Banking – Page 350 – NewzIntel.com

MIL-Evening Report: NZ Palestinian network advocate Janfrie Wakim praises ‘heroic Gaza’, calls for more action

Asia Pacific Report

One of the key early leaders of a national Palestinian solidarity network in Aotearoa New Zealand today praised the “heroic” resilience and sacrifice of the people of Gaza in the face of Israel’s ruthless attempt to destroy the besieged enclave of more than 2 million people.

Speaking at the first solidarity rally in Auckland Tāmaki Makaurau since the fragile ceasefire came into force last Sunday, Janfrie Wakim of the Palestine Solidarity Network Aotearoa (PSNA) also paid tribute to New Zealand protesters who have supported the Palestine cause for the 68th week.

“Thank you all for coming to this rally — the first since 7 October 2023 when no bombs are dropping on Gaza,” she declared.

“The ceasefire in Gaza is fragile but let’s celebrate the success of the resistance, the resilience, and the fortitude — the sumud [steadfastness] — of the heroic Palestinian people.”

Wakim was formerly a member of Palestine Human Rights Campaign (PHRC) in Auckland which began in the 1970s. This was later absorbed into the nationwide movement PSNA at a conference in 2013.

“Israel has failed,” she continued. “It has not achieved its aims — in the longest war [15 weeks] in its history — even with $40 billion in aid from the United States.

“It has failed to depopulate the north of Gaza, it has a crumbling economy, and 1 million Israelis [out if 9 million] have left already.”

Wakim said that the resistance and success in defeating Israel’s “deadly objectives” had come at a “terrible cost”.

“We mourn those with families here and in Gaza and now in the West Bank who made the ultimate sacrifice with their lives — 47,000 people killed, 18,000 of them children, thousands unaccounted for in the rubble and over 100,000 injured.

Grieving for journalists, humanitarian workers
“We grieve for but salute the journalists and the humanitarian workers who have been murdered serving humanity.”

[embedded content]
Janfrie Wakim speaking at today’s Palestine rally in Tamaki Makaurau. Video: APR

She said the genocide had been enabled by the wealthiest countries in the world and the Western media — “including our own with few exceptions”.

“Without its lies, its deflections, its failure to report the agonising reality of Palestinians suffering, Israel would not have been able to commit its atrocities,” Wakim said.

“And now while we celebrate the ceasefire there’s been an escalation on the West Bank — air strikes, drones, snipers, ethnic cleansing in Jenin with homes and infrastructure being demolished.

“Checkpoints have doubled to over 900 — sealing off communities. And still the Palestinians resist.

“And we must too. Solidarity. Unity of purpose is all important. Bury egos. Let humanity triumph.”

Palestinian liberation advocate Janfrie Wakim . . . “Without its lies, its deflections, its failure to report the agonising reality of Palestinians suffering, Israel could not have been able to commit its atrocities.” Image: David Robie/APR

90-year-old supporter
During her short speech, Wakim introduced to the crowd the first Palestinian she had met in New Zealand, Ghazi Dassouki, who is now aged 90.

She met him at a Continuing Education seminar at the University of Auckland in 1986 that addressed the topic of “The Palestine Question”. It shocked the establishment of the time with Zionist complaints and intimidation of staff which prevented any similar academic event until 2006.

Wakim called for justice for the Palestinians.

“Freedom from occupation. Liberation from apartheid. And peace at last after 76 years of subjugation and oppression by Israel and its allies,” she said

She called on supporters to listen to what was being suggested for local action — “do what suits your situation and energy. Our task is to persist, as Howard Zinn put it”.

“When we organise with one another, when we get involved, when we stand up and speak out together, we can create a power no government can suppress,” she said.

“We don’t have to engage in grand, heroic actions to participate in the process of change. Small acts, when multiplied by millions of people, can transform the world.”

Introduced to the Auckland protest crowd today . . . Ghazi Dassouki, who is now aged 90.

As a symbol for peace and justice in Palestine, slices of water melon and dates were handed out to the crowd.

Calls to block NZ visits by IDF soldiers
Among many nationwide rallies across Aotearoa New Zealand this weekend, were many calls for the government to suspend entry to the country from soldiers in the Israeli Defence Forces (IDF).

“New Zealand should not be providing rest and recreation for Israeli soldiers fresh from the genocide in Gaza,” said PSNA national chair John Minto.

“We wouldn’t allow Russian soldiers to come here for rest and recreation from the invasion of Ukraine so why would we accept soldiers from the genocidal, apartheid state of Israel?”

As well as the working holiday visa, since 2019 Israelis have been able to enter New Zealand for three months without needing a visa at all.

This visa-waiver is used by Israeli soldiers for “rest and recreation” from the genocide in Gaza.

Minto stressed that IDF soldiers had killed at least 47,000 Palestinians — 70 percent of them women and children.

The International Court of Justice (ICJ) has declared Israeli actions a “plausible genocide”; Amnesty International, and Human Rights Watch have branded the continuous massacres as genocide and extermination; and the latest report from UN Special Rapporteur on Human Rights in the Occupied Palestine Territories Francesca Albanese has called it “genocide as colonial erasure”.

Watermelon slices for all . . . a symbol of peace, the seed for justice. Image: David Robie/APR

War crimes red flags
Also, the International Criminal Court (ICC) has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Israeli Defence Minister Yoav Gallant for war crimes and crimes against humanity.

“All these red flags for genocide have been visible for months but the government is still giving the green light to those involved in war crimes to enter New Zealand,” Minto said.

Last month, PSNA again wrote to the government asking for the suspension of travel to New Zealand for all Israeli soldiers and reservists.

Meanwhile, 200 Palestinian prisoners held in Israeli jails have been set free under the terms of the Gaza ceasefire deal between Israel and Hamas. Seventy of them will be deported to countries in the region, reports Al Jazeera.

Masses of people have congregated in Ramallah, celebrating the return of the released Palestinian prisoners.

A huge crowd waved Palestinian flags, shouted slogans and captured the joyful scene with their phones and live footage shows.

The release came after Palestinian fighters earlier handed over four female Israeli soldiers who had been held in Gaza to the International Red Cross in Palestine Square.

The smiling and waving soldiers appeared to be in good health and were in high spirits.

MIL OSI Analysis – EveningReport.nz –

February 1, 2025

MIL-OSI USA: Cantwell: Trump’s New Tariffs Will Drive Up Grocery & Gas Prices, Costs for American Manufacturers

US Senate News:

Source: United States Senator for Washington Maria Cantwell

01.31.25

Cantwell: Trump’s New Tariffs Will Drive Up Grocery & Gas Prices, Costs for American Manufacturers

WA consumers will pay the price as Trump chooses to tax goods from Canada and Mexico up to 25%, plus a 10% tax on goods from China

WASHINGTON, D.C. – Today, the Trump administration announced plans to impose a 25% tax on many goods imported into the U.S. from Canada and Mexico, and a 10% tax on goods imported from China, a move that will likely increase prices for consumers across the country, particularly in Washington state.

U.S. Senator Maria Cantwell (D-WA) – who serves as ranking member of the Senate Committee on Commerce, Science, and Transportation, as well as senior member of the Finance and Energy and Natural Resources Committees– issued the following statement:

“President Trump should not start trade wars that hurt American manufacturers, consumers, and farmers, especially when food prices and interest rates are so high. After two weeks in office and lots of executive orders, where are the administration’s ideas to lower costs for American families? Let’s not put 25% tariffs that will increase consumer costs,” Sen. Cantwell said. “Canada and Mexico are already willing to partner with us to fight fentanyl and strengthen border security. I hope the President will work with Congress on opening new markets, growing U.S. exports, and using the EXIM Bank to compete with China, instead of driving up prices at the grocery store and gas pump. I want an export strategy — one that maximizes opportunities to sell American products overseas.“

Two out of every five jobs in the State of Washington are tied to trade and related industries. In 2023, Washington state imported $19.9 billion of goods from Canada – primarily oil, gas, lumber, and electrical power — making our northern neighbors Washington state’s largest trade partner.

Also in 2023, Washington state imported $1.7 billion in goods from Mexico, including motor vehicles, vehicle parts, and household appliances. All of these raw materials and goods will now be subject to a 25% tariff.

A 25% tariff on Canada and Mexico would add an estimated $144 billion a year to the cost of manufacturing in the United States.

Sen. Cantwell has been a champion for Washington state growers and exports. Agriculture and food manufacturing generate more than $21 billion per year and employ more than 171,000 people in the State of Washington. Small and family farms are key contributors, making up 89% and 94%, respectively, of Washington’s farms.

Sen. Cantwell was the leading voice in negotiations to end India’s 20% retaliatory tariff on American apples, which devastated Washington state’s apple exports. In September 2023, India ended its retaliatory tariffs on apples and pulse crops following several years of Sen. Cantwell’s advocacy.

In May 2023, Sen. Cantwell sent a letter urging the Biden Administration to help U.S. potato growers finally get approval to sell fresh potatoes in Japan. In June 2023, Sen. Cantwell hosted U.S. Sen. Debbie Stabenow (D-MI), then-chair of the Committee on Agriculture, Nutrition, and Forestry, in Washington state for a forum with 30 local agricultural leaders in Wenatchee to discuss the Farm Bill.

In 2022, Sen. Cantwell spearheaded passage of the Ocean Shipping Reform Act, a law to crack down on skyrocketing international ocean shipping costs and ease supply chain backlogs that raise prices for consumers and make it harder for U.S. farmers and exporters to get their goods to the global market.

In August 2020, during the height of the COVID-19 pandemic, Sen. Cantwell sent a letter to then-Secretary of Agriculture Sonny Perdue requesting aid funds be distributed to wheat growers. In December 2018, Sen. Cantwell celebrated the passage of the Farm Bill, which included $500 million of assistance for farmers, including those who grow wheat.

In 2019, Sen. Cantwell helped secure a provision in the $16 billion USDA relief package, ensuring sweet cherry growers could access emergency funding to offset the impacts of tariffs and other market disruptions.

MIL OSI USA News –

February 1, 2025

MIL-OSI USA: Baldwin Introduces Bipartisan Legislation to Protect AM Radio for Wisconsin Farmers, Families

US Senate News:

Source: United States Senator for Wisconsin Tammy Baldwin
WISCONSIN – U.S. Senator Tammy Baldwin (D-WI) and a bipartisan group of colleagues introduced the AM Radio for Every Vehicle Act. The legislation would require automakers to keep AM radio accessible in all of their new passenger vehicles, including electric vehicles at no additional charge. The legislation comes as many major automakers are removing AM radio from their new vehicles.
“Wisconsin families across the state, especially those in our rural and farming communities, depend on AM radio to receive critical emergency alerts and high-quality local news,” said Senator Baldwin. “I am proud to work with my Democratic and Republican colleagues to stand up for the Americans who want and rely on AM radio to do their jobs, stay safe, and keep in touch with their local communities.”
If enacted, the bill would require the Department of Transportation (DOT) to issue a rule requiring new vehicles to maintain access to broadcast AM radio at no additional cost to the consumer and provide small vehicle manufacturers at least four years after the date DOT issues the rule to comply. The AM Radio for Every Vehicle Act also requires automakers to inform consumers, during the period before the rule takes effect, that the vehicles do not maintain access to broadcast AM radio.
This legislation is led by Senators Kevin Cramer (R-ND), Ted Cruz (R-TX), and Ed Markey (D-MA) and co-sponsored by John Barrasso (R-WY), Marsha Blackburn (R-TN), Richard Blumenthal (D-CT), Katie Britt (R-AL), Ted Budd (R-NC), Maria Cantwell (D-WA), Shelley Moore Capito (R-WV), Tom Cotton (R-AR), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Chuck Grassley (R-IA), Josh Hawley (R-MO), Maggie Hassan (D-NH), Mazie Hirono (D-HI), Jim Justice (R-WV), Angus King (I-ME), Amy Klobuchar (D-MN), James Lankford (R-OK), Ben Ray Luján (D-NM), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Jeff Merkley (D-OR), Jerry Moran (R-KS), Chris Murphy (D-CT), Jack Reed (D-RI), Pete Ricketts (R-NE), Bernie Sanders (I-VT), Rick Scott (R-FL), Jeanne Shaheen (D-NH), Tim Sheehy (R-MT), Tina Smith (D-MN), Dan Sullivan (R-AK), Ron Wyden (D-OR), Todd Young (R-IN), John Barrasso (R-WY), Jim Banks (R-IN), and John Hoeven (R-ND).

MIL OSI USA News –

February 1, 2025

MIL-OSI USA: Former Senior Adviser for the Federal Reserve Indicted on Charges of Economic Espionage

Source: US State of North Dakota

John Harold Rogers, 63, of Vienna, Virginia, a former Senior Adviser for the Federal Reserve Board of Governors (FRB), was arrested today on charges that he conspired to steal Federal Reserve trade secrets for the benefit of the People’s Republic of China (PRC).

