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Category: Artificial Intelligence

  • MIL-Evening Report: Will new $10,000 apprentice payments help solve job shortages in construction? Not anytime soon

    Source: The Conversation (Au and NZ) – By Pi-Shen Seet, Professor of Entrepreneurship and Innovation, Edith Cowan University

    In an election pitch last week, Prime Minister Anthony Albanese announced new incentive payments of $10,000 for eligible apprentices in residential construction.

    The federal government has committed to an ambitious target of building 1.2 million new homes over the next five years through the National Housing Accord. That means it urgently needs to boost Australia’s construction workforce.

    But a recent strategic review into incentives for Australian apprentices and trainees found cost-of-living pressures were a major barrier to apprenticeship entry and completion.

    Only about half of apprentices currently finish their apprenticeships.

    The new program has been touted as the federal government’s initial response. It will target 62,690 apprentices and cost $627 million.

    But previous attempts to attract new apprentices with cash payments have had mixed results. A similar 2023 scheme to get more tradies into “green jobs” only attracted about 2,200 sign-ups in the first year.

    There are also concerns the new scheme may have unintended consequences, such as diverting talent from important sectors of the new economy – including the previous “green jobs” scheme.



    Read more:
    There may not be enough skilled workers in Australia’s pipeline for a post-COVID-19 recovery

    How will it work?

    From July 1, eligible apprentices in the new Housing Construction Apprenticeship Program will receive five payments of $2,000 each: after six, 12, 24 and 36 months, and upon completion. The payments are staged to encourage apprentices to complete their training.

    Cash payments won’t be the only new financial incentive. There’ll also be a boost to the Living Away From Home Allowance to help cover the costs of relocating, while an increase in the Disability Australian Apprentice Wage Support payment provides financial support to employers who hire apprentices with disability.



    Read more:
    Albanese to promise $10,000 for apprentices in housing construction

    Will the scheme succeed?

    The government’s previous attempts to address chronic labour shortages through cash incentives have had mixed results.

    Introduced in 2023, the New Energy Apprenticeships Program also offers $10,000 in staged payments to apprentices in priority green roles, such as electric vehicle technicians.

    Despite 2,200 apprentices joining in the first year, the program was deemed too restrictive by the industry. That was despite employers themselves receiving $15,000 per apprentice (which is also what is proposed for the construction scheme).



    Read more:
    Yes, we know there is a ‘skills shortage’. Here are 3 jobs summit ideas to start fixing it right away

    As part of the strategic review, the Centre for International Economics was commissioned to conduct an international literature review. It found that financial incentives such as wage or training subsidies and incentives were only “somewhat relevant” to the Australian context, and there was mixed support, at best, for their effectiveness.

    A major factor behind the mixed results may be the crowding-out effect in economic theory.

    This suggests that increasing public spending (by giving financial incentives) could undermine the intended effect by reducing or even eliminating private-sector investment. And it does not address apprehension among employers, especially small and medium-sized enterprises, about taking on more apprentices.

    More than six months after the government expanded eligibility for clean energy work, the green energy sector continues to face significant skills shortages.

    While these payments may help in the long run, their staggered nature over three years won’t provide immediate relief.

    The plan will likely only contribute to the government’s home-building targets by 2029, if and when more Australians enrol and complete their apprenticeships in the construction sector.

    Will this have effects outside the construction industry?

    More strategically, by shifting the focus from “new economy” industries outlined in the Future Made in Australia policy, this scheme risks weakening efforts to transform Australia’s economy.



    Read more:
    Australia has a new National Skills Agreement. What does this mean for vocational education?

    The cash incentive for apprentices in home-building comes at a time when there is intense global competition for skills in “new industries”.

    However, despite the many state and federal government initiatives for fee-free TAFE courses since the COVID pandemic, recently released data indicates a continued trend of long-term decline in Vocational Education and Training (VET) enrolments.

    Albanese was asked about the government’s commitment to technology and digital innovation, with increasing global competition in artificial intelligence.

    He responded by discussing the government’s commitment to the “new economy”.

    However, the construction sector has until now not been identified as an essential part of the new economy’s priority industries by the government.

    Instead, expanding incentives to construction apprentices marks a shift away from the priorities on green energy and new industries, and towards more traditional trades.

    The cash incentives could divert school leavers from considering apprenticeships in key future industries. That is something that schemes such as the new energy program were specifically designed to do in response to multiple skills and training reviews over the past two decades.

    So, despite the lack of evidence that cash incentives work, and the fact they may cause unintended effects, the proposed incentive payments appear to be a pitch addressing cost-of-living/cost-of-building concerns for the upcoming election.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Will new $10,000 apprentice payments help solve job shortages in construction? Not anytime soon – https://theconversation.com/will-new-10-000-apprentice-payments-help-solve-job-shortages-in-construction-not-anytime-soon-248446

    MIL OSI Analysis – EveningReport.nz –

    January 30, 2025

  • MIL-OSI USA: Warner Questions RFK Jr. on Medicaid, Federal Funding Freeze, and His Pledge to Fire 2,200 HHS Employees

    US Senate News:

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

     

    BROADCAST-QUALITY VIDEO OF THE FULL EXCHANGE IS AVAILABLE HERE 

    WASHINGTON – Sen. Mark R. Warner (D-VA), a member of the Senate Finance Committee, today questioned President Trump’s nominee for U.S. Secretary of Health and Human Services (HHS), Robert F. Kennedy Jr. Kennedy’s career has focused on touting disproven claims about vaccines, and he has a rapidly changing record on abortion rights. 

    Responding to Kennedy’s statements maligning Medicaid and the Affordable Care Act, Sen. Warner said (0:05):

    “Well, I have to tell you, for literally hundreds of thousands of Virginians, Medicaid is what prevents them from health crises on a daily and weekly basis. And some imaginary new plan? If there was a new plan, that was to be the basis of what Trump was going to do on repealing Obamacare… I would have thought by now we’d have seen it.” 

    Sen. Warner’s questions also follow an unlawful directive from President Trump on Monday night to freeze trillions in government grants, loans, and programs. While the action was successfully blocked until Feb. 3 by a federal judge, it could still go into effect at that point, directly threatening countless federal benefits, funding for public schools and community health centers, local domestic violence shelters, firefighters and law enforcement, and much more.

    Kennedy’s campaign fundraised off this unlawful directive in an email to supporters, celebrating it as a way to “prevent unelected bureaucrats from further undermining our health freedom.” Kennedy’s unsuccessful presidential campaign is $2 million in debt, and the email was an attempt to garner donations from supporters to cover that shortfall. Questioning Kennedy on these decisions, Sen. Warner said (1:20),

    “So the fact that you celebrate this freeze, do you think that was a good idea to put all of this on hold for 90 days, NIH funding, and any kind of further work in your research? I’d like you to explain to a domestic violence center in Richmond that’s saying, because of this freeze, they may have to close down… where are those battered women going to go? Or to a rural nonprofit I’ve got in the Shenandoah Valley saying that freeze is going to potentially shut down their ability to operate…”

    Sen. Warner also pushed Kennedy on his pledge to remove 2,200 HHS employees, and asked what departments he might be firing people from. He also touched on President Trump’s questionably legal action to offer all federal employees a “buyout” (2:41):

    “Now, you’ve said publicly you want to immediately get rid of 600 workers on job one on day one… When we had our meeting, you said you actually like to get rid of 2,200 people from HHS. Which offices are you going to start cutting and ripping these 2,200 workers from? … When we’re looking at this purge and we’re looking at laying off workers, when we’re looking at potentially the president’s illegal offer to try to buy out federal employees, which I would say to any federal employees, think twice… has this individual in his business role ever fulfilled his contracts or obligations to any workers in the past? … But if you are in this position, will you pledge that you will not fire federal employees who work on food safety, work on trying to prevent things like salmonella?”

    While Kennedy refused to answer any specific departments he would protect or fire, Sen. Warner pushed him to see if his determinations on worthy departments would be at his discretion or based on President Trump’s ideas. When Kennedy responded that it would be his choice, Sen. Warner answered (5:09),

    “So I guess that means a lot of folks who’ve had any type of views on vaccines will be out of work.”

    Sen. Warner went on to question Kennedy about protecting funding for community health centers (5:20) and continue to push him on the federal funding freeze (6:00). His full comments can be watched here.

    Kennedy will face additional questioning in front of the Senate Committee on Health, Education, Labor, and Pensions (HELP) tomorrow, before the Finance Committee eventually votes on his nomination.

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI USA: “Chaos on Steroids”: Warner Speaks on the Senate Floor About Reckless Federal Funding Freeze Back-And-Forth

    US Senate News:

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

     

    BROADCAST-QUALITY VIDEO OF SEN. WARNER’S SPEECH IS AVAILABLE HERE

     

    WASHINGTON – Sen. Mark R. Warner (D-VA) today spoke on the Senate floor about the recklessness of President Trump’s attempt to freeze all federal funding.

    “President Trump got hired because he promised to bring down prices. None of this is going to bring down grocery prices. None of this is going to bring down consumer prices. None of this is going to make our government more efficient or effective… This is day 10 of the Trump administration. We have chaos on steroids… In the meantime, I implore the administration: get your act together. Don’t put out two separate statements totally contradicting each other. It just makes chaos and stress go up.”

    Sen. Warner’s remarks follow an unlawful directive from President Trump on Monday night to freeze trillions in government grants, loans, and programs. The pause directly threatened countless federal benefits, funding for public schools and community health centers, local domestic violence shelters, firefighters and law enforcement, and much more.

    On Tuesday evening, a federal judge halted the unlawful order. On Wednesday afternoon, OMB seemingly rescinded the order, before White House Press Secretary Karoline Leavitt added fuel to the fire with a confusing tweet that implied the freeze was not canceled. The battle, while paused for now, is currently working its way through the federal court system. 

    Sen. Warner’s full remarks as prepared are below:

    Mr. President, I rise to the floor today amid a great deal of confusion.

    Two days ago… the Trump administration issued an order to freeze all federal spending.

    Earlier today… less than 48 hours later…that order was formally rescinded.

    But the story doesn’t end there.

    Shortly thereafter, the White House tweeted… that the federal funding freeze remains in place… and will be rigorously implemented.

    So I ask… which one is it?

    Unfortunately… I’m not the only one asking that question. And I’ve got a list of stressed-out Virginians to prove it.

    In Virginia, federal funding supports countless programs that serve children… seniors… community infrastructure needs… and more.

    Yesterday alone, my office was flooded with outreach from organizations and local governments.

    I heard from firefighters in Southwest Virginia. They’re worried that they won’t be able to replace their tanker truck without the funding that was supposed to head their way.

    I heard from an affordable housing organization in Northern Virginia. They’re worried that they will need to cease operations entirely.

    I heard from law enforcement in the Valley… and the greater-Richmond area. These localities rely on federal funding to pay the salaries of several police officers.

    That’s right… this federal funding freeze will take cops off the streets. 

    I also heard from a number of domestic violence shelters across the Commonwealth. Without funding… they’ll have to leave battered women and children without housing support.

    You’ve also got meals for low-income seniors… child care for vulnerable kids… support for teens who have been trafficked… that’s what’s on the chopping block.

    As someone who ran a business… as someone who ran the Commonwealth… this is unbelievable.

    This is not the way to run the most important enterprise in the world: the American government.

    And the truth is: Rescinded or not… these chaotic antics have real consequences.

    I know of organizations in Virginia that had to call emergency board meetings yesterday.

    I’ve heard from folks who are worried that they’ll have to lay off all their employees. Without federal funding… many organizations simply won’t be able to make payroll.

    One Virginian wrote in, saying “the mental and physical damage is already immense.”

    It’s not right to toy with people’s lives… or with the resources that keep folks fed… police employed… fire departments stocked… and domestic violence shelters running.

    As long as I’m Senator, I’m going to keep fighting back against these antics, which frankly, make the President’s first term look organized.

    With that, Mr./Madam President, I yield the floor.   

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI USA: Video: Kaine Speaks on Senate Floor About Alarming Pardon of Dangerous Drug Trafficker

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine
    BROADCAST-QUALITY VIDEO OF KAINE’S FLOOR SPEECH IS AVAILABLE HERE.
    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) spoke on the Senate floor to discuss President Trump’s alarming pardon of Ross Ulbricht, the founder of Silk Road, the world’s largest online drug marketplace. Trump pardoned Ulbricht, who was serving life in prison, on his second day in office. In 2015, Ulbricht was convicted on seven counts, including distributing narcotics and conspiring to launder money, for his involvement with Silk Road. Government investigators identified six individuals whose lethal overdoses were caused by drugs purchased on the site, one of whom was 16 years old.
    “On Inauguration Day, January 20, President Trump declared a national emergency at the southern border of the United States, and I want to read two sentences from that declaration,” said Kaine. “Hundreds of thousands of Americans have tragically died from drug overdoses because of the illicit narcotics that have flowed across the southern border…As Commander in Chief, I have no more solemn duty than to protect the American people.”
    Kaine continued, “Those two sentences are why I was so surprised at an action the President took the next day, January 21, 2025: the pardon of drug kingpin Ross Ulbricht.”
    “Mr. Ulbricht launched Silk Road in 2011 and turned it into one of the most popular outposts of the so called Dark Web, a hidden corner of the internet that people can access only through a special browser. Silk Road facilitated over 1.5 million transactions, generating more than $200 million in revenue from the sale of heroin, methamphetamine, cocaine, and other drugs,” Kaine said. “At least six deaths were attributed to drugs bought on Silk Road.”
    “I just want to raise the obvious question. If illicit narcotics trafficking is sufficient to declare a national emergency, then why, one day later, was it a justifiable, appropriate, laudable use of presidential power to give a pardon to somebody who had set up an online global digital drug trafficking network that had generated $200 million in revenue, 1.5 million transactions of sales of illicit drugs, six overdose deaths of individuals, and other challenges?” Kaine asked.
    “I would assert that the pardon of Mr. Ulbricht undercuts the legitimacy of the claim of what Mr. President Trump is worried about is drug trafficking,” Kaine concluded. “…If the only thing that can be done is to put it on the public record so that people can be aware, less than 24 hours after this emergency declaration, this drug trafficker was pardoned, I feel like that’s an important thing that needs to be made visible to the American public.”

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI USA: Fischer Questions Howard Lutnick at Confirmation Hearing

    US Senate News:

    Source: United States Senator for Nebraska Deb Fischer
    Today, U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Commerce Committee, questioned Howard Lutnick at the confirmation hearing on his nomination to be Secretary of Commerce. 
    During the hearing, Senator Fischer’s exchange with Lutnick focused on federal spectrum management and its critical role in national security, the impact of retaliatory tariffs on agriculture and manufacturing, the need to expand export markets, preserving critical broadband funding, and strategies to counter threats from China in technology markets.

    Click the image above to watch a video of Senator Fischer’s questioning
    Click here to download audio
    Click here to download video
    On the Role Spectrum Plays in Protecting National Security:
    Senator Fischer: If confirmed, you will lead a massive federal agency across 13 bureaus. And to start with, I want to highlight one that you’ve already heard of—the NTIA. It has critical influence over the U.S. economy and over our security, as well. Among its roles . . . NTIA coordinates spectrum management, ensuring that federal airwaves are being used most effectively. But, as spectrum becomes more scarce, critical federal operations, especially those essential for our national security, have been seen as obstacles. At the onset, I want to make it clear to you that DOD airwaves are not lying dormant and that proposals to clear them would jeopardize our national security.
    We have constellations of DOD satellites that rely on spectrum. Our nuclear command and control relies on spectrum. Advanced fighter aircraft like F-35s rely on spectrum. And we are investing tens of billions of dollars in developing sixth-generation aircraft that will rely on spectrum. We have radar systems on our Navy ships tracking incoming missiles around the world. These allowed us to help defend Israel from over 300 missile and drone attacks last year. They rely on spectrum. I can go on and on, as my colleagues know, but this is all to say that I hope we can work together so that we can come up with a really strong strategy for federal spectrum management in the future.
    On Protecting Nebraska’s Industries From Retaliatory Tariffs:
    Senator Fischer: I’m from Nebraska, and Nebraska’s agricultural and manufacturing industries rely on our strong export markets for our products. You and I talked about trade and about the need under this administration for trade to be front and center. We know that we didn’t see much of that happen in the previous administration. We also know, though sir, that other countries may try to retaliate against our agricultural and our manufacturing industries. So, if confirmed, will you work with your colleagues at other agencies to understand the impact of retaliatory tariffs on agriculture and manufacturing?
    Howard Lutnick: I will.
    On Opportunities To Expand Export Markets:Senator Fischer: Thank you. Can you also talk a little bit about what opportunities you view that are out there so that we can expand certain export markets over the next four years under this administration?
    Howard Lutnick: I think our farmers, ranchers, and fishermen are treated with disrespect.Senator Fischer: Always, the fish.Howard Lutnick: Always, you have to include them. You know, how often do we eat seafood? Come on. So they are treated with disrespect around the world. They are our farmers, our ranchers, and our fishermen are treated with disrespect. The countries take advantage of American kindness, American gratitude, that we used to rebuild the world after the World Wars, and after the Korean War, and after the Vietnam War.
    We need that disrespect to end. And I think tariffs are a way to create reciprocity, to be treated fairly, to be treated appropriately. And I think it will help our farmers, our ranchers, and our fishermen to flourish. And that’s what I expect this administration is going to drive. And that’s why I am honored to serve President Trump in his pursuit of that reciprocity and that fairness, and the end of the disrespect.
    These countries have reliance on the American economy, and they need to start respecting us and respect us now.
    On Understanding the Importance of the BEAD Broadband Program:Senator Fischer: Thank you. You heard about the BEAD funding from Senator Thune and other members of this committee as well. And I hope you will take that to heart and help our states get through some of those regulations that are out there. It has been an impediment to us.
    On Bolstering American Competitiveness Against China:  Senator Fischer: I’d like to talk a little bit here in the last few seconds about technology and competitiveness. I think I have Senator Wicker’s time.
    In previous hearings, this committee has discussed the United States’ AI capabilities and that we are in a dead heat with China. This week, we heard about DeepSeek, and I think it’s having us to examine kind of where we are right now with that.
    If confirmed, given the Commerce Department’s breadth of influence on that issue, how will you address different threats that we see coming from the CCP within these information and technology markets?Howard Lutnick: I take a very jaundiced view of China. I think they only care about themselves and seek to harm us. We need to protect ourselves, we need to drive our innovation forward, and we need to stop helping them.
    Open platforms—Meta’s open platform, let DeepSeek rely on it. Nvidia’s chips, which they bought tons of and they found their ways around it, drive their DeepSeek model. It’s got to end.
    If they are going to compete with us, let them compete, but stop using our tools to compete with us. So I’m going to be very strong on that. I am thrilled to oversee BIS and I’m thrilled to coordinate and empower BIS with tariffs that will improve the strength. When we say no, that answer’s got to be no.Senator Fischer: I look forward to working with you, sir. Thank you.Howard Lutnick: Thank you.

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI Security: Defend the base: 51st SFS and Army integrate during BH 25-2

    Source: United States INDO PACIFIC COMMAND

    OSAN AIR BASE, Republic of Korea  –  

    Airmen from the 51st Security Forces Squadron trained alongside soldiers from the U.S. Army Correctional Facility-Korea, 94th Military Police Battalion during Beverly Herd 25-2 at Osan Air Base, Republic of Korea Jan. 27, 2029. 

    Beverly Herd exercises are held throughout the year and designed to test the wing’s ability to survive and operate in a contested environment on the Korean Peninsula. 

    Integrating with joint partners during wing exercises helps foster relations and allows the two services to share tactics, techniques and procedures. 

    MIL Security OSI –

    January 30, 2025

  • MIL-Evening Report: ‘Digital doppelgangers’ are helping scientists tackle everyday problems – and showing what makes us human

    Source: The Conversation (Au and NZ) – By Alicia (Lucy) Cameron, Principal Research Consultant & Team Leader, Data61, CSIRO

    cybermagician/Shutterstock

    As rising seas lap at its shore, Tuvalu faces an existential threat. In an effort to preserve the tiny island nation in the middle of the Pacific Ocean, its government has been building a “digital twin” of the entire country.

    Digital twins are exactly what they sound like – a virtual double or replica of a physical, real-world entity. Scientists have been creating digital twins of everything from molecules, to infrastructure, and even entire planets.

    It’s also now possible to construct a digital twin of an individual person. In other words, a “digital doppelganger”.

    A doppelganger is someone who looks spookily like you but isn’t. The word originated in German, and literally means a “double walker”. A number of industries are now using digital doppelgangers for a range of reasons. These include enhancing athletic performance, offering more personalised healthcare and improving workplace safety.

    But although there are benefits to this technology, there are significant risks associated with its development. Having digital doppelgangers also forces us to reflect on which of our human attributes can’t be digitally replicated.

    Modelling complex systems

    The development of digital twins has been enabled by advances in environmental sensors, camera vision, augmented reality and virtual reality, as well as machine learning and artificial intelligence (AI).

    A digital twin allows us to build and test things in cyberspace – cheaply and without risk – before deploying in the real world.

    For example, we can build and stress-test infrastructure such as bridges or water supply pipes under a variety of conditions. Once built, we can use digital models to maintain the infrastructure proactively and prevent disastrous and costly structural breakdowns. This technology is a game-changer for planning and engineering, not only saving billions of dollars, but also supporting sustainability efforts.

    Of course, replicating individual humans requires much more complex modelling than when building digital twins of bridges or buildings.

    For a start, humans don’t live in a structured world, but rather inhabit complex social and physical environments. We are variable, moody and motivated by any number of factors, from hunger to tiredness, love to anger. We can change our past patterns with conscious thought, as well as act spontaneously and with creativity, challenging the status quo if needed.

    Because of this, creating perfect digital twins of humans is incredibly challenging – if not impossible. Nevertheless, digital doppelgangers are still useful for a number of purposes.

    The digital patient

    Clinicians increasingly use scans to create virtual models of the human body, with which to plan operations or create artificial body parts.

    By adding extra biometric information (for example, blood chemistry, biomechanics and physiological responses), digital models can also mirror real-world bodies, live and in real time.

    Creating digital patients can optimise treatment responses in a move away from one-size-treats-all healthcare. This means drugs, dosages and rehabilitation plans can be personalised, as well as being thoroughly tested before being applied to real people.

    Digital patients can also increase the accessibility of medical expertise to people living in remote locations. And what’s more, using multiple digital humans means some clinical trials can now be performed virtually.

    Scaled up further, this technology allows for societal-level simulations with which to better manage public health events, such as air pollution, pandemics or tsunamis.

    The digital athlete

    Imagine being able to train against a digital replica of an upcoming opponent.

    Sports scientists are increasingly working with digital athletes to trial and optimise strength and conditioning regimes, as well as test competitive play. This helps to increase the chances of winning as well as prevent injuries.

    Researchers at Griffith University have been pioneers in this space, creating models of real athletes. They have also trialled wearable sensors in patches or smart clothing that can measure a range of biomarkers: blood pressure and chemistry, temperature, and sweat composition.

    CSIRO and the Australian Sports Commission have also used digital humans to improve the performance of divers, swimmers and rowers.

    The digital worker

    As well as building virtual replicas of sports people, scientists at CSIRO have also being building virtual simulations of employees in various workplaces, including offices and construction sites.

    This is helping them analyse movements, workflows and productivity – with the broader aim of preventing workplace injuries. For example, scientists can use a model of a digital worker to assess how heavy items are lifted in order to better understand how this puts strain on different parts of the body.

    With 6.1 million Australians impacted by musculoskeletal conditions, preventing workplace injuries can not only improve lives, but save the economy billions of dollars.

    Digital dopplegangers can help prevent workplace injuries.
    Rose Marinelli/Shutterstock

    Responsible development of digital doppelgangers

    Building a digital doppelgangers requires a lot of very personal data. This can include scans, voice and video recordings, or performance and health data.

    Personal data can also be harvested from an array of other sources. These include as cars, mobile phones, and internet-connected smart devices.

    The creation of data-hungry digital replicas is forcing us to redefine legal rights. Think copyright, deepfakes and identity theft or online scams.

