05		$	0.35
Common shares outstanding		11,229			11,191			11,186			11,183			11,178

Performance Ratios:
Return on average assets ⁽²⁾		0.80	%		0.58	%		0.47	%		0.10	%		0.73	%
Return on average equity ⁽²⁾		11.41			8.25			6.73			1.44			10.17
Net interest margin (tax-equivalent) ⁽²⁾		3.20			3.06			3.09			3.18			3.29
Yield on earning assets (tax-equivalent) ⁽²⁾		7.06			6.98			6.90			6.81			6.76
Cost of funds ⁽²⁾		4.05			4.10			4.00			3.81			3.63
Efficiency ratio		70.67	%		72.89	%		73.90	%		78.63	%		79.09	%

Asset Quality Ratios:
Net charge-offs (recoveries) to average loans		0.11	%		0.20	%		0.12	%		0.11	%		0.05	%
Non-performing loans to total loans		2.20			1.84			1.93			1.76			1.53
Non-performing assets to total assets		1.97			1.68			1.74			1.58			1.38
Allowance for credit losses to:
Total loans and other finance receivables		1.09			1.09			1.18			1.17			1.04
Total loans and other finance receivables (excluding loans at fair value) ⁽¹⁾		1.10			1.10			1.19			1.17			1.05
Non-performing loans		48.66	%		57.66	%		60.59	%		65.48	%		67.61	%

Capital Ratios:
Book value per common share	$	14.91		$	14.51		$	14.30		$	14.13		$	13.88
Tangible book value per common share	$	14.58		$	14.17		$	13.96		$	13.78		$	13.53
Total equity/Total assets		7.01	%		6.91	%		6.98	%		7.04	%		6.95	%
Tangible common equity/Tangible assets – Corporation ⁽¹⁾		6.87			6.76			6.82			6.87			6.79
Tangible common equity/Tangible assets – Bank ⁽¹⁾		8.95			8.85			8.93			8.94			8.89
Tier 1 leverage ratio – Bank		9.32			9.33			9.42			9.46			9.65
Common tier 1 risk-based capital ratio – Bank		10.17			9.84			9.87			10.10			10.82
Tier 1 risk-based capital ratio – Bank		10.17			9.84			9.87			10.10			10.82
Total risk-based capital ratio – Bank		11.22	%		10.84	%		10.95	%		11.17	%		11.85	%
(1) See Non-GAAP reconciliation in the Appendix
(2) Annualized

MERIDIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Interest income:
Loans and other finance receivables, including fees	$	38,103		$	36,486		$	33,980		$	109,928		$	95,612
Securities – taxable		1,480			1,324			901			4,055			2,853
Securities – tax-exempt		320			324			333			969			1,038
Cash and cash equivalents		416			331			245			1,047			741
Total interest income		40,319			38,465			35,459			115,999			100,244
Interest expense:
Deposits		19,313			18,991			15,543			55,696			41,013
Borrowings and subordinated debentures		2,764			2,628			2,692			8,606			7,230
Total interest expense		22,077			21,619			18,235			64,302			48,243
Net interest income		18,242			16,846			17,224			51,697			52,001
Provision for credit losses		2,282			2,680			82			7,828			2,186
Net interest income after provision for credit losses		15,960			14,166			17,142			43,869			49,815
Non-interest income:
Mortgage banking income		6,474			5,420			4,819			15,528			13,143
Wealth management income		1,447			1,444			1,258			4,208			3,689
SBA loan income		544			785			982			2,315			3,463
Earnings on investment in life insurance		222			215			201			644			585
Net change in the fair value of derivative instruments		(102	)		203			103			176			217
Net change in the fair value of loans held-for-sale		169			(29	)		111			138			(88	)
Net change in the fair value of loans held-for-investment		965			(24	)		(570	)		766			(673	)
Net loss (gain) on hedging activity		(197	)		(63	)		82			(279	)		81
Net loss on sale of investment securities available-for-sale		(57	)		—			(3	)		(57	)		(58	)
Other		1,366			1,293			1,103			4,620			3,489
Total non-interest income		10,831			9,244			8,086			28,059			23,848
Non-interest expense:
Salaries and employee benefits		12,829			11,437			12,420			34,839			35,633
Occupancy and equipment		1,243			1,230			1,226			3,706			3,610
Professional fees		1,106			1,029			1,104			3,633			2,930
Data processing and software		1,553			1,506			1,652			4,591			4,764
Advertising and promotion		717			989			848			2,454			2,799
Pennsylvania bank shares tax		181			274			244			729			735
Other		2,917			2,553			2,524			7,786			6,951
Total non-interest expense		20,546			19,018			20,018			57,738			57,422
Income before income taxes		6,245			4,392			5,210			14,190			16,241
Income tax expense		1,502			1,066			1,205			3,445			3,568
Net income	$	4,743		$	3,326		$	4,005		$	10,745		$	12,673

