Technology
TriNet Announces Third Quarter 2024 Results
Published
5 hours agoon
By
DUBLIN, Calif., Oct. 25, 2024 /PRNewswire/ — TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses, today announced financial results for the third quarter ended September 30, 2024. The third quarter highlights below include non-GAAP financial measures which are reconciled later in this release.
Third quarter highlights include:
Total revenues increased 1% to $1.2 billion as compared to the same period last year.Flat professional service revenues of $184 million as compared to the same period last year.Net income was $45 million, or $0.89 per diluted share, compared to net income of $94 million, or $1.63 per diluted share, in the same period last year.Adjusted Net Income was $59 million, or $1.17 per diluted share, compared to Adjusted Net Income of $109 million, or $1.91 per diluted share, in the same period last year.Adjusted EBITDA was $109 million, compared to Adjusted EBITDA of $172 million, in the same period last year.Average WSEs increased 7% as compared to the same period last year, to approximately 356,000 and includes approximately 20,000 PEO Platform Users.Average HRIS Users for the period was approximately 183,000.At September 30, 2024, TriNet had unrestricted cash and cash equivalents of $251 million, unrestricted investments of $195 million and total debt of $1.1 billion.
“Small businesses are navigating a challenging business climate, hiring very carefully, and dealing with healthcare cost inflation steeper than we have seen in several years,” said Mike Simonds, TriNet’s President and CEO. “TriNet is not immune from these conditions and higher healthcare costs adversely impacted our profitability in the quarter.”
Mr. Simonds continued, “Fortunately, our model allows us to quickly take action and align our pricing with healthcare cost trends. We repriced our largest cohort of healthcare fees on October 1, and we experienced strong customer retention. Following our January 1 renewal, we will have priced for the current elevated cost trends across more than two thirds of our PEO business. Our colleagues are extremely engaged, delivering strong service to our customers and record retention levels in 2024 despite the challenging environment. Nearly eight months into this role, I am excited by the opportunity in front of us to grow our business profitably in an increasingly focused, disciplined, and customer-centric fashion.”
Fourth Quarter and Full-Year 2024 Guidance
In addition to announcing our third quarter 2024 results, we provide our fourth quarter and full-year 2024 guidance. Non-GAAP financial measures are reconciled later in this release. Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.
Q4 2024
Full Year 2024
Low
High
Low
High
Total Revenues
(1) %
2 %
1 %
2 %
Professional Service Revenues
(8) %
(5) %
— %
1 %
Insurance Cost Ratio
96.5 %
93.5 %
90.3 %
89.6 %
Diluted net income per share of common stock
$(0.19)
$0.31
$3.70
$4.20
Adjusted Net Income per share – diluted
$0.06
$0.57
$4.95
$5.45
Quarterly Report on Form 10-Q
We anticipate filing our Quarterly Report on Form 10-Q (“Form 10-Q”) for the nine months ended September 30, 2024 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com today, October 25, 2024. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the Form 10-Q.
Earnings Conference Call and Audio Webcast
TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) today to discuss its third quarter results for 2024 and provide fourth quarter and full-year financial guidance for 2024. TriNet encourages participants to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. To pre-register, go to: https://dpregister.com/sreg/10193255/fda58bcb7d. For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the “TriNet Conference Call.” The live webcast of the conference call can be accessed on the Investor Relations section of TriNet’s website at http://investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/366545303 A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for two weeks following the conference call at +1 (412) 317-0088 conference ID: 1675204.
About TriNet
TriNet provides small and medium-size businesses (SMBs) with full-service industry-specific HR solutions, providing both professional employer organization (PEO) and human resources information system (HRIS) services. TriNet offers access to human capital expertise, benefits, risk mitigation, compliance, payroll, and R&D tax credit services, all enabled by industry-leading technology. TriNet’s suite of products also includes services and software-based solutions to help streamline workflows by connecting HR, benefits, employee engagement, payroll and time & attendance. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most – growing their business and enabling their people For more information, please visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to TriNet’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled “Non-GAAP Financial Measures.”
Forward-Looking Statements
This press release contains, and statements made during the above referenced conference call will contain, statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among other things, TriNet’s expectations and assumptions regarding: TriNet’s financial guidance for the fourth quarter and full-year 2024 and the underlying assumptions, the value to customers and shareholders of TriNet’s product offerings, TriNet’s financial performance and long-term growth, and the extent, length and growth impact of current economic uncertainty. Forward-looking statements are often identified by the use of words such as, but not limited to, “ability,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “guidance,” “impact,” “intend,” “may,” “plan,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “value,” “will,” “would” and similar expressions or variations. Examples of forward-looking statements include, among others, TriNet’s expectations regarding our ability to continue to have our value proposition resonate at required pricing levels; ability to manage our expenses diligently; and our ability to meet our forecasted retention goals. These statements are not guarantees of future performance but are based on management’s expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from our current expectations and any past or future results, performance or achievements. Investors are cautioned not to place undue reliance upon any forward-looking statements.
Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: our ability to manage unexpected changes in workers’ compensation and health insurance claims and costs by WSEs; our ability to mitigate the unique business risks we face as a co-employer; the effects of volatility in the financial and economic environment on the businesses that make up our client base; loss of clients for reasons beyond our control and the short-term contracts we typically use with our clients; the impact of regional or industry-specific economic and health factors on our operations; the impact of failures or limitations in the business systems and centers we rely upon; the impact of discontinuing our discretionary credits on our business and client loyalty and retention; changes in our insurance coverage or our relationships with key insurance carriers; our ability to improve our services and technology to satisfy client and regulatory expectations; our ability to effectively integrate businesses we have acquired or may acquire in the future; our ability to effectively manage and improve our operational effectiveness and resiliency; our ability to attract and retain qualified personnel; the effects of increased competition and our ability to compete effectively; the impact on our business of cyber-attacks, breaches, disclosures and other data-related incidents; our ability to protect against and remediate cyber-attacks, breaches, disclosures and other data-related incidents, whether intentional or inadvertent and whether attributable to us or our service providers; our ability to comply with evolving data privacy and security laws; our ability to manage changes in, uncertainty regarding, or adverse application of the complex laws and regulations that govern our business; changing laws and regulations governing health insurance and employee benefits; our ability to be recognized as an employer of worksite employees and for our benefits plans to satisfy all requirements under federal and state regulations; changes in the laws and regulations that govern what it means to be an employer, employee or independent contractor; the impact of new and changing laws regarding remote work; our ability to comply with the licensing requirements that govern our solutions; the outcome of existing and future legal and tax proceedings; fluctuation in our results of operations and stock price due to factors outside of our control; our ability to comply with the restrictions of our credit facility and meet our debt obligations; and the impact of concentrated ownership in our stock by Atairos and other large stockholders; and our ability to manage risks associated with our international operations. Any of these factors could cause our actual results to differ materially from our anticipated results.
Further information on risks that could affect TriNet’s results is included in our filings with the SEC, including under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on our investor relations website at http://investor.trinet.com and on the SEC website at www.sec.gov. Copies of these filings are also available by contacting TriNet Corporation’s Investor Relations Department at (510) 875-7201. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this press release, and any forward-looking statements in this press release speak only as of the date of this press release. In addition, we do not assume any obligation, and do not intend, to update any of our forward-looking statements, except as required by law.
Contacts:
Investors:
Media:
Alex Bauer
Renee Brotherton
TriNet
TriNet
(510) 875-7201
(925) 965-8441
Key Financial and Operating Metrics
We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. These key financial and operating metrics may change over time. Our key financial and operating metrics for the periods presented were as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions, except per share and Operating Metrics data)
2024
2023
% Change
2024
2023
% Change
Income Statement Data:
Total revenues
$ 1,237
$ 1,222
1
%
$ 3,727
$ 3,677
1
%
Operating income
58
116
(50)
261
382
(32)
Net income
45
94
(52)
196
308
(36)
Diluted net income per share of common stock
0.89
1.63
(45)
3.87
5.20
(26)
Non-GAAP measures (1):
Adjusted EBITDA
109
172
(37)
425
557
(24)
Adjusted Net income
59
109
(46)
247
365
(32)
Operating Metrics:
Insurance Cost Ratio
90 %
84 %
6
%
88 %
83 %
5
Average WSEs (2)
355,948
333,286
7
351,856
329,257
7
%
Total WSEs at period end (2)
356,137
335,741
6
356,137
335,741
6
Average HRIS Users (3)
183,410
210,863
(13)
189,929
219,058
(13)
(1)
Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading “Non-GAAP Financial Measures”.
(2)
Total WSEs and Average WSEs include incremental WSEs that were charged a platform user access fee and incremental additional service recipients. These were identified as a result of our ongoing effort to ensure that our billing practices best match the expectations of our customers. Please refer to Management Discussion & Analysis in our 2024 10-Q.