    The power of this technology is inspiring. But ensuring a future in which we live happily alongside our digital doppelgangers will require governments, technology developers and end-users to think hard about issues of consent, ethical data management and the potential for misuse of this technology.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. ‘Digital doppelgangers’ are helping scientists tackle everyday problems – and showing what makes us human – https://theconversation.com/digital-doppelgangers-are-helping-scientists-tackle-everyday-problems-and-showing-what-makes-us-human-247574

    MIL OSI Analysis – EveningReport.nz –

    January 30, 2025

  • MIL-OSI Security: 3d LAAB’s Inaugural MADIS Live-Fire

    Source: United States INDO PACIFIC COMMAND

    POHAKULOA TRAINING AREA, Hawaii  –  

    U.S. Marines with 3d Marine Littoral Regiment, 3d Marine Division, conducted a counter unmanned aerial system live-fire training event utilizing the Marine Air Defense Integrated System – a ground-based air defense capability, on January 25, 2025, to commemorate the addition of the MADIS and the months of operational testing and evaluation required to field this new weapon system.

    Lt. Col. Matthew E. Sladek, Commanding Officer, 3d Littoral Anti-Air Battalion, stated, “The fielding of the Marine Air Defense Integrated System to the Marines of 3d Littoral Anti-Air Battalion is the culmination of years of tireless work from government and industry teammates across the country. The delivery of the critical capabilities the system provides to 3d Littoral Anti-Air Battalion and by extension 3d Marine Littoral Regiment, makes the stand-in-force more survivable and lethal in the conduct of contested littoral operations against emerging aerial threats. As a career Low Altitude Air Defender Marine, it is truly amazing to have watched the Marine Air Defense Integrated System transition from an idea to a capability and with it, the modernization of Marine Corps short range air defense capabilities. Now the real work begins.”

    The MADIS is operated by the Marines of 3d LAAB’s Ground-Based Air Defense Battery. Giving low-altitude air defense Marines the ability to detect, track, identify, and engage various unmanned aerial systems with various missiles, air-to-air launchers, chain guns, machine guns, and simulated munitions – all of which are part of the MADIS weapon system.

    The MADIS live-fire event marked the first time this weapon system has been fired on a Hawaiian island since it’s fielding in December. Attendees were able ask questions to commanders and subject matter experts about the fielding process and the operational value of the system. Training with the MADIS reinforces the Marine Corps’ threat-informed, concept-based approach to Force Design and modernization, and 3d MLR’s support to allies and partners in the Indo-Pacific region.

    Col. John G. Lehane, Commanding Officer, 3d MLR, emphasized the importance of the MADIS capability, stating, “Fielding of MADIS to the 3d Marine Littoral Regiment enhances our collective lethality, and provides remarkable tactical flexibility given them system’s reach, range and mobility. We are really excited to have this capability added to our already robust ability to coordinate air and missile defense actions, as it adds an organic layer to defeat a would-be adversary’s ability to attack our formations.”

    The addition of the MADIS – a highly mobile, short-range, surface-to-air defense weapon – provides 3d MLR an enhanced air and missile defense capability. A key component of the Marine Corps’ Force Design initiative, the mobile MADIS weapons system increases 3d MLR’s tactical flexibility by extending the range of the airspace which 3d MLR is able to sense and defend without support from the Joint Force.

    3d Marine Littoral Regiment is a dedicated U.S. Marine Corps unit specializing in amphibious and littoral warfare operations. Stationed on Oahu, Hawaii, and deployed throughout the Indo-Pacific region, 3d MLR is committed to promoting regional security and stability through strategic partnerships and collaborative efforts with partner nations and Allies.

    For media inquiries, please contact: 2nd Lt Emily Zito, 3d Marine Littoral Regiment COMMSTRAT, emily.j.zito.mil@usmc.mil

    MIL Security OSI –

    January 30, 2025

  • MIL-OSI USA: Reed Announces Committee Leadership Assignments for 119th Congress

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed
    WASHINGTON, DC – Today, after the Senate Appropriations Committee fully organized, U.S. Senator Jack Reed (D-RI) announced his full slate of committee and subcommittee assignments for the 119th Congress. 
    Senator Reed will continue serving on four ‘A’ committees: Armed Services; Appropriations; Banking, Housing, and Urban Affairs; and the Select Committee on Intelligence.  These assignments include two of the three ‘Super A’ Committees: Armed Services and Appropriations.
    Senator Reed will serve as Ranking Member of the Senate Armed Services Committee (SASC) and as the Ranking Member of the Appropriations Subcommittee on Financial Services and General Government (FSGG), which has jurisdiction over a diverse group of agencies responsible for regulating the financial and telecommunications industries; collecting taxes and providing taxpayer assistance; providing small business assistance; overseeing the White House and judicial branch operations, and the District of Columbia; construction and management of federal buildings; and overseeing the Federal workforce.
    With these assignments, Reed is well-positioned to deliver for Rhode Island while overseeing the U.S. Department of Defense and federal spending decisions through the appropriations process.
    “These key committee posts help me fix our roads and bridges, strengthen our economy, deliver for Rhode Island, and chart a responsible fiscal path.  My new assignment on the Financial Services and General Government Subcommittee provides another tool to support small business growth, expand economic opportunity, boost Rhode Island’s broadband connections, and ensure the health and safety of our financial markets,” said Reed.  “As Congress grapples with a range of complex challenges, I will do everything in my power to help lower prices for working families and ensure Rhode Islanders’ needs are met.  I will continue to be a relentless advocate for our state and focus on the issues that Rhode Islanders care about.  And I will promote and uphold the constitutional role of Congress, including Congress’s power of the purse. ”
    ARMED SERVICES COMMITTEE
    Senator Reed is the Ranking Member of the powerful Senate Armed Services Committee, which is responsible for overseeing the U.S. Department of Defense (DOD), military services operating across the domains of land, sea, air, cyberspace, and space, and all DOD agencies, including their budgets and policies, and national security aspects of nuclear energy.  Each year, SASC is tasked with producing and passing the National Defense Authorization Act (NDAA).
    In 2024, under Reed’s leadership as SASC Chairman, Congress passed the fiscal year 2025 National Defense Authorization Act (NDAA), which authorized $883.7 billion for the U.S. Department of Defense (DOD) and the national security programs of the U.S. Department of Energy.  The NDAA offers a blueprint to equip, supply, and train U.S. forces; provide for military families; and strengthen oversight of the Defense Department and military programs. The defense industry is a high-tech sector that contributes to Rhode Island’s economic growth, generates good-paying jobs, and has been a resilient segment of the state’s economy. According to the latest Rhode Island data, the defense industry generated over $4.3 billion in annual economic impact for Rhode Island and a total employment share of 6.2 percent of the state’s workforce.
    In addition to his leadership on the Armed Services Committee, Reed is also a member of the Appropriations Subcommittee on Defense, which provides him with additional oversight responsibilities in determining how defense dollars are spent.
    APPROPRIATIONS COMMITTEE
    Senator Reed will continue to serve as Rhode Island’s only member of the powerful Appropriations Committee, which controls the funding of the federal government.
    Senator Reed is the third most senior Democrat on the Appropriations Committee.  He works tirelessly to direct federal funding to the Ocean State to create jobs, strengthen infrastructure, and support economic and community development initiatives.
    Senator Reed will give up his leadership post on the Subcommittee on the Legislative Branch in order to help lead the Financial Services and General Government Subcommittee. 
    The FSGG subcommittee drafts the spending plan and oversees annual funding for financial-related agencies including the U.S. Department of Treasury; the Securities and Exchange Commission (SEC); and the Internal Revenue Service (IRS).  It is responsible for funding the Executive Office of the President and federal election security initiatives.  The panel also has jurisdiction over two dozen key agencies and programs that have a direct impact on Rhode Island, including:
    – The U.S. Small Business Administration (SBA), which supports local entrepreneurs and small businesses with outreach and loans and also provides loans following federally-declared disasters.
    – The Federal Trade Commission (FTC), which helps ensure competition in broad sectors of the economy and helps protect consumers from false advertising and business practices.
    – The Federal Communications Commission (FCC), which has jurisdiction over telecommunications and broadband matters.
    – The Office of National Drug Control Policy (ONDCP), which provides funding for High Intensity Drug Trafficking Areas nationwide and to Rhode Island.
    – The Federal Election Commission (FEC), with has jurisdiction over federal campaign finance laws.
    – The General Services Administration (GSA), which manages federal properties in Rhode Island and nationwide.
    – The Community Development Financial Institutions (CDFI) Fund which provides hundreds of millions annually to generate economic growth in local communities and provide access to credit and technical assistance to underserved areas.
    Additionally, Senator Reed will serve on five other Appropriations Subcommittees: Commerce, Justice, Science, and Related Agencies (CJS); Defense; Labor, Health and Human Services, Education, and Related Agencies (Labor-H); Military Construction, Veterans Affairs, and Related Agencies (MilCon-VA); and Transportation, Housing, and Urban Development (THUD).
    BANKING, HOUSING & URBAN AFFAIRS
    A champion of affordable housing, consumer protection, and mass-transit, Senator Reed will continue serving as a key member of the Banking, Housing & Urban Affairs Committee, which has broad oversight over our nation’s financial institutions, capital markets, consumer finance, monetary policy, and housing and mass-transit programs. 
    Senator Reed is the most senior Democratic member of the panel, but Senate rules dictate that members may only serve atop one full committee at a time.
    Senator Reed has used his Banking Committee post to author Wall Street reform and consumer protection laws, including his ‘warrants law,’ which forced the return of over $10 billion dollars to taxpayers.  He also successfully urged the U.S. Securities and Exchange Commission (SEC) to focus greater attention on climate risk disclosures for public companies.  The committee also oversees federal housing policy and authorizes mass-transit investments, and Senator Reed used his role on the committee led to create two affordable housing funds: the Housing Trust Fund and the Capital Magnet Fund.
    It was Senator Reed’s leadership on the Banking, Housing, and Urban Affairs Committee, coupled with his work on the Appropriations Committee, that earned him a spot as one of twenty members of the bipartisan working group that was tasked with developing the CARES Act (Public Law No. 116-136).  Senator Reed was the driving force behind the successful effort to create the $150 billion Coronavirus Relief Fund (CRF) in the CARES Act and successfully secured a small state minimum of $1.25 billion in the law.  Senator Reed continues to play an active role in pushing legislation to direct additional federal funds to states and local governments to help save lives and address the economic impact caused by the pandemic.
    As America faces an affordable housing crisis, which worsened during the pandemic, Senator Reed will play a key role in providing relief for renters and homeowners, and helping to revitalize communities by expanding the supply of affordable housing. Reed will also use his seat on this committee to boost mass-transit infrastructure in order to help connect communities and more Americans to jobs and economic opportunity.
    Senator Reed will serve on three key Banking subcommittees: Economic Policy; Financial Institutions and Consumer Protection; and Securities, Insurance, and Investment.
    INTELLIGENCE COMMITTEE
    By virtue of his leadership of the Senate Armed Services Committee, Reed is also an ex officio member of the high-profile Senate Select Committee on Intelligence, which oversees the U.S. Intelligence Community.  As an ex officio member of the panel, Senator Reed regularly participates in open and closed-door briefings and hearings with top intelligence officials from the Office of the Director of National Intelligence (ODNI), the Central Intelligence Agency (CIA), the Defense Intelligence Agency (DIA), and the National Security Agency (NSA), but he does not vote in committee.
    The Intelligence Committee was established in 1976 to oversee the range of civilian and military agencies and departments that make up the U.S. Intelligence Community, and has wide influence over U.S. national security and foreign policy.
    The President of the United States is required by law to ensure that the Intelligence Committee is kept “fully and currently informed” of intelligence activities.  As a result, U.S. intelligence agencies must notify the Committee of its activities, including covert actions.

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI Banking: DeepSeek R1 is now available on Azure AI Foundry and GitHub

    Source: Microsoft

    Headline: DeepSeek R1 is now available on Azure AI Foundry and GitHub

    DeepSeek R1 is now available in the model catalog on Azure AI Foundry and GitHub, joining a diverse portfolio of over 1,800 models, including frontier, open-source, industry-specific, and task-based AI models. As part of Azure AI Foundry, DeepSeek R1 is accessible on a trusted, scalable, and enterprise-ready platform, enabling businesses to seamlessly integrate advanced AI.

    DeepSeek R1 is now available in the model catalog on Azure AI Foundry and GitHub, joining a diverse portfolio of over 1,800 models, including frontier, open-source, industry-specific, and task-based AI models. As part of Azure AI Foundry, DeepSeek R1 is accessible on a trusted, scalable, and enterprise-ready platform, enabling businesses to seamlessly integrate advanced AI while meeting SLAs, security, and responsible AI commitments—all backed by Microsoft’s reliability and innovation. 

    Build transformative AI apps with Azure AI Foundry

    Accelerating AI reasoning for developers on Azure AI Foundry

    AI reasoning is becoming more accessible at a rapid pace transforming how developers and enterprises leverage cutting-edge intelligence. As DeepSeek mentions, R1 offers a powerful, cost-efficient model that allows more users to harness state-of-the-art AI capabilities with minimal infrastructure investment. 

    One of the key advantages of using DeepSeek R1 or any other model on Azure AI Foundry is the speed at which developers can experiment, iterate, and integrate AI into their workflows. With built-in model evaluation tools, they can quickly compare outputs, benchmark performance, and scale AI-powered applications. This rapid accessibility—once unimaginable just months ago—is central to our vision for Azure AI Foundry: bringing the best AI models together in one place to accelerate innovation and unlock new possibilities for enterprises worldwide. 

    Develop with trustworthy AI

    We are committed to enabling customers to build production-ready AI applications quickly while maintaining the highest levels of safety and security. DeepSeek R1 has undergone rigorous red teaming and safety evaluations, including automated assessments of model behavior and extensive security reviews to mitigate potential risks. With Azure AI Content Safety, built-in content filtering is available by default, with opt-out options for flexibility. Additionally, the Safety Evaluation System allows customers to efficiently test their applications before deployment. These safeguards help Azure AI Foundry provide a secure, compliant, and responsible environment for enterprises to confidently deploy AI solutions. 

    How to use DeepSeek in model catalog

    • If you don’t have an Azure subscription, you can sign up for an Azure account here.
    • Search for DeepSeek R1 in the model catalog.
    • Open the model card in the model catalog on Azure AI Foundry.
    • Click on deploy to obtain the inference API and key and also to access the playground. 
    • You should land on the deployment page that shows you the API and key in less than a minute. You can try out your prompts in the playground.
    • You can use the API and key with various clients.

    Get started today

    DeepSeek R1 is now available via a serverless endpoint through the model catalog in Azure AI Foundry. Get started on Azure AI Foundry here and select the DeepSeek model.

    On GitHub, you can explore additional resources and step-by-step guides to integrate DeepSeek R1 seamlessly into your applications. Read the GitHub Models blog post.

    Coming soon: Customers will be able to use distilled flavors of the DeepSeek R1 model to run locally on their Copilot+ PCs. Read the Windows Developer blog post.

    As we continue expanding the model catalog in Azure AI Foundry, we’re excited to see how developers and enterprises leverage DeepSeek R1 to tackle real-world challenges and deliver transformative experiences. We are committed to offering the most comprehensive portfolio of AI models, ensuring that businesses of all sizes have access to cutting-edge tools to drive innovation and success. 

    Azure AI Foundry

    Develop and deploy custom AI apps and APIs responsibly with a comprehensive platform.

    MIL OSI Global Banks –

    January 30, 2025

  • MIL-OSI USA: Cornyn Questions HHS Secretary Nominee RFK Jr. in Confirmation Hearing

    US Senate News:

    Source: United States Senator for Texas John Cornyn
    WASHINGTON – Today during the Senate Finance Committee’s hearing on the nomination of Robert F. Kennedy Jr. to serve as Secretary of the U.S. Department of Health and Human Services (HHS) under the Trump administration, U.S. Senator John Cornyn (R-TX) discussed with him the need to locate the unaccompanied migrant children who were lost in the interior U.S. under Joe Biden, improve Americans’ access to mental and behavioral health services, and strengthen the President’s Emergency Plan for AIDS Relief (PEPFAR) program after its success in the first Trump administration. Excerpts are below, and video can be found here.
    On Locating Unaccompanied Migrant Children Lost by the Biden Administration:
    CORNYN: “There were roughly 500,000 children—unaccompanied minors—that were placed with sponsors in the interior of the United States. The previous administration took the position that it was not the federal government’s responsibility once these children were placed with these sponsors.”
    “I look forward to working with you to find those children and to make sure that they’re not being abused.”
    KENNEDY: “Many of them we know have been sex trafficked, and childhood slavery, and it is a plight on America’s moral authority, and we need to find those kids.”
    On Improving Access to Mental and Behavioral Health Services:
    CORNYN: “Millions of Americans are experiencing mild to moderate mental health and substance abuse issues, yet many struggle with timely and effective access.”
    “Primary care physicians are most likely to be seeing these individuals as opposed to a specialist, and it makes it important that these individuals, primary care physicians, be trained in patient-centered care, which would strengthen the integration of behavioral health care with primary care services. Is this something that you are concerned about, something you’d be willing to work with us on in order to implement?”
    KENNEDY: “This is a priority for me.”
    “I was a heroin addict for 14 years. I’m in 42 years in recovery… I hear the many stories about denial or the barriers to access to care, and we need to improve that.”
    On Strengthening PEPFAR:
    CORNYN: “Under the first Trump administration, the number of people receiving HIV treatment in Africa through the President’s Emergency Plan for AIDS Relief, otherwise known as PEPFAR, it increased.”
    “Failure to continue this program, in my view, would risk ceding that leadership to adversaries like China… Would you work with me and my colleagues to make sure that this program continues to provide lifesaving antiviral drugs to people who are most in need?”
    KENNEDY: “I absolutely support PEPFAR, and I will happily work with you to strengthen the program.”

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI USA: Hawley Introduces Legislation to Decouple American AI Development from Communist China

    US Senate News:

    Source: United States Senator Josh Hawley (R-Mo)

    Wednesday, January 29, 2025

    Today, U.S. Senator Josh Hawley (R-Mo.) introduced legislation to protect America’s artificial intelligence (AI) development from China.
    “Every dollar and gig of data that flows into Chinese AI are dollars and data that will ultimately be used against the United States,” said Senator Hawley. “America cannot afford to empower our greatest adversary at the expense of our own strength. Ensuring American economic superiority means cutting China off from American ingenuity and halting the subsidization of CCP innovation.”
    Senator Hawley’s new legislation comes after China unveiled “DeepSeek,” a data-harvesting, low-cost AI model that sparked international concern and sent American technology stocks plummeting.
    Senator Hawley’s Decoupling America’s Artificial Intelligence Capabilities from China Act would:
    Prohibit the import from or export to China of artificial intelligence technology;
    Prohibit American companies from conducting AI research in China or in cooperation with Chinese companies; and
    Prohibit U.S. companies from investing money in Chinese AI development.
    Full text of the bill is available here.

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI USA: Schatz: Senate Must Stop RFK Jr.’s Dangerous Nomination

    US Senate News:

    Source: United States Senator for Hawaii Brian Schatz
    WASHINGTON – Ahead of confirmation hearings this week on the nomination of Robert F. Kennedy Jr. to be Secretary of the Department of Health and Human Services, U.S. Senator Brian Schatz (D-Hawai‘i) again urged his colleagues to vote no, highlighting Kennedy’s pivotal role in causing a measles outbreak in Samoa in 2019, which resulted in over 5,700 people getting infected and 83 people – mostly young children – dying.
    “The unique threat that Robert F. Kennedy Jr. poses to our country really cannot be overstated. And now it is up to us, the 100 members of the United States Senate, to deny him the opportunity to use America as one big test lab for bygone diseases,” said Senator Schatz. “I understand my Republican colleagues are facing a lot of pressure from within. But this nomination is not actually like the others. Look at what he’s done. Time and time again, he’s abandoned every physician’s first principle: Do no harm. He has caused disease. He has caused pain. He has caused death.”
    Senator Schatz continued, “The vote we’re going to be taking on this nominee is much more than your party or mine. It’s life or death. And I promise you, if this person is confirmed, it will not age well: not in a Republican primary, not in a Democratic primary, not in your family, not in your community. Nowhere will an RFK ‘aye’ vote age well. This person is going to cause disease across the United States. I urge a no vote.”
    Schatz likened Kennedy’s desire to run a “natural experiment” to see how people in Samoa would fare against the measles without protection to the Tuskegee experiment, in which the United States Public Health Service purposefully withheld treatment from men with syphilis in order to study the disease’s progression. The first person to raise the alarm about the cruelty of the experiment in 1965 was Schatz’s father, Dr. Irv Schatz.
    “I never thought that 60 years later, I’d be standing in the very body that passed legislation in response to that shameful period, arguing against confirming someone who wants to replicate that experiment at scale. That’s what RFK Jr. wants to do. He wants to use Americans as lab rats in a national experiment. And if it means bringing back the measles or the mumps or rubella or polio, so be it. That is the cost of doing business, as he sees it,” said Senator Schatz.
    A transcript of Senator Schatz’s remarks is below. Video is available here.
    If you heard your doctor say, ‘there’s no vaccine that is safe or effective.’ Or ‘there are much better candidates than HIV for what causes AIDS.’ Or ‘school shootings started happening with the introduction of Prozac and other drugs.’ If your physician said any of those things to you, you would look for a new physician.
    And yet, this week, my colleagues on the Senate Finance Committee and Health Committee are going to consider the nomination of someone who’s not only said all those things – and more. But if confirmed, he would be responsible for the health and well-being of the entire nation.
    The unique threat that Robert F. Kennedy Jr. poses to our country really cannot be overstated. And now it is up to us, the 100 members of the United States Senate, to deny him the opportunity to use America as one big test lab for bygone diseases. And I want to explain what I mean by that. He thinks that FDA trials are not enough to determine the efficacy of a vaccine. And so he’s suggesting that we use placebo in the population. What does that mean? Something might save someone’s life, and something might be essentially a sugar pill. But you don’t get to know. There are international conventions against this approach. The Tuskegee experiments conducted by the United States Public Health Service were universally rejected, and the Congress banned this approach because you cannot withhold lifesaving care from anyone.
    Now, saying crazy things doesn’t seem to be disqualifying for a nominee these days, I understand. But it’s not just that he said crazy things or holds deranged views. It’s that he has acted on them. And I want everybody to listen to what exactly happened in Samoa – not 20 years ago, not ten years ago, but in 2019. While he was chairman of the anti-vaccine group, he flew to Samoa because he sensed an opportunity to exploit people’s hesitations about taking the measles vaccine.
    People were understandably worried after an accident… involving improperly prepared vaccines killed two babies. It was a tragedy, and it was a costly mistake, but not a reason to abandon the measles vaccine altogether. But RFK sought to make people more afraid. He discouraged people from taking the vaccine because he wanted to run a “natural experiment.” To see how people fared against the disease without protection. To see how people fared against the disease without protection? This guy is up for HHS, Health and Human Services? This guy just wants to see what would happen if we didn’t give people the lifesaving protection that they need. He literally flew to the other side of the planet to turn people’s fears into a data collection opportunity.
    For some context here. Samoa is a small country and had a population of around 200,000 people at the time. People knew each other and word got around fast. A Kennedy was in town saying a thing. And so it was no small thing that this man from America, with the last name Kennedy, pretending to be a health expert, was there peddling all kinds of lies to prevent people from getting a lifesaving vaccine.
    And those lies spread fast. Vaccination rates plummeted, and within five months, Samoa had a measles outbreak. 5,700 people were infected with the measles. 83 people died. Almost all of them were children. That was the conclusion of Mr. Kennedy’s natural experiment. Children died. This isn’t some ancient history I’m digging up here. This was less than six years ago, and it is alarmingly reminiscent of one of the darkest chapters in our country’s history with the Tuskegee experiment.
    For 40 years, beginning in 1932, the United States Public Health Service ran an experiment with 600 black men in Alabama. The majority of them had syphilis, and the objective was to “observe the disease process.” And so even when penicillin became the standard of care in 1947, the men who needed that treatment, who could have been given lifesaving care, were denied penicillin. Researchers did nothing as men died and they went blind because they wanted to see how the disease would develop. A natural experiment.
    It took a young doctor, not long out of medical school, who read about the study in a medical journal and couldn’t believe his eyes. He could not understand how the United States government had come to view these poor sharecroppers as expendable, as subhuman. He thought about the Hippocratic Oath, that he and every doctor like him had sworn to. What happened to, “first, do no harm”?
    And so, not knowing what else to do, but knowing he was risking a whole lot by speaking out, he wrote to the study’s authors. And I want to read a bit of what he wrote: “I’m utterly astounded by the fact that physicians allow patients with a potentially fatal disease to remain untreated when effective therapy is available. I assume you feel that the information which is extracted from the observation of this untreated group is worth their sacrifice. If this is the case, then I suggest the United States Public Health Service and those physicians associated with it in this study need to reevaluate their moral judgments in this regard”.
    The man who wrote that letter, and was the first, and for a long time, the only person to sound the alarm about the depravity of the Tuskegee experiment was my dad, Dr. Irv Schatz. It’s one of the many reasons that he’s my hero. But I never thought that 60 years later, I’d be standing in the very body that passed legislation in response to that shameful period, arguing against confirming someone who wants to replicate that experiment at scale. That’s what RFK Jr. wants to do. He wants to use Americans as lab rats in a national experiment. And if it means bringing back the measles or the mumps or rubella or polio, so be it. That is the cost of doing business, as he sees it.
    I understand my Republican colleagues are facing a lot of pressure from within. It’s a new administration, and you want to give them deference. An executive, generally speaking, gets to have their team. But this nomination is not actually like the others, even if you don’t want to take Mr. Kennedy’s words so literally, maybe you think he’s just wondering aloud, look at his actions. Look at what he’s done. Time and time again, he’s abandoned every physician’s first principle: Do no harm. “I shall do by my patients as I would be done by. And I shall minimize suffering whenever a cure cannot be obtained.” That’s part of the oath every medical student takes at graduation before they can practice. And yet, the person nominated to lead the country’s entire health system has consistently done the exact opposite. He has caused disease. He has caused pain. He has caused death.
    And so the vote we’re going to be taking on this nominee is much more than your party or mine. It’s life or death. And I promise you, if this person is confirmed, it will not age well: not in a Republican primary, not in a Democratic primary, not in your family, not in your community. Nowhere will an RFK ‘aye’ vote age well. This person is going to cause disease across the United States. I urge a no vote.

