MIL-OSI Banking: [Interview] A New and Enhanced Gallery Experience: How Samsung Transformed Photo Searching and Video Editing With the Galaxy S25 Series

Source: Samsung

Searching for one specific photo in an endless gallery on a smartphone can often be time-consuming. Editing multiple videos one by one may feel tedious and repetitive as well.

The Galaxy S25 series uses vision AI technology and the understanding of natural language to address these issues and provide a more intuitive mobile experience for users in their daily lives. When searching for a photo in their gallery, users can enter keywords that describe the situation — such as the date or locality, any objects present, any actions taking place and so forth — and Galaxy AI will analyze them to find matching photos. In addition, the flagship series boasts Auto Trim, a new video editing feature that can automatically select key segments from multiple videos and edit them into a separate video.

These features are the result of advanced research in visual technology and close collaboration. Samsung Newsroom met with developers from the Visual Technology Team of Samsung Research and the Visual Solution Team of the Mobile eXperience (MX) Business at Samsung Electronics to learn how the company developed even smarter photo and video experiences for Galaxy users.

▲ (From left) Wonwoo Lee, Inho Choi, Hongpyo Lee and Seonghwan Kim

Labeling Every Element in a Photo With AI-Powered Classification
Smartphones store a massive number of photos, with the average user having several thousand — or even tens of thousands — on their devices. As the number grows, it becomes increasingly difficult to find a specific photo right away. On the Galaxy S25 series, the Gallery app automatically tags and categorizes various elements in photos such as objects, people and localities, allowing users to quickly and accurately find the desired images. This is incredibly convenient for users who want to relive past memories or retrieve important information fast.

Keeping in mind that an effective search depends on classification, the developers tripled the number of tag types compared to that of the previous Galaxy series, fine-tuning photo subject recognition and labeling capabilities in the Galaxy S25 series. In addition, they expanded the scope of clustering, a technique that groups data for people recognition.

“By developing an image analysis engine and using zero-shot technology, we improved the performance so that the Galaxy S25 series can recognize object data it encounters for the first time,” said Hongpyo Lee from the Visual Technology Team at Samsung Research. “For people, we expanded analysis beyond facial features to include clothing, time and location, making it easier to group photos of the same person.”

▲ Gallery Search

Finding Photos With Conversational, Natural Language Through Gallery Search
Samsung also focused on enhancing natural language search performance in the Gallery. The company developed a search model that reflects frequently used phrases and various application cases, allowing users to find the photos they want using natural, conversational sentences instead of word-based searches.

“We leveraged a vision-language model that learns by associating images with text and used generative AI to automatically generate a wide range of sentences that users might enter,” Lee shared. “We also optimized and compressed the search model so it runs quickly on-device.”

“Building on our previous research, we successfully applied natural language processing capabilities to our products, including a context-aware image analysis engine and a large language model (LLM),” said Inho Choi from the Visual Solution Team of Samsung Electronics’ MX Business.

The developers also worked to deliver unbiased and more accurate search results. “We wanted to anticipate various usage scenarios and identify potential issues in advance so that malicious search queries wouldn’t lead to inaccurate results,” Choi explained. “Building a database of negative words, profanity and neologisms, and then conducting user tests to improve search accuracy was both the most challenging and rewarding part of the process.”

▲ Inho Choi from the MX Business and Hongpyo Lee from Samsung Research

Editing Multiple Videos at Once With Auto Trim
Video editing is also becoming an increasingly important part of the gallery experience. While video is a popular form of media consumption, having video editing tools readily available and using them with ease is often not as simple as it seems. To address this, the Galaxy S25 series introduces a feature that makes editing much faster and more convenient through enhanced AI-powered video analytics. The Auto Trim feature extracts key scenes from multiple videos of the user’s choice to create a new short-form video.

It was important for Auto Trim to be able to quickly analyze videos up to 90 minutes long, generate an edited video and adjust the length of that new video. The developers achieved this through close collaboration, seamlessly integrating Samsung Research’s advanced technological expertise with the MX Business’ mobile optimization capabilities.

“Existing video analytics technologies have limitations, such as large model sizes, slow processing speeds and the uniform selection of key video segments,” said Seonghwan Kim from the MX Business’ Visual Solution Team. “We optimized the Galaxy S25 series’ video processing performance by testing and verifying multiple candidate solutions to deliver a fast and easy editing experience based on on-device AI.”

“We’ve introduced a feature that enables users to effortlessly identify key moments in videos, demanding significantly more data processing than photos, and tailor the duration of these edited segments to their preferences” explained Wonwoo Lee from Samsung Research’s Visual Technology Team.

“Getting Galaxy AI to identify highlights in videos with a level of sensitivity comparable to that of humans was a challenge, but by establishing the standards together, Samsung Research and the MX Business were able to significantly improve overall functionality.”

▲ Auto Trim

From Analyzing to Generating: Vision AI and Its Endless Possibilities
Samsung Electronics is researching a wide range of vision AI technologies, ranging from filming and editing technologies for smartphones to multimodal interaction technologies used in augmented reality (AR) and virtual reality (VR). The core of this research is the ability to quickly and accurately analyze subjects such as people and animals, as well as their surroundings, in videos on-device, and to recognize the meaningful moments in those videos. Through vision AI technology, Samsung aims not only to evolve typical smartphone features like shooting and viewing photos and videos, but also pioneer novel ways to consume content.

“We’re actively utilizing AI technology for fast, easy and high-quality editing in the video domain,” said Kim. “Samsung will focus on further developing the technology so that AI can better understand the context of video content, helping users reduce editing time effectively and generate edited videos that reflect the user’s intent — all without requiring professional editing skills.”

“By continuously advancing video analytics technology, we aim to develop even more innovative features that leverage the power to understand video content — such as video search, intelligent video editing effects and beyond,”said Wonwoo Lee. “Samsung will strive to develop cutting-edge vision AI technology that can be applied across a broad range of use cases.”

▲ Seonghwan Kim from the MX Business and Wonwoo Lee from Samsung Research

Gallery Search and Auto Trim are prime examples of how Galaxy AI enhances everyday life. As developers continue to advance the company’s image and video analytics technology, Samsung Electronics will deliver an expanding range of new experiences that make it easier and more intuitive for users to find and capture life’s key moments.

MIL OSI Global Banks –

April 30, 2025

MIL-OSI Banking: Samsung Electronics Announces First Quarter 2025 Results

Source: Samsung

Samsung Electronics today reported financial results for the first quarter ended March 31, 2025.

The Company posted KRW 79.14 trillion in consolidated revenue, an all-time quarterly high, on the back of strong sales of flagship Galaxy S25 smartphones and high-value-added products. Operating profit increased to KRW 6.7 trillion despite headwinds for the DS Division, which experienced a decrease in quarterly revenue.

The Company has allocated its highest-ever annual R&D expenditure for 2024, and in the first quarter of this year, it has also increased its R&D expenditure by 16% compared to the same period last year, amounting to 9 trillion won.

Despite the growing macroeconomic uncertainties due to recent global trade tensions and slowing global economic growth, making it difficult to predict future performance, the Company will continue to make various efforts to secure growth. Additionally, assuming that the uncertainties are diminished, it expects its performance to improve in the second half of the year.

Semiconductors Projected To Continue Growth by Meeting Evolving AI Needs
The DS Division posted KRW 25.1 trillion in consolidated revenue and KRW 1.1 trillion in operating profit for the first quarter.

For the Memory Business, revenue was driven by expanded server DRAM sales and the addressing of additional NAND demand amid a perceived bottoming out of the market price.

However, overall earnings were impacted by the erosion of average selling price (ASP), as well as a decrease in HBM sales due to export controls on AI chips and deferred demand in anticipation of upcoming enhanced HBM3E products.

In Q2 2025, the Memory Business anticipates robust demand for AI servers and will therefore seek to strengthen our position in the high-value-added market via our server-centric portfolio, along with a ramp-up of the enhanced HBM3E 12H to meet initial demand. For NAND, the Memory Business seeks to enhance cost competitiveness by accelerating the transition to 8th Generation V-NAND for all applications.

In H2 2025, AI-related demand is expected to remain high in conjunction with the launch of new GPUs. Therefore, the Memory Business will expand the sales of high-value-added products, including enhanced HBM3E 12H products and high density DDR5 modules of 128GB or higher.

In the mobile and PC markets, on-device AI is expected to proliferate, so the Memory Business will proactively respond to this shift in the business environment with its industry-leading 10.7Gbps LPDDR5x products.

Earnings at the System LSI Business improved modestly, due to an increased supply of high-resolution sensors and LSI products. This improvement came despite a sluggish smartphone market and the delayed adoption of the Company’s flagship system-on-a-chip (SoC).

In Q2 2025, the System LSI Business will maintain steady revenue by gaining SoC adoption by a major customer for new flagship models and capitalizing on the growing adoption of 200-megapixel sensors.

In H2 2025, the System LSI Business will expand its flagship SoC supply, proactively address demand for high-resolution main and telephoto camera sensors and expand its automotive sensor portfolio.

Earnings for the Foundry Business were muted due to sluggish seasonal mobile demand, inventory adjustments and stagnant fab utilization. However, the Business focused on the 2nm Gate-All-Around (GAA) process, improving yields and stabilizing the line while keeping the program on schedule, while also securing additional sub-5nm orders, specifically the 2nm and 4nm nodes for AI and HPC applications.

In Q2 2025, the Business will stabilize its 2nm process production and drive earnings improvement by actively addressing strong mobile and automotive demand in the United States. Looking ahead to H2 2025, the Foundry Business aims to start 2nm mass production and secure major 2nm orders and strengthen its specialty process portfolio on mature nodes.

SDC Aims To Navigate Challenges and Drive Growth With Differentiated Offerings
Samsung Display Corporation (SDC) posted KRW 5.9 trillion in consolidated revenue and KRW 0.5 trillion in operating profit for the first quarter.

For the mobile display business, SDC reported declining profits QoQ due to seasonality. The results of the large display business have improved via the launch of new QD-OLED monitor products for major clients.

In Q2 2025, the mobile display business maintains a conservative outlook on earnings while pursuing the stable supply of new products such as foldables. For the large display business, demand for gaming monitors is expected to grow due to the upcoming launches of new products.

In H2 2025, SDC aims to grow the mobile display business sales through differentiated technologies and products amid rising market uncertainties. For the large display business, SDC will strengthen its presence in both B2C and B2B monitor markets with diverse product lineups.

MX Achieves Revenue Growth, Continues To Expand AI Capabilities
The MX and Networks businesses posted KRW 37 trillion in consolidated revenue and KRW 4.3 trillion in operating profit for the first quarter.

The MX Business experienced QoQ growth in both revenue and operating profit thanks to the strong sales of its Galaxy S25 series, which features an advanced Galaxy AI experience. Enhanced cost competency and price declines for some components also contributed to solid double-digit profitability.

In Q2 2025, the MX Business plans to sustain flagship-centric sales amid weak seasonality by successfully launching the Galaxy S25 Edge. It will also expand its AI smartphone lineup through the introduction of “Awesome Intelligence” to the Galaxy A series.

In H2 2025, the MX Business will strengthen its foldable lineup by offering a differentiated AI user experience. In addition, the Business will launch new ecosystem products with enhanced AI and health capabilities, and explore new product segments such as XR.

Visual Display Posts Solid Performance, Strengthens Advanced AI Features
The Visual Display and Digital Appliances businesses posted KRW 14.5 trillion in consolidated revenue and KRW 0.3 trillion in operating profit in the first quarter.

The Visual Display Business recorded solid sales of strategic products such as Neo QLEDs, OLEDs, and large models of 75 inches and over, while price increases and material cost reductions resulted in improved QoQ profitability.

In Q2 2025, the Business intends to expand TV sales with its 2025 AI TV lineup and the integration of advanced AI functions.

In H2 2025, the Business will focus on capturing peak season demand by strategic collaboration with distributors, based on an enhanced AI TV lineup.

MIL OSI Global Banks –

April 30, 2025

MIL-Evening Report: Locked up for life? Unpacking South Australia’s new child sex crime laws

Source: The Conversation (Au and NZ) – By Xanthe Mallett, Criminologist, CQUniversity Australia

Melnikov Dmitriy/Shutterstock

It’s election time, which means the age old “tough on crime” rhetoric is being heralded by many politicians aiming to score votes.

Opposition leader Peter Dutton is pushing for a national public sex offender register. Currently only Western Australia has a registry that is open to the public.

In South Australia, Premier Peter Malinauskas brought in tougher child sex offender laws earlier this week.

What are these new laws in SA?

Under these new laws, serious child sex offenders are to be permanently locked up or electronically monitored, if they reoffend.

Automatic indefinite detention is a significant change.

Previously, the South Australian attorney-general could apply to the Supreme Court to request an offender be indefinitely detained, if the offender was considered to remain a danger to children and could not be rehabilitated.

The courts would then decide if they would grant the request, basing their decision on medical and other expert evidence.

The changes in SA mean those found guilty of a second serious sexual offence against anyone younger than 17 now receive automatic indefinite detention.

To be considered for release under the new law, an offender needs to show they can control their sexual instincts – so the onus is on them to prove they are not at risk of reoffending.

To achieve this, two court-selected psychologists would have to provide reports demonstrating the offender was both willing and able to resist committing further sex offences.

And if they are ever released, they will be electronically monitored for the rest of their lives.

In addition, registered child sex offenders would be banned from working with anyone under 18.

The new law also strengthens “Carly’s Law”, which focuses on reducing the sexual grooming of children online by adult predators.

Inconsistencies across Australia

The age of legal consent is 16 across Australia, except SA and Tasmania, where it is 17.

In 2024, an Australian Institute of Criminology report highlighted many of the inconsistencies across the country, including terminology and definitions of sexual offences, despite efforts to achieve national regularity.

Each state and territory approaches the problem of child sexual abuse differently.

In NSW, for example, sentencing for child sexual offences has increased over time. This reflects societal expectations given what we know now about the long-term, traumatic consequences of victimisation.

However, one consideration in sentencing in NSW is whether the sentence could have a “crushing” effect on the offender, and whether they may be entitled to an “element of mercy”.

Certainly, a full life sentence is a significant departure from this position.

Why now?

There is little doubt this is a political move, as these changes were first promised by Labor in the build-up to the 2022 SA election.

Then in January 2025, Labor announced it planned to introduce them in March – right before the federal election.

On the face of it, toughening laws aimed at reducing sexual violence against children is a good thing. No one would argue.

However, the legislation has been fast-tracked in the wake of a number of cases where those previously convicted of a sexual offence against a child reoffended.

One such case is Dylan Lloyd, who is alleged to have assaulted a 12-year-old girl while she travelled alone on a train. Lloyd had previously been convicted of assaulting a 10-year-old girl in 2021, and since then more alleged victims have come forward to police.

Cases such as Lloyd’s are preventable, as in this case Lloyd should still be imprisoned. This is one step forward. But consistency across states is needed and the long-term consequences need considering more fully.

Whether these laws will have the desired deterrent effect has not been answered.

We need to ensure personal and societal factors affecting crime rates, and which influence peoples’ attitudes and behaviours, are not overlooked.

Will the laws be good for the community?

These changes do have the potential to have a meaningful impact, but changing the behaviour of potential offenders is far more complex.

Potential offenders usually don’t consider the law. At a micro level, their behaviour is most affected by biological and psychological factors, including alcohol, drug addiction and mental health issues, as well as social and environmental factors.

In addition, there are numerous human rights and constitutional issues with permanent detention or lifelong monitoring, and the SA government may be walking into a legal minefield now they have removed the possibility of parole.

It would be better to allow judges options for discretion, as the context in which the offending happened is crucial in determining the likelihood of someone being successfully rehabilitated.

Mandatory full life sentences ignore the fact many sex offenders can be successfully rehabilitated.

One study in Queensland, which considered local and global evidence, indicated sexual recidivism can be significant reduced when offenders complete sex offender treatment programs.

Although it costs money to run these programs, the savings outweigh the costs of ongoing incarceration – particularly if we consider indefinite detention.

Black-and-white laws with little room for movement produce unintended and harmful outcomes.

It will be interesting to see how the new laws in SA play out in court and if any other states and territories follow suit.

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

– ref. Locked up for life? Unpacking South Australia’s new child sex crime laws – https://theconversation.com/locked-up-for-life-unpacking-south-australias-new-child-sex-crime-laws-255429

MIL OSI Analysis – EveningReport.nz –

April 30, 2025

MIL-OSI Submissions: Energy – The U.S.-Africa Energy Forum (USAEF) to Spotlight African Energy Opportunities, U.S.-Africa Collaboration

SOURCE: Energy Capital & Power

U.S. and African energy leaders will gather at the U.S.-Africa Energy Forum in Houston this August to drive investment, forge strategic partnerships and deepen American engagement in key African markets

HOUSTON, United States of America, April 29, 2025 – The U.S.-Africa Energy Forum (USAEF) returns to Houston with a bold agenda focused on catalyzing American investment and innovation across Africa’s most dynamic energy markets. Designed as a high-impact platform for government and private sector dialogue, USAEF brings together African energy stakeholders and leading U.S. companies to accelerate project development, capital deployment and technology transfer across the continent.

The forum is set to open with a High-Level U.S.-Africa Energy Dialogue, bringing together senior policymakers, energy ministers and private sector leaders to set the tone for deeper cooperation and alignment on mutual priorities. This flagship session will be followed by a forward-looking panel discussion on Private Equity Driving a New Wave of African Business, exploring how U.S.-based investment firms are shaping Africa’s next chapter of energy growth. The agenda will also spotlight frontier opportunities; overlooked plays across the Middle East, North Africa and sub-Saharan Africa; and bold strategies to grow the U.S. footprint in Africa’s critical minerals and energy assets.

Libya, the Republic of Congo, Nigeria and the Democratic Republic of the Congo (DRC) will take center stage during a series of Country-Focused Sessions highlighting strategic priorities, reform agendas and concrete investment opportunities. African governments and national oil companies will present their latest projects and policy frameworks, while American firms such as Chevron, ExxonMobil, SLB and ConocoPhillips will explore avenues to deepen partnerships in established markets like Nigeria and Libya, and tap into emerging opportunities in the Republic of Congo and the DRC.

