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Cincinnati Development Fund secures $50 million in commitments for affordable housing

Cincinnati Development Fund Inc. has secured $50 million in commitments for the Greater Cincinnati Affordable Housing Fund......»»

Category: topSource: bizjournalsNov 25th, 2021

Tishman Speyer buys bulk of Arker’s Edgemere Commons development site

Tishman Speyer’s TS Communities announced it has entered an agreement with the Arker Companies to acquire and develop 10 of the 11 building sites that will make-up Edgemere Commons, a fully-approved, 100 percent affordable housing development in Far Rockaway, Queens. Upon completion of all 11 buildings, Edgemere Commons will encompass 2,050... The post Tishman Speyer buys bulk of Arker’s Edgemere Commons development site appeared first on Real Estate Weekly. Tishman Speyer’s TS Communities announced it has entered an agreement with the Arker Companies to acquire and develop 10 of the 11 building sites that will make-up Edgemere Commons, a fully-approved, 100 percent affordable housing development in Far Rockaway, Queens. Upon completion of all 11 buildings, Edgemere Commons will encompass 2,050 apartments, including 237 that will be set aside for seniors. The 2.2 million square foot mixed-use project, which was unanimously approved by the New York City Council in November 2019, will incorporate 38,000 square feet of publicly accessible open space, including a plaza that can host community events and a playground.   Edgemere Commons will feature up to 77,000 square feet of community uses, including a community center and medical space. The development will also incorporate 72,000 square feet of neighborhood-oriented retail, including a supermarket, fitness center, food & beverage and shops, as well as 973 accessory parking spaces. The Arker Companies, in partnership with Slate Property Group, will break ground on the first Edgemere Commons building, which will comprise 194 apartments and a 20,000 square-foot supermarket, in early 2022.  Tishman Speyer affiliates will develop, own and manage the remaining 10 buildings, including the retail, community and public spaces.  In addition to building a community center and creating new open spaces, the development team will launch a $2 million Community Benefits and Youth Development Fund.  Edgemere Commons is the first all-affordable project undertaken through TS Communities, Tishman Speyer’s affordable housing development platform led by Managing Director Gary Rodney, a former President of the New York City Housing Development Corporation. Tishman Speyer has fully agreed to the commitments made on affordability levels and master plan conceived and approved through the collaborative process between the Arker Companies, the City of New York, Queens Borough President Donovan Richards and a coalition of Edgemere residents and community organizations. “We are proud to join the Edgemere community and look forward to working with residents and local elected officials to advance the three key pillars of Edgemere Commons: affordability, community and resiliency,” said Gary Rodney.  “Real estate is more than buildings.  Our team is committed to building community and connection by focusing on what people need to make their lives and their neighborhoods better.”  “Edgemere Commons will increase the availability of affordable housing in Far Rockaway and bring many amenities that will benefit both existing and future residents,” said Queens Borough President Donovan Richards Jr.  “The planned supermarket is especially needed in this community, which is considered a food desert because of its lack of easy access to healthy and nutritious food. I look forward to making sure all of this project’s community benefits come to fruition and are fully enjoyed by Far Rockaway’s great residents.” “We are excited to break ground on the first phase of Edgemere Commons in January and finally start to realize the promise of this revitalizing community project. With a full-scale grocery store, critically needed housing for low-income families, good paying jobs and spaces for people to enjoy and be proud of their neighborhood, we cannot wait to get started,” said Daniel Moritz, Principal, The Arker Companies. “In cooperation with Tishman Speyer, we will ensure that this project lives up to every promise made, as the community has put its faith in us, and we do not take that lightly. From eradicating a food desert to real investment through the community development fund, this is much bigger than the buildings itself. We are here in partnership with this community for generations to come as we proudly watch Edgemere become the thriving neighborhood it deserves.” Edgemere Commons is being developed on the 9.34-acre site of the former Peninsula Hospital, which permanently closed in 2012 amid health, safety and financial difficulties in the aftermath of Superstorm Sandy.  The project fully adheres to the goals set forth by the Resilient Edgemere Community Plan, a community-driven initiative undertaken in the wake of Sandy. The community-driven plan called for the creation of more open spaces for local residents as well as additional retail that would serve the needs of the surrounding community and as a source of new jobs.  Edgemere Commons will feature a host of resiliency and storm preparedness measures designed to handle extreme weather events, including bioswales, bioretention rainwater system, solar panels, green and gray water infrastructure and extended tree pits. The development will also elevate several streets above sea level for long-term preparedness. All buildings will host standby generators with emergency outlets in each unit, as well as cooling rooms in case of extreme heat in the summer. The construction and operation of Edgemere Commons is expected to create 350 jobs in construction and related industries annually as well as up to 650 permanent jobs, the bulk of which will be filled by residents from the local community. The project is anticipated to generate $1.5 billion in economic activity. “While I’m hopeful that this project will help in addressing our City’s housing crisis, on a local level, the Edgemere Commons project is bringing much needed commercial space,” said community activist Manny Silva. “For as long as I can remember, our neighborhoods have been devoid of the basic amenities that any neighborhood needs to be successful. For miles there are no restaurants, no grocery stores, no clothing stores, and no entertainment. I truly look forward to the opportunities and services this project will bring to the Rockaways.” The post Tishman Speyer buys bulk of Arker’s Edgemere Commons development site appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyNov 22nd, 2021

Gowanus locals reach deal that paves way for rezoning

Council Members Brad Lander and Stephen Levin, leaders of Brooklyn Community Board 6, and members of the Gowanus Neighborhood Coalition for Justice, announced this morning that they have reached consensus with the de Blasio Administration on “Points of Agreement” (POA) that ensure the Gowanus Neighborhood Rezoning will meet community goals.... The post Gowanus locals reach deal that paves way for rezoning appeared first on Real Estate Weekly. Council Members Brad Lander and Stephen Levin, leaders of Brooklyn Community Board 6, and members of the Gowanus Neighborhood Coalition for Justice, announced this morning that they have reached consensus with the de Blasio Administration on “Points of Agreement” (POA) that ensure the Gowanus Neighborhood Rezoning will meet community goals. The Gowanus Neighborhood Rezoning, the largest under the de Blasio Administration, will enable the construction of approximately 8,000 new housing units, nearly 3,000 of them affordable to low- and moderate-income families in a mixed-use, mixed-income neighborhood around a remediated and revitalized Gowanus Canal. The rezoning includes the most stringent affordability and sustainability requirements of any previous neighborhood rezoning. The “Points of Agreement” between City Hall and the Council Members, the result of extensive community organizing and public engagement, provides that every one of the 1,662 units in NYCHA’s Gowanus Houses and Wyckoff Gardens developments will receive a comprehensive interior modernization estimated at $200 million. The City will invest hundreds of millions more in flooding and stormwater infrastructure, parks, schools, and workforce development, and substantial funding commitments for renovations at the Pacific Branch Library ($14.7 million) and the Old Stone House ($10.95 million).  Community conversations about the future of the neighborhood have been active for nearly a decade, including the “Bridging Gowanus” community planning process convened by Council Member Lander’s office in 2013, that worked to identify shared principles for any development in the area. The Department of City Planning commenced its community engagement in 2016 with five working groups open to all community members and scores of public meetings, attended by thousands of residents and stakeholders. The Gowanus Neighborhood Coalition for Justice, a coalition of tenants, homeowners, public housing residents, small business owners, artists, environmentalists, and affordable housing advocates, organized hundreds of residents to elevate the voices of community members usually left out of the City’s planning processes. GNCJ developed a broad community platform, including three key demands that today’s Points of Agreement address: Upfront funding to meet the capital needs of the public housing in the Gowanus neighborhood, with oversight by NYCHA residents.POA commitment: The City will fund comprehensive in-unit renovations of all apartments at Gowanus Houses (1,134 units) and Wyckoff Houses (528 units) at an estimated cost of $200m. This work includes replacement of kitchens, bathrooms, plumbing, electrical, flooring, interior doors, and lighting fixtures. The City has additionally committed to regular reporting and consultation with residents through the construction process to oversee commitments and protect tenant rights. The City will also fulfill previous commitment to renovate and reopen the Wyckoff Gardens and Gowanus Houses community centers.Mandate “net-zero” combined sewage overflow (CSO) from new construction created as a result of the rezoning.POA commitment: In order to ensure that new development does not pollute the Gowanus Canal, the City has adopted the stringent new 2021 Unified Stormwater Rule that will go into effect before any construction begins. The rule increases on-site requirements for stormwater detention and introduces new retention requirements, which will reduce CSO volumes and events, and help address localized flooding. The City is also committing to a $174 million upgrade to sewer infrastructure to address long-standing flooding along 4th Avenue, which is especially severe at the intersection of Carroll Street.   Gowanus Rezoning Oversight Task Force to monitor compliance with public and private commitments.POA commitment: To ensure compliance with public and private commitments, the agreement includes commitments by all relevant City agencies to regular reporting as well as senior agency staff participation in a Community Oversight Task Force dedicated to monitoring rezoning-related commitments. The Task Force will be supported by an independent facilitator, and include representation from elected officials, CB6, NYCHA residents and leaders, and core community organizations and stakeholders.  On June 3, 2021, Community Board 6 held a highly-attended, indoor/outdoor, hybrid in-person and online public hearing as part of the Uniform Land Use Review Process (with additional opportunities for public input ordered by Judge Katherine Levine pursuant to a lawsuit). Out of that hearing, CB6 voted “Yes with Modifications,” including an extensive set of recommendations that are reflected in today’s agreement. Borough President Eric Adams also recommended to approve the rezoning with modifications, and stood with public housing residents, GNCJ members, and the Council Member to insist on adequate funding for public housing. The Gowanus Neighborhood Rezoning is the first MIH neighborhood rezoning in a whiter, wealthier neighborhood. For the first time ever, a Racial Impact Study was completed providing strong evidence that the plan will result in a more racially and economically inclusive neighborhood.  In addition to historic investments in public housing, stormwater retention, and flood readiness, the Gowanus Neighborhood Rezoning includes:  Nearly 3,000 units of affordable housing, including a commitment to 100% affordability on the City-owned Public Place site. The plan for Gowanus Green includes approximately 950 units priced for extremely low to low income tenants and homeownership opportunities for moderate income families, as well as a new 1.5 acre park and space for a potential new school. The Gowanus Green site will be extensively remediated, under the supervision of the EPA, NYS DEC, and NYC DEP. The EPA has stated that it is feasible for the site to be cleaned up to safely allow for these uses.On sites, the rezoning will require either Mandatory Inclusionary Housing (MIH) Option 1, which requires 25% of units affordable to households at or below 60% of AMI, with 10% of units affordable to households at or below 40% of AMI; or the “deep affordability” MIH option of 20% of units affordable to households at our below 40% of AMI ($43,000 for a family of 3). This is anticipated to generate approximately 2000 affordable units.Investments in new open space, including a resilient waterfront esplanade along the Gowanus Canal. The City has committed to renovations, following meaningful community engagement, at the new Gowanus Green public park and Boerum Park, and Thomas Greene Park. It has committed to build new public spaces on the Salt Lot and the Head End CSO site, following construction of each Superfund-mandated CSO tank, the Bond Street Street-End and at “Transit Plaza” along the Canal by the Smith/9th subway station. Canal developers will be required to build and maintain a new 40-foot public esplanade, following detailed guidelines to ensure continuity and public access between sites, and designed for flood resiliency through the year 2100.Environmental requirements on new development. In addition to the waterfront esplanade and new stormwater management requirements, all new buildings must: Dedicate 100% of their rooftop area to solar, wind, or green infrastructure pursuant to City legislation from 2019. Meet city flood elevation standards, determined on a site-by-site basis, which exceed FEMA standards. Complete remediation of any contamination indicated by the new e-designation, with oversight by the City and State. Innovative new zoning tools to address infrastructure needs. To ensure local school capacity can accommodate neighborhood growth, on certain large sites around the canal, developers can exempt floor area leased to NYC School Construction Authority for the development of new public schools as new seat-need comes online.The plan includes an easement requirement and new citywide transit bonus available for developers along 4th Avenue in exchange for transit improvements. Historic preservation and tools to keep Gowanus creative and mixed-use.  Five historic buildings were designated as landmarks during the rezoning process, including the Old American Can Factory and Powerhouse Arts.Mid-block areas will remain zoned for industrial and commercial use, with modest additional development rights that do not allow for hotels or self-storage. The new “Gowanus Mix” use group codified in zoning will generate over 300,000 square feet dedicated space for light manufacturing, arts, and non-profits.Community, social service, and workforce development resources.City Hall will expand the MAP (Mayor’s Action Plan for Neighborhood Safety) initiative to Gowanus Houses and Wyckoff Gardens, an investment of approximately $2 million annually. MAP brings together neighborhood residents and government agencies to reduce crime. Strategies including youth development and employment, conflict mediation, sports and arts programs aim to address concentrated disadvantage and physical disorder and promote neighborhood cohesion and strong citywide networks.Investments of approximately $1 million annually in workforce development for local residents, with a focus on NYCHA residents, including dedicated funding for industrial job training.Commitments to street safety improvements at high-crash intersections and a comprehensive traffic study of 3rd avenue and the IBZ to address road safety and truck circulation issues. The City will provide over $10 million for new curb extensions and widened sidewalks, bioswales and other green infrastructure, and street furniture such as benches, wayfinding signs, bike racks, and street trees.Tenant protections including an expanded Certificate of No Harassment program (recently adopted citywide through legislation sponsored by Council Member Lander), resources for tenant outreach, and a tailored rezoning that protects rent-stabilized units.  The full Points of Agreement document will be available at the City Council’s Zoning Subcommittee meeting prior to the vote today. In addition to the public commitments in the rezoning plan, developers in Gowanus have committed to additional affordability and use restrictions to preserve the industrial and arts character of the neighborhood. Affordable artists studios: 10 property owners of large sites along the Canal and bordering Thomas Greene Park have committed to enter an agreement with Arts Gowanus to provide over 150 permanently-affordable artist studios in new developments. Arts Gowanus will match eligible artists with available spaces. A portion of the studios will be available for low-income artists, including NYCHA residents, to rent at a more deeply reduced rate. As a part of the agreement, Arts Gowanus will occupy and manage a Gowanus Community Arts Center, including a gallery. Parks Improvement District: Ten developers have committed to cooperate in the formation of a Gowanus Waterfront Business Improvement District focused on stewardship, access, and public programming of open spaces, especially the new waterfront esplanade along the canal. This entity will provide maintenance, public programming, technical assistance, and environmental and ecological advocacy. The steering committee is expected to hold its first meeting in December 2021, and will flesh out details and develop support with input from community members and stakeholders.  All told, the Gowanus Rezoning’s 3,000 new units of permanently affordable housing, a continuous public esplanade along the waterfront, climate-resilient buildings and landscaping, and use restrictions to preserve arts and industry are among the most aggressive, forward-looking set of requirements ever imposed on developers in the United States.  “Today’s agreement shows that community-led, inclusive, sustainable growth is possible. After nearly a decade of conversations among neighbors, and in partnership with the Department of City Planning and City Hall, this community has created one of the best models for inclusive growth anywhere, with strong attention to equity and affordability, and mindful of the environmental history and future of this area. Debates about development are not easy, but I am truly proud of the way we’ve engaged them here. Together, we are setting the stage for a more diverse, more sustainable, thriving, creative neighborhood that will welcome new residents while improving and preserving the ability of public housing residents, artists, small businesses, and neighbors to continue to thrive here for generations to come,” said Council Member Brad Lander. “The Gowanus Rezoning will be a milestone in land use actions in New York City,” said Council Member Stephen Levin.  “Discussions about the Gowanus neighborhood, one of the most vibrant and historic in Brooklyn, have been ongoing for decades. And today we reach a turning point where those discussions have resulted in action. This rezoning will result in not only new housing including a substantial increase in affordable units, but unprecedented investments in our public housing, improvements in the sewer systems and monitoring of our combined sewer overflows, preservation of manufacturing and light industry, and a commitment to protect our artists and public spaces.  There are so many people that helped bring us here but first and foremost I want to thank the residents of Wyckoff Gardens and GowanusHouse and the members of the Gowanus Neighborhood Coalition for Justice. They provide a guide to making sure we are always focused on what is most important. And of course thanks to all the staff and Councilmember Lander who attended more meetings then we can count in the name of true engagement. This process only begins here and it is up to the future elected officials to ensure that all the promises are met but we couldn’t have given them a better place to start.” The post Gowanus locals reach deal that paves way for rezoning appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyNov 10th, 2021