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI USA: Durbin: President Trump’s Proposed Freeze On NIH’s Work Is Cruel And Will Have Life Or Death Consequences

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin
    January 29, 2025
    WASHINGTON – In a speech on the Senate floor, U.S. Senate Democratic Whip Dick Durbin (D-IL) spoke on the serious consequences the Trump Administration’s plan to freeze federal assistance would have on the National Institutes of Health (NIH) and medical research. NIH supports more than 400,000 jobs nationwide—jobs focused on conducting vital medical research that leads to new cures and treatments that improve and save lives. Each year, NIH awards nearly $38 billion in research grants to all 50 states and the District of Columbia. They support hundreds of thousands of jobs, generate $92 billion in economic activity, and facilitate life-saving medical research.
    On Monday night, President Trump ordered a stop to federal grant funding, including at NIH. Today, the White House Office of Management and Budget (OMB) and the White House Press Secretary sent out conflicting information related to whether or not the freeze had been rescinded.
    Durbin said, “Because of work funded by NIH with taxpayer dollars, people with cancer are living longer and even being cured, HIV/AIDS is no longer a death sentence, and groundbreaking treatments exist to slow the progression of neurological disorders such as ALS and dementia. Chances are, if you or a loved one take any medication, you have NIH to thank—because 99 percent of drugs approved over the past decade benefited from NIH research funding. And, chances are, if you or a loved one ever get sick and are wondering what options exist to save your life, your doctor will suggest a treatment developed with NIH funding.”
    “Do you know what the leading causes of death are in the U.S.? The number one cause of death in the United States is heart disease,” Durbin continued.  “But there are others. Cancer; unintentional injuries, such as drug overdoses; stroke; respiratory disease; Alzheimer’s; and diabetes. NIH researchers work every day to find breakthroughs to save lives in America from these leading causes of death in the U.S. When you freeze this agency’s work, when you tell your researchers to stay home and not to spend a penny because it can’t be compensated, it means you’re putting a stop to the research that critically is trying to keep us alive. You handicap our nation’s effort to develop new cures and treatments that address the top causes of death.”
    Durbin continued, “NIH is considered the world’s leader in biomedical research—providing treatments and cures that other people across the world dream of. President Trump’s proposed freeze on NIH’s work is cruel and will have life or death consequences. If your parent has dementia, you want NIH’s work to continue. If your husband or wife has been diagnosed with glioblastoma, ALS, or Parkinson’s, you need NIH’s work to continue. If you have a child diagnosed with a rare childhood cancer or heart condition—you are desperate for NIH’s work to continue.”
    “This should not be a partisan issue,” Durbin concluded. “Over the past decade, Congress has, on a bipartisan basis, increased NIH’s budget by 60 percent because we believe in their work. This federal freeze must not be allowed to take effect. I would hope my Republican colleagues would join me in calling on President Trump to reconsider this harmful policy. Lives depend on it.”
    Video of Durbin’s remarks on the Senate floor is available here.
    Audio of Durbin’s remarks on the Senate floor is available here.
    Footage of Durbin’s remarks on the Senate floor is available here for TV Stations.
    -30-

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI United Kingdom: UK redoubles Horizon push as Kyle forges deeper R&I links with EU

    Source: United Kingdom – Executive Government & Departments 2

    UK Science and Tech Secretary announces renewed push to turbo-charge UK-EU science and technology links, to tackle shared global challenges.

    • UK Science and Tech Secretary announces renewed push to turbo-charge UK-EU science and technology links, to tackle shared global challenges
    • Peter Kyle met colleagues in the European Commission, yesterday, to discuss how to strengthen and deepen European science and tech ties
    • New campaign to drive UK participation in Horizon Europe, and UK joins cutting-edge European research consortia

    New plans have been unveiled to make Britain’s science and technology links with the EU stronger and deeper, following a fruitful visit to Brussels by the UK’s Science and Technology Secretary, to meet some of the new slate of European Commissioners.

    Today (Thursday 30 January) the government is announcing the launch of a new nationwide advertising campaign to further boost UK participation in Horizon Europe, the world’s largest programme of research collaboration. The UK is also joining 4 European Research Infrastructure Consortia (ERICs) to further boost collaborative ties between researchers, across the Channel.

    The EU is an innovation powerhouse – spending over €380 billion on R&D in 2023(1) – and fostering deep and high-quality links between the continent’s brightest minds, and the UK’s, will be critical if we are to seize the promise for science and tech innovations to support the Government’s Missions to grow the economy, fix the NHS and improve health outcomes and deliver clean energy under the Plan for Change. As the plan sets out, promoting innovation and world-class research will be foundational to rebuilding the foundations of the economy, and kickstarting growth.

    The recent AI Opportunities Action Plan – this government’s plan to unleash AI to deliver a decade of national renewal – also highlighted how close cooperation with our European allies on the latest technologies will be critical to our shared prosperity and wellbeing. An example of this is the UK’s involvement in the EuroHPC Joint Undertaking, which is developing a world-class supercomputing infrastructure across the European continent.

    Peter Kyle’s visit saw him hold high-level talks with Commissoners Zaharieva, Kubilius, and McGrath, to discuss how the UK and the EU can tackle some of the biggest problems facing the world, and grow our economies, by working together to seize the enormous potential of science and tech breakthroughs from AI to life sciences.

    UK Science and Technology Secretary Peter Kyle said:

    There is no question about it: we stand our best chance of tackling the great challenges of our era, from climate change to public health, to growing economies that work for everyone, by bringing the brightest minds from across the UK and the European Union, together.

    The UK is determined to give our researchers, innovators and businesses the opportunities and platforms they need to bring their great ideas to life, to the benefit of us all – all of which is highlighted by our new Horizon ad campaign. I’m pleased to have had such fruitful conversations with my European friends and colleagues, on taking this vital partnership even further.

    Recent, initial signs suggest UK association to Horizon is trending in the right direction. For instance, in the latest ERC Synergy Grants, in which the UK hosted 18 projects – the second highest number. But the government is determined to go even further to help our innovators seize this opportunity.

    The advertising campaign will bring the potential benefits of Horizon participation to life by shining a light on examples of businesses and researchers, right across the UK, who have benefited from funding. That includes Nova Innovation, a company developing turbines for the tidal energy industry, and Electra Commercial vehicles, who are developing electric trucks that can go further without needing to recharge.

    It is part of comprehensive action to support the effective uptake of opportunities in Horizon Europe, including events, financial and networking support. The roadshow events across the country have offered insights into bidding and networking opportunities, while Pump Priming grants, in collaboration with the British Academy and Innovate UK, are designed to support the establishment of consortia and development of high-quality applications.

    There are further plans to help British business people and researchers network with potential European R&D partners, as Innovate UK will take UK delegations to Italy, Germany and Spain for a series of Horizon Europe Brokerage events. These events will also help those involved work on how to build the best possible bids for Horizon funding together with their overseas colleagues.

    The 4 European Research Infrastructure Consortia the UK is joining are:

    • European Holocaust Research Infrastructure
    • European Research Infrastructure for Heritage Science
    • Low Frequency Array
    • International Centre for Advanced Studies on River-Sea Systems

    These partnerships will enable UK researchers to collaborate on projects ranging from historical research, to astronomy, to advanced river systems studies.

    Sources

    1. https://ec.europa.eu/eurostat/

    DSIT media enquiries

    Email press@dsit.gov.uk

    Monday to Friday, 8:30am to 6pm 020 7215 300

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    Updates to this page

    Published 30 January 2025

    MIL OSI United Kingdom –

    January 30, 2025

  • MIL-Evening Report: If the government wants science to have an economic impact it has to put its money where its mouth is

    Source: The Conversation (Au and NZ) – By Nicola Gaston, Director of the MacDiarmid Institute for Advanced Materials and Nanotechnology, University of Auckland, Waipapa Taumata Rau

    jittawit21/Shutterstock

    Billed as the most significant change to the science system in 30 years, last week’s announcement of major structural changes to scientific research institutions was objectively a big deal.

    But the devil will be in the details. The proposed reforms are focused on the economic impact of the science sector and are based on the first of two reports from the Science System Advisory Group (SSAG).

    Success will depend on how they are implemented and, most of all, on the sector receiving sufficient funding.

    The government’s reforms include:

    • the merger of seven public Crown Research Institutes to create three larger Public Research Organisations (PROs)

    • the creation of a fourth new PRO focused on “advanced technology” such as artificial intelligence, synthetic biology and potentially cleantech

    • the disestablishment of Callaghan Innovation and the creation of a new agency called “Invest New Zealand” to target international investment

    • the creation of a new national intellectual property policy, meaning scientists working in PROs and in the university system are on a level playing field when it comes to commercialisation

    • the establishment of a Prime Minister’s Science, Innovation and Technology Advisory Council to provide strategic direction and oversight.

    As the reforms move forward, the government will have to answer several questions. For example, how will the expertise relating to advanced technologies, much of which currently sits within our university sector, be moved into the new PRO?

    And how will the funding model be changed as these new PROs are established?

    Long running issues

    Overall, the higher level changes are positive. Reforms have been a long time coming and are based on years of discussion within the crown research sector.

    But we need to look at the reforms in the context of the science advisory group’s first report.

    The report is strongly and deliberately focused on the potential economic impact of science and research. The authors outline how this must be supported by a properly functioning system.

    According to the authors, a lack of strategy from the highest level of government is a barrier for the sector.

    It is clear the advisory group recommends structural change (such as the PRO model). But it is also explicit that sufficient research funding is a necessary condition for these reforms to work:

    The SSAG stands firmly of the view that our parsimonious attitude to research funding is a core reason that New Zealand has become an outlier in performance on productivity growth.

    Barriers to progress

    The advisory group identified certain cultural attitudes, such as New Zealand’s “number-eight wire” thinking, as a reason the country doesn’t value research as it should. The group also strongly advocated for bipartisan agreement on funding systems and investment levels.

    The group had strongly positive things to say about research in the social sciences and mātauranga Māori through the lens of economic growth.

    There is no debate that research into Māori culture and knowledge is an obligation of the New Zealand research system and that this should be largely determined by experts in mātauranga Māori. We will be recommending a distinct funding stream in the proposed National Research Foundation.

    Unfortunately, this government’s defunding of the social sciences and humanities, announced in December, suggests it has already made its mind up on the value of these disciplines.

    Missing the bigger picture

    Reading the full report, there is the sense that while the government announcement has taken the most visible recommendations for change, it has missed the bigger picture: the need for sufficient funding to strengthen the sector as a whole and help New Zealand become internationally competitive.

    This means we need to benchmark ourselves against other countries and their economic and scientific performance. According to the report:

    The international analysis is clear: we are spending significantly less than comparable countries spend from the public purse on [research and development].

    The authors emphasise that for countries with low expenditure, improved research and development activity is especially important for GDP growth. New Zealand should take note – it is an outlier both as a low investor and a poor economic performer.

    These messages are not new.

    Steven Joyce, science minister in the National-led government between 2011 and 2016, advocated for the National Science Challenges as a way to justify increased government investment to the sector. But issues with the implementation costs effectively killed off his promise of increased funding.

    Labour’s science minister between 2022 and 2023, Ayesha Verrall, had a similar argument about needing to establish research “priorities” in order to justify increased spending. Again, it never happened.

    It is possible the current reforms will be more effective in providing justification for increased investment.

    But this time we need to put the horse before the cart by investing money in the system – one that has been underfunded for years and which has only recently seen further funding cuts and job losses.

    And this has to happen before the system absorbs the implementation costs of these reforms.

    Nicola Gaston receives funding from TEC as Director of the MacDiarmid Institute for Advanced Materials and Nanotechnology, and from the Marsden fund administered by the Royal Society Te Apārangi.

    – ref. If the government wants science to have an economic impact it has to put its money where its mouth is – https://theconversation.com/if-the-government-wants-science-to-have-an-economic-impact-it-has-to-put-its-money-where-its-mouth-is-248299

    MIL OSI Analysis – EveningReport.nz –

    January 30, 2025

  • MIL-OSI: Sound Financial Bancorp, Inc. Q4 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Jan. 29, 2025 (GLOBE NEWSWIRE) —  Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.9 million for the quarter ended December 31, 2024, or $0.74 diluted earnings per share, as compared to net income of $1.2 million, or $0.45 diluted earnings per share, for the quarter ended September 30, 2024, and $1.2 million, or $0.47 diluted earnings per share, for the quarter ended December 31, 2023. The Company also announced today that its Board of Directors declared a cash dividend on the Company’s common stock of $0.19 per share, payable on February 26, 2025 to stockholders of record as of the close of business on February 12, 2025.

    Comments from the President and Chief Executive Officer  
     
    “The Bank ended the year with many positives, including a 15-basis-point increase in net interest margin compared to the third quarter of 2024. This was largely due to our significant progress in reducing deposit costs, which fell by 16 basis points,” remarked Laurie Stewart, President and Chief Executive Officer. “Additionally, nonperforming loans decreased by 11.8% from the third quarter, and for the first time in more than a decade, we have no OREO,” concluded Ms. Stewart.

    “Notable progress was made in reducing funding costs during the quarter and in controlling expenses throughout the entire year. We hope to continue this momentum in 2025. Our staff across the company played an important role in these accomplishments by focusing on client relationships and increasing efficiencies through technological improvements,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

    Mr. Ochs continued, “We ended the year with the same balance sheet strategy that we used to close out 2023, which helped reduce the Bank’s asset size below $1 billion. This strategy is intended to provide the Bank with additional operational flexibility and continued cost savings in 2025.”
    Q4 2024 Financial Performance
    Total assets decreased $107.3 million or 9.7% to $993.6 million at December 31, 2024, from $1.10 billion at September 30, 2024, and decreased $1.6 million or 0.2% from $995.2 million at December 31, 2023.     Net interest income increased $347 thousand or 4.4% to $8.2 million for the quarter ended December 31, 2024, from $7.9 million for the quarter ended September 30, 2024, and increased $653 thousand or 8.6% from $7.6 million for the quarter ended December 31, 2023.
       
        Net interest margin (“NIM”), annualized, was 3.13% for the quarter ended December 31, 2024, compared to 2.98% for the quarter ended September 30, 2024 and 3.04% for the quarter ended December 31, 2023.
    Loans held-for-portfolio decreased $1.6 million or 0.2% to $900.2 million at December 31, 2024, compared to $901.7 million at September 30, 2024, and increased $5.7 million or 0.6% from $894.5 million at December 31, 2023.    
        A $14 thousand provision for credit losses was recorded for the quarter ended December 31, 2024, compared to an $8 thousand provision and a $27 thousand release of provision for credit losses for the quarters ended September 30, 2024 and December 31, 2023, respectively. At December 31, 2024, the allowance for credit losses on loans to total loans outstanding was 0.94%, compared to 0.95% at September 30, 2024 and 0.98% December 31, 2023.
    Total deposits decreased $92.4 million or 9.9% to $837.8 million at December 31, 2024, from $930.2 million at September 30, 2024, and increased $11.3 million or 1.4% from $826.5 million at December 31, 2023. Noninterest-bearing deposits increased $2.8 million or 2.2% to $132.5 million at December 31, 2024 compared to $129.7 million at September 30, 2024, and increased $5.8 million or 4.6% compared to $126.7 million at December 31, 2023.    
        Total noninterest income decreased $75 thousand or 6.1% to $1.2 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and increased $94 thousand or 8.8% compared to the quarter ended December 31, 2023.
    The loans-to-deposits ratio was 108% at December 31, 2024, compared to 97% at September 30, 2024 and 108% at December 31, 2023.    
        Total noninterest expense decreased $621 thousand or 8.1% to $7.1 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and decreased $248 thousand or 3.4% compared to the quarter ended December 31, 2023.
    Total nonperforming loans decreased $998 thousand or 11.8% to $7.5 million at December 31, 2024, from $8.5 million at September 30, 2024, and increased $3.9 million or 110.7% from $3.6 million at December 31, 2023. Nonperforming loans to total loans was 0.83% and the allowance for credit losses on loans to total nonperforming loans was 113.46% at December 31, 2024.    
        The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at December 31, 2024.
           

    Operating Results

    Net interest income increased $347 thousand, or 4.4%, to $8.2 million for the quarter ended December 31, 2024, compared to $7.9 million for the quarter ended September 30, 2024, and increased $653 thousand, or 8.6%, from $7.6 million for the quarter ended December 31, 2023.The increase from the prior quarter was primarily the result of lower funding costs and an increase in average yield on loans receivable and investments, partially offset by a decrease in the average balance and yield on interest-bearing cash. The increase in net interest income compared to the same quarter one year ago was primarily due to a higher average yield on interest-earning assets, particularly loans receivable and investments, and an increase in the average balances of both loans receivable and interest-bearing cash, partially offset by a lower average yield on interest-bearing cash and higher funding costs.

    Interest income decreased $102 thousand, or 0.7%, to $14.7 million for the quarter ended December 31, 2024, compared to $14.8 million for the quarter ended September 30, 2024, and increased $1.4 million, or 10.5%, from $13.3 million for the quarter ended December 31, 2023. The decrease from the prior quarter was primarily due to a lower average balance of interest-bearing cash, and a 59 basis point decline in the average yield on interest-bearing cash, offset by a seven basis point increase in the average loan yield and a 16 basis point increase in the average yield on investments. The increase in interest income compared to the same quarter last year was due primarily to higher average balances of loans and interest-bearing cash, a 37 basis point increase in the average yield on loans, and a 43 basis point increase in the average yield on investments, partially offset by a decline in the average balance of investments and a 59 basis point decline in the average yield on interest-bearing cash.

    Interest income on loans increased $194 thousand, or 1.5%, to $13.1 million for the quarter ended December 31, 2024, compared to $12.9 million for the quarter ended September 30, 2024, and increased $1.0 million, or 8.6%, from $12.0 million for the quarter ended December 31, 2023. The average balance of total loans was $900.8 million for the quarter ended December 31, 2024, up from $898.6 million for the quarter ended September 30, 2024 and $884.7 million for the quarter ended December 31, 2023. The average yield on total loans was 5.77% for the quarter ended December 31, 2024, up from 5.70% for the quarter ended September 30, 2024 and 5.40% for the quarter ended December 31, 2023. The increase in the average loan yield during the current quarter, compared to both the prior quarter and the fourth quarter of 2023, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the prior quarters. The increase in the average balance during the current quarter compared to the prior quarter was primarily due to growth in commercial and multifamily loans, manufactured housing loans and floating home loans. This was partially offset by a decline in construction and land loans and commercial business loans. The average balances for one-to-four family loans, home equity loans, and other consumer loans remained relatively flat from the third quarter of 2024. The increase in the average balance of loans during the current quarter compared to the fourth quarter of 2023 was primarily due to loan growth across all categories, except for one-to-four family loans, construction and land loans, commercial business loans, and other consumer loans, with the largest decrease being in construction and land loans.

    Interest income on investments was $132 thousand for both the quarters ended December 31, 2024 and September 30, 2024, and $129 thousand for the quarter ended December 31, 2023. Interest income on interest-bearing cash decreased $296 thousand to $1.5 million for the quarter ended December 31, 2024, compared to $1.8 million for the quarter ended September 30, 2024, and increased $359 thousand from $1.2 million for the quarter ended December 31, 2023. The decrease from the prior quarter was due to decreases in the average yield and average balance of interest-bearing cash. The increase from the same quarter in the prior year was a result of a higher average balance, partially offset by a lower average yield.

    Interest expense decreased $449 thousand, or 6.4%, to $6.5 million for the quarter ended December 31, 2024, from $7.0 million for the quarter ended September 30, 2024, and increased $746 thousand, or 12.9%, from $5.8 million for the quarter ended December 31, 2023. The decrease in interest expense during the current quarter from the prior quarter was primarily the result of average balance decreases of $3.8 million in demand and NOW accounts, $2.3 million in certificate accounts and $9.5 million in FHLB advances, as well as lower average rates paid on all categories of interest-bearing deposits, partially offset by a $10.2 million increase in the average balance of savings and money market accounts. The increase in interest expense during the current quarter from the same quarter a year ago was primarily the result of a $91.9 million increase in the average balance of savings and money market accounts and a $1.3 million increase in the average balance of certificate accounts, as well as higher average rates paid on savings and money market accounts. This was partially offset by a $25.3 million decrease in the average balance of demand and NOW accounts and a $9.6 million decrease in the average balance of FHLB advances. The average cost of deposits was 2.58% for the quarter ended December 31, 2024, down from 2.74% for the quarter ended September 30, 2024 and up from 2.38% for the quarter ended December 31, 2023. The average cost of FHLB advances was 4.31% for the quarter ended December 31, 2024, down from 4.32% for the quarter ended September 30, 2024, and up from 4.26% for the quarter ended December 31, 2023.

    NIM (annualized) was 3.13% for the quarter ended December 31, 2024, up from 2.98% for the quarter ended September 30, 2024 and 3.04% for the quarter ended December 31, 2023. The increase in NIM from the prior quarter was the result of lower cost of funding, partially offset by a decrease in interest income on interest-earning assets. The increase in NIM from the quarter one year ago was primarily due to an increase in interest income on interest-earning assets, driven by the higher average balance in loans and interest-bearing cash and a higher yield earned on loans and investments, partially offset by a higher average balance of and cost of savings and money market accounts.

    A provision for credit losses of $14 thousand was recorded for the quarter ended December 31, 2024, consisting of a release of provision for credit losses on loans of $73 thousand and a provision for credit losses on unfunded loan commitments of $87 thousand. This compared to a provision for credit losses of $8 thousand for the quarter ended September 30, 2024, consisting of a provision for credit losses on loans of $106 thousand and a release of provision for credit losses on unfunded loan commitments of $98 thousand, and a release of provision for credit losses of $27 thousand for the quarter ended December 31, 2023, consisting of a provision for credit losses on loans of $337 thousand and a release of the provision for credit losses on unfunded loan commitments of $364 thousand. The increase in the provision for credit losses for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 resulted primarily from an additional qualitative adjustment related to our loan review, additional enhancements to the loss model related to how we adjust for the qualitative component, including the utilization of a scorecard to drive managements analysis, and growth in our unfunded construction loan portfolio, which has a higher loss rate than our other loan portfolios. These increases were offset by lower reserves in both our floating home sub-segment of other consumer loans within our quantitative analysis and in our qualitative analysis related to market conditions and value of underlying collateral, as economic conditions have improved. Expected loss estimates consider various factors, such as market conditions, borrower-specific information, projected delinquencies, and the impact of economic conditions on borrowers’ ability to repay.