In furtherance of the conspiracy, allegedly made false statements to the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG), and those false statements had a material impact on its investigation.

“As alleged, the defendant violated the trust placed in him by the Federal Reserve Bank by putting U.S. trade secrets in the hands of his PRC co-conspirators, knowing full well that such information would benefit the PRC Government and PRC instrumentalities,” said Devin DeBacker, head of the Justice Department’s National Security Division. “The Justice Department will continue to use all the tools at its disposal to disrupt economic espionage and protect our national security.”

“President Trump tasks us with protecting our fellow Americans from all enemies, foreign and domestic. As alleged in the indictment, this defendant leveraged his position within the Federal Reserve to pass sensitive financial information to the Chinese government, a designated adversary,” said U.S. Attorney Edward R. Martin Jr. for the District of Columbia. “Let this indictment serve as a warning to all who seek to betray or exploit the United States: law enforcement will find you and hold you accountable.”

“As alleged in the indictment, Rogers betrayed his country while employed at the Federal Reserve by providing restricted U.S. financial and economic information to Chinese government intelligence officers,” said Assistant Director Kevin Vorndran of the FBI Counterintelligence Division. “This information could allow adversaries to illegally gain a strategic economic advantage at the expense of the U.S. This indictment sends a clear message that the FBI and our partners will hold accountable those who threaten our national security.”

“The Chinese Communist Party has expanded its economic espionage campaign to target U.S. government financial policies and trade secrets in an effort to undermine the United States and become the sole superpower,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Today’s indictment represents the FBI’s unwavering commitment to protect U.S. national security interests and U.S. jobs and bring to justice those who are willing to betray their country for personal gain.”

“This indictment sends a clear message that those who deliberately misuse sensitive Federal Reserve information for their own personal gain and lie about it to investigators will be held accountable for their actions,” said Special Agent in Charge John T. Perez of the FRB-OIG, Headquarters Operations.

According to the indictment, Rogers, a U.S. citizen with a Ph.D. in economics, worked as a Senior Adviser in FRB’s Division of International Finance of the FRB from 2010 until 2021, where he was entrusted with confidential FRB information. The confidential information that Rogers allegedly shared with his Chinese co-conspirators, who worked for the intelligence and security apparatus of China and who posed as graduate students at a PRC university, is economically valuable when secret.

China holds a large amount of U.S. foreign debt (approximately $816 billion as of October 2024). The data Rogers shared with his co-conspirators could allow China to manipulate the U.S. market, in a manner similar to insider trading. Gaining advance knowledge of U.S. economic policy, including advance knowledge of changes to the federal funds rate, could provide China with an advantage when selling or buying U.S. bonds or securities.

The indictment alleges that, from at least 2018, Rogers allegedly exploited his employment with the FRB by soliciting trade-secret information regarding proprietary economic data sets, deliberations about tariffs targeting China, briefing books for designated governors, and sensitive information about Federal Open Market Committee (FOMC) deliberations and forthcoming announcements. He passed that information electronically to his personal email account, in violation of FRB policy, or printed it prior to traveling to China, in preparation for meetings with his co-conspirators.

Under the guise of teaching “classes,” Rogers met with his co-conspirators in hotel rooms in China where he conveyed sensitive, trade-secret information that belonged to the FRB and the FOMC. In 2023, Rogers was paid approximately $450,000 as a part-time professor at a Chinese university.

On Feb. 4, 2020, in response to questioning by the FRB-OIG, Rogers lied about his accessing and passage of sensitive information and his associations with his co-conspirators.

Rogers is charged with conspiracy to commit economic espionage and with making false statements.

The FBI Washington Field Office and FRB-OIG are investigating the case.

Assistant U.S. Attorney Kimberly Paschall for the District of Columbia and Trial Attorneys Nicholas Hunter and Steve Marzen of the National Security Division’s Counterintelligence and Export Section are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL OSI USA News –

February 1, 2025

MIL-OSI: Pathfinder Bancorp, Inc. Announces Financial Results for Fourth Quarter and Full Year 2024

Source: GlobeNewswire (MIL-OSI)

Fourth quarter results include EPS of $0.69, deposit growth, commercial loan growth, a gain on the sale of its insurance agency, and strong contributions from new and established
Pathfinder Bank teams across Central New York

OSWEGO, N.Y., Jan. 31, 2025 (GLOBE NEWSWIRE) — Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the fourth quarter and year ended December 31, 2024.

The holding company for Pathfinder Bank (“the Bank”) earned net income attributable to common shareholders of $4.3 million or $0.69 per share in the fourth quarter of 2024, including a benefit of approximately $1.4 million from a gain on the previously announced sale of its insurance agency, net of taxes and transaction-related expenses.

The Company reported a net loss of $4.6 million or $0.75 per share in the third quarter of 2024, reflecting $9.0 million in provision expense that primarily resulted from a comprehensive loan portfolio review the Bank elected to undertake as part of its ongoing commitment to continuously improve its credit risk management approach, and net income of $2.5 million or $0.41 per share in the fourth quarter of 2023. For the full year, the Company earned net income of $3.8 million or $0.60 per share in 2024 and $9.3 million or $1.51 per share in 2023.

Fourth Quarter and Full Year 2024 Highlights and Key Developments

Provision expense was $988,000 in the fourth quarter of 2024, compared to $9.0 million in the linked quarter and $265,000 in the fourth quarter of 2023, while the allowance for credit losses (“ACL) increased to 1.88% of loans from 1.87% on September 30, 2024 and 1.78% on December 31, 2023.
Net interest income was $10.8 million, compared to the $11.7 million in the linked quarter that benefited from a $887,000 catch-up interest payment, and $9.2 million in the fourth quarter of 2023. Full-year net interest income was $41.4 million in 2024 and $38.9 million in 2023.
Net interest margin (“NIM”) was 3.15% in the fourth quarter of 2024, compared to the 3.34% in the third quarter that benefited by 25 basis points from the catch-up interest payment, and 2.74% in the year-ago period.
Non-interest income was $4.9 million, including a gross, pre-tax gain of $3.2 million on the October 2024 sale of the Company’s insurance agency, compared to $1.7 million in the linked quarter and $1.3 million in the year-ago period. Full-year non-interest income was $9.6 million in 2024 and $5.2 million in 2023.
Non-interest expense was $8.5 million with $155,000 in October 2024 insurance agency transaction-related costs, $10.3 million in the linked quarter with $1.6 million in July 2024 branch acquisition-related costs, and $7.0 million in the year-ago period. Full-year non-interest expense was $34.4 million in 2024 and $29.4 million in 2023.
Pre-tax, pre-provision (“PTPP”) net income grew to $3.8 million, compared to $3.4 million in the linked and year-ago periods. PTPP net income, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses. Full-year PTPP net income was $13.5 million in 2024 and $14.7 million in 2023.
Total deposits were $1.20 billion at period end, growing by $8.1 million or 2.7% annualized from September 30, 2024 and $84.3 million or 7.5% from December 31, 2023. The Bank’s loan-to-deposit ratio was 76.3% on December 31, 2024.
Total loans were $919.0 million at period end, compared to $921.7 million on September 30, 2024 and $897.2 million on December 31, 2023. Commercial loans were $539.7 million at period end, $534.5 million on September 30, 2024 and $524.2 million on December 31, 2023.

“Pathfinder’s core net interest income growth and net interest margin expansion were key contributors to fourth quarter earnings, and are a product of disciplined asset and liability pricing, the Bank’s valuable core deposit franchise, and our relationship-based commercial and retail lending in Central New York,” said President and Chief Executive Officer James A. Dowd. “In addition, we continue to invest in talent to serve middle market businesses throughout the Syracuse area, building on our foundation in this community. The East Syracuse branch acquired last summer, and our operations throughout the area, made important contributions to Pathfinder’s performance in the fourth quarter, and we look forward to further enhancing the breadth and depth of our commercial and other customer relationships in this important growth market.”

Dowd added, “We also intend to maintain a sharp focus on managing operating expenses, along with our ongoing efforts to continuously enhance the Company’s proactive credit risk management approach. While there may be short-term variability in measures of operating efficiency and asset quality, our leadership team is fully committed to taking the steps necessary to make sustainable improvements over the long term and continue building franchise value for the benefit of our shareholders.”

Net Interest Income and Net Interest Margin
Fourth quarter 2024 net interest income was $10.8 million, a decrease of 7.8% from the third quarter of 2024, or a decrease of 0.2% when excluding an $887,000 third quarter catch-up interest payment associated with purchased loan pool positions. A decrease in interest and dividend income of $1.7 million was primarily attributed to average yield decreases of 44 basis points on loans including 39 basis points from the catch-up interest payment, 108 basis points on tax-exempt investment securities, and 28 basis points on taxable investment securities. The corresponding decreases in income from loan interest, tax-exempt investment securities, and taxable investment securities were $902,000, $24,000, and $337,000, respectively. A decrease in interest expense of $761,000 was attributed to intentional reductions in the cost of time deposits and other interest-bearing deposits, as well as reductions in borrowings expense.

Net interest margin was 3.15% in the fourth quarter of 2024, compared to 3.34% in the linked quarter. The decrease was due to the 25 basis points of linked quarter NIM attributed to the third quarter 2024 catch-up interest payment.

Fourth quarter 2024 net interest income was $10.8 million, an increase of 18.1% from the fourth quarter of 2023. An increase in interest and dividend income of $1.2 million was primarily attributed to average yield increases of 33 basis points on loans, 4 basis points on taxable investment securities, and 404 basis points on fed funds sold and interest-earning deposits. The corresponding increase in loan interest income, taxable investment securities, and federal funds sold and interest-earning deposits was $1.1 million, $152,000, and $13,000, respectively. A decrease in interest expense of $463,000 was attributed to changes in the Bank’s deposit mix, repricing of deposits in a lower rate environment, and reductions in borrowings expense.

Net interest margin was 3.15% in the fourth quarter of 2024 compared to 2.74% in the same period the year prior. The increase of 41 basis points was driven by reductions in borrowing and funding costs.

Noninterest Income
Noninterest income totaled $4.9 million in the fourth quarter of 2024, including the $3.2 million pre-tax gain on the insurance agency sale, which represents the gross amount that is required to be 100% consolidated within the Company’s financial statements, despite Pathfinder’s 51% interest in the business sold in October 2024. Noninterest income growth from the third quarter of 2024 was $3.2 million, or $30,000 when excluding the agency sale gain. Noninterest income growth from the fourth quarter of 2023 was $3.6 million, or $419,000 when excluding the agency sale gain.

The insurance agency sold in October contributed $49,000 in revenue to noninterest income in the fourth quarter of 2024, $367,000 in the third quarter of 2024 and $303,000 in the fourth quarter of 2023.

Compared to the linked quarter, fourth quarter 2024 noninterest income also included increases of $16,000 in loan servicing fees and $12,000 in service charges on deposit accounts, a decrease of $194,000 in earnings and gain on bank owned life insurance (“BOLI”) after recording a $175,000 third quarter net death benefit on BOLI, and a $36,000 decrease in debit card interchange fees. Noninterest income growth from the linked quarter also reflected an increase of $438,000 in net realized gains on sales and redemptions of investment securities and $104,000 in net realized gains on sales of marketable equity securities, as well as a decrease of $51,000 in gains on sales of loans and foreclosed real estate.

Compared to the year-ago period, fourth quarter 2024 noninterest income also included increases of $103,000 in interchange fees, $68,000 in service charges on deposit accounts, $26,000 in loan servicing fees, and $3,000 in earnings and gain on BOLI. Noninterest income growth from the year-ago quarter also reflected increases of $248,000 increase in net realized losses on sales and redemptions of investment securities, $213,000 in net realized gains on sales of marketable equity securities, and $41,000 in gains on sales of loans and foreclosed real estate.

Noninterest Expense
Noninterest expense totaled $8.5 million in the fourth quarter of 2024, decreasing $1.7 million from the linked quarter and increasing $1.5 million from the year-ago period.

Fourth quarter 2024 noninterest expense included $456,000 associated with the Company’s insurance agency sale in October 2024, including $155,000 in transaction-related items. The insurance agency incurred $308,000 of noninterest expense in the third quarter of 2024 and $216,000 in the fourth quarter of 2023.

Third quarter 2024 noninterest expense included $1.6 million in transaction-related expenses for Pathfinder’s acquisition of the East Syracuse branch acquisition in July 2024.

Salaries and benefits were $4.1 million in the fourth quarter of 2024, decreasing $839,000 from the linked quarter and increasing $446,000 from the year-ago period. The decrease from the linked quarter reflected elevated non-exempt-employee hours for projects related to the successful third quarter closing and integration of the East Syracuse branch acquisition, as well as some personnel vacancies that were open in the fourth quarter. The increase from the fourth quarter of 2023 was primarily attributed to increased headcount and lower salary deferrals than in the prior year period.