Basic earnings per common share	$	0.43		$	0.30		$	0.36		$	0.97		$	1.14
Diluted earnings per common share	$	0.42		$	0.30		$	0.35		$	0.96		$	1.11

Basic weighted average shares outstanding		11,110			11,096			11,058			11,098			11,129
Diluted weighted average shares outstanding		11,234			11,150			11,363			11,198			11,449

MERIDIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets:
Cash and due from banks	$	12,542		$	8,457		$	8,935		$	10,067		$	12,734
Interest-bearing deposits at other banks		19,805			15,601			14,092			46,630			47,025
Cash and cash equivalents		32,347			24,058			23,027			56,697			59,759
Securities available-for-sale, at fair value		171,568			159,141			150,996			146,019			122,218
Securities held-to-maturity, at amortized cost		33,833			35,089			35,157			35,781			36,232
Equity investments		2,166			2,088			2,092			2,121			2,019
Mortgage loans held for sale, at fair value		46,602			54,278			29,124			24,816			23,144
Loans and other finance receivables, net of fees and costs		2,008,396			1,988,535			1,956,315			1,895,806			1,885,629
Allowance for credit losses		(21,965	)		(21,703	)		(23,171	)		(22,107	)		(19,683	)
Loans and other finance receivables, net of the allowance for credit losses		1,986,431			1,966,832			1,933,144			1,873,699			1,865,946
Restricted investment in bank stock		8,542			10,044			8,560			8,072			8,309
Bank premises and equipment, net		12,807			13,114			13,451			13,557			13,310
Bank owned life insurance		29,489			29,267			29,051			28,844			28,641
Accrued interest receivable		10,012			9,973			9,864			9,325			8,984
Other real estate owned		1,862			1,862			1,703			1,703			1,703
Deferred income taxes		3,537			3,950			4,339			4,201			4,993
Servicing assets		4,364			11,341			11,573			11,748			11,835
Servicing assets held for sale		6,609			—			—			—			—
Goodwill		899			899			899			899			899
Intangible assets		2,818			2,869			2,920			2,971			3,022
Other assets		33,835			26,779			37,023			25,740			39,957
Total assets	$	2,387,721		$	2,351,584		$	2,292,923		$	2,246,193		$	2,230,971

Liabilities:
Deposits:
Non-interest bearing	$	237,207		$	224,040		$	220,581		$	239,289		$	244,668
Interest bearing
Interest checking		133,429			130,062			121,204			150,898			156,537
Money market and savings deposits		822,837			787,479			797,525			747,803			746,599
Time deposits		785,454			773,855			761,386			685,472			660,841
Total interest-bearing deposits		1,741,720			1,691,396			1,680,115			1,584,173			1,563,977
Total deposits		1,978,927			1,915,436			1,900,696			1,823,462			1,808,645
Borrowings		144,880			187,260			145,803			174,896			177,959
Subordinated debentures		49,928			49,897			49,867			49,836			50,079
Accrued interest payable		7,017			7,709			8,350			10,324			7,814
Other liabilities		39,519			28,900			28,271			29,653			31,360
Total liabilities		2,220,271			2,189,202			2,132,987			2,088,171			2,075,857