(in millions)
September 30,
2024
December 31,
2023
%
Change
Balance Sheet Data:
Working capital
165
115
43
%
Total assets
3,729
3,693
1
Debt
1,068
1,093
(2)
Total stockholders’ equity
129
78
65
Nine Months Ended September 30,
(in millions)
2024
2023
%
Change
Cash Flow Data:
Net cash used in operating activities
$ (276)
$ (43)
542
%
Net cash used in investing activities
(25)
(57)
(56)
Net cash used in financing activities
(217)
(523)
(59)
Non-GAAP measure (1):
Corporate Operating Cash Flows
$ 213
$ 386
(45)
(1)
Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading “Non-GAAP Financial Measures”.
TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions except per share data)
2024
2023
2024
2023
Professional service revenues
$ 184
$ 185
$ 584
$ 567
Insurance service revenues
1,053
1,037
3,143
3,110
Total revenues
1,237
1,222
3,727
3,677
Insurance costs
949
874
2,772
2,594
Cost of providing services
74
74
228
231
Sales and marketing
74
75
218
214
General and administrative
46
51
140
154
Systems development and programming
17
15
52
49
Depreciation and amortization of intangible assets
19
17
56
53
Total costs and operating expenses
1,179
1,106
3,466
3,295
Operating income
58
116
261
382
Other income (expense):
Interest expense, bank fees and other
(15)
(10)
(47)
(23)
Interest income
15
18
49
57
Income before provision for income taxes
58
124
263
416
Income taxes
13
30
67
108
Net income
$ 45
$ 94
$ 196
$ 308
Other comprehensive income (loss), net of income taxes
7
(2)
4
(3)
Comprehensive income
$ 52
$ 92
$ 200
$ 305
Net income per share:
Basic
$ 0.90
$ 1.65
$ 3.91
$ 5.23
Diluted
$ 0.89
$ 1.63
$ 3.87
$ 5.20
Weighted average shares:
Basic
50
57
50
59
Diluted
50
58
51
59
TRINET GROUP, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
September 30,
December 31,
(in millions, except share and per share data)
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 251
$ 287
Investments
50
65
Restricted cash, cash equivalents and investments
780
1,269
Accounts receivable, net
15
18
Unbilled revenue, net
511
447
Prepaid expenses, net
64
67
Other payroll assets
883
381
Other current assets
51
44
Total current assets
2,605
2,578
Restricted cash, cash equivalents and investments, noncurrent
153
158
Investments, noncurrent
145
143
Property and equipment, net
14
17
Operating lease right-of-use asset
30
24
Goodwill
462
462
Software and other intangible assets, net
179
172
Other assets
141
139
Total assets
$ 3,729
$ 3,693
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and other current liabilities
$ 82
$ 87
Revolving credit agreement borrowings
75
109
Client deposits and other client liabilities
39
65
Accrued wages
566
515
Accrued health insurance costs, net
193
175
Accrued workers’ compensation costs, net
44
50
Payroll tax liabilities and other payroll withholdings
1,420
1,438
Operating lease liabilities
15
14
Insurance premiums and other payables
6
10
Total current liabilities
2,440
2,463
Long-term debt, noncurrent
993
984
Accrued workers’ compensation costs, noncurrent, net
107
120
Deferred taxes
18
13
Operating lease liabilities, noncurrent
30
30
Other non current liabilities
12
5
Total liabilities
3,600
3,615
Stockholders’ equity:
Preferred stock
—
—
Common stock and additional paid-in capital
1,037
976
Accumulated deficit
(910)
(896)
Accumulated other comprehensive loss
2
(2)
Total stockholders’ equity
129
78
Total liabilities & stockholders’ equity
$ 3,729
$ 3,693
TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended
September 30,
(in millions)
2024
2023
Operating activities
Net income
$ 196
$ 308
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization of intangible assets
56
53
Amortization of deferred costs
32
31
Amortization of ROU asset, lease modification, impairment, and abandonment
4
5
Deferred income taxes
3
—
Stock based compensation
53
43
Other
3
1
Changes in operating assets and liabilities:
Accounts receivable, net
2
(4)
Unbilled revenue, net
(64)
(29)
Prepaid expenses, net
3
(4)
Other assets
(44)
(44)
Other payroll assets
(502)
(104)
Accounts payable and other liabilities
(13)
9
Client deposits and other client liabilities
(27)
(33)
Accrued wages
52
21
Accrued health insurance costs, net
18
9
Accrued workers’ compensation costs, net
(19)
(9)
Payroll taxes payable and other payroll withholdings
(18)
(283)
Operating lease liabilities
(11)
(13)
Net cash used in operating activities
(276)
(43)
Investing activities
Purchases of marketable securities
(161)
(226)
Proceeds from sale and maturity of marketable securities
196
223
Acquisitions of property and equipment and software
(60)
(54)
Net cash used in investing activities
(25)
(57)
Financing activities
Repurchase of common stock
(155)
(1,109)
Proceeds from issuance of common stock
6
9