Building and occupancy was $1.3 million in the fourth quarter of 2024, increasing $117,000 and $390,000 from the linked and year-ago quarters, respectively. These increases were due to ongoing facilities-related costs of approximately $322,000 associated with operating the branch acquired in July 2024.

Professional and other services expense was $608,000 in the fourth quarter of 2024, decreasing $1.2 million from the linked quarter and increasing $120,000 from the year-ago period. The decrease from the third quarter of 2024 was primarily attributed to one-time costs associated with the East Syracuse branch acquisition. The increase from the fourth quarter of 2023 was primarily attributed to a $136,000 increase in technology project implementation services and other outsourced consulting services.

Annualized noninterest expense, including transaction-related costs, represented 2.33% of average assets in the fourth quarter of 2024, compared to 2.75% and 2.01% in the linked and year-ago periods. The efficiency ratio, including transaction-related costs, was 69.42% in the fourth quarter of 2024, compared to 75.28% and 67.25% in the linked and year-ago periods. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

Statement of Financial Condition
As of December 31, 2024, the Company’s statement of financial condition reflects total assets of $1.47 billion, compared to $1.48 billion and $1.47 billion recorded on September 30, 2024 and December 31, 2023, respectively.

Loans totaled $919.0 million on December 31, 2024, decreasing 0.3% during the fourth quarter and increasing 2.4% from one year prior. Consumer and residential loans totaled $380.9 million, decreasing 2.0% during the fourth quarter and increasing 1.9% from one year prior. Commercial loans totaled $539.7 million, increasing 1.0% during the fourth quarter and 3.0% from one year prior.

With respect to liabilities, deposits totaled $1.20 billion on December 31, 2024, increasing 0.7% during the fourth quarter and 7.5% from one year prior. The Company also utilized its lower cost liquidity to reduce total borrowings, which were $88.1 million on December 31, 2024 as compared to $100.1 million on September 30, 2024 and $175.6 million on December 31, 2023.

Shareholders’ equity totaled $121.9 million on December 31, 2024, increasing $1.6 million or 1.3% in the fourth quarter and increasing $2.4 million or 2.0% from one year prior. The fourth quarter 2024 increase primarily reflects a $4.5 million increase in retained earnings, partially offset by a $2.4 million increase in accumulated other comprehensive loss (“AOCL”) and a $481,000 decrease in additional paid in capital. The full-year 2024 increase in shareholders’ equity primarily reflects a $2.1 increase in retained earnings and a $461,000 decrease in AOCL, partially offset by a $364,000 decrease in additional paid in capital. The noncontrolling interest included in equity on the Statements of Financial Condition was eliminated with the October 2024 sale of the 51% ownership interest in the Company’s insurance agency.

Asset Quality
Pathfinder’s asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

Nonperforming loans were $22.1 million or 2.40% of total loans on December 31, 2024, $16.2 million or 1.75% of total loans on September 30, 2024 and $17.2 million or 1.92% of total loans on December 31, 2023.

Net charge offs (“NCOs”) after recoveries were $1.0 million or an annualized 0.44% of average loans in the fourth quarter of 2024, with gross charge offs for consumer loans, purchased loan pools, and one commercial loan offsetting recoveries in each of these categories. NCOs were $8.7 million or an annualized 3.82% of average loans in the linked quarter, following the loan portfolio review completed in September, and $108,000 or 0.05% in the prior year period.

Provision for credit loss expense was $988,000 in the fourth quarter of 2024, reflecting NCOs in the period and qualitative factors in the Company’s reserve model. Third quarter of 2024 provision was $9.0 million, primarily to replenish commercial loan reserves and adjust the lifetime loss estimate for solar purchased loan pool positions following the loan portfolio review completed in September. Fourth quarter 2023 provision was $265,000.

The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $17.2 million on December 31, 2024, compared to $17.3 million on September 30, 2024 and $16.0 million on December 31, 2023. As a percentage of total loans, ACL represented 1.88% on December 31, 2024, 1.87% on September 30, 2024, and 1.78% on December 31, 2023.

Liquidity
The Company has diligently ensured a strong liquidity profile as of December 31, 2024 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.

The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.20 billion on December 31, 2024, $1.20 billion on September 30, 2024, and $1.12 billion on December 31, 2023. Core deposits represented 76.87% of total deposits on December 31, 2024, 77.45% on September 30, 2024, and 69.83% on December 31, 2023. The Bank’s continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

At the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of $113.8 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $43.3 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

Cash Dividend Declared
On December 23, 2024, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by January 17, 2025 will be eligible for the dividend, which is scheduled for disbursement on February 7, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.

Evaluating the Company’s market performance, the closing stock price as of December 31, 2024 stood at $17.50 per share. This positions the dividend yield at an attractive 2.29%.

About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the commercial bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches averaging over $100 million in deposits per location, as well as diversified consumer, mortgage and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. At December 31, 2024, the Oswego-headquartered Company had assets of $1.47 billion, loans of $919.0 million, and deposits of $1.20 billion. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

Forward-Looking Statements
Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov.

This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial.

Investor/Media Contacts
James A. Dowd, President, CEO
Justin K. Bigham, Senior Vice President, CFO
Telephone: (315) 343-0057

PATHFINDER BANCORP, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

	2024												2023
SELECTED BALANCE SHEET DATA:	December 31,			September 30,			June 30,			March 31,			December 31,
ASSETS:
Cash and due from banks	$	13,963		$	18,923		$	12,022		$	13,565		$	12,338
Interest-earning deposits		17,609			16,401			19,797			15,658			36,394
Total cash and cash equivalents		31,572			35,324			31,819			29,223			48,732
Available-for-sale securities, at fair value		269,331			271,977			274,977			279,012			258,716
Held-to-maturity securities, at amortized cost		158,683			161,385			166,271			172,648			179,286
Marketable equity securities, at fair value		4,076			3,872			3,793			3,342			3,206
Federal Home Loan Bank stock, at cost		4,590			5,401			8,702			7,031			8,748
Loans		918,986			921,660			888,263			891,531			897,207
Less: Allowance for credit losses		17,243			17,274			16,892			16,655			15,975
Loans receivable, net		901,743			904,386			871,371			874,876			881,232
Premises and equipment, net		19,009			18,989			18,878			18,332			18,441
Assets held-for-sale		–			–			3,042			3,042			3,042
Operating lease right-of-use assets		1,391			1,425			1,459			1,493			1,526
Finance lease right-of-use assets		16,676			16,873			4,004			4,038			4,073
Accrued interest receivable		6,881			6,806			7,076			7,170			7,286
Foreclosed real estate		–			–			60			82			151
Intangible assets, net		5,989			6,217			76			80			85
Goodwill		5,056			5,752			4,536			4,536			4,536
Bank owned life insurance		24,727			24,560			24,967			24,799			24,641
Other assets		25,150			20,159			25,180			23,968			22,097
Total assets	$	1,474,874		$	1,483,126		$	1,446,211		$	1,453,672		$	1,465,798

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Deposits:
Interest-bearing deposits	$	990,674		$	986,103		$	932,132		$	969,692		$	949,898
Noninterest-bearing deposits		213,719			210,110			169,145			176,421			170,169
Total deposits		1,204,393			1,196,213			1,101,277			1,146,113			1,120,067
Short-term borrowings		61,000			60,315			127,577			91,577			125,680
Long-term borrowings		27,068			39,769			45,869			45,869			49,919
Subordinated debt		30,107			30,057			30,008			29,961			29,914
Accrued interest payable		234			236			2,092			1,963			2,245
Operating lease liabilities		1,591			1,621			1,652			1,682			1,711
Finance lease liabilities		16,745			16,829			4,359			4,370			4,381
Other liabilities		11,876			16,986			9,203			9,505			11,625
Total liabilities		1,353,014			1,362,026			1,322,037			1,331,040			1,345,542
Shareholders’ equity:
Voting common stock shares issued and outstanding		4,742,841			4,719,788			4,719,788			4,719,788			4,719,288
Voting common stock		47			47			47			47			47
Non-Voting common stock		14			14			14			14			14
Additional paid in capital		52,750			53,231			53,182			53,151			53,114
Retained earnings		78,193			73,670			78,936			77,558			76,060
Accumulated other comprehensive loss		(9,144	)		(6,716	)		(8,786	)		(8,862	)		(9,605	)
Unearned ESOP shares		–			–			(45	)		(90	)		(135	)
Total Pathfinder Bancorp, Inc. shareholders’ equity		121,860			120,246			123,348			121,818			119,495
Noncontrolling interest		–			854			826			814			761
Total equity		121,860			121,100			124,174			122,632			120,256
Total liabilities and shareholders’ equity	$	1,474,874		$	1,483,126		$	1,446,211		$	1,453,672		$	1,465,798

_{The above information is preliminary and based on the Company’s data available at the time of presentation.}

	Years Ended December 31,						2024												2023
SELECTED INCOME STATEMENT DATA:	2024			2023			Q4			Q3			Q2			Q1			Q4
Interest and dividend income:
Loans, including fees	$	52,705		$	47,348		$	13,523		$	14,425		$	12,489		$	12,268		$	12,429
Debt securities:
Taxable		22,319			17,500			5,312			5,664			5,736			5,607			5,092
Tax-exempt		1,920			1,947			445			469			498			508			506
Dividends		620			573			164			149			178			129			232
Federal funds sold and interest-earning deposits		793			295			82			492			121			98			69
Total interest and dividend income		78,357			67,663			19,526			21,199			19,022			18,610			18,328
Interest expense:
Interest on deposits		30,050			23,265			7,380			7,633			7,626			7,411			7,380
Interest on short-term borrowings		4,176			2,688			700			1,136			1,226			1,114			1,064
Interest on long-term borrowings		733			850			136			202			201			194			231
Interest on subordinated debt		1,966			1,941			490			496			489			491			494
Total interest expense		36,925			28,744			8,706			9,467			9,542			9,210			9,169
Net interest income		41,432			38,919			10,820			11,732			9,480			9,400			9,159
Provision for (benefit from) credit losses:
Loans		11,106			2,991			988			9,104			304			710			316
Held-to-maturity securities		(94	)		(98	)		(4	)		(31	)		(74	)		15			(74	)
Unfunded commitments		(39	)		37			4			(104	)		60			1			23
Total provision for credit losses		10,973			2,930			988			8,969			290			726			265
Net interest income after provision for credit losses		30,459			35,989			9,832			2,763			9,190			8,674			8,894
Noninterest income:
Service charges on deposit accounts		1,436			1,249			405			392			330			309			336
Earnings and gain on bank owned life insurance		854			630			169			361			167			157			164
Loan servicing fees		375			307			96			79			112			88			69
Net realized (losses) gains on sales and redemptions of investment securities		(71	)		62			249			(188	)		16			(148	)		2
Gain on asset sale ^{1 & 2}		3,169			–			3,169			–			–			–			–
Net realized gains (losses) on sales of marketable equity securities		197			(255	)		166			62			(139	)		108			(47	)
Gains on sales of loans and foreclosed real estate		187			181			39			90			40			18			(2	)
Loss on sale of premises and equipment		(13	)		–			–			(36	)		–			–			–
Debit card interchange fees		875			616			265			300			191			119			161
Insurance agency revenue ¹		1,073			1,304			49			367			260			397			303
Other charges, commissions & fees		1,479			1,096			299			280			234			689			332
Total noninterest income		9,561			5,190			4,906			1,707			1,211			1,737			1,318
Noninterest expense:
Salaries and employee benefits		17,810			15,920			4,123			4,959			4,399			4,329			3,677
Building and occupancy		4,118			3,563			1,254			1,134			914			816			864
Data processing		2,471			2,018			721			672			550			528			499
Professional and other services		3,686			2,019			608			1,820			696			562			488
Advertising		604			671			218			165			116			105			155
FDIC assessments		916			885			231			228			228			229			222
Audits and exams		539			735			123			123			123			170			259
Insurance agency expense ¹		1,281			1,033			456			308			232			285			216
Community service activities		130			200			19			20			39			52			49
Foreclosed real estate expenses		102			111			20			27			30			25			35
Other expenses		2,760			2,240			771			803			581			605			580
Total noninterest expense		34,417			29,395			8,544			10,259			7,908			7,706			7,044
Income (loss) before provision for income taxes		5,603			11,784			6,194			(5,789	)		2,493			2,705			3,168
Provision (benefit) for income taxes		398			2,362			558			(1,173	)		481			532			590
Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.		5,205			9,422			5,636			(4,616	)		2,012			2,173			2,578
Net income attributable to noncontrolling interest ¹		1,445			129			1,352			28			12			53			42
Net income (loss) attributable to Pathfinder Bancorp Inc.	$	3,760		$	9,293		$	4,284		$	(4,644	)	$	2,000		$	2,120		$	2,536
Voting Earnings per common share – basic and diluted	$	0.60		$	1.51		$	0.69		$	(0.75	)	$	0.32		$	0.34		$	0.41
Series A Non-Voting Earnings per common share- basic and diluted	$	0.60		$	1.51		$	0.69		$	(0.75	)	$	0.32		$	0.34		$	0.41
Dividends per common share (Voting and Series A Non-Voting)	$	0.40		$	0.36		$	0.10		$	0.10		$	0.10		$	0.10		$	0.09