With major reforms and investment drives underway, these markets are fast becoming focal points for American engagement. Libya, North Africa’s powerhouse, has launched a 22-block licensing round as it works to revitalize its upstream sector and reach a production target of 1.6 million barrels per day (bpd), alongside multi-billion-dollar gas monetization and export projects.

The Republic of Congo is aiming to scale production to 500,000 bpd, while advancing gas monetization under a new Gas Master Plan that invites international collaboration. In the DRC, reforms to the hydrocarbons code and a potential minerals-for-security agreement with the U.S. signal new entry points for American firms. Nigeria continues to stand out as a top-tier investment destination, targeting $10 billion in deepwater gas projects through new tax incentives and a planned auction of undeveloped blocks to boost exploration and production.

With participation from key industry players and high-level delegations, USAEF affirms a shared commitment by African stakeholders to attract American capital and technology to bolster their respective energy markets. U.S. companies, in turn, are ready to expand their footprint, forge new alliances and unlock the full potential of Africa’s energy future.

For tickets, sponsorship opportunities and more information, please contact sales@energycapitalpower.com. Join us in Houston this August to connect with the leaders shaping Africa’s energy landscape and experience the momentum that drives ECP’s events worldwide.

MIL OSI – Submitted News –

April 30, 2025

MIL-OSI China: China Chamber of Commerce to Africa established to foster broader Sino-African cooperation

Source: People’s Republic of China – State Council News

China Chamber of Commerce to Africa established to foster broader Sino-African cooperation

ADDIS ABABA, April 29 — The China Chamber of Commerce to Africa (CCCA) was officially launched Monday in the Ethiopian capital of Addis Ababa, with the aim of fostering broader Sino-African cooperation and contributing to a closer China-Africa community with a shared future.

Comprising 15 founding members, the CCCA spans a wide range of sectors, including agriculture, construction, manufacturing, telecommunications, energy, and healthcare. With membership expected to grow across both traditional and emerging industries, the chamber aims to strengthen economic ties and facilitate China-Africa economic cooperation.

Addressing the launching event, Hu Changchun, head of the Chinese Mission to the African Union (AU), said the newly-launched chamber, under the mission’s guidance, will serve as a bridge to promote shared development between China, Africa, and the broader Global South.

“The founding of the chamber will create better synergies for China-Africa economic cooperation, and enable our friendship to grow even stronger. I sincerely hope that the chamber will bring more members on board, ride the tide with all stakeholders, and contribute to strengthening economic and trade cooperation between China and Africa,” Hu said.

According to data from the Chinese Mission to the AU, Chinese companies have long contributed to Africa’s development, building approximately 100,000 km of roads, 10,000 km of railways, 1,000 bridges, and 100 ports, while generating over 1 million jobs across the continent. These efforts have significantly improved logistical connectivity, integration of regional value chains, and people’s livelihoods on the continent.

Moussa Mohamed Omar, deputy chief of staff of the AU Commission, said the establishment of the CCCA under the China-Africa strategic partnership symbolizes the win-win cooperation built on mutual respect and concrete results.

Noting that Chinese companies are actively engaged in various development sectors in Africa, including infrastructure, energy, digital infrastructure, and logistics sectors, Omar said Chinese enterprises are significantly contributing to Africa’s development and employment creation.

Wu Jiuyi, secretary-general of the CCCA and deputy general manager of China Civil Engineering Construction Corporation Ethiopia Branch, said the chamber is rooted in Africa to serve enterprises, foster partnership, and promote shared prosperity.

“Today’s Africa is a land of boundless opportunities, and China stands as its most steadfast partner. We warmly welcome more outstanding Chinese enterprises to join the chamber and look forward to working with African partners to build consensus, pool strengths, and write a new chapter in China-Africa friendship,” he said.

MIL OSI China News –

April 30, 2025

MIL-OSI USA: Cantwell Reintroduces Bipartisan Bill to Build More Affordable Housing Nationwide

US Senate News:

Source: United States Senator for Washington Maria Cantwell
04.29.25
Cantwell Reintroduces Bipartisan Bill to Build More Affordable Housing Nationwide
Proposed expansion of the Low-Income Housing Tax Credit would result in approximately 53,100 additional housing units and 80,400 jobs in WA over 10 years
WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), senior member of the Senate Finance Committee and ranking member of the Senate Committee on Commerce, Science, and Transportation, reintroduced the Affordable Housing Credit Improvement Act, a bipartisan bill that would expand the existing Low-Income Housing Tax Credit (LIHTC) program and increase the number of affordable homes built in the United States.
“Housing inflation is up 4% over the past year nationally and 4.5% in the Pacific Northwest – and that was before homebuilders reported an additional 5.5% increase in costs due to tariffs this year. We need to do more to lower housing costs for everyone. Expanding and improving the Low-Income Housing Tax Credit will do just that by making it more affordable to build homes and lower rents,” Sen. Cantwell said.
“It’s time for Congress to meet the housing crisis with the bold solutions it demands and that starts with increasing housing supply. Our bill will deliver some much-needed relief to families by supporting existing, successful federal housing programs and building over one million new units of affordable housing. I am all in to bring down costs and make housing more affordable for everyone no matter your zip code,” said U.S. Senator Ron Wyden (D-OR).
The bill was co-introduced by Sens. Cantwell and Todd Young (R-IN). It has 30 total original cosponsors, with an equal split of Democrats and Republicans.
Since 1986, the Housing Credit has paid for 90% of the federally-funded affordable housing construction across the country, and has financed 4 million affordable homes, including more than 100,000 in Washington state. The National Association of Homebuilders (NAHB) reports that building materials have increased in cost by an average of 5.5% due to enacted or anticipated tariffs since January 2025, underscoring the urgent need for this legislation. Moreover, according to NAHB, 60% of builders reported that as a results of tariffs, their suppliers have already increased or announced increases of material prices – with tariffs increasing the cost of a typical home by $10,900.
The bill would support the financing of 53,100 new affordable homes in the State of Washington by:
Increasing the amount of credits allocated to each state. The legislation would increase the number of credits available to states by 50 percent for the next two years and make the temporary 12.5 percent increase secured in 2018 permanent—which already helped build more than 59,000 additional affordable housing units nationwide. According to the Washington State Housing Finance Commission, this change would finance three additional shovel-ready housing properties in Washington this year – one in King County, one in a non-King County metro area, and one in a non-urban county.
Increasing the number of affordable housing projects that can be built using private activity bonds. This provision would stabilize financing for workforce housing projects built using private activity bonds by decreasing the amount of private activity bonds needed to secure Housing Credit funding. As a result, projects would have to carry less debt, and more projects would be eligible to receive funding. According to the Washington State Housing Finance Commission, this improvement will double the number of affordable homes that can be built with this incentive. This would immediately green-light an additional 3,000 shovel-ready housing units in Washington evenly split between King County and the rest of the state.
Improving the Housing Credit program to better serve at-risk and underserved communities. The legislation would also make improvements to the program to better serve veterans, victims of domestic violence, formerly homeless students, Native American communities, and rural Americans.
The bill would additionally generate 80,400 jobs and $9.07 billion in wages and business income in the State of Washington over the next decade.
Sen. Cantwell has long advocated for the need to increase the availability of affordable housing and is the leading LIHTC advocate in the Senate. She previously introduced the Affordable Housing Credit Act in 2021 and in 2023, along with Rep. Suzan DelBene (D-WA, 01). Sen. Cantwell led efforts to build a bipartisan, bicameral coalition in support of that legislation. Last Congress, Sen. Cantwell’s legislation was joined by 308 Members – 58% of the entire Congress – including 170 Democrats and 139 Republicans.
Since its creation, the Housing Credit has helped build or restore more than 100,000 affordable homes in the State of Washington. The economic activity that the credit generated has supported nearly 170,000 jobs and generated more than $19 billion in wages.
Photos of Sen. Cantwell visiting housing developments across the State of Washington funded by the Low-Income Housing Tax Credit can be found HERE.

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: Cantwell Statement on Trump’s First 100 Days in Office

US Senate News:

Source: United States Senator for Washington Maria Cantwell
04.29.25
Cantwell Statement on Trump’s First 100 Days in Office
WASHINGTON, D.C. – Today marks 100 days since President Donald Trump took office. U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation, and senior member of the Senate Finance Committee, released the following statement:
“The first 100 days of President Trump’s Administration have been so chaotic it’s hard to pick what actions will cause the most lasting damage.
“Was it unilaterally launching chaotic trade wars across the globe with tariffs that harm American businesses and consumers?
“Was it gutting the workforce at NOAA, where dedicated staff help us track climate change, monitor weather patterns, and fight devastating wildfires?
“Was it ignoring due process — illegally detaining and deporting U.S. citizens and lawful permanent residents of the United States?
“Was it slamming the brakes on vital scientific research that is helping us cure cancer and prevent another pandemic, while elevating a science denier to lead HHS?
“Was it attacking the independent judiciary and threatening the rule of law?
“Was it dismantling the Department of Education, which will have devastating impacts for students and schools across Washington state?
“I know what we didn’t see: A single action that would lower costs for Americans.”

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: Murphy Op-ed For The Roosevelt Institute: A Good Life Starts In A Good Hometown

US Senate News:

Source: United States Senator for Connecticut – Chris Murphy

April 29, 2025

WASHINGTON—U.S. Senator Chris Murphy (D-Conn.) on Tuesday authored an op-ed for the Roosevelt Institute examining how the American economic system’s consolidation of corporate power and economic opportunity in a handful of big cities has hollowed out local communities and disconnected millions of people from the relationships that give life meaning. Murphy argues that progressives must start rebuilding power, connection, and identity in the neighborhoods and hometowns where most Americans actually live and stand up to concentrated corporate power.
“Study after study finds that, far more than money or career success, the quality of our relationships makes the most impact on our likelihood to feel happy and fulfilled. Those relationships start in our hometowns. At their best, the physical places we live—the town, the neighborhood, the block—are places where people are embedded in a thick web of ties to family and friends that helps form the core of their identity and builds community,” Murphy wrote. “The world is becoming more connected, and lots of opportunity comes with having immediate access to anything and everything, anywhere and everywhere. But it can also feel overwhelming to have no limits on your existence. The flood of never-ending inputs can be dizzying and disabling. Being identified as a “global citizen”—one grain of sand in a desert of 8 billion—feels empty and meaningless to many.”
Murphy argued that most people want the ability to live a meaningful and secure life in their hometowns, without having to relocate to a few major cities to find success: “Most Americans are not willing to simply give up their local identity and become citizens of the world. And not everyone sees value in chasing professional achievement across the country. Many Americans say our culture should define success as building a decent life in the place you were raised—the place your family has roots—rather than being forced to move to find career reward. More than half of young adults live within 10 miles of where they grew up, but increasingly the base of the progressive movement is higher income and more mobile. As a result, we’ve become disconnected from what most Americans want—an economy and culture built around thousands of independent healthy places, rather than a nationalized economy and culture where opportunity is concentrated in a few major cities.”
Murphy underscored how concentrated corporate power is destroying the social and economic ties that hold communities together: “Rebuilding local communities is less about turning the dials of government spending and more about unrigging the system of concentrated economic power that holds them down. Big companies are easily able to move money, markets, and jobs overseas, giving them an advantage over workers and families who cannot move so readily. Business leaders who use accounting gimmicks to raise profits are not focusing on the innovation and investment that creates good jobs and raises living standards. Monopolies drive the small shops that help form local commercial identity out of business. Big Tech firms tilt their platforms to accumulate more power and profits at the expense of small business, in-person connection, and local journalism. Corporations fight tooth and nail to keep local workers from forming connection through labor unions.”
Murphy concluded: “Where are we left when so many Americans feel they have to choose between their hometowns and economic opportunity and increasingly cannot find connection through a meaningful relationship to the place they live? Americans have fewer friends than we used to. We spend more time alone. Roughly half of American adults say they are lonely. We trust each other less than before, and we are losing faith in each other as partners in democratic governance. In 1997, Pew found that 64 percent of Americans trusted the wisdom of the American people to make political choices; only 39 percent felt the same by 2019. Creating a society where more Americans can live a good life starts by rebuilding power, vitality, connection, and unique identity at the neighborhood and community level. That means standing up to concentrated power and instead siding with the people in neighborhoods and towns across America who are working to build a better life for their families and communities.”
Read the full op-ed HERE.

MIL OSI USA News –

April 30, 2025

MIL-OSI New Zealand: Appointments – Banking Ombudsman Scheme gets three new directors

Source: Banking Ombudsman Scheme

The Banking Ombudsman Scheme is adding another director to its board and at the same time replacing two departing directors.

Hon Heather Roy will become the board’s second independent director – along with chair Miriam Dean – following the recommendation of a recent review to add a sixth member to help ensure continued confidence in the impartiality of the scheme. The scheme’s constitution was amended late last year to enable the establishment of the new role.

Simultaneously, Professor Jodi Gardner is replacing Kenina Court as one the board’s two consumer representatives, while Westpac Chief Executive Catherine McGrath takes over from ANZ Chief Executive Antonia Watson as one of the board’s two banking representatives.

Ms Roy has been a professional director since leaving Parliament, where she served as Minister of Consumer Affairs in 2011. She was chair of Utilities Disputes Ltd until 2024.

Professor Gardner is the Brian Coote Chair in Private Law at the Auckland Faculty of Law and her research focuses on the relationship between private law and social policy. She previously worked as a consumer advocate and a community lawyer specialising in consumer protection.

Ms McGrath has more than 25 years’ experience in financial services.

Ms Dean said the new additions would bring a wealth of expertise in governance, consumer rights, frontline banking and legal scholarship to the board’s decision-making.

“The sector faces a variety of challenges, scam prevention, responding to financial hardship, access to services, open banking and new technology, and I am confident the new line-up will help the scheme contribute to resolving these challenges.”

She said the three new members would start their duties at the next board meeting this month.

About the scheme

We offer a free and independent dispute resolution service. We look into complaints by customers about their banks. Sometimes we make formal decisions, but often we facilitate outcomes agreeable to the customer and the bank. We also offer information and guidance on banking matters.

MIL OSI New Zealand News –

April 30, 2025

MIL-OSI New Zealand: Consumer NZ is seeking nominations for businesses that are the worst of the worst

Source: Consumer NZ

The Yeah, Nah Awards spotlight businesses that have excelled at letting consumers down. It’s accepting public nominations until 30 June.

Acting head of research and advocacy, Jessica Walker, says the Yeah, Nah Awards Are about recognising the worst products and services in Aotearoa and putting pressure on poor-performing brands and companies to lift their game.

“Been ripped off, lied to or burned by a business? We want to hear about it,” says Walker.

“The Yeah, Nah Awards give people a chance to get those grievances off their chests and, more importantly, demand that businesses pull their socks up by calling them out for their bad behaviour.”

Walker reflects on last year’s awards, noting the ‘winners’ received awards across a wide range of issues, like shrinkflation, greenwashing and overpriced products that underwhelm.

“New Zealand consumers put up with a lot,” she says.

This year, the Consumer NZ team has noticed an increase in issues like dodgy sales strategies and manipulative marketing ploys.

“It seems everyone has experienced the frustration of signing up to a free trial only to be stuck with a subscription they don’t know how to cancel.”

Walker warns of ‘mistake’ marketing, too.

“That’s where a company’s social media account makes an announcement that, for example, they’re going into liquidation or their number-one-selling product is being discontinued. Then, after their customers rush to stock up, they find out it was a hoax.

“That’s not on. That’s the kind of cooked behavior the Yeah, Nahs is here to call out.”

Who was bad enough to win last year?

“Last year, Pam’s Value cream style corn won the Less Isn’t More Award for containing less than half corn. We get complaints about shrinkflation all the time – it really grinds peoples’ gears.”

The advocacy organisation presented the Polished Turd Award to two brands of dog poo bags for their misleading claims about being compostable and “a more sustainable alternative”. Consumer’s investigation found it’s much more likely that the doggy doo and these bags are headed straight for landfill – rather than peoples’ backyard compost bins.

Air New Zealand won the Taken for a Ride Award for cashing in on demand during the school holidays.

“After analysing over 600 flights across an 18-week period, we found Air New Zealand’s flight prices go up significantly more compared with Qantas at times of peak demand. We think our national carrier could be giving families a better deal over the school break.”

One model of Bosch heat-pump dryer received the Avoid at all Costs Award from Consumer’s test team.

“Our test team slapped this dryer with a ‘do not buy’ label for creating an appliance that takes more than double the time to dry a load than other cheaper driers.”

Across the 178 businesses Consumer looked at over the last year, Westpac’s life insurance customers had the lowest level of satisfaction.

“Westpac’s life insurance customers expressed a 33% customer dissatisfaction rate, which works out at one in three customers reporting experiencing a terrible time. As a result, Westpac won the Grave Disappointment Award.”

Dob in products and services that have let you down by June 30!

Walker is keen to remind New Zealanders that the Yeah, Nahs are about complaining, yes, but they’re also about demanding better too.

“We’re not out here trying to ruffle feathers for the sake of it. Our members get trusted, independent advice about the best in class – from recommended products to top-performing services.

“Ultimately, you deserve to get good, fair, honest value from the things you spend your money on – whether you’re buying the essentials or the nice-to-haves. And that’s what the Yeah, Nahs, and Consumer NZ, are all about.”

Walker says her team will be accepting nominations from the public via Consumer’s website until Monday 30 June: https://consumernz.cmail20.com/t/i-l-fhjijlk-ijjdkdttjk-n/

“You might have a real bee in your bonnet about your favourite brand of oats having recently shrunk in size. Or it could be that online subscription you’ve been trying to cancel for months now.

“Whatever bewildering, baffling, doozy of a time you’ve had, tell us, and our team of experts and investigators will determine which nominees are worthy of the most quintessentially New Zealand expression of dissatisfaction: a Yeah, Nah.”

Winners will be announced in November 2025.

Notes

A team of Consumer investigators will determine which nominees are bad enough to be good contenders based on the awards’ judging criteria.

To be a contender for a Yeah, Nah Award, a product, business or service must meet one or more of the following criteria:

Failing a standard
Stinging customers with hidden charges
Using false claims or broken promises
Selling products or services that aren’t up to scratch or good value for money
Using unclear messaging that causes consumer confusion, frustration or just plain outrage.