    Noninterest income decreased $75 thousand, or 6.1%, to $1.2 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and increased $94 thousand, or 8.8%, compared to the quarter ended December 31, 2023. The decrease from the prior quarter was primarily related to a $24 thousand downward adjustment in fair value of mortgage servicing rights and a $59 thousand decrease in earnings from bank-owned life insurance (“BOLI”), both influenced by fluctuating market interest rates. These decreases were partially offset by an increase of $13 thousand in net gain on sale of loans due to higher sales volume in the fourth quarter of 2024, and a $7 thousand increase in gain on disposal of assets due to insurance claims exceeding the book value on the replacement of stolen laptops in the second quarter of 2024. The increase in noninterest income from the same quarter of 2023 was primarily due an $43 thousand increase in service charges and fee income primarily due to increases in late fees on loans, higher interchange income and income related to a new, multi-year agreement with our credit card provider that was effective in 2024, a late fee on one commercial loan and higher specialty deposit fees due to fewer reversals of fees in 2024, a $173 thousand increase in the fair value adjustment on mortgage servicing rights due to changes in prepayment speeds, servicing costs, and discount rate, and a $7 thousand increase in gain on disposal of assets as noted above. These increases were partially offset by a $95 thousand decrease in earnings on BOLI due to market rate fluctuations, and a $23 thousand decrease in net gain on sale of loans due to fewer loans sold, and an $11 thousand decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than we are replacing the loans. Loans sold during the quarter ended December 31, 2024, totaled $3.5 million, compared to $2.4 million and $4.5 million of loans sold during the quarters ended September 30, 2024 and December 31, 2023, respectively.

    Noninterest expense decreased $621 thousand, or 8.1%, to $7.1 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and decreased $248 thousand, or 3.4%, from the quarter ended December 31, 2023. The decrease from the quarter ended September 30, 2024 was primarily a result of lower salaries and benefits and operations expenses, partially offset by higher data processing expense. Salaries and benefits decreased $549 thousand primarily due to lower incentive compensation, lower retirement plan expense due to fluctuating market rates, lower medical expense due to higher medical costs during the third quarter of 2024, and lower salaries expense, as well as higher deferred salaries due to higher loan production. Operations expense decreased $211 thousand primarily due to a reversal of state and local tax expense related to higher estimated tax payments made than actual tax due, and lower operational losses in the current quarter as the prior quarter included the charge-off of a fraudulently obtained loan. This was partially offset by an $165 thousand increase in data processing expenses, reflecting new technology implementation costs. Compared to same quarter in 2023, the decrease in noninterest expense was primarily due to lower operations expenses, occupancy expenses and data processing expenses, which were partially offset by a $118 thousand increase in salaries and benefits costs. Operations expenses decreased due to reduction in loan originations costs, office expenses, operational losses, charitable contributions and state and local taxes, partially offset by higher professional fees primarily related to costs for future FDIC Improvement Act implementation. Data processing expenses decreased due to lower costs related to our core processor, while occupancy expenses decreased primarily due to fully amortized leasehold improvements. The increase in salaries and benefits compared to the same quarter last year reflected higher incentive compensation, lower deferred salaries, higher medical expenses due primarily to a change in insurance providers, and a higher contribution to our employee stock ownership plan due to the increase in value of our stock in 2024. This was partially offset by lower retirement plan expenses due to fluctuating market rates and lower salaries from a restructuring of positions at the end of 2023.

    Balance Sheet Review, Capital Management and Credit Quality

    Assets at December 31, 2024 totaled $993.6 million, down from $1.10 billion at September 30, 2024 and $995.22 million at December 31, 2023. The decrease in total assets from September 30, 2024 was primarily due to decreases in cash and cash equivalents and loans held-for-portfolio. The decrease from one year ago was primarily a result of lower balances of cash and cash equivalents and investment securities, offset by an increase in loans held-for-portfolio.

    Cash and cash equivalents decreased $105.3 million, or 70.7%, to $43.6 million at December 31, 2024, compared to $148.9 million at September 30, 2024, and decreased $6.0 million, or 12.2%, from $49.7 million at December 31, 2023. The decrease from the prior quarter was primarily due to higher deposit withdrawals, as well as the strategic decision to sell reciprocal deposits at the end of the year. Cash and cash equivalents decreased from one year ago primarily due to the increase in loans held-for-portfolio and the payoff of one FHLB borrowing, partially offset by an increase in deposits.

    Investment securities decreased $251 thousand, or 2.5%, to $9.9 million at December 31, 2024, compared to $10.2 million at September 30, 2024, and decreased $533 thousand, or 5.1%, from $10.5 million at December 31, 2023. Held-to-maturity securities totaled $2.1 million at both December 31, 2024 and September 30, 2024, and totaled $2.2 million at December 31, 2023. Available-for-sale securities totaled $7.8 million at December 31, 2024, compared to $8.0 million at September 30, 2024 and $8.3 million at December 31, 2023.

    Loans held-for-portfolio were $900.2 million at December 31, 2024, compared to $901.7 million at September 30, 2024 and $894.5 million at December 31, 2023.

    Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, decreased $1.1 million, or 12.9%, to $7.5 million at December 31, 2024, from $8.6 million at September 30, 2024 and increased $3.4 million, or 81.3%, from $4.1 million at December 31, 2023. The decrease in NPAs from September 30, 2024 was primarily due to the payoff of seven loans totaling $1.2 million, one loan totaling $76 thousand returning to accrual status, and sale of one other real estate owned property for $115 thousand for a small net gain on sale, partially offset by the addition of seven loans totaling $326 thousand to nonaccrual. The increase in NPAs from one year ago was primarily due to the placement of an additional $9.3 million of loans on nonaccrual status, which included a $3.7 million matured commercial real estate loan where the borrower is in the process of securing financing from another lender, and a $2.4 million floating home loan, all of which are well secured. These additions were partially offset by payoffs totaling $4.2 million, the return of $784 thousand of loans to accrual status, charge-offs of $142 thousand, the sale of two other real estate owned properties for $685 thousand, and normal loan payments.

    NPAs to total assets were 0.75%, 0.78% and 0.42% at December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The allowance for credit losses on loans to total loans outstanding was 0.94% at December 31, 2024, compared to 0.95% at September 30, 2024 and 0.98% at December 31, 2023. Net loan charge-offs for the fourth quarter of 2024 totaled $13 thousand, compared to $14 thousand for the third quarter of 2024, and $15 thousand for the fourth quarter of 2023.

    The following table summarizes our NPAs at the dates indicated (dollars in thousands):

      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Nonperforming Loans:                  
    One-to-four family $ 537     $ 745     $ 822     $ 835     $ 1,108  
    Home equity loans   298       338       342       83       84  
    Commercial and multifamily   3,734       4,719       5,161       4,747       —  
    Construction and land   24       25       28       29       —  
    Manufactured homes   521       230       136       166       228  
    Floating homes   2,363       2,377       2,417       3,192       —  
    Commercial business   11       23       —       —       2,135  
    Other consumer   3       32       3       1       1  
    Total nonperforming loans   7,491       8,489       8,909       9,053       3,556  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       575       575  
    Manufactured homes   —       115       115       115       —  
    Total OREO and repossessed assets   —       115       115       690       575  
    Total NPAs $ 7,491     $ 8,604     $ 9,024     $ 9,743     $ 4,131  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   7.3 %     8.7 %     9.1 %     8.5 %     26.9 %
    Home equity loans   4.0       3.9       3.8       0.9       2.0  
    Commercial and multifamily   49.8       54.8       57.2       48.7       —  
    Construction and land   0.3       0.3       0.3       0.3       —  
    Manufactured homes   7.0       2.7       1.5       1.7       5.5  
    Floating homes   31.5       27.6       26.8       32.8       —  
    Commercial business   0.1       0.3       —       —       51.7  
    Other consumer   —       0.4       —       —       —  
    Total nonperforming loans   100.0       98.7       98.7       92.9       86.1  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       5.9       13.9  
    Manufactured homes   —       1.3       1.3       1.2       —  
    Total OREO and repossessed assets   —       1.3       1.3       7.1       13.9  
    Total NPAs   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

    The following table summarizes the allowance for credit losses at the dates and for the periods indicated (dollars in thousands, unaudited):

      At or For the Quarter Ended:
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Allowance for Credit Losses on Loans                  
    Balance at beginning of period $ 8,585     $ 8,493     $ 8,598     $ 8,760     $ 8,438  
    (Release of) provision for credit losses during the period   (73 )     106       (88 )     (106 )     337  
    Net charge-offs during the period   (13 )     (14 )     (17 )     (56 )     (15 )
    Balance at end of period $ 8,499     $ 8,585     $ 8,493     $ 8,598     $ 8,760  
    Allowance for Credit Losses on Unfunded Loan Commitments                  
    Balance at beginning of period $ 147     $ 245     $ 266     $ 193     $ 557  
    Provision for (release of) provision for credit losses during the period   87       (98 )     (21 )     73       (364 )
    Balance at end of period   234       147       245       266       193  
    Allowance for Credit Losses $ 8,733     $ 8,732     $ 8,738     $ 8,864     $ 8,953  
    Allowance for credit losses on loans to total loans   0.94 %     0.95 %     0.96 %     0.96 %     0.98 %
    Allowance for credit losses to total loans   0.97 %     0.97 %     0.98 %     0.99 %     1.00 %
    Allowance for credit losses on loans to total nonperforming loans   113.46 %     101.13 %     95.33 %     94.97 %     246.34 %
    Allowance for credit losses to total nonperforming loans   116.58 %     102.86 %     98.08 %     97.91 %     251.77 %

    Total deposits decreased $92.4 million, or 9.9%, to $837.8 million at December 31, 2024, from $930.2 million at September 30, 2024 and increased $11.3 million, or 1.4%, from $826.5 million at December 31, 2023. The decrease in total deposits compared to the prior quarter-end was primarily a result of the movement of reciprocal deposits off balance sheet for strategic objectives at year-end, followed by the return of those deposits to our balance sheet in the first quarter of 2025, and a decrease in one high cost money market depositor relationship as part of our strategic decision to decrease our overall cost of funds. Noninterest-bearing deposits increased $2.8 million, or 2.2%, to $132.5 million at December 31, 2024, compared to $129.7 million at September 30, 2024 and increased $5.8 million, or 4.6%, from $126.7 million at December 31, 2023. Noninterest-bearing deposits represented 15.8%, 14.0% and 15.3% of total deposits at December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    FHLB advances totaled $25.0 million at December 31, 2024, compared to $40.0 million at both September 30, 2024, and December 31, 2023. The decrease from both prior dated was due to the repayment of a $15.0 million FHLB advance that matured in November 2024. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at December 31, 2024 had maturities ranging from early 2026 through early 2028. Subordinated notes, net totaled $11.8 million at each of December 31, 2024, September 30, 2024 and December 31, 2023.

    Stockholders’ equity totaled $103.7 million at December 31, 2024, an increase of $1.4 million, or 1.4%, from $102.2 million at September 30, 2024, and an increase of $3.0 million, or 3.0%, from $100.7 million at December 31, 2023. The increase in stockholders’ equity from September 30, 2024 was primarily the result of $1.9 million of net income earned during the current quarter, $98 thousand in share-based compensation, and $19 thousand in common stock options exercised, partially offset by a $122 thousand increase in accumulated other comprehensive loss, net of tax and the payment of $486 thousand in cash dividends to the Company’s stockholders.

    Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, which is headquartered in Seattle, Washington and has full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow and University Place. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with one loan production office located in the Madison Park neighborhood of Seattle. For more information, please visit www.soundcb.com.

    Forward-Looking Statements Disclaimer

    When used in this press release and in documents filed or furnished by Sound Financial Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors listed below or because of other factors that we cannot foresee that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made.

    Factors which could cause actual results to differ materially, include, but are not limited to:adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation or deflation, a recession or slowed economic growth, as well as supply chain disruptions; changes in the interest rate environment, including increases and decreases in the Board of Governors of the Federal Reserve System (the Federal Reserve) benchmark rate and the duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; changes in consumer spending, borrowing and savings habits; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; secondary market conditions for loans;expectations regarding key growth initiatives and strategic priorities; environmental, social and governance goals and targets; results of examinations of the Company or the Bank by their regulators; increased competition; changes in management’s business strategies; legislative changes; changes in the regulatory and tax environments in which the Company operates; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on our third-party vendors; the potential imposition of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sector; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the SEC, which are available at www.soundcb.com and on the SEC’s website at www.sec.gov. The risks inherent in these factors could cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company and could negatively affect the Company’s operating and stock performance.

    The Company does not undertake—and specifically disclaims any obligation—to revise any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statement.

    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)
        For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Interest income   $ 14,736     $ 14,838   $ 14,039     $ 13,760     $ 13,337  
    Interest expense     6,516       6,965     6,591       6,300       5,770  
    Net interest income     8,220       7,873     7,448       7,460       7,567  
    Provision for (release of) credit losses     14       8     (109 )     (33 )     (27 )
    Net interest income after provision for (release of) credit losses     8,206       7,865     7,557       7,493       7,594  
    Noninterest income:                    
    Service charges and fee income     619       628     761       612       576  
    Earnings on bank-owned life insurance     127       186     134       177       222  
    Mortgage servicing income     277       280     279       282       288  
    Fair value adjustment on mortgage servicing rights     77       101     (116 )     (65 )     (96 )
    Net gain on sale of loans     53       40     74       90       76  
    Other income     7       —     30       —       —  
    Total noninterest income     1,160       1,235     1,162       1,096       1,066  
    Noninterest expense:                    
    Salaries and benefits     3,920       4,469     4,658       4,543       3,802  
    Operations     1,329       1,540     1,569       1,457       1,537  
    Regulatory assessments     189       189     220       189       198  
    Occupancy     409       414     397       444       458  
    Data processing     1,232       1,067     910       1,017       1,311  
    Net (gain) loss on OREO and repossessed assets     (21 )     —     (17 )     6       —  
    Total noninterest expense     7,058       7,679     7,737       7,656       7,306  
    Income before provision for income taxes     2,308       1,421     982       933       1,354  
    Provision for income taxes     389       267     187       163       143  
    Net income   $ 1,919     $ 1,154   $ 795     $ 770     $ 1,211  
    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)
         
        For theYear Ended December 31
          2024       2023  
    Interest income   $ 57,374     $ 50,609  
    Interest expense     26,372       16,759  
    Net interest income     31,002       33,850  
    (Release of) provision for credit losses     (120 )     (273 )
    Net interest income after (release of) provision for credit losses     31,122       34,123  
    Noninterest income:        
    Service charges and fee income     2,620       2,527  
    Earnings on bank-owned life insurance     625       1,179  
    Mortgage servicing income     1,118       1,179  
    Fair value adjustment on mortgage servicing rights     (4 )     (219 )
    Net gain on sale of loans     258       340  
    Other income     38       —  
    Total noninterest income     4,655       5,006  
    Noninterest expense:        
    Salaries and benefits     17,590       17,135  
    Operations     5,894       6,095  
    Regulatory assessments     787       688  
    Occupancy     1,665       1,810  
    Data processing     4,226       4,388  
    Net (gain) loss on OREO and repossessed assets     (31 )     13  
    Total noninterest expense     30,131       30,129  
    Income before provision for income taxes     5,646       9,000  
    Provision for income taxes     1,006       1,561  
    Net income   $ 4,640     $ 7,439  
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    ASSETS                    
    Cash and cash equivalents   $ 43,641     $ 148,930     $ 135,111     $ 137,977     $ 49,690  
    Available-for-sale securities, at fair value     7,790       8,032       7,996       8,115       8,287  
    Held-to-maturity securities, at amortized cost     2,130       2,139       2,147       2,157       2,166  
    Loans held-for-sale     487       65       257       351       603  
    Loans held-for-portfolio     900,171       901,733       889,274       897,877       894,478  
    Allowance for credit losses – loans     (8,499 )     (8,585 )     (8,493 )     (8,598 )     (8,760 )
    Total loans held-for-portfolio, net     891,672       893,148       880,781       889,279       885,718  
    Accrued interest receivable     3,471       3,705       3,413       3,617       3,452  
    Bank-owned life insurance, net     22,490       22,363       22,172       22,037       21,860  
    Other real estate owned (“OREO”) and other repossessed assets, net     —       115       115       690       575  
    Mortgage servicing rights, at fair value     4,769       4,665       4,540       4,612       4,632  
    Federal Home Loan Bank (“FHLB”) stock, at cost     1,730       2,405       2,406       2,406       2,396  
    Premises and equipment, net     4,697       4,807       4,906       6,685       5,240  
    Right-of-use assets     3,725       3,779       4,020       4,259       4,496  
    Other assets     7,031       6,777       6,995       4,500       6,106  
    TOTAL ASSETS   $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221  
    LIABILITIES                    
    Interest-bearing deposits   $ 705,267     $ 800,480     $ 781,854     $ 788,217     $ 699,813  
    Noninterest-bearing deposits     132,532       129,717       124,915       128,666       126,726  
    Total deposits     837,799       930,197       906,769       916,883       826,539  
    Borrowings     25,000       40,000       40,000       40,000       40,000  
    Accrued interest payable     765       908       760       719       817  
    Lease liabilities     4,013       4,079       4,328       4,576       4,821  
    Other liabilities     9,371       9,711       9,105       9,578       9,563  
    Advance payments from borrowers for taxes and insurance     1,260       2,047       812       2,209       1,110  
    Subordinated notes, net     11,759       11,749       11,738       11,728       11,717  
    TOTAL LIABILITIES     889,967       998,691       973,512       985,693       894,567  
    STOCKHOLDERS’ EQUITY:                    
    Common stock     25       25       25       25       25  
    Additional paid-in capital     28,413       28,296       28,198       28,110       27,990  
    Retained earnings     76,272       74,840       74,173       73,907       73,627  
    Accumulated other comprehensive loss, net of tax     (1,044 )     (922 )     (1,049 )     (1,050 )     (988 )
    TOTAL STOCKHOLDERS’ EQUITY     103,666       102,239       101,347       100,992       100,654  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221  
    KEY FINANCIAL RATIOS
    (unaudited)
        For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Annualized return on average assets   0.70 %   0.42 %   0.30 %   0.29 %   0.46 %
    Annualized return on average equity   7.40 %   4.50 %   3.17 %   3.06 %   4.78 %
    Annualized net interest margin(1)   3.13 %   2.98 %   2.92 %   2.95 %   3.04 %
    Annualized efficiency ratio(2)   75.25 %   84.31 %   89.86 %   89.48 %   84.63 %

    (1)   Net interest income divided by average interest earning assets.
    (2)   Noninterest expense divided by total revenue (net interest income and noninterest income).

    PER COMMON SHARE DATA
    (unaudited)
        At or For the Quarter Ended
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
    Basic earnings per share   $ 0.75   $ 0.45   $ 0.31   $ 0.30   $ 0.47
    Diluted earnings per share   $ 0.74   $ 0.45   $ 0.31   $ 0.30   $ 0.47
    Weighted-average basic shares outstanding     2,547,210     2,544,233     2,540,538     2,539,213     2,542,175
    Weighted-average diluted shares outstanding     2,578,771     2,569,368     2,559,015     2,556,958     2,560,656
    Common shares outstanding at period-end     2,564,907     2,564,095     2,557,284     2,558,546     2,549,427
    Book value per share   $ 40.42   $ 39.87   $ 39.63   $ 39.47   $ 39.48

    AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
    (Dollars in thousands, unaudited)

    The following tables present, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Income and yields on tax-exempt obligations have not been computed on a tax equivalent basis. All average balances are daily average balances. Nonaccrual loans have been included in the table as loans carrying a zero yield for the period they have been on nonaccrual (dollars in thousands).

      Three Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023
      Average Outstanding Balance   Interest Earned/
    Paid    		   Yield/
    Rate    		   Average Outstanding Balance   Interest Earned/
    Paid    		   Yield/
    Rate    		   Average Outstanding Balance   Interest Earned/
    Paid    		   Yield/
    Rate
    Interest-Earning Assets:                                  
    Loans receivable $ 900,832     $ 13,070   5.77 %   $ 898,570     $ 12,876   5.70 %   $ 884,677     $ 12,033   5.40 %
    Interest-earning cash   130,412       1,534   4.68 %     138,240       1,830   5.27 %     88,401       1,175   5.27 %
    Investments   13,263       132   3.96 %     13,806       132   3.80 %     14,479       129   3.53 %
    Total interest-earning assets $ 1,044,507       14,736   5.61 %     1,050,616     $ 14,838   5.62 %   $ 987,557       13,337   5.36 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 350,495       2,476   2.81 %   $ 340,281       2,688   3.14 %   $ 258,583       1,586   2.43 %
    Demand and NOW accounts   144,470       128   0.35 %     148,252       151   0.41 %     169,816       149   0.35 %
    Certificate accounts   301,293       3,413   4.51 %     303,632       3,524   4.62 %     300,042       3,436   4.54 %
    Subordinated notes   11,756       168   5.69 %     11,745       168   5.69 %     11,714       168   5.69 %
    Borrowings   30,546       331   4.31 %     40,000       434   4.32 %     40,109       431   4.26 %
    Total interest-bearing liabilities $ 838,560       6,516   3.09 %   $ 843,910       6,965   3.28 %   $ 780,264       5,770   2.93 %
    Net interest income/spread     $ 8,220   2.52 %       $ 7,873   2.34 %       $ 7,567   2.42 %
    Net interest margin         3.13 %           2.98 %           3.04 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             124 %             127 %        
    Noninterest-bearing deposits $ 130,476             $ 132,762             $ 134,857          
    Total deposits   926,734     $ 6,017   2.58 %     924,927     $ 6,363   2.74 %     863,298     $ 5,171   2.38 %
    Total funding(1)   969,036       6,516   2.68 %     976,672       6,965   2.84 %     915,121       5,770   2.50 %

    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

      Year Ended
      December 31, 2024   December 31, 2023
      Average
    Outstanding Balance    		   Interest Earned/Paid   Yield/Rate   Average
    Outstanding Balance    		   Interest Earned/Paid   Yield/Rate
    Interest-Earning Assets:                      
    Loans receivable $ 896,690     $ 50,499   5.63 %   $ 870,227     $ 46,470   5.34 %
    Interest-earning cash   124,259       6,367   5.12 %     74,708       3,621   4.85 %
    Investments   12,468       508   4.07 %     13,661       518   3.79 %
    Total interest-earning assets $ 1,033,417       57,374   5.55 %   $ 958,596       50,609   5.28 %
    Interest-Bearing Liabilities:                      
    Savings and money market accounts $ 319,314       9,145   2.86 %   $ 194,810       2,783   1.43 %
    Demand and NOW accounts   151,528       568   0.37 %     204,922       736   0.36 %
    Certificate accounts   309,441       14,363   4.64 %     280,238       10,617   3.79 %
    Subordinated notes   11,740       672   5.72 %     11,698       672   5.74 %
    Borrowings   37,623       1,624   4.32 %     43,977       1,951   4.44 %
    Total interest-bearing liabilities $ 829,646       26,372   3.18 %   $ 735,645       16,759   2.28 %
    Net interest income/spread     $ 31,002   2.37 %       $ 33,850   3.00 %
    Net interest margin         3.00 %           3.53 %
                           
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             130 %        
    Noninterest-bearing deposits $ 131,141             $ 154,448          
    Total deposits   911,424     $ 24,076   2.64 %     834,418     $ 14,136   1.69 %
    Total funding(1)   960,787       26,372   2.74 %     890,093       16,759   1.88 %

    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

    LOANS
    (Dollars in thousands, unaudited)
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Real estate loans:                    
    One-to-four family   $ 269,684     $ 271,702     $ 268,488     $ 279,213     $ 279,448  
    Home equity     26,686       25,199       26,185       24,380       23,073  
    Commercial and multifamily     371,516       358,587       342,632       324,483       315,280  
    Construction and land     73,077       85,724       96,962       111,726       126,758  
    Total real estate loans     740,963       741,212       734,267       739,802       744,559  
    Consumer Loans:                    
    Manufactured homes     41,128       40,371       38,953       37,583       36,193  
    Floating homes     86,411       86,155       81,622       84,237       75,108  
    Other consumer     17,720       18,266       18,422       18,847       19,612  
    Total consumer loans     145,259       144,792       138,997       140,667       130,913  
    Commercial business loans     15,605       17,481       17,860       19,075       20,688  
    Total loans     901,827       903,485       891,124       899,544       896,160  
    Less:                    
    Premiums     718       736       754       808       829  
    Deferred fees, net     (2,374 )     (2,488 )     (2,604 )     (2,475 )     (2,511 )
    Allowance for credit losses – loans     (8,499 )     (8,585 )     (8,493 )     (8,598 )     (8,760 )
    Total loans held-for-portfolio, net   $ 891,672     $ 893,148     $ 880,781     $ 889,279     $ 885,718  
    DEPOSITS
    (Dollars in thousands, unaudited)
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Noninterest-bearing demand   $ 132,532   $ 129,717   $ 124,915   $ 128,666   $ 126,726
    Interest-bearing demand     142,126     148,740     152,829     159,178     168,346
    Savings     61,252     61,455     63,368     65,723     69,461
    Money market(1)     206,067     285,655     253,873     241,976     154,044
    Certificates     295,822     304,630     311,784     321,340     307,962
    Total deposits   $ 837,799   $ 930,197   $ 906,769   $ 916,883   $ 826,539

    (1)   Includes $5.0 million of brokered deposits at December 31, 2023. 