Proceeds from revolving credit agreement borrowings
—
695
Revolver repayment
—
(495)
Proceeds from issuance of 2031 Notes
—
400
Awards effectively repurchased for required employee withholding taxes
(18)
(14)
Payment of long-term financing fees and debt issuance costs
—
(9)
Repayment of revolving credit agreement borrowings
(25)
—
Dividends paid
(25)
—
Net cash used in financing activities
(217)
(523)
Net change in cash and cash equivalents, unrestricted and restricted
(518)
(623)
Cash and cash equivalents, unrestricted and restricted:
Beginning of period
1,466
1,537
End of period
$ 948
$ 914
Supplemental disclosures of cash flow information
Interest paid
$ 55
$ 21
Income taxes paid, net
$ 67
$ 89
Supplemental schedule of noncash investing and financing activities
Cash dividend declared, but not yet paid
$ 12
$ —
Payable for purchase of property and equipment
$ 2
$ 2
Non-GAAP Financial Measures
In addition to the selected financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), we monitor other non-GAAP financial measures that we use to manage our business, to make planning decisions, to allocate resources and to use as performance measures in our executive compensation plan. These key financial measures provide an additional view of our operational performance over the long term and provide information that we use to maintain and grow our business.
The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation from, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.
Non-GAAP Measure
Definition
How We Use The Measure
Adjusted EBITDA
• Net income, excluding the effects of:
– income tax provision,
– interest expense, bank fees and other,
– depreciation,
– amortization of intangible assets,
– stock based compensation expense,
– amortization of cloud computing arrangements, and
– transaction and integration costs.
• Provides period-to-period comparisons on a consistent basis and an understanding as to how our management evaluates the effectiveness of our business strategies by excluding certain non-recurring costs, which include transaction and integration costs, as well as certain non-cash charges such as depreciation and amortization, and stock-based compensation and certain impairment charges recognized based on the estimated fair values. We believe these charges are either not directly resulting from our core operations or not indicative of our ongoing operations.
• Enhances comparisons to the prior period and, accordingly, facilitates the development of future projections and earnings growth prospects.
• Provides a measure, among others, used in the determination of incentive compensation for management.
• We also sometimes refer to Adjusted EBITDA margin, which is the ratio of Adjusted EBITDA to total revenues.
Adjusted Net Income
• Net income, excluding the effects of:
– effective income tax rate (1),
– stock based compensation,
– amortization of intangible assets, net,
– non-cash interest expense,
– transaction and integration costs, and
– the income tax effect (at our effective tax rate (1) of these pre-tax adjustments.
• Provides information to our stockholders and board of directors to understand how our management evaluates our business, to monitor and evaluate our operating results, and analyze profitability of our ongoing operations and trends on a consistent basis by excluding certain non-cash charges.
Corporate Operating Cash Flows
• Net cash provided by (used in) operating activities, excluding the effects of:
– Assets associated with WSEs and TriNet Trust (accounts receivable, unbilled revenue, prepaid expenses, other payroll assets and other current assets) and
– Liabilities associated with WSEs and TriNet Trust (client deposits and other client liabilities, accrued wages, payroll tax liabilities and other payroll withholdings, accrued health insurance costs, accrued workers’ compensation costs, insurance premiums and other payables, and other current liabilities).
• Provides information that our stockholders and management can use to evaluate our cash flows from operations independent of the current assets and liabilities associated with our WSEs and TriNet Trust.
• Enhances comparisons to prior periods and, accordingly, used as a liquidity measure to manage liquidity between corporate and WSE and TriNet Trust related activities, and to help determine and plan our cash flow and capital strategies.
(1)
Non-GAAP effective tax rate is 25.6% for the third quarters and full years of 2024 and 2023, which excludes the income tax impact from stock-based compensation, changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes.
(2)
Non-cash interest expense represents amortization and write-off of our debt issuance costs and loss on a terminated derivative.