Stockholders’ equity:
Common stock		13,232			13,194			13,189			13,186			13,181
Surplus		81,002			80,639			80,487			80,325			79,731
Treasury stock		(26,079	)		(26,079	)		(26,079	)		(26,079	)		(26,079	)
Unearned common stock held by employee stock ownership plan		(1,204	)		(1,204	)		(1,204	)		(1,204	)		(1,403	)
Retained earnings		107,765			104,420			102,492			101,216			102,043
Accumulated other comprehensive loss		(7,266	)		(8,588	)		(8,949	)		(9,422	)		(12,359	)
Total stockholders’ equity		167,450			162,382			159,936			158,022			155,114
Total liabilities and stockholders’ equity	$	2,387,721		$	2,351,584		$	2,292,923		$	2,246,193		$	2,230,971

MERIDIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SEGMENT INFORMATION (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)

	Three Months Ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Interest income	$	40,319	$	38,465	$	37,215	$	36,346	$	35,459
Interest expense		22,077		21,619		20,606		19,404		18,235
Net interest income		18,242		16,846		16,609		16,942		17,224
Provision for credit losses		2,282		2,680		2,866		4,628		82
Non-interest income		10,831		9,244		7,984		8,117		8,086
Non-interest expense		20,546		19,018		18,174		19,703		20,018
Income before income tax expense		6,245		4,392		3,553		728		5,210
Income tax expense		1,502		1,066		877		157		1,205
Net Income	$	4,743	$	3,326	$	2,676	$	571	$	4,005

Basic weighted average shares outstanding		11,110		11,096		11,088		11,070		11,058
Basic earnings per common share	$	0.43	$	0.30	$	0.24	$	0.05	$	0.36

Diluted weighted average shares outstanding		11,234		11,150		11,201		11,206		11,363
Diluted earnings per common share	$	0.42	$	0.30	$	0.24	$	0.05	$	0.35

	Segment Information
	Three Months Ended September 30, 2024												Three Months Ended September 30, 2023
(dollars in thousands)	Bank			Wealth			Mortgage			Total			Bank			Wealth			Mortgage			Total
Net interest income	$	18,151		$	46		$	45		$	18,242		$	17,205		$	(15	)	$	34		$	17,224
Provision for credit losses		2,282			—			—			2,282			82			—			—			82
Net interest income after provision		15,869			46			45			15,960			17,123			(15	)		34			17,142
Non-interest income		1,358			1,447			8,026			10,831			1,758			1,258			5,070			8,086
Non-interest expense		13,287			840			6,419			20,546			12,564			826			6,628			20,018
Income (loss) before income taxes	$	3,940		$	653		$	1,652		$	6,245		$	6,317		$	417		$	(1,524	)	$	5,210
Efficiency ratio		68	%		56	%		80	%		71	%		66	%		66	%		130	%		79	%

	Nine Months Ended September 30, 2024												Nine Months Ended September 30, 2023
(dollars in thousands)	Bank			Wealth			Mortgage			Total			Bank			Wealth			Mortgage			Total
Net interest income	$	51,528		$	76		$	93		$	51,697		$	51,928		$	(12	)	$	85		$	52,001
Provision for credit losses		7,828			—			—			7,828			2,186			—			—			2,186
Net interest income after provision		43,700			76			93			43,869			49,742			(12	)		85			49,815
Non-interest income		4,908			4,207			18,944			28,059			5,696			3,689			14,463			23,848
Non-interest expense		37,962			2,479			17,297			57,738			35,608			2,704			19,110			57,422
Income (loss) before income taxes	$	10,646		$	1,804		$	1,740		$	14,190		$	19,830		$	973		$	(4,562	)	$	16,241
Efficiency ratio		67	%		58	%		91	%		72	%		62	%		74	%		131	%		76	%

MERIDIAN CORPORATION AND SUBSIDIARIES
APPENDIX: NON-GAAP MEASURES (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)

Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

	Pre-tax, Pre-provision Reconciliation
	Three Months Ended						Nine Months Ended
(Dollars in thousands, except per share data, Unaudited)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Income before income tax expense	$	6,245	$	4,392	$	5,210	$	14,190	$	16,241
Provision for credit losses		2,282		2,680		82		7,828		2,186
Pre-tax, pre-provision income	$	8,527	$	7,072	$	5,292	$	22,018	$	18,427

	Pre-tax, Pre-provision Reconciliation
	Three Months Ended							Nine Months Ended
(Dollars in thousands, except per share data, Unaudited)	September 30, 2024		June 30, 2024		September 30, 2023			September 30, 2024		September 30, 2023
Bank	$	6,222	$	5,851	$	6,399		$	18,474	$	22,016
Wealth		653		676		417			1,804		973
Mortgage		1,652		545		(1,524	)		1,740		(4,562	)
Pre-tax, pre-provision income	$	8,527	$	7,072	$	5,292		$	22,018	$	18,427

	Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding and Loans at Fair Value
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Allowance for credit losses (GAAP)	$	21,965		$	21,703		$	23,171		$	22,107		$	19,683

Loans and other finance receivables (GAAP)		2,008,396			1,988,535			1,956,315			1,895,806			1,885,629
Less: Loans at fair value		(13,965	)		(12,900	)		(13,139	)		(13,726	)		(13,231	)
Loans and other finance receivables, excluding loans at fair value (non-GAAP)	$	1,994,431		$	1,975,635		$	1,943,176		$	1,882,080		$	1,872,398

ACL to loans and other finance receivables (GAAP)		1.09	%		1.09	%		1.18	%		1.17	%		1.04	%
ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP)		1.10	%		1.10	%		1.19	%		1.17	%		1.05	%

	Tangible Common Equity Ratio Reconciliation – Corporation
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Total stockholders’ equity (GAAP)	$	167,450		$	162,382		$	159,936		$	158,022		$	155,114
Less: Goodwill and intangible assets		(3,717	)		(3,768	)		(3,819	)		(3,870	)		(3,921	)
Tangible common equity (non-GAAP)		163,733			158,614			156,117			154,152			151,193

Total assets (GAAP)		2,387,721			2,351,584			2,292,923			2,246,193			2,230,971
Less: Goodwill and intangible assets		(3,717	)		(3,768	)		(3,819	)		(3,870	)		(3,921	)
Tangible assets (non-GAAP)	$	2,384,004		$	2,347,816		$	2,289,104		$	2,242,323		$	2,227,050
Tangible common equity to tangible assets ratio – Corporation (non-GAAP)		6.87	%		6.76	%		6.82	%		6.87	%		6.79	%

	Tangible Common Equity Ratio Reconciliation – Bank
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Total stockholders’ equity (GAAP)	$	217,028		$	211,308		$	208,319		$	204,132		$	201,996
Less: Goodwill and intangible assets		(3,717	)		(3,768	)		(3,819	)		(3,870	)		(3,921	)
Tangible common equity (non-GAAP)		213,311			207,540			204,500			200,262			198,075

Total assets (GAAP)		2,385,994			2,349,600			2,292,894			2,244,893			2,232,297
Less: Goodwill and intangible assets		(3,717	)		(3,768	)		(3,819	)		(3,870	)		(3,921	)
Tangible assets (non-GAAP)	$	2,382,277		$	2,345,832		$	2,289,075		$	2,241,023		$	2,228,376
Tangible common equity to tangible assets ratio – Bank (non-GAAP)		8.95	%		8.85	%		8.93	%		8.94	%		8.89	%

	Tangible Book Value Reconciliation
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Book value per common share	$	14.91		$	14.51		$	14.30		$	14.13		$	13.88
Less: Impact of goodwill /intangible assets		0.33			0.34			0.34			0.35			0.35
Tangible book value per common share	$	14.58		$	14.17		$	13.96		$	13.78		$	13.53

Contact:
Christopher J. Annas
484.568.5001
CAnnas@meridianbanker.com