Related Companies strikes historic deal with NYCHA

Related Companies and the minority-owned Essence Development are about to make history with NYCHA. The powerhouse global developer behind projects including the new Hudson Yards, and the Minority Business Enterprise founded by former Related vice president and NFL player Jamar Adams, will take over the running of the 2,054 NYCHA... The post Related Companies strikes historic deal with NYCHA appeared first on Real Estate Weekly. Related Companies and the minority-owned Essence Development are about to make history with NYCHA. The powerhouse global developer behind projects including the new Hudson Yards, and the Minority Business Enterprise founded by former Related vice president and NFL player Jamar Adams, will take over the running of the 2,054 NYCHA apartments in Manhattan and complete $366 million in renovations as part of a historic deal struck with the city and the people who live there. For the first time ever, the tenants have led both the review and developer selection process for the multi-million-dollar campaign at Fulton, Chelsea, Chelsea Addition and Elliott Houses. Now, two years after the city first floated a plan to raze the properties, Related and Essence will instead renovate 18 buildings inside and out, create new community spaces, health centers and gardens area. Once the work is done to the tenants’ satisfaction, the developers will get to build a new 100-unit apartment building on West 27th Street, half of which will be permanently affordable at rents recommended by the Fulton-Chelsea tenants. JESSICA KATZ “This is a historic moment for NYCHA residents that demonstrates the power of leveraging residents’ expertise alongside the resources of the affordable housing industry,” said Jessica Katz, executive director of Citizens Housing & Planning Council. “These are the kinds of decisions that directly impact their livelihoods, and it is absolutely critical that we continue to follow this model, elevate tenant voices and give everyone a seat at the table.” The selection of the two developers follows months of often contentious debate over the future of the properties, which have fallen into disrepair under cash strapped NYCHA. After tenants balked at the plan to demolish the worst of the buildings, the city formed the Chelsea Working Group, made up of residents, elected officials, community representatives, and housing and legal organizations. The Chelsea Working Group recommended that the Fulton and Elliott-Chelsea developments be included in NYCHA’s Permanent Affordability Commitment Together Program, or PACT, and devised the plan that will modernize 18 of the buildings and give the developers “appropriate locations” for new, ground-up buildings on land within their boundaries. While today’s announcement only confirmed one new ground-up building that will rise on 27th Street, NYCHA has said in the past that potential new developments could add up to 700 units to the four sites that make up the complexes, half of which, under the deal, would be income-restricted affordable housing. According to NYCHA, those new buildings would only generate about a fifth of the $366 million needed to pay for the repairs to Fulton and Chelsea-Elliott and, by moving the projects into the PACT program, the city has leverage to raise the rest of the money. New York City Housing Development Corporation (HDC), the local housing finance agency, will assemble the financing and provide asset management and compliance for the PACT transactions. The balance of the repair bill will come via PACT through the federal government’s Rental Assistance Demonstration program, or RAD, an Obama-era program that allows private companies to manage public housing, giving them responsibility for maintenance, repairs and rent collection. The PACT program will grant Essence and Related Companies access to the money to fund the work while maintaining permanent affordability and residents’ rights. NYCHA retains ownership and oversight of the development but shifts day-to-day management to the PACT partner through a ground lease. Residents of PACT converted buildings continue to pay 30 percent of their adjusted gross household income towards rent and reserve the right to organize. Residents have the right to remain in their apartments through the duration of construction and can apply for job opportunities associated with the conversion. Residents also reserve the right to renew or add relatives to their lease, and residents who receive Earned Income Disregard will continue to receive it. Initially viewed as a back door to privatization, PACT is being embraced in New York as a way to funds a massive backlog of renovations desperately needed within NYCHA’s 179,000 apartments spread across 302 developments. To date, some 9,500 NYCHA apartments have been moved to the PACT system and are privately managed under RAD. Another 11,800 units are expected to be transferred to the program by year’s end. VICKI BEEN “PACT is a critical component of the City’s strategy for fundamentally improving the quality of life for public housing residents,” said New York City Deputy Mayor Vicki Been. “Today’s announcement is the culmination of an innovative and extensive collaborative process of working together with residents and other stakeholders to craft a plan to achieve beautifully renovated homes in a safe and welcoming development, and to address residents’ concerns about the changes necessary to both secure these renovations and ensure that their homes are permanently affordable, and well managed and maintained.” Darlene Waters, president of the Elliott-Chelsea Houses Tenant Association who was part of the Chelsea Working Group that developed the plan, was among the first to celebrate the announcement today. “I am incredibly proud of the Chelsea Working Group for our collaboration and determination to identify a partner that will most effectively meet our communities’ needs and improve our lives,” said Waters. “Our voices have guided the conversation throughout the entire recommendations and RFP processes. Bringing NYCHA residents to the table to make decisions gives us dignity, the power of choice and autonomy over our homes.” Fulton Houses Tenant Association president Miguel Acevedo, added, “Residents should remain central to every decision that NYCHA makes for its properties, and today we are honored to be part of a group that drove each step of the decision-making process to make a substantial, lasting impact on our communities. “We look forward to partnering with Essence Development and Related Companies to address urgent concerns, long overdue repairs and critical infrastructure upgrades for our homes.” BRUCE BEAL “Fulton & Elliott-Chelsea Houses have been waiting for, and deserve, the critical repairs and upgrades needed in their homes,” said Bruce Beal Jr., president of Related Companies. “Through our partnership with Essence Development, we will address not just the physical needs, but also complete a suite of community enhancements to ensure this comprehensive rehabilitation will deliver quality homes for residents.” JAMAR ADAMS Added Adams, “We are honored to be a part of this historic project, driven by dedicated and passionate residents. We look forward to working alongside the Working Group, NYCHA and Related to undertake this massive rehabilitation project, and help create a more stable future for the community.” Among the New York politicians backing the PACT plan as a way forward today were Congressman Jerrold Nadler, who called the tenant working group process a model for other NYCHA developments; State Senator Brad Hoylman; and Manhattan Borough President Gale Brewer. The post Related Companies strikes historic deal with NYCHA appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyDec 1st, 2021

Cincinnati Development Fund secures $50 million in commitments for affordable housing

Cincinnati Development Fund Inc. has secured $50 million in commitments for the Greater Cincinnati Affordable Housing Fund......»»

Category: topSource: bizjournalsNov 25th, 2021

Deere Reports Net Income of $1.283 Billion for Fourth Quarter, $5.963 Billion for Fiscal Year

MOLINE, Ill., Nov. 24, 2021 /PRNewswire/ -- Fourth-quarter net income rises on net sales gain of 19%, demonstrating solid execution and benefits of operating model. UAW contract agreement shows commitment to Deere's workforce. Full-year 2022 earnings forecast to be $6.5 to $7.0 billion, reflecting healthy demand. Deere & Company (NYSE:DE) reported net income of $1.283 billion for the fourth quarter ended October 31, 2021, or $4.12 per share, compared with net income of $757 million, or $2.39 per share, for the quarter ended November 1, 2020. For fiscal year 2021, net income attributable to Deere & Company was $5.963 billion, or $18.99 per share, compared with $2.751 billion, or $8.69 per share, in fiscal 2020. Worldwide net sales and revenues increased 16 percent, to $11.327 billion, for the fourth quarter of fiscal 2021 and rose 24 percent, to $44.024 billion, for the full year. Equipment operations net sales were $10.276 billion for the quarter and $39.737 billion for the year, compared with corresponding totals of $8.659 billion and $31.272 billion in 2020. "Deere's strong fourth-quarter and full-year performance was delivered by our dedicated employees, dealers, and suppliers throughout the world, who have helped safely maintain our operations and serve customers," said John C. May, chairman and chief executive officer. "Our results reflect strong end-market demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union. Last week's ratification of a 6-year agreement with the UAW brings our highly skilled employees back to work building the finest products in our industries. The agreement shows our ongoing commitment to delivering best-in-class wages and benefits." Company Outlook & Summary Net income attributable to Deere & Company for fiscal 2022 is forecasted to be in a range of $6.5 billion to $7.0 billion. "Looking ahead, we expect demand for farm and construction equipment to continue benefiting from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure," May said. "At the same time, we anticipate supply-chain pressures will continue to pose challenges in our industries. We are working closely with our suppliers to address these issues and ensure that our customers can deliver essential food and infrastructure more profitably and sustainably." Deere & Company Fourth Quarter Full Year $ in millions 2021 2020 % Change 2021 2020 % Change Net sales and revenues $ 11,327 $ 9,731 16% $ 44,024 $ 35,540 24% Net income $ 1,283 $ 757 69% $ 5,963 $ 2,751 117% Fully diluted EPS $ 4.12 $ 2.39 $ 18.99 $ 8.69 Net income in the fourth quarter and full-year 2020 was negatively affected by impairment charges and employee-separation costs of $211 million and $458 million after-tax, respectively. In addition, net income was unfavorably affected by discrete adjustments to the provision for income taxes in both periods of 2020. Equipment Operations Fourth Quarter $ in millions 2021 2020 % Change Net sales $ 10,276 $ 8,659 19% Operating profit $ 1,393 $ 1,056 32% Net income $ 1,056 $ 571 85% For a discussion of net sales and operating profit results, see the production and precision agriculture, small agriculture and turf, and construction and forestry sections below. Production & Precision Agriculture Fourth Quarter $ in millions 2021 2020 % Change Net sales $ 4,661 $ 3,801 23% Operating profit $ 777 $ 578 34% Operating margin 16.7% 15.2% Production and precision agriculture sales increased for the quarter due to higher shipment volumes and price realization. Operating profit rose primarily due to price realization and improved shipment volumes / mix. These items were partially offset by higher production costs. Results for fourth-quarter 2020 were negatively impacted by employee-separation expenses.   Small Agriculture & Turf Fourth Quarter $ in millions 2021 2020 % Change Net sales $ 2,809 $ 2,397 17% Operating profit $ 346 $ 282 23% Operating margin 12.3% 11.8% Small agriculture and turf sales increased for the quarter due to higher shipment volumes and price realization. Operating profit rose primarily due to improved shipment volumes / mix and price realization. These items were partially offset by higher production costs and higher research and development and selling, administrative, and general expenses. Employee-separation expenses and impairments negatively impacted the fourth quarter of 2020.   Construction & Forestry Fourth Quarter $ in millions 2021 2020 % Change Net sales $ 2,806 $ 2,461 14% Operating profit $ 270 $ 196 38% Operating margin 9.6% 8.0% Construction & Forestry sales moved higher for the quarter primarily due to higher shipment volumes and price realization. Operating profit improved mainly due to price realization and higher sales volume / mix. Partially offsetting these factors were increases in production costs and higher selling, administrative, and general and research and development expenses. Fourth-quarter 2020 results were adversely affected by employee-separation expenses and impairments.   Financial Services Fourth Quarter $ in millions 2021 2020 % Change Net income $ 227 $ 186 22% Net income for financial services in the quarter rose mainly due to income earned on a higher average portfolio and favorable financing spreads, as well as improvements on operating-lease residual values. These factors were partially offset by a higher provision for credit losses. Results in 2020 also were affected by employee-separation costs. Industry Outlook for Fiscal 2022 Agriculture & Turf U.S. & Canada: Large Ag Up ~ 15% Small Ag & Turf  ~ Flat Europe Up ~ 5% South America (Tractors & Combines) Up ~ 5% Asia  ~ Flat Construction & Forestry U.S. & Canada: Construction Equipment Up 5 to 10% Compact Construction Equipment Up 5 to 10% Global Forestry Up 10 to 15%   Deere Segment Outlook for Fiscal 2022 Currency Price $ in millions Net Sales Translation Realization Production & Precision Ag Up 20 to 25% 0% +9% Small Ag & Turf Up 15 to 20% -1% +7% Construction & Forestry Up 10 to 15% 0% +8% Financial Services Net Income $870 Financial Services. Fiscal-year 2022 net income attributable to Deere & Company for the financial services operations is forecast to be approximately $870 million. Results are expected to be slightly lower than fiscal 2021 due to a higher provision for credit losses, lower gains on operating-lease residual values, and higher selling, general, and administrative expenses. These factors are expected to be partially offset by income earned on a higher average portfolio. John Deere Capital Corporation The following is disclosed on behalf of the company's financial services subsidiary, John Deere Capital Corporation (JDCC), in connection with the disclosure requirements applicable to its periodic issuance of debt securities in the public market. Fourth Quarter Full Year $ in millions 2021 2020 % Change 2021 2020 % Change Revenue $ 673 $ 693 -3% $ 2,688 $ 2,808 -4% Net income $ 181 $ 154 18% $ 711 $ 425 67% Ending portfolio balance $ 41,488 $ 38,726 7% Net income for the fourth quarter of fiscal 2021 was higher than in the fourth quarter of 2020 primarily due to income earned on higher average portfolio balances and improvements on operating-lease residual values. These factors were partially offset by a higher provision for credit losses. Fourth-quarter 2020 results were also negatively impacted by employee-separation expenses. Full-year 2021 net income was higher than in 2020 due to improvements on operating-lease residual values, a lower provision for credit losses, favorable financing spreads, and income earned on a higher average portfolio. Full-year 2020 results also included impairments on lease residual values. Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:  Statements under "Company Outlook & Summary," "Industry Outlook for Fiscal 2022," "Deere Segment Outlook (Fiscal 2022)," and other forward-looking statements herein that relate to future events, expectations, and trends involve factors that are subject to change and risks and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect particular lines of business, while others could affect all of the company's businesses. The company's agricultural equipment businesses are subject to a number of uncertainties, including certain factors that affect farmers' confidence and financial condition. These factors include demand for agricultural products; world grain stocks; weather conditions and the effects of climate change; soil conditions; harvest yields; prices for commodities and livestock; crop and livestock production expenses; availability of transport for crops (including as a result of reduced state and local transportation budgets); trade restrictions and tariffs (e.g., China); global trade agreements; the level of farm product exports (including concerns about genetically modified organisms); the growth and sustainability of non-food uses for some crops (including ethanol and biodiesel production); real estate values; available acreage for farming; land ownership policies of governments; changes in government farm programs and policies; international reaction to such programs; changes in and effects of crop insurance programs; changes in environmental regulations and their impact on farming practices; animal diseases (e.g., African swine fever) and their effects on poultry, beef, and pork consumption and prices and on livestock feed demand; crop pests and diseases; and the impact of the COVID pandemic on the agricultural industry including demand for, and production and exports of, agricultural products, and commodity prices.  The production and precision agriculture business is dependent on agricultural conditions, and relies in part on hardware and software, guidance, connectivity and digital solutions, and automation and machine intelligence. Many factors contribute to the company's precision agriculture sales and results, including the impact to customers' profitability and/or sustainability outcomes; the rate of adoption and use by customers; availability of technological innovations; speed of research and development; effectiveness of partnerships with third parties; and the dealer channel's ability to support and service precision technology solutions. Factors affecting the company's small agriculture and turf equipment operations include agricultural conditions; consumer confidence; weather conditions and the effects of climate change; customer profitability; labor supply; consumer borrowing patterns; consumer purchasing preferences; housing starts and supply; infrastructure investment; spending by municipalities and golf courses; and consumable input costs. Factors affecting the company's construction and forestry equipment operations include consumer spending patterns; real estate and housing prices; the number of housing starts; interest rates; commodity prices such as oil and gas; the levels of public and non-residential construction; and investment in infrastructure. Prices for pulp, paper, lumber, and structural panels affect sales of forestry equipment. Many of the factors affecting the production and precision agriculture, small agriculture and turf, and construction and forestry segments have been and may continue to be impacted by global economic conditions, including those resulting from the COVID pandemic and responses to the pandemic taken by governments and other authorities. All of the company's businesses and its results are affected by general economic conditions in the global markets and industries in which the company operates; customer confidence in general economic conditions; government spending and taxing; foreign currency exchange rates and their volatility, especially fluctuations in the value of the U.S. dollar; interest rates (including the availability of IBOR reference rates); inflation and deflation rates; changes in weather and climate patterns; the political and social stability of the global markets in which the company operates; the effects of, or response to, terrorism and security threats; wars and other conflicts; natural disasters; and the spread of major epidemics or pandemics (including the COVID pandemic) and government and industry responses to such epidemics or pandemics, such as travel restrictions and extended shut downs of businesses. Continued uncertainties related to the magnitude, duration, and persistent effects of the COVID pandemic may significantly adversely affect the company's business and outlook. These uncertainties include, among other things: the duration and impact of the resurgence in COVID cases in any country, state, or region; the emergence, contagiousness, and threat of new and different strains of virus; the availability, acceptance, and effectiveness of vaccines; additional closures as mandated or otherwise made necessary by governmental authorities; disruptions in the supply chain, including those caused by industry capacity constraints, material availability, and global logistics delays and constraints arising from, among other things, the transportation capacity of ocean shipping containers, and a prolonged delay in resumption of operations by one or more key suppliers, or the failure of any key suppliers; an increasingly competitive labor market due to a sustained labor shortage or increased turnover caused by COVID pandemic; the company's ability to meet commitments to customers on a timely basis as a result of increased costs and supply and transportation challenges; increased logistics costs; additional operating costs due to continued remote working arrangements, adherence to social distancing guidelines, and other COVID-related challenges; increased risk of cyber-attacks on network connections used in remote working arrangements; increased privacy-related risks due to processing health-related personal information; legal claims related to personal protective equipment designed, made, or provided by the company or alleged exposure to COVID on company premises; absence of employees due to illness; and the impact of the pandemic on the company's customers and dealers. The sustainability of the economic recovery observed in 2021 remains unclear and significant volatility could continue for a prolonged period. These factors, and others that are currently unknown or considered immaterial, could materially and adversely affect our business, liquidity, results of operations, and financial position. Significant changes in market liquidity conditions, changes in the company's credit ratings, and any failure to comply with financial covenants in credit agreements could impact access to funding and funding costs, which could reduce the company's earnings and cash flows. Financial market conditions could also negatively impact customer access to capital for purchases of the company's products and customer confidence and purchase decisions, financing and repayment practices, and the number and size of customer delinquencies and defaults. A debt crisis in Europe, Latin America, or elsewhere could negatively impact currencies, global financial markets, social and political stability, funding sources and costs, asset and obligation values, customers, suppliers, demand for equipment, and company operations and results. The company's investment management activities could be impaired by changes in the equity, bond, and other financial markets, which would negatively affect earnings. Continued effects of the withdrawal of the United Kingdom from the European Union could adversely affect business activity, political stability, and economic conditions in the United Kingdom, the European Union, and elsewhere. The economic conditions and outlook could be further adversely affected by (i) uncertainty regarding any new or modified trade arrangements between the United Kingdom and the European Union and/or other countries; (ii) the risk that one or more other European Union countries could come under increasing pressure to leave the European Union; or (iii) the risk that the euro as the single currency of the eurozone could cease to exist. Any of these developments could affect our businesses, liquidity, results of operations, and financial position. Additional factors that could materially affect the company's operations, access to capital, expenses, and results include changes in, uncertainty surrounding, and the impact of governmental trade, banking, monetary, and fiscal policies, including financial regulatory reform and its effects on the consumer finance industry, derivatives, funding costs, and other areas; the potential default of the U.S. federal government if Congress fails to pass a fiscal 2022 budget resolution; governmental programs, policies, and tariffs for the benefit of certain industries or sectors; sanctions in particular jurisdictions; retaliatory actions to such changes in trade, banking, monetary, and fiscal policies; actions by central banks; actions by financial and securities regulators; actions by environmental, health, and safety regulatory agencies, including those related to engine emissions, carbon and other greenhouse gas emissions, noise, and the effects of climate change; changes to GPS radio frequency bands or their permitted uses; changes in labor and immigration regulations; changes to accounting standards; changes in tax rates, estimates, laws, and regulations and company actions related thereto; changes to and compliance with privacy, banking, and other regulations; changes to and compliance with economic sanctions and export controls laws and regulations; compliance with U.S. and foreign laws when expanding to new markets and otherwise; and actions by other regulatory bodies. Other factors that could materially affect the company's results include production, design, and technological innovations and difficulties, including capacity and supply constraints and prices; the loss of or challenges to intellectual property rights, whether through theft, infringement, counterfeiting, or otherwise; the availability and prices of strategically sourced materials, components, and whole goods; delays or disruptions in the company's supply chain or the loss of liquidity by suppliers; disruptions of infrastructures that support communications, operations, or distribution; the failure of customers, dealers, suppliers, or the company to comply with laws, regulations, and company policy pertaining to employment, human rights, health, safety, the environment, sanctions, export controls, anti-corruption, privacy and data protection, and other ethical business practices; introduction of legislation that could affect the company's business model and intellectual property, such as right to repair or right to modify; events that damage the company's reputation or brand; significant investigations, claims, lawsuits, or other legal proceedings; start-up of new plants and products; the success of new product initiatives or business strategies; changes in customer product preferences and sales mix; gaps or limitations in rural broadband coverage, capacity, and speed needed to support technology solutions; oil and energy prices, supplies, and volatility; the availability and cost of freight; actions of competitors in the various industries in which the company competes, particularly price discounting; dealer practices, especially as to levels of new and used field inventories; changes in demand and pricing for used equipment and resulting impacts on lease residual values; labor relations and contracts, including work stoppages and other disruptions; changes in the ability to attract, develop, engage, and retain qualified personnel; acquisitions and divestitures of businesses; greater-than-anticipated transaction costs; the integration of new businesses; the failure or delay in closing or realizing anticipated benefits of acquisitions, joint ventures, or divestitures; the inability to deliver precision technology and agricultural solutions to customers; the implementation of the smart industrial operating model and other organizational changes; the failure to realize anticipated savings or benefits of cost reduction, productivity, or efficiency efforts; difficulties related to the conversion and implementation of enterprise resource planning systems; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of the company and its suppliers and dealers; security breaches with respect to the company's products; changes in company-declared dividends and common stock issuances and repurchases; changes in the level and funding of employee retirement benefits; changes in market values of investment assets, compensation, retirement, discount, and mortality rates which impact retirement benefit costs; and significant changes in health care costs. The liquidity and ongoing profitability of John Deere Capital Corporation and the company's other financial services subsidiaries depend largely on timely access to capital in order to meet future cash flow requirements, and to fund operations, costs, and purchases of the company's products. If general economic conditions deteriorate or capital markets become more volatile, funding could be unavailable or insufficient. Additionally, customer confidence levels may result in declines in credit applications and increases in delinquencies and default rates, which could materially impact write-offs and provisions for credit losses. The company's forward-looking statements are based upon assumptions relating to the factors described above, which are sometimes based upon estimates and data prepared by government agencies. Such estimates and data are often revised. The company, except as required by law, undertakes no obligation to update or revise its forward-looking statements, whether as a result of new developments or otherwise. Further information concerning the company and its businesses, including factors that could materially affect the company's financial results, is included in the company's other filings with the SEC (including, but not limited to, the factors discussed in Item 1A. Risk Factors of the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q).   DEERE & COMPANY FOURTH QUARTER 2021 PRESS RELEASE (In millions of dollars) Unaudited Three Months Ended Years Ended October 31 November 1 % October 31 November 1 % 2021 2020 Change 2021 2020 Change Net sales and revenues: Production & precision ag net sales $ 4,661 $ 3,801 +23 $ 16,509 $ 12,962 +27 Small ag & turf net sales 2,809 2,397 +17 11,860 9,363 +27 Construction & forestry net sales 2,806 2,461 +14 11,368 8,947 +27 Financial services 869 891 -2 3,548 3,589 -1 Other revenues 182 181 +1 739 679 +9 Total net sales and revenues $ 11,327 $ 9,731 +16 $ 44,024 $ 35,540 +24 Operating profit: * Production & precision ag $ 777 $ 578 +34 $ 3,334 $ 1,969 +69 Small ag & turf 346 282 +23 2,045 1,000 +105 Construction & forestry 270 196 +38 1,489 590 +152 Financial services 299 249 +20 1,144 746 +53 Total operating profit 1,692 1,305 +30 8,012 4,305 +86 Reconciling items ** (78) (219) -64 (390) (472) -17 Income taxes (331) (329) +1 (1,659) (1,082) +53 Net income attributable to Deere & Company $ 1,283 $ 757 +69 $ 5,963 $ 2,751 +117 * Operating profit is income from continuing operations before corporate expenses, certain external interest expense, certain foreign exchange gains and losses, and income taxes. Operating profit of the financial services segment includes the effect of interest expense and foreign exchange gains or losses. ** Reconciling items are primarily corporate expenses, certain external interest expense, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.   DEERE & COMPANY STATEMENT OF CONSOLIDATED INCOME For the Three Months Ended October 31, 2021 and November 1, 2020 (In millions of dollars and shares except per share amounts) Unaudited  2021 2020 Net Sales and Revenues Net sales $ 10,276 $ 8,659 Finance and interest income 828 867 Other income 223 205 Total 11,327 9,731 Costs and Expenses Cost of sales 7,809 6,470 Research and development expenses 450 443 Selling, administrative and general expenses 936 1,011 Interest expense 210 278 Other operating expenses 309 414 Total 9,714 8,616 Income of Consolidated Group before Income Taxes 1,613 1,115 Provision for income taxes 330 329 Income of Consolidated Group 1,283 786 Equity in income (loss) of unconsolidated affiliates 1 (28) Net Income 1,284 758 Less: Net income attributable to noncontrolling interests 1 1 Net Income Attributable to Deere & Company $ 1,283 $ 757 Per Share Data Basic $ 4.15 $ 2.41 Diluted $ 4.12 $ 2.39 Average Shares Outstanding Basic 309.1 314.1 Diluted 311.5 317.1 See Condensed Notes to Consolidated Financial Statements.   DEERE & COMPANY STATEMENT OF CONSOLIDATED INCOME For the Years Ended October 31, 2021 and November 1, 2020 (In millions of dollars and shares except per share amounts) Unaudited 2021 2020 Net Sales and Revenues Net sales $ 39,737 $ 31,272 Finance and interest income 3,296 3,450 Other income 991 818 Total 44,024 35,540 Costs and Expenses Cost of sales 29,116 23,677 Research and development expenses 1,587 1,644 Selling, administrative and general expenses 3,383 3,477 Interest expense 993 1,247 Other operating expenses 1,343 1,612 Total 36,422 31,657 Income of Consolidated Group before Income Taxes 7,602 3,883 Provision for income taxes 1,658 1,082 Income of Consolidated Group 5,944 2,801 Equity in income (loss) of unconsolidated affiliates 21 (48) Net Income 5,965 2,753 Less: Net income attributable to noncontrolling interests 2 2 Net Income Attributable to Deere & Company $ 5,963 $ 2,751 Per Share Data Basic $ 19.14 $ 8.77 Diluted $ 18.99 $ 8.69 Average Shares Outstanding Basic 311.6 313.5 Diluted 314.0 316.6 See Condensed Notes to Consolidated Financial Statements.   DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEET As of October 31, 2021 and November 1, 2020 (In millions of dollars) Unaudited  2021 2020 Assets Cash and cash equivalents $ 8,017 $ 7,066 Marketable securities 728 641 Receivables from unconsolidated affiliates 27 31 Trade accounts and notes receivable - net 4,208 4,171 Financing receivables - net 33,799 29,750 Financing receivables securitized - net 4,659 4,703 Other receivables 1,738 1,220 Equipment on operating leases - net 6,988 7,298 Inventories 6,781 4,999 Property and equipment - net 5,820 5,817 Investments in unconsolidated affiliates 175 193 Goodwill 3,291 3,081 Other intangible assets - net 1,275 1,327 Retirement benefits 3,601 863 Deferred income taxes 1,037 1,499 Other assets 1,970 2,432 Total Assets $ 84,114 $ 75,091 Liabilities and Stockholders' Equity Liabilities Short-term borrowings $ 10,919 $ 8,582 Short-term securitization borrowings 4,605 4,682 Payables to unconsolidated affiliates 143 105 Accounts payable and accrued expenses 12,205 10,112 Deferred income taxes 576 519 Long-term borrowings 32,888 32,734 Retirement benefits and other liabilities 4,344 5,413 Total liabilities 65,680 62,147 Stockholders' Equity Total Deere & Company stockholders' equity 18,431 12,937 Noncontrolling interests 3 7 Total stockholders' equity 18,434 12,944 Total Liabilities and Stockholders' Equity $ 84,114 $ 75,091 See Condensed Notes to Consolidated Financial Statements.   DEERE & COMPANY STATEMENT OF CONSOLIDATED CASH FLOWS For the Years Ended October 31, 2021 and November 1, 2020 (In millions of dollars) Unaudited 2021 2020 Cash Flows from Operating Activities Net income $ 5,965 $ 2,753 Adjustments to reconcile net income to net cash provided by operating activities: Provision (credit) for credit losses (6) 110 Provision for depreciation and amortization 2,050 2,118 Impairment charges 50 194 Share-based compensation expense 82 81 Loss on sales of businesses and unconsolidated affiliates 24 Undistributed earnings of unconsolidated affiliates 2 (7) Credit for deferred income taxes (441) (11) Changes in assets and liabilities: Trade, notes, and financing receivables related to sales 969 2,009 Inventories (2,497) 397 Accounts payable and accrued expenses 1,884 (7) Accrued income taxes payable/receivable 11 8 Retirement benefits 29 (537) Other (372) 351 Net cash provided by operating activities 7,726 7,483 Cash Flows from Investing Activities Collections of receivables (excluding receivables related to sales) 18,959 17,381 Proceeds from maturities and sales of marketable securities 109 93 Proceeds from sales of equipment on operating leases 2,094 1,783 Cost of receivables acquired (excluding receivables related to sales) (23,653) (19,965) Acquisitions of businesses, net of cash acquired (244) (66).....»»