MIL OSI New Zealand News –

April 30, 2025

MIL-OSI Security: Miami Man Sentenced to 15 Years in Prison for Leading Payment Protection Program Fraud Scheme

Source: Office of United States Attorneys

MIAMI – Lazaro Verdecia Hernandez, 37, of Miami, was sentenced today to 15 years in federal prison for leading a scheme that involved obtaining fraudulent loans under the Paycheck Protection Program (PPP) and laundering the proceeds.

Verdecia and co-conspirator Heidi Cid submitted over 63 fraudulent PPP loan applications. In the loan paperwork, they made the applicants appear eligible for pandemic relief by falsifying the number of company employees and forging documents. As a result of the fake submissions, lenders disbursed over $14.5 million to bank accounts controlled by individuals who then withdraw the money and gave Verdecia, Cid, and another co-coconspirator, Yadier Rodriguez Arteaga, their cut.

During earlier proceedings, Arteaga and Cid were adjudicated guilty and sentenced to federal prison terms: Arteaga to almost six years and Cid to 26 months.

U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Special Agent in Charge Rafael Barros for the U. S. Secret Service (USSS); Special Agent in Charge Edwin S. Bonano for the Federal Housing Finance Agency, Office of Inspector General (FHFA OIG); and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, made the announcement.

USSS Miami and FHFA OIG investigated the case with the assistance of the U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region. Assistant U.S. Attorneys Thomas Haggerty and Eli Rubin prosecuted the case. Assistant U.S. Attorney Sarah Klco is handling asset forfeiture.

The following cases were previously charged in relation to the fraud scheme:

U.S. v. Roberto Lopez, Kenia Carrillo, Lester Hedman Safont, Oreste Ruiz Linares, Honolio Navarro Caballero, Barbara Alvarez, Javier Pico, Alfredo Contrera, and Erisbel Gonzalez Gomez, Case No. 22-cr-20368;
U.S. v. Nancy Bahos Serna, Case No. 23-cr-20310;
U.S. v. Jorge Trueba Lopez, Case No. 21-cr-20382;
U.S. v. Nancy Saavedra Torres, Case No. 21-cr-20225;
U.S. v. Giraldo Caraballo, Case No. 21-cr-20264;
U.S. v. Felix Martinez and Yailin Perez, Case No. 21-cr-20276;
U.S. v. Yoliesse Sarmiento Carrion, Case No. 22-cr-20530;
U.S. v. Osiel Rodriguez Furgel, Case No. 21-cr-20251; and
U.S. v. Leonardo Gonzalez Lopez, Case No. 23-cr-20113.

Each of these defendants pled guilty, except for Javier Pico and Erisbel Gonzalez Gomez who are fugitives.

Approximately 22 people were charged and convicted in the conspiracy.

In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (EIDLs) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On Sep. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20421.

###

MIL Security OSI –

April 30, 2025

MIL-OSI United Kingdom: Families to get more choice over home upgrades

Source: United Kingdom – Executive Government & Departments

Press release

Families to get more choice over home upgrades

Proposals to give families greater choice when upgrading their home’s heating as well as plans to create up to 18,000 training places for green jobs

Working families to get greater choice on upgrades to their home’s heating including new products, such as air-to-air heat pumps and heat batteries, as well as offering new heat pump purchase options.
Plan to build a ‘clean power army’ receives a boost, with up to 18,000 professionals to be trained to retrofit homes, and install heat pumps, insulation, solar panels and heat networks.
Comes as government invests £4.6 million in Copeland to manufacture more heat pump parts at home in the UK, supporting local jobs and boosting economic growth as part of the Plan for Change.

Homeowners are set to have more choice over ways to access heating systems and bring down costs under proposals being considered as part of the Warm Homes Plan – helping to deliver on the government’s milestone of higher living standards as part of the Plan for Change.

Demand for heat pumps is surging, with the Boiler Upgrade Scheme – which offers up to £7,500 off the cost, enjoying its best month since opening, with 4,028 applications received in March 2025, up 88 per cent on the same month last year. Heat pumps can save families around £100 on their average energy bills when used with a smart tariff.

With more households wanting to make the upgrade to cleaner, homegrown energy, the government has today launched a new consultation on expanding the Boiler Upgrade Scheme to give families even greater choice to pick what works best for them.

Changes to the scheme could see families potentially access air-to-air heat pumps and electric heating technologies such as heat batteries, which are currently not eligible for grants under the scheme, alongside new purchase and ownership models which could spread the cost of a heat pump over several years, or give households the opportunity to lease one for a monthly fee instead.

As part of the government’s Plan for Change, even more households will be able to take up the offer of switching to low-carbon heating, while protecting the pounds in people’s pockets by making more options available.

The government has also set out plans to bolster the ‘clean power army’, training up to 18,000 more home retrofitters, to install heat pumps, insulation, solar panels and heat networks, alongside a major new deal to support the UK’s heat pump supply chain.

Minister for Energy Consumers Miatta Fahnbulleh said:

Our Warm Homes Plan will mean lower bills and warmer homes for millions of families – helping drive better living standards as part of the Plan for Change.

Following a record-breaking month for applications to our Boiler Upgrade Scheme, we are now proposing to give working families more choice and flexibility to pick the low-carbon upgrades that work best for them.

And on top of this, we are investing over £4 million in Copeland to continue building a homegrown heat pump industry and training up the army of skilled workers we need to achieve this.

Copeland in Northern Ireland have been awarded £4.6 million to expand their manufacturing for heating compression technology – a key component of heat pumps, which can help protect family finances from the roller coaster of international gas markets by running on clean electricity.

This investment, backed by a multi-million pound investment from Copeland, will help to support the industries and jobs of the future, while unlocking economic growth, as part of the Prime Minister’s Plan for Change.

Ministers have also unveiled plans to train up to 18,000 skilled workers to install heat pumps, fit solar panels, install insulation and work on heat networks through the extension of the Heat Training Grant and launch of the Warm Homes Skills Programme.

With three days to go until the government’s consultation on introducing higher minimum energy efficiency standards in private rented sector homes closes, ministers have issued a final call for tenants and landlords to make their views heard.

Under the proposals, all private landlords would be required to meet a higher standard of Energy Performance Certificate (EPC) C or equivalent in their properties – up from the current level of EPC E, by 2030.

This will deliver on the priorities of working people, in line with the Prime Minister’s Plan for Change, by requiring landlords to invest in measures such as loft insulation, cavity wall insulation or double glazing – ensuring homes are warmer and more affordable for tenants. Alongside higher standards & funding in the social rented sector, this could lift up to one million households out of fuel poverty by 2030.

Stakeholder reaction:

Charlotte Lee, CEO at the Heat Pump Association said:

Following a record year for UK heat pump sales in 2024, we warmly welcome today’s announcements which will continue to support growth in the sector and increased deployment of clean heating.

The additional funding to support those wishing to become qualified to install heat pumps and heat networks is especially welcome, alongside proposals to expand the Boiler Upgrade Scheme to make clean heating solutions an accessible option for more consumers.

Jambu Palaniappan, CEO at Checkatrade said:

We fully support this latest Government investment in skills and training, and greater choice for homeowners.

At Checkatrade, we’ve seen the growing importance of green energy to consumers, and with our new Green Hub are more easily connecting them with skilled tradespeople to make their homes more energy-efficient.

The new funding is a key step towards empowering more people to enter the trade and a boost for the economy, helping to build long-term, sustainable careers for thousands across the UK.

Verity Davidge, Director of Policy and Public Affairs at Make UK said:

As we continue to transition to a low-carbon economy it is critical we have the people and skills needed to make it happen.

Today’s announcement is a positive step towards ensuring the workforce is equipped with these skills. Many of those trained will develop the transferable skills needed to support industry in its own quest to transition to net zero.

Ned Hammond, Deputy Director (Customers) at Energy UK, said:

Expanding the Boiler Upgrade Scheme and giving families greater choice in the types of low-carbon heating systems available to them is a really positive move. More flexibility in the way customers can pay for these technologies will also help make efficient and smart heating systems, such as heat pumps, heat batteries and heat networks, available to even more customers who are struggling with high energy bills and looking for an alternative to costly gas boilers.

The recent surge in demand for the Boiler Upgrade Scheme following the Government’s funding uplift is a clear signal of consumer appetite and what can be done with the right support in place – and it’s vital this level of investment continues.

Underpinning this is the need for a skilled and dedicated installer supply chain, so it’s fantastic to see Government extending its support for skills and training as part of today’s announcement.

The Government’s figures show that 71% of installers benefitting from the Heat Training Grant said it made all the difference in their decision to upskill into heat pump systems. Extending the subsidy out to 2030 would help further with bringing in the thousands of new entrants we need into the heat pump and heat networks sectors.

Chris O’Shea, CEO of Centrica, said:

As the UK’s largest installer of low carbon heating technologies, we are delighted with the Government’s proposals to expand the Boiler Upgrade Scheme to offer customers more choice on how to decarbonise their homes through greater financing, ownership and technology options.

We can’t wait to add more to our Clean Power Army, the largest in the UK, using our award-winning academies and British Gas engineers to train installers across the UK.

Garry Felgate, Chief Executive of The MCS Foundation, said:

Consumer confidence in low-carbon technologies is growing, with more households installing heat pumps across the UK than ever before. Today’s announcements will help to accelerate that trend, by ensuring more people can access heat pump grants and supporting the growth of the heat pump workforce.

These steps are very welcome news, enabling lower bills, lower carbon emissions, and sustainable jobs.

Sando Matic, Europe President for Copeland, said:

This investment marks a pivotal step in advancing clean energy solutions and driving economic growth.

By expanding our manufacturing capabilities for heating solutions here in Northern Ireland, Copeland is proud to play a key role in helping to reduce reliance on fossil fuels and supporting the energy transition to more sustainable, electricity-powered heating.

Notes to Editors:

Options being considered to help spread the installation cost of a heat pump include:
Hire purchase, giving households the option to pay for a heat pump in instalments, meaning they would own the equipment at the end of their contract.
Hire purchase plus, combining paying for a heat pump in instalments with a separate contract for an energy tariff, allowing providers to simplify costs into a single monthly payment.
Leasing, offering households the option to lease a heat pump for a set amount of time, like leasing a car. At the end of the contract, households would either enter into another agreement to continue leasing the heat pump, or would replace it.
Further information on the Heat Pump Investment Accelerator award to Copeland can be found here: Heat Pump Investment Accelerator Competition successful projects.
The Warm Homes Skills Programme will deliver up to 9,000 training places across England, providing opportunities for people to develop skills in areas including fitting solar panels and installing insulation. More details can be found here: Warm Home Skills Programme.
An extra £5 million will be provided to continue the Heat Training Grant until March 2026, supporting a further 5,500 heat pump installers and 3,500 heat network professionals. The Grant has already trained over 10,650 individuals up to the end of March 2025. More details can be found here: Apply for the Heat Training Grant: discounted heat pump training.
More details on the Heat Training Grant: Heat Network training can be found here: Training providers: apply to offer the Heat Training Grant for heat networks
The government’s consultation on minimum energy efficiency standards for private rented sector homes can be found here: Improving the energy performance of privately rented homes: consultation document

Published 30 April 2025

MIL OSI United Kingdom –

April 30, 2025

MIL-OSI USA: Kelly backs legislation to stop EV mandates, de facto ban on gas-powered vehicles

Source: United States House of Representatives – Representative Mike Kelly (R-PA)

WASHINGTON, D.C. — Today, U.S. Rep. Mike Kelly (R-PA) joined Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, Congressman John Joyce (PA-13), Congressman Jay Obernolte (CA-23), and Congressman John James (MI-10), along with Members of the House Committee on Energy and Commerce, California Republicans, and Conference Chairwoman Lisa McClain on three Congressional Review Act resolutions that would undo harmful rules created under the Biden administration’s Environmental Protection Agency.

These three Congressional Review Act resolutions would reverse radical regulations that established a de facto ban on the use of gas-powered vehicles, heavy trucks, and diesel engines over the next decade.

“Pennsylvania drivers shouldn’t be subjected to California laws, plain and simple. This series of legislation rejects radical EV mandates and ensures drivers across the United States will be able to choose the vehicle that’s best for them, whether it’s gas-powered, electric, or a hybrid model,” Rep. Kelly said.

“The American people should choose what vehicle is right for them, not California bureaucrats. By submitting the three California waivers to Congress, Administrator Zeldin is ensuring that Congress has oversight of these major rules that impact every American,” said Chairman Guthrie. “The Committee has been committed to addressing this issue since California first attempted to create a de facto EV mandate. Energy and Commerce Republicans will continue to fight against far-left policies that would harm consumers and will now work to ensure that the Congressional Review Act process finally puts these issues to rest. Thank you to Congressman Joyce, Congressman Obernolte, and Congressman James for your work to ensure that families and businesses can continue to choose the vehicles they need.”

“Since arriving in Washington, I have fought to protect consumer freedom and allow American families to choose the vehicle that best fits their budget and needs,” said Vice Chairman John Joyce, M.D. “The introduction of this resolution to overturn California’s ban on gas-powered vehicles is long overdue. Thank you to Chairman Guthrie and Chairman Capito for their leadership on this issue, and I look forward to seeing this legislation swiftly pass through Congress so President Trump can permanently protect the freedom of the open road for all Americans.”

“As a representative of California, I’ve seen firsthand how burdensome regulations from the California Air Resources Board have hurt businesses and hardworking Americans by imposing costly mandates instead of allowing the market to drive innovation,” said Congressman Obernolte. “Congress must exercise its oversight authority to ensure these policies do not become the national standard. It is critical we protect jobs, supply chains, and the ability of consumers to choose what is best for them and their families.”

“The Biden administration left behind comply-or-die Green New Deal mandates that threaten to crush our trucking industry and drive up costs for hardworking Americans,” said Congressman James. “I know — my family has a trucking company. Republicans are working hard to implement President Trump’s America First agenda, and the first step is repealing the rules and waivers that contributed to Bideninflation!”

“During the Biden administration, the Environmental Protection Agency (EPA) allowed a series of stringent, environmentally charged regulations on vehicles that would effectively overhaul the marketplace and steer consumers toward purchasing electric vehicles,” said Congressman Fulcher. “I am honored to join my colleagues in introducing a legislative package to repeal these overreaching federal mandates and preserve consumer freedom and choice in the automotive and heavy-duty truck markets,”

“California’s sweeping and unachievable emissions mandates are a direct assault on everyone who lives, works, or does business in our state,” said Congressman LaMalfa. “These regulations drive up costs, limit consumer choice, and force trucking and automotive industries into an impossible transition timeline. Californians are already paying some of the highest fuel and energy costs in the country. These rules are causing the cost of new and used cars and trucks to increase for everyone. If you want to buy an electric vehicle, buy one, but everybody else shouldn’t be forced into this mandate. The Federal Government cannot allow one state to destroy the American car and truck market. Instead of making life even more expensive, we should focus on what consumers want. I’m pleased to support this effort to stop California’s insanity and protect drivers and consumers across my state and the country.”

“The Newsom Administration’s irrational plan to ban gas-powered cars and trucks is an affront to the freedom of Californians and an economic burden to the whole country,” said Congressman Kiley. “The Biden Administration aided and abetted this insanity with special waivers. With the Congressional Review Act resolutions introduced today, we have an opportunity to return to economic reality and restore common sense.”

“Biden’s EPA waivers effectively allowed one state’s woke agenda to dictate national policy. It’s not the government’s role to decide what vehicle Americans must drive,” said Chairwoman McClain. “These waivers bypass Congress and ignore millions of Americans who rely on affordable, reliable transportation. Instead, we should have a little more faith in the American people to choose what’s best for them. It’s time we end this regulatory overreach.”

BACKGROUND

Making these changes at a time when the United States is unprepared for a full transition to electric vehicles would have massive consequences for American communities. With states making up more than 40% of the auto market following California’s emissions standards, implementing Californias EV mandate would result in a nation-wide shift in the vehicles that are available for purchase, and in fact could lead to a shortage of the vehicles consumers need.

H.J. Res. 88, introduced by Congressman Joyce (PA-13), would reverse the EPA’s decision to approve a waiver granted to California allowing the State to ban the sale of gas-powered vehicles by 2035.

H.J. Res. 89, introduced by Congressman Obernolte (CA-23), would put an end to the EPA’s decision to allow California to implement its most recent nitrogen oxide (NOx) engine emission standards, which create burdensome and unworkable standards for heavy-duty on-road engines.

H.J. Res. 87, introduced by Congressman James (MI-10), would reverse the EPA’s decision to approve a waiver granted to California allowing the State to mandate the sale of zero-emission trucks.

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: Rep. Gomez Hosts Virtual Roundtable with Social Media Creators and Influencers, Pushes for Better Federal Support

Source: United States House of Representatives – Congressman Jimmy Gomez (CA-34)

Gomez pushes for better support for content creators and connects with gaming and digital influencers to reach young Americans

LOS ANGELES, CA — Representative Jimmy Gomez (CA-34) today hosted a virtual roundtable with digital creators, influencers, and leaders in the gaming and anime space to discuss the growing role of the creator economy in shaping culture, driving innovation, and empowering young people. The conversation focused on financial security for creators, digital entrepreneurship, and educational opportunities through gaming to reach out to people aged 18–24. Gomez is also pushing the Small Business Administration (SBA) to better support content creators through better access to loans, tax resources, and protections for intellectual property.

Participants included creators and influencers like Kenny Williams Jr., Angelina Darrisaw, David Echeverria, Ilan Shapiro, Ryan Johnson, John Cash, DJ Squid, and Bethany Simpson — representing millions of followers across platforms.

“Content creators aren’t just building audiences — they’re building businesses, creating jobs, and driving a $250 billion economy,” said Rep. Jimmy Gomez. “We need small business programs that match that reality — not policies that make it harder for entrepreneurs to succeed.”

“Representative Gomez isn’t just showing up — he’s leading the way,” said Michael Ceraso, an organizer and advocate with Winning Margins who moderated and invited creators to the event. “At a time when most politicians are scrambling to catch up with the digital world, Rep. Gomez is already building real partnerships with creators and pushing for the federal support they deserve. He understands that creators are small business owners, educators, and cultural leaders — and he’s fighting to make sure policy reflects that. This gathering wouldn’t have happened without his vision and commitment.”

Ryan Johnson — founder and CEO of Cxmmunity Media, a company focused on eSports and video game career development for students of color — spoke about empowering creators, especially students at HBCUs. Rep. Gomez reflected on how platforms like Twitch and YouTube are shaping public opinion and stressed the importance of Democrats engaging directly with digital communities and young Americans.