Reconciliation of GAAP to Non-GAAP Measures
The table below presents a reconciliation of net income to Adjusted EBITDA:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2024
2023
2024
2023
Net income
$ 45
$ 94
$ 196
$ 308
Provision for income taxes
13
30
67
108
Stock based compensation
15
15
53
43
Interest expense, bank fees and other
15
10
47
23
Depreciation and amortization of intangible assets
19
17
56
53
Amortization of cloud computing arrangements
2
3
6
7
Transaction and integration costs
—
3
—
15
Adjusted EBITDA
$ 109
$ 172
$ 425
$ 557
Adjusted EBITDA Margin
8.8 %
14.1 %
11.4 %
15.1 %
The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share – diluted:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions, except per share data)
2024
2023
2024
2023
Net income
$ 45
$ 94
$ 196
$ 308
Effective income tax rate adjustment
(2)
(2)
—
1
Stock based compensation
15
15
53
43
Amortization of intangible assets
5
5
14
16
Non-cash interest expense
1
—
2
1
Transaction and integration costs
—
3
—
15
Income tax impact of pre-tax adjustments
(5)
(6)
(18)
(19)
Adjusted Net Income
$ 59
$ 109
$ 247
$ 365
GAAP weighted average shares of common stock – diluted
50
58
51
59
Adjusted Net Income per share – diluted
$ 1.17
$ 1.91
$ 4.88
$ 6.16
The table below presents a reconciliation of net cash provided by operating activities to Corporate Operating Cash flows:
Nine Months Ended
September 30,
(in millions)
2024
2023
Net cash used in operating activities
$ (276)
$ (43)
Less: Change in WSE & TriNet Trust related other current assets
(548)
(134)
Less: Change in WSE & TriNet Trust related current liabilities
59
(295)
Net cash used in operating activities – WSE & TriNet Trust
$ (489)
$ (429)
Net cash provided by operating activities – Corporate
$ 213
$ 386
Reconciliation of GAAP to Non-GAAP Measures for the fourth quarter and full-year 2024 guidance.
Low and high percentages represent increases (decreases) from the same periods in the previous year.
The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share – diluted:
Q4 2023
Q4 2024 Guidance
FY 2023
Year 2024 Guidance
(in millions, except per share data)
Actual
Low
High
Actual
Low
High
Net income
$67
(114) %
(77) %
$375
(50) %
(44) %
Effective income tax rate adjustment
(3)
(73)
(59)
(2)
(28)
(3)
Stock based compensation
16
(17)
(12)
59
11
13
Amortization of intangible assets
5
1
1
20
(5)
(5)
Non-cash interest expense
1
(100)
(100)
2
(20)
(20)
Transaction and integration costs
2
(100)
(100)
17
(100)
(100)
Income tax impact of pre-tax adjustments
(6)
(24)
(20)
(25)
(12)
(11)
Adjusted Net Income
$82
(96) %
(65) %
$446
(44) %
(38) %
GAAP weighted average shares of common stock – diluted
51
57
Adjusted Net Income per share – diluted
$1.60
$0.06
$0.57
$7.81
$4.95
$5.45
View original content to download multimedia:https://www.prnewswire.com/news-releases/trinet-announces-third-quarter-2024-results-302287203.html
SOURCE TriNet Group, Inc.
You may like
Technology
INB Addresses Escalating Escrow Payments Due to Increased Insurance and Property Taxes
Published
51 mins agoon
October 25, 2024By
SPRINGFIELD, Ill., Oct. 25, 2024 /PRNewswire/ — INB, N.A., a locally owned bank and leading Central Illinois provider of escrow services to mortgage customers, is addressing rising concerns over increased mortgage payments stemming from higher homeowner insurance premiums and property taxes. As these costs continue to climb, customers are experiencing significant impacts on their monthly payments, prompting an increase in inquiries to INB’s mortgage operations.
“Our customers are understandably upset,” said Steven Day, AVP, Loan Servicing Manager at INB. “We’ve seen instances where mortgage payments have increased by as much as $939 a month. It can be a substantial burden for many homeowners.”
Day highlighted that these rising costs are affecting everyone, leaving limited options for customers seeking relief. INB advises homeowners to explore alternatives such as shopping for a different insurance carrier or appealing their property tax assessments with their local county. However, either option might not change things. Homeowner insurance rates in Illinois have increased 20 to 30% in the last 12 months, and tax appeals often provide disappointing results.
Day notes that while some individuals might drop their escrow accounts in response to these hikes, it’s crucial for homeowners to plan for their tax and insurance payments to avoid financial strain.
“An escrow account remains a practical way to manage these payments by saving incrementally over time,” Day said. “We are strong proponents of escrow because it helps ensure these expenses are covered.”
Mortgage Operations support staff report that 75% of their calls are now related to escrow, a significant jump from previous levels. Customers often express frustration over the increased costs, with customers even being brought to tears. Loan officers (LOs) at INB are working closely with customers to explore all available options, says Day, including spreading shortages over multiple years. But Day cautions: “This approach only extends the repayment period rather than reducing the overall burden.”