Category: earningsSource: benzingaNov 24th, 2021

CNFinance Announces Third Quarter of 2021 Unaudited Financial Results

GUANGZHOU, China, Nov. 23, 2021 /PRNewswire/ -- CNFinance Holdings Limited (NYSE:CNF) ("CNFinance" or the "Company"), a leading home equity loan service provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2021. Third Quarter 2021 Operational and Financial Highlights Total loan origination volume[1] was RMB3,117.5 million (US$480.7 million) in the third quarter of 2021, compared to RMB3,093.4 million in the same period of 2020. Total outstanding loan principal[2] was RMB11.1 billion (US$1.7 billion) as of September 30, 2021, compared to RMB9.7 billion as of December 31, 2020. Total interest and fees income were RMB457.0 million (US$70.5 million) in the third quarter of 2021, compared to RMB476.0 million in the same period of 2020. Net income was RMB19.0 million (US$2.9 million) in the third quarter of 2021, compared to RMB50.1 million in the same period of 2020. Basic and diluted earnings per ADS were RMB0.28 (US$0.04) and RMB0.25 (US$0.04), respectively, in the third quarter of 2021, compared to RMB0.73 and RMB0.67, respectively, in the same period of 2020. [1] Refers to the total amount of loans CNFinance originated during the relevant period. [2] Refers to the total amount of loans principal outstanding for CNFinance at the end of the relevant period. "Following a good first half, our loan facilitation business remained stable in the third quarter of 2021. During the third quarter, the robust business operations of micro-and small-enterprises (MSEs) created an increase in capital demand. To meet such demand, our professional and dedicated team, with the aid of our efficient and visualized online system, served over 5,000 borrowers. With RMB3.1 billion loans originated in the third quarter of 2021, the total outstanding loan principal reached RMB11.1 billion as of September 30, 2021. Although exposed to the lower funding supply from trust companies and an increase in financing cost, we were still able to record a net income of RMB19.0 million in the third quarter of 2021. It is worth noticing that we enlarged our business scale during the third quarter of 2021 while we lowered the collaboration cost for sales partners as a result of lower rate of incentives due to the overall lowered interest rates on loans, which reflected the success of our efforts to improve the screening and management of sales partners. To promote the strategical transformation to an asset-light platform, we plan to dispose of certain legacy loans under the traditional model in the fourth quarter. We will conduct evaluations and endeavor to sell those loans in bulk at fair market prices. Looking forward, we remain dedicated to building an asset-light service platform with a high turnover at a large scale while staying true to our mission of providing MSE owners with affordable, accessible and efficient financial services," commented Mr. Bin Zhai, CEO and Chairman of CNFinance. Third Quarter 2021 Financial Results Total interest and fees income decreased by 4.0% to RMB457.0 million (US$70.5 million) for the third quarter of 2021 from RMB476.0 million in the same period of 2020. Interest and financing service fees on loans decreased by 3.7% to RMB454.9 million (US$70.2 million) for the third quarter of 2021 from RMB472.5 million in the same period of 2020, primarily due to the combined effect of (a) the increase in the balance of average daily outstanding loan principal, and (b) the lowered interest rate on loans facilitated in an effort to comply with rules and regulations issued by relevant PRC regulatory authorities, including the Decisions of the Supreme People's Court to Amend the Provisions on Several Issues concerning the Application of Law in the Trial of Private Lending Cases issued in August 2020.  Interest on deposits with banks decreased by 40.0% to RMB2.1 million (US$0.3 million) for the third quarter of 2021 from RMB3.5 million in the same period of 2020, primarily due to the smaller daily average amount of time deposits. Total interest and fees expenses increased by 18.8% to RMB219.1 million (US$33.8 million) for the third quarter of 2021, compared to RMB184.4 million in the same period of 2020, primarily due to the increase in the principals of other borrowings as well as the funding cost from trust companies. Net interest and fees income was RMB237.9 million (US$36.7 million) for the third quarter of 2021, a decrease of 18.4% from RMB291.6 million in the same period of 2020. Collaboration cost for sales partners decreased to RMB101.5 million (US$15.7 million) for the third quarter of 2021 from RMB112.5 million in the third quarter of 2020, primarily due to the lower rate of incentives paid to sales partners by the Company in response to the overall lowered interest rates on loans. Net interest and fees income after collaboration cost was RMB136.4 million (US$21.0 million) for the third quarter of 2021, a decrease of 23.8% from RMB179.1 million in the same period of 2020. Provision for credit losses increased by 4.8% to RMB32.6 million (US$5.0 million) for the third quarter of 2021 from RMB31.1 million in the same period of 2020. The increase was mainly attributable to the combined effect of (a) the increase in outstanding principal of non-delinquent loans and loans delinquent within 90 days which resulted in the increase in collectively assessed allowances; and (b) the Company's receipt of recoveries in the quarter after charging down loans that are 180 days past due to net realizable value. Net gains/(losses) on sales of loans decreased to a net loss of RMB3.5 million (US$0.5 million) for the third quarter of 2021 from a net gain of RMB39.5 million in the same period of 2020, primarily attributable to the fact that the Company sold loans over 90 days past due to third parties with larger discount to recover cash under the traditional facilitation model. Other gains/(losses), net increased to a net gain of RMB15.8 million (US$2.4 million) for the third quarter of 2021 from a net loss of RMB2.1 million in the same period of 2020, primarily attributable to the increase of gains on confiscated Credit Risk Mitigation Position. Total operating expenses decreased by 21.1% to RMB93.0 million (US$14.4 million) for the third quarter of 2021, compared with RMB117.9 million in the same period of 2020. Employee compensation and benefits increased by 2.1% to RMB47.7 million (US$7.4 million) for the third quarter of 2021 from RMB46.7 million in the same period of 2020, primarily attributable to higher social security and housing fund benefits provided for employees resulting from the end of the phased reduction policy released by the PRC Ministry of Human Resources and Social Security in reaction to the COVID-19 pandemic in the third quarter of 2020. Share-based compensation expenses decreased by 69.7% to RMB4.7 million (US$0.7 million) for the third quarter of 2021 from RMB15.5 million in the same period of 2020. According to the Company's share option plan adopted on December 31, 2019, approximately 50%, 30% and 20% of the option granted will be vested on December 31, 2020, 2021 and 2022, respectively. Related compensation cost of the option grants will be recognized over the requisite period. Taxes and surcharges decreased by 10.9% to RMB10.6 million (US$1.6 million) for the third quarter of 2021 from RMB11.9 million for the same period of 2020, primarily attributable to a decrease in the non-deductible value added tax ("VAT"). The decrease in VAT was attributable to the characterization of certain amounts as "service fees charged to trust plans" which are a non-deductible item. According to PRC tax regulations, "service fees charged to trust plans" incur a 6% VAT on the subsidiary level, but are not recorded as an input VAT on a consolidated trust plan level. "Service fees charged to trust plans" were significantly decreased in the third quarter of 2021 compared to the same period of 2020 due to maturity of some trust plans. Such decrease was also due to a decrease in interest and financing service fees on loans by 3.7% for the third quarter of 2021 compared to the same period of 2020. Operating lease cost decreased by 15.9% to RMB3.7 million (US$0.6 million) for the third quarter of 2021 as compared to RMB4.4 million for the same period of 2020, primarily due to the continued development of the collaboration model that allowed the Company to further reduce the office leasing costs which was used to rent offices to accommodate sales staff. Other expenses decreased by 33.2% to RMB26.3 million (US$4.1 million) for the third quarter of 2021 from RMB39.4 million in the same period of 2020, primarily due to decreases in (a) service fees paid to third-party IT developers; (b) the cost related to promoting the collaboration model, and (c) service fees paid to third-party consultants. Income tax expense decreased by 73.2% to RMB6.6 million (US$1.0 million) for the third quarter of 2021 from RMB24.6 million in the same period of 2020, primarily due to a decrease in the amount of taxable income. Effective tax rate decreased to 25.7% for the third quarter of 2021 from 33.0% in the same period of 2020, because the share-based compensation expenses, as non-deductible expenses, decreased to RMB4.7 million (US$0.7 million) for the third quarter of 2021 from RMB15.5 million in the same period of 2020. Net income decreased by 62.1% to RMB19.0 million (US$2.9 million) for the third quarter of 2021 from RMB50.1 million in the same period of 2020. Basic and diluted earnings per ADS were RMB0.28 (US$0.04) and RMB0.25 (US$0.04), respectively, in the third quarter of 2021, compared to RMB0.73 and RMB0.67, respectively, in the same period of 2020. One ADS represents 20 ordinary shares. As of September 30, 2021 and December 31, 2020, the Company had Cash, cash equivalents and restricted cash of RMB2.0 billion (US$0.3 billion) and RMB2.0 billion, including RMB1.4 billion (US$0.2 billion) and RMB1.0 billion from structured funds, respectively, which could only be used to grant new loans and activities. The actual delinquency rate for loans originated by the Company decreased to 20.4% as of September 30, 2021 from 22.6% as of December 31, 2020. Under the collaboration model, the actual delinquency rate for first lien loans increased to 24.5% as of September 30, 2021 from 18.0% as of December 31, 2020, and the actual delinquency rate for second lien loans was stable at 15.5% as of September 30, 2021 as compared to 15.6% as of December 31, 2020. Under the traditional facilitation model, the actual delinquency rate for first lien loans decreased to 38.9% as of September 30, 2021 from 47.0% as of December 31, 2020, and the actual delinquency rate for second lien loans decreased to 38.3% as of September 30, 2021 from 43.2% as of December 31, 2020.            The actual NPL rate for loans originated by the Company decreased to 7.5% as of September 30, 2021 from 11.7% as of December 31, 2020. Under the collaboration model, the actual NPL rate for first lien loans increased to 9.1% as of September 30, 2021 from 6.7% as of December 31, 2020, and the actual NPL rate for second lien loans decreased to 4.3% as of September 30, 2021 from 4.6% as of December 31, 2020. Under the traditional facilitation model, the actual NPL rate for first lien loans decreased to 27.5% as of September 30, 2021 from 38.2% as of December 31, 2020, and the actual NPL rate for second lien loans decreased to 23.8% as of September 30, 2021 from 31.6% as of December 31, 2020. Business Outlook The extent to which the COVID-19 pandemic impacts the Company's results of operations will depend on future developments of the pandemic in China and across the globe, which are subject to change and substantial uncertainty and therefore cannot be predicted. For the fourth quarter of 2021, based on the information available as of the date of this press release, the Company expects to dispose of certain non-performing loans to improve the overall loan portfolio, and expects to incur a net loss of between RMB80 million and RMB100 million. The above outlook is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions, which are all subject to substantial uncertainty. Conference Call CNFinance's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Monday, ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaNov 23rd, 2021