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)
        At or For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Total nonperforming loans   $ 7,491     $ 8,489     $ 8,909     $ 9,053     $ 3,556  
    OREO and other repossessed assets     —       115       115       690       575  
    Total nonperforming assets   $ 7,491     $ 8,604     $ 9,024     $ 9,743     $ 4,131  
    Net charge-offs during the quarter   $ (13 )   $ (14 )   $ (17 )   $ (56 )   $ (15 )
    Provision for (release of) credit losses during the quarter     14       8       (109 )     (33 )     (27 )
    Allowance for credit losses – loans     8,499       8,585       8,493       8,598       8,760  
    Allowance for credit losses – loans to total loans     0.94 %     0.95 %     0.96 %     0.96 %     0.98 %
    Allowance for credit losses – loans to total nonperforming loans     113.46 %     101.13 %     95.33 %     94.97 %     246.34 %
    Nonperforming loans to total loans     0.83 %     0.94 %     1.00 %     1.01 %     0.40 %
    Nonperforming assets to total assets     0.75 %     0.78 %     0.84 %     0.90 %     0.42 %
    OTHER STATISTICS
    (Dollars in thousands, unaudited)
        At or For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
                         
    Total loans to total deposits     107.64 %     97.13 %     98.27 %     98.11 %     108.42 %
    Noninterest-bearing deposits to total deposits     15.82 %     13.95 %     13.78 %     14.03 %     15.33 %
                         
    Average total assets for the quarter   $ 1,089,067     $ 1,095,404     $ 1,070,579     $ 1,062,036     $ 1,033,985  
    Average total equity for the quarter   $ 103,181     $ 102,059     $ 100,961     $ 101,292     $ 100,612  

    Contact

    Financial:    
    Wes Ochs      
    Executive Vice President/CFO    
    (206) 436-8587      
           
    Media:    
    Laurie Stewart      
    President/CEO    
    (206) 436-1495      
           

    The MIL Network –

    January 30, 2025

  • MIL-OSI: Quick Custom Intelligence and Modulus Celebrate Success at ICE

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Jan. 29, 2025 (GLOBE NEWSWIRE) — Quick Custom Intelligence (QCI), a leading provider of cutting-edge business intelligence solutions for the casino industry, and Modulus, an innovator in advanced gaming system technology, are pleased to announce a successful showcase at the International Casino Expo (ICE). Throughout the event, both companies met with dozens of current customers and new prospects, demonstrating the latest in AI technology and data-driven business intelligence tools.

    By joining forces in the Modulus booth, QCI and Modulus underscored the synergy of their combined technologies, generating excitement among attendees. The live demos highlighted how these next-generation solutions can empower casinos to make data-driven decisions, enhance customer engagement, and streamline operations.

    “The energy at this year’s ICE was truly inspiring,” said Marc Attal, COO of Modulus. “Our newest technology received an exceptional response, and our digitalization strategy for slots and tables resonated deeply with clients who clearly saw the benefits of optimization it brings. Showcasing QCI’s solutions in our booth amplified our message and created an immersive experience that highlighted the potential of the cutting-edge AGI55 platform. The excitement and enthusiasm from both existing and prospective clients made this one of our most successful shows yet, reaffirming our commitment to innovation and excellence.”

    “It was fantastic to be part of the show,” remarked Andrew Cardno, CTO of QCI. “Meeting so many new customers and prospects has sparked a sense of excitement and optimism for what lies ahead for QCI in the global casino market. We are grateful to Modulus for the opportunity to partner in showcasing how our integrated solutions can help casinos operate more efficiently and profitably.”

    Both companies look forward to expanding their footprint in international gaming markets, fueled by the success and enthusiasm generated at ICE. QCI and Modulus remain committed to developing innovative technologies that drive real-world results for casino operators everywhere.

    ABOUT Quick Custom Intelligence
    Quick Custom Intelligence (QCI) has pioneered the revolutionary QCI AGI Platform, an artificial intelligence platform that seamlessly integrates player development, marketing, and gaming operations with powerful, real-time tools designed specifically for the gaming and hospitality industries. Our advanced, highly configurable software is deployed in over 250 casino resorts across North America, Australia, New Zealand, Canada, Latin America, and The Bahamas. The QCI AGI Platform, which manages more than $35 billion in annual gross gaming revenue, stands as a best-in-class solution, whether on-premises, hybrid, or cloud-based, enabling fully coordinated activities across all aspects of gaming or hospitality operations. QCI’s data-driven, AI-powered software propels swift, informed decision-making vital in the ever-changing casino industry, assisting casinos in optimizing resources and profits, crafting effective marketing campaigns, and enhancing customer loyalty. QCI was co-founded by Dr. Ralph Thomas and Mr. Andrew Cardno and is based in San Diego, with additional offices in Las Vegas, St. Louis, Denver, Dallas, and Tulsa. Main phone number: (858) 299.5715. Visit us at www.quickcustomintelligence.com.

    ABOUT Andrew Cardno

    Andrew Cardno is a distinguished figure in the realm of artificial intelligence and data plumbing. With over two decades spearheading private Ph.D. and master’s level research teams, his expertise has made significant waves in data tooling. Andrew’s innate ability to innovate has led him to devise numerous pioneering visualization methods. Of these, the most notable is the deep zoom image format, a groundbreaking innovation that has since become a cornerstone in the majority of today’s mapping tools. His leadership acumen has earned him two coveted Smithsonian Laureates, and teams under his mentorship have clinched 40 industry awards, including three pivotal gaming industry transformation awards. Together with Dr. Ralph Thomas, the duo co-founded Quick Custom Intelligence, amplifying their collaborative innovative capacities. A testament to his inventive prowess, Andrew boasts over 150 patent applications. Across various industries—be it telecommunications with Telstra Australia, retail with giants like Walmart and Best Buy, or the medical sector with esteemed institutions like City Of Hope and UCSD—Andrew’s impact is deeply felt. He has enriched the literature with insights, co-authoring eight influential books with Dr. Thomas and contributing to over 100 industry publications. An advocate for community and diversity, Andrew’s work has touched over 100 Native American Tribal Resorts, underscoring his expansive and inclusive professional endeavours.

    ABOUT Modulus 

    As one of the world’s largest independent gaming management system providers, Modulus operates across 40 countries spanning Europe, Africa, South America, Canada, and Asia. Our multilingual suite of management software empowers gaming operators to optimize revenues and efficiently manage costs. With headquarters in Monaco and offices in France and Austria, along with partner offices in South Africa, Latin America, and Asia, our dedicated team of R&D and support professionals ensures the highest levels of customer engagement and product development. Explore the innovative technology of SYSTM Connect, enhancing player experiences and delivering fast, reliable network communication. Visit our website at www.modulusgroup.eu. 

    Contact:

    Laurel Kay, Quick Custom Intellligence

    Phone: 858-349-8354

    The MIL Network –

    January 30, 2025

  • MIL-OSI Submissions: Australia – Production begins at CH4 Global’s first full-scale EcoPark

    Source: CH4 Global

    ADELAIDE, Australia – January 30, 2024 – CH4 Global, Inc., will today officially open phase one of its first full-scale EcoPark, where it has begun to grow and process Asparagopsis in 10 large-scale cultivation ponds with a combined capacity of 2 million litres – capable of producing 80 metric tonnes of the seaweed each year.

    Over the next year, the facility will expand to 100 ponds capable of producing enough Asparagopsis to serve 45,000 cattle per day – a significant step toward meeting demand from CH4 Global’s existing commercial partners in Australia and beyond. With additional investment, the facility could eventually expand to 500 ponds capable of serving hundreds of thousands of cattle per day.

    South Australian Premier Peter Malinauskas attended the launch of the EcoPark in Louth Bay, 23km north of Port Lincoln on the Eyre Peninsula.

    “I congratulate CH4 global on this significant achievement,” Mr Malinauslkas said.

    “South Australia is already a world leader in decarbonisation.

    “Helping the rest of the world achieve this challenge presents an incredible opportunity to deliver a more complex economy and more jobs for South Australians.

    “CH4 Global’s EcoPark is a shining example of what we can achieve – using Research and Development to develop new industries.

    “Propagating a local seaweed to feed cattle has the potential to drastically reduce methane emissions from agriculture, both here and around the globe.”

    The EcoPark consists of research and development facilities, a seedling hatchery, patented in-land growth ponds, and harvesting and drying technologies to convert Asparagopsis into CH4 Global’s Methane Tamer products – allowing end-to-end production.

    The EcoPark will sustainably grow methane-reducing Asparagopsis at scale. Asparagopsis, which is a red seaweed native to South Australia, drastically reduces methane emissions from cows by up to 90 per cent.

    CH4 Global founder and Chief Executive Dr Steve Meller said the EcoPark was the first commercial facility of its kind, enabling the scalable propagation of Asparagopsis to meet the needs of feedlots under contract. CH4 Global’s system delivers consistent, high-quality production at a fraction of the cost, enabling profitability throughout the value chain without government subsidies.

    With its proprietary pond-based system, CH4 Global aims to reduce production costs by up to 90 per cent compared to conventional tank-based methods, enabling rapid scaling while positioning CH4 Global to deliver its feed supplement at a price point that ensures profitability throughout the agricultural value chain.

    “The EcoPark allows us to now grow Asparagopsis at-scale, providing more Methane Tamer to the feedlots and farmers we are already working with, and to meet the needs of the increasing number of organisations contacting us to help them change the feeding habits of their cows as we start bending the climate curve,” Dr Meller said.

    “We are well and truly working towards eliminating one billion metric tons of carbon dioxide equivalent emissions and reaching 150 million cattle by 2030 through our local and international partnerships with feedlots and farmers, and it’s fantastic to see beef from these cows hitting shelves in Australia and heading overseas.”

    Dr Meller said the Louth Bay EcoPark was an essential step on the climate journey and would be positive for the Eyre Peninsula community and economy.

    CH4 Global has committed to preventing the creation of one gigatonne of CO2 emissions by 2032.

    To do so, CH4 Global needs to reach 150 million cattle —10 per cent of the world’s total.

    “Along with supporting farmers in South Australia, Queensland and overseas to reduce emissions, we’re working closely with the Eyre Peninsula community by having worked with local contractors to build the EcoPark, sourcing local materials and providing regional jobs.”

    CH4 Global has also been working with First Nations communities across South Australia, including with the planting of native species and on a land management plan, and providing a gathering space on-site.

    CH4 Global has implemented a sustainable design framework for Louth Bay and future EcoParks, guiding the use and management of energy and natural resources, waste and GHG emissions, and efficient use of eco-friendly materials.

    As part of its sustainable design framework, CH4 Global has remediated the 14ha site and will be responsible for 13km of beach. Remediation has included removing 5,000 tonnes of concrete tanks – crushed and recycled; 11.76 tonnes of HDPE to be recycled in Adelaide, 10 tonnes of plastic aquaculture trays and other plastic equipment for filtering water and other purposes, which have been rehomed and reused within the community; and sent five tonnes of steel to recycling.

    CH4 Global will be holding an opening event at Louth Bay this morning, at 10.30am. The media is invited to attend.

    Dr Meller is available for interviews. Video footage and photography will also be available post-event.

    About CH4 Global

    CH4 Global, founded in 2018, is on an urgent mission to bend the climate curve, through collaboration with strategic partners worldwide. We deliver market-disruptive products that enable the food industry value chain to radically reduce GHG emissions.

    The company’s first innovation, Methane Tamer feed additives for feedlot cattle, harnesses the power of Asparagopsis seaweed to reduce enteric methane emissions by up to 90 per cent. CH4 Global is headquartered in Henderson, Nevada, in the US, with current subsidiaries in Australia and New Zealand.

    MIL OSI – Submitted News –

    January 30, 2025

  • MIL-OSI Security: Grand Jury Returns Seven Indictments

    Source: Office of United States Attorneys

    MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation, and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.

    LAS VEGAS MAN CHARGED WITH COCAINE TRAFFICKING AND ILLEGAL FIREARMS POSSESSION

    Enrique Rodriquez possessed over 5 kilograms of cocaine

    Enrique Rodriguez, 41, Las Vegas, Nevada, is charged with distributing cocaine, possessing cocaine intended for distribution, possessing a firearm as a felon, and possessing a firearm in furtherance of a drug trafficking crime. The indictment alleges that on June 6, 2024, Rodriguez distributed 500 grams or more of cocaine. The indictment also alleges that on January 16, 2025, Rodriquez possessed 5 kilograms or more of cocaine intended for distribution, illegally possessed a firearm as a felon, and possessed the firearm to further a drug trafficking crime. 

    If convicted, Rodriguez faces a mandatory minimum penalty of 5 years in prison and a maximum penalty of 40 years in prison for the count charging distribution of over 500 grams of cocaine. The count involving 5 kilograms or more of cocaine carries a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison. The felon in possession charge carries a maximum penalty of 15 years in prison. The charge of possessing a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of 5 years in prison and a maximum penalty of life.

    The charges against Rodriguez are the result of an investigation conducted by the Drug Enforcement Administration in Madison and Milwaukee, the Federal Bureau of Investigation, the ATF Madison Crime Gun Task Force, Wisconsin Department of Justice Division of Criminal Investigation, the Dane County Sheriff’s Office, and the Madison Police Department. The ATF Madison Crime Gun Task Force consists of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. Assistant U.S. Attorney Steven P. Anderson is handling the case.

    MARSHALL MAN CHARGED WITH DRUG AND GUN CRIMES

    Deontrae C. McIntosh, 21, Marshall, Wisconsin, is charged with distributing cocaine, heroin, and fentanyl; possessing cocaine and fentanyl intended for distribution; possessing a firearm and ammunition as a felon; and possessing a firearm in connection with a drug trafficking crime.

    The indictment alleges that McIntosh distributed cocaine on September 23, 2024, and on September 27, 2024. The indictment alleges that McIntosh distributed cocaine and heroin on October 4, 2024. The indictment further alleges that on November 6, 2024, McIntosh distributed cocaine and fentanyl, possessed cocaine and fentanyl intended for distribution, and possessed a loaded Glock 23, 40 caliber semi-automatic handgun as a felon and in furtherance of a drug trafficking crime. 

    If convicted, McIntosh faces a maximum penalty of 20 years in prison on each drug charge. The felon in possession charge carries a maximum penalty of 15 years in prison. If convicted of possessing a firearm in furtherance of a drug trafficking crime, McIntosh faces a penalty of not less than 5 years in prison with a maximum of life in prison.

    The charges against McIntosh are the result of an investigation conducted by the Dane County Narcotics Task Force and the ATF Madison Crime Gun Task Force. U.S. Attorney Timothy M. O’Shea is handling the case.

    CHIPPEWA FALLS MAN CHARGED WITH TRAFFICKING METHAMPHETAMINE AND FENTANYL

    Jason Barnard, 39, Chippewa Falls, Wisconsin, is charged with distributing methamphetamine and fentanyl and with possessing methamphetamine and fentanyl intended for distribution. The indictment alleges that on October 6, 2024, Barnard distributed a mixture of fentanyl and methamphetamine. The indictment further alleges that Barnard distributed 50 grams or more of methamphetamine. Finally, the indictment alleges that on December 6, 2024, Barnard possessed 500 grams or more of methamphetamine and 40 grams or more of fentanyl, all intended for distribution.

    If convicted of the charge involving 50 grams or more of methamphetamine or 40 grams or more of fentanyl, Barnard faces a minimum penalty of 5 years in prison and a maximum penalty of 40 years in prison. If convicted of the charge involving 500 grams or more of methamphetamine, Barnard faces a minimum penalty of 10 years and a maximum penalty of life in prison. The other distribution charge carries a maximum penalty of 20 years in prison.

    The charges against Barnard are the result of an investigation conducted by the West Central Drug Enforcement Task Force, Wisconsin Department of Justice Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney Robert Anderson is handling the case.

    WAUSAU MAN CHARGED WITH COCAINE TRAFFICKING AND ILLEGALLY POSSESSING FIREARMS

    Johntay L. Johnson, 39, Wausau, Wisconsin, is charged with maintaining a drug involved premise, distributing cocaine, and possessing firearms as a felon. The indictment alleges that between December 19, 2023, and November 21, 2024, Johnson used his residence in Wausau to store, manufacture, and distribute illegal drugs. The indictment further alleges that Johnson distributed cocaine on nine occasions in 2024 and possessed three firearms as a felon on September 10, 2024.

    If convicted of the drug counts, Johnson faces a maximum penalty of 20 years in prison on each count. If convicted of the felon in possession count, Johnson faces a maximum penalty of 15 years in prison. 

    The charges against Johnson were the result of an investigation conducted by the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of agents from the FBI, Wisconsin State Patrol, Wisconsin Department of Criminal Investigation, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Mountain Bay Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program. Assistant U.S. Attorney Steven P. Anderson is handling the case.

    SUN PRAIRIE MAN CHARGED WITH ILLEGALLY POSSESSING FIREARM AND AMMUNITION

    Cashius Carter, 20, Sun Prairie, Wisconsin, is charged with possessing a firearm and ammunition as a felon. The indictment alleges that Carter possessed a loaded Glock 9mm handgun and Federal 9mm ammunition between June 21, 2024, and September 26, 2024.  

    If convicted, Carter faces a maximum penalty of 15 years in prison.

    The charge against him is the result of an investigation conducted by the Fitchburg Police Department and the ATF Madison Crime Gun Task Force. Assistant U.S. Attorney Corey Stephan is handling the case.

    FITCHBURG MAN CHARGED WITH ILLEGALLY POSSESSING FIREARM

    Malcolm Whiteside, 29, Fitchburg, Wisconsin, is charged with possessing a firearm as a felon. The indictment alleges that Whiteside possessed a loaded Glock Model 27 pistol on August 12, 2024. 

    If convicted, Whiteside faces a maximum penalty of 15 years in prison.

    The charge against Whiteside is the result of an investigation conducted by the Monona Police Department, Madison Police Department, Wisconsin State Patrol, and the ATF Madison Crime Gun Task Force. Assistant U.S. Attorney Chadwick M. Elgersma is handling the case.

    MADISON MAN CHARGED WITH DRUG CRIMES

    Gregory P. Robinson, 41, Madison, Wisconsin, is charged with distributing cocaine, possessing cocaine and fentanyl intended for distribution, and maintaining a drug trafficking place. The indictment alleges that Robinson distributed cocaine on four occasions in June 2024. The indictment also alleges that on June 25, 2024, Robinson possessed cocaine, 400 grams or more of a mixture containing fentanyl and cocaine, and 40 grams or more of fentanyl, all intended for distribution. Finally, the indictment alleges that Robinson maintained a drug trafficking place from June 13, 2024, to June 25,2024.

    If convicted of the charge involving 400 grams or more, Robinson faces a minimum penalty of 10 years in prison and a maximum of life in prison. If convicted of the charge involving 40 grams or more, Robinson faces a minimum penalty of 5 years and a maximum penalty of 40 years in prison. The distribution charges, the possession of cocaine charge, and the maintaining a drug trafficking place charge all carry maximum penalties of 20 years in prison.

    The charges against Robinson are the result of an investigation conducted by the Dane County Narcotics Task Force, the Madison Police Department, and the ATF Madison Crime Gun Task Force. Assistant U.S. Attorney Colleen Lennon is handling the case.

    CHIPPEWA FALLS MAN CHARGED WITH TRAFFICKING METHAMPHETAMINE

    Leroy T. McNamara, 61, Chippewa Falls, Wisconsin, is charged with distributing methamphetamine. The indictment alleges that McNamera distributed 50 grams or more of methamphetamine on July 8, 2024, and July 24, 2024.

    If convicted, McNamara faces a mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison on each charge.

    The charges against McNamara are the result of an investigation conducted by the West Central Drug Task Force and the Chippewa County Sheriff’s Office. Assistant U.S. Attorney Megan Stelljes is handling the case.

    MIL Security OSI –

    January 30, 2025

  • MIL-OSI: From Expertise to Efficiency: How Law Practice AI Bridge Human Insight and AI Speed

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Jan. 29, 2025 (GLOBE NEWSWIRE) — Law Practice AI continues to revolutionize the legal field with its groundbreaking product, Demands AI, a tool that combines the best of human expertise with the unparalleled processing speed of artificial intelligence. Designed specifically for personal injury attorneys, AI Demands automates the creation of demand letters while maintaining the accuracy, empathy, and precision that clients expect.

    In an age when every second counts and the competition is high, AI Demands enables lawyers to achieve better results while upholding their professional integrity.

    Bridging Human Insight and AI Power

    The process of drafting demand letters has long been a time-consuming and labor-intensive task. AI Demands addresses this challenge by integrating advanced machine learning algorithms with templates and logic informed by experienced legal professionals.

    “AI should enhance human capabilities, not replace them,” said Hamid Kohan, CEO of Law Practice AI. “With Demands AI, we’re blending the speed and efficiency of technology with the nuanced understanding that only seasoned attorneys can bring. This balance ensures that every demand letter meets the highest standards of quality and effectiveness.”

    Balancing Innovation with Responsibility

    Law Practice AI is committed to bridging the gap between innovation and professional responsibility. Through tools like Demands AI and Doc Reader AI, the company enables professionals to achieve better results without compromising their ethical standards or quality of service:

    • Demands AI automates personal injury demand letter drafting, ensuring precision and compliance while saving valuable time.
    • Doc Reader AI simplifies document review and analysis, extracting key details from legal and medical files, and highlighting information critical to decision-making.

    Key Features of Demands

    1. Comprehensive Automation:
      • Generate demand letters tailored to a variety of personal injury cases, including motor vehicle accidents, slip-and-fall incidents, and dog bites.
    2. Accuracy and Compliance:
      • Ensure legal statutes and case details are incorporated seamlessly, reducing the risk of errors or omissions.
    3. Customizable Outputs:
      • Adjust templates and add personalized details to maintain the unique voice of each attorney or firm.
    4. Speed Without Compromise:
      • Produce polished demand letters in minutes, freeing up valuable time for client advocacy and case strategy.

    Combining Vision and Responsibility

    As the legal industry increasingly embraces technology, Law Practice AI stands out for its commitment to ethical AI adoption. Demands is not just a tool—it’s a solution designed to complement the skills and judgment of legal professionals.

    Kohan added: “We’re committed to ensuring that every product we create respects the expertise of our users. Practice AI is not about replacing attorneys; it’s about helping them deliver their best work more efficiently.”

    Why Demands Matters

    In an environment where accuracy and timeliness can make or break a case, Demands offers a competitive edge. By minimizing manual labor and reducing the risk of errors, the tool allows attorneys to achieve better outcomes for their clients while staying ahead of the curve in a rapidly evolving industry.

    Experience Demands AI Today

    Law Practice AI invites personal injury attorneys to experience the transformative power of Demands.

    How to Get Started

    1. Visit the Platform: Head to mylawfirm.ai to sign up—NO CREDIT CARD REQUIRED.
    2. Create Your Account: Create a user and your organization by following the steps.
    3. Access the Trial: Enjoy the benefits of the trial mode by generating your first demand at no extra fees.
    4. Subscribe: By adding your credit card, you can subscribe to Demands and generate your demand letters. We offer a transparent pricing structure.