“Our company’s claim to fame is that we started the nation’s first eSports and video game league for HBCUs,” said Ryan Johnson, Founder and CEO of Cxmmunity Media. “We’ve been trying to find more strategic ways to not only tell stories but help and empower these creators to use their voices.”

Rep. Jimmy Gomez represents LA, a global hub for the digital creator economy. As a member of the House Ways and Means Committee, he has been vocal about modernizing the tax code and small business support systems to meet the needs of today’s entrepreneurs. Today’s discussion builds on Rep. Gomez’s January listening session with leading social media influencers, held just days before a potential TikTok ban.

###

MIL OSI USA News –

April 30, 2025

MIL-OSI New Zealand: Transforming financial education in schools

Source: New Zealand Government

Financial education will be embedded as a core element of the refreshed social sciences curriculum for Year 1-10 students, set to be available for use from 2026, Education Minister Erica Stanford announced today.

“Embedding essential skills into the curriculum will ensure our young people are better prepared to make informed financial decisions in a complex financial world. This will positively impact their lives and the broader economy,” says Minister Stanford.

For younger students the curriculum will cover key financial skills, such as identifying needs versus wants, having a bank account, earning, spending and saving. Older students will gain the knowledge needed to understand more complex concepts, such as budgeting, investment, interest, taxes, and insurance to help to build lifelong financial skills. We have already included financial maths in the new maths curriculum, which is being delivered this year.

To support the implementation of financial education in the new curriculum, a variety of tools and resources, developed in collaboration with financial organisations, banks, and charitable trusts, will be available to schools, ensuring they can effectively deliver the curriculum.

A new partnership between the Ministry of Education and the Retirement Commission will map the offerings from financial education providers against the updated curriculum. The Retirement Commission’s work with providers will ensure consistent curriculum-aligned supports and resources, giving schools confidence in their delivery.

This resource map will be extended into senior secondary years with guidance and resources for Year 11-13 students, supporting schools to flexibly deliver ongoing financial education to their students.

“As the Minister responsible for the Retirement Commission, I absolutely believe that strengthening financial education is crucial to our Government’s focus on economic growth. We are all consumers, and financial literacy can set young Kiwis up to be savvy consumers – whether it’s knowing how to invest wisely, choose the best loan at a bank, or even identify a scam,” Commerce and Consumer Affairs Minister Scott Simpson says.

“We know that New Zealand parents have long called for financial education to be a priority. This curriculum update answers those calls, ensuring students are equipped with the knowledge to thrive in both personal and financial aspects of their lives,” says Minister Stanford.

This initiative marks a significant step forward in New Zealand’s education system, placing a strong emphasis on real-world skills that will empower students to take control of their financial futures.

Notes to Editor:

Providers working with the Retirement Commission include:

Sorted in Schools (Retirement Commission)
Banqer
MoneyTime
Life Education
Young Enterprise Trust
Savvy
Westpac
ASB
Kiwi bank
BNZ

A draft of the updated social sciences learning area will be available in Term 4, 2025 for feedback. An updated version will be available for schools to use in 2026, and is planned to be required from 2027.

MIL OSI New Zealand News –

April 30, 2025

MIL-OSI USA: Hickenlooper, Bennet, Neguse Demand Commerce Department Reverse Planned Cuts to NOAA, Colorado-Based Research Centers

US Senate News:

Source: United States Senator for Colorado John Hickenlooper

WASHINGTON – Today, U.S. Senators John Hickenlooper and Michael Bennet, along with Representative Joe Neguse, urged Secretary of Commerce Howard Lutnick to preserve funding for the National Oceanic and Atmospheric Administration (NOAA) and its Cooperative Institutes (CIs) following recent reports that the Trump administration plans to cut funding for NOAA in its upcoming budget proposal.

“Cooperative Institutes are integral to solving some of our biggest problems and making all of us safer and better prepared for short-term and long-term hazards. Any plan to terminate funding for NOAA CIs would be detrimental not just to the people of Colorado, but to people across the entire country,” wrote the lawmakers.

Colorado is the only state in the nation to house two CIs, which are academic and nonprofit research centers that provide invaluable support to NOAA’s mission.

The Cooperative Institute for Research in Environmental Sciences (CIRES), located at the University of Colorado Boulder, is the oldest and largest CI. It employs nearly 800 researchers, support staff, and students focused on research related to drought, wildfire, and space weather.

The Cooperative Institute for Research in the Atmosphere (CIRA), located at Colorado State University, employs nearly 200 individuals who are working to improve weather and fire forecasting.

“We strongly condemn any such plan and believe terminating this funding would be extremely short-sighted and costly to the American people and economy in the long run,” continued the lawmakers.

Read their full letter HERE.

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: 04.29.2025 WTAS: Bipartisan, Bicameral TAKE IT DOWN Act to Criminalize the Spread of Deepfake Revenge Porn Heads to President Trump’s Desk

US Senate News:

Source: United States Senator for Texas Ted Cruz

Washington, D.C. – Yesterday, the bipartisan, bicameral TAKE IT DOWN Act, introduced in the Senate by Commerce Committee Chairman Ted Cruz (R-Texas) and co-led by Sen. Amy Klobuchar (D-Minn.), passed the U.S. House of Representatives by a vote of 409-2 and heads to President Trump’s desk. The legislation unanimously passed the Senate in February.
The TAKE IT DOWN Act criminalizes the publication of non-consensual intimate imagery (NCII), including AI-generated NCII (or “deepfake revenge pornography”), and requires social media and similar websites to implement procedures to remove such content within 48 hours of notice from a victim.
The House companion was introduced by Reps. Maria Elvira Salazar (R-Fla.) and Madeleine Dean (D-Pa.).
Here is what they are saying about the TAKE IT DOWN Act:

TIME: Inside the First Major U.S. Bill Tackling AI Harms—and Deepfake Abuse
“In January, however, Cruz was promoted to become the chair of the Senate Commerce Committee, giving him a major position of power to set agendas. His office rallied the support for Take it Down from a slew of different public interest groups. They also helped persuade tech companies to support the bill, which worked: Snapchat and Meta got behind it.
“‘Cruz put an unbelievable amount of muscle into this bill,’ says Sunny Gandhi, vice president of political affairs at Encode, an AI-focused advocacy group that supported the bill. ‘They spent a lot of effort wrangling a lot of the companies to make sure that they wouldn’t be opposed, and getting leadership interested.’”

THE DALLAS MORNING NEWS: House passes Ted Cruz bill cracking down on deepfake nudes
“U.S. Sen. Ted Cruz’s bill targeting the publication of nonconsensual deepfake pornography will soon be federal law.
“The House voted 409-2 Monday to approve the bill, which already passed the Senate, sending it to President Donald Trump’s desk.
“Elliston was 14 years old in October 2023 when a classmate used an artificial intelligence program to turn innocent photos of her and her friends into realistic-looking nudes and distributed the images on social media.
“They were only removed after they shared the story with Cruz and he pushed for action.
“First lady Melania Trump participated in an event highlighting the issue and Elliston sat with her as a guest for the president’s joint address to Congress.
“Trump gave Elliston a shout-out during the speech, saying he looked forward to signing Cruz’s proposal into law after the House passed it.”

USA TODAY: With rare bipartisan support, Congress passes bill to outlaw deepfake pornography
“A bill to criminalize AI-generated explicit images, or ‘deepfakes,’ is headed to President Donald Trump’s desk after sailing through both chambers of Congress with near-unanimous approval.
“The Take It Down Act has enjoyed uncommon bipartisan support, along with a key endorsement from the first lady.
“The newly-passed bill will require technology platforms to remove reported “non-consensual, sexually exploitative images” within 48 hours of receiving a valid request. Sens. Ted Cruz, R-Texas, and Amy Klobuchar, D-Minnesota, introduced the legislation in August.”

The New York Times: House Passes Bill to Ban Sharing of Revenge Porn, Sending It to Trump
“The legislation, introduced by Senators Ted Cruz, Republican of Texas, and Amy Klobuchar, Democrat of Minnesota, is the first internet content law to clear Congress since 2018, when lawmakers approved legislation to fight online sex trafficking. And though it focuses on revenge porn and deepfakes, the bill is seen as an important step toward regulating internet companies that have for decades escaped government scrutiny.”

CBS NEWS: House passes “Take it Down Act,” sending revenge porn bill backed by Melania Trump to president’s desk
“‘If you’re a victim of revenge porn or AI-generated explicit imagery, your life changes forever,’ Sen. Ted Cruz, a Texas Republican, said at a March 3 roundtable promoting the bill.
“Cruz, who introduced the bill, recalled the experience of a teenage victim, Elliston Berry, whose classmate used an app to create explicit images of her and then sent them to her classmates. Berry’s mother had tried unsuccessfully to get Snapchat to remove the images for months before she contacted Cruz’s office for help.
“‘It should not take a sitting senator or sitting member of Congress picking up the phone to get a picture down or video down,’ Cruz said.”

CNN: House passes bill aimed at protecting victims of deepfake and revenge porn
“Republican Sen. Ted Cruz of Texas introduced the bill, and a bipartisan group of lawmakers, including Democratic Sen. Amy Klobuchar of Minnesota and Rep. Madeleine Dean of Pennsylvania, have supported the effort.
“According to Cruz’s office, the bill ‘would criminalize the publication of non-consensual intimate imagery (NCII), including AI-generated NCII (or ‘deepfake pornography’), and require social media and similar websites to have in place procedures to remove such content upon notification from a victim.’”

THE HILL: Bill criminalizing deepfake revenge porn passes House, heads to Trump’s desk
“Cruz celebrated the bill’s passage on Monday, calling it a ‘historic win in the fight to protect victims of revenge porn and deepfake abuse.’
“‘By requiring social media companies to take down this abusive content quickly, we are sparing victims from repeated trauma and holding predators accountable,’ he wrote in a statement.”
More than 120 organizations representing victim advocacy groups, law enforcement, and tech industry leaders have voiced their support for the legislation, including Meta, Snap, Google, Microsoft, TikTok, X, Amazon, Bumble, Match Group, Entertainment Software Association, IBM, TechNet, the U.S. Chamber of Commerce, Internet Works, the Fraternal Order of Police, the National Center for Missing and Exploited Children (NCMEC), RAINN (Rape, Abuse, & Incest National Network), and the National Center on Sexual Exploitation (NCOSE).
In March, Sen. Cruz and Rep. Salazar hosted a bipartisan roundtable with First Lady Melania Trump to hear from victims of revenge and deepfake pornography and urge the House to pass the bipartisan TAKE IT DOWN Act. During his State of the Union address, President Trump emphasized the bill’s importance and said, “I look forward to signing it into law.”
Other notable endorsements came from the bipartisan Problem Solvers Caucus, a group of House lawmakers evenly split between Republicans and Democrats, and Paris Hilton, who called the bill “a crucial step toward ending non-consensual image sharing online.”
During the 118th Congress, the bill unanimously passed the Senate Commerce Committee and the full Senate.
BACKGROUND:
While nearly every state has a law protecting people from non-consensual intimate imagery (NCII), including 30 states with laws explicitly covering sexual deepfakes, these state laws vary in classification of crime and penalty and have uneven criminal prosecution. Further, victims struggle to have images depicting them removed from websites, increasing the likelihood the images are continuously spread and victims are retraumatized.
In 2022, Congress passed legislation creating a civil cause of action for victims to sue individuals responsible for publishing NCII. However, bringing a civil action can be incredibly impractical. It is time-consuming, expensive, and may force victims to relive trauma. Further exacerbating the problem, it is not always clear who is responsible for publishing the NCII.
The TAKE IT DOWN Act would protect and empower victims of real and deepfake NCII while respecting speech by:

Criminalizing the publication of NCII in interstate commerce. The bill makes it unlawful for a person to knowingly publish NCII on social media and other online platforms. NCII is defined to include realistic, computer-generated pornographic images and videos that depict identifiable, real people. The bill also clarifies that a victim consenting to the creation of an authentic image does not mean that the victim has consented to its publication.
Protecting good faith efforts to assist victims. The bill permits the good faith disclosure of NCII, such as to law enforcement.
Requiring websites to take down NCII upon notice from the victim. Social media and other websites would be required to have in place procedures to remove NCII, pursuant to a valid request from a victim, within 48 hours. Websites must also make reasonable efforts to remove copies of the images. The Federal Trade Commission is charged with enforcement of this section.
Protecting lawful speech. The bill is narrowly tailored to criminalize knowingly publishing NCII without chilling lawful speech. The bill conforms to current First Amendment jurisprudence by requiring that computer-generated NCII meet a “reasonable person” test for appearing indistinguishable from an authentic image.

To read the bill text, click HERE.

MIL OSI USA News –

April 30, 2025

MIL-OSI: Silicon Motion Announces Results for the Period Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

Business Highlights

First quarter of 2025 sales decreased 13% Q/Q and decreased 12% Y/Y
- SSD controller sales: 1Q of 2025 decreased 10% to 15% Q/Q and decreased 20% to 25% Y/Y
- eMMC+UFS controller sales: 1Q of 2025 decreased 15% to 20% Q/Q and decreased 0% to 5% Y/Y
- SSD solutions sales: 1Q of 2025 decreased 20% to 25% Q/Q and decreased 35% to 40% Y/Y
Announced new $50 million share repurchase program

Financial Highlights

	1Q 2025 GAAP	1Q 2025 Non-GAAP*
• Net sales	$166.5 million (-13% Q/Q, -12% Y/Y)	$166.5 million (-13% Q/Q, -12% Y/Y)
• Gross margin	47.1%	47.1%
• Operating margin	5.9%	8.9%
• Earnings per diluted ADS	$0.58	$0.60

* Please see supplemental reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

TAIPEI, Taiwan and MILPITAS, Calif., April 30, 2025 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended March 31, 2025. For the first quarter of 2025, net sales (GAAP) decreased sequentially to $166.5 million from $191.2 million in the fourth quarter of 2024. Net income (GAAP) decreased to $19.5 million, or $0.58 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $21.6 million, or $0.64 per diluted ADS (GAAP), in the fourth quarter of 2024.

For the first quarter of 2025, net income (non-GAAP) decreased to $20.3 million, or $0.60 per diluted ADS (non-GAAP), from net income (non-GAAP) of $29.4 million, or $0.87 per diluted ADS (non-GAAP), in the fourth quarter of 2024.

All financial numbers are in U.S. dollars unless otherwise noted.

First Quarter of 2025 Review

“Despite the challenging macro environment in the first quarter of 2025, we executed our plan and delivered quarterly revenue at the high end of our guided range and delivered another quarter of gross margin expansion,” stated Wallace Kou, President and CEO of Silicon Motion. “Our industry leading PCIe Gen 5 controller experienced stronger than expected demand during the quarter, partially driven by growing AI inference demands from white box server makers leveraging more mainstream hardware components. Our eMMC and UFS controllers also experienced better than expected demand given a rebound in the smartphone market and our ongoing market share gains. While the near-term remains challenging given the broader economic challenges associated with tariffs and potential trade wars, we remain focused on delivering strong, sustainable long-term growth through product diversification; expanding into new markets; and growing market share across our portfolio of consumer, enterprise, automotive, industrial and storage solutions.”

Key Financial Results

($ in millions, except per ADS amounts)	GAAP			Non-GAAP
($ in millions, except per ADS amounts)	1Q 2025	4Q 2024	1Q 2024	1Q 2025	4Q 2024	1Q 2024
Revenue	$166.5	$191.2	$189.3	$166.5	$191.2	$189.3
Gross profit	$78.4	$87.6	$85.1	$78.4	$87.9	$85.2
Percent of revenue	47.1%	45.8%	45.0%	47.1%	46.0%	45.0%
Operating expenses	$68.6	$69.9	$67.2	$63.6	$58.3	$62.5
Operating profit	$9.8	$17.7	$18.0	$14.9	$29.6	$22.6
Percent of revenue	5.9%	9.3%	9.5%	8.9%	15.5%	12.0%
Earnings per diluted ADS	$0.58	$0.64	$0.48	$0.60	$0.87	$0.64

Other Financial Information

($ in millions)	1Q 2025	4Q 2024	1Q 2024
Cash, cash equivalents, and restricted cash—end of period	$331.7	$334.3	$349.3
Routine capital expenditures	$7.0	$7.3	$5.0
Dividend payments	$17.0	$16.8	$16.8
Share repurchases	$24.3	—	—

During the first quarter of 2025, we had $11.7 million of capital expenditures, including $7.0 million for the routine purchases of testing equipment, software, design tools and other items, and $4.7 million for building construction in Hsinchu, Taiwan.

Returning Value to Shareholders

On February 6, 2025, we announced that our Board of Directors had authorized a new program for the Company to repurchase up to $50 million of our ADSs over a six-month period. In the first quarter of 2025, we repurchased $24.3 million of our ADSs at an average price of $56.96 per ADS.

Business Outlook

“We are rapidly expanding our market opportunities as we invest in new products and enter new markets, which we anticipate will drive improved revenue and profitability for many years to come. In 2025, we expect to benefit from the introduction of several new products, including our 8-channel PCIE Gen 5 controller, our 4-channel PCIe Gen 5 controller targeting the mass market that will be introduced in late 2025, our higher-end UFS 4.1 and new low-cost UFS 2.2 controllers that will ramp in the second half of 2025. We introduced our first MonTitan enterprise/AI-class products at the end of 2024, and we expect these to ramp-up production with our first customers in the second half of 2025. Additionally, we continue to expand our automotive product portfolio and our market share across multiple applications. While the near-term environment remains challenging given the macro environment, including the potential impact of tariffs and potential trade wars, we continue to believe we will see a strong rebound in the consumer markets in the second half of 2025, enhanced by our new product introductions, and we continue to target a revenue run rate of $1 billion as we exit the year.”

For the second quarter of 2025, management expects:

($ in millions, except percentages)	GAAP	Non-GAAP Adjustment	Non-GAAP
Revenue	$175 to $183 +5% to 10% Q/Q	—	$175 to $183 +5% to 10% Q/Q
Gross margin	47.0% to 48.0%	Approximately $0.1*	47.0% to 48.0%
Operating margin	6.6% to 9.2%	Approximately $3.1 to $4.1**	8.9% to 10.9%

* Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $3.1million to $4.1 million of stock-based compensation and dispute related expenses.