Fetner JV secures $95M financing for LIC rental project

American Lions, a joint venture between Fetner Properties and the Lions Group, announced its first project, 27-01 Jackson Avenue, is fully financed, with $95 million in backing from Bank Leumi USA, Leumi Partners, and Israeli Discount Bank (IDB). Located in Long Island City, 27-01 Jackson Avenue will be a 27-story rental building with 164... The post Fetner JV secures $95M financing for LIC rental project appeared first on Real Estate Weekly. American Lions, a joint venture between Fetner Properties and the Lions Group, announced its first project, 27-01 Jackson Avenue, is fully financed, with $95 million in backing from Bank Leumi USA, Leumi Partners, and Israeli Discount Bank (IDB). Located in Long Island City, 27-01 Jackson Avenue will be a 27-story rental building with 164 apartments, 30 percent of which will be affordable. “Fetner Properties has a longstanding commitment to building, owning and managing high quality mixed income projects in New York City, and we are excited to officially commence construction of 27-01 Jackson. This milestone represents the cumulative efforts of colleagues and professionals across many disciplines over a period of years, all against the headwinds of national pandemic, and we are grateful to all,” said Hal Fetner, president and CEO of Fetner Properties. “We  are proud to be part  New York City’s economic recovery with the start of this project, and more importantly, we look forward to meeting the housing needs of New Yorkers from a wide range of economic backgrounds in the heart of Long Island City.”  Rendering of the new tower. 27-01 Jackson Avenue is the first of a two-phase project for American Lions, which will include another tower across Jackson Avenue. SLCE Architects is the architect for both residential rental buildings. This is the first project Fetner Properties has launched in Queens; they are well known for their well-run properties throughout Manhattan. The Shirian family were pioneering developers in Long Island City, getting the first permit after the re-zoning in 2001. Their company, the Lions Group, has built more projects than any other developer in the area. “I’m thrilled to be building another project in Long Island City, as well as continuing to strengthen our relationship with Bank Leumi and Leumi Partners in addition to building a new one with Israeli Discount Bank,” said Albert Shirian, co-founder of Lions Group. “Joining forces with Fetner was a natural fit, as we are both multi-generational family businesses dedicated to bringing the absolute best product to New York City residents. To commence our work together is a real honor.” “Bank Leumi USA is glad to be part of this exciting development as New York City comes out of the pandemic,” said Jeff Puchin of Bank Leumi. “We look forward to another successful project with the Shirian Family and the Lions Group and growing our relationship with Fetner Properties.” The post Fetner JV secures $95M financing for LIC rental project appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyNov 22nd, 2021

Tishman Speyer forms new $1.5B investment platform with Korean pension fund

The National Pension Service of Korea (NPS) and Tishman Speyer have announced the creation of NPS-Tishman Speyer Thematic Platform, a $1.5 billion separately managed account (SMA) focused on investments in real estate innovation and high-demand asset classes across major U.S. markets. The newly established venture will dedicate capital to pursue... The post Tishman Speyer forms new $1.5B investment platform with Korean pension fund appeared first on Real Estate Weekly. The National Pension Service of Korea (NPS) and Tishman Speyer have announced the creation of NPS-Tishman Speyer Thematic Platform, a $1.5 billion separately managed account (SMA) focused on investments in real estate innovation and high-demand asset classes across major U.S. markets. The newly established venture will dedicate capital to pursue opportunities in emerging sectors that are being propelled by rapid advances in innovation and technology. The initiative, which draws upon Tishman Speyer and NPS’s global expertise and experiences as early adopters of new technologies, will explore the creation of new funds and platforms aimed at a range of promising sectors. “For more than a decade, the National Pension Service has been a strategic partner and sophisticated co-investor with us. I am excited to build on our relationship and recent successes,” said Tishman Speyer president and CEO Rob Speyer.  ROB SPEYER “This new platform leans into our collective experience in emerging asset classes and global markets.  The most intriguing part is the new built-in ability to move quickly based on disruptive technologies and market shifts.”  The NPS-Tishman Speyer platform will also devote capital for the acquisition and development by Breakthrough Properties of world-class life sciences real estate. A joint venture between Tishman Speyer and life sciences investment firm Bellco Capital, Breakthrough Properties is currently advancing a number of major investments in the largest life sciences clusters in Boston and San Diego and maintains a robust pipeline of potential investments in many established and emerging life sciences markets. The platform will make investments in promising proptech companies, especially at nascent stages in their growth cycles. NPS and Tishman Speyer will specifically target investments in disruptive technologies that are transforming how all stakeholders experience real estate.  NPS will become the anchor investor in Tishman Speyer’s newly established affordable housing platform. The partnership will focus on addressing the affordability crisis by investing in fair and equitable affordable and workforce housing primarily in supply-constrained neighborhoods. In addition, the NPS-Tishman Speyer partnership will seed the creation of a new mezzanine lending arm within Tishman Speyer that will originate and acquire high-yield loans tied to various sectors of real estate in gateway cities and growing innovation markets.  National Pension Service of Korea (NPS) is one of the largest pension funds in the world with approximately $788 billion in assets including real estate, private equity and infrastructure. Tishman Speyer is a leading owner, developer, operator and investment manager of first-class real estate in 30 key markets across the United States, Europe, Asia and Latin America. Since its inception in 1978, Tishman Speyer has acquired, developed, and operated 484 properties, totaling 219 million square feet, with a combined value of over $121 billion. The company’s current portfolio includes such iconic assets as Rockefeller Center in New York City, The Springs in Shanghai, TaunusTurm in Frankfurt and Mission Rock in San Francisco. The post Tishman Speyer forms new $1.5B investment platform with Korean pension fund appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyNov 9th, 2021