In some cases, homeowners have managed to offset the increase by dropping Private Mortgage Insurance (PMI). They’re able to do this because, as most new appraisals show, home values are increasing. Once a customer has 20% equity in a home, they are no longer required to carry PMI. The average cost of PMI insurance is 0.46 to 1.5 percent of the loan amount, according to the Urban Institute.
“We provide services to over 6,000 mortgage loans, and our goal is to support our customers through these challenging times,” Day emphasizes. “It’s important to remember that while there may be some options to explore, it’s important to have adequate insurance coverage and plan for property tax payments.”
INB encourages all customers to stay informed and reach out to their mortgage lenders for guidance and support in navigating changes.
About INB
About INB, N.A. – INB is a privately owned national bank. Founded in 1999 in Springfield, IL, the bank offers both personal and commercial banking products and wealth services in Central Illinois. The bank also provides commercial banking services in Missouri and Florida. INB is a trusted provider of escrow services, supporting over 6,000 mortgage loans.
View original content to download multimedia:https://www.prnewswire.com/news-releases/inb-addresses-escalating-escrow-payments-due-to-increased-insurance-and-property-taxes-302287408.html
SOURCE INB, N.A.
Technology
Betty Thompson Advocates Workforce Reskilling and AI Integration at SHRM India Annual Conference 2024
Published
51 mins agoon
October 25, 2024By
NEW DELHI, Oct. 25, 2024 /PRNewswire/ — Betty Thompson, Board Chair of SHRM, visited India last week to attend the highly recognised SHRM India Annual Conference (IAC) 2024. In her address to an audience of over 4,500 HR professionals, executives, and thought leaders; Thompson highlighted SHRM’s critical role in advancing the Indian workforce to global standards and how reskilling, AI, and continuous learning are key to shaping the future of work.
Emphasizing the urgency for collaboration between organisations and government bodies to address skill gaps and forecast future workforce requirements, Ms. Thompson said, “We are at a crucial point where things are moving faster than ever before. The pace of AI and technological advancements means that we need to stop relying solely on traditional degrees and start focusing on real skills that meet business needs.”
Thompson further underscored the importance of strategic partnerships, announcing the new alliance between SHRM and the National Skill Development Corporation (NSDC). This initiative is designed to bridge the skill gap and equip the workforce for the future. “The partnership between SHRM and the Indian government, specifically through NSDC, is a critical step toward aligning education and skills development with the actual needs of industries. By working together, we can ensure that India’s future workforce is not just prepared but globally competitive,” Ms. Thompson remarked.
During her visit, Thompson noted SHRM’s commitment and efforts towards the HR industry. With India being the largest SHRM entity outside the United States, the country plays a significant role in the global HR landscape. She further added, “The work SHRM is doing here with the Indian government and HR community is vital. We’re building strong partnerships to ensure that organizations are equipped to upskill their employees, keeping them productive and future-ready,” she added.
Ms. Thompson also addressed common misconceptions about reskilling, pointing out that businesses often think they already know what they need. “The biggest misconception is that we have all the answers, but the reality is we need to forecast and prepare for how the nature of work will continue to evolve. Jobs aren’t being eliminated at a massive scale; they’re transforming. It’s about retooling and continuous learning,” she stated.
With AI as a key driver of this transformation, Ms. Thompson strongly advocated the positive impact of the technology on talent acquisition and development. “AI has the power to streamline the recruitment process by sorting through vast amounts of data and going beyond degrees to identify real skills and experiences that align with organizational goals. It also helps us identify biases in recruitment processes and creates pathways for continuous growth,” she explained.
Betty concluded her visit to India by sharing her vision of people’s success, where individuals find purpose, fulfilment, and a sense of contribution in their work. “People’s success means building a world of work that works for everyone. It’s about creating opportunities for lifelong learning and ensuring that every individual feels empowered to grow, contribute, and succeed.”
About SHRM India:
SHRM is a member-driven catalyst for creating better workplaces where people and businesses thrive together. As the trusted authority on all things work, SHRM is the foremost expert, researcher, advocate, and thought leader on issues and innovations impacting today’s evolving workplaces. With nearly 340,000 members in 180 countries, SHRM touches the lives of more than 362 million workers and their families globally.