Conference Call & Webcast:

The Company’s management team will conduct a conference call at 8:00 am Eastern Time on April 30, 2025.

Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

Participant Online Registration:
https://register-conf.media-server.com/register/BI5c69a4c2d96041b59a2bf8a51cec1881

A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
a better understanding of how management plans and measures the Company’s underlying business; and
an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments.

Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

Silicon Motion Technology Corporation Consolidated Statements of Income (in thousands, except percentages and per ADS data, unaudited)

	For Three Months Ended
	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Net Sales	189,311	191,160	166,492
Cost of sales	104,191	103,560	88,125
Gross profit	85,120	87,600	78,367
Operating expenses
Research & development	54,392	54,156	55,026
Sales & marketing	6,304	7,360	7,115
General & administrative	6,474	8,350	6,460
Operating income	17,950	17,734	9,766
Non-operating income (expense)
Interest income, net	3,066	3,768	2,929
Foreign exchange gain, net	588	1,046	373
Realized/Unrealized gain(loss) on investments	(1,608)	956	3,296
Subtotal	2,046	5,770	6,598
Income before income tax	19,996	23,504	16,364
Income tax expense (benefit)	3,980	1,935	(3,099)
Net income	16,016	21,569	19,463

Earnings per basic ADS	0.48	0.64	0.58
Earnings per diluted ADS	0.48	0.64	0.58

Margin Analysis:
Gross margin	45.0%	45.8%	47.1%
Operating margin	9.5%	9.3%	5.9%
Net margin	8.5%	11.3%	11.7%

Additional Data:
Weighted avg. ADS equivalents	33,508	33,690	33,634
Diluted ADS equivalents	33,701	33,814	33,827

Silicon Motion Technology Corporation Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except percentages and per ADS data, unaudited)

	For Three Months Ended
	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Gross profit (GAAP)	85,120	87,600	78,367
*Gross margin (GAAP)*	45.0%	45.8%	47.1%
Stock-based compensation (A)	72	162	73
Restructuring charges	–	164	–
Gross profit (non-GAAP)	85,192	87,926	78,440
*Gross margin (non-GAAP)*	45.0%	46.0%	47.1%

Operating expenses (GAAP)	67,170	69,866	68,601
Stock-based compensation (A)	(3,093)	(9,585)	(4,738)
Dispute related expenses	(1,532)	(1,999)	(277)
Operating expenses (non-GAAP)	62,545	58,282	63,586

Operating profit (GAAP)	17,950	17,734	9,766
*Operating margin (GAAP)*	9.5%	9.3%	5.9%
Total adjustments to operating profit	4,697	11,910	5,088
Operating profit (non-GAAP)	22,647	29,644	14,854
*Operating margin (non-GAAP)*	12.0%	15.5%	8.9%

Non-operating income (expense) (GAAP)	2,046	5,770	6,598
Foreign exchange loss (gain), net	(588)	(1,046)	(373)
Realized/Unrealized loss (gain) on investments	1,608	(956)	(3,296)
Non-operating income (expense) (non-GAAP)	3,066	3,768	2,929

Net income (GAAP)	16,016	21,569	19,463
Total pre-tax impact of non-GAAP adjustments	5,717	9,908	1,419
Income tax impact of non-GAAP adjustments	(147)	(2,049)	(610)
Net income (non-GAAP)	21,586	29,428	20,272

Earnings per diluted ADS (GAAP)	$0.48	$0.64	$0.58
Earnings per diluted ADS (non-GAAP)	$0.64	$0.87	$0.60

Shares used in computing earnings per diluted ADS (GAAP)	33,701	33,814	33,827
Non-GAAP adjustments	26	181	20
Shares used in computing earnings per diluted ADS (non-GAAP)	33,727	33,995	33,847

(A)Excludes stock-based compensation as follows:
Cost of sales	72	162	73
Research & development	2,143	6,670	3,003
Sales & marketing	347	978	862
General & administrative	603	1,937	873

Silicon Motion Technology Corporation Consolidated Balance Sheet (In thousands, unaudited)

	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Cash and cash equivalents	294,814	276,068	275,140
Accounts receivable (net)	186,154	233,744	206,693
Inventories	253,316	199,229	180,903
Refundable deposits – current	49,610	54,645	53,015
Prepaid expenses and other current assets	17,944	31,187	32,102
Total current assets	801,838	794,873	747,853
Long-term investments	15,489	17,326	20,636
Property and equipment (net)	174,420	188,398	193,603
Other assets	32,529	30,739	29,310
Total assets	1,024,276	1,031,336	991,402

Accounts payable	64,810	17,773	23,048
Income tax payable	10,702	13,107	14,782
Accrued expenses and other current liabilities	135,425	168,624	130,277
Total current liabilities	210,937	199,504	168,107
Other liabilities	59,883	59,548	50,968
Total liabilities	270,820	259,052	219,075
Shareholders’ equity	753,456	772,284	772,327
Total liabilities & shareholders’ equity	1,024,276	1,031,336	991,402

Silicon Motion Technology Corporation Condensed Consolidated Statements of Cash Flows (in thousands, unaudited)

	For Three Months Ended
	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Net income	16,016	21,569	19,463
Depreciation & amortization	5,608	7,256	7,225
Stock-based compensation	3,165	9,747	4,811
Investment losses (gain) & disposals	1,608	(956)	(3,309)
Changes in operating assets and liabilities	(18,586)	(43,774)	22,082
Net cash provided by (used in) operating activities	7,811	(6,158)	50,272

Purchase of property & equipment	(10,749)	(10,836)	(11,661)
Proceeds from disposal of properties	–	3	13
Purchase of long-term investments	–	(4,173)	–
Disposal of long-term investments	–	4,432	–
Net cash provided by (used in) investing activities	(10,749)	(10,574)	(11,648)

Dividend payments	(16,808)	(16,814)	(16,956)
Share repurchases	–	–	(24,291)
Net cash used in financing activities	(16,808)	(16,814)	(41,247)

Net increase (decrease) in cash, cash equivalents & restricted cash	(19,746)	(33,546)	(2,623)
Effect of foreign exchange changes	35	(717)	37
Cash, cash equivalents & restricted cash—beginning of period	368,990	368,596	334,333
Cash, cash equivalents & restricted cash—end of period	349,279	334,333	331,747

About Silicon Motion:

We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com.

Forward-Looking Statements:
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

The MIL Network –

April 30, 2025

MIL-OSI: GBank Financial Holdings Inc. Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

LAS VEGAS, April 29, 2025 (GLOBE NEWSWIRE) — GBank Financial Holdings Inc. (the “Company”) (OTCQX: GBFH), the parent company of GBank (the “Bank”), today reported net income for the quarter ended March 31, 2025 of $4.5 million, or $0.31 per diluted share, compared to $5.2 million, or $0.37 per diluted share during the fourth quarter of 2024, and $3.7 million, or $0.29 per diluted share, for the first quarter of 2024.

First Quarter 2025 Financial Highlights (Unaudited)

Net income of $4.5 million and diluted earnings per share of $0.31

Net revenue⁽¹⁾of $17.4 million, an increase of 31.4% compared to the first quarter of 2024

SBA Lending and Commercial Banking loan originations of $133.0 million, compared to $136.6 million for the first quarter of 2024

Gain on sale of loans of $2.5 million on loans sold of $68.7 million, compared to gain on sale of loans of $2.1 million on loans sold of $68.6 million for the first quarter of 2024

Credit card charge transactions of $105.6 million and net interchange fees of $2.0 million, compared to $1.1 million and $20 thousand, respectively, for the first quarter of 2024

Non-interest expenses include legal, professional, and audit fees from registration on Forms S-1 and S-1A, which total approximately $1.1 million to date

Net interest margin of 4.47%

Total deposit growth of $189.0 million, or 23.4% compared to March 31, 2024

Total on-balance sheet guaranteed loans of $245.6 million, compared to $263.5 million as of March 31, 2024

Non-performing assets, excluding guaranteed portions, of $5.7 million, representing 0.48% of total assets

Edward M. Nigro, Executive Chairman, stated, “While quarterly net revenues⁽¹⁾ increased 31% over the first quarter of 2024, our first quarter noninterest income, driven by the increased monetization of Gaming FinTech operations, increased 51% year-over-year with noninterest revenue exceeding $5 million. And in just these last two weeks, GBFH received SEC approval of its S-1 filing and was approved to commence trading on NASDAQ – we have been busy.”

Registration Statement on Form S-1

On April 16, 2025, the Company announced that the U.S. Securities and Exchange Commission declared effective the Company’s Registration Statement on Form S-1 (the “Form S-1”) related to registration and resale of 1,081,081 shares of common stock, currently held by existing stockholders and issued in the Company’s Private Placement Offering (the “Offering”) which closed on October 11, 2024.

The Company is not currently offering or selling new shares of common stock, and there will be no change to the issued and outstanding number of shares of common stock of the Company in connection with the Form S-1. Copies of the prospectus included in the Registration Statement may be obtained from the Company by request or by visiting
https://www.sec.gov/Archives/edgar/data/1791145/000147793225002363/gbfh_s1.htm.

Financial Results

Income Statement

Net interest income totaled $11.9 million for the first quarter of 2025, reflecting an increase of $105 thousand, or 0.9%, compared to $11.8 million for the fourth quarter of 2024, and an increase of $1.1 million, or 10.1%, compared to the first quarter of 2024.

The increase in net interest income from the fourth quarter was driven by a favorable reduction in the cost of deposits, partially offset by lower interest income on loans. The favorable decrease in the cost of deposits of $305 thousand was the result of (i) the redemption of $20 million of certain higher-cost callable brokered deposits during the quarter having a weighted-average interest rate of 4.95%, (ii) rate decreases on interest-bearing deposits resulting from the 50 basis point decrease in the federal funds rate enacted during the fourth quarter 2024 by the Federal Open Market Committee (“FOMC”), and (iii) the non-recurring effect of accelerated recognition of certain premiums on brokered certificates of deposits during the fourth quarter of 2024 totaling $170 thousand. The favorable decrease in the cost of deposits was partially offset by a decrease in interest income on loans of $395 thousand primarily due to the full-quarter impact of the previously mentioned 50 basis point decrease in the federal funds rate on the Bank’s variable rate loan portfolio. Interest income for the first quarter of 2025 reflects the net effect of the reversal of $100 thousand of interest accruals, deferred fees, and deferred costs attributable to $2.8 million of commercial loans placed on nonaccrual status during the first quarter of 2025. Comparatively, the fourth quarter of 2024 reflects the net effect of the reversal of $342 thousand of interest accruals, deferred fees, and deferred costs attributable to $12.4 million of commercial loans placed on nonaccrual status.

The increase in net interest income when compared to the first quarter of 2024 was primarily volume driven, as higher interest income from growth in average loan and interest-bearing cash balances more than offset increases in interest expense resulting from higher average balances of interest-bearing deposits.

Investment securities yield was 4.94% for the first quarter of 2025, compared to 4.74% for the fourth quarter of 2024 and 4.16% for the first quarter of 2024. The increase in investment securities yield when compared to the previous linked quarter and to the same quarter of 2024 was driven by the purchase of $72.9 million of investment securities over the previous twelve months to replace certain lower-yielding U.S. Treasury securities that matured during 2024.

The Company’s net interest margin for the first quarter of 2025 decreased to 4.47%, compared to 4.53% for the fourth quarter of 2024 and 4.85% for the first quarter of 2024. The decrease in net interest margin when compared to the fourth and first quarters of 2024 is reflective of the full-quarter impact of the 50 basis point decrease in the federal funds rate enacted in during the fourth quarter of 2024 by the FOMC on variable rate loans, investment securities, and interest bearing cash balances and interest income reversals relating to loans placed on nonaccrual status during the quarter.

The Company recorded a provision for credit losses on loans of $710 thousand for the first quarter of 2025, a decrease of $627 thousand compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. The provision for credit losses on loans recorded in the first quarter of 2025 reflects quarterly growth in non-guaranteed loans of $24.4 million.

Non-interest income was $5.5 million for the first quarter of 2025, compared to $5.8 million for the fourth quarter of 2024, and $2.4 million for the first quarter of 2024. The $301 thousand decrease in non-interest income when compared to the fourth quarter of 2024 was driven by a $1.5 million decrease in income from gain on sale of loans due to a decrease in average pretax gain on sale margin and lower sales volume quarter-over-quarter. The decrease in gain on sale of loans was partially offset by an increase in credit card net interchange fees of $1.1 million quarter-over-quarter due to increased credit card transaction volume. The $3.1 million increase in non-interest income when compared to the first quarter of 2024 was driven by (i) an increase in credit card net interchange fees of $2.0 million, (ii) a $643 thousand increase in loan servicing income as the first quarter of 2024 reflected the write-off of certain loan servicing assets totaling $401 thousand relating to the repurchase of the guaranteed portion of previously sold SBA loans, and (iii) a $454 thousand increase in income from gain on sale of loans.

Net revenue⁽¹⁾ totaled $17.4 million for the first quarter of 2025, representing a decrease of $196 thousand, or 1.1%, compared to $17.6 million for the fourth quarter of 2024. Net revenue⁽¹⁾ for the first quarter of 2025 increased $4.2 million, or 31.4%, when compared to $13.2 million for the first quarter of 2024.

Non-interest expense was $10.9 million during the first quarter of 2025, compared to $9.7 million for the fourth quarter of 2024 and $8.4 million for the first quarter of 2024. The Company’s efficiency ratio was 62.8%, compared to 55.4% for the fourth quarter of 2024 and 63.4% for the first quarter of 2024. The increase in non-interest expense from the fourth quarter of 2024 is primarily due to an increase of $587 thousand in employee compensation costs attributable to higher commission expenses related to loan production. The increase in non-interest expense also reflects extraordinary legal, professional, and audit fees incurred to date totaling $1.1 million associated with the preparation and filing of the registration statement with the Securities and Exchange Commission on Forms S-1 and S-1/A, approximately $786 thousand of these expenses were incurred during the first quarter of 2025. Additionally, data processing expenses increased $201 thousand when compared to the fourth quarter of 2024 related mainly to higher credit card volume. The increase in non-interest expense from the first quarter of 2024 was driven by a $1.1 million increase in employee compensation costs due to increased staffing levels, as well as a $1.5 million increase in other expenses due to the previously mentioned legal, professional, and audit fees associated with the registration statement filing and increases in data processing, supplies, and other non-interest expenses to support the growth of the organization.

Income tax expense was $1.2 million for each of the quarters ended March 31, 2025 and December 31, 2024, and $1.1 million for the first quarter of 2024. The Company’s effective tax rate was 21.4% for the quarter ended March 31, 2025 compared to 19.1% for the quarter ended December 31, 2024 and 23.1% for the quarter ended March 31, 2024. The fluctuations in the effective tax rate are largely driven by the timing and volume of certain stock-based compensation transactions resulting in tax benefits to the Company, as well as the timing and volume of state tax adjustments.

Net income was $4.5 million for the first quarter of 2025, a decrease of $774 thousand from $5.2 million for the fourth quarter of 2024, and an increase of $769 thousand from $3.7 million for the first quarter of 2024. Diluted earnings per share totaled $0.31 for the first quarter of 2025, compared to $0.37 for the fourth quarter of 2024 and $0.29 for the first quarter of 2024. Earnings per share and other share-based metrics have been impacted by the shares issued in the previously mentioned Offering.

The Company had 175 full-time equivalent employees as of March 31, 2025, compared to 169 full-time equivalent employees as of December 31, 2024, and 150 full-time equivalent employees as of March 31, 2024.

Balance Sheet

Total loans, net of deferred fees and costs were $843.4 million as of March 31, 2025, compared to $816.0 million as of December 31, 2024, and $733.6 million as of March 31, 2024. Loans, net of deferred fees and costs increased $27.4 million during the first quarter of 2025 as increases in commercial real estate loans more than offset decreases in commercial and industrial and residential loans. The increase in loans, net of deferred fees and costs of $109.8 million from March 31, 2024 was primarily driven by increases of $97.7 million in commercial real estate loans. Total guaranteed loans as a percentage of loans⁽¹⁾ were 24.2% as of March 31, 2025, compared to 24.7% as of December 31, 2024, and 29.8% as of March 31, 2024.

The Company’s allowance for credit losses totaled $9.0 million as of March 31, 2025, compared to $9.1 million as of December 31, 2024 and $7.1 million as of March 31, 2024. The allowance for credit losses as a percentage of total loans was 1.07% as of March 31, 2025, compared to 1.12% as of December 31, 2024, and 0.97% as of March 31, 2024. The allowance for loan losses as a percentage of total loans, excluding guaranteed portions⁽¹⁾, was 1.41% as of March 31, 2025, compared to 1.48% as of December 31, 2024, and 1.38% as of March 31, 2024.

Deposits totaled $995.9 million as of March 31, 2025, an increase of $60.9 million from $935.1 million as of December 31, 2024, and an increase of $189.0 million from $806.9 million as of March 31, 2024. By deposit type, the increase from the prior quarter was driven by an increase of $40.7 million in certificates of deposit and a $23.3 million increase in savings and money market accounts. From March 31, 2024, certificates of deposit increased by $83.9 million, and savings and money market accounts increased by $80.5 million. Noninterest-bearing deposits totaled $242.7 million as of March 31, 2025, an increase of $3.0 million from $239.7 million as of December 31, 2024, and an increase of $26.3 million from $216.3 million as of March 31, 2024.

The Company’s ratio of loans to deposits was 84.7% as of March 31, 2025, compared to 87.3% as of December 31, 2024, and 90.9% as of March 31, 2024.

The Company held no short-term borrowings as of March 31, 2025 or December 31, 2024, compared to short term borrowings of $10.0 million as of March 31, 2024. As of March 31, 2025, the Company had approximately $488.3 million in available borrowing capacity from the Federal Reserve Bank, the Federal Home Loan Bank, and through its various Fed Funds lines.

Subordinated notes totaled $26.1 million as of March 31, 2025 and December 31, 2024, compared to $26.0 million as of March 31, 2024.

Stockholders’ equity was $146.6 million as of March 31, 2025, compared to $140.7 million as of December 31, 2024, and $102.6 million as of March 31, 2024. The increase in stockholders’ equity from December 31, 2024 is attributable to increases in retained earnings resulting from net income earned during the quarter. The increase in stockholders’ equity since March 31, 2024 was driven by the previously mentioned Offering, net income earned during the previous twelve months, as well as an increase in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BankCard Services, LLC (“BCS“) during the second quarter of 2024.