American Defense Policy After Twenty Years Of War

American Defense Policy After Twenty Years Of War Authored by Jim Webb via NationalInterest.org, America has always been a place where the abrasion of continuous debate eventually produces creative solutions. Let’s agree on those solutions, and make the next twenty years a time of clear purpose and affirmative global leadership. The American scorecard for foreign policy achievements over the past twenty years is, frankly, pretty dismal. And without talking our way all around the globe, it’s clear that the most dismal score goes to the stupidest mistakes. We fought one war that we never should have fought and another war whose objectives grew so out of control that no amount of battlefield proficiency could overcome the naïve mission creep of the political and military leadership at the top that was defining what our troops were supposed to do. So, let me start with a couple of quotes from two pieces I wrote, one at the beginning of this twenty-year period and the other at the end.   On September 4, 2002, five months before the Bush administration ordered the invasion of Iraq, I wrote the following as part of a larger editorial for the Washington Post, warning that an invasion would be a strategic blunder: Nations such as China can only view the prospect of an American military consumed for the next generation by the turmoil of the Middle East as a glorious windfall. Indeed, if one gives the Chinese credit for having a long-term strategy — and those who love to quote Sun Tzu might consider his nationality — it lends credence to their insistent cultivation of the Muslim world. An “American war” with the Muslims, occupying the very seat of their civilization, would allow the Chinese to isolate the United States diplomatically as they furthered their own ambitions in South and Southeast Asia. Almost exactly nineteen years later as the military planners serving the Biden Administration executed a shamefully incompetent final withdrawal from Afghanistan, I wrote the following for The National Interest, excerpted in the Wall Street Journal, in a piece entitled “Requiem for an Avoidable Disaster:”  …the war that we began was not the same war that we are finally bringing to an end. When we went into Afghanistan in 2001 our national concern was to eliminate terrorist entities who desired to attack us. The common understanding at the time was that we would operate with maneuver elements capable of attacking and neutralizing terrorist entities. It was never to occupy territory with permanent bases or to attempt to change the societal and governmental structure of the Afghan people. This “mission creep” began after a few years of successful operations and was obvious in 2004 when I was in the country as an embed journalist. The change in mission eventually increased our troop presence tenfold and sent our forces on an impossible political journey that no amount of military success could overcome. Why did all this happen? And how can we rectify the damage that has been done to the institutions that were involved, and to our international credibility? There’s an old saying that “success has a thousand fathers but failure is an orphan.” In this case, there were two entirely different categories of orphans, some of whom were not touched personally or even professionally, and some who gave up lives, limbs, and emotional health. For the policymakers in Washington, these were wars to be remotely managed inside the guide rails of theoretical national strategy and uncontrolled financial planning. As with so many other drawn-out military commitments with vaguely defined and often changing objectives, America’s diplomatic credibility steadily decreased while the price tag rose through the roof, into trillions of dollars and thousands of combat deaths. There is no way around the reality that these hand-selected policymakers, military and civilian alike, failed the country, even as many of them were being lionized in the media and offered lucrative post-retirement positions in the private sector. Their immediate strategic goals, vague as they were from the outset, were not accomplished. The larger necessity of meeting global challenges, and particularly China’s determined expansion, was put on the back burner as our operational and diplomatic capabilities were diverted into a constantly quarreling region with the deserved reputation of being the “Graveyard of Empires.” In the context of history, the human cost on the battlefield as viewed by those at the top was manageably small, and carried out by an all-volunteer military. Indeed, despite the length of twenty years of war and many ferocious engagements, the overall casualty numbers were historically low. DOD reports the total number of American military deaths in Iraq and Afghanistan combined over twenty years as 7,074, of which 5,474 were killed in action. This twenty-year number was about the same as six months of American casualties during any one of the peak years of fighting in Vietnam. Emotionally, although there was much sympathy and respect for our soldiers we were not really a nation in a fully engaged war. As the wars continued, life in America went on without disruption. A very small percentage of the country was at human or even family risk. The wars did not interfere on a national scale with the lives of those who chose not to serve. The economy was largely good. In places like my home state of Virginia it absolutely boomed with tens of billions of dollars going to Virginia-based programs in the departments of Defense and Homeland Security. This societal disconnect gave the policymakers great latitude in the manner in which they ran the wars. It also resulted in very little congressional oversight, either in operational concepts or in much-need scrutiny of DOD and State Department management and budgets. Powerpoint presentations replaced vigorous discussion. Serious introspection by Pentagon staff members gave way to bland reports from Beltway Bandit consultants hired to provide answers to questions asked during committee hearings. An “Overseas Contingency Fund” with billions of unlabeled dollars allowed military leaders to fund programs that were never directly authorized or specifically appropriated by Congress. To be blunt, the Pentagon and the Joint commands were basically making their own rules, and to hell with everybody else. This was not the Congress in which I had worked as a full committee counsel during the Carter Administration. Nor was it the Pentagon in which I had served as an assistant secretary of defense and Secretary of the Navy under Ronald Reagan. At the other end of the pipeline, it was different. For those who did serve, and especially for those who served in ground combat units and in special operations, being thrown into the middle of a region where violence and bitter retribution is the norm was often a life-altering experience. Repetitive combat tours pulled them away from home, from family, and from the normal routines of their peers again and again, creating burnout from unresolved personal issues of stress and readjustment to civilian life. So-called “stop loss” programs kept many soldiers on active duty after their initial terms of service were supposed to end, a policy that brought the not-unreal slogan that stop-loss was, in reality, nothing more than a back-door version of the draft: We have you. And we are going to keep you until we no longer need you. The traditional policy of allowing troops a two-to-one ratio of “dwell time” at home between deployments was repeatedly shortened until, for the Army, the ratio was less than one-to-one, requiring soldiers to return to combat for fifteen months with only twelve months at home to recuperate, refurbish, and retrain. Those who left the military after one enlistment rather than choosing a career were largely ignored by commands that provided little post-military guidance and sent battle-weary young soldiers home without much more than a goodbye. But along the way, as with those who have served our country in uniform in every other war, our young military did the job that they were sent to do, no matter the overall wisdom of the mission itself. With respect to these capable and dedicated young Americans who stepped forward to serve, I feel fortunate to have been able to play a part in making sure that the public was aware of the contributions they made, and to put into place policies that recognized and properly rewarded their service. And as a writer, journalist and later a Senator I was able to use whatever pulpit was available in order to emphasize that our greatest strategic challenges were not in the places where our elites had decided to invest our people and our national treasure, and to call for the country’s leadership to cease its unfortunate obsession with a region that has never needed a permanent American ground presence as a means of mediating, much less resolving, its centuries-old conflicts. You don’t take out a hornet’s nest by sitting on top of it. We’re smarter than that, and also more capable.   In addition to working on strongly felt issues such as economic fairness and criminal justice reform, once I was elected to the Senate I took a two-pronged approach to resolving the mess that had been made in our misadventures in Iraq and Afghanistan. The first involved our larger strategic interests. I immediately gained a seat on the Senate Foreign Relations Committee, and two years later was named Chairman of the Subcommittee on East Asian and Pacific Affairs. From our immediate office, I designed a staff—and a legislative approach—that would energetically re-emphasize our commitment to relations in East Asia, and recruited good people to carry out that approach. My mission to my staff was that we were going to work to invigorate American relations in East Asia, particularly in South Korea, Japan, Vietnam, Thailand, Singapore, and the Philippines, and we were going to open up Burma to the outside world. We did more than talk about this, averaging three intense trips every year where I was able to meet with top leaders in those countries as well as almost every other country in ASEAN. Barack Obama later announced a similar policy after he was elected two years later, calling it the “Pivot to Asia.” Unfortunately, his administration’s approach skirted the largest issue in the region by avoiding any major confrontations with China. The pivot was largely abandoned at a crucial period in 2012 after China claimed sovereignty over a two million square kilometer area of the South China Sea, and began militarizing numerous contested islands claimed by several other countries. The Obama administration declined to criticize China’s actions, saying that the United States would not take a position on sovereignty issues. Quite obviously, not taking a position in this matter was defaulting to China’s aggressive acts. I responded by introducing a Senate resolution condemning any use of military force in the resolution of sovereignty issues in the South China Sea, which passed with a unanimous vote. The second involved the day-to-day manner in which our wars were being fought, and the way that our younger military people were being treated by those at the top. I participated in numerous hearings on all aspects from my seats on the Armed Services and Foreign Relations committees, becoming even more concerned about the lack of serious congressional oversight. During one Foreign Relations Committee hearing on post-invasion reconstruction efforts, an assistant secretary of state testified that the United States had spent 32 billion dollars on different smaller-scale projects.  I asked him to provide me and the committee a complete list of every project, as well as the cost. That was in 2007. I’m still waiting for his answer. This was clearly not the way things worked when I was a counsel in the House, where such requests were often answered within a day or two, from information that had already been compiled. In fact, the lack of an answer, despite follow-up calls from my staff, followed a broader pattern that had evolved after 9/11 when vague answers and delayed responses had become the norm, a deliberate and increasingly routine snub of the Congress by higher-level members of the executive branch. Take your choice. This was either incompetent leadership or deliberate obstruction. If the congressional liaisons from DOD were able to provide specific, complicated data within a day or two in 1977, certainly the computers of 2007 were capable of doing so after thirty years of technological progress. I responded by co-authoring legislation along with Senator Claire McCaskill that created the Wartime Contracts Commission, modeled after the Truman Commission of World War Two. After three years of investigations, the commission’s final report estimated that due to major failures in our contracting system the United States had squandered up to 60 billion dollars through contract waste and fraud in Iraq and Afghanistan. Unfortunately, the commission lacked subpoena power or criminal jurisdiction over actions taken in the past, but it certainly got the attention of would-be fraudsters, led to better record-keeping, improved the oversight process, and put a marker down for contracts from that point forward.   Having grown up in the military, and serving as an infantry Marine in Vietnam, and with a son who had left college to enlist in the Marine Corps infantry and fought in Ramadi, Iraq during one of the worst periods in that war, I seized the opportunity – and undertook the obligation – to properly reward the contributions of those who had stepped forward to serve. Immediately after I won the election to the Senate, and two months before actually being sworn in, I sat down with the Senate legislative counsel and drafted the Post-9/11 GI Bill. Having spent four years as a full committee counsel on the House Veterans Affairs Committee, my legislative model was the GI Bill that had been given to our World War Two veterans, the most generous GI Bill in history up to that time: pay for the veteran’s tuition and fees, buy the books, and provide a monthly living stipend. For every tax dollar that was spent on the World War Two GI bill, our treasury received eight dollars in tax remunerations from veterans who had gone on to successful lives. By contrast, the Vietnam Era GI Bill had provided only a monthly payment that in almost every case was far less than the costs of higher education, beginning in 1966 at a paltry rate of 50 dollars a month and ending in the early 1970s at $340 a month. I introduced the Post-9/11 GI Bill on my first day as a Senator. I put together a bipartisan leadership team—two Republicans, John Warner and Chuck Hagel; two Democrats, Frank Lautenberg and myself; two of them World War Two veterans, and two of them Vietnam veterans. Sixteen months later in a modern-day Congressional miracle, the bill became law, ironically over the strong opposition of the Bush Administration to the very end. The White House and the Pentagon claimed that such a generous bill would affect retention, causing too many people to leave the military. The obvious but implicit message was, Don’t treat them too good; they’ll leave. This position was taken by general officers who were going to receive a couple of hundred thousand dollars every year in military retirement when they themselves decided to leave. Having spent five years in the Pentagon and being intimately familiar with manpower issues, I held a completely different belief, that the generosity of the new GI Bill would enhance enlistments and help broaden the base of our overall military. In a back-handed compliment, at least in my view, I was not invited to the White House for the ceremony when the President signed the bill. But to date, millions of post-9/11 veterans have used this Bill, which is beyond cavil the most generous GI Bill in history. It has created opportunities and empowered the careers of people who are now making their way into positions of leadership and influence throughout the country. Shortly after I introduced the GI Bill, I introduced legislation to mandate a proper ratio for dwell time between overseas deployments. The legislation would have required that military members not be returned to combat unless they had been home for at least the amount of time that they had previously been gone. This was not unreasonable. A two-to-one ratio was a simple formula that reflected traditional rotation cycles. With the continuous deployments to Iraq and Afghanistan it had fallen to less than one-to-one, which meant that for years our soldiers would be gone longer than they were at home, and when they were at home they would be spending much of their time getting ready to go back. This reality was clearly affecting not only morale but also the potential for long-term emotional difficulties such as post-traumatic stress. Predictably, the White House and the Pentagon opposed the legislation. Some claimed that I had designed it with a hidden agenda to slow down the war in Iraq. Others, led by Senator Lindsey Graham, claimed that the legislation was unconstitutional, that Congress could not intervene in the operational tempo of the military since the President was the Commander in Chief. But a precedent was already set. During the Korean War, Congress had ceased the deployment of soldiers who were being sent to the war zone without proper training by mandating that no military members could be deployed overseas unless they had spent 120 days on active duty. If the military leaders weren’t going to take care of their people, it was only right that Congress should set proper boundaries. The Republicans filibustered the legislation, which then required sixty votes for passage. Although the bill twice received a fifty-six vote majority, with several Republican votes for passage, we did not break the filibuster.  But we did put the issue of dwell time firmly before Congress and the public, and the two-to-one deployment cycle eventually became the express goal inside the Department of Defense. All of that is history. I put it before you as something of a template to show the patterns that evolved and have continued over the past twenty years, as well as evidence that strong and informed leadership in Congress can turn things around. In many ways, this dislocation is between those who make policy—including military leaders—and those who carry it out. It continues due to the group mentality of a foreign policy aristocracy seeking common agreement rather than original thought. And it has exacerbated this ever-growing dislocation by freezing out those who are not, basically, in the club because their thinking does not fit the usual mantra and their ideas threaten the prevailing orthodoxy. We need these other voices. There are lessons to be learned and unavoidable questions that need to be answered at every level. Some involve the articulation of our national security objectives and how we define national strategy. Some involve when and how we should use the military for operational missions in harm’s way. And some involve the actual makeup of these military missions, from their remote or covert or overt nature, and if deployed in large numbers how large that footprint should be, and what portion should consist of military contractors along the lines of the past twenty years. And for those who want to repair the damage, it challenges us to find clear ways where we can move forward. Who do we hold accountable for the random and often changing strategic mistakes that have damaged our strength and our reputation? How do we move forward in the way we articulate and implement our national strategy here at home? How do we regain our respect in the international community, both among our friends who need us, and from potential adversaries who pray every day that America will lose its willpower, that we would be so overcome by military failures abroad and turbulence at home that the nation itself will atrophy and descend into the ranks of an also-ran, second-rate power?   We should begin with a vigorous and open discussion about the makeup, power, and influence of America’s massive defense establishment. And here I’m talking about the highest levels of our uniformed military, the civilian government officials, the powerful defense corporations, the numerous think tanks funded heavily by the defense industry, the hugely influential lobbying organizations, and—if not at the bottom, certainly in the bullseye of the efforts of all of these entities—the authorizing and appropriating committees in the Senate and House of Representatives. Couple that with the media of all sorts, particularly the huge growth of the internet and social media, and one can see how complicated the debate over any controversial issue can become. We were warned about this, sixty years ago, by President Dwight D. Eisenhower in his well-remembered speech about the “military / industrial complex.” The speech was the president’s carefully placed farewell message to the American people, made just three days before he left office. His words resonate, symbolic in their timing as his final shot across the bow, and coming as they did from this former five-star general who knew the military with a completeness that no other American president could ever match. After commenting that in the aftermath of World War Two the “conjunction of an immense military establishment and a large arms industry is new in the American experience,” Eisenhower expressed his concern about the “total influence – economic, political, even spiritual” of this new reality “in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications.”   The outgoing, immensely popular President then bluntly called out the members of his own professional culture—the military itself—and the bond its top leaders were increasingly forming with America’s defense corporations. “In the councils of government we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military / industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.” Looking at the decades following his speech and particularly the past twenty years, I believe President Eisenhower would be amazed at how massively this military-industrial complex has grown, how entangled the relationships between the military and the industrial complex have become, and how much it has affected the career paths of civilian “experts,” as well as the positions taken by many senior flag officers facing retirement. Lucrative civilian careers have been made through the “revolving doors” of serving for a few years in appointed posts in the Departments of Defense and State, or by working on committee staffs in the Congress, then rotating over the space of many years in and out of government into the defense-oriented industry and in the ever more influential think tanks, some of them heavily funded by corporations with major financial interests in defense contracts. The number of people involved in such revolving doors and the amount of money flowing back and forth would have stunned the understanding of people in Eisenhower’s era. Likewise, many military officers have made similar career moves, taking advantage of skills and relationships that were developed while on active duty. Those in uniform and others who work in the area of national defense regularly comment about the potential for conflicts of interest among the most senior flag officers as they carry out their final active duty positions before retiring and prepare for their next career in the civilian world. Critical issues ranging from the procurement of weapons systems to carrying out politically sensitive military operations often comprise the way in which potential civilian employers decide on the next chapter in their lives. A hand played well can bring large financial benefits. A hand played poorly can result in media stigma or even being relieved of their duties, and a beach house in Tarpon Springs. As with other areas of public service, it would be useful for Congress to examine the firewalls in place in order to maintain the vitally important separation of the military, on the one side, and the industrial complex on the other, just as President Dwight Eisenhower so prophetically pointed out sixty years ago. Dwight Eisenhower would have liked General Robert Barrow, the twenty-seventh commandant of the Marine Corps. His leadership example personally inspired me, both during and after my service in the Corps. We had many personal discussions over the years, until he passed away in 2008. He was a great combat leader. He mastered guerrilla warfare while fighting Japanese units alongside Chinese soldiers in World War Two. In the Korean War, he received the Navy Cross, our country’s second-highest award, for extraordinary heroism as a company commander during the historic breakout from the Chosin Reservoir. And in Vietnam, he was known as one of the war’s finest regimental commanders. He knew war, he knew loyalty, and he knew his Marines. General Barrow was fond of emphasizing that moral courage was often harder, and more exemplary, than physical courage. On matters of principle, he would not bend. During one difficult period when he was dealing with serious issues in the political process, the four-star Commandant calmly pointed out to me that his obligation was to run the Marine Corps “the same way a good company commander runs his rifle company: I’ll do the best job I know how to do, and if you don’t like what I’m doing, then fire me.” It is rare these days to see such leaders wearing the stars of a general or an admiral. And thinking of President Eisenhower’s prescient warnings about what he termed the “the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals,” I have no doubt that he and General Barrow shared the same concerns. General Barrow held another firm belief. Having served as Commandant of the Marine Corps, he believed it would soil the dignity of that office by trading on its credibility for financial gain through banging on doors in Washington as a lobbyist or serving as a board member giving a defense-related corporation his prized insider’s advice on how to sell their product. The Japanese have a saying that “life is a generation, but reputation is forever.” And General Barrow’s pristine motivation will forever preserve his honor. I grew up in the military. I know the price that families must pay when their fathers or now even their mothers are continuously deployed, because I lived it as a very young boy. My father, a pilot who flew B-17s and B-29s in World War Two and cargo planes in the Berlin Airlift, was continually deployed either overseas or on bases with no family housing, at one point for more than three years. I know the demands and yet the honor of leading infantry Marines in combat and then spending years in and out of the hospital after being wounded. I know what it is like to be a father with a son deployed in a very bad place as an enlisted infantry Marine. And most of all I know the pride that comes from being able to say for the rest of my life that when my country called, I was there, and I took care of my people. My other major point today is that our top leaders in all sectors of national defense need to get going and develop a clearly articulated foreign policy. We have lost twenty years, unfortunately fulfilling the prediction that I made in the Washington Post five months before the invasion of Iraq that “Nations such as China can only view the prospect of an American military consumed for the next generation by the turmoil of the Middle East as a glorious windfall.” And for China, indeed it was. It’s ironic that we are now hearing frantic warnings from our uniformed leaders about China’s determined expansionism, both military and economic, and particularly about how recent reports of Chinese technological leaps might be something of a new “Sputnik” moment where America has been caught off-guard and now must rush to catch up. Too bad they weren’t following this as these policies and technological improvements were developed by the Chinese over at least the past two decades, while our focus remained intently on the never-ending and never-resolved brawls in the Middle East. The very people who now are wringing their hands and calling for a full-fledged effort to counter such threats are the same people who should have been warning the nation of their possibility ten or even twenty years ago. So, ask yourself: If things go wrong, who then shall we blame? Much of the world is now uneasy with China’s unremitting aggression on its home turf in Asia. Over the past decade, China has been calling its own shots, rejecting international law and public opinion while flexing its muscle to signal its view that it will soon replace the United States as the region’s dominant military, diplomatic and economic power. Beijing has taken down Hong Kong’s democracy movement; started military spats with India; disrupted life for tens of millions by damming the headwaters of the Mekong River; conducted what our government now deems a campaign of genocide against Muslim Uighurs; escalated tensions with Japan over the Senkaku Islands; consolidated its illegal occupation and militarization of islands in the South China Sea; and made repeated bellicose gestures designed to test the international community’s resistance to “unifying” the “renegade province” of Taiwan. China’s military is expanding and modernizing and its Navy is becoming not only technological but global. While we expended a huge portion of our human capital, emotional energy, and national treasure on two wars, China’s Belt and Road Initiative (BRI) has had a major economic impact in Asia, Africa, and Latin America and with individual governments on other continents. In Africa, whose population has quadrupled since 1970 and which counts only one of the world’s top thirty countries in Gross National Product, more than forty countries have signed on to China’s BRI. Let’s get going. We have alliances to enhance, and extensive national security interests to protect. We need to address these issues immediately and with clarity. America has always been a place where the abrasion of continuous debate eventually produces creative solutions. Eventually is now. Let’s agree on those solutions, and make the next twenty years a time of clear purpose and affirmative global leadership. Tyler Durden Tue, 11/09/2021 - 00:00.....»»

Category: blogSource: zerohedgeNov 9th, 2021

A&E closes on acquisition of 400 East 57th Street

A&E Real Estate has closed on its acquisition of 400 East 57th Street, a 19-story multifamily building in the Sutton Place neighborhood.  400 East 57th Street contains 263 rent-stabilized and market-rate apartments. The sale price was $133.5 million, according to SL Green. This is A&E’s second recent deal with SL... The post A&E closes on acquisition of 400 East 57th Street appeared first on Real Estate Weekly. A&E Real Estate has closed on its acquisition of 400 East 57th Street, a 19-story multifamily building in the Sutton Place neighborhood.  400 East 57th Street contains 263 rent-stabilized and market-rate apartments. The sale price was $133.5 million, according to SL Green. This is A&E’s second recent deal with SL Green in the neighborhood.  In April of this year, it purchased 400 East 58th Street, also from SL Green. The 400 East 57th Street acquisition is the first investment A&E has undertaken through its most recent real estate fund, AEREP III, launched in April.  A&E is currently accepting additional capital commitments for the fund, which is its third and largest fund to date. “The investments we are making throughout New York City demonstrate our faith in the city’s future,” said A&E Real Estate CEO James Patchett, CEO. “Our residents represent the backbone of this city, and it’s our mission to provide them with quality housing and responsive building services. Our entire team looks forward to serving the needs of our residents at 400 East 57.” A&E Real Estate President Maggie McCormick added, “This transaction is indicative of A&E’s unique ability to source and take advantage of promising investment opportunities.  Just as importantly, we have built a deep bench of construction, operations and leasing professionals who ensure that each building we acquire benefits from best-in-class service.” Founded in 2011 by Douglas Eisenberg, John Arrillaga, Jr., and Wendy Eisenberg, A&E has grown from a single 49-unit building in Fort Greene to more than 15,000 Bronx, Manhattan, Brooklyn and Queens apartments currently under management. A&E has expanded its portfolio in large part through acquisitions of apartment buildings and portfolios from legacy owners. The firm owns and manages both rent-stabilized and market-rate apartments, with a specific focus on quality workforce housing for teachers, first responders and other essential workers. Its extensive multifamily portfolio ranges from 10-unit rentals in Brooklyn to 1,200-apartment communities in Kew Gardens Hills and Harlem’s Riverton Square. A&E also recently launched a new in-house leasing company, dubbed 1898.  Named for the year that all five boroughs officially came together to create what is now the City of New York. 400 East 57th Street is 70% occupied and includes 10,000 s/f of retail space leased to essential service providers. SL Green announced in April that the sale was part of its ongoing strategy to divest non-core assets to reinvest the capital into its share repurchase program and development projects. The post A&E closes on acquisition of 400 East 57th Street appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyOct 25th, 2021

Great Southern Bancorp, Inc. Reports Preliminary Third Quarter Earnings of $1.49 Per Diluted Common Share