_{¹ Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements.}
_{² The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.}

_{The above information is preliminary and based on the Company’s data available at the time of presentation.}

	Years Ended December 31,						2024												2023
FINANCIAL HIGHLIGHTS:	2024			2023			Q4			Q3			Q2			Q1			Q4
Selected Ratios:
Return on average assets		0.26	%		0.67	%		1.17	%		-1.25	%		0.56	%		0.59	%		0.72	%
Return on average common equity		3.06	%		8.09	%		14.09	%		-14.79	%		6.49	%		7.01	%		8.72	%
Return on average equity		3.06	%		8.09	%		14.09	%		-14.79	%		6.49	%		7.01	%		8.72	%
Return on average tangible common equity ¹		3.23	%		8.43	%		15.54	%		-15.28	%		6.78	%		7.32	%		9.01	%
Net interest margin		3.01	%		2.95	%		3.15	%		3.34	%		2.78	%		2.75	%		2.74	%
Loans / deposits		76.30	%		80.10	%		76.30	%		77.05	%		80.66	%		77.79	%		80.10	%
Core deposits/deposits ²		76.87	%		69.83	%		76.87	%		77.45	%		67.98	%		69.17	%		69.83	%
Annualized non-interest expense / average assets		3.17	%		2.11	%		2.33	%		2.75	%		2.19	%		2.16	%		2.01	%
Commercial real estate / risk-based capital ³		186.73	%		162.21	%		186.73	%		189.47	%		169.73	%		163.93	%		162.21	%
Efficiency ratio ¹		71.86	%		66.74	%		69.42	%		75.28	%		74.08	%		68.29	%		67.25	%

Other Selected Data:
Average yield on loans		5.83	%		5.26	%		5.87	%		6.31	%		5.64	%		5.48	%		5.55	%
Average cost of interest bearing deposits		3.08	%		2.45	%		2.94	%		3.11	%		3.21	%		3.07	%		3.10	%
Average cost of total deposits, including non-interest bearing		2.59	%		2.07	%		2.44	%		2.59	%		2.72	%		2.61	%		2.63	%
Deposits/branch ⁴	$	100,366		$	101,824		$	100,366		$	99,684		$	100,116		$	104,192		$	101,824
Pre-tax, pre-provision net income ¹	$	13,478		$	14,652		$	3,764		$	3,368		$	2,767		$	3,579		$	3,431
Total revenue ¹	$	47,895		$	44,047		$	12,308		$	13,627		$	10,675		$	11,285		$	10,475

Share and Per Share Data:
Cash dividends per share	$	0.40		$	0.36		$	0.10		$	0.10		$	0.10		$	0.10		$	0.09
Book value per common share	$	19.90		$	19.59		$	19.90		$	19.71		$	20.22		$	19.97		$	19.59
Tangible book value per common share ¹	$	18.10		$	18.83		$	18.10		$	17.75		$	19.46		$	19.21		$	18.83
Basic and diluted weighted average shares outstanding – Voting		4,714			4,653			4,732			4,714			4,708			4,701			4,693
Basic and diluted earnings per share – Voting ⁵	$	0.60		$	1.51		$	0.69		$	(0.75	)	$	0.32		$	0.34		$	0.41
Basic and diluted weighted average shares outstanding – Series A Non-Voting		1,380			1,380			1,380			1,380			1,380			1,380			1,380
Basic and diluted earnings per share – Series A Non-Voting ⁵	$	0.60		$	1.51		$	0.69		$	(0.75	)	$	0.32		$	0.34		$	0.41
Common shares outstanding at period end		6,123			6,100			6,123			6,100			6,100			6,100			6,100

Pathfinder Bancorp, Inc. Capital Ratios:
Company tangible common equity to tangible assets ¹		7.57	%		7.86	%		7.57	%		7.36	%		8.24	%		8.09	%		7.86	%
Company Total Core Capital (to Risk-Weighted Assets)		15.70	%		16.17	%		15.70	%		15.55	%		16.19	%		16.23	%		16.17	%
Company Tier 1 Capital (to Risk-Weighted Assets)		12.04	%		12.30	%		12.04	%		11.84	%		12.31	%		12.33	%		12.30	%
Company Tier 1 Common Equity (to Risk-Weighted Assets)		11.55	%		11.81	%		11.55	%		11.33	%		11.83	%		11.85	%		11.81	%
Company Tier 1 Capital (to Assets)		8.69	%		9.35	%		8.69	%		8.29	%		9.16	%		9.16	%		9.35	%

Pathfinder Bank Capital Ratios:
Bank Total Core Capital (to Risk-Weighted Assets)		14.70	%		15.05	%		14.70	%		14.52	%		16.04	%		15.65	%		15.05	%
Bank Tier 1 Capital (to Risk-Weighted Assets)		13.44	%		13.80	%		13.44	%		13.26	%		14.79	%		14.39	%		13.80	%
Bank Tier 1 Common Equity (to Risk-Weighted Assets)		13.44	%		13.80	%		13.44	%		13.26	%		14.79	%		14.39	%		13.80	%
Bank Tier 1 Capital (to Assets)		9.69	%		10.11	%		9.69	%		9.13	%		10.30	%		10.13	%		10.11	%

_{¹ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.}
_{² Non-brokered deposits excluding certificates of deposit of $250,000 or more.}
_{³ Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.}
_{⁴ Includes 11 full-service branches and one motor bank for December 31 and September 30, 2024, respectively. Includes 10 full-service branches and one motor bank for all periods prior.}
_{⁵ Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.}

The above information is preliminary and based on the Company’s data available at the time of presentation.

	Years Ended December 31,						2024												2023
ASSET QUALITY:	2024			2023			Q4			Q3			Q2			Q1			Q4
Total loan charge-offs	$	10,183		$	4,221		$	1,191		$	8,812		$	112		$	68		$	211
Total recoveries		345			355			171			90			46			38			103
Net loan charge-offs		9,838			3,866			1,020			8,722			66			30			108
Allowance for credit losses at period end		17,243			15,975			17,243			17,274			16,892			16,655			15,975
Nonperforming loans at period end		22,084			17,227			22,084			16,170			24,490			19,652			17,227
Nonperforming assets at period end	$	22,084		$	17,378		$	22,084		$	16,170		$	24,550		$	19,734		$	17,378
Annualized net loan charge-offs to average loans		1.09	%		0.43	%		0.44	%		3.82	%		0.03	%		0.01	%		0.05	%
Allowance for credit losses to period end loans		1.88	%		1.78	%		1.88	%		1.87	%		1.90	%		1.87	%		1.78	%
Allowance for credit losses to nonperforming loans		78.08	%		92.73	%		78.08	%		106.83	%		68.98	%		84.75	%		92.73	%
Nonperforming loans to period end loans		2.40	%		1.92	%		2.40	%		1.75	%		2.76	%		2.20	%		1.92	%
Nonperforming assets to period end assets		1.50	%		1.19	%		1.50	%		1.09	%		1.70	%		1.36	%		1.19	%

	2024													2023
LOAN COMPOSITION:	December 31,			September 30,			June 30,			March 31,			December 31,
1-4 family first-lien residential mortgages	$	251,373		$	255,235		$	250,106		$	252,026		$	257,604
Residential construction		4,864			4,077			309			1,689			1,355
Commercial real estate		377,619			378,805			370,361			363,467			358,707
Commercial lines of credit		67,602			64,672			62,711			67,416			72,069
Other commercial and industrial		89,800			88,247			90,813			91,178			89,803
Paycheck protection program loans		113			125			136			147			158
Tax exempt commercial loans		4,544			2,658			3,228			3,374			3,430
Home equity and junior liens		51,948			52,709			35,821			35,723			34,858
Other consumer		72,710			76,703			75,195			77,106			79,797
Subtotal loans		920,573			923,231			888,680			892,126			897,781
Deferred loan fees		(1,587	)		(1,571	)		(417	)		(595	)		(574	)
Total loans	$	918,986		$	921,660		$	888,263		$	891,531		$	897,207

	2024								2023
DEPOSIT COMPOSITION:	December 31,		September 30,		June 30,		March 31,		December 31,
Savings accounts	$	128,752	$	129,053	$	106,048	$	111,465	$	113,543
Time accounts		360,586		352,729		368,262		378,103		377,570
Time accounts in excess of $250,000		142,473		140,181		117,021		114,514		95,272
Money management accounts		11,583		11,520		12,154		11,676		12,364
MMDA accounts		239,016		250,007		193,915		215,101		224,707
Demand deposit interest-bearing		101,080		97,344		128,168		134,196		119,321
Demand deposit noninterest-bearing		213,719		210,110		169,145		176,434		170,169
Mortgage escrow funds		7,184		5,269		6,564		4,624		7,121
Total deposits	$	1,204,393	$	1,196,213	$	1,101,277	$	1,146,113	$	1,120,067

_{The above information is preliminary and based on the Company’s data available at the time of presentation.}

	Years Ended December 31,						2024						2023
SELECTED AVERAGE BALANCES:	2024			2023			Q4			Q3			Q4
Interest-earning assets:
Loans	$	903,941		$	899,605		$	920,855		$	914,467		$	896,439
Taxable investment securities		423,475			379,600			412,048			415,751			403,411
Tax-exempt investment securities		30,861			30,318			34,918			30,382			27,941
Fed funds sold and interest-earning deposits		16,379			11,730			5,115			42,897			11,630
Total interest-earning assets		1,374,656			1,321,253			1,372,936			1,403,497			1,339,421
Noninterest-earning assets:
Other assets		102,582			100,319			112,654			103,856			102,940
Allowance for credit losses		(16,670	)		(17,870	)		(17,145	)		(16,537	)		(17,359	)
Net unrealized losses on available-for-sale securities		(9,769	)		(13,600	)		(8,534	)		(9,161	)		(15,653	)
Total assets	$	1,450,799		$	1,390,102		$	1,459,911		$	1,481,655		$	1,409,349
Interest-bearing liabilities:
NOW accounts	$	101,336		$	92,223		$	102,862		$	102,868		$	87,210
Money management accounts		11,679			14,116			11,371			11,828			12,518
MMDA accounts		227,597			239,182			257,429			227,247			231,957
Savings and club accounts		118,965			124,617			128,169			127,262			115,984
Time deposits		517,352			480,867			504,008			514,049			505,554
Subordinated loans		30,002			29,815			30,076			30,025			29,883
Borrowings		114,471			105,471			68,391			122,129			124,780
Total interest-bearing liabilities		1,121,402			1,086,291			1,102,306			1,135,408			1,107,886
Noninterest-bearing liabilities:
Demand deposits		184,572			172,950			206,521			195,765			169,340
Other liabilities		21,923			16,037			29,491			24,856			15,858
Total liabilities		1,327,897			1,275,278			1,338,318			1,356,029			1,293,084
Shareholders’ equity		122,902			114,824			121,593			125,626			116,265
Total liabilities & shareholders’ equity	$	1,450,799		$	1,390,102		$	1,459,911		$	1,481,655		$	1,409,349

	Years Ended December 31,						2024						2023
SELECTED AVERAGE YIELDS:	2024			2023			Q4			Q3			Q4
Interest-earning assets:
Loans		5.83	%		5.26	%		5.87	%		6.31	%		5.55	%
Taxable investment securities		5.42	%		4.76	%		5.32	%		5.59	%		5.28	%
Tax-exempt investment securities		6.22	%		6.42	%		5.10	%		6.17	%		7.24	%
Fed funds sold and interest-earning deposits		4.84	%		2.51	%		6.41	%		4.59	%		2.37	%
Total interest-earning assets		5.70	%		5.12	%		5.69	%		6.04	%		5.47	%
Interest-bearing liabilities:
NOW accounts		1.10	%		0.58	%		1.19	%		1.09	%		1.02	%
Money management accounts		0.11	%		0.11	%		0.11	%		0.10	%		0.10	%
MMDA accounts		3.52	%		2.80	%		3.23	%		3.54	%		3.72	%
Savings and club accounts		0.26	%		0.22	%		0.26	%		0.25	%		0.26	%
Time deposits		3.98	%		3.27	%		3.90	%		4.09	%		3.89	%
Subordinated loans		6.55	%		6.51	%		6.52	%		6.61	%		6.61	%
Borrowings		4.29	%		3.35	%		4.89	%		4.38	%		4.15	%
Total interest-bearing liabilities		3.29	%		2.65	%		3.16	%		3.34	%		3.31	%
Net interest rate spread		2.41	%		2.47	%		2.53	%		2.70	%		2.16	%
Net interest margin		3.01	%		2.95	%		3.15	%		3.34	%		2.74	%
Ratio of average interest-earning assets to average interest-bearing liabilities		122.58	%		121.63	%		124.55	%		123.61	%		120.90	%