The Company’s common equity to tangible assets ratio was 12.3% as of March 31, 2025, compared to 12.5% as of December 31, 2024, and 10.6% as of March 31, 2024. The Bank’s Tier 1 leverage ratio was 14.2% as of March 31, 2025, compared to 12.9% as of December 31, 2024, and 13.0% as of March 31, 2024. The increase in the Bank’s Tier 1 leverage ratio was the result of the downstream of $15.0 million in additional capital from the holding company to the Bank during the first quarter of 2025. The Company’s book value per share was $10.27 as of March 31, 2025, an increase of 4.1% from $9.87 as of December 31, 2024, and an increase of 28.4% from $8.00 as of March 31, 2024. The increase in tangible book value per share from December 31, 2024 is attributable to net income and increases in additional paid in capital resulting from certain stock-based compensation activity during the quarter. The increase since March 31, 2024 is attributable to net income, the Offering, and the increases in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BCS during the second quarter of 2024.

Total assets increased 6.0% to $1.190 billion as of March 31, 2025, from $1.122 billion as of December 31, 2024, and increased 23.5% from $963.4 million as of March 31, 2024. The increase in total assets from December 31, 2024 was primarily driven by increases in loans and interest-bearing deposits with banks. The increase in total assets from March 31, 2024 was primarily driven by increases in loans, interest bearing deposits with banks, and investment securities.

Asset Quality

The provision for credit losses on loans totaled $710 thousand for the first quarter of 2025, compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. Net loan charge-offs in the first quarter of 2025 totaled $828 thousand, or 0.39% of average net loans (annualized), compared to net loan charge-offs of $157 thousand, or 0.07% of average net loans (annualized) in the fourth quarter of 2024 and no net loan charge-offs or recoveries during the first quarter of 2024.

Nonaccrual loans increased $5.1 million during the quarter to $19.2 million as of March 31, 2025, and increased $13.1 million from $6.1 million as of March 31, 2024. Loans past due 90 days and accruing interest totaled $1.2 million as of March 31, 2025, compared to $40 thousand as of December 31, 2024, and $33 thousand as of March 31, 2024. The balance of loans past due 90 days and accruing of $1.2 million at March 31, 2025 was comprised of one commercial real estate loan totaling $1.1 million and certain credit card balances totaling $49 thousand.

The Company held no other real estate owned as of March 31, 2025 or 2024, or December 31, 2024.

Total non-performing assets totaled $20.4 million as of March 31, 2025, an increase of $6.2 million from $14.2 million as of December 31, 2024, and an increase of $14.2 million from $6.1 million as of March 31, 2024. Non-performing assets, excluding guaranteed portions, totaled $5.7 million as of March 31, 2025, an increase of $839 thousand from $4.8 million as of December 31, 2024 and an increase of $4.1 million from $1.6 million as of March 31, 2024.

Loans past due between 30 and 89 days and accruing interest totaled $14.9 million as of March 31, 2025, an increase of $3.0 million from $11.8 million as of December 31, 2024, and an increase of $11.4 million from $3.4 million as of March 31, 2024. The guaranteed portion of loans past due between 30 and 89 days and accruing interest totaled $11.9 million as of March 31, 2025.

The ratio of total non-performing assets to total assets was 1.71% as of March 31, 2025, compared to 1.26% as of December 31, 2024, and 0.64% as of March 31, 2024. The ratio of non-performing assets, excluding guaranteed portions, to total assets⁽¹⁾ was 0.48% as of March 31, 2025, compared to 0.43% as of December 31, 2024, and 0.16% as of March 31, 2024.

Other Financial Highlights

SBA Lending and Commercial Banking

SBA Lending and Commercial Banking loan originations totaled $133.0 million for the first quarter of 2025, compared to $120.0 million for the fourth quarter of 2024 and $136.6 million for the first quarter of 2024. Loan sale volume decreased to $68.7 million during the first quarter of 2025, compared to $98.5 million for the fourth quarter of 2024, and increased slightly from $68.6 million during the first quarter of 2024. Gain on sale of loans decreased 36.5% to $2.5 million, compared to $4.0 million for the fourth quarter of 2024, and increased 21.8% from $2.1 million for the first quarter of 2024. The average pretax gain on sale of loans margin was 3.69% for the first quarter of 2025, compared to 4.06% for the fourth quarter of 2024 and 3.04% for the first quarter of 2024.

Gaming FinTech

GBank’s partner, BCS, has been actively developing its pipeline of Pooled Player and Pooled Consumer Accounts “Powered by PIMS and CIMS”™. BCS is currently onboarding three new programs. BCS is working with two gaming operators as a part of the latest Product Express partnership with MasterCard and i2c announced during the third quarter of 2024. One client is a cash access service provider in the casino industry and the other is a social gaming operator. Both are working to onboard their prepaid issuing program through this partnership. These programs are expected to be active early in the second quarter of 2025. BCS has executed an additional card issuing agreement with a client offering prepaid access services for cashless venues nationwide. This program went live in the first quarter of 2025. Additionally, the BoltBetz slot machine application is now expected to be fully live in the second quarter of 2025.

BCS and GBank now have seventeen active payment and PPA/PCA clients. Currently, BCS and GBank are conducting due diligence for three new clients, with anticipated onboarding in future quarters. Gaming FinTech deposits averaged $37.1 million for the first quarter of 2025, compared to $30.5 million for the fourth quarter of 2024.

The Bank launched its GBank Visa Signature® Card in the second quarter of 2023 for prime and super-prime consumers, offering one percent cash rewards on gaming transactions and two percent cash rewards on all other purchases.

Credit card charge transactions were $105.6 million for the first quarter of 2025, compared to $51.7 million for the fourth quarter of 2024 and $1.1 million for the first quarter of 2024. Credit card balances were $2.3 million as of March 31, 2025, compared to $1.6 million as of December 31, 2024 and $542 thousand as of March 31, 2024. Through March 31, 2025, and since launch, the Bank has processed over $172 million in gaming transactions through its credit card product.

GBank continues to develop and improve its operational credit card systems, including the internal implementation of application landing pages and internal customer service resources. These efforts are a continuation of the Company’s ongoing strategy to ultimately manage all systems directly as opposed to relying on outsourced third parties. Direct control over these critical resources has become more important as we focus are executing on new marketing agreements, create significant additional social media presence, and require related product systems with the ability to perform on a mass scale. Implementation and testing of these initiatives is currently underway with completion anticipated during the third quarter of 2025, which is expected to cause slowing growth in credit card transactions and growth over the short-term.

Non-Voting Equity Investment in BankCard Services, LLC

On June 26, 2024, the Company announced the acquisition of a 32.99% non-voting equity interest in BCS. This acquisition was completed by exchanging 231,508 shares of restricted, non-voting GBFH common stock for 143,371 shares of non-voting BCS common stock. The GBFH non-voting stock must be held by BCS for a minimum of one year and can only be converted into voting shares upon a disposition by BCS, in accordance with applicable Federal Reserve regulations.

Earnings Call

The Company will host its first quarter 2025 earnings call on Wednesday, April 30, 2025, at 10:00 a.m. PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance.

Interested parties may join online, via the ZOOM app on their smartphones, or by telephone:

ZOOM Conference ID 826 3030 7240
Passcode: 549549

Joining by ZOOM Conference (audio only):

Log in on your computer at
https://us02web.zoom.us/j/82630307240?pwd=TU4yZXJqMEc2VGZoUm5rRTl0OVFxdz09
or use the ZOOM app on your smartphone.

Joining by Telephone

Dial (408) 638-0968. The conference ID is 826 3030 7240. Passcode: 549549.

Click here to learn more about GBank Financial Holdings Inc.

Notice Regarding Disclosures and Forward-Looking Statements

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”). This announcement is being issued in accordance with Rule 135 under the Securities Act.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding certain of the Company’s goals and expectations with respect to future events that are subject to various risks and uncertainties, and statements preceded by, followed by, or that include the words “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions. These statements are based upon the current belief and expectations of the Company’s management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations include, but are not limited to: the impact on us or our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; regulatory considerations; our ability to recognize the expected benefits and synergies of our completed acquisitions; the maintenance and development of well-established and valued client relationships and referral source relationships; acquisition or loss of key production personnel; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. These forward-looking statements are based on current information and/or management’s good faith belief as to future events. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The forward-looking statements are made as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

GBank Financial Holdings Inc.
9115 West Russell Road, Suite 110
Las Vegas, Nevada 89148
https://www.gbankfinancialholdings.com/

FIRST QUARTER 2025 FINANCIAL RESULTS (UNAUDITED)

Quarter Highlights:
Net Income	Earnings per diluted share	Net revenue⁽¹⁾	Net interest margin	On-balance sheet guaranteed loans	Book value per common share
$4.5 million	$0.31	$17.4 million	4.47%	$245.6 million	$10.27

CEO COMMENTARY:

“Our results reflect a continuation of strong earnings, with Company revenues absorbing elevated one-time costs, including SEC related audit, accounting, and legal expenses, which have now totaled approximately $1.1 million to date,” stated T. Ryan Sullivan, President/CEO

LINKED QUARTER BASIS

QTD YEAR-OVER-YEAR

FINANCIAL HIGHLIGHTS:
Net income of $4.5 million and earnings per diluted share of $0.31, compared to $5.2 million and $0.37, respectively Net interest income of $11.9 million, an increase of 0.9%, or $105 thousand	Net income of $4.5 million and earnings per diluted share of $0.31, compared to $3.7 million and $0.29, respectively Net interest income of $11.9 million, an increase of 10.1%, or $1.1 million
Gain on sale of loans of $2.5 million, a decrease of 36.5%, or $1.5 million	Gain on sale of loans of $2.5 million, an increase of 21.8%, or $454 thousand
Noninterest income of $5.5 million, a decrease of 5.2%, or $301 thousand	Noninterest income of $5.5 million, an increase of 127.2%, or $3.1 million
Net revenue⁽¹⁾ of $17.4 million, a decrease of 1.1%, or $196 thousand	Net revenue⁽¹⁾ of $17.4 million, an increase of 31.4%, or $4.2 million
Noninterest expense of $10.9 million, an increase of 12.2%, or $1.2 million	Noninterest expense of $10.9 million, an increase of 30.2%, or $2.5 million

FINANCIAL POSITION RESULTS:
On-balance sheet guaranteed loans of $245.6 million, an increase of 5.0%, or $11.6 million	On-balance sheet guaranteed loans of $245.6 million, a decrease of 6.8%, or $18.0 million
Total deposits of $996.0 million, an increase of 6.5%, or $60.9 million	Total deposits of $996.0 million, an increase of 23.4%, or $189.0 million
Stockholders’ equity of $146.6 million, an increase of 4.2%, or $5.9 million	Stockholders’ equity of $146.6 million, an increase of 42.9%, or $44.0 million

LOANS AND ASSET QUALITY:
Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 1.26% Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.43%	Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 0.64% Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.16%
ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.48%	ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.38%

KEY PERFORMANCE METRICS:
Net interest margin decreased to 4.47%, compared to 4.53%	Net interest margin decreased to 4.47%, compared to 4.85%
Loan originations of $133.0 million, an increase of 10.9%, or $13.0 million	Loan originations of $133.0 million, a decrease of 2.7%, or $3.6 million
Return on average assets and equity was 1.61% and 12.59%, compared to 1.93% and 15.13%, respectively	Return on average assets and equity was 1.61% and 12.59%, compared to 1.59% and 14.67%, respectively
Book value per share of $10.27, an increase of 4.1% from $9.87	Book value per share of $10.27, an increase of 28.4% from $8.00

GBank Financial Holdings Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

																Linked Quarter					Quarter YOY
																3/31/25 vs. 12/31/24					3/31/25 vs. 3/31/24
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			$ Var			% Var		$ Var			% Var
Assets
Cash and Due From Banks	$	6,701		$	9,262		$	5,798		$	5,409		$	8,334		$	(2,561	)	-27.6	%	$	(1,633	)	-19.6	%
Interest-Bearing Deposits With Other Financial Institutions		140,270			114,860			65,160			82,749			45,844			25,410		22.1	%		94,426		206.0	%
Total Cash and Cash Equivalents		146,971			124,122			70,958			88,158			54,178			22,849		18.4	%		92,793		171.3	%

Investment Securities:
Available For Sale, at Fair Value		71,468			65,609			39,381			2,330			2,588			5,859		8.9	%		68,880		2661.5	%
Held to Maturity, at Amortized Cost		39,903			40,569			46,043			56,520			86,999			(666	)	-1.6	%		(47,096	)	-54.1	%

Loans Held For Sale		41,313			32,649			68,317			40,489			44,901			8,664		26.5	%		(3,588	)	-8.0	%
Loans, Net of Deferred Fees and Costs:
Commercial and Industrial		56,885			64,000			53,490			50,498			46,863			(7,115	)	-11.1	%		10,022		21.4	%
Commercial Real Estate – Non-owner Occupied		672,379			630,551			607,864			583,463			546,408			41,828		6.6	%		125,971		23.1	%
Commercial Real Estate – Owner Occupied		81,768			88,802			86,785			106,595			110,065			(7,034	)	-7.9	%		(28,297	)	-25.7	%
Construction and Land Development		3,201			2,934			2,161			529			386			267		9.1	%		2,815		729.3	%
Multifamily		19,011			17,374			17,398			17,420			17,037			1,637		9.4	%		1,974		11.6	%
Residential		7,619			10,584			12,025			13,443			12,281			(2,965	)	-28.0	%		(4,662	)	-38.0	%
Consumer		2,502			1,713			1,276			909			549			789		46.1	%		1,953		355.7	%
Total Loans, Net of Deferred Fees and Costs		843,365			815,958			780,999			772,857			733,589			27,407		3.4	%		109,776		15.0	%
Less: Allowance for Credit Losses		(8,997	)		(9,114	)		(7,934	)		(7,342	)		(7,088	)		117		-1.3	%		(1,909	)	26.9	%
Total Net Loans		834,368			806,844			773,065			765,515			726,501			27,524		3.4	%		107,867		14.8	%

Loan Servicing Asset		9,231			8,976			8,046			7,698			7,124			255		2.8	%		2,107		29.6	%
Restricted Investment in Bank Stock		4,652			4,652			4,652			4,652			3,222			–		0.0	%		1,430		44.4	%
All Other Assets		42,106			38,943			37,540			43,992			37,937			3,163		8.1	%		4,169		11.0	%
Total Assets	$	1,190,012		$	1,122,364		$	1,048,002		$	1,009,354		$	963,450		$	67,648		6.0	%	$	226,562		23.5	%
Liabilities
Non-Interest Bearing Demand	$	242,650		$	239,672		$	229,875		$	220,438		$	216,307		$	2,978		1.2	%	$	26,343		12.2	%
Interest Bearing Demand		62,035			68,132			65,623			65,120			63,740			(6,097	)	-8.9	%		(1,705	)	-2.7	%
Savings and Money Market		280,056			256,724			244,091			222,115			199,549			23,332		9.1	%		80,507		40.3	%
Certificates of Deposit		411,201			370,552			343,931			332,695			327,326			40,649		11.0	%		83,875		25.6	%
Total Deposits		995,942			935,080			883,520			840,368			806,922			60,862		6.5	%		189,020		23.4	%

Short-Term Borrowings		–			–			–			12,000			10,000			–		0.0	%		(10,000	)	-100.0	%
Subordinated Debt		26,107			26,088			26,070			26,051			26,032			19		0.1	%		75		0.3	%
Operating Lease Liability		6,299			4,839			5,032			5,221			5,409			1,460		30.2	%		890		16.5	%
Other Liabilities		15,048			15,657			16,997			14,769			12,521			(609	)	-3.9	%		2,527		20.2	%
Total Liabilities		1,043,396			981,664			931,619			898,409			860,884			61,732		6.3	%		182,512		21.2	%

Equity
Common Stock		1			1			1			1			1			–		0.0	%		–		0.0	%
Additional Paid-in Capital		78,718			77,571			57,287			56,966			53,322			1,147		1.5	%		25,396		47.6	%
Retained Earnings		68,906			64,437			59,192			54,177			49,501			4,469		6.9	%		19,405		39.2	%
Accumulated Other Comprehensive Loss		(1,009	)		(1,309	)		(97	)		(199	)		(258	)		300		-22.9	%		(751	)	291.1	%
Total Stockholders’ Equity		146,616			140,700			116,383			110,945			102,566			5,916		4.2	%		44,050		42.9	%
Total Liabilities & Stockholders’ Equity	$	1,190,012		$	1,122,364		$	1,048,002		$	1,009,354		$	963,450		$	67,648		6.0	%	$	226,562		23.5	%

Book Value Per Common Share	$	10.27		$	9.87		$	8.91		$	8.49		$	8.00		$	0.40		4.1	%	$	2.27		28.4	%

GBank Financial Holdings Inc.
Condensed Consolidated Income Statements
(Unaudited)

	Three Months Ended
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Interest Income
Loans	$	16,836		$	17,231		$	17,347		$	16,360		$	15,330
Deposits With Other Financial Institutions		1,192			1,099			1,367			1,165			972
Investment Securities		1,281			1,177			924			868			1,014
Other Interest Bearing Balances		100			103			102			96			74
Total Interest Income		19,409			19,610			19,740			18,489			17,390

Interest Expense
Deposits		7,230			7,535			7,194			6,848			6,198
Short-term Borrowings and Subordinated Debt		285			286			287			293			390
Total Interest Expense		7,515			7,821			7,481			7,141			6,588

Net Interest Income		11,894			11,789			12,259			11,348			10,802
Provision for Credit Losses – Loans		(710	)		(1,337	)		(570	)		(283	)		–
Provision for Credit Losses – Unfunded Commitments		(11	)		(13	)		(8	)		(12	)		(20	)
Net Interest Income after Provision for Credit Losses		11,173			10,439			11,681			11,053			10,782

Other Income
Gain on Sales of Loans		2,537			3,998			2,838			3,163			2,083
Loan Servicing Income		703			597			566			534			60
Service Charges and Fees		56			54			48			41			41
Net Interchange Fees		2,003			947			284			146			20
Other Income		164			168			166			282			201
Total Other Income		5,463			5,764			3,902			4,166			2,405