Preliminary Financial Results and Other Matters for the Quarter and Nine Months Ended September 30, 2021: CECL Adoption: As previously disclosed, effective January 1, 2021, Great Southern Bancorp, Inc. (the Company) adopted the Current Expected Credit Loss (CECL) accounting standard. The Company's financial statements for periods prior to January 1, 2021, were prepared under the incurred loss accounting standard. The adoption of the CECL accounting standard during the first quarter of 2021 required us to recognize a one-time cumulative adjustment to our allowance for credit losses and a liability for potential losses related to the unfunded portion of our loans and commitments in order to fully transition from the incurred loss model to the CECL model. Significant Income and Expense Items: During the three months ended September 30, 2021, the Company recorded interest income of $1.6 million related to net deferred fee income accretion on Paycheck Protection Program (PPP) loans. Net fees are accreted over the loan term with remaining deferred fees recorded in interest income when the loans pay off by the borrower or by the Small Business Administration (SBA) when they are forgiven. During the first and second quarter of 2021, almost all of the remaining loans from the original round of PPP were repaid by the SBA in accordance with the borrower forgiveness terms of the PPP. We expect more PPP loans from the most recent round of PPP will repay in full during the fourth quarter of 2021. At September 30, 2021, remaining net deferred fees related to PPP loans totaled $2.1 million. In addition, for the three months ended September 30, 2021, based upon the Company's assumptions, estimates and CECL credit loss methodology, the Company recorded a negative provision for credit losses of $3.0 million related to its outstanding loans. This negative provision was mainly the result of declining outstanding loan balances, continued low levels of net charge-offs and an improving economic outlook. The Company also recorded a provision expense for unfunded commitments of $643,000. The after-tax effect of these net credit provision items on earnings was $0.13 per diluted share. Total Loans: Total gross loans (including the undisbursed portion of loans), excluding FDIC-assisted acquired loans and mortgage loans held for sale, decreased $210.0 million, or 4.1%, from December 31, 2020, to September 30, 2021. This decrease was primarily in other residential (multi-family) loans, commercial business loans, commercial real estate loans and consumer auto loans. This decrease was partially offset by increases in construction loans and single family real estate loans. The FDIC-assisted acquired loan portfolios decreased $19.1 million during the nine months ended September 30, 2021. Outstanding net loan receivable balances decreased $271.1 million, from $4.30 billion at December 31, 2020 to $4.03 billion at September 30, 2021. Asset Quality: Non-performing assets and potential problem loans, including those acquired in FDIC-assisted transactions, totaled $11.7 million at September 30, 2021, a decrease of $1.6 million from $13.3 million at June 30, 2021 and a decrease of $2.3 million from $14.0 million at December 31, 2020. At September 30, 2021, non-performing assets, including those acquired in FDIC-assisted transactions, were $7.9 million (0.15% of total assets), a decrease of $636,000 from $8.6 million (0.15% of total assets) at June 30, 2021 and a decrease of $171,000 from $8.1 million (0.14% of total assets) at December 31, 2020. Excluding FDIC-assisted acquired assets, non-performing assets and potential problem loans totaled $8.0 million (0.15% of total assets) at September 30, 2021, and non-performing assets were $5.2 million (0.10% of total assets). Net Interest Income: Net interest income for the third quarter of 2021 increased $755,000 (or approximately 1.7%) to $44.9 million compared to $44.2 million for the third quarter of 2020. Net interest income was $44.7 million for the second quarter of 2021. Net interest margin was 3.36% for each of the quarters ended September 30, 2021 and September 30, 2020. The positive impact on net interest margin from the additional yield accretion on acquired loan pools that was recorded during the periods was two and nine basis points for the quarters ended September 30, 2021 and September 30, 2020, respectively. Core net interest margin, which excludes the impact of the yield accretion, was 3.34% and 3.27% for the three months ended September 30, 2021 and 2020, respectively. For further discussion of the additional yield accretion of the discount on acquired loan pools, see "Net Interest Income." Capital: The capital position of the Company continues to be strong, significantly exceeding the thresholds established by regulators. On a preliminary basis, as of September 30, 2021, the Company's Tier 1 Leverage Ratio was 11.0%, Common Equity Tier 1 Capital Ratio was 13.4%, Tier 1 Capital Ratio was 14.0%, and Total Capital Ratio was 16.9%. SPRINGFIELD, Mo., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Great Southern Bancorp, Inc. (NASDAQ:GSBC), the holding company for Great Southern Bank, today reported that preliminary earnings for the three months ended September 30, 2021, were $1.49 per diluted common share ($20.4 million available to common shareholders) compared to $0.96 per diluted common share ($13.5 million available to common shareholders) for the three months ended September 30, 2020. Preliminary earnings for the nine months ended September 30, 2021, were $4.32 per diluted common share ($59.3 million available to common shareholders) compared to $2.93 per diluted common share ($41.5 million available to common shareholders) for the nine months ended September 30, 2020. For the quarter ended September 30, 2021, annualized return on average common equity was 12.82%, annualized return on average assets was 1.47%, and annualized net interest margin was 3.36%, compared to 8.48%, 0.98% and 3.36%, respectively, for the quarter ended September 30, 2020. For the nine months ended September 30, 2021, annualized return on average common equity was 12.61%, return on average assets was 1.43%, and annualized net interest margin was 3.37%, compared to 8.94%, 1.05% and 3.52%, respectively, for the nine months ended September 30, 2020.     Great Southern President and CEO Joseph W. Turner commented, "We are pleased with our third quarter earnings and continued strong financial position, which reflects our associates' ongoing commitment to take care of our customers in this uncertain health and economic environment. While overall economic conditions continue to show signs of improvement, uncertainty remains regarding the timing and magnitude of the recovery. In the third quarter of 2021, we earned $20.4 million ($1.49 per diluted common share), compared to $13.5 million ($0.96 per diluted common share) for the same period in 2020. Increased earnings were driven by a negative credit loss provision for our funded loan portfolio; higher net interest income, primarily driven by reduced deposit costs and PPP loan net deferred fee income recognition; and increased non-interest income, mainly related to point-of-sale debit card and ATM fees. Importantly, our pre-provision net revenue continues to be strong. As noted above, we recognized significant deferred fee income related to repaid PPP loans in this third quarter, and we expect that we will recognize a significant portion of the remaining PPP fee income in the fourth quarter of 2021. Earnings performance ratios were solid, with an annualized return on average assets of 1.47%, annualized return on average equity of 12.82%, and efficiency ratio of 57.27%. While our net interest margin has been somewhat pressured by increased deposits and resulting changes in asset mix, net interest income was $133.7 million in the first nine months of 2021, up from $132.6 million in the same timeframe of 2020. "Thus far in 2021, loan production and activity in our markets has been quite vigorous, but loan repayments, including customers refinancing or selling stabilized projects that collateralize loans or completing the process of debt forgiveness for PPP loans, have created significant headwinds. Outstanding loan totals have decreased $271 million compared to outstanding loans at December 31, 2020, with $222 million of this decrease in our multi-family loans category. Our pipeline of loan commitments and unfunded loans remains strong and increased by about $100 million from the end of the second quarter of 2021. This type of lending environment can be a dangerous time for banks. Like credit cycles in the past, we recognize the current short-term growth challenges and won't stretch our credit structure discipline for the sake of loan growth. We manage for the long-term, and understand that we will have periodic ebbs in our loan growth." Turner added, "Credit quality metrics remained excellent during the third quarter. For the first nine months of 2021, net charge-offs were $9,000. At September 30, 2021, excluding FDIC-assisted acquired assets, non-performing assets were $5.2 million, a decrease of $325,000 from June 30, 2021. Non-performing assets to period-end assets were 0.10% at the end of the third quarter. Pandemic-related loan modifications totaled $40 million at the end of September 2021, down from $92 million at the end of June 2021 and $251 million at December 31, 2020. "With our strong capital position and in our effort to enhance long-term shareholder value, the Company repurchased approximately 307,000 shares at an average price of $53.13 during the third quarter of 2021. Year-to-date through September 30, 2021, stock repurchases totaled approximately 449,000 shares at an average price of $52.89. We currently have about 485,000 shares remaining in our existing stock repurchase authorization. Additionally, in August 2021, we completed our previously announced redemption of $75 million of subordinated notes."    COVID-19 Impact to Our Business and Response Great Southern is actively monitoring and responding to the effects of the COVID-19 pandemic, including the administration of vaccines in our local markets. As always, the health, safety and well-being of our customers, associates and communities, while maintaining uninterrupted service, are the Company's top priorities. Centers for Disease Control and Prevention (CDC) guidelines, as well as directives from federal, state and local officials, are being closely followed to make informed operational decisions. The Company continues to work diligently with its nearly 1,200 associates to enforce the most current health, hygiene and social distancing practices. Teams in nearly every operational department have been split, with part of each team working at an off-site disaster recovery facility to promote social distancing and to avoid service disruptions. To date, there have been no service disruptions or reductions in staffing. With the advent of COVID-19 vaccinations in the Company's markets, plans are being considered to allow associates working from home or other sites to return to their normal workplace beginning in the fourth quarter of 2021, dependent on health and safety conditions. As always, customers can conduct their banking business using the banking center network, online and mobile banking services, ATMs, Telephone Banking, and online account opening services. As health conditions in local markets dictate, Great Southern banking center lobbies are open following social distancing and health protocols. Great Southern continues to work with customers experiencing hardships caused by the pandemic. As a resource to customers, a COVID-19 information center continues to be available on the Company's website, www.GreatSouthernBank.com. General information about the Company's pandemic response, how to receive assistance, and how to avoid COVID-19 scams and fraud are included. Paycheck Protection Program Loans Great Southern has actively participated in the PPP through the SBA. The PPP has been met with very high demand throughout the country, resulting in a second round of funding in 2021 through an amendment to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In the first round of the PPP, we originated approximately 1,600 PPP loans, totaling approximately $121 million. As of September 30, 2021, full forgiveness proceeds have been received from the SBA for almost all of these PPP loans. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act authorized the reopening of the PPP for eligible first-draw and second-draw borrowers which began on January 19, 2021, and had an original expiration date of March 31, 2021. On March 30, 2021, the PPP Extension Act of 2021 was signed, extending the PPP an additional two months to May 31, 2021, along with an additional 30-day period for the SBA to process applications that were still pending as of May 31, 2021. In the second round of the PPP, we funded approximately 1,650 PPP loans, totaling approximately $58 million. As of October 11, 2021, full forgiveness proceeds have been received from the SBA for 829 of these PPP loans, totaling approximately $26 million. Great Southern receives fees from the SBA for originating PPP loans based on the amount of each loan. At September 30, 2021, remaining net deferred fees related to PPP loans totaled $2.1 million. The fees, net of origination costs, are deferred in accordance with standard accounting practices and will be accreted to interest income on loans over the contractual life of each loan. These loans generally have a contractual maturity of two years from origination date, but may be repaid or forgiven (by the SBA) sooner. If these loans are repaid or forgiven prior to their contractual maturity date, the remaining deferred fee for such loans will be accreted to interest income immediately. We expect a significant portion of these remaining net deferred fees will accrete to interest income during the remainder of 2021, with little of this income being recognized in 2022. In the three and nine months ended September 30, 2021, Great Southern recorded approximately $1.6 million and $3.9 million, respectively, of net deferred fees in interest income on PPP loans. Loan Modifications At September 30, 2021, we had remaining eight modified commercial loans with an aggregate principal balance outstanding of $38 million and 16 modified consumer and mortgage loans with an aggregate principal balance outstanding of $2 million. These balances have decreased from $233 million and $18 million, respectively, for these loan categories at December 31, 2020. The loan modifications are within the guidance provided by the CARES Act, the federal banking regulatory agencies, the Securities and Exchange Commission and the Financial Accounting Standards Board (FASB); therefore, they are not considered troubled debt restructurings. At September 30, 2021, the largest total modified loans by collateral type were in the following categories: healthcare - $12 million; hotel/motel - $11 million; retail - $8 million; office - $7 million. A portion of the loans modified at September 30, 2021, may be further modified, and new loans may be modified, within the guidance provided by the CARES Act (and subsequent legislation enacted in December 2020), the federal banking regulatory agencies, the SEC and the FASB if a more severe or lengthier deterioration in economic conditions occurs in future periods. Selected Financial Data: (In thousands, except per share data)   Three Months EndedSeptember 30,   Nine Months EndedSeptember 30,       2021     2020     2021     2020 Net interest income   $ 44,923   $ 44,168   $ 133,695   $ 132,561 Provision (credit) for credit losses on loans and unfunded commitments     (2,357 )   4,500     (4,039 )   14,371 Non-interest income     9,798     9,466     29,119     25,093 Non-interest expense     31,339     31,988     91,852     92,151 Provision for income taxes     5,375     3,692     15,655     9,607 Net income and net income available to common shareholders   $ 20,364   $ 13,454   $ 59,346   $ 41,525                           Earnings per diluted common share   $ 1.49   $ 0.96   $ 4.32   $ 2.93 NET INTEREST INCOME Net interest income for the third quarter of 2021 increased $755,000 to $44.9 million, compared to $44.2 million for the third quarter of 2020.   Net interest margin was 3.36% in both the third quarter of 2021 and the third quarter of 2020. For the three months ended September 30, 2021, net interest margin increased one basis point compared to the net interest margin of 3.35% in the three months ended June 30, 2021. In comparing the 2021 and 2020 third quarter periods, the average yield on loans decreased 11 basis points while the average rate on interest-bearing deposits declined 46 basis points. The margin compression resulted from changes in the asset mix, with average cash equivalents increasing $333 million and average investment securities increasing $4 million, while average loans decreased $266 million. Without this additional liquidity, the net interest margin would have been 23 basis points higher. In addition, the yield accretion on FDIC-assisted acquired loans was seven basis points less during the third quarter of 2021 compared to the third quarter of 2020. The average interest rate spread was 3.22% for the three months ended September 30, 2021, compared to 3.12% for the three months ended September 30, 2020 and 3.18% for the three months ended June 30, 2021. Net interest income for the nine months ended September 30, 2021 increased $1.1 million to $133.7 million compared to $132.6 million for the nine months ended September 30, 2020. Net interest margin was 3.37% in the nine months ended September 30, 2021, compared to 3.52% in the same period of 2020, a decrease of 15 basis points. The decrease in the margin between the nine months ended September 30, 2021 and the nine months ended September 30, 2020, was primarily due to the same factors as discussed above for the comparison of the current year third quarter margin to the prior year third quarter margin, with average cash equivalents increasing $286 million and average investment securities increasing $20 million. Without this additional liquidity, the net interest margin would have been 21 basis points higher in the nine months ended September 30, 2021. In addition, the yield accretion on FDIC-assisted acquired loans was nine basis points lower during the first nine months of 2021 compared to the same period in 2020. The average interest rate spread was 3.20% for the nine months ended September 30, 2021, compared to 3.24% for the nine months ended September 30, 2020. Also, the increase in interest cost from the subordinated notes issued in June 2020, net of the decrease in interest cost from the redemption of the subordinated notes issued in 2016, resulted in a decrease in net interest income of $1.4 million in the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. Additionally, the Company's net interest income included accretion of net deferred fees related to PPP loans originated in 2020 and 2021. The amount of net deferred fees recognized in interest income was $1.6 million in the three months ended September 30, 2021 compared to $1.1 million in the three months ended June 30, 2021 and $1.2 million in the three months ended March 31, 2021. The amount of net deferred fees recognized in interest income was $3.9 million and $1.0 million in the nine months ended September 30, 2021 and 2020, respectively. The amount of net deferred fees on PPP loans in the 2021 nine month period was greater than the 2020 nine month period due to loan forgiveness and repayments being received only during the three month period ended September 30, 2020 compared to the entire nine month period during 2021. In October 2018, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap was $400 million with a contractual termination date in October 2025. As previously disclosed by the Company, on March 2, 2020, the Company and its swap counterparty mutually agreed to terminate this swap, effective immediately. The Company received a payment of $45.9 million, including accrued but unpaid interest, from its swap counterparty as a result of this termination. This $45.9 million, less the accrued to date interest portion and net of deferred income taxes, is reflected in the Company's stockholders' equity as Accumulated Other Comprehensive Income and is being accreted to interest income on loans monthly through the original contractual termination date of October 6, 2025. The Company recorded interest income related to the swap of $2.0 million and $2.0 million in the three months ended September 30, 2021 and 2020, respectively. The Company recorded interest income related to the swap of $6.1 million and $5.6 million in the nine months ended September 30, 2021 and 2020, respectively. The Company currently expects to have a sufficient amount of eligible variable rate loans to continue to accrete this interest income ratably in future periods. If this expectation changes and the amount of eligible variable rate loans decreases significantly, the Company may be required to recognize this interest income more rapidly. Previously, the Company's net interest income and margin have been positively impacted by significant additional yield accretion recognized in conjunction with updated estimates of the fair value of the loan pools acquired in its FDIC-assisted transactions. For each of the loan portfolios acquired, the cash flow estimates increased during the prior periods, based on payment histories and reduced credit loss expectations. This resulted in increased income that has been spread, on a level-yield basis, over the remaining expected lives of the loan pools (and, therefore, has decreased over time). Because the balance of these adjustments will be recognized generally over the remaining lives of the loan pools, they will impact future periods as well. The remaining accretable yield adjustment that will affect interest income was $606,000 at September 30, 2021. Of the remaining adjustments affecting interest income, we expect to recognize $178,000 of interest income during the remainder of 2021. As previously noted, we adopted the new accounting standard related to accounting for credit losses as of January 1, 2021. With the adoption of this standard, there is no further reclassification of discounts from non-accretable to accretable subsequent to December 31, 2020. All adjustments made prior to December 31, 2020 will continue to be accreted to interest income. The impact to income of adjustments on all portfolios acquired in FDIC-assisted transactions for the reporting periods presented is shown below:   Three Months Ended   September 30, 2021   September 30, 2020                   (In thousands, except basis points data) Impact on net interest income/net interest margin (in basis points) $ 279 2 bps   $ 1,229 9 bps   Nine Months Ended   September 30, 2021   September 30, 2020                   (In thousands, except basis points data) Impact on net interest income/net interest margin (in basis points) $ 1,398 3 bps   $ 4,632 12 bps     For the three months ended September 30, 2021, core net interest margin, which excludes the impact of the additional yield accretion, was 3.34%. This was an increase of seven basis points when compared to the core net interest margin of 3.27% for the three months ended September 30, 2020. For the nine months ended September 30, 2021, core net interest margin was also 3.34%. This was a decrease of six basis points when compared to the core net interest margin of 3.40% for the nine months ended September 30, 2020. For additional information on net interest income components, see the "Average Balances, Interest Rates and Yields" tables in this release. NON-INTEREST INCOME For the quarter ended September 30, 2021, non-interest income increased $332,000 to $9.8 million when compared to the quarter ended September 30, 2020, primarily as a result of the following items: Point-of-sale and ATM fees: Point-of-sale and ATM fees increased $657,000 compared to the prior year period. This increase was primarily due to a reduction in customer usage in the third quarter of 2020 as the COVID-19 pandemic caused many businesses to close and large portions of the U. S. population were required to stay at home for a period of time. In the quarter ended September 30, 2021, debit card and ATM usage by customers was back to normal levels, and in some cases, increased levels of activity. Overdraft and Insufficient Funds Fees: Overdraft and insufficient funds fees increased $210,000 compared to the prior year period. This increase was primarily due to reduced fees in the 2020 period. This was due to both a reduction in usage by customers and a decision near the end of the first quarter of 2020 to waive (through August 31, 2020) certain fees for customers in response to the COVID-19 pandemic. The effects of that decision were felt during the second and third quarters of 2020. Net gains on loan sales: Net gains on loan sales decreased $537,000 compared to the prior year quarter. The decrease was due to a decrease in originations of fixed-rate single-family mortgage loans during the 2021 period compared to the 2020 period. Fixed rate single-family mortgage loans originated are generally subsequently sold in the secondary market. These loan originations increased substantially when market interest rates decreased to historically low levels in 2020. As a result of the significant volume of refinance activity in recent periods, and as market interest rates have moved a bit higher in the third quarter of 2021, mortgage refinance volume has decreased and loan