_{The above information is preliminary and based on the Company’s data available at the time of presentation.}

	Years Ended December 31,						2024												2023
NON-GAAP RECONCILIATIONS:	2024			2023			Q4			Q3			Q2			Q1			Q4
Tangible book value per common share:
Total equity							$	121,860		$	120,246		$	123,348		$	121,818		$	119,495
Intangible assets								(11,045	)		(11,969	)		(4,612	)		(4,616	)		(4,621	)
Tangible common equity (non-GAAP)								110,815			108,277			118,736			117,202			114,874
Common shares outstanding								6,123			6,100			6,100			6,100			6,100
Tangible book value per common share (non-GAAP)							$	18.10		$	17.75		$	19.46		$	19.21		$	18.83
Tangible common equity to tangible assets:
Tangible common equity (non-GAAP)							$	110,815		$	108,277		$	118,736		$	117,202		$	114,874
Tangible assets								1,463,829			1,471,157			1,441,599			1,449,056			1,461,177
Tangible common equity to tangible assets ratio (non-GAAP)								7.57	%		7.36	%		8.24	%		8.09	%		7.86	%
Return on average tangible common equity:
Average shareholders’ equity	$	122,902		$	114,824		$	121,593		$	125,626		$	123,211		$	121,031		$	116,265
Average intangible assets		6,468			4,629			11,907			4,691			4,614			4,619			4,623
Average tangible equity (non-GAAP)		116,434			110,195			109,686			120,935			118,597			116,412			111,642
Net income (loss)		3,760			9,293			4,284			(4,644	)		2,000			2,120			2,536
Net income (loss), annualized	$	3,760		$	9,293		$	17,043		$	(18,475	)	$	8,044		$	8,527		$	10,061
Return on average tangible common equity (non-GAAP) ¹		3.23	%		8.43	%		15.54	%		-15.28	%		6.78	%		7.32	%		9.01	%
Revenue, pre-tax, pre-provision net income, and efficiency ratio:
Net interest income	$	41,432		$	38,919		$	10,820		$	11,732		$	9,480		$	9,400		$	9,159
Total noninterest income		9,561			5,190			4,906			1,707			1,211			1,737			1,318
Net realized (gains) losses on sales and redemptions of investment securities		(71	)		62			249			(188	)		16			(148	)		2
Gain on asset sale		3,169			–			3,169			–			–			–			–
Revenue (non-GAAP) ²		47,895			44,047			12,308			13,627			10,675			11,285			10,475
Total non-interest expense		34,417			29,395			8,544			10,259			7,908			7,706			7,044
Pre-tax, pre-provision net income (non-GAAP) ³	$	13,478		$	14,652		$	3,764		$	3,368		$	2,767		$	3,579		$	3,431
Efficiency ratio (non-GAAP) ⁴		71.86	%		66.74	%		69.42	%		75.28	%		74.08	%		68.29	%		67.25	%

_{¹ Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity}
_{² Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities and gain on sale of insurance agency}
_{³ Pre-tax, pre-provision net income equals revenue less total non-interest expense}
_{⁴ Efficiency ratio equals noninterest expense divided by revenue}

_{The above information is preliminary and based on the Company’s data available at the time of presentation}.

The MIL Network –

February 1, 2025

MIL-OSI: Territorial Bancorp Inc. Announces Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

The Company’s tier one leverage and risk-based capital ratios were 11.68% and 28.96%, respectively, and the Company is considered to be “well-capitalized” at December 31, 2024.
Ratio of non-performing assets to total assets of 0.09% at December 31, 2024.

HONOLULU, Jan. 31, 2025 (GLOBE NEWSWIRE) — Territorial Bancorp Inc. (NASDAQ: TBNK) (the Company), headquartered in Honolulu, Hawaii, the holding company parent of Territorial Savings Bank, reported a net loss of $1.72 million, or $0.20 per diluted share, for the three months ended December 31, 2024. Results reflect $1.53 million of pre-tax merger-related expenses.

The Board of Directors approved a dividend of $0.01 per share. The dividend is expected to be paid on February 28, 2025, to stockholders of record as of February 14, 2025.

Hope Bancorp, Inc. Merger Agreement

As previously announced in a joint news release issued April 29, 2024, Hope Bancorp, Inc. (NASDAQ: HOPE) (Hope Bancorp) and the Company signed a definitive merger agreement. Under the terms of the merger agreement, Company stockholders will receive a fixed exchange ratio of 0.8048 share of Hope Bancorp common stock in exchange for each share of Company common stock they own, in a 100% stock-for-stock transaction valued at approximately $78.60 million, based on the closing price of Hope Bancorp’s common stock on April 26, 2024. The transaction is intended to qualify as a tax-free reorganization for Territorial stockholders.

Upon completion of the transaction, Hope Bancorp intends to maintain the Territorial franchise in Hawaii and preserve the 100-plus year legacy of the Territorial Savings Bank brand name, culture and commitment to the local communities. The branches will continue to do business under the Territorial Savings Bank brand, as a trade name of Bank of Hope.

The transaction is subject to regulatory approvals and the satisfaction of other customary closing conditions.

Interest Income

Net interest income decreased by $2.21 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Total interest income was $17.91 million for the three months ended December 31, 2024, compared to $17.69 million for the three months ended December 31, 2023. The $217,000 increase in total interest income was primarily due to a $274,000 increase in interest earned on loans and a $245,000 increase in interest earned on other investments. The $274,000 increase in interest income on loans resulted from a 14 basis point increase in the average loan yield, partially offset by a $20.63 million decrease in the average loan balance. The increase in interest income on other investments is primarily due to a $28.86 million increase in the average cash balance with the Federal Reserve Bank of San Francisco (FRB), offset by a 45 basis point decrease in the average interest rate paid on cash balances. The increases in interest income on loans and other investments during the quarter were partially offset by a $302,000 decrease in interest on investment securities, which occurred because of a $40.21 million decrease in the average securities balances.

Interest Expense and Provision for Credit Losses

As a result of prolonged increases in short-term interest rates, total interest expense increased by $2.42 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Interest expense on deposits increased by $2.51 million for the three months ended December 31, 2024, primarily due to an increase in interest expense on certificates of deposit (CD) and savings accounts. Interest expense on CDs rose by $1.61 million for the three months ended December 31, 2024, due to a 17 basis point increase in the average cost of CDs and a $132.90 million increase in the average CD balance. Interest expense on savings accounts rose by $892,000 for the three months ended December 31, 2024, due to a 58 basis point increase in the average cost of savings accounts which was partially offset by a $72.23 million decrease in the average balance. The increase in the average cost of CDs and savings accounts occurred as interest rates were raised in response to the increases in market interest rates over that period. The increase in the average balance of CDs and the decrease in the average balance of savings accounts occurred as customers transferred balances from lower rate savings accounts to higher rate CDs. Interest expense on Federal Home Loan Bank (FHLB) borrowings declined by $285,000 for the three months ended December 31, 2024, as the Company paid off $82.00 million in advances from the FHLB during 2024. Interest expense on Federal Reserve Bank (FRB) borrowings rose by $230,000 for the three months ended December 31, 2024, as the Company obtained a $50.00 million advance from the FRB in the fourth quarter of 2023 to enhance the Company’s liquidity and to fund deposit withdrawals. The FRB advances were paid off during the three months ended December 31, 2024.

The Company had a $51,000 provision for credit losses for the three months ending December 31, 2024, compared to a $144,000 provision for the three months ending December 31, 2023. The decrease in the provision for credit losses was due to a decrease in the mortgage loan portfolio, which was partially offset by an increase in provision related to growth in the consumer loan portfolio.

Noninterest Income

Noninterest income increased by $139,000 for the three months ended December 31, 2024 compared to the three months ended December 31, 2023, primarily due to a $129,000 decrease in pension expenses related to an increase in the return on the pension plan’s assets.

Noninterest Expense

Noninterest expense increased by $1.42 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, primarily due to a $1.34 million increase in general and administrative expenses. General and administrative expenses included $1.53 million of merger-related legal and consulting expenses. Federal Deposit Insurance Corporation (FDIC) premium expense rose by $141,000 for the quarter because of an increase in the FDIC insurance premium rates. The increase in other general and administrative expenses and FDIC premiums was offset by a $170,000 decrease in occupancy expense during the quarter. The decrease was due to a one-time reversal of a previously accrued charge.

Income Taxes

Income tax benefit for the three months ended December 31, 2024 was $1.28 million with an effective tax rate of (42.53)% compared to income tax expense of $61,000 with an effective tax rate of 15.44% for the three months ended December 31, 2023. The change from income tax expense to income tax benefit was primarily due to a $3.40 million change in net operating income during the quarter.

Balance Sheet

Total assets were $2.17 billion at December 31, 2024 and $2.24 billion at December 31, 2023. Investment securities, including available for sale securities, decreased by $41.74 million to $664.16 million at December 31, 2024 from $705.90 million at December 31, 2023. The decrease in investment securities occurred because of principal repayments on mortgage-backed securities. Loans receivable decreased by $21.89 million to $1.29 billion at December 31, 2024 from $1.31 billion at December 31, 2023. The decrease in loans receivable occurred as loan repayments and sales exceeded new loan originations. Cash and cash equivalents decreased by $3.14 million to $123.52 million at December 31, 2024 from $126.66 million at December 31, 2023 due to repayments of advances from the FHLB, FRB and repurchase agreements, which were offset by increases in deposits and principal repayments on mortgage-backed securities and on loans receivable.

Deposits increased by $81.06 million from $1.64 billion at December 31, 2023 to $1.72 billion at December 31, 2024. The increase in deposits is primarily due to deposits from state and local governments. The increase in deposits was used with principal repayments on mortgage-backed securities and loans receivable to pay off $82.00 million of maturing FHLB advances, $50.00 million of FRB advances and $10.00 million of repurchase agreements.

Asset Quality

Credit quality continues to be extremely important as the Company adheres to its strict underwriting standards. The Company had $1.22 million in delinquent mortgage loans 90 days or more past due at December 31, 2024, compared to $227,000 at December 31, 2023. Non-performing assets totaled $1.93 million at December 31, 2024, compared to $2.26 million at December 31, 2023. The ratio of non-performing assets to total assets was 0.09% at December 31, 2024, compared to 0.10% at December 31, 2023. The allowance for credit losses was $5.11 million at December 31, 2024, compared to $5.12 million at December 31, 2023, representing 0.40% of total loans at December 31, 2024, compared to 0.39% of total loans at December 31, 2023. The ratio of the allowance for credit losses to non-performing loans was 264.56% at December 31, 2024, compared to 226.59% at December 31, 2023.

About Us

Territorial Bancorp Inc., headquartered in Honolulu, Hawaii, is the stock holding company for Territorial Savings Bank. Territorial Savings Bank is a state-chartered savings bank which was originally chartered in 1921 by the Territory of Hawaii. Territorial Savings Bank conducts business from its headquarters in Honolulu, Hawaii and has 28 branch offices in the state of Hawaii. For additional information, please visit the Company’s website at: https://www.tsbhawaii.bank.