Noninterest Expenses
Salaries and Employee Benefits		6,400			5,813			5,495			5,752			5,290
Occupancy Expenses		392			398			404			417			447
Other Expenses		4,115			3,509			3,156			2,963			2,637
Total Noninterest Expenses		10,907			9,720			9,055			9,132			8,374

Income Before Provision For Income Taxes		5,729			6,483			6,528			6,087			4,813
Provision For Income Taxes		(1,224	)		(1,239	)		(1,513	)		(1,411	)		(1,112	)
Net Income Before Equity Investment Loss		4,505			5,244			5,015			4,676			3,701
Net Loss Attributable to Equity Investment		(35	)		–			–			–			–
Net Income	$	4,470		$	5,244		$	5,015		$	4,676		$	3,701

Earnings Per Share	$	0.31		$	0.37		$	0.38		$	0.36		$	0.29
Earnings Per Share (Diluted)	$	0.31		$	0.37		$	0.38		$	0.36		$	0.29

GBank Financial Holdings Inc.
Average Balances, Rates, and Interest Income and Expense
(Unaudited)

				For the Three Months Ended
				March 31, 2025						December 31, 2024						March 31, 2024
(Dollars in thousands)				Average				Yield/		Average				Yield/		Average				Yield/
				Balance		Interest		Rate⁽²⁾		Balance		Interest		Rate⁽²⁾		Balance		Interest		Rate⁽²⁾
ASSETS:
	Interest Bearing Deposits			$	102,628	$	1,192	4.71	%	$	85,424	$	1,099	5.12	%	$	66,100	$	972	5.91	%
	Investment Securities:
		Taxable			105,222		1,281	4.94	%		98,712		1,177	4.74	%		98,084		1,014	4.16	%
	Loans and Loans Held For Sale				866,690		16,836	7.88	%		846,583		17,231	8.10	%		727,786		15,330	8.47	%
	Restricted Investment in Bank Stock				4,652		100	8.72	%		4,652		103	8.81	%		3,222		74	9.24	%
		Total Earning Assets			1,079,192		19,409	7.29	%		1,035,371		19,610	7.53	%		895,192		17,390	7.81	%

	Cash and Due From Banks				6,216						5,938						5,935
	Other Assets				39,177						38,753						33,602
			Total Assets	$	1,124,585					$	1,080,062					$	934,729

LIABILITIES & SHAREHOLDERS’ EQUITY
	Deposits:
		Interest-bearing Demand		$	65,693	$	355	2.19	%	$	64,453	$	385	2.38	%	$	65,303	$	393	2.42	%
		Money Market and Savings			264,085		2,411	3.70	%		255,068		2,496	3.89	%		186,372		1,759	3.80	%
		Certificates of Deposit			385,704		4,464	4.69	%		359,285		4,654	5.15	%		309,221		4,046	5.26	%
			Total Interest-Bearing Deposits		715,482		7,230	4.10	%		678,806		7,535	4.42	%		560,896		6,198	4.44	%

	Short-Term Borrowings				–		–	0.00	%		2		–	0.00	%		7,583		104	5.52	%
	Subordinated Debt				26,095		285	4.43	%		26,076		286	4.36	%		26,021		286	4.42	%
			Total Interest-Bearing Liabilities		741,577		7,515	4.11	%		704,884		7,821	4.41	%		594,500		6,588	4.46	%

	Noninterest-bearing Deposits				218,874						214,880						220,767
	Other Liabilities				20,139						22,403						18,003
	Shareholders’ Equity				143,995						137,895						101,459
			Total Liabilities & Shareholders’ Equity	$	1,124,585					$	1,080,062					$	934,729

	Net Interest Income					$	11,894					$	11,789					$	10,802

	Total Yield on Earning Assets							7.29	%					7.53	%					7.81	%
	Cost on Interest-Bearing Liabilities							4.11	%					4.41	%					4.46	%
	Average Interest Spread							3.18	%					3.12	%					3.35	%
	Net Interest Margin							4.47	%					4.53	%					4.85	%
	Net Interest Margin (Bank Only)							4.58	%					4.64	%					4.98	%

GBank Financial Holdings Inc.
Additional Financial Information
(Unaudited)

	Three Months Ended
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024

Key Performance Metrics
Return on Average Assets-Net Income ⁽²⁾		1.61	%		1.93	%		1.96	%		1.90	%		1.59	%
Return on Average Stockholders’ Equity⁽²⁾		12.59	%		15.13	%		17.29	%		17.59	%		14.67	%
Efficiency Ratio		62.84	%		55.38	%		56.03	%		58.86	%		63.41	%
Net Interest Margin⁽²⁾		4.47	%		4.53	%		5.00	%		4.82	%		4.85	%
Net Revenue⁽¹⁾	$	17,357		$	17,553		$	16,161		$	15,514		$	13,207
Common Equity / Assets		12.3	%		12.5	%		11.1	%		11.0	%		10.6	%
Tier 1 Leverage Ratio – Bank		14.23	%		12.90	%		13.08	%		12.88	%		13.03	%

Selected Loan Metrics
Guaranteed Portion of Loans Held for Sale	$	41,313		$	32,649		$	68,317		$	40,489		$	44,901
Guaranteed Portion of Loans Held for Investment		204,239			201,267			203,027			215,382			218,619
Total Guaranteed Loans		245,552			233,916			271,344			255,871			263,520
Guaranteed Loans as a Percent of Loans⁽¹⁾		24.2	%		24.7	%		26.0	%		27.9	%		29.8	%

Asset Quality
Total nonaccrual loans	$	19,220		$	14,128		$	5,381		$	6,470		$	6,096
Loans past due 90 days and still accruing		1,153			40			27			1,142			33
Other real estate owned		–			–			–			–			–
Total non-performing assets		20,373			14,168			5,408			7,612			6,129
Non-performing assets: guaranteed portion		14,687			9,321			3,838			5,396			4,572
Non-performing assets: non-guaranteed portion		5,686			4,847			1,570			2,216			1,557

Non-performing assets to total assets		1.71	%		1.26	%		0.52	%		0.75	%		0.64	%
Non-performing assets, excluding guaranteed, to total assets⁽¹⁾		0.48	%		0.43	%		0.15	%		0.22	%		0.16	%
Net charge-offs (recoveries)	$	828		$	157		$	(22	)	$	29		$	–

Loans past due 30-89 days and accruing	$	14,853		$	11,822		$	12,390		$	1,054		$	3,428
Loans past due 30-89 days and accruing: guaranteed portion	$	11,915		$	8,713		$	8,535		$	–		$	1,028
Loans past due 30-89 days and accruing: non-guaranteed portion	$	2,938		$	3,109		$	3,855		$	1,054		$	2,400

Allowance for Credit Losses (ACL)	$	8,997		$	9,114		$	7,934		$	7,342		$	7,088
Nonaccrual loans	$	19,220		$	14,128		$	5,381		$	6,470		$	6,096
ACL to nonaccrual loans		47	%		65	%		147	%		113	%		116	%
ACL to nonaccrual loans, excluding guaranteed⁽¹⁾		168	%		190	%		514	%		130	%		465	%
ACL to loans		1.07	%		1.12	%		1.02	%		0.95	%		0.97	%
ACL to loans, excluding guaranteed⁽¹⁾		1.41	%		1.48	%		1.37	%		1.32	%		1.38	%

Book Value
Stockholders’ Equity	$	146,616		$	140,700		$	116,383		$	110,945		$	102,566
Common shares outstanding		14,271			14,252			13,067			13,061			12,824
Book value per common share	$	10.27		$	9.87		$	8.91		$	8.49		$	8.00
Employees – FTE		175			169			159			155			150

GBank Financial Holdings Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

	Three Months Ended
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024

Net Revenue⁽³⁾
Net Interest Income	$	11,894		$	11,789		$	12,259		$	11,348		$	10,802
Non-Interest Income		5,463			5,764			3,902			4,166			2,405
Net Revenue	$	17,357		$	17,553		$	16,161		$	15,514		$	13,207

Guaranteed Loans as a Percent of Loans⁽⁴⁾
SBA and USDA Guaranteed Loans	$	204,239		$	201,267		$	203,027		$	215,382		$	218,619
Loans, Net of Deferred Fees and Costs		843,365			815,958			780,999			772,857			733,589
Guaranteed Loans as a % of Loans		24.2	%		24.7	%		26.0	%		27.9	%		29.8	%

Non-performing assets, excluding guaranteed, to total assets⁽⁴⁾
Non-performing assets	$	20,373		$	14,168		$	5,408		$	7,612		$	6,129
Less: SBA and USDA guaranteed portions of non-performing assets		14,687			9,321			3,838			5,396			4,572
Non-performing assets, excluding guaranteed portions		5,686			4,847			1,570			2,216			1,557
Total assets		1,190,012			1,122,364			1,048,002			1,009,354			963,450
Non-performing assets, excluding guaranteed, to total assets		0.48	%		0.43	%		0.15	%		0.22	%		0.16	%

Allowance for credit losses (ACL) to nonaccrual loans, excluding guaranteed⁽⁴⁾
Nonaccrual loans	$	19,220		$	14,128		$	5,381		$	6,470		$	6,096
Less: SBA and USDA guaranteed portions of nonaccrual loans		13,859			9,321			3,838			833			4,572
Nonaccrual loans, excluding guaranteed portions		5,361			4,807			1,543			5,637			1,524
ACL to nonaccrual loans, excluding guaranteed		168	%		190	%		514	%		130	%		465	%

ACL to loans, excluding guaranteed⁽⁴⁾
Loans, net of deferred fees and costs	$	843,365		$	815,958		$	780,999		$	772,857		$	733,589
Less: SBA and USDA guaranteed portions of loans		204,239			201,267			203,027			215,382			218,619
Loans, excluding guaranteed		639,126			614,691			577,972			557,475			514,970
ACL to loans, excluding guaranteed		1.41	%		1.48	%		1.37	%		1.32	%		1.38	%

	⁽¹⁾	See Reconciliation of Non-GAAP Financial Measures
	⁽²⁾	Ratios are annualized on an actual/actual basis
	⁽³⁾	We believe this non-GAAP measurement presents trends in income generation of the Company.
	⁽⁴⁾	We believe these non-GAAP measurements provide useful metrics regarding the at-risk assets of the Company.

The MIL Network –

April 30, 2025

MIL-OSI Economics: US VC funding surges by more than 50% YoY to $37.6 billion in Q1 2025, finds GlobalData

Source: GlobalData

US VC funding surges by more than 50% YoY to $37.6 billion in Q1 2025, finds GlobalData

Posted in Business Fundamentals

The US venture capital (VC) landscape reflected a complex interplay of declining deal volume and rising deal value in the first quarter (Q1) of 2025, signaling a strategic pivot among investors towards high-quality opportunities. In Q1 2025, the US recorded a modest decrease of around 3.5% year-on-year (Y-o-Y) in VC deal volume. However, this decline in deal volume contrasts sharply with the substantial growth in deal value, which surged by more than 50% to $37.6 billion, according to GlobalData, a leading data and analytics company.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “This divergence suggests a strategic shift among investors, who appear to be concentrating their resources on fewer, but more promising, ventures. The trend indicates a scenario, where quality is prioritized over quantity, reflecting a more discerning investment approach.”

Globally, VC funding has experienced a notable contraction in terms of volume during Q1 2025, with the total number of VC deals decreasing by about 8% Y-o-Y. Meanwhile, the US showed relative resilience compared to its counterparts, many of which registered double-digit declines. For instance, China and the UK saw respective VC deal volumes fall by around 18% and 13% during Q1 2025 compared to Q1 2024.

Meanwhile, China also saw its VC deal value plummet by over 50%, whereas the US not only showcased growth but also expanded its share significantly, highlighting the stark contrast in market dynamics between some of the leading economies.

An analysis of GlobalData’s Deals Database revealed that the US’ share of the global VC funding value increased from 43% in Q1 2024 to 58% in Q1 2025. Meanwhile, the US also accounted for an approximately 30% share of the total number of VC deals announced globally in Q1 2025.

Bose concludes: “The US continues to assert its dominance in the global VC funding landscape. The market’s ability to attract substantial capital positions it as a resilient hub for venture capital, capable of weathering economic uncertainties while continuing to foster innovation. Investors and startups alike will be keenly watching how these trends unfold in the coming quarters, as the market adapts to new challenges and opportunities.”

Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain

MIL OSI Economics –

April 30, 2025

MIL-OSI USA: SBA Announces 2025 National Small Business Week Virtual Summit Agenda

Source: United States Small Business Administration

WASHINGTON — Today, the U.S. Small Business Administration announced the agenda for the National Small Business Week Virtual Summit, a free online event that will be held May 6-7. Registration is required. The Virtual Summit, co-sponsored by SCORE, will feature more than a dozen educational workshops led by cosponsors, access to federal resources, and networking and mentorship opportunities. The virtual summit is part of the 2025 National Small Business Week taking place May 4-10.

“As America’s top provider of free, expert small business mentoring, SCORE is proud to help drive the nation’s small business engine,” said SCORE CEO Bridget Weston. “Through this year’s Virtual Summit, we will meet entrepreneurs where they are, providing expert insights on timely topics alongside the tools and resources needed to achieve success.”

National Small Business Week cosponsors VISA, T-Mobile, Google, Verizon, Paychex, U.S. Bank, Amazon, Constant Contact, Block, Chase for Business, Lockheed Martin and Worldpay lead the sessions. View the schedule online or as a PDF.

The National Small Business Week Virtual Summit is part of SBA’s year-round efforts to leverage technology to reach small business owners in communities across America. An in-person, national award celebration will take place on May 5 in Washington, D.C., and local winners will be recognized at award events across the nation.

Details on National Small Business Week, the virtual summit, registration and speakers are featured on www.sba.gov/NSBW and will be updated as additional information and activities are confirmed. Local events will be featured on www.sba.gov/events and are identifiable by searching with #SmallBusinessWeek.

# # #

About SCORE
SCORE, the nation’s largest network of volunteer, expert business mentors, is dedicated to helping small businesses get off the ground, grow and achieve their goals. Since 1964, SCORE has provided education and mentorship to more than 11 million entrepreneurs. SCORE is a 501(c)(3) nonprofit organization and a resource partner of the U.S. Small Business Administration.

About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

Cosponsorship Authorization #24-44-C. SBA’s participation in this Cosponsored Activity is not an endorsement of the views, opinions, products or services of any Cosponsor or other person or entity. All SBA programs and services are extended to the public on a nondiscriminatory basis.

MIL OSI USA News –

April 30, 2025

MIL-OSI: Sound Financial Bancorp, Inc. Q1 2025 Results

Source: GlobeNewswire (MIL-OSI)

SEATTLE, April 29, 2025 (GLOBE NEWSWIRE) — Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.2 million for the quarter ended March 31, 2025, or $0.45 diluted earnings per share, as compared to net income of $1.9 million, or $0.74 diluted earnings per share, for the quarter ended December 31, 2024, and $770 thousand, or $0.30 diluted earnings per share, for the quarter ended March 31, 2024. The Company also announced today that its Board of Directors declared a cash dividend on the Company’s common stock of $0.19 per share, payable on May 23, 2025 to stockholders of record as of the close of business on May 9, 2025.

Comments from the President / Chief Executive Officer and Chief Financial Officer

“Despite ongoing economic uncertainty, we remained focused on lowering our cost of deposits and originating new loans at higher rates, which contributed to a 12-basis point improvement in our net interest margin compared to the prior quarter. This reflects the team’s strong efforts to build full banking relationships by addressing both the lending and deposit needs of our consumer and business clients,” remarked Laurie Stewart, President and Chief Executive Officer.

“We continue to prioritize expense management, even though expenses increased compared to the previous quarter. The quarter-over-quarter increase was largely due to typical year-end accrual adjustments and annual expenses that are recognized in the first quarter. However, when compared to the first quarter of 2024, we have seen reductions in combined salaries and benefits, and operational expenses, thanks to our investments in technology. We also expect the year-over-year growth in data processing costs to moderate as the year progresses,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

Mr. Ochs continued, “While we did see an increase in nonperforming loans this quarter mainly due to two specific credits, one of which has since been repaid, we have not observed broader signs of stress in the loan portfolio. Importantly, we also successfully exited a $17 million loan that had been rated as special mention, which contributed to the decline in overall loan balances. Notably, 83% of our nonperforming loans are tied to just four loans, each with its own unique circumstances. These loans are well-secured, and we are actively working toward resolutions in the near-term.”


Q1 2025 Financial Performance
Total assets increased $75.6 million or 7.6% to $1.07 billion at March 31, 2025, from $993.6 million at December 31, 2024, and decreased $17.5 million or 1.6% from $1.09 billion at March 31, 2024.				Net interest income decreased $149 thousand or 1.8% to $8.1 million for the quarter ended March 31, 2025, from $8.2 million for the quarter ended December 31, 2024, and increased $611 thousand or 8.2% from $7.5 million for the quarter ended March 31, 2024.

Loans held-for-portfolio decreased $13.9 million or 1.5% to $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024, and decreased $11.7 million or 1.3% from $897.9 million at March 31, 2024.				Net interest margin (“NIM”), annualized, was 3.25% for the quarter ended March 31, 2025, compared to 3.13% for the quarter ended December 31, 2024 and 2.95% for the quarter ended March 31, 2024.

Total deposits increased $72.5 million or 8.7% to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024, and decreased $6.5 million or 0.7% from $916.9 million at March 31, 2024. Noninterest-bearing deposits decreased $5.8 million or 4.4% to $126.7 million at March 31, 2025 compared to $132.5 million at December 31, 2024, and decreased $2.0 million or 1.5% compared to $128.7 million at March 31, 2024.				A $203 thousand release of provision for credit losses was recorded for the quarter ended March 31, 2025, compared to a $14 thousand provision and a $33 thousand release of provision for credit losses for the quarters ended December 31, 2024 and March 31, 2024, respectively. At March 31, 2025, the allowance for credit losses on loans to total loans outstanding was 0.95%, compared to 0.94% at December 31, 2024 and 0.96% at March 31, 2024.

The loans-to-deposits ratio was 98% at March 31, 2025, compared to 108% at December 31, 2024 and 98% at March 31, 2024.				Total noninterest income decreased $62 thousand or 5.3% to $1.1 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and was virtually unchanged compared to the quarter ended March 31, 2024.