originations and related gains on sales of these loans have returned to levels more similar to historic averages. For the nine months ended September 30, 2021, non-interest income increased $4.0 million to $29.1 million when compared to the nine months ended September 30, 2020, primarily as a result of the following items: Net gains on loan sales: Net gains on loan sales increased $2.3 million compared to the prior year period. The increase was due to an increase in originations of fixed-rate single-family mortgage loans during the 2021 period compared to the 2020 period. As noted above, these loan originations increased substantially when market interest rates decreased to historically low levels in the latter half of 2020 and the first half of 2021. Point-of-sale and ATM fees: Point-of-sale and ATM fees increased $2.2 million compared to the prior year period. This increase was due to the same conditions as noted above. Gain (loss) on derivative interest rate products: In the 2021 period, the Company recognized a gain of $340,000 on the change in fair value of its back-to-back interest rate swaps related to commercial loans. In the 2020 period, the Company recognized a loss of $424,000 on the change in fair value of its back-to-back interest rate swaps related to commercial loans. Generally, as market interest rates increase, this creates a net increase in the fair value of these instruments. This is a non-cash item as there was no required settlement of this amount between the Company and its swap counterparties. Other income: Other income decreased $1.4 million compared to the prior year period. In the 2020 period, the Company recognized approximately $1.2 million of fee income related to newly-originated interest rate swaps in the Company's back-to-back swap program with loan customers and swap counterparties, with fewer of these transactions and related fee income generated in the current period. The Company also recognized approximately $541,000 in income related to the exit of certain tax credit partnerships during the nine months ended September 30, 2020, with no similar activity during the 2021 period. NON-INTEREST EXPENSE For the quarter ended September 30, 2021, non-interest expense decreased $649,000 to $31.3 million when compared to the quarter ended September 30, 2020, primarily as a result of the following item: Salaries and employee benefits: Salaries and employee benefits decreased $867,000 from the prior year quarter. In the 2020 period, the Company paid a special cash bonus to all employees totaling $1.1 million in response to the ongoing impacts of the COVID-19 pandemic. Such bonus was not repeated in the third quarter of 2021. For the nine months ended September 30, 2021, non-interest expense decreased $299,000 to $91.9 million when compared to the nine months ended September 30, 2020, primarily as a result of the following items: Salaries and employee benefits: Salaries and employee benefits decreased $812,000 in the nine months ended September 30, 2021 compared to the prior year period. In 2020, the Company approved two special cash bonuses to all employees totaling $2.2 million in response to the COVID-19 pandemic. Such bonuses were not repeated in the nine months ended September 30, 2021. Expense on other real estate owned and repossessions: Expense on other real estate owned and repossessions decreased $473,000 compared to the prior year period primarily due to sales of most foreclosed assets and a smaller amount of repossessed automobiles in the current period, plus higher valuation write-downs of certain foreclosed assets during the prior year period. During the 2020 period, sales and valuation write-downs of certain foreclosed assets totaled a net expense of $136,000, while sales and valuation write-downs in the 2021 period totaled a net gain of $29,000. Insurance: Insurance expense increased $626,000 compared to the prior year period. This increase was primarily due to an increase in FDIC deposit insurance premiums. In 2020, the Company had a credit with the FDIC for a portion of premiums previously paid to the deposit insurance fund. The remaining deposit insurance fund credit was utilized in 2020 in addition to $522,000 in premiums being due for the nine months ended September 30, 2020, while the premium expense was $1.1 million in the nine months ended September 30, 2021. The Company's efficiency ratio for the quarter ended September 30, 2021, was 57.27% compared to 59.64% for the same quarter in 2020. The efficiency ratio for the nine months ended September 30, 2021, was 56.42% compared to 58.45% for the same period in 2020. In the three- and nine-month periods ended September 30, 2021, the improved efficiency ratio was due to an increase in net interest income, an increase in non-interest income, and a decrease in non-interest expense. The Company's ratio of non-interest expense to average assets was 2.27% and 2.22% for the three and nine months ended September 30, 2021, respectively, compared to 2.34% and 2.33% for the three and nine months ended September 30, 2020. Average assets for the three months ended September 30, 2021, increased $62.8 million, or 1.1%, compared to the three months ended September 30, 2020, primarily due to increases in investment securities and interest bearing cash equivalents, offset by a decrease in net loans receivable. Average assets for the nine months ended September 30, 2021, increased $249.3 million, or 4.7%, compared to the nine months ended September 30, 2020, primarily due to increases in investment securities and interest bearing cash equivalents, offset by a decrease in net loans receivable. INCOME TAXES For the three months ended September 30, 2021 and 2020, the Company's effective tax rate was 20.9% and 21.5%, respectively. For the nine months ended September 30, 2021 and 2020, the Company's effective tax rate was 20.9% and 18.8%, respectively. Except for the three months ended September 30, 2020, these effective rates were at or below the statutory federal tax rate of 21%, due primarily to the utilization of certain investment tax credits and to tax-exempt investments and tax-exempt loans, which reduced the Company's effective tax rate. The Company's effective tax rate may fluctuate in future periods as it is impacted by the level and timing of the Company's utilization of tax credits, the level of tax-exempt investments and loans, the amount of taxable income in various state jurisdictions and the overall level of pre-tax income. In 2020, the Company's state income tax expenses were higher than normal in various states due to the recognition of income for tax purposes related to the gain recognized on the termination of the interest rate swap. State tax expense estimates have evolved throughout 2021 as taxable income and apportionment between states have been analyzed. The Company's effective income tax rate is currently generally expected to remain at or below the statutory federal tax rate due primarily to the factors noted above. The Company currently expects its effective tax rate (combined federal and state) will be approximately 20.0% to 21.0% in future periods. CAPITAL As of September 30, 2021, total stockholders' equity and common stockholders' equity were each $624.6 million (11.5% of total assets), equivalent to a book value of $46.73 per common share. Total stockholders' equity and common stockholders' equity at December 31, 2020, were each $629.7 million (11.4% of total assets), equivalent to a book value of $45.79 per common share. At September 30, 2021, the Company's tangible common equity to tangible assets ratio was 11.4%, compared to 11.3% at December 31, 2020. Included in stockholders' equity at September 30, 2021 and December 31, 2020, were unrealized gains (net of taxes) on the Company's available-for-sale investment securities totaling $12.0 million and $23.3 million, respectively. This decrease in unrealized gains primarily resulted from increasing market interest rates during 2021, which decreased the fair value of investment securities. Also included in stockholders' equity at September 30, 2021, were realized gains (net of taxes) on the Company's cash flow hedge (interest rate swap), which was terminated in March 2020, totaling $25.2 million. This amount, plus associated deferred taxes, is expected to be accreted to interest income over the remaining term of the original interest rate swap contract, which was to end in October 2025. At September 30, 2021, the remaining pre-tax amount to be recorded in interest income was $32.6 million. The net effect on total stockholders' equity over time will be no impact as the reduction of this realized gain will be offset by an increase in retained earnings (as the interest income flows through pre-tax income). On a preliminary basis, as of September 30, 2021, the Company's Tier 1 Leverage Ratio was 11.0%, Common Equity Tier 1 Capital Ratio was 13.4%, Tier 1 Capital Ratio was 14.0%, and Total Capital Ratio was 16.9%. On September 30, 2021, and on a preliminary basis, the Bank's Tier 1 Leverage Ratio was 11.7%, Common Equity Tier 1 Capital Ratio was 14.7%, Tier 1 Capital Ratio was 14.7%, and Total Capital Ratio was 15.9%. On August 15, 2021, the Company redeemed all of the Company's outstanding 5.25% fixed-to-floating rate subordinated notes due August 15, 2026, with an aggregate principal balance of $75 million. The total redemption price was 100% of the aggregate principal balance of the subordinated notes plus accrued and unpaid interest. The Company utilized excess cash on hand for the redemption payment. During the three months ended September 30, 2021, the Company repurchased 307,059 shares of its common stock at an average price of $53.13 and declared a regular quarterly cash dividend of $0.36 per common share, which reduced stockholders' equity. During the nine months ended September 30, 2021, the Company repurchased 449,438 shares of its common stock at an average price of $52.89 and declared regular cash dividends of $1.04 per common share.   LOANS Total gross loans (including the undisbursed portion of loans), excluding FDIC-assisted acquired loans and mortgage loans held for sale, decreased $210.0 million, or 4.1%, from $5.13 billion at December 31, 2020, to $4.92 billion at September 30, 2021. This decrease was primarily in other residential (multi-family) loans ($233 million decrease), commercial business loans ($77 million decrease), commercial real estate loans ($45 million decrease) and consumer auto loans ($31 million decrease). The decrease in commercial business loans was primarily the result of repayment of PPP loans and no new PPP loan originations after June 30, 2021. These decreases were offset by increases in construction loans ($135 million increase) and single family real estate loans ($44 million increase). The FDIC-assisted acquired loan portfolios had net decreases totaling $4.9 million and $19.1 million during the three and nine months ended September 30, 2021. Outstanding net loan receivable balances decreased $271.1 million, from $4.30 billion at December 31, 2020 to $4.03 billion at September 30, 2021. For further information about the Company's loan portfolio, please see the quarterly loan portfolio presentation available on the Company's Investor Relations website under "Presentations." Loan commitments and the unfunded portion of loans at the dates indicated were as follows (in thousands):     September 30, 2021   June30, 2021   March31, 2021   December31, 2020   December31, 2019   December31, 2018 Closed non-construction loans with unused available lines                         Secured by real estate (one- to four-family) $ 173,758 $ 173,644 $ 170,353 $ 164,480 $ 155,831 $ 150,948 Secured by real estate (not one- to four-family)   23,870   20,269   25,754   22,273   19,512   11,063 Not secured by real estate - commercial business   76,885   75,476   71,132   77,411   83,782   87,480                           Closed construction loans with unused available lines                         Secured by real estate (one-to four-family)   68,441   63,471   52,653   42,162   48,213   37,162 Secured by real estate (not one-to four-family)   866,185   847,486   812,111   823,106   798,810   906,006                           Loan commitments not closed                         Secured by real estate (one-to four-family)   62,096   66,037   93,229   85,917   69,295   24,253 Secured by real estate (not one-to four-family)   126,815   55,216   50,883   45,860   92,434   104,871 Not secured by real estate - commercial business   3,000   —   3,119   699   —   405                             $ 1,401,050 $ 1,301,599 $ 1,279,234 $ 1,261,908 $ 1,267,877 $ 1,322,188 PROVISION FOR CREDIT LOSSES AND ALLOWANCE FOR CREDIT LOSSES The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2021. The CECL methodology replaces the incurred loss methodology with a lifetime "expected credit loss" measurement objective for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the time the financial asset is originated or acquired. This standard requires the consideration of historical loss experience and current conditions adjusted for reasonable and supportable economic forecasts. Our 2020 financial statements were prepared under the incurred loss methodology standard. Upon adoption of the CECL accounting standard, we increased the balance of our allowance for credit losses related to outstanding loans by $11.6 million and created a liability for potential losses related to the unfunded portion of our loans and commitments of approximately $8.7 million. The after-tax effect reduced our retained earnings by approximately $14.2 million. The adjustment was based upon the Company's analysis of then-current conditions, assumptions and economic forecasts at January 1, 2021. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, commercial real estate price index, housing price index and national retail sales index. Worsening economic conditions from the COVID-19 pandemic, higher inflation or interest rates, or other factors may lead to increased losses in the portfolio and/or requirements for an increase in provision expense. Management maintains various controls in an attempt to limit future losses, such as a watch list of problem loans and potential problem loans, documented loan administration policies and loan review staff to review the quality and anticipated collectability of the portfolio. Additional procedures provide for frequent management review of the loan portfolio based on loan size, loan type, delinquencies, financial analysis, on-going correspondence with borrowers and problem loan work-outs. Management determines which loans are potentially uncollectible, or represent a greater risk of loss, and makes additional provisions to expense, if necessary, to maintain the allowance at a satisfactory level. During the quarter ended September 30, 2021, the Company recorded a negative provision expense of $3.0 million on its portfolio of outstanding loans, compared to a $4.5 million provision expense recorded for the quarter ended September 30, 2020. During the nine months ended September 30, 2021, the Company recorded a negative provision expense of $3.7 million on its portfolio of outstanding loans, compared to a $14.4 million provision expense recorded for the nine months ended September 30, 2020. Total net charge-offs (recoveries) were $(27,000) and $63,000 for the three months ended September 30, 2021 and 2020, respectively. Total net charge-offs were $9,000 and $427,000 for the nine months ended September 30, 2021 and 2020, respectively. The provision for losses on unfunded commitments for the three months ended September 30, 2021 was $643,000 compared to a negative provision expense of $339,000 for the nine months ended September 30, 2021. The level and mix of unfunded commitments resulted in a decrease in the required reserve for such potential losses in the nine month period. General market conditions and unique circumstances related to specific industries and individual projects contributed to the level of provisions and charge-offs. In 2020, due to the COVID-19 pandemic and its effects on the overall economy and unemployment, the Company increased its provision for credit losses and increased its allowance for credit losses, even though actual realized net charge-offs were very low. The Bank's allowance for credit losses as a percentage of total loans was 1.56%, 1.32% and 1.56% at September 30, 2021, December 31, 2020 and June 30, 2021, respectively. Prior to January 1, 2021, the ratio excluded the FDIC-assisted acquired loans. Management considers the allowance for credit losses adequate to cover losses inherent in the Bank's loan portfolio at September 30, 2021, based on recent reviews of the Bank's loan portfolio and current economic conditions. If challenging economic conditions were to last longer than anticipated or deteriorate further or management's assessment of the loan portfolio were to change, additional loan loss provisions could be required, thereby adversely affecting the Company's future results of operations and financial condition. ASSET QUALITY Prior to adoption of the CECL accounting standard on January 1, 2021, FDIC-assisted acquired non-performing assets, including foreclosed assets and potential problem loans, were not included in the totals or in the discussion of non-performing loans, potential problem loans and foreclosed assets. These assets were initially recorded at their estimated fair values as of their acquisition dates and accounted for in pools. The loan pools were analyzed rather than the individual loans. The performance of the loan pools acquired in each of the Company's five FDIC-assisted transactions has been better than expectations as of the acquisition dates. In the tables below, FDIC-assisted acquired assets are included in their particular collateral categories and then the total FDIC-assisted acquired assets are subtracted from the total balances. At September 30, 2021, non-performing assets, excluding all FDIC-assisted acquired assets, were $5.2 million, an increase of $1.4 million from $3.8 million at December 31, 2020, and a decrease of $325,000 from $5.5 million at June 30, 2021. Non-performing assets, excluding all FDIC-assisted acquired assets, as a percentage of total assets were 0.10% at September 30, 2021, compared to 0.07% at December 31, 2020 and 0.10% at June 30, 2021. As a result of changes in balances and composition of the loan portfolio, changes in economic and market conditions and other factors specific to a borrower's circumstances, the level of non-performing assets will fluctuate. Compared to December 31, 2020 and June 30, 2021, and excluding all FDIC-assisted acquired loans, non-performing loans increased $2.0 million and decreased $343,000, respectively, to $5.0 million at September 30, 2021, and foreclosed and repossessed assets decreased $625,000 and increased $18,000, respectively, to $152,000 at September 30, 2021. Including all FDIC-assisted acquired loans, when compared to December 31, 2020 and June 30, 2021, non-performing loans decreased $171,000 and decreased $636,000, respectively, to $7.9 million at September 30, 2021, and foreclosed and repossessed assets decreased $266,000 and increased $208,000, respectively, to $957,000 at September 30, 2021. Non-performing one- to four-family residential loans comprised $3.0 million, or 43.0%, of the total non-performing loans at September 30, 2021, a decrease of $76,000 from June 30, 2021. The majority of the non-performing FDIC-assisted acquired loans are in the one- to four-family category. Non-performing commercial real estate loans comprised $2.6 million, or 37.2%, of the total non-performing loans at September 30, 2021, a decrease of $710,000 from June 30, 2021. Non-performing consumer loans comprised $799,000, or 11.5%, of the total non-performing loans at September 30, 2021, a decrease of $70,000 from June 30, 2021. Non-performing construction and land development loans comprised $468,000, or 6.7%, of the total non-performing loans at both September 30, 2021 and June 30, 2021. Non-performing commercial business loans comprised $111,000, or 1.6%, of the total non-performing loans at September 30, 2021, an increase of $12,000 from June 30, 2021. Compared to December 31, 2020 and June 30, 2021, and excluding all FDIC-assisted acquired loans, potential problem loans decreased $1.6 million and $566,000, respectively, to $2.8 million at September 30, 2021. Due to the impact on economic conditions from COVID-19, it is possible that we could experience an increase in potential problem loans in the remainder of 2021. As noted, we experienced an increased level of loan modifications in late March through June 2020; however, total loan modifications were much lower at December 31, 2020, and decreased further at September 30, 2021. In accordance with the CARES Act and guidance from the banking regulatory agencies, we made certain short-term modifications to loan terms to help our customers navigate through the current pandemic situation. Although loan modifications were made, they did not automatically result in these loans being classified as troubled debt restructurings, potential problem loans or non-performing loans. If more severe or lengthier negative impacts of the COVID-19 pandemic occur or the effects of the SBA loan programs and other loan and stimulus programs do not enable companies and individuals to completely recover financially, this could result in additional and/or longer-term modifications, which may be deemed to be troubled debt restructurings, additional potential problem loans and/or additional non-performing loans. Further actions on our part, including additions to the allowance for credit losses, could result. Activity in the non-performing loans categories during the quarter ended September 30, 2021, was as follows:     BeginningBalance,July 1     Additionsto Non-Performing     Removedfrom Non-Performing     Transfersto PotentialProblemLoans     Transfers toForeclosedAssets andRepossessions     Charge-Offs     Payments     EndingBalance,September 30                                                             (In thousands)       One- to four-family construction $ —   $ —   $ —     $ —   $ —     $ —     $ —     $ — Subdivision construction   —     —     —       —     —       —       —       — Land development   468     —     —       —     —       —       —       468 Commercial construction   —     —     —       —     —       —       —       — One- to four-family residential   3,081     408     (347 )     —     —       (9 )     (128 )     3,005 Other residential   —     —     —       —     —       —       —       — Commercial real estate   3,308     —     —       —     (191 )     —       (519 )     2,598 Commercial business   99     20     —       —     —       —       (8 )     111 Consumer   869     60     (2 )     —     (8 )     (19 )     (101 )     799 Total non-performing loans   7,825     488     (349 )     —     (199 )     (28 )     (756 )     6,981 Less: FDIC-assisted acquired loans   2,439     —     (191 )     —     (191 )     —       (119 )     1,938                                                 Total non-performing loans net of FDIC-assisted acquired loans $ 5,386   $ 488   $ (158 )   $ —   $ (8 )   $ (28 )   $ (637 )   $ 5,043 At September 30, 2021, the non-performing one- to four-family residential category included 45 loans, two of which were added during the current quarter. The largest relationship in the category was added during the current quarter and totaled $351,000, or 11.7% of the total category. The non-performing commercial real estate category included three loans, none of which were added during the current quarter. The largest relationship in the category, which totaled $2.4 million, or 90.7% of the total category, was added during the first quarter of 2021 and is collateralized by an office building in the Chicago, Ill., area. The non-performing consumer category included 38 loans, six of which were added during the current quarter. The non-performing land development category consisted of one loan added during the first quarter of 2021, which totaled $468,000 and is collateralized by unimproved zoned vacant ground in southern Illinois. Activity in the potential problem loans category during the quarter ended September 30, 2021, was as follows:     BeginningBalance,July 1     Additions toPotentialProblem     RemovedfromPotentialProblem     Transfersto Non-Performing     Transfers toForeclosedAssets andRepossessions     Charge-Offs     Payments     EndingBalance,September 30     (In thousands)       One- to four-family construction $ —   $ —   $ —     $ —   $ —     $ —     $ —     $ — Subdivision construction   17     —     —       —     —       —       (1 )     16 Land development   —     —     —       —     —       —       —       — Commercial construction   —     —     —       —     —       —       —       — One- to four-family residential   1,805     —     (314 )     —     —       —       (30 )     1,461 Other residential   —     —     —       —     —       —       —       — Commercial real estate   2,477     —     (516 )     —     —       —       (20 )     1,941 Commercial business   —     —     —       —     —       —       —       — Consumer   396     61     —       —     (40 )     (6 )     (34 )     377 Total potential problem loans   4,695     61     (830 )     —     (40 )     (6 )     (85 )     3,795 Less: FDIC-assisted acquired loans   1,357     —     (314 )     —     —       —       (20 )     1,023                                                 Total potential problem loans net of FDIC-assisted acquired loans $ 3,338   $ 61   $ (516 )   $ —   $ (40 )   $ (6 )   $ (65 )  .....»»