Photo: https://mma.prnewswire.com/media/2540628/Betty_Thompson_SHRM.jpg
View original content to download multimedia:https://www.prnewswire.com/in/news-releases/betty-thompson-advocates-workforce-reskilling-and-ai-integration-at-shrm-india-annual-conference-2024-302287447.html
Technology
SUSTAINABLE MARKETS INITIATIVE UNVEILS SUPPORT TO COMMONWEALTH MEMBER STATES AT CHOGM
Published
51 mins agoon
October 25, 2024By
In support of His Majesty King Charles III’s visits to Australia and Samoa, for the Commonwealth Heads of Government Meeting (CHOGM), SMI launches further support for Commonwealth Member States
Pacific Hub launched in Australia to enhance alignment of industry, finance and country efforts to accelerate delivery on global climate and biodiversity targets.Marine Mangrove Sanctuary launched in partnership with SpaceX and Rotary International in Samoa to restore mangrove ecosystems, mitigate sea level rise, increase community connectivity and preserve cultural heritage for future generations.Private Sector Training Programme for government officials extended to enhance public-private partnerships and project delivery in the Commonwealth.SMI’s Impact Accelerator, along with a recommendation to establish High-Level Climate Investment Authorities, launched to provide end-to-end support for governments to develop industry partnerships and investment ready projects aligned with sustainable transition. The SMI’s Nature-Risk Tool, developed by AECOM, has been made available to all Commonwealth member states to assist them in assessing Nature-risks associated with physical infrastructure and urban planning.The Natural Capital on African Governments’ Balance Sheets Initiative launched to explore making natural capital assets as a core component of national balance sheets.
APIA, Samoa, Oct. 25, 2024 /PRNewswire/ — In the presence of His Majesty King Charles III, as well as leaders from the Commonwealth as part of the Commonwealth Heads of Government Meeting’s Business Forum, the Sustainable Markets Initiative (SMI) has launched several initiatives to further enhance its commitment and support to Commonwealth Members States.
Pacific Hub: Connecting SMI’s global CEOs with CEOs and climate leaders in Australia, the SMI launched its Pacific Hub to enhance alignment of industry, finance and country efforts to accelerate delivery on global climate and biodiversity targets.Marine Mangrove Sanctuary: In collaboration with Rotary International and Space X, the SMI is launching a Marine Mangrove Sanctuary in Samoa to restore and maintain the mangrove ecosystem, mitigating sea level rise and preserving cultural heritage.Private Sector Training Programme: SMI introduces a climate-based training programme for government officials in Commonwealth Member States. This programme will support the delivery of climate and biodiversity-related projects and the implementation of Nationally Determined Contributions.Impact Accelerator: SMI launches its Impact Accelerator for Commonwealth Member States which provides end-to-end support for Governments to develop industry partnerships and investment ready projects aligned with sustainable transition. The SMI further recommends establishing High-level Climate Investment Authorities within governments to better coordinate and crowd-in private sector support and investment.Nature Risk Tool: SMI’s Nature Risk Tool, developed by AECOM, will now be available to all Commonwealth nations to assess the impact of infrastructure on local biodiversity globally.The Natural Capital on African Governments’ Balance Sheets Initiative was launched as an institutional investor-public partnership, led by the SMI Africa Council. This initiative aims to embed Nature as an investable asset class.
Jennifer Jordan-Saifi M.V.O., CEO of the Sustainable Markets Initiative, emphasised the urgency of these initiatives: “It is an honour to be in Samoa for the Commonwealth Heads of Government Meeting (CHOGM). Being welcomed into the community of Nono’a Saleimoa to launch their Mangrove Sanctuary, we saw first-hand how Pacific communities are on the front lines of climate change and biodiversity loss. With future generations in mind, we also saw the passion of community members for restoring harmony with Nature. The SMI is delighted to bring private sector CEOs together with Commonwealth governments at CHOGM, and through our new Pacific Hub, to accelerate practical, scalable actions that advance a genuinely sustainable future for all.”
Recognizing the importance of biodiversity restoration across the Commonwealth, Dr Hubert Danso, Co-Chair of the SMI Africa Council, highlighted that “Africa’s natural capital forms the backbone not only of our economies, but also of global business models and societies. To protect and expand this value, we must invest at scale in our ecosystems. Through mandate-aligned institutional investor-public partnerships with governments, we can unlock risk and Nature-adjusted returns, that drive benefits for Nature, people and planet. Through these efforts we aim to demonstrate that what’s good for Africa and the world, can also create sustainable value for investors.”
Pacific Hub
The new SMI Pacific Hub, is the latest addition to the Sustainable Markets Initiative’s regional engagement activities, joining a cohort of five other Hubs and Councils including North America, Africa, China, India, and Greece. As part of its regional and country approach, the Pacific Hub will provide a forum for CEOs to look more practically at sustainability efforts across industry and finance while exploring how the region’s private sector is actively working with governments to support Nationally Determined Contributions (NDCs) and biodiversity targets in the region.