    This simple process ensures that attorneys can quickly integrate Demands into their practices.

    About Law Practice AI

    Law Practice AI leads the way in developing AI-powered solutions tailored for legal and medical professionals. With products like Demands AI and Doc Reader AI, the company focuses on streamlining workflows, enhancing accuracy, and delivering secure, compliant tools that improve outcomes for professionals and their clients.

    For more information about Law Practice AI’s tools, visit Law Practice AI or contact us below.

    For media inquiries, please contact:
    Law Practice AI
    Address: 21731 Ventura Blvd. #175, Woodland Hills, CA 91364
    Phone: (424) 476-5858
    Email: sales@mylawfirm.ai

    Visit us on social media:
    Facebook | Instagram | LinkedIn | YouTube | X.com

    The MIL Network –

    January 30, 2025

  • MIL-OSI: Banco Itaú Chile Schedules Fourth Quarter 2024 Financial Results, Conference Call and Webcast

    Source: GlobeNewswire (MIL-OSI)

    SANTIAGO, Chile, Jan. 29, 2025 (GLOBE NEWSWIRE) — BANCO ITAÚ CHILE (SSE: ITAUCL) announced today that it will release its results for the fourth quarter ended December 31, 2024, before the market opens in Santiago, on February 28, 2025.

    On Monday, March 3, 2025, at 11:00 A.M. Santiago time (9:00 A.M. ET), the Company’s management team will host a conference call to discuss the financial results. The call will be hosted by André Gailey, CEO; Claudia Labbé Montevecchi, Head of IR and Chief Sustainability Officer; and Matías Valenzuela Barrenechea, Head of FP&A, Capital and IR.

    Conference Call Details:

    Online registration: https://registrations.events/direct/Q4I6136278

    All participants must pre-register using this link to join the conference call. Upon registering, each participant will be provided with details to connect to the call and a registrant ID.

    Webcast:

    The webcast will be available through the following link:

    https://events.q4inc.com/attendee/846439085

    Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. Following the event, the event will be available in the same link.

    Telephone and Virtual Q&A session:

    The Q&A session will be available for participants connected through the conference call and through the webcast, where attendees will be allowed to type in their questions – we will read and answer selected questions verbally.

    Investor Relations – Itaú Chile

    IR@itau.cl / ir.itau.cl

    The MIL Network –

    January 30, 2025

  • MIL-OSI: UPDATE – United Kingdom Investment Trusts

    Source: GlobeNewswire (MIL-OSI)

    GREENWICH, Conn., Jan. 29, 2025 (GLOBE NEWSWIRE) — Closed-End – David Schachter, Senior Vice President of Gabelli Funds, will travel to the United Kingdom to visit selected investment trusts.

    With over 40 years of experience exclusively with retail, long term, closed-end fund investors, Mr. Schachter, a most senior and experienced veteran of the U.S. Closed-End Fund industry, is also Vice President of The GAMCO Natural Resources, Gold & Income Trust (GNT), which trades on the NYSE.

    During the 19th century, capital was raised through closed-end funds. These funds helped build the railroads, which linked the American continent from sea to sea and led to the nation’s economic success.

    Today, in the early 21st century, closed-end funds are being threatened for elimination by hedged activists for short-term and short-sighted value extraction.

    “Closed-end funds are a metaphor for long-term, patient capital, but they also represent freedom for investors who, in a sector where mass redemptions could force portfolio managers to sell, is an essential ability to those who may not want to be herded into selling.”

    Mr. Schachter plans to visit the Gabelli office as well as the Association of Investment Companies (AIC) and speak with interested U.K. investors.

    Financial professionals and investors are invited to contact Mr. Schachter directly at (914) 921-5057.

    Gabelli Funds, LLC is the adviser to thirteen closed-end funds which trade on the NYSE: Gabelli Equity Trust (GAB), Gabelli Convertible & Income Securities Fund (GCV), Gabelli Multimedia Trust (GGT), Gabelli Utility Trust (GUT), Gabelli Dividend & Income Trust (GDV), Gabelli Global Utility & Income Trust (GLU), GAMCO Global Gold Natural Resources & Income Trust (GGN), The GDL Fund (GDL), Gabelli Healthcare & WellnessRX Trust (GRX), GAMCO Natural Resources, Gold & Income Trust (GNT), Gabelli Global Small and Mid-Cap Value Trust (GGZ), Bancroft Fund (BCV) and Ellsworth Growth & Income Fund (ECF). As of December 31, 2024, the thirteen Gabelli closed-end funds had total assets of $7.3 billion.

    Investors should carefully consider the investment objectives, risks, charges, and expenses of a Fund before investing. For more information regarding the Funds, call:

    David Schachter
    (914) 921-5057
    dschachter@gabelli.com

    A Fund’s NAV per share will fluctuate with changes in the market value of the Fund’s portfolio securities. Stocks are subject to market, economic, and business risks that cause their prices to fluctuate. Investors acquire shares of the Fund on a securities exchange at market value, which fluctuates according to the dynamics of supply and demand. When Fund shares are sold, they may be worth more or less than their original cost. Consequently, you can lose money by investing in a Fund.

    The MIL Network –

    January 30, 2025

  • MIL-OSI Economics: Microsoft Cloud and AI strength drives second quarter results

    Source: Microsoft

    Headline: Microsoft Cloud and AI strength drives second quarter results

    Microsoft Cloud and AI Strength Drives Second Quarter Results

    REDMOND, Wash. — January 29, 2025 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2024, as compared to the corresponding period of last fiscal year:

    ·        Revenue was $69.6 billion and increased 12%

    ·        Operating income was $31.7 billion and increased 17% (up 16% in constant currency)

    ·        Net income was $24.1 billion and increased 10%

    ·        Diluted earnings per share was $3.23 and increased 10%

    “We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead,” said Satya Nadella, chairman and chief executive officer of Microsoft. “Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.”

    “This quarter Microsoft Cloud revenue was $40.9 billion, up 21% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. ”We remain committed to balancing operational discipline with continued investments in our cloud and AI infrastructure.”

    Business Highlights

    Revenue in Productivity and Business Processes was $29.4 billion and increased 14% (up 13% in constant currency), with the following business highlights:

    ·        Microsoft 365 Commercial products and cloud services revenue increased 15% driven by Microsoft 365 Commercial cloud revenue growth of 16% (up 15% in constant currency)

    ·        Microsoft 365 Consumer products and cloud services revenue increased 8% driven by Microsoft 365 Consumer cloud revenue growth of 8%

    ·        LinkedIn revenue increased 9%

    ·        Dynamics products and cloud services revenue increased 15% (up 14% in constant currency) driven by Dynamics 365 revenue growth of 19% (up 18% in constant currency)

    Revenue in Intelligent Cloud was $25.5 billion and increased 19%, with the following business highlights:

    ·        Server products and cloud services revenue increased 21% driven by Azure and other cloud services revenue growth of 31%

    Revenue in More Personal Computing was $14.7 billion and was relatively unchanged, with the following business highlights:

    ·        Windows OEM and Devices revenue increased 4%

    ·        Xbox content and services revenue increased 2%

    ·        Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 20% in constant currency)

    Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases in the second quarter of fiscal year 2025.

    Business Outlook

    Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

    Quarterly Highlights, Product Releases, and Enhancements 

    Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

    Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

    Environmental, Social, and Governance (ESG)

    To learn more about Microsoft’s corporate governance and our environmental and social practices, please visit our investor relations Board and ESG website and reporting at Microsoft.com/transparency. 

    Webcast Details

    Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Brett Iversen, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on January 29, 2026.

    Constant Currency

    Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

    Financial Performance Constant Currency Reconciliation

     

    Three Months Ended December 31,

     ($ in millions, except per share amounts)

    Revenue

    Operating Income

    Net Income

    Diluted Earnings per Share

    2023 As Reported (GAAP)

    $62,020

    $27,032

    $21,870

    $2.93

    2024 As Reported (GAAP)

    $69,632

    $31,653

    $24,108

    $3.23

    Percentage Change Y/Y (GAAP)

    12%

    17%

    10%

    10%

    Constant Currency Impact

    $171

    $206

    $14

    $0.00

    Percentage Change Y/Y Constant Currency

    12%

    16%

    10%

    10%

     

    Segment Revenue Constant Currency Reconciliation

     

    Three Months Ended December 31,

     ($ in millions)

    Productivity and Business Processes

    Intelligent Cloud

    More Personal Computing

    2023 As Reported (GAAP)

    $25,854

    $21,525

    $14,641

    2024 As Reported (GAAP)

    $29,437

    $25,544

    $14,651

    Percentage Change Y/Y (GAAP)

    14%

    19%

    0%

    Constant Currency Impact

    $142

    $(22)

    $51

    Percentage Change Y/Y Constant Currency

    13%

    19%

    0%

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

    Selected Product and Service Revenue Constant Currency Reconciliation        

     

    Three Months Ended December 31, 2024

    Percentage Change Y/Y (GAAP)

    Constant Currency Impact

    Percentage Change Y/Y Constant Currency

    Microsoft Cloud

    21%

    0%

    21%

    Microsoft 365 Commercial products and cloud services

    15%

    0%

    15%

    Microsoft 365 Commercial cloud

    16%

    (1)%

    15%

    Microsoft 365 Consumer products and cloud services

    8%

    0%

    8%

    Microsoft 365 Consumer cloud

    8%

    0%

    8%

    LinkedIn

    9%

    0%

    9%

    Dynamics products and cloud services

    15%

    (1)%

    14%

    Dynamics 365

    19%

    (1)%

    18%

    Server products and cloud services

    21%

    0%

    21%

    Azure and other cloud services

    31%

    0%

    31%

    Windows OEM and Devices

    4%

    0%

    4%

    Xbox content and services

    2%

    0%

    2%

    Search and news advertising excluding traffic acquisition costs

    21%

    (1)%

    20%

     

    About Microsoft

    Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

    Forward-Looking Statements

    Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

    ·        intense competition in all of our markets that may adversely affect our results of operations;

    ·        focus on cloud-based and AI services presenting execution and competitive risks;

    ·        significant investments in products and services that may not achieve expected returns;

    ·        acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;

    ·        impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

    ·        cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

    ·        disclosure and misuse of personal data that could cause liability and harm to our reputation;

    ·        the possibility that we may not be able to protect information stored in our products and services from use by others;

    ·        abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;

    ·        products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

    ·        issues about the use of AI in our offerings that may result in reputational or competitive harm, or legal liability;

    ·        excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

    ·        supply or quality problems;

    ·        government enforcement under competition laws and new market regulation may limit how we design and market our products;

    ·        potential consequences of trade and anti-corruption laws;

    ·        potential consequences of existing and increasing legal and regulatory requirements;

    ·        laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;

    ·        claims against us that may result in adverse outcomes in legal disputes;

    ·        uncertainties relating to our business with government customers;

    ·        additional tax liabilities;

    ·        sustainability regulations and expectations that may expose us to increased costs and legal and reputational risk;

    ·        an inability to protect and utilize our intellectual property may harm our business and operating results;

    ·        claims that Microsoft has infringed the intellectual property rights of others;

    ·        damage to our reputation or our brands that may harm our business and results of operations;

    ·        adverse economic or market conditions that may harm our business;

    ·        catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business;

    ·        exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange; and

    ·        the dependence of our business on our ability to attract and retain talented employees.

    For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

    All information in this release is as of December 31, 2024. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

    For more information, press only:

    Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

    For more information, financial analysts and investors only:

    Brett Iversen, Vice President, Investor Relations, (425) 706-4400

    Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.


     

    MICROSOFT CORPORATION

    INCOME STATEMENTS

    (In millions, except per share amounts) (Unaudited)

    Three Months Ended

     December 31,

    Six Months Ended

     December 31,

     

    2024

     

    2023

     

    2024

     

    2023

    Revenue:

    Product

     $16,219

     $18,941

     $31,491

     $34,476

    Service and other

    53,413

     

    43,079

     

    103,726

     

    84,061

    Total revenue

    69,632

     

    62,020

     

    135,217

     

    118,537

    Cost of revenue:

    Product

    3,856

    5,964

    7,150

    9,495

    Service and other

    17,943

     

    13,659

     

    34,748

     

    26,430

    Total cost of revenue

    21,799

     

    19,623

     

    41,898

     

    35,925

    Gross margin

    47,833

    42,397

    93,319

    82,612

    Research and development

    7,917

    7,142

    15,461

    13,801

    Sales and marketing

    6,440

    6,246

    12,157

    11,433

    General and administrative

    1,823

    1,977

    3,496

    3,451

    Operating income

    31,653

     

    27,032

     

    62,205

     

    53,927

    Other expense, net

    (2,288)

     

    (506)

     

    (2,571)

     

    (117)

    Income before income taxes

    29,365

    26,526

    59,634

    53,810

    Provision for income taxes

    5,257

     

    4,656

     

    10,859

     

    9,649

    Net income

     $24,108

     

     $21,870

     

     $48,775

     

     $44,161

    Earnings per share:

    Basic

     $3.24

     $2.94

     $6.56

     $5.94

    Diluted

     $3.23

     $2.93

     $6.53

     $5.92

    Weighted average shares outstanding:

    Basic

    7,435

    7,432

    7,434

    7,431

    Diluted

    7,468

     

    7,468

     

    7,469

     

    7,465

     


     

    COMPREHENSIVE INCOME STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     December 31,

    Six Months Ended

     December 31,

     

    2024

     

    2023

     

    2024

     

    2023

    Net income

     $24,108

     

     $21,870

     

     $48,775

     

     $44,161

    Other comprehensive income (loss), net of tax:

    Net change related to derivatives

    34

    (3)

    24

    18

    Net change related to investments

    (434)

    1,331

    680

    1,071

    Translation adjustments and other

    (1,034)

     

    660

     

    (730)

     

    305

    Other comprehensive income (loss)

    (1,434)

     

    1,988

     

    (26)

     

    1,394

    Comprehensive income

     $22,674

     

     $23,858

     

     $48,749

     

     $45,555

     


     

    BALANCE SHEETS

    (In millions) (Unaudited)

     

    December 31,

    2024

    June 30,

     2024

    Assets

    Current assets:

    Cash and cash equivalents

     $17,482

     $18,315

    Short-term investments

    54,073

    57,228

    Total cash, cash equivalents, and short-term investments

    71,555

    75,543

    Accounts receivable, net of allowance for doubtful accounts of $662 and $830

    48,188

    56,924

    Inventories

    909

    1,246

    Other current assets

    26,428

    26,021

    Total current assets

    147,080

    159,734

    Property and equipment, net of accumulated depreciation of $82,820 and $76,421

    166,902

    135,591

    Operating lease right-of-use assets

    22,816

    18,961

    Equity and other investments

    15,581

    14,600

    Goodwill

    119,191

    119,220

    Intangible assets, net

    25,385

    27,597

    Other long-term assets

    36,943

    36,460

    Total assets

     $533,898

     $512,163

    Liabilities and stockholders’ equity

    Current liabilities:

    Accounts payable

     $22,608

     $21,996

    Short-term debt

    0

    6,693

    Current portion of long-term debt

    5,248

    2,249

    Accrued compensation

    9,176

    12,564

    Short-term income taxes

    6,056

    5,017

    Short-term unearned revenue

    45,508

    57,582

    Other current liabilities

    20,286

    19,185

    Total current liabilities

    108,882

    125,286

    Long-term debt

    39,722

    42,688

    Long-term income taxes

    24,389

    27,931

    Long-term unearned revenue

    2,537

    2,602

    Deferred income taxes

    2,513

    2,618

    Operating lease liabilities

    17,254

    15,497

    Other long-term liabilities

    35,906

    27,064

    Total liabilities

    231,203

    243,686

    Commitments and contingencies

    Stockholders’ equity:

    Common stock and paid-in capital – shares authorized 24,000; outstanding 7,435 and 7,434

    104,829

    100,923

    Retained earnings

    203,482

    173,144

    Accumulated other comprehensive loss

    (5,616)

    (5,590)

    Total stockholders’ equity

    302,695

    268,477

    Total liabilities and stockholders’ equity

     $533,898

     $512,163

     


     

    CASH FLOWS STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     December 31,

    Six Months Ended

     December 31,

     

    2024

     

    2023

     

    2024

     

    2023

    Operations

    Net income

     $24,108

     $21,870

     $48,775

     $44,161

    Adjustments to reconcile net income to net cash from operations:

    Depreciation, amortization, and other

    6,827

    5,959

    14,210

    9,880

    Stock-based compensation expense

    3,089

    2,828

    5,921

    5,335

    Net recognized losses on investments and derivatives

    976

    198

    851

    212

    Deferred income taxes

    (1,158)

    (1,702)

    (2,591)

    (2,270)

    Changes in operating assets and liabilities:

    Accounts receivable

    (5,978)

    (2,951)

    8,059

    8,083

    Inventories

    711

    1,474

    338

    969

    Other current assets

    (353)

    725

    (435)

    (71)

    Other long-term assets

    (1,089)

    (1,427)

    (2,850)

    (3,440)

    Accounts payable

    958

    (2,521)

    42

    (1,307)

    Unearned revenue

    (6,338)

    (5,538)

    (11,891)

    (9,664)

    Income taxes

    (3,395)

    (1,554)

    (2,379)

    (129)

    Other current liabilities

    3,217

    1,518

    (2,262)

    (2,588)

    Other long-term liabilities

    716

     

    (26)

     

    683

     

    265

    Net cash from operations

    22,291

     

    18,853

     

    56,471

     

    49,436

    Financing

    Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net

    0

    (8,490)

    (5,746)

    10,202

    Proceeds from issuance of debt

    0

    10,773

    0

    17,846

    Repayments of debt

    0

    (2,916)

    (966)

    (4,416)

    Common stock issued

    256

    261

    962

    946

    Common stock repurchased

    (4,986)

    (4,000)

    (9,093)

    (8,831)

    Common stock cash dividends paid

    (6,170)

    (5,574)

    (11,744)

    (10,625)

    Other, net

    (343)

     

    (201)

     

    (1,232)

     

    (508)

    Net cash from (used in) financing

    (11,243)

     

    (10,147)

     

    (27,819)

     

    4,614

    Investing

    Additions to property and equipment

    (15,804)

    (9,735)

    (30,727)

    (19,652)

    Acquisition of companies, net of cash acquired, and purchases of intangible and other assets

    (1,405)

    (65,029)

    (3,254)

    (66,215)

    Purchases of investments

    (2,050)

    (4,258)

    (3,670)

    (12,718)

    Maturities of investments

    2,604

    4,150

    4,740

    19,868

    Sales of investments

    2,559

    1,600

    4,527

    6,930

    Other, net

    (16)

    1,347

    (929)

    365

    Net cash used in investing

    (14,112)

     

    (71,925)

     

    (29,313)

     

    (71,422)

    Effect of foreign exchange rates on cash and cash equivalents

    (294)

     

    72

     

    (172)

     

    (27)

    Net change in cash and cash equivalents

    (3,358)

    (63,147)

    (833)

    (17,399)

    Cash and cash equivalents, beginning of period

    20,840

     

    80,452

     

    18,315

     

    34,704

    Cash and cash equivalents, end of period

     $17,482

     

     $17,305

     

     $17,482

     

     $17,305

     


     

    SEGMENT REVENUE AND OPERATING INCOME

    (In millions) (Unaudited)

     

    Three Months Ended

     December 31,

     

    Six Months Ended

     December 31,

     

     

     

    2024

     

    2023

     

    2024

     

    2023

    Revenue

     

     

     

     

     

     

     

    Productivity and Business Processes

     $29,437

     

     $25,854

     

     $57,754

     

     $51,080

    Intelligent Cloud

    25,544

     

    21,525

     

    49,636

     

    41,538

    More Personal Computing

    14,651

     

    14,641

     

    27,827

     

    25,919

    Total

     $69,632

     

     $62,020

     

     $135,217

     

     $118,537

    Operating Income

     

     

     

     

     

     

     

    Productivity and Business Processes

     $16,885

     

     $14,515

     

     $33,401

     

     $28,812

    Intelligent Cloud

    10,851

     

    9,555

     

    21,354

     

    18,463

    More Personal Computing

    3,917

     

    2,962

     

    7,450

     

    6,652

    Total

     $31,653

     

     $27,032

     

     $62,205

     

     $53,927

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

     

    MIL OSI Economics –

    January 30, 2025

  • MIL-OSI: InspireSemi Announces Administrative Update Webinar for Shareholders

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia and AUSTIN, Texas, Jan. 29, 2025 (GLOBE NEWSWIRE) — Inspire Semiconductor Holdings Inc. (“InspireSemi” or the “Company”), a chip design company that provides revolutionary high-performance, energy-efficient accelerated computing solutions for High Performance Computing (HPC), AI, graph analytics, and other compute-intensive workloads, is pleased to announce that it will provide an administrative update by live webinar on February 5, 2025, at 1:00 p.m. Eastern Time.

    This will primarily be an open forum for shareholders to clarify any remaining questions regarding the previously announced voluntary delisting from the TSX Venture Exchange, which was completed on December 31, 2024. A more general business update will also be scheduled shortly.

    You can also view a related list Frequently Asked Questions and Answers on the company website at: FAQ document.

    To join the live webinar please use the following Zoom information:

    Join from PC, Mac, iPad, or Android:
    https://us06web.zoom.us/j/86160306729?pwd=TfhZhAA4v2YvdbsbIhJws8cQD3fcj5.1

    Webinar ID: 861 6030 6729
    Passcode: 060367

    Phone one-tap:
    +13462487799,,86160306729#,,,,*060367# US (Houston)
    +12532158782,,86160306729#,,,,*060367# US (Tacoma)

    Join via audio:
    +1 346 248 7799 US (Houston)
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    +1 564 217 2000 US
    +1 646 931 3860 US
    +44 131 460 1196 United Kingdom
    +44 203 481 5237 United Kingdom
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    +44 203 901 7895 United Kingdom
    +44 208 080 6591 United Kingdom
    +44 208 080 6592 United Kingdom
    +44 330 088 5830 United Kingdom
    +1 787 945 1488 Puerto Rico
    +1 787 966 7727 Puerto Rico
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    +351 308 804 188 Portugal
    +351 308 810 988 Portugal
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    +52 556 826 9800 Mexico
    +52 558 659 6001 Mexico
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    +52 554 161 4288 Mexico
    +49 69 5050 0952 Germany
    +49 695 050 2596 Germany
    +49 69 7104 9922 Germany
    +49 69 3807 9883 Germany
    +49 69 3807 9884 Germany
    +49 69 5050 0951 Germany
    +61 3 7018 2005 Australia
    +61 7 3185 3730 Australia
    +61 8 6119 3900 Australia
    +61 8 7150 1149 Australia
    +61 2 8015 6011 Australia

    International numbers available: https://us06web.zoom.us/u/kf1d3JWW8

    About InspireSemi

    InspireSemi provides revolutionary high-performance, energy-efficient accelerated computing solutions for High-Performance Computing (HPC), AI, graph analytics, and other compute-intensive workloads. The Thunderbird I ‘supercomputer-cluster-on-a-chip’ is a disruptive, next-generation datacenter accelerator designed to address multiple underserved and diversified industries, including financial services, computer-aided engineering, energy, climate modeling, cybersecurity, and life sciences & drug discovery. Based on the open standard RISC-V instruction set architecture, InspireSemi’s solutions set new standards of performance, energy efficiency, and ease of programming. InspireSemi is headquartered in Austin, TX.

    For more information visit https://inspiresemi.com
    Follow InspireSemi on LinkedIn

    Company Contact
    Jack Cartwright, CFO (Interim)
    (737) 471-3230
    invest@inspiresemi.com

    Cautionary Statement on Forward-Looking Information

    This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Statements concerning InspireSemi’s objectives, goals, strategies, priorities, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of InspireSemi are forward-looking statements. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass.

    Forward-looking information includes, but is not limited to, information regarding the Delisting and any future listing. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this presentation, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of InspireSemi, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to the Company including information obtained from third-party industry analysts and other third-party sources and are based on management’s current expectations or beliefs. Any and all forward-looking information contained in this news release is expressly qualified by this cautionary statement.