Category: earningsSource: benzingaOct 20th, 2021

Former city housing boss Alicia Glen raises $108M to build affordable homes

Former deputy mayor in charge of New York housing and economic development, Alicia Glenn has raised a $108 million housing investment fund. Glenn launched MSquared last year to build middle-income housing in smaller U.S. cities. Its Equitable Housing Solutions Fund I (EHSF) is its first capital raise for investment in... The post Former city housing boss Alicia Glen raises $108M to build affordable homes appeared first on Real Estate Weekly. Former deputy mayor in charge of New York housing and economic development, Alicia Glenn has raised a $108 million housing investment fund. Glenn launched MSquared last year to build middle-income housing in smaller U.S. cities. Its Equitable Housing Solutions Fund I (EHSF) is its first capital raise for investment in mixed-income projects in cities nationwide, with a focus on women and minority-owned development teams. EHSF raised capital through a combination of private and non-profit partners including Citi Community Capital, the Urban Investment Group within Goldman Sachs Asset Management, Wells Fargo and the Community Preservation Corporation. MSquared has already launched its second fund, MSquared Impact Partners Fund I, to raise an additional $200 million from non-institutional investors to invest in similar projects across the country. ALICIA GLEN “Women and minority-led development firms have encountered unacceptably high barriers to entry for way too long and we are focused on disrupting the status quo through our fund business,” said Glen, Founder & Managing Principal of MSquared. “Demand for high-quality affordable and mixed-income housing far outpaces supply in growing markets across the country. It’s up to the real estate industry to do better: to be more inclusive, to be more creative about driving affordability, and to promote sustainability in our built environment. We will continue to invest with partners who are mission aligned and now to offer non-institutional investors the opportunity to advance these goals.” Among the first ventures to benefit from the EHSF fund will be Crestview Village in Austin, Texas, where  MSquared plans to develop 335 mixed-income apartments, with sixty percent set aside as affordable for a range of incomes. The project will also include nine affordable townhomes for sale developed in partnership with Habitat for Humanity. Directly adjacent to Capital MetroRail’s Crestview Station, the project will have a new 4.7-acre public park and numerous community-oriented spaces, including an affordable childcare center, a healthcare and wellness center, artist studio and exhibition space, and two restaurants showcasing local food operators. Crestview Village (rendering top) is being developed in partnership with two other women- or minority led firms – O-SDA Industries and Saigebrook Development – and Austin based 3423 Holdings. MSquared and its partners were designated by the City of Austin and approved to develop the City owned site by the Austin City Council in August.  The post Former city housing boss Alicia Glen raises $108M to build affordable homes appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyOct 20th, 2021

RXR breaks ground for first South Bronx project

RXR Realty has broken ground for its inaugural South Bronx development, a future residential building located at 2413 Third Avenue. Situated next to the Third Avenue Bridge and minutes to the 6 train, the 27-story, 200-unit tower will designate 60 units as affordable apartments for middle income households. It will... The post RXR breaks ground for first South Bronx project appeared first on Real Estate Weekly. RXR Realty has broken ground for its inaugural South Bronx development, a future residential building located at 2413 Third Avenue. Situated next to the Third Avenue Bridge and minutes to the 6 train, the 27-story, 200-unit tower will designate 60 units as affordable apartments for middle income households. It will feature 81 on-site enclosed parking spaces and electric vehicle charging stations and 721 s/f of retail space. The project is slated for completion in 2023.  This summer, RXR and Bank of America closed on a $75.2 million construction loan to fund the development of 2413 Third Avenue. Rendering of the new tower “As the South Bronx continues to grow, it is crucial to see increased direct investment in affordable housing to support vibrant neighborhoods like Mott Haven. I am proud to celebrate the groundbreaking of over 60 affordable units for middle income households that will provide stability and opportunity for Bronx residents. I look forward to seeing continued investment in affordable housing in the South Bronx in order to lift up working families,” said Congressman Ritchie Torres, NY-15.  “We are thrilled to break ground today on our first entry into the Bronx market and celebrate the creation of 200 new apartments and retail space in the vibrant Mott Haven neighborhood. As the South Bronx’s population grows, RXR welcomes the opportunity to meet this demand and provide accessible, smartly designed and amenitized homes,” said Joanne Minieri, Senior Executive Vice President, Chief Operating Officer of Development and Construction, RXR Realty. “RXR is fully committed to working in partnership with the community to increase local hiring and activate the neighborhood through direct investment.” “We are excited to welcome RXR to the Bronx and to the thriving network of Chamber members who are investing in our neighborhoods to create new jobs and opportunities for community partnerships,” said Lisa Sorin, President of the Bronx Chamber of Commerce. Designed by CetraRuddy Architects, a the building will feature an open concept cafe and gallery space on the ground floor, a state-of-the-art fitness center, flexible common area, and electric vehicle charging stations. Units will be equipped with stainless steel appliances, white oak flooring, matte black iron fixtures and subway tiling. The 145,643 s/f development will also feature exterior amenity areas, including landscaped seating areas and lounges, rooftop grilling, dining areas and a gaming space. The tower is centrally located within walking distance of the 4/5/6 transit lines and one block from the Major Deegan Expressway.  “The building design is rooted in the traditions of the vibrant community of Mott Haven. A bold massing creates a sculpted presence that both engages the sky while opening up to pedestrian activity. Art is an integrated design element throughout the interior and exterior to enliven the street and the resident experience. Indoor/outdoor connectivity and integration with nature is an important element that helped form the project, creating gardens and varied outdoor spaces. Authenticity of materiality helps to create a welcoming structure that has the welcome of home,” said Nancy J. Ruddy and John Cetra of CetraRuddy Architecture. The post RXR breaks ground for first South Bronx project appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyOct 13th, 2021

Out-of-towner buys $89M FiDi development site; plans 400-unit apartment tower

North Carolina-based affordable housing developer Grubb Fund Management has acquired a 340,000 s/f FiDi development site for $89.15 million. The company – which builds “essential housing” for people earning between 60 and 140 percent of area median income (AMI) – has also gone to contract on a second site in... The post Out-of-towner buys $89M FiDi development site; plans 400-unit apartment tower appeared first on Real Estate Weekly. North Carolina-based affordable housing developer Grubb Fund Management has acquired a 340,000 s/f FiDi development site for $89.15 million. The company – which builds “essential housing” for people earning between 60 and 140 percent of area median income (AMI) – has also gone to contract on a second site in Queens. Grubb is planning to build two new properties under its Link ApartmentsSM flag which together will bring 700 units of middle-market housing to New York City. “Few places have been more impacted by the housing crisis in this country than the New York metropolitan area,” said Clay Grubb, CEO of Grubb Properties. “Our company is dedicated to providing quality rental options for those in the middle of the income spectrum. Link ApartmentsSM and essential housing provide a unique path forward to address New York’s housing crisis, as well as a compelling investment opportunity for investors in our funds.” 111 Washington Street The company has acquired 8 Carlisle (AKA 111 Washington Street) from The Ohebshalom family. It plans to build an approximately 50-story with 400 unit property with 22,000 s/f of ground floor retail. Grubb Properties plans to pursue the Affordable New York Housing Program for the development. Eric Anton at Marcus & Millichap brokered the sale on behalf of the seller. Situated two blocks south of the World Trade Center, the site (general rendering top) is one of the few as-of-right projects in a prime Manhattan location with no problematic tenancy issues, according to Anton. Pink Stone Capital, an LLC connected to Richard Ohebshalom, will serve as a partner in the new development. In Queens, Grubb is in contract to acquire 25-01 Queens Plaza North in Long Island City. It will be a 17-story Link ApartmentsSM community with 317 units, and 9,000 s/f of retail space. The building will include 30 percent affordable units at less than 130 percent of area median income and 70 percent market-rate units under the Affordable Housing New York Program. Daniel Kaplan and Elli Klapper of CBRE represented the seller. 25-01 Queens Plaza North site market in red Located in a Qualified Opportunity Zone, the Queens site is funded by Grubb’s Qualified Opportunity Fund program. The 8 Carlisle location is funded by Grubb’s flagship fund. Grubb Properties is looking at pursuing additional essential housing development opportunities in the New York City metropolitan area. The two communities mark the ongoing expansion of Grubb Properties’ nationally registered Link ApartmentsSM brand. There are currently nine Link Apartments communities in eight cities, totaling 2,262 multifamily units, with 15 additional communities under construction or announced. The communities offer an amenity-rich living experience to residents who want to live near transit, employment, and entertainment venues. The post Out-of-towner buys $89M FiDi development site; plans 400-unit apartment tower appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklySep 27th, 2021

HUD: $143M in Grants Will Support Multifamily Construction for Low-Income Seniors

The U.S. Department of Housing and Urban Development’s (HUD) Office of Multifamily Housing Programs recently announced that it has awarded $143 million in grants to non-profit organizations across the country to support the development of new affordable multifamily rental housing along with ongoing project rental assistance for very low-income seniors. The awards were made under […] The post HUD: $143M in Grants Will Support Multifamily Construction for Low-Income Seniors appeared first on RISMedia. The U.S. Department of Housing and Urban Development’s (HUD) Office of Multifamily Housing Programs recently announced that it has awarded $143 million in grants to non-profit organizations across the country to support the development of new affordable multifamily rental housing along with ongoing project rental assistance for very low-income seniors. The awards were made under HUD’s Section 202 Supportive Housing for the Elderly program and will help fund the construction and operation of 1,484 new deeply rent-assisted units for low- and very low-income seniors who will pay rent based on their income.  Several of the grantees will be creating mixed-income communities, building 701 additional affordable and market-rate units as part of these funded projects, for a total of 2,185 homes. “These awards support the Biden-Harris Administration’s commitment to increase housing stability among the nation’s most vulnerable populations, including the very low-income seniors these grants will ultimately help,” said Office of Housing Principal Deputy Assistant Secretary Lopa Kolluri in a statement. Section 202 grants provide very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to meet their unique needs. HUD provides these funds to non-profit organizations in two forms: – Capital Advances: This is funding that covers the cost of developing, acquiring or rehabilitating the development. Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years. – Project Rental Assistance Contracts: This is renewable project-based funding which covers the difference between residents’ contributions toward rent and the cost of operating the project. Section 202 program eligibility requires residents to be very low-income or earning less than 50 percent of the area median income. However, most households in the Section 202 program earn less than 30 percent of the median for their area. See the grantees receiving funding awards here. Source: HUD The post HUD: $143M in Grants Will Support Multifamily Construction for Low-Income Seniors appeared first on RISMedia......»»

Category: realestateSource: rismediaSep 23rd, 2021

Bruman secures $66M loan to build 165-unit Astoria apartment tower

SCALE Lending, a Slate Property Group affiliate, has closed on a $65.9 million construction loan to finance the ground up construction of a residential project at 26-25 4th Street in Astoria, Queens Located within walking distance of Hallets Point and Astoria Park, 26-25 4th Street will be a new 165-unit... The post Bruman secures $66M loan to build 165-unit Astoria apartment tower appeared first on Real Estate Weekly. SCALE Lending, a Slate Property Group affiliate, has closed on a $65.9 million construction loan to finance the ground up construction of a residential project at 26-25 4th Street in Astoria, Queens Located within walking distance of Hallets Point and Astoria Park, 26-25 4th Street will be a new 165-unit residential building, 30 percent of which will be affordable housing. Bruman Realty, the development and investment firm led by Joseph Brunner and Abe Mandel, is the developer of the 19-story property. The financing was arranged by The SHB Group. Rendering of the new tower. Bruman Realty bought the site from Goodwill Industries for $14.4 million in November 2020, according to property records. “We’re very excited to work with Bruman Realty, a prolific and experienced developer in the New York City area, on a project that will provide much-needed housing to a growing submarket of Queens,” said Martin Nussbaum, Co-Founder and Principal of Slate Property Group. “We continue to focus our efforts on high quality locations and assets with projects we feel will be successful. This is another example of how we were able to work efficiently on a complex transaction while providing a valuable financing solution for our borrower.” SCALE Lending is Slate’s lending affiliate that directly provides first mortgage financing secured by commercial real estate assets with a focus on senior transitional loans secured by commercial mortgages in the New York Metropolitan area. The post Bruman secures $66M loan to build 165-unit Astoria apartment tower appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklySep 23rd, 2021

Affordable housing at Brookhill Village redevelopment hinges on $20M in public funding

The development group proposing to build new mixed-income housing on the Brookhill Village site near South End is seeking $19.8 million via loans from the city and an affordable-housing fund as well as a grant for site improvements......»»

Category: topSource: bizjournalsApr 8th, 2020

Apple launches $150 million affordable housing loan fund and seeks projects to support

Apple rolled out the first new initiative in its $2.5 billion pledge to address the Bay Area’s housing crisis, donating $150 million to Housing Trust Silicon Valley to create an affordable housing development fund. Apple's Affordable Housing Fun.....»»

Category: topSource: bizjournalsMar 2nd, 2020

Baltimore"s $20 million affordable housing fund becomes official

The city's renewed push for development of more affordable housing units took a giant step forward Wednesday. An 11-member commission was appointed to oversee the effort by Mayor Catherine Pugh, who established a $20 million affordable housing trust f.....»»

Category: topSource: bizjournalsDec 12th, 2018

2021: The Legislative Year in Review

After throwing out the legislative playbook just weeks into 2020 due to the pandemic, it was back to full steam ahead for our advocacy goals this year. And 2021 was not for the weary in Washington. The year began with a sixth major COVID relief bill, the American Rescue Plan. The bill continued policies supported […] The post 2021: The Legislative Year in Review appeared first on RISMedia. After throwing out the legislative playbook just weeks into 2020 due to the pandemic, it was back to full steam ahead for our advocacy goals this year. And 2021 was not for the weary in Washington. The year began with a sixth major COVID relief bill, the American Rescue Plan. The bill continued policies supported by the National Association of REALTORS® (NAR) that protected our members’ health and economic well-being, including benefits for sole proprietors, the self-employed, small business owners and independent contractors. The bill also included new measures like aid for state and local governments, expanded child tax credits and another $21 billion in rental assistance. Congress spent most of the year debating President Biden’s Build Back Better infrastructure plans. In November, a traditional public works bill became law, filled with longtime NAR priorities like investments in roads, bridges, ports, airports, roadways and a historic $65 billion for broadband. At the time of this writing, a second social spending infrastructure plan is advancing in Congress. Some of the earliest tax proposals to pay for this plan could have devastated the real estate sector, which makes up nearly one-fifth of the entire economy. We worked to educate lawmakers on these tax issues for more than a year. When House leaders finally unveiled the bill in October, it did not include the most-feared taxes and limits on real estate investment. It contained no 1031 like-kind exchange limits, no capital gains tax increases, no change in step-up in basis, no tax on unrealized capital gains, no increased estate tax, no carried interest provisions and no 199A deduction limits. But it did include SALT relief. Also included, a robust investment in affordable housing, which is critical to opening up homeownership for first-generation and first-time buyers. NAR CEO Bob Goldberg joined other housing leaders and members of Congress at the U.S. Capitol for a press conference in support of these affordable housing measures. While Bob headed to the Capitol, NAR President Charlie Oppler headed to the White House with other business leaders to meet with President Biden on the debt ceiling.  The very next day, Congress struck a deal to avoid a catastrophic default. Another major focus of our advocacy efforts has been addressing the housing supply shortage. Earlier this year, NAR released a landmark report that confirmed that the shortage of 6 million units is a crisis that will take a “once-in-a-generation” policy response. The media cited our report far and wide, garnering millions of impressions. And it also impressed lawmakers to act. Our policy recommendations began making appearances in infrastructure plans. It was also a standout year for NAR’s Community Outreach Programs, as 263 state and local REALTOR® associations received support for advocacy efforts in 2021. There are success stories nationwide. A Fair Housing Grant helped the Birmingham Association of REALTORS® highlight fair housing issues at a hybrid summit. The Fredericksburg Area Association of REALTORS® used a smart growth poll to create a regional growth and housing action plan. And in northern Idaho, a Placemaking Grant helped the Selkirk Association of REALTORS® support the development of an ADA-compliant trail. We have other regulatory and legislative accomplishments this year as well, like work protecting independent contractor status and progress on remote online notarization—too many to list in this space. There is no other trade association in Washington like NAR for one reason: our members. We don’t represent an industry; we represent 1.5 million individuals. They are thoughtful, engaged pillars of their communities. Our advocacy operation is successful because of them. It is bipartisan and issue focused. Our members played a vital role in the nation’s economic resilience this year and will help lead our economy in the years to come. Shannon McGahn is chief advocacy officer for the National Association of REALTORS®. The post 2021: The Legislative Year in Review appeared first on RISMedia......»»

Category: realestateSource: rismediaDec 1st, 2021