Marine Mangrove Sanctuary
The Sustainable Markets Initiative announces the Marine Mangrove Sanctuary in collaboration with Rotary International and SpaceX. The sanctuary in Nono’a Saleimoa, Samoa will restore and maintain the mangrove ecosystem to mitigate the onset of sea level rise. Starlink will enable project leads to record, in real-time, key data points regarding the progress of the project such as: number of mangrove seedlings planted, growth of seedlings, time spent planting and maintaining the site, and general updates from site visits. The project demonstrates the value of remote access connectivity to support underserved and remote communities across the Commonwealth. The SMI’s partnership with Starlink includes a focus on rapidly scaling support for Nature-capital and post-disaster monitoring.
Government Training Programme
The Sustainable Markets Initiative will now offer Commonwealth Member States access to its highly successful Government Training Programme, which has so far had over 800 participants from over 85 countries register worldwide. The programme has convened subject matter experts from across the public and private sectors along with non-governmental organisations to develop climate-based training that can help support government officials (and others) responsible for delivering and developing climate-related projects and the implementation of Nationally Determined Contributions (NDCs).
SMI Impact Accelerator and High-Level Climate Investment Authority
The SMI also offers support through its Impact Accelerator. The private sector is ready to mobilize capital, however to date there is a limited pipeline of “investment-ready” projects. The Sustainable Markets Initiative strives to fill this gap by offering end-to-end support for project development, industry partnerships and capacity building. Recognizing the urgency and complexity of public-private partnerships for transition, we strongly recommend that High-Level Climate Investment Authorities (HCIA) be established to offer an empowered and coordinated docking point that is focused on private sector partnerships and capital mobilization. The SMI has a range of guidance available on how to best establish these HCIAs.
SMI Nature Risk Tool
The Sustainable Markets Initiative has recently launched its SMI Nature Risk Tool and is now offering it to all Commonwealth Member States. The SMI Nature Risk Tool recognizes that infrastructure development often leads to habitat loss, biodiversity decline, pollution, and increased greenhouse gas emissions. Powered by AECOM, and using datasets from the Taskforce for Nature-related Financial Disclosures (TNFD), the SMI Nature Risk Tool enables infrastructure investors and promoters to analyse any piece of land globally, providing expert-reviewed descriptions of the location’s habitat and biomes early in the site selection process.
About The Sustainable Markets Initiative
Founded by His Majesty King Charles III in 2020, then the Prince of Wales, the Sustainable Markets Initiative has become the world’s ‘go-to’ private sector organisation on transition. Launched in 2021, the Terra Carta serves as the Sustainable Markets Initiative’s mandate with a focus on accelerating positive results for Nature, People and Planet through real economy action. Complementing the Terra Carta, the Astra Carta was launched in 2023 to support a default sustainable approach to space while leveraging space resources for sustainability on Earth. Read more: www.sustainable-markets.org
Photo – https://mma.prnewswire.com/media/2540772/Sustainable_Markets_Initiative.jpg
View original content:https://www.prnewswire.co.uk/news-releases/sustainable-markets-initiative-unveils-support-to-commonwealth-member-states-at-chogm-302287449.html
INB Addresses Escalating Escrow Payments Due to Increased Insurance and Property Taxes
Betty Thompson Advocates Workforce Reskilling and AI Integration at SHRM India Annual Conference 2024
SUSTAINABLE MARKETS INITIATIVE UNVEILS SUPPORT TO COMMONWEALTH MEMBER STATES AT CHOGM
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
Peloton Unveils Holiday 2022 Creative Campaign Highlighting How Motivation Transcends Beyond the Workout
These ’90s fashion trends are making a comeback in 2017
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Coin Market3 days ago
Anthropic beta lets Claude AI operate users' computer mouse, keyboard
-
Near Videos4 days ago
Decentralized Cloud & TEE: Transforming AI Workloads
-
Technology5 days ago
Delta Future Industry Summit 2024 Leads the Charge in Unlocking AI’s Potential for Southeast Asia’s Development
-
Technology5 days ago
Bridging the Cybersecurity Gap: How a Vietnamese Company is Safeguarding Global Customers
-
Near Videos4 days ago
[REDACTED] Online Hackathon Marketing w Vish Proximity and Misha Sweat Economy
-
Technology4 days ago
IBM Introduces Granite 3.0: High Performing AI Models Built for Business
-
Coin Market3 days ago
Bitcoin options traders say $80K is a given as Trump victory odds spike
-
Technology5 days ago
Xinhua Silk Road: Annual Conference of Financial Street Forum 2024 brings attention to China’s financial opening-up, cooperation for economic stability