    Investors are cautioned that forward-looking information is not based on historical facts but instead reflect management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Forward-looking information reflects management’s current beliefs and is based on information currently available to them and on assumptions they believe to be not unreasonable in light of all of the circumstances. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

    Should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

    The MIL Network –

    January 30, 2025

  • MIL-OSI: Mountain Lake Acquisition Corp. Announces the Separate Trading of its Class A Ordinary Shares and Rights Commencing February 3, 2025

    Source: GlobeNewswire (MIL-OSI)

    NEVADA, Jan. 29, 2025 (GLOBE NEWSWIRE) — Mountain Lake Acquisition Corp. (NASDAQ: MLAC) (the “Company”) announced today that, commencing February 3, 2025, holders of the units sold in the Company’s initial public offering completed on December 16, 2024 may elect to separately trade the Class A ordinary shares of the Company and the rights included in such units on The Nasdaq Global Market (“Nasdaq”).

    The Class A ordinary shares and rights that are separated will trade on Nasdaq under the symbols “MLAC” and “MLACR,” respectively. Those units not separated will continue to trade on Nasdaq under the symbol “MLACU.” Holders of units will need to have their brokers contact Continental Stock Transfer & Trust Company, the Company’s transfer agent, in order to separate the units into Class A ordinary shares and rights.

    The units were initially offered by the Company in an underwritten offering. BTIG, LLC acted as sole book-running manager of the offering.

    This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About Mountain Lake Acquisition Corp.

    Mountain Lake Acquisition Corp. is a blank check company newly incorporated as a Cayman Islands exempted company with limited liability for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company may pursue an initial business combination target in any business or industry or at any stage of its corporate evolution. The Company’s primary focus will be in completing a business combination with an established business of scale poised for continued growth, led by a highly regarded management team.

    Forward-Looking Statements

    This press release contains statements that constitute “forward-looking statements,” including with respect to the anticipated use of the net proceeds of the offering and the Company’s search for an initial business combination. No assurance can be given that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and prospectus for the Company’s offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

    Contact:

    Douglas Horlick
    doug@mountainlakeacquisition.com
    Mountain Lake Acquisition Corp.
    930 Tahoe Blvd STE 802 PMB 45
    Incline Village, NV 89451
    (775) 204-1489 

    The MIL Network –

    January 30, 2025

  • MIL-OSI: Premium Income Corporation Announces Year End Results

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 29, 2025 (GLOBE NEWSWIRE) — (TSX: PIC.A; PIC.PR.A) Premium Income Corporation today announces results of operations for the fiscal year ended October 31, 2024. Increase in net assets attributable to holders of Class A shares amounted to $76.3 million or $4.34 per Class A share. Net assets attributable to holders of Class A shares were $83.6 million or $4.14 per Class A share. Cash distributions of $0.86 per Preferred share and $0.81 per Class A share were paid during the year.

    Premium Income Corporation is a mutual fund corporation, which invests in a portfolio consisting principally of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and the Toronto Dominion Bank. The Fund employs an active covered call writing strategy to enhance the income generated by the portfolio and to reduce volatility.  

    The investment portfolio of the Fund is managed by its investment manager, Mulvihill Capital Management Inc. The Fund’s Preferred and Class A shares are listed on the Toronto Stock Exchange under the symbols PIC.PR.A and PIC.A respectively.

    Selected Financial Information: ($ Millions)  
       
    Statement of Financial Position   2024
    As at October 31  
    Assets $ 397.4
    Liabilities   (313.7)
    Net Assets Attributable to  
    Holders of Class A Shares $ 83.6
       
    Statement of Comprehensive Income  
    Year ended October 31  
    Income $ 96.8
    Expenses   (4.3)
    Operating Loss   92.4
    Preferred Share Distributions   (16.1)
    Increase in Net Assets Attributable  
    to Holders of Class A Shares $ 76.3
         

    For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172 or visit www.mulvihill.com

    John Germain, Senior Vice President & CFO Mulvihill Capital Management Inc.
    121 King Street West
    Suite 2600
    Toronto, Ontario, M5H 3T9
    416.681.3966; 1.800.725.7172
    www.mulvihill.com
    info@mulvihill.com
       

    Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

    The MIL Network –

    January 30, 2025

  • MIL-OSI: NorthEast Community Bancorp, Inc. Reports Results for the Fourth Quarter and Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    WHITE PLAINS, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) — NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), generated net income of $10.9 million, or $0.83 per basic share and $0.80 per diluted share, for the fourth quarter ended December 31, 2024 compared to net income of $12.1 million, or $0.82 per basic and diluted share, for the fourth quarter ended December 31, 2023. In addition, the Company generated net income of $47.8 million, or $3.64 per basic share and $3.58 per diluted share, for the year ended December 31, 2024 compared to net income of $46.3 million, or $3.32 per basic share and diluted share, for the year ended December 31, 2023.

    Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated “We are pleased to report another quarter of strong earnings due to the strong performance of our loan portfolio.   Despite the challenging high interest rate environment during 2023 that continued into most of 2024, loan demand remained strong with originations and outstanding commitments remaining robust. As has been in the past, construction lending in high demand-high absorption areas continues to be our focus.”

    Highlights for the fourth quarter and the year ended December 31, 2024 are as follows:

    • Performance metrics continue to be strong with a return on average total assets ratio of 2.19%, a return on average shareholders’ equity ratio of 13.80%, and an efficiency ratio of 38.99% for the quarter ended December 31, 2024. For the year ended December 31, 2024, the Company generated a return on average total assets ratio of 2.50%, a return on average shareholders’ equity ratio of 15.83%, and an efficiency ratio of 37.00%.
    • Net interest income increased by $91,000 and $5.6 million, or 0.4% and 5.8%, respectively, for the quarter and year ended December 31, 2024 compared to the same periods in 2023.
    • Our net loans receivable increased by $227.0 million, or 14.3%, to $1.8 billion at December 31, 2024 compared to $1.6 billion at December 31, 2023.

    Balance Sheet Summary

    Total assets increased $246.2 million, or 14.0%, to $2.0 billion at December 31, 2024, from $1.8 billion at December 31, 2023. The increase in assets was primarily due to increases in net loans of $227.0 million, cash and cash equivalents of $9.6 million, equity securities of $3.9 million, real estate owned of $3.7 million, and other assets of $3.3 million.

    Cash and cash equivalents increased $9.6 million, or 14.0%, to $78.3 million at December 31, 2024 from $68.7 million at December 31, 2023. The increase in cash and cash equivalents was a result of an increase in deposits of $270.3 million, partially offset by a decrease in borrowings of $64.0 million, an increase of $227.0 million in net loans, dividends to shareholders of $8.7 million, and stock repurchases of $2.4 million.

    Equity securities increased $3.9 million, or 21.5%, to $22.0 million at December 31, 2024 from $18.1 million at December 31, 2023. The increase in equity securities was attributable to the purchase of $4.0 million in equity securities during the second half of 2024, offset by market depreciation of $109,000 due to market interest rate volatility during the year ended December 31, 2024.

    Securities held-to-maturity decreased $1.2 million, or 7.8%, to $14.6 million at December 31, 2024 from $15.9 million at December 31, 2023 due to $1.2 million in maturities and pay-downs of various investment securities, partially offset by a decrease of $10,000 in the allowance for credit losses for held-to-maturity securities.

    Loans, net of the allowance for credit losses, increased $227.0 million, or 14.3%, to $1.8 billion at December 31, 2024 from $1.6 billion at December 31, 2023. The increase in loans, net of the allowance for credit losses, was primarily due to loan originations of $656.0 million during the year ended December 31, 2024, consisting primarily of $573.8 million in construction loans with respect to which approximately 36.3% of the funds were disbursed at loan closings, with the remaining funds to be disbursed over the terms of the construction loans. In addition, during the year ended December 31, 2024, we originated $54.9 million in commercial and industrial loans, $14.0 million in non-residential loans, $12.6 million in multi-family loans, and $600,000 in mixed-use loans. We also originated $9.2 million in letters of credit.

    Loan originations during the year ended December 31, 2024 resulted in a net increase of $206.8 million in construction loans, $8.6 million in commercial and industrial loans, $8.3 million in non-residential loans, $7.7 million in multi-family loans, and $409,000 in consumer loans. The increase in our loan portfolio was partially offset by decreases of $3.1 million in mixed-use loans and $1.8 million in residential loans, coupled with normal pay-downs and principal reductions.

    The allowance for credit losses related to loans decreased to $4.8 million as of December 31, 2024, from $5.1 million as of December 31, 2023. The decrease in the allowance for credit losses related to loans was due to charge-offs totaling $347,000, offset by provision for credit losses totaling $84,000.  

    Premises and equipment decreased $647,000, or 2.5%, to $24.8 million at December 31, 2024 from $25.5 million at December 31, 2023 primarily due to the depreciation of fixed assets.

    Investments in Federal Home Loan Bank stock decreased $532,000, or 57.3%, to $397,000 at December 31, 2024 from $929,000 at December 31, 2023. The decrease was due primarily to the mandatory redemption of Federal Home Loan Bank stock totaling $630,000 in connection with the maturity of $14.0 million in advances in 2024, offset by purchases of Federal Home Loan Bank stock totaling $98,000 due to the growth of our mortgage loan portfolio.

    Bank owned life insurance (“BOLI”) increased $656,000, or 2.6%, to $25.7 million at December 31, 2024 from $25.1 million at December 31, 2023 due to increases in the BOLI cash value.

    Accrued interest receivable increased $1.2 million, or 9.5%, to $13.5 million at December 31, 2024 from $12.3 million at December 31, 2023 due to an increase in the loan portfolio.

    Real estate owned increased $3.7 million, or 251.6%, to $5.1 million at December 31, 2024 from $1.5 million at December 31, 2023 due to foreclosure of a property, with a book value of $4.4 million, located in the Bronx, New York, offset by charge-offs totaling $689,000 resulting from a decrease in the estimated fair value of a foreclosed property located in Pittsburgh, Pennsylvania.

    Right of use assets — operating decreased $565,000, or 12.4%, to $4.0 million at December 31, 2024 from $4.6 million at December 31, 2023, primarily due to amortization.

    Other assets increased $3.3 million, or 40.5%, to $11.3 million at December 31, 2024 from $8.0 million at December 31, 2023 due to increases of $2.8 million in tax assets, $476,000 in suspense accounts, and $6,000 in miscellaneous assets, partially offset by decreases of $40,000 in prepaid expenses and $2,000 in securities receivables.

    Total deposits increased $270.3 million, or 19.3%, to $1.7 billion at December 31, 2024 from $1.4 billion at December 31, 2023. The increase in deposits was primarily due to the Bank offering competitive interest rates to attract deposits. This resulted in a shift in deposits whereby certificates of deposit increased $239.7 million, or 31.5%, and NOW/money market accounts increased $98.0 million, or 67.4%, partially offset by decreases in savings account balances of $54.3 million, or 28.2%, and non-interest bearing demand deposits of $14.7 million, or 4.9%.

    Federal Reserve Bank borrowings of $50.0 million at December 31, 2023 and Federal Home Loan Bank advances of $14.0 million at December 31, 2023 were paid-off during the year ended December 31, 2024.

    Advance payments by borrowers for taxes and insurance decreased $402,000, or 19.9%, to $1.6 million at December 31, 2024 from $2.0 million at December 31, 2023 due primarily to real estate tax payments for borrowers.

    Lease liability – operating decreased $517,000, or 11.2%, to $4.1 million at December 31, 2024 from $4.6 million at December 31, 2023, primarily due to amortization.

    Accounts payable and accrued expenses increased $972,000, or 7.2%, to $14.5 million at December 31, 2024 from $13.6 million at December 31, 2023 due primarily to increases in dividends payable and other payables of $856,000 and deferred compensation of $729,000, partially offset by decreases in accrued interest expense of $102,000, suspense account for loan closings of $99,000, and accrued expense of $79,000. The allowance for credit losses for off-balance sheet commitments decreased $333,000, or 32.1%, to $704,000 at December 31, 2024 from $1.0 million at December 31, 2023.

    Stockholders’ equity increased $39.7 million, or 14.2% to $319.1 million at December 31, 2024, from $279.3 million at December 31, 2023. The increase in stockholders’ equity was due to net income of $47.8 million for the year ended December 31, 2024, the amortization expense of $2.0 million relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, an increase of $1.3 million in earned employee stock ownership plan shares coupled with a reduction of $475,000 in unearned employee stock ownership plan shares, and an exercise of stock options totaling $14,000, partially offset by dividends paid and declared of $8.7 million, stock repurchases and stock repurchase excise taxes totaling $2.5 million, awarding restricted stock totaling $725,000. and $93,000 in other comprehensive income.

    Results of Operations for the Quarter Ended December 31, 2024 and 2023

    Net Interest Income

    Net interest income was $25.3 million for the quarter ended December 31, 2024, as compared to $25.2 million for the quarter ended December 31, 2023. The increase in net interest income of $92,000, or 0.4%, was primarily due to an increase in interest income that exceeded an increase in interest expense.

    The increase in interest income is attributable to increases in the average balances of loans, interest-bearing deposits, and investment securities, partially offset by a decrease in the average balances of FHLB stock. However, the Federal Reserve’s decrease of interest rates starting in September 2024 impacted the yield on our interest earning assets.

    The increase in market interest rates in 2023 that continued until September 2024 also caused an increase in our interest expense. As a result, the increase in interest expense for the quarter ended December 31, 2024 was due to an increase in the cost of funds on our deposits. The increase in interest expense was also due to an increase in the average balances on our certificates of deposits and our interest-bearing demand deposits, offset by a decrease in the average balances on our savings and club deposits and our borrowed money.

    Total interest and dividend income increased $3.3 million, or 9.0%, to $40.5 million for the quarter ended December 31, 2024 from $37.1 million for the quarter ended December 31, 2023. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $249.5 million, or 15.0%, to $1.9 billion for the quarter ended December 31, 2024 from $1.7 billion for the quarter ended December 31, 2023, partially offset by a decrease in the yield on interest earning assets by 47 basis points from 8.93% for the quarter ended December 31, 2023 to 8.46% for the quarter ended December 31, 2024.

    Interest expense increased $3.3 million, or 27.3%, to $15.2 million for the quarter ended December 31, 2024 from $11.9 million for the quarter ended December 31, 2023. The increase in interest expense was due to an increase in the cost of interest bearing liabilities by 20 basis points from 4.14% for the quarter ended December 31, 2023 to 4.34% for the quarter ended December 31, 2024 and an increase in average interest bearing liabilities of  $247.3 million, or 21.5%, to $1.4 billion for the quarter ended December 31, 2024 from $1.2 billion for the quarter ended December 31, 2023.

    Our net interest margin decreased 77 basis points, or 12.7%, to 5.29% for the quarter ended December 31, 2024 compared to 6.06% for the quarter ended December 31, 2023. The decrease in the net interest margin was due to an increase in the cost of funds on interest-bearing liabilities and a decrease in the yield on interest-earning assets.

    Credit Loss Expense

    The Company recorded a credit loss expense of $26,000 for the quarter ended December 31, 2024 compared to a credit loss expense of $205,000 for the quarter ended December 31, 2023. The credit loss expense of $26,000 for the quarter ended December 31, 2024 was comprised of credit loss expense for loans of $230,000 due to charge-offs of $232,000 in unpaid overdrafts in our demand deposit accounts, offset by credit loss expense reduction for off-balance sheet commitments of $204,000 primarily attributable to a decrease in the aggregate unfunded off-balance sheet commitments.

    The credit loss expense of $205,000 for the three months ended December 31, 2023 was comprised of credit loss expense for loans of $352,000 and credit loss expense for held-to-maturity investment securities of $6,000, partially offset by credit loss expense reduction for off-balance sheet commitments of $153,000.

    With respect to the allowance for credit losses for loans, we charged-off $232,000 during the quarter ended December 31, 2024 as compared to charge-offs of $27,000 during the quarter ended December 31, 2023. The charge-offs during both periods were against various unpaid overdrafts in our demand deposit accounts.

    We recorded no recoveries from previously charged-off loans during the quarter ended December 31, 2024 and 2023.

    Non-Interest Income

    Non-interest income for the quarter ended December 31, 2024 was $149,000 compared to non-interest income of $1.4 million for the quarter ended December 31, 2023. The decrease of $1.2 million, or 89.2%, in total non-interest income was primarily due to decreases of $1.2 million in unrealized gain (loss) on equity securities, $115,000 in investment advisory fees, and $12,000 in miscellaneous other non-interest income, partially offset by increases of $40,000 from sale/disposition of fixed assets, $14,000 in BOLI income, and $11,000 in other loan fees and service charges.

    The increase in unrealized gain (loss) on equity securities was due to an unrealized loss of $554,000 on equity securities during the quarter ended December 31, 2024 compared to an unrealized gain of $621,000 on equity securities during the quarter ended December 31, 2023. The unrealized loss of $554,000 on equity securities during the quarter ended December 31, 2024 was due to market interest rate volatility during the quarter ended December 31, 2024.

    The decrease in investment advisory fees was due to the disposition in January 2024 of the Bank’s assets relating to the Harbor West Wealth Management Group. As a result of the transaction, the Bank no longer generates investment advisory fees.

    Regarding the sale/disposition of fixed assets, we recorded gains of $22,000 during the quarter ended December 31, 2024 compared to losses of $18,000 during the quarter ended December 31, 2023.  

    The increase in BOLI income of $14,000 was due to an increase in the yield on BOLI assets.

    The increase of $11,000 in other loan fees and service charges was due to an increase of $24,000 in ATM/debit card/ACH fees and an increase of $2,000 in deposit account fees, partially offset by a decrease of $15,000 in other loan fees and loan servicing fees.

    Non-Interest Expense

    Non-interest expense increased $688,000, or 7.5%, to $9.9 million for the quarter ended December 31, 2024 from $9.2 million for the quarter ended December 31, 2023. The increase resulted primarily from increases of $444,000 in salaries and employee benefits, $163,000 in real estate owned expense, $108,000 in outside data processing expense, $79,000 in other operating expense, $18,000 in equipment expense, $7,000 in occupancy expense, and $7,000 in advertising expense, partially offset by a decrease of $138,000 in loss on the disposition of the Bank’s assets relating to the Harbor West Wealth Management Group.

    Income Taxes

    We recorded income tax expense of $4.6 million and $5.1 million for the quarter ended December 31, 2024 and 2023, respectively. For the quarter ended December 31, 2024, we had approximately $205,000 in tax exempt income, compared to approximately $190,000 in tax exempt income for the quarter ended December 31, 2023. Our effective income tax rates were 29.5% for the quarter ended December 31, 2024 and 2023, respectively.

    Results of Operations for the Year Ended December 31, 2024 and 2023

    Net Interest Income

    Net interest income was $102.8 million for the year ended December 31, 2024 as compared to $97.2 million for the year ended December 31, 2023. The increase in net interest income of $5.6 million, or 5.8%, was primarily due to an increase in interest income that exceeded an increase in interest expense.

    The increase in interest income is attributable to increases in loans and interest-bearing deposits, partially offset by decreases in investment securities and FHLB stock. The increase in interest income is also attributable to the Federal Reserve’s interest rate increases during 2023 that continued until September 2024. However, the Federal Reserve’s decrease of interest rates starting in September 2024 impacted the yield on our interest earning assets.

    The increase in market interest rates in 2023 that continued until September 2024 also caused an increase in our interest expense. As a result, the increase in interest expense for the year ended December 31, 2024 was due to an increase in the cost of funds on our deposits and borrowed money. The increase in interest expense was also due to increases in the average balances on our certificates of deposits, our interest-bearing demand deposits, and our borrowed money, offset by a decrease in the average balance of our savings and club deposits.

    Total interest and dividend income increased $27.5 million, or 20.8%, to $160.0 million for the year ended December 31, 2024 from $132.5 million for the year ended December 31, 2023. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $312.3 million, or 20.6%, to $1.8 billion for the year ended December 31, 2024 from $1.5 billion for the year ended December 31, 2023 and an increase in the yield on interest earning assets by two basis points from 8.73% for the year ended December 31, 2023 to 8.75% for the year ended December 31, 2024.

    Interest expense increased $21.9 million, or 62.1%, to $57.2 million for the year ended December 31, 2024 from $35.3 million for the year ended December 31, 2023. The increase in interest expense was due to an increase in the cost of interest bearing liabilities by 77 basis points from 3.58% for the year ended December 31, 2023 to 4.35% for the year ended December 31, 2024, and an increase in average interest bearing liabilities of $328.9 million, or 33.3%, to $1.3 billion for the year ended December 31, 2024 from $986.3 million for the year ended December 31, 2023.

    Net interest margin decreased 79 basis points, or 12.3%, for the year ended December 31, 2024 to 5.62% compared to 6.41% for the year ended December 31, 2023.

    Credit Loss Expense

    The Company recorded a credit loss expense reduction totaling $260,000 for the year ended December 31, 2024 compared to a credit loss expense totaling $972,000 for the year ended December 31, 2023. The credit loss expense reduction of $260,000 for the year ended December 31, 2024 was comprised of a credit loss expense reduction for off-balance sheet commitments of $334,000 and a credit loss expense reduction for held-to-maturity investment securities of $10,000, offset by a credit loss expense for loans of $84,000.

    The credit loss expense reduction for off-balance sheet commitments of $334,000 for the year ended December 31, 2024 was primarily attributed to a reduction of $157.6 million in the level of off-balance sheet commitments. The credit loss expense reduction for held-to-maturity investment securities of $10,000 for the year ended December 31, 2024 was primarily attributed to a reduction of $708,000 in the level of applicable held-to-maturity investment securities.

    The credit loss expense for loans of $84,000 for the year ended December 31, 2024 was primarily attributed to charge-offs totaling $347,000, partially offset by favorable trends in the economy.  

    The credit loss expense of $972,000 for the year ended December 31, 2023 was comprised of credit loss expense for loans of $1.5 million and credit loss expense for held-to-maturity investment securities of $5,000, partially offset by a credit loss expense reduction for off-balance sheet commitments of $548,000.

    We charged-off $347,000 during the year ended December 31, 2024 as compared to charge-offs of $313,000 during the year ended December 31, 2023. The charge-offs of $347,000 during the year ended December 31, 2024 were against various unpaid overdrafts in our demand deposit accounts. The charge-offs of $312,000 during the year ended December 31, 2023 were comprised of a charge-off of $159,000 related to three performing construction loans on the same project whereby we sold the loans to a third-party at a loss of $159,000. The remaining charge-offs of $153,000 for the 2023 period were against various unpaid overdrafts in our demand deposit accounts.

    We recorded no recoveries from previously charged-off loans during the year ended December 31, 2024 and 2023.

    Non-Interest Income

    Non-interest income for the year ended December 31, 2024 was $2.8 million compared to non-interest income of $3.7 million for the year ended December 31, 2023. The decrease of $960,000, or 25.6%, in total non-interest income was primarily due to decreases of $458,000 in investment advisory fees, $403,000 in unrealized gains (losses) on equity securities, and $357,000 in BOLI income, partially offset by increases of $207,000 in other loan fees and service charges, $40,000 from sale/disposition of fixed assets, and $11,000 in miscellaneous other non-interest income.

    The decrease in investment advisory fees was due to the disposition in January 2024 of the Bank’s assets relating to the Harbor West Wealth Management Group. As a result of the transaction, the Bank no longer generates investment advisory fees. The decrease in unrealized gain (loss) on equity securities was due to an unrealized loss of $109,000 on equity securities during the year ended December 31, 2024 compared to an unrealized gain of $294,000 on equity securities during the year ended December 31, 2023. The unrealized loss of $109,000 on equity securities during the 2024 period was due to market interest rate volatility during the year ended December 31, 2024.

    The decrease in BOLI income was primarily due to two death claims totaling $1.8 million on BOLI policies that resulted in additional BOLI income of $404,000 in the year ended December 31, 2023.

    The increase of $207,000 in other loan fees and service charges was due to increases of $148,000 in other loan fees and loan servicing fees, $51,000 in ATM/debit card/ACH fees, and $7,000 in deposit account fees.

    Regarding the sale/disposition of fixed assets, we recorded gains of $22,000 during the year ended December 31, 2024 compared to losses of $18,000 during the year ended December 31, 2023.