Forward-looking statements

This earnings release contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “will,” “may” and words of similar meaning. These forward-looking statements include, but are not limited to:

statements of our goals, intentions and expectations;
statements regarding our business plans, prospects, growth and operating strategies;
statements regarding the asset quality of our loan and investment portfolios; and
estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this earnings release.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

factors related to the proposed transaction with Hope Bancorp, including the receipt of regulatory approvals, and other customary closing conditions;
general economic conditions, either internationally, nationally or in our market areas, that are worse than expected;
competition among depository and other financial institutions;
inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments;
adverse changes in the securities markets;
changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;
changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board;
our ability to enter new markets successfully and capitalize on growth opportunities;
our ability to successfully integrate acquired entities, if any;
changes in consumer demand, spending, borrowing and savings habits;
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board;
changes in our organization, compensation and benefit plans;
the timing and amount of revenues that we may recognize;
the value and marketability of collateral underlying our loan portfolios;
our ability to retain key employees;
cyberattacks, computer viruses and other technological risks that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data or disable our systems;
technological change that may be more difficult or expensive than expected;
the ability of third-party providers to perform their obligations to us;
the ability of the U.S. Government to manage federal debt limits;
the quality and composition of our investment portfolio;
the effect of any pandemic disease, natural disaster, war, act of terrorism, accident or similar action or event;
changes in market and other conditions that would affect our ability to repurchase our common stock; and
changes in our financial condition or results of operations that reduce capital available to pay dividends.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

Contact: Walter Ida
(808) 946-1400

Territorial Bancorp Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended					Year Ended
	December 31,					December 31,
	2024			2023		2024			2023
Interest income:
Loans	$	12,280		$	12,006	$	48,820		$	47,043
Investment securities		4,104			4,406	16,857			17,918
Other investments		1,524			1,279	6,628			4,127
Total interest income		17,908			17,691	72,305			69,088

Interest expense:
Deposits		8,731			6,223	31,389			19,484
Advances from the Federal Home Loan Bank		1,569			1,854	6,899			6,636
Advances from the Federal Reserve Bank		384			154	2,173			183
Securities sold under agreements to repurchase		15			46	152			154
Total interest expense		10,699			8,277	40,613			26,457

Net interest income		7,209			9,414	31,692			42,631
Provision (reversal of provision) for credit losses		51			144	73			(3		)

Net interest income after provision (reversal of provision) for credit losses		7,158			9,270	31,619			42,634

Noninterest income:
Service and other fees		285			305	1,170			1,327
Income on bank-owned life insurance		257			227	1,007			855
Net gain on sale of loans		—			—	19			10
Other		200			71	415			279
Total noninterest income		742			603	2,611			2,471

Noninterest expense:
Salaries and employee benefits		5,181			5,109	19,787			20,832
Occupancy		1,539			1,709	6,858			6,910
Equipment		1,320			1,278	5,307			5,156
Federal deposit insurance premiums		386			245	1,667			982
Other general and administrative expenses		2,474			1,137	7,325			4,388
Total noninterest expense		10,900			9,478	40,944			38,268

(Loss) Income before income taxes		(3,000	)		395	(6,714		)	6,837
Income tax (benefit) expense		(1,276	)		61	(2,415		)	1,810
Net (loss) income	$	(1,724	)	$	334	$	(4,299	)	$	5,027

Basic (loss) earnings per share	$	(0.20	)	$	0.04	$	(0.50	)	$	0.58
Diluted (loss) earnings per share	$	(0.20	)	$	0.04	$	(0.50	)	$	0.57
Cash dividends declared per common share	$	0.01		$	0.05	$	0.08		$	0.74
Basic weighted-average shares outstanding		8,630,432			8,575,902	8,610,706			8,636,495
Diluted weighted-average shares outstanding		8,630,432			8,603,843	8,610,706			8,684,092

Territorial Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)

	December 31,			December 31,
	2024			2023
ASSETS
Cash and cash equivalents	$	123,523		$	126,659
Investment securities available for sale, at fair value		18,492			20,171
Investment securities held to maturity, at amortized cost (fair value of $513,499 and $568,128 at December 31,2024 and 2023, respectively)		645,669			685,728
Loans receivable		1,286,662			1,308,552
Allowance for credit losses		(5,114	)		(5,121	)
Loans receivable, net of allowance for credit losses		1,281,548			1,303,431
Federal Home Loan Bank stock, at cost		8,542			12,192
Federal Reserve Bank stock, at cost		3,189			3,180
Accrued interest receivable		5,800			6,105
Premises and equipment, net		7,278			7,185
Right-of-use asset, net		12,523			12,371
Bank-owned life insurance		49,645			48,638
Income taxes receivable		2,082			344
Deferred income tax assets, net		1,877			2,457
Prepaid expenses and other assets		9,547			8,211
Total assets	$	2,169,715		$	2,236,672

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits	$	1,717,663		$	1,636,604
Advances from the Federal Home Loan Bank		160,000			242,000
Advances from the Federal Reserve Bank		—			50,000
Securities sold under agreements to repurchase		—			10,000
Accounts payable and accrued expenses		19,403			23,334
Lease liability		17,967			17,297
Advance payments by borrowers for taxes and insurance		6,331			6,351
Total liabilities		1,921,364			1,985,586

Stockholders’ Equity:
Preferred stock, $0.01 par value; authorized 50,000,000 shares, no shares issued or outstanding		—			—
Common stock, $0.01 par value; authorized 100,000,000 shares; issued and outstanding
8,832,210 and 8,826,613 shares at December 31, 2024 and 2023, respectively		88			88
Additional paid-in capital		48,367			48,022
Unearned ESOP shares		(1,957	)		(2,447	)
Retained earnings		206,693			211,644
Accumulated other comprehensive loss		(4,840	)		(6,221	)
Total stockholders’ equity		248,351			251,086
Total liabilities and stockholders’ equity	$	2,169,715		$	2,236,672

Territorial Bancorp Inc. and Subsidiaries
Selected Financial Data (Unaudited)

		Three Months Ended
		December 31,
			2024			2023

Performance Ratios (annualized):
	Return on average assets		-0.32	%		0.06	%
	Return on average equity		-2.75	%		0.53	%
	Net interest margin on average interest earning assets		1.39	%		1.78	%
	Efficiency ratio (1)		137.09	%		94.62	%

		At			At
		December			December
			31, 2024			31, 2023

Selected Balance Sheet Data:
	Book value per share (2)	$	28.12		$	28.45
	Stockholders’ equity to total assets		11.45	%		11.23	%


Asset Quality
(Dollars in thousands):
	Delinquent loans 90 days past due and not accruing	$	1,219		$	227
	Non-performing assets (3)	$	1,933		$	2,260
	Allowance for credit losses	$	5,114		$	5,121
	Non-performing assets to total assets		0.09	%		0.10	%
	Allowance for credit losses to total loans		0.40	%		0.39	%
	Allowance for credit losses to non-performing assets		264.56	%		226.59	%


Note:

(1) Efficiency ratio is equal to noninterest expense divided by the sum of net interest income and noninterest income
(2) Book value per share is equal to stockholders’ equity divided by number of shares issued and outstanding
(3) Non-performing assets consist of non-accrual loans and real estate owned. Amounts are net of charge-offs

The MIL Network –

February 1, 2025

MIL-OSI New Zealand: Activist News – Government ministers and Human Rights Commission give green light to Destiny Church assaults against Palestine solidarity protest this weekend – PSNA

Source: Palestine Solidarity Network Aotearoa (PSNA)

The Palestine Solidarity Network Aotearoa is alarmed Winston Peters and the Human Rights Commissioner have given the green light to Destiny Church assaults against Palestinian support protests this weekend.

PSNA has been contacted by police to say that Brian Tamaki’s Destiny Church has just issued direct threats to ‘shut down’ PSNA if the government and police won’t do it for them.

Tamaki has done this several times over the past 16 months but PSNA Chair John Minto says the orchestrated claims of antisemitism against PSNA this past week have encouraged Brian Tamaki to now believe he could get away with unleashing violence against peaceful protests against the ongoing Israeli genocide in Gaza and the Occupied West Bank.

“We are most concerned about our supporters in smaller centres. We have about 30 local protests in support of Palestinian rights over the next two days. It just takes two or three Destiny Church adherents to get it into their heads that they are doing God’s work and turn up to beat up our people.

Minto says he can understand why Tamaki thinks he is licenced to carry out his threats.

“Our government still has not uttered one word condemning Israeli genocide. But when we say we want to tell Israeli soldiers who are on holiday here that they are not welcome in Aotearoa, then the Human Rights Commissioner distorts this into the threats of violence and the Foreign Minister falls into line behind him.”

“We did not advocate violence. We are not encouraging nor are we promoting violence – even against Israelis guilty of participating in genocide having a happy holiday here.”

“In particular we are concerned that the Human Rights Commissioner Stephen Rainbow is leading the claims against Palestinian human rights supporters.”

“Rainbow was a prominent champion of Israeli apartheid before the was appointed Human Rights Commissioner.”

“Only a year ago he was writing such articles for the Israel Institute NZ, entitled “With every chant, Israel’s case grows stronger” condemning “kaffiyeh wearing antics of Labour and Green MP’s of late.”

“Rainbow has not parked his Zionist apartheid politics at the door of the Human Rights Commission. He is misusing his high status semi-judicial position to openly promote on behalf of Israel – as a state committing genocide – by misrepresenting PSNA.’

“No wonder Brian Tamaki and his Destiny Church think the government will turn a blind eye to Destiny Church escalating into physical attacks.”

Minto says Palestinian New Zealanders will be feeling our government and institutions are sanctioning violence against them.

“Many Palestinians in this country have lost immediate family in the massive Israeli onslaught on Gaza over the past 16 months. They are well aware the New Zealand Foreign Minister has been absolutely silent about any blame on Israel. Yet he is instantly quick to condemn local human rights groups which these Palestinians belong to.”

“To send a message of reassurance to Palestinian New Zealanders and hopefully restrain Tamaki, Paul Goldsmith, as Rainbow’s minister, must at the very least immediately suspend Rainbow as Human Rights Commissioner.”

John Minto

National Chair

Palestine Solidarity Network Aotearoa

MIL OSI New Zealand News –

February 1, 2025

MIL-OSI Security: U.S. Attorney’s Office Collects More than $4M in Civil and Criminal Actions Plus Nearly $2M in Forfeited Assets in Fiscal Year 2024

Source: Office of United States Attorneys

TULSA, Okla. – U.S. Attorney Clint Johnson announced today that the Northern District of Oklahoma (NDOK) collected $4,029,804.93 in criminal and civil actions in Fiscal Year 2024. Of this amount, $2,572,450.48 was collected in criminal actions, and $1,457,354.45 was collected in civil actions. Additionally, the NDOK worked with partner agencies and divisions to collect $1,726,442 in asset forfeiture actions in FY 2024.

“The Asset Recovery Unit and Asset Forfeiture teams consist of federal prosecutors, investigators, and professional support staff. In 2024, they collected more than $4 million on behalf of victims and collected nearly $2 million in assets, said U.S. Attorney, Clint Johnson. “Both teams diligently work to recover court ordered restitution to victims and process court ordered forfeiture. This funding not only impacts the Crime Victims Fund, but also goes towards law enforcement programs.”

Examples of Asset Recovery…
In March 2024, the Northern District recovered $106,994.94 in U.S. v. Shane Hannaford, 21-CR-111. A veteran of the U.S. Marines, Hannaford devised a fraudulent investment scheme, defrauding fellow veterans he had served with in Iraq. Hannaford pled guilty to Bank Fraud, and the Court ordered him to pay $806,607.14 in restitution to his victims. The Northern District captured a significant payment towards restitution by intercepting proceeds from Hannaford’s sale of his home.

In September 2024, the Northern District recovered $287,521.53 in U.S. v. Keven Ellis Partin, 19-CR-121. Partin pled guilty to Offering or Paying Healthcare Kickbacks. The Court ordered him to pay $338,805 in restitution to Department of Labor, TRICARE, Department of Veteran Affairs, and Medicare. Through liens and other enforcement tools, the Northern District recovered full restitution for these federal agencies.

In May 2024, the Northern District of Oklahoma recovered $62,000 in U.S. v. Leslie Ellen Mansfield, 23-CR-170. Mansfield, an attorney, oversaw special needs trust accounts for intellectually challenged adults. Mansfield pled guilty to Bank Fraud, and the Court ordered her to pay $137,240.95 in restitution. The Northern District recovered full restitution for the living victims.

Examples of Asset Forfeiture…
In March 2024, the Northern District recovered $35,000 in U.S. v. Jesus Salazar-Lares, et al., 22-CR-339. In Aug. 2024, Salazar-Lares and others, traveled from Chicago to Tulsa and delivered more than 10 pounds of methamphetamine. Salazar-Lares pled guilty to distribution of methamphetamine. The court authorized the seizure of $35,000 in cash.

In April 2024, the Northern District recovered $84,788.42 in U.S. v. Melvin Brown, 22-CR-419. From July 2020 through May 2021, Brown conspired with others to distribute cocaine. Romero pled guilty to drug conspiracy. The court authorized the seizure of Romero’s bank account that had approximately $84,788.42.

In June 2024, the Northern District recovered $620,000 in U.S. v. Jose Romero, et al., 22-CR-339. From Oct. 2019 through Oct. 2022, Romero conducted financial transactions with funds received through drug trafficking. Romero pled guilty to 18 counts of money laundering. The court authorized the forfeiture of $20,297 in cash, 18 vehicles, one firearm, approximately $50,076.31 from seized bank accounts, and four real estate properties.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

MIL Security OSI –

February 1, 2025

MIL-OSI Europe: Miha Švent appointed as EIB Representative to Bosnia and Herzegovina

Source: European Investment Bank

The EU Bank announces appointment of its new representative and remains committed to strengthening Bosnia and Herzegovina’s sustainable connectivity, climate action, energy security, and market competitiveness.
To date, EIB Global has provided €3.5 billion in affordable financial support and technical assistance to the country for strategic projects.

The European Investment Bank (EIB Global) has appointed Miha Švent as its new representative for Bosnia and Herzegovina (BiH). Under the new stewardship, the EU bank will remain committed to supporting the country’s green transition, connectivity and progress on its EU accession path to build on the achievements made during the tenure of the outgoing EIB representative, Sandrine Friscia, whose mandate ended in 2024.