    Non-Interest Expense

    Non-interest expense increased $3.8 million, or 10.9%, to $39.1 million for the year ended December 31, 2024 from $35.2 million for the year ended December 31, 2023. The increase resulted primarily from increases of $2.1 million in salaries and employee benefits, $879,000 in other operating expense, $638,000 in real estate owned expense, $394,000 in outside data processing expense, and $233,000 in occupancy expense, partially offset by decreases of $165,000 in equipment expense, $138,000 in loss on the disposition of the Bank’s assets relating to the Harbor West Wealth Management Group, and $103,000 in advertising expense.

    Income Taxes

    We recorded income tax expense of $19.0 million and $18.5 million for the year ended December 31, 2024 and 2023, respectively. For the year ended December 31, 2024, we had approximately $802,000 in tax exempt income, compared to approximately $1.1 million in tax exempt income for the year ended December 31, 2023. The decrease in tax exempt income was due to two death claims totaling $1.8 million on BOLI policies during the year ended December 31, 2023. Our effective income tax rates were 28.4% and 28.5% for the year ended December 31, 2024 and 2023, respectively.

    Asset Quality

    Non-performing assets were $5.1 million at December 31, 2024 compared to $5.8 million at December 31, 2023.   At December 31, 2023, we had two non-performing construction loans totaling $4.4 million secured by the same project located in the Bronx, New York. We successfully foreclosed on these two loans on October 21, 2024 and the balances were transferred to foreclosed real estate. As a result, at December 31, 2024, we had two non-performing assets consisting of two foreclosed properties, with one foreclosed property totaling $4.4 million located in the Bronx, New York and one foreclosed property totaling $767,000 located in Pittsburgh, Pennsylvania.

    Our ratio of non-performing assets to total assets remained low at 0.25% at December 31, 2024 as compared to 0.33% at December 31, 2023.

    The Company’s allowance for credit losses related to loans was $4.8 million, or 0.27% of total loans as of December 31, 2024, compared to $5.1 million, or 0.32% of total loans, as of December 31, 2023. Based on a review of the loans that were in the loan portfolio at December 31, 2024, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of inherent losses in the loan portfolio that were both probable and reasonably estimable.

    In addition, at December 31, 2024, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $704,000 and the allowance for credit losses related to held-to-maturity debt securities totaled $126,000.

    Capital

    The Company’s total stockholders’ equity to assets ratio was 15.87% as of December 31, 2024.   At December 31, 2024, the Company had the ability to borrow $834.7 million from the Federal Reserve Bank of New York, $18.2 million from the Federal Home Loan Bank of New York and $8.0 million from Atlantic Community Bankers Bank.

    The Bank’s capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of December 31, 2024, the Bank had a tier 1 leverage capital ratio of 14.76% and a total risk-based capital ratio of 14.04%.

    The Company completed its first stock repurchase program on April 14, 2023 whereby the Company repurchased 1,637,794 shares, or 10%, of the Company’s issued and outstanding common stock. The cost of the stock repurchase program totaled $23.0 million, including commission costs and Federal excise taxes.   Of the total shares repurchased under this program, 957,275 of such shares were repurchased during 2023 at a total cost of $13.7 million, including commission costs and Federal excise taxes.

    The Company commenced its second stock repurchase program on May 30, 2023 whereby the Company will repurchase 1,509,218, or 10%, of the Company’s issued and outstanding common stock. As of December 31, 2024, the Company had repurchased 1,091,174 shares of common stock under its second repurchase program, at a cost of $17.2 million, including commission costs and Federal excise taxes.

    About NorthEast Community Bancorp

    NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.

    Forward Looking Statement

    This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation and its impact on regional and national economic conditions), legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, the quality and composition of the loan or investment portfolios, demand for loan products, decreases in deposit levels necessitating increased borrowing to fund loans and securities, competition, demand for financial services in NorthEast Community Bank’s market area, changes in the real estate market values in NorthEast Community Bank’s market area, the impact of failures or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns, and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the “SEC”), which are available through the SEC’s website located at www.sec.gov. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

       
    CONTACT: Kenneth A. Martinek
      Chairman and Chief Executive Officer
       
    PHONE: (914) 684-2500
       
     
    NORTHEAST COMMUNITY BANCORP, INC.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (Unaudited)
           
        December 31,   December 31,
           2024       2023 
        (In thousands, except share
        and per share amounts)
    ASSETS            
    Cash and amounts due from depository institutions   $ 13,700     $ 13,394  
    Interest-bearing deposits     64,559       55,277  
    Total cash and cash equivalents     78,259       68,671  
    Certificates of deposit     100       100  
    Equity securities     21,994       18,102  
    Securities held-to-maturity ( net of allowance for credit losses of $126 and $136, respectively )     14,616       15,860  
    Loans receivable     1,813,647       1,586,721  
    Deferred loan (fees) costs, net     (49 )     176  
    Allowance for credit losses     (4,830 )     (5,093 )
    Net loans     1,808,768       1,581,804  
    Premises and equipment, net     24,805       25,452  
    Investments in restricted stock, at cost     397       929  
    Bank owned life insurance     25,738       25,082  
    Accrued interest receivable     13,481       12,311  
    Real estate owned     5,120       1,456  
    Property held for investment     1,370       1,407  
    Right of Use Assets – Operating     4,001       4,566  
    Right of Use Assets – Financing     347       351  
    Other assets     11,302       8,044  
    Total assets   $ 2,010,298     $ 1,764,135  
    LIABILITIES AND STOCKHOLDERS’ EQUITY              
    Liabilities:              
    Deposits:              
    Non-interest bearing   $ 287,135     $ 300,184  
    Interest bearing     1,383,240       1,099,852  
    Total deposits     1,670,375       1,400,036  
    Advance payments by borrowers for taxes and insurance     1,618       2,020  
    Borrowings     –       64,000  
    Lease Liability – Operating     4,108       4,625  
    Lease Liability – Financing     609       571  
    Accounts payable and accrued expenses     14,530       13,558  
    Total liabilities     1,691,240       1,484,810  
                   
    Stockholders’ equity:              
    Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding   $ —     $ —  
    Common stock, $0.01 par value; 75,000,000 shares authorized; 14,016,254 shares and 14,144,856 shares outstanding, respectively     140       142  
    Additional paid-in capital     110,091       109,924  
    Unearned Employee Stock Ownership Plan (“ESOP”) shares     (6,088 )     (6,563 )
    Retained earnings     214,691       175,505  
    Accumulated other comprehensive income     224       317  
    Total stockholders’ equity     319,058       279,325  
    Total liabilities and stockholders’ equity   $ 2,010,298     $ 1,764,135  
                 
    NORTHEAST COMMUNITY BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
     
                             
        Quarter Ended December 31,   Year Ended December 31,
         2024    2023   2024    2023
                    (In thousands, except per share amounts)
    INTEREST INCOME:                        
    Loans   $ 39,081     $ 35,660     $ 153,902     $ 127,486  
    Interest-earning deposits     1,144       1,257       5,202       4,143  
    Securities     247       209       909       859  
    Total Interest Income     40,472       37,126       160,013       132,488  
    INTEREST EXPENSE:                        
    Deposits     15,160       11,131       55,619       34,181  
    Borrowings     5       779       1,564       1,078  
    Financing lease     9       10       38       38  
    Total Interest Expense     15,174       11,920       57,221       35,297  
    Net Interest Income     25,298       25,206       102,792       97,191  
    Provision for (reversal of) credit loss     26       205       (260 )     972  
    Net Interest Income after Provision for (Reversal of) Credit Loss     25,272       25,001       103,052       96,219  
    NON-INTEREST INCOME:                        
    Other loan fees and service charges     485       474       2,098       1,891  
    Gain (loss) on disposition of equipment     22       (18 )     22       (18 )
    Earnings on bank owned life insurance     170       156       656       1,013  
    Investment advisory fees     –       115       –       458  
    Realized and unrealized (loss) gain on equity securities     (554 )     621       (109 )     294  
    Other     26       38       116       105  
    Total Non-Interest Income     149       1,386       2,783       3,743  
    NON-INTEREST EXPENSES:                        
    Salaries and employee benefits     5,204       4,760       20,942       18,839  
    Occupancy expense     712       705       2,828       2,595  
    Equipment     229       211       890       1,055  
    Outside data processing     680       572       2,604       2,210  
    Advertising     108       101       418       521  
    Loss on disposition of business     –       138       –       138  
    Real estate owned expense     204       41       731       93  
    Other     2,785       2,706       10,649       9,770  
    Total Non-Interest Expenses     9,922       9,234       39,062       35,221  
    INCOME BEFORE PROVISION FOR INCOME TAXES     15,499       17,153       66,773       64,741  
    PROVISION FOR INCOME TAXES     4,566       5,052       18,982       18,465  
    NET INCOME   $ 10,933     $ 12,101     $ 47,791     $ 46,276  
                             
    NORTHEAST COMMUNITY BANCORP, INC.
    SELECTED CONSOLIDATED FINANCIAL DATA
    (Unaudited)
                  
        Quarter Ended December 31,   Year Ended December 31,  
         2024     2023     2024    2023  
        (In thousands, except per share amounts)   (In thousands, except per share amounts)  
    Per share data:                              
    Earnings per share – basic   $ 0.83     $ 0.82     $ 3.64     $ 3.32    
    Earnings per share – diluted     0.80       0.82       3.58       3.32    
    Weighted average shares outstanding – basic     13,132       14,720       13,136       13,930    
    Weighted average shares outstanding – diluted     13,582       14,778       13,359       13,936    
    Performance ratios/data:                          
    Return on average total assets     2.19 %     2.77 %     2.50 %     2.90 %  
    Return on average shareholders’ equity     13.80 %     17.49 %     15.83 %     17.09 %  
    Net interest income   $ 25,298     $ 25,206     $ 102,792     $ 97,191    
    Net interest margin     5.29 %     6.06 %     5.62 %     6.41 %  
    Efficiency ratio     38.99 %     34.72 %     37.00 %     34.90 %  
    Net charge-off ratio     0.05 %     0.01 %     0.02 %     0.02 %  
                               
    Loan portfolio composition:                December 31, 2024
    		    December 31, 2023
    		  
    One-to-four family               $ 3,472     $ 5,252    
    Multi-family                 206,606       198,927    
    Mixed-use                 26,571       29,643    
    Total residential real estate                 236,649       233,822    
    Non-residential real estate                 29,446       21,130    
    Construction                 1,426,167       1,219,413    
    Commercial and industrial                 119,736       111,116    
    Consumer                 1,649       1,240    
    Gross loans                 1,813,647       1,586,721    
    Deferred loan (fees) costs, net                 (49 )     176    
    Total loans               $ 1,813,598     $ 1,586,897    
    Asset quality data:                          
    Loans past due over 90 days and still accruing               $ –     $ –    
    Non-accrual loans                 –       4,385    
    OREO property                 5,120       1,456    
    Total non-performing assets               $ 5,120     $ 5,841    
                               
    Allowance for credit losses to total loans                 0.27 %     0.32 %  
    Allowance for credit losses to non-performing loans                 0.00 %     116.15 %  
    Non-performing loans to total loans                 0.00 %     0.28 %  
    Non-performing assets to total assets                 0.25 %     0.33 %  
                               
    Bank’s Regulatory Capital ratios:                          
    Total capital to risk-weighted assets                 13.92 %     13.43 %  
    Common equity tier 1 capital to risk-weighted assets                 13.65 %     13.10 %  
    Tier 1 capital to risk-weighted assets                 13.65 %     13.10 %  
    Tier 1 leverage ratio                 14.44 %     14.43 %  
                                   
    NORTHEAST COMMUNITY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (Unaudited)
                       
        Quarter Ended December 31, 2024   Quarter Ended December 31, 2023
        Average   Interest   Average   Average   Interest   Average
         Balance    and dividend    Yield    Balance    and dividend    Yield
        (In thousands, except yield/cost information)   (In thousands, except yield/cost information)
    Loan receivable gross   $ 1,784,920     $ 39,081     8.76 %   $ 1,545,446     $ 35,660     9.23 %
    Securities     36,817       232     2.52 %     33,124       188     2.27 %
    Federal Home Loan Bank stock     455       15     13.19 %     929       21     9.04 %
    Other interest-earning assets     90,279       1,144     5.07 %     83,436       1,257     6.03 %
    Total interest-earning assets     1,912,471       40,472     8.46 %     1,662,935       37,126     8.93 %
    Allowance for credit losses     (4,833 )                 (4,771 )            
    Non-interest-earning assets     92,422                   87,557              
    Total assets   $ 2,000,060                 $ 1,745,721              
                                         
    Interest-bearing demand deposit   $ 233,112     $ 2,198     3.77 %   $ 118,691     $ 1,026     3.46 %
    Savings and club accounts     137,295       767     2.23 %     206,120       1,404     2.72 %
    Certificates of deposit     1,026,433       12,195     4.75 %     758,928       8,701     4.59 %
    Total interest-bearing deposits     1,396,840       15,160     4.34 %     1,083,739       11,131     4.11 %
    Borrowed money     1,293       14     4.33 %     67,049       789     4.71 %
    Total interest-bearing liabilities     1,398,133       15,174     4.34 %     1,150,788       11,920     4.14 %
    Non-interest-bearing demand deposit     263,711                   298,739              
    Other non-interest-bearing liabilities     21,428                   19,449              
    Total liabilities     1,683,272                   1,468,976              
    Equity     316,788                   276,745              
    Total liabilities and equity   $ 2,000,060                 $ 1,745,721              
                                         
    Net interest income / interest spread         $ 25,298     4.12 %         $ 25,206     4.79 %
    Net interest rate margin                 5.29 %                 6.06 %
    Net interest earning assets   $ 514,338                 $ 512,147              
    Average interest-earning assets to interest-bearing liabilities     136.79 %                 144.50 %            
     
    NORTHEAST COMMUNITY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (Unaudited)
                       
        Year Ended December 31, 2024   Year Ended December 31, 2023
        Average   Interest   Average   Average   Interest   Average
           Balance      and dividend      Yield   Balance      and dividend      Yield
        (In thousands, except yield/cost information)   (In thousands, except yield/cost information)
    Loan receivable gross   $ 1,701,079     $ 153,902     9.05 %   $ 1,401,492     $ 127,486     9.10 %
    Securities     34,765       839     2.41 %     37,819       777     2.05 %
    Federal Home Loan Bank stock     677       70     10.34 %     984       82     8.33 %
    Other interest-earning assets     92,610       5,202     5.62 %     76,542       4,143     5.41 %
    Total interest-earning assets     1,829,131       160,013     8.75 %     1,516,837       132,488     8.73 %
    Allowance for credit losses     (4,940 )                 (4,676 )            
    Non-interest-earning assets     90,675                   84,287              
    Total assets   $ 1,914,866                 $ 1,596,448              
                                         
    Interest-bearing demand deposit   $ 209,993     $ 8,498     4.05 %   $ 93,426     $ 2,459     2.63 %
    Savings and club accounts     154,430       3,799     2.46 %     248,755       6,777     2.72 %
    Certificates of deposit     917,665       43,322     4.72 %     615,124       24,945     4.06 %
    Total interest-bearing deposits     1,282,088       55,619     4.34 %     957,305       34,181     3.57 %
    Borrowed money     33,117       1,602     4.84 %     29,007       1,116     3.85 %
    Total interest-bearing liabilities     1,315,205       57,221     4.35 %     986,312       35,297     3.58 %
    Non-interest-bearing demand deposit     277,957                   322,185              
    Other non-interest-bearing liabilities     19,739                   17,139              
    Total liabilities     1,612,901                   1,325,636              
    Equity     301,965                   270,812              
    Total liabilities and equity   $ 1,914,866                 $ 1,596,448              
                                         
    Net interest income / interest spread         $ 102,792     4.40 %         $ 97,191     5.15 %
    Net interest rate margin                 5.62 %                 6.41 %
    Net interest earning assets   $ 513,926                 $ 530,525              
    Average interest-earning assets to interest-bearing liabilities     139.08 %                 153.79 %            

    The MIL Network –

    January 30, 2025

  • MIL-OSI USA: Cassidy Questions HHS Secretary Nominee During Finance Committee Hearing

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy

    WASHINGTON – Today, U.S. Senator Bill Cassidy, M.D. (R-LA) questioned Robert F. Kennedy Jr., nominee for Secretary of the U.S. Department of Health and Human Services (HHS), at his confirmation hearing before the Senate Finance Committee. 
    Senator Cassidy: Mr. Kennedy, President Trump has sworn to protect Medicare. Republicans are exploring reforms to Medicaid that could help pay for Trump administration priorities. With this context, what will you do about dual eligibles?
    Mr. Kennedy: About—
    Senator Cassidy: Dual-eligibles.
    Mr. Kennedy: Well, dual-eligibles are not right now served very well under the system. Those are people who are eligible for both Medicaid and Medicare. And I, you know, I suppose my answer to that is to make sure that the programs are consolidated, that they are integrated, and that care is integrated. I look forward to working with you, Dr. Cassidy, on making sure that we take good care of people who are dual-eligible.
    Senator Cassidy: How would we—how do you propose that we integrate those programs? Does Medicare pay more, Medicare pay less, Medicaid pay more, Medicaid pay less? How do we do that?
    Mr. Kennedy: I’m not exactly sure because I’m not in there. I mean, it is difficult to integrate them because Medicaid—Medicare is under fee for service, paid for by employer taxes. Medicaid is fully paid for federal government and it’s not fee for service. So, it’s—I do not know the answer to that. I look forward to exploring options with you.
    Senator Cassidy: Republicans again are looking at ways to potentially reform Medicaid to help, you know, pay for President Trump’s priorities, but to improve outcomes. What thoughts do you have regarding Medicaid reform?
    Mr. Kennedy: Well, Medicaid is not working for Americans, and it’s specifically not working for the target population. Most Americans like myself, I’m on Medicare Advantage, and I’m very happy with it. Most people who are on Medicaid are not happy. The premiums are too high, the deductibles are too high. The networks are narrow. The best doctors will not accept it at the best hospitals. And particularly, Medicaid was originally designed for a target population, the poorest Americans. It’s now been dramatically expanded. And the irony of the expansion is that the poorest Americans are now being robbed. Their services have dramatically decreased even though we’ve increased the price of Medicare by 60 percent over the last 4 years. The target population is being robbed. We need to figure out other options.
    Senator Cassidy: With that said, obviously you’ve thought about that and I appreciate that. What reforms do you recommend, again, that would improve services I suppose, but also make it more cost efficient?
    Mr. Kennedy: Well, President Trump has given me the charge of improving quality of care and lowering the price of care for all Americans. There are many things that we can do, I mean, what we want to, the ultimate outcome, I think, is to increase transparency, increase accountability, and to transition to a value-based system rather than a fee-based system—service-based system. 
    Senator Cassidy. On Medicaid in particular, can you just kind of take those kind of general principles and apply it to the Medicaid program?
    Mr. Kennedy: You know I, listen, I think that there are many, many options with telemedicine, with AI right now. And, you know there’s a—including direct primary care systems, we are seeing that movement grow across the country. There’s a—one of the largest providers—
    Senator Cassidy: So, so knowing, going back to Medicaid, though. And speaking of these specific advances, how would you, what reforms are you proposing, with these ideas vis a vis Medicaid?
    Mr. Kennedy: Well, I don’t have a broad proposal for dismantling the program—
    Senator Cassidy: I’m not saying—of course not saying that.
    Mr. Kennedy: I think what we need to do is we need to experiment with pilot programs in each state. We need to keep our eye on the ultimate goal, which is value-based care, which is transparency, accountability, access.
    Senator Cassidy: And one more thing, going back to Medicare, you mentioned you’re an MA. You mentioned earlier the Medicare fee for service. Do you have any kind of thoughts as to, whether or not patients on fee for service should move into MA or how should we handle that?
    Mr. Kennedy: Whether patients—
    Senator Cassidy: Who are on Medicare fee for service.
    Mr. Kennedy: For traditional Medicare?
    Senator Cassidy: Yes.
    Mr. Kennedy: That’s their choice right now. I mean, we have I think 32 million Americans, or 30 million Americans on Medicare—on traditional Medicare, and then another 34, or thirty—34 on Medicare Advantage, roughly half and half. And I think more people would rather be on Medicare Advantage because it offers very good services, but people can’t afford it. It’s much more expensive. Oh, and answer to your first question, there, you know, are all kinds of exciting things that we can be doing, including cooperatives, which President Trump has supported, including health savings accounts, which President Trump has supported. All of these things to make people more accountable for their own health.
    Senator Cassidy: And so we bring the cooperatives and the health savings accounts into Medicare and Medicaid? 
    Mr. Kennedy: Exactly. We try to—try to increase those, the use of those and to direct primary care to continue to transition into  a value-based program that is private. Americans don’t, by and large, do not like the Affordable Care Act. People are on it. They don’t like Medicaid. They like Medicare. And they like private insurance. We need to listen to what people, they would prefer to be on private insurance. Most Americans, if they can afford to be, will be on private insurance. We need to figure out ways to improve care, particularly for elderly, for veterans, for the poor in this country, and Medicaid, the current model is not doing that. I would ask, you know, any of the Democrats who are chuckling just now. Do you think all that money, the $900 billion that we’re sending to Medicaid every year has made Americans healthy? Do we think it’s working for anybody? Are the premiums low enough?

    MIL OSI USA News –

    January 30, 2025

  • MIL-OSI Economics: Eyedea’s AI-powered visual recognition software protected and monetized by Thales Sentinel Platform

    Source: Thales Group

    Headline: Eyedea’s AI-powered visual recognition software protected and monetized by Thales Sentinel Platform

    29 Jan 2025

    Share this article

    • Thales Sentinel protects Eyedea technologies based on artificial intelligence and machine learning, assuring customers that software is secure, trusted and validated
    • Enables Eyedea to scale revenue streams and focus on technology innovation

    Thales today announced a collaboration with the visual recognition technology company Eyedea, enabling the company to deploy and protect its AI-powered and machine learning visual recognition software for customers around the world using Thales Sentinel, the world’s leading software monetization and protection platform.

    With high-profile, security-conscious customers including international and national police organisations such as Interpol, Europol and the Czech Police, Eyedea was originally established in 2006 by a research group from the Czech Technical University in Prague’s Centre for Machine Perception.

    The company offers AI visual recognition software that can classify things such as vehicle make and models, number plates, train carriage numbers and more, from CCTV footage. ​ From standard traffic cameras, their technology recognises activities such as distracted drivers, unfastened or fastened seatbelts, and counts passengers for use in environments like carpool lanes. In addition, Eyedea’s technology can make human factors and vehicle license plates unidentifiable in image data, ensuring compliance with GDPR and other local data protection laws.

    “We’re very proud of the long-standing relationship we’ve built with Eyedea. Thales Sentinel has been able to offer IP protection and flexible packaging as their AI-based software has grown to support hundreds of public and private customers worldwide. We look forward to continuing to work together as Eyedea further innovates and evolves its AI technology,” commented Damien Bullot, Vice President Software Monetization at Thales.

    “Thales Sentinel is essential for us to go-to-market in a secure and assured way. Our customers need to be able to trust that access to our software is safeguarded, while we need to protect our IP and manage the active deployments we have. Thales Sentinel does a fantastic job of handling both, and our long-standing partnership with them allows us to scale our revenue streams, and focus more of our time on technology innovation, as time goes on,” said Martin Urban, CEO at Eyedea.

    Eyedea’s customers use its AI recognition software by embedding it into existing hardware and software they’re using. This is delivered via software development kits (SDKs) supplied by Eyedea, alongside a Thales Sentinel license on a hardware key. The combination of the hardware key along with the SDK not only provides assurance to customers that their access to the software is safeguarded, but also that the team at Eyedea can be sure there’s no unauthorised use or tampering of their software.

    The Sentinel Envelope secures the software from breaches, and the Sentinel Licensing further enables Eyedea to offer varying packaging tiers based on customer requirements. This includes the flexibility to offer customers a free three-month trial which expires based on time or volume of usage, which customers can then opt to purchase as a one-year license.

    About Thales

    Thales (Euronext Paris: HO) is a global leader in advanced technologies specialized in three business domains: Defence & Security, Aeronautics & Space, and Cyber & Digital.

    It develops products and solutions that help make the world safer, greener and more inclusive.

    The Group invests close to €4 billion a year in Research & Development, particularly in key innovation areas such as AI, cybersecurity, quantum technologies, cloud technologies and 6G.

    Thales has close to 81,000 employees in 68 countries. In 2023, the Group generated sales of €18.4 billion.

    MIL OSI Economics –

    January 30, 2025
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