Miha Švent brings nearly 30 years of experience in international development, public infrastructure financing and private business development. Prior to this appointment, he was a senior member of the EIB Advisory Department, where he led the advancement of advisory partnerships with international financial institutions, governments and development banks. Before joining the EIB, he worked for the European Bank for Reconstruction and Development, leading business advisory programmes in the Western Balkans and other regions. A Slovenian national, he holds master’s degrees from the Universities of Sheffield and Ljubljana.

EIB Vice-President Robert de Groot, who is responsible for the Western Balkans, stated: “With the European Commission and our partners in Bosnia and Herzegovina, we are supporting projects that lead to improved road safety, a more secure and diversified energy supply, better water supply across municipalities, modern healthcare facilities, and new jobs. With €3.5 billion invested so far, we have increased the country’s climate and economic resilience, while creating conditions for more successful regional and EU market integration. Now, with the EU’s Growth Plan and our new representative, we hope to propel these initiatives even further.”

Expressing his vision for the role, Miha Švent, the new EIB representative for Bosnia and Herzegovina, said: “I am honoured to take on this new role and look forward to further strengthening cooperation with all our partners in the country. Coming from the EIB advisory team, I would like to emphasise the importance of technical support in preparing strategic projects, which is often a prerequisite for accessing available EU funds, including grants under the Western Balkans Investment Framework. Therefore, as well as providing favourable financing, our priority for the country remains to strengthen the capacities of local project management teams, develop and implement new viable investments for the benefit of people and local businesses.”

Among the milestones achieved in EIB-supported projects in 2024, the Herzegovina Bridge was inaugurated last September – the largest bridge on Corridor Vc in BiH, spanning nearly 1 km across the Neretva river. Additionally, Sarajevo has new state-of-the-art trams, 40 years after they were replaced, as part of the urban transport rehabilitation project.

Background information:

About the EIB and EIB Global

The European Investment Bank is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. We aim to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.

About the EIB in BiH

The EU bank has been active in BiH since 1977. To date, it has invested €3.5 billion, mostly in support of the transportation sector and small and medium businesses. For more information regarding the EIB’s projects in BiH, please refer to: https://www.eib.org/en/projects/regions/enlargement/the-western-balkans/bosnia-herzegovina/index.htm

The EIB is one of the leading international financiers in the Western Balkans. For detailed information on the EIB’s activities in the Western Balkans, visit www.eib.org/en/publications/the-eib-in-the-western-balkans.

MIL OSI Europe News –

February 1, 2025

MIL-OSI United Nations: Activities of Secretary-General in Switzerland, 20-24 January

Source: United Nations General Assembly and Security Council

On Monday, 20 January, United Nations Secretary-General António Guterres departed New York for Switzerland. He arrived in Davos on Tuesday morning to attend the annual World Economic Forum.

On Tuesday evening, the Secretary-General participated in a leadership dialogue on digital and emerging technologies where he promoted the recently adopted Global Digital Compact as a tool that provides a new framework to help ensure that technology benefits all of humanity — guided by strong guardrails that minimize risks, while amplifying the benefits. He called on the private sector, the philanthropic community and Member States to work together, with their relative strengths, to ensure that artificial intelligence (AI) serves its highest purpose: advancing human progress, equality and dignity for all countries and all people.

The Secretary-General finished the day by delivering remarks at a dinner organized by the Global Investors for Sustainable Development.

Early on Wednesday morning, the Secretary-General delivered an address to the World Economic Forum. He outlined how climate change and ungoverned AI are two profound threats that demand much more attention and intelligent collaboration than they are receiving as they threaten to upend life as we know it.

He also used very pointed language at the parts of the private sector that are actively backtracking on climate goals. You are short-sighted and on the wrong side of history, Guterres said.

“To the corporate leaders who remain committed to climate action,” the Secretary-General went on to say, “your leadership is needed now, more than ever. Do not back down. Stay on the right side of history.”

Regarding artificial intelligence, the Secretary-General underscored how, through the Global Digital Compact, the United Nations is working with Governments, industry, and civil society to ensure that AI becomes a tool of opportunity, inclusion and progress for all people.

In remarks at a discussion afterwards with Børge Brende, President and CEO of the World Economic Forum, the Secretary-General said that we have witnessed in recent days in Gaza an example of robust diplomacy that should be recognized. (See Press Release SG/SM/22528.)

The Secretary-General also participated in the annual off-the-record “IGWELL” lunch organized by the World Economic Forum, and he also continued with a number of bilateral meetings, including Félix-Antoine Tshisekedi Tshilombo of the Democratic Republic of the Congo, the Prime Minister of the Kurdish Autonomous Province of Iraq, Masoud Barzani, and also the President of the Inter-American Development Bank, Ilan Goldfajn.

The Secretary-General also participated in the annual off-the-record IGWELL lunch organized by the World Economic Forum.

On Thursday and Friday, Mr. Guterres attended the annual retreat with his Special and Personal Representatives and Envoys before leaving Switzerland.

MIL OSI United Nations News –

February 1, 2025

MIL-OSI: Security Federal Corporation Announces Fourth Quarter and Annual Earnings and Financial Results for 2024

Source: GlobeNewswire (MIL-OSI)

AIKEN, S.C., Jan. 31, 2025 (GLOBE NEWSWIRE) — Security Federal Corporation (the “Company”) (OTCBB: SFDL), the holding company for Security Federal Bank (the “Bank”), today announced earnings and financial results for the quarter and year ended December 31, 2024.

The Company reported net income available to common shareholders of $3.0 million, or $0.94 per common share, for the quarter ended December 31, 2024, compared to $3.6 million, or $1.12 per common share, for the fourth quarter of 2023. Year-to-date net income available to common shareholders was $8.9 million, or $2.77 per common share, for the year ended December 31, 2024, compared to $10.2 million, or $3.14 per common share, for the year ended December 31, 2023. Both the quarterly and year-to-date decreases in net income available to common shareholders were primarily due to increases in the provision for credit losses and non-interest expense, as well as the payment of preferred stock dividends during 2024, which were partially offset by increases in net interest income and non-interest income.

Fourth Quarter Financial Highlights

Net interest income increased $818,000, or 7.8%, to $11.3 million as the increase in interest income exceeded the increase in interest expense.
Total interest income increased $1.9 million, or 10.1%, to $20.2 million while total interest expense increased $1.0 million, or 13.0%, to $9.0 million during the fourth quarter of 2024 compared to the same quarter in 2023. The increase in interest income and interest expense was the result of higher market interest rates and increased average interest-earning assets and interest-bearing liabilities.
Non-interest income increased $77,000, or 2.8%, to $2.8 million during the fourth quarter of 2024 compared to the same quarter in the prior year primarily due to an increase in gain on sale of loans.
Non-interest expense increased $472,000, or 5.2%, to $9.5 million during the quarter ended December 31, 2024, compared to the same quarter in the prior year primarily due to increases in salaries and expenses for employee benefits and cloud services.

	*Quarter Ended*
*(Dollars in Thousands, except for Earnings per Share)*	*12/31/2024*		*12/31/2023*
Total interest income	$	20,235	$	18,384
Total interest expense		8,982		7,949
Net interest income		11,253		10,435
Provision for credit losses		280		25
Net interest income after provision for credit losses		10,973		10,410
Non-interest income		2,847		2,770
Non-interest expense		9,523		9,051
Income before income taxes		4,297		4,129
Provision for income taxes		879		513
Net income		3,418		3,616
Preferred stock dividends		414		–
Net income available to common shareholders	$	3,004	$	3,616
Earnings per common share (basic)	$	0.94	$	1.12

Full Year Comparative Financial Highlights

Net interest income increased $2.6 million, or 6.6%, to $41.8 million when compared to the prior year primarily due to increases in interest income on loans and interest income from our overnight time deposit account with the Federal Reserve Bank, which were partially offset by an increase in interest expense on deposits.
Total interest income increased $12.3 million, or 19.0%, to $77.3 million while total interest expense increased $9.8 million, or 37.9%, to $35.5 million.
Non-interest income increased $857,000, or 9.1%, to $10.2 million primarily due to increases in gain on sale of loans, trust income and ATM and check card fee income.
Non-interest expense increased $2.2 million, or 6.2%, to $38.1 million primarily due to increases in salaries and employee benefits expense and cloud services.

	*Year Ended*
*(Dollars in Thousands, except for Earnings per Share)*	*12/31/2024*		*12/31/2023*
Total interest income	$	77,306	$	64,977
Total interest expense		35,479		25,729
Net interest income		41,827		39,248
Provision for credit losses		1,370		246
Net interest income after provision for credit losses		40,457		39,002
Non-interest income		10,247		9,390
Non-interest expense		38,140		35,914
Income before income taxes		12,564		12,478
Provision for income taxes		2,757		2,288
Net income		9,807		10,190
Preferred stock dividends		926		–
Net income available to common shareholders	$	8,881	$	10,190
Earnings per common share (basic)	$	2.77	$	3.14

Credit Quality

The Bank recorded a $1.5 million provision for credit losses on loans and a $110,000 reversal of provision for credit losses on unfunded commitments, resulting in a total provision for credit losses of $1.4 million during 2024 compared to a $601,000 provision for credit losses on loans and a $355,000 reversal of provision for credit losses on unfunded commitments, resulting in a total provision for credit losses of $246,000 during 2023.
Non-performing assets were $7.6 million, or 0.47% of total assets, at December 31, 2024, compared to $6.8 million, or 0.44% of total assets, at December 31, 2023.
The allowance for credit losses as a percentage of gross loans was 1.98% at both December 31, 2024, and 2023.

*At Period End (dollars in thousands):*	*12/31/2024*			*9/30/2024*			*12/31/2023*
Non-performing assets	$	7,636		$	6,770		$	6,825
Non-performing assets to total assets		0.47	%		0.43	%		0.44	%
Allowance for credit losses	$	13,894		$	13,604		$	12,569
Allowance for credit losses to gross loans		1.98	%		1.95	%		1.98	%

Balance Sheet Highlights and Capital Management

Total assets were $1.6 billion at December 31, 2024, an increase of $62.1 million, or 4.0%, during 2024.
Total loans receivable, net was $687.1 million at December 31, 2024, an increase of $64.6 million, or 10.4%, during 2024.
Investment securities decreased $39.9 million, or 5.7%, to $660.8 million at December 31, 2024, as maturities and principal paydowns of investments exceeded purchases during 2024.
Deposits increased $129.0 million, or 10.8%, during the year to $1.3 billion at December 31, 2024.
Borrowings decreased $77.1 million, or 45.3%, during the year to $93.0 million at December 31, 2024, primarily due to the repayment of borrowings with the Federal Reserve Bank Term Funding Program and the redemption of our 10-year subordinated debentures in the amount of $16.5 million on their call date.
Common equity book value per share increased to $31.21 at December 31, 2024, from $27.69 at December 31, 2023.

*Dollars in thousands (except per share amounts)*	*12/31/2024*			*9/30/2024*			*12/31/2023*
Total assets	$	1,611,773		$	1,576,326		$	1,549,671
Cash and cash equivalents		178,277			132,376			128,284
Total loans receivable, net		687,149			686,708			622,529
Investment securities		660,823			672,054			700,712
Deposits		1,324,033			1,257,314			1,194,997
Borrowings		92,964			120,978			170,035
Total shareholders’ equity		182,389			185,082			172,362
Common shareholders’ equity		99,440			102,133			89,413
Common equity book value per share	$	31.21		$	31.97		$	27.69
Total risk-based capital to risk weighted assets (1)		19.96	%		19.21	%		19.49	%
CET1 capital to risk weighted assets (1)		18.71	%		17.96	%		18.24	%
Tier 1 leverage capital ratio (1)		9.88	%		10.27	%		9.83	%
(1) – Ratio is calculated using Bank only information and not consolidated information

Security Federal has 19 full-service branches located in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Ridge Spring, Wagener and West Columbia, South Carolina and Augusta and Evans, Georgia. A full range of financial services, including trust and investments, are provided by the Bank and insurance services are provided by the Bank’s wholly owned subsidiary, Security Federal Insurance, Inc.

Forward-looking statements:

Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company’s mission and vision. These forward-looking statements are based upon current management expectations and may, therefore, involve risks and uncertainties. The Company’s actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety or range of factors including, but not limited to: potential adverse impacts to economic conditions in our local market area 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, a potential recession or slowed economic growth; economic conditions in the Company’s primary market area; demand for residential, commercial business and commercial real estate, consumer, and other types of loans; success of new products; competitive conditions between banks and non-bank financial service providers; changes in management’s business strategies, including expectations regarding key growth initiatives and strategic priorities; legislative or regulatory changes that adversely affect the Company’s business, including the interpretation of regulatory capital or other rules; the ability to attract and retain deposits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; adverse changes in the securities markets; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; technology factors affecting operations, including disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform critical processing functions for us; pricing of products and services; environmental, social and governance goals and targets; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; and other risks detailed in the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. These factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake any responsibility to update or revise any forward-looking statement.

The MIL Network –

February 1, 2025

MIL-OSI Security: U.S. Attorney’s Office Collects Nearly $3M for Taxpayers and Victims in 2024

Source: Office of United States Attorneys

Memphis, TN – Acting United States Attorney Reagan Fondren announced today that the U.S. Attorney’s Office for the Western District of Tennessee collected $2,932,631.57 in criminal and civil actions in Fiscal Year 2024. Of that amount, $2,635,982.75 was collected in criminal actions and $296,648. 82 was collected in civil actions.

Additionally, the Western District of Tennessee worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $23,145.23 in cases pursued jointly by these offices.

“The federal government has a responsibility to collect restitution for victims of crime. Our Criminal and Civil Divisions, including the Financial Litigation Program, work diligently to ensure that this mission is met,” said Acting U.S. Attorney Reagan Fondren.

The U.S. Attorney’s Office in Tennessee’s Western District, working with partner agencies and divisions, also collected $2,688,743 in asset forfeiture actions in fiscal year 2024. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

Several cases generated significant collection efforts in fiscal year 2024, including:

U.S. v. Rosemary Covey and Morgan Stanley, 06-cr-20408 and 24-cv-2257. Covey was convicted of Bank Fraud and Access device fraud and ordered to pay restitution in the amount of $1,034,105.49. After years of minimal restitution payments, the USAO learned of a retirement account at Morgan Stanley. The USAO filed a Writ of Garnishment on defendant’s IRA and received $73,843.54 in proceeds that were applied to the restitution.

U.S. v. Teresa T. Parsley, 07-cr-20035. Parsley was convicted of bank fraud and conspiracy to commit bank fraud. As a result, she was ordered to pay $3,829,605.29 in restitution. After she made only minimal payments, the U.S. Attorney’s Office recovered $143,845 from the proceeds of the sale of her home, which was applied to her restitution.

The U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

###

For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.

MIL Security OSI –

February 1, 2025

MIL-OSI Security: Federal Jury Convicts Getaway Driver in Four Robberies of Suburban Chicago Financial Institutions

Source: Office of United States Attorneys

CHICAGO — A federal jury has convicted the getaway driver in the robberies of three banks and a credit union in the Chicago suburbs.

TARANDLE LEE served as the driver while his friend, CHARLES LAWLER, entered the financial institutions and presented demand notes. Together the pair robbed three banks and a credit union, while Lawler also robbed an additional bank by himself.

The robberies were as follows:

Sept. 22, 2021: Lawler robbed BMO Harris Bank in Naperville, Ill.
Sept. 28, 2021: Lawler and Lee robbed Old Second Bank in Lisle, Ill.
Oct. 6, 2021: Lawler and Lee robbed Bank Financial in Westmont, Ill.
Jan. 3, 2022: Lawler and Lee robbed BMO Harris Bank in Woodridge, Ill.
April 14, 2022: Lawler and Lee robbed DuPage Credit Union in Downers Grove, Ill.

After a week-long trial in federal court in Chicago, the jury on Wednesday convicted Lee, 45, of Bolingbrook, Ill., on all four robbery counts against him. Lawler, 54, of Villa Park, Ill., pleaded guilty prior to trial to the first three robberies and stipulated to his role in the final two.

Lee faces up to 20 years in federal prison for each of the four robberies he committed, while Lawler faces up to 20 years for each of the three robberies to which he pleaded guilty. U.S. District Judge Robert W. Gettleman has not yet set Lee’s sentencing date. Lawler is set to be sentenced on March 11, 2025.

The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Downers Grove, Ill. Police Department, Bellwood, Ill. Police Department, Woodridge, Ill. Police Department, and Villa Park, Ill. Police Department. The government is represented by Assistant U.S. Attorneys Alejandro G. Ortega and Jonathan L. Shih.

MIL Security OSI –

February 1, 2025

MIL-OSI Economics: IMF Executive Board Concludes 2024 Article IV Consultation with Samoa

Source: International Monetary Fund

January 31, 2025

Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Samoa on January 16, 2025 and endorsed the staff appraisal without a meeting on a lapse-of-time basis.^{^[2]}

Samoa’s economic recovery has been remarkable. Following a 15 percent contraction over 3 years during the pandemic, GDP growth rebounded to 9.2 percent in FY2023 and accelerated further to 9.4 percent in FY2024, driven by a quick recovery in the tourism sector. Inflation has declined from double digit levels in FY2023 to 2.9 percent year-on-year in October 2024. The fiscal surplus increased further to 10.1 percent of GDP in FY2024, supported by robust grant flows, buoyant tax revenues, and restrained expenditures, including low capital spending amid capacity constraints. The current account moved to a surplus in FY2024 which, combined with continued strong grant inflows, supported a significant increase in foreign reserves.

GDP growth is projected to remain robust at 5.5 percent in FY2025, driven by an anticipated pickup in public investment and the preparations and hosting of the Commonwealth Heads of Government Meeting (CHOGM). Inflation is expected to rise moderately amid the ongoing economic recovery. While the near-term outlook remains favorable, growth is expected to slow to the historical average of around 2 percent in the medium term. Furthermore, risks to the outlook are skewed to the downside amid heightened global uncertainties and potential pressures on inflation, including from significant excess liquidity in the banking system.

Executive Board Assessment

In concluding the 2024 Article IV consultation with Samoa, Executive Directors endorsed the staff’s appraisal, as follows:

Samoa’s near-term economic outlook remains favorable. GDP growth in FY2025 is projected to remain well above pre-pandemic levels, supported by the preparations and hosting of CHOGM and the envisaged expansionary fiscal stance. Inflation is expected to rise moderately as the economic recovery continues. GDP growth is expected to converge towards the historical average of about 2 percent over the medium-term. Risks to the outlook are tilted to the downside, including from a slowdown in key trading partners amid heightened global uncertainty, as well as upside risks to inflation from external and domestic sources.

Samoa’s recent policy mix has helped build significant economic buffers but has also presented challenges. Large fiscal surpluses have improved debt dynamics, resulting in an upgrade to Samoa’s debt distress rating from high to moderate in the IMF-WB DSA, but low capital spending is undermining the economy’s productive capacity. The tight fiscal stance, coupled with high grants and remittance inflows and the exchange rate peg, has resulted in the emergence of a large current account surplus with the external sector assessed to be substantially stronger than the level implied by fundamentals and desired policy settings. The resulting large build up in foreign reserves has also created excess liquidity in the banking system.

An expansionary fiscal stance will support the economy, while fiscal reforms can improve the effectiveness of policy and mitigate risks. The focus in the near term should be overcoming capacity constraints to execute much needed public investment, including climate-related projects.

Maintaining PFM controls over the DDP, including through the election cycle, remains a priority. Improving fiscal data and implementing further PFM reforms can also help improve policy formulation, implementation, and credibility. Fully reversing the pandemic-era utility tariff cuts, while implementing any support for low-income households transparently through the budget, can help address lingering weakness in some SOEs while protecting the vulnerable.

Monetary policy normalization should continue, with an aim to guide interest rates higher. The exchange rate peg remains the appropriate nominal anchor. However, to guard against domestic inflation risks, monetary policy should aim to reduce excess liquidity to reasonable levels and push real short-term rates to positive territory.

Further strengthening financial supervision and regulation, including for PFIs, should be a priority. Financial sector risks have declined relative to the pandemic but require continued monitoring. Priorities for the banking system include operationalizing the emergency liquidity assistance framework and enhancing prudential standards. Upgrading governance and prudential regulations for PFIs is also needed to contain potential risks. Establishing an online credit registry will help advance financial inclusion.

A multi-pronged approach can help mitigate CBR pressures. Strengthening the AML/CFT legal framework and implementing effective risk-based supervision will help prepare Samoa for its APG mutual evaluation in 2027. Ensuring the timely rollout of the e-KYC facility and the National Digital ID will help improve customer due diligence. Given low ML/TF risks from remittance payments, effort should be made to streamline regulatory and supervisory requirements on both sides of main remittance corridors.

Overcoming significant structural challenges which impede the medium-term growth potential will require concerted reform efforts. Key priorities include attracting foreign investment, reducing trade facilitation costs, and mitigating the impact of the pickup in the seasonal workers program, including by enhancing human capital and raising labor force participation rates.

Table 1. Samoa: Selected Economic and Financial Indicators ^1/
					Proj.
	2020/21	2021/22	2022/23	2023/24	2024/25	2025/26	2026/27	2027/28	2028/29

Output and Inflation	(12-month percent change)
Real GDP	-7.0	-5.4	9.2	9.4	5.5	2.8	2.1	2.0	2.0
Nominal GDP	-7.5	0.0	18.0	14.9	8.7	6.0	5.2	5.0	5.1
Consumer price index (end of period)	4.1	10.8	10.7	0.8	3.5	2.6	3.0	3.0	3.0
Consumer price index (period average)	-3.0	8.7	12.0	3.6	3.1	3.0	3.0	3.0	3.0
Central Government Finances	(In percent of GDP)
Revenue and grants	36.5	38.5	34.1	36.0	33.0	32.0	31.5	31.5	31.4
Of which: Grants	6.8	9.4	4.5	6.2	4.2	4.0	4.0	4.0	4.0
Expenditure	34.7	33.1	31.0	25.9	33.1	33.5	33.4	33.5	33.6
Of which: Expense	31.3	32.2	27.5	25.7	27.9	28.3	28.2	28.3	28.2
Of which: Net acquisition of non-financial assets	3.4	0.9	3.5	0.3	5.2	5.2	5.2	5.2	5.4
Overall balance	1.7	5.4	3.0	10.1	-0.1	-1.5	-1.9	-2.0	-2.2
Gross debt outstanding	46.3	43.7	33.3	27.7	22.5	19.3	20.4	21.5	22.6
Money and Credit Aggregates	(12-month percent change)
Broad money (M2)	8.1	2.2	16.3	7.7	7.5	6.0	6.0	6.0	6.0
Private sector credit, commercial banks	1.5	0.2	-2.6	3.5	4.0	5.0	5.0	5.0	5.0
Private sector credit, other financial corporations	-0.9	4.9	2.9	8.2	…	…	…	…	…
Private sector credit, total financial system	2.0	0.6	-0.1	3.7	…	…	…	…	…
Private Sector Credit	(In percent of GDP)
Commercial banks	53.1	53.2	43.9	39.5	…	…	…	…	…
Total financial system	94.0	94.6	80.1	72.3	…	…	…	…	…
Bank Financial Soundness
Regulatory capital to risk- weighted assets, ratio	28.1	28.8	33.2	29.0	…	…	…	…	…
Non-performing loans to total gross loans, ratio	3.7	4.6	4.7	4.6	…	…	…	…	…

Balance of Payments	(In percent of GDP)
Current account balance	-14.5	-11.3	-3.3	4.0	-0.5	-1.2	-1.3	-1.6	-2.0
Merchandise exports, f.o.b.	4.1	3.8	4.6	3.5	3.4	3.5	3.5	3.5	3.7
Merchandise imports, f.o.b.	37.8	41.4	47.1	41.3	43.0	42.9	42.7	42.5	42.5
Services (net)	-3.9	-2.9	10.8	17.6	16.4	16.0	16.0	16.0	16.0
Of which: Tourism receipts	0.0	0.0	16.4	21.0	21.9	21.5	21.5	21.5	21.5
Income (net)	-1.7	-2.6	-1.3	-2.3	-2.7	-2.8	-2.8	-2.8	-2.8
Current transfers (net)	24.8	31.7	29.6	26.4	25.4	25.1	24.6	24.1	23.7
External Reserves and Debt
Gross official reserves (million U.S. dollars) 2/	288.5	303.2	401.7	494.3	503.8	506.2	523.9	542.9	557.5
(in months of next year’s imports)	7.9	6.4	8.3	9.0	8.8	8.5	8.5	8.3	8.2
External debt (in percent of GDP)	46.1	43.6	33.3	25.9	20.9	17.8	19.0	20.3	21.5

Exchange Rates
Market rate (tala/U.S. dollar, period average)	2.57	2.61	2.73	2.76	…	…	…	…	…
Real effective exchange rate	-0.5	6.4	9.2	-0.6	…	…	…	…	…
(12-month percent change) 3/

Memorandum items:
Nominal GDP (million tala)	2,169	2,170	2,562	2,943	3,200	3,391	3,568	3,748	3,938
GDP per capita (U.S. dollars)	4,136	4,032	4,498	5,070	5,474	5,728	5,945	6,160	6,440

Sources: Data provided by the Samoan authorities; and IMF staff estimates and projections.
1/ Fiscal years July-June.
2/ Incorporates August 2021 SDR allocation.
3/ Increase signifies appreciation.

[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

[2] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions.

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MIL OSI Economics –

February 1, 2025

MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Samoa

Source: IMF – News in Russian