Total nonperforming loans increased $2.2 million or 28.9% to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024, and increased $600 thousand or 6.6% from $9.1 million at March 31, 2024. Nonperforming loans to total loans was 1.09% and the allowance for credit losses on loans to total nonperforming loans was 86.95% at March 31, 2025.				Total noninterest expense increased $856 thousand or 12.1% to $7.9 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and increased $258 thousand or 3.4% compared to the quarter ended March 31, 2024.

				The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at March 31, 2025.

Operating Results

Net Interest Income after (Release of) Provision for Credit Losses

	For the Quarter Ended								Q1 2025 vs. Q4 2024					Q1 2025 vs. Q1 2024
	March 31, 2025			December 31, 2024		March 31, 2024			Amount ($)			Percentage (%)		Amount ($)			Percentage (%)
	(Dollars in thousands, unaudited)
Interest income	$	13,706		$	14,736	$	13,760		$	(1,030	)	(7.0)	%	$	(54	)	(0.4)	%
Interest expense		5,635			6,516		6,300			(881	)	(13.5)	%		(665	)	(10.6)	%
Net interest income		8,071			8,220		7,460			(149	)	(1.8)	%		611		8.2	%
(Release of) provision for credit losses		(203	)		14		(33	)		(217	)	(1550.0)	%		(170	)	515.2	%
Net interest income after (release of) provision for credit losses		8,274			8,206		7,493			68		0.8	%		781		10.4	%

Q1 2025 vs Q4 2024

The decrease in interest income from the prior quarter was primarily due to a lower average balance of loans, investments and interest-earning cash, an eight basis point decline in the average yield on loans, a 41 basis point decline in the average yield on interest-bearing cash, and a 57 basis point decline in the average yield on investments.

Interest income on loans decreased $482 thousand, or 3.7%, to $12.6 million for the quarter ended March 31, 2025, compared to $13.1 million for the quarter ended December 31, 2024. The average balance of total loans was $896.8 million for the quarter ended March 31, 2025, down from $900.8 million for the quarter ended December 31, 2024. The decrease in the average balance of total loans was primarily due to declines in construction and land loans and one-to-four family loans, offset by growth in commercial and multifamily loans and home equity loans. The average balances for manufactured home loans, floating home loans, commercial business loans, and other consumer loans remained relatively flat from the fourth quarter of 2024. The average yield on total loans was 5.69% for the quarter ended March 31, 2025, down from 5.77% for the quarter ended December 31, 2024. The decline was primarily due to interest that was reversed on nonaccrual loans during the first quarter, as well as interest that had been recognized on those loans in the fourth quarter. This was partly offset by new loans being made at higher interest rates and some variable-rate loans adjusting upward. Interest income on investments was $108 thousand for the quarter ended March 31, 2025, compared to $132 thousand for the quarter ended December 31, 2024. Interest income on interest-bearing cash decreased $524 thousand to $1.0 million for the quarter ended March 31, 2025, compared to $1.5 million for the quarter ended December 31, 2024. This decrease was a result of both lower average yields and average balances during the quarter.

The decrease in interest expense during the current quarter from the prior quarter was primarily the result of lower average balances and rates paid on all categories of interest-bearing deposits. The average cost of deposits was 2.37% for the quarter ended March 31, 2025, down from 2.58% for the quarter ended December 31, 2024 as higher costing deposits repriced lower due to market interest rate cuts beginning in September 2024. The average cost of FHLB advances was 4.25% for the quarter ended March 31, 2025, down from 4.31% for the quarter ended December 31, 2024.

A release of provision for credit losses of $203 thousand was recorded for the quarter ended March 31, 2025, consisting of a release of provision for credit losses on loans of $85 thousand and a release of provision for credit losses on unfunded loan commitments of $118 thousand. This compared to a provision for credit losses of $14 thousand for the quarter ended December 31, 2024, consisting of a release of provision for credit losses on loans of $73 thousand and a provision for credit losses on unfunded loan commitments of $87 thousand. The decrease in the provision for credit losses for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024 resulted primarily from a smaller loan portfolio and a reduced balance of unfunded commitments, partially offset by an additional qualitative adjustment applied to certain loan segments, specifically consumer and construction loans, reflecting increased uncertainty in market conditions tied to the impact of tariffs and other external factors affecting our clients. Expected credit loss estimates consider various factors, including market conditions, borrower-specific information, projected delinquencies, and anticipated effects of economic trends on borrowers’ ability to repay.

Q1 2025 vs Q1 2024

Interest income on loans increased $355 thousand, or 2.9%, to $12.6 million for the quarter ended March 31, 2025, compared to $12.2 million for the quarter ended March 31, 2024. The average balance of total loans was $896.8 million for the quarter ended March 31, 2025, up from $895.4 million for the quarter ended March 31, 2024. The average yield on total loans was 5.69% for the quarter ended March 31, 2025, up from 5.49% for the quarter ended March 31, 2024. The increase in the average loan yield during the current quarter, compared to the same quarter in 2024, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the first quarter of 2024. Interest income on investments was $108 thousand for the quarter ended March 31, 2025, compared to $111 thousand for the quarter ended March 31, 2024. Interest income on interest-bearing cash decreased $406 thousand to $1.0 million for the quarter ended March 31, 2025, compared to $1.4 million for the quarter ended March 31, 2024. The decrease was a result of both a lower average yield and average balance.

The decrease in interest expense during the current quarter from the same quarter a year ago was primarily the result of a $18.9 million decrease in the average balance of interest-bearing demand and NOW accounts, a $25.5 million decrease in the average balance of certificate accounts, and a $15.0 million decrease in the average balance of FHLB advances, as well as lower average rates paid on all categories of interest-bearing deposits; resulting from lower market interest rates generally. These average-balance decreases were partially offset by a $51.0 million increase in the average balance of savings and money market accounts. The average cost of deposits was 2.37% for the quarter ended March 31, 2025, down from 2.57% for the quarter ended March 31, 2024. The average cost of FHLB advances was 4.25% for the quarter ended March 31, 2025, down from 4.31% for the quarter ended March 31, 2024.

A release of provision for credit losses of $203 thousand was recorded for the quarter ended March 31, 2025, consisting of a release of provision for credit losses on loans of $85 thousand and a release of provision for credit losses on unfunded loan commitments of $118 thousand. This compared to a release of provision for credit losses of $33 thousand for the quarter ended March 31, 2024, consisting of a release of provision for credit losses on loans of $106 thousand and a provision for credit losses on unfunded loan commitments of $73 thousand. The larger release recorded in the current quarter primarily reflected the factors discussed above.

Noninterest Income

	For the Quarter Ended								Q1 2025 vs. Q4 2024					Q1 2025 vs. Q1 2024
	March 31, 2025			December 31, 2024		March 31, 2024			Amount ($)			Percentage (%)		Amount ($)			Percentage (%)
	(Dollars in thousands, unaudited)
Service charges and fee income	$	684		$	619	$	612		$	65		10.5	%	$	72		11.8	%
Earnings on bank-owned life insurance (“BOLI”)		195			127		177			68		53.5	%		18		10.2	%
Mortgage servicing income		269			277		282			(8	)	(2.9)	%		(13	)	(4.6)	%
Fair value adjustment on mortgage servicing rights		(99	)		77		(65	)		(176	)	(228.6)	%		(34	)	52.3	%
Net gain on sale of loans		49			53		90			(4	)	(7.5)	%		(41	)	(45.6)	%
Other income		—			7		—			(7	)	(100.0)	%		—		100.0	%
Total noninterest income	$	1,098		$	1,160	$	1,096		$	(62	)	(5.3)	%	$	2		0.2	%

Q1 2025 vs Q4 2024

The decrease in noninterest income during the current quarter compared to the quarter ended December 31, 2024 was primarily related to

a $176 thousand downward adjustment in fair value of mortgage servicing rights due to a smaller servicing portfolio, partially offset by :
an increase of $68 thousand in earnings from BOLI primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in the first quarter, offset by fluctuations in financial markets which decreased the values of policies; and
a $65 thousand increase in service charges and fee income due to a volume incentive paid by Mastercard in the first quarter of 2025 and higher interchange income.

Loans sold during the quarter ended March 31, 2025, totaled $2.0 million, compared to $3.5 million and $4.2 million of loans sold during the quarters ended December 31, 2024 and March 31, 2024, respectively.

Q1 2025 vs Q1 2024

The increase in noninterest income during the current quarter compared to the quarter ended March 31, 2024 was primarily due to

a $72 thousand increase in service charges and fee income primarily due to the reasons noted above, and
an $18 thousand increase in earnings from BOLI primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in the first quarter, offset by fluctuations in financial markets, which reduced the values of policies. The increases in service charges and fee income and in earnings from BOLI were partially offset by
a $13 thousand decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than originations replace repayments;
a $34 thousand decrease in the fair value adjustment on mortgage servicing rights due to a smaller servicing portfolio; and
a $41 thousand decrease in net gain on sale of loans due to fewer loans sold.

Noninterest Expense

	For the Quarter Ended							Q1 2025 vs. Q4 2024				Q1 2025 vs. Q1 2024
	March 31, 2025		December 31, 2024			March 31, 2024		Amount ($)		Percentage (%)		Amount ($)			Percentage (%)
	(Dollars in thousands, unaudited)
Salaries and benefits	$	4,595	$	3,920		$	4,543	$	675	17.2	%	$	52		1.1	%
Operations		1,365		1,329			1,457		36	2.7	%		(92	)	(6.3)	%
Regulatory assessments		221		189			189		32	16.9	%		32		16.9	%
Occupancy		437		409			444		28	6.8	%		(7	)	(1.6)	%
Data processing		1,293		1,232			1,017		61	5.0	%		276		27.1	%
Net loss (gain) on OREO and repossessed assets		3		(21	)		6		24	(114.3)	%		(3	)	(50.0)	%
Total noninterest expense	$	7,914	$	7,058		$	7,656	$	856	12.1	%	$	258		3.4	%

Q1 2025 vs Q4 2024

The increase in noninterest expense during the current quarter from the quarter ended December 31, 2024 was primarily a result of:

a $675 thousand increase in salaries and benefits related to higher salaries expense, partially due to accrual reversals in the fourth quarter 2024, along with an annual deferred compensation contribution for key executives made in the first quarter of each year, higher 401(k) contributions, and higher payroll taxes related to annual bonus payments;
a $32 thousand increase in regulatory assessments due to a higher estimated accrual for exam costs;
a $28 thousand increase in occupancy due to higher annual property charges and maintenance fees recognized in the first quarter;
a $61 thousand increase in data processing due to higher vendor fees associated with annual subscription renewals; and
a $24 thousand increase in OREO and repossessed assets due to the addition of a new property in the first quarter of 2025 and the absence of property sales in the prior quarter.

Q1 2025 vs Q1 2024

The increase in noninterest expense during the current quarter from the quarter ended March 31, 2024 was primarily a result of:

a $276 thousand increase in data processing expenses due to various project implementations that began amortizing in the third quarter of 2024 and the reimbursement of expenses by a software vendor in the first quarter of 2024;
a $32 thousand increase in regulatory assessment expenses due to a higher estimated accrual for exam costs.

These increases were partially offset by a $92 thousand decrease in operations expense, primarily due to the recognition of annual fee reimbursements from Mastercard beginning in the first quarter of 2025 and lower expenses across various accounts resulting from ongoing cost saving initiatives and process improvements.

Balance Sheet Review, Capital Management and Credit Quality

Assets at March 31, 2025 totaled $1.07 billion, up from $993.6 million at December 31, 2024 and down from $1.09 billion at March 31, 2024. The increase in total assets from December 31, 2024 was primarily due to an increase in cash and cash equivalents, partially offset by a lower balance of loans held-for-portfolio. The decrease from one year ago was primarily a result of lower balances of cash and cash equivalents and loans held-for-portfolio.

Cash and cash equivalents increased $87.9 million, or 201.3%, to $131.5 million at March 31, 2025, compared to $43.6 million at December 31, 2024, and decreased $6.5 million, or 4.7%, from $138.0 million at March 31, 2024. The increased cash and cash equivalents from the prior quarter-end was primarily due to the strategic decision to sell reciprocal deposits at the end of 2024, which reduced our cash balances. These reciprocal deposits returned to our balance sheet in the first quarter of 2025.

Investment securities decreased $110 thousand, or 1.1%, to $9.8 million at March 31, 2025, compared to $9.9 million at December 31, 2024, and decreased $462 thousand, or 4.5%, from $10.3 million at March 31, 2024, as pay-offs and paydowns of investments exceeded new purchases. Held-to-maturity securities totaled $2.1 million at both March 31, 2025 and December 31, 2024, and totaled $2.2 million at March 31, 2024. Available-for-sale securities totaled $7.7 million at March 31, 2025, compared to $7.8 million at December 31, 2024 and $8.1 million at March 31, 2024.

Loans held-for-portfolio were $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024 and $897.9 million at March 31, 2024. The decrease from both prior dates was primarily due to the payoff during the first quarter of 2025 of one $17.0 million loan that was risk rated special mention.

Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, increased $2.2 million, or 29.4%, to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024 and decreased $49 thousand, or 0.5%, from $9.7 million at March 31, 2024. The increase in NPAs from December 31, 2024 was primarily due to the addition of six loans totaling $2.4 million to nonaccrual status, including two commercial real estate loans of $1.1 million and $988 thousand. The increase also included $41 thousand of other real estate owned properties. These additions were partially offset by $207 thousand in regular loan payments. Subsequent to quarter-end, the $988 thousand commercial real estate loan added during the quarter was paid-off. The decrease in NPAs from one year ago was primarily due to payoffs totaling $2.1 million, the return of $522 thousand of loans to accrual status, the sale of two other real estate owned properties for $690 thousand, and regular loan payments. These decreases were partially offset by the placement of an additional $3.6 million of loans on nonaccrual status, which included the two commercial real estate loans noted above.

NPAs to total assets were 0.91%, 0.75% and 0.90% at March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The allowance for credit losses on loans to total loans outstanding was 0.95% at March 31, 2025, compared to 0.94% at December 31, 2024 and 0.96% at March 31, 2024. Net loan charge-offs for the first quarter of 2025 totaled $21 thousand, compared to $13 thousand for the fourth quarter of 2024, and $56 thousand for the first quarter of 2024.

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

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Nonperforming Loans:
One-to-four family	$	762		$	537		$	745		$	822		$	835
Home equity loans		368			298			338			342			83
Commercial and multifamily		5,627			3,734			4,719			5,161			4,747
Construction and land		22			24			25			28			29
Manufactured homes		501			521			230			136			166
Floating homes		2,363			2,363			2,377			2,417			3,192
Commercial business		—			11			23			—			—
Other consumer		10			3			32			3			1
Total nonperforming loans		9,653			7,491			8,489			8,909			9,053
OREO and Other Repossessed Assets:
Commercial and multifamily		—			—			—			—			575
Manufactured homes		41			—			115			115			115
Total OREO and repossessed assets		41			—			115			115			690
Total NPAs	$	9,694		$	7,491		$	8,604		$	9,024		$	9,743

Percentage of Nonperforming Loans:
One-to-four family		7.9	%		7.3	%		8.7	%		9.1	%		8.5	%
Home equity loans		3.8			4.0			3.9			3.8			0.9
Commercial and multifamily		58.0			49.8			54.8			57.2			48.7
Construction and land		0.2			0.3			0.3			0.3			0.3
Manufactured homes		5.2			7.0			2.7			1.5			1.7
Floating homes		24.4			31.5			27.6			26.8			32.8
Commercial business		—			0.1			0.3			—			—
Other consumer		0.1			—			0.4			—			—
Total nonperforming loans		99.6			100.0			98.7			98.7			92.9
Percentage of OREO and Other Repossessed Assets:
Commercial and multifamily		—			—			—			—			5.9
Manufactured homes		0.4			—			1.3			1.3			1.2
Total OREO and repossessed assets		0.4			—			1.3			1.3			7.1
Total NPAs		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

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

	At or For the Quarter Ended:
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Allowance for Credit Losses on Loans
Balance at beginning of period	$	8,499		$	8,585		$	8,493		$	8,598		$	8,760
(Release of) provision for credit losses during the period		(85	)		(73	)		106			(88	)		(106	)
Net charge-offs during the period		(21	)		(13	)		(14	)		(17	)		(56	)
Balance at end of period	$	8,393		$	8,499		$	8,585		$	8,493		$	8,598
Allowance for Credit Losses on Unfunded Loan Commitments
Balance at beginning of period	$	234		$	147		$	245		$	266		$	193
Provision for (release of) provision for credit losses during the period		(118	)		87			(98	)		(21	)		73
Balance at end of period		116			234			147			245			266
Allowance for Credit Losses	$	8,509		$	8,733		$	8,732		$	8,738		$	8,864
Allowance for credit losses on loans to total loans		0.95	%		0.94	%		0.95	%		0.96	%		0.96	%
Allowance for credit losses to total loans		0.96	%		0.97	%		0.97	%		0.98	%		0.99	%
Allowance for credit losses on loans to total nonperforming loans		86.95	%		113.46	%		101.13	%		95.33	%		94.97	%
Allowance for credit losses to total nonperforming loans		88.15	%		116.58	%		102.86	%		98.08	%		97.91	%

Total deposits increased $72.5 million, or 8.7%, to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024 and decreased $6.5 million, or 0.7%, from $916.9 million at March 31, 2024. The increase in total deposits compared to the prior quarter-end was primarily a result of the movement of reciprocal deposits off balance sheet for strategic objectives at year-end, followed by the return of those deposits to our balance sheet in the first quarter of 2025, and a decrease in one high cost money market deposit relationship as part of our strategic decision to decrease our overall cost of funds. Noninterest-bearing deposits decreased $5.8 million, or 4.4%, to $126.7 million at March 31, 2025, compared to $132.5 million at December 31, 2024 and decreased $2.0 million, or 1.5%, from $128.7 million at March 31, 2024. Noninterest-bearing deposits represented 13.9%, 15.8% and 14.0% of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

FHLB advances totaled $25.0 million at March 31, 2025, compared to $25.0 million at both December 31, 2024, and March 31, 2024. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at March 31, 2025 had maturities ranging from early 2026 through early 2028. Subordinated notes, net totaled $11.8 million at both March 31, 2025 and December 31, 2024, and $11.7 million at March 31, 2024.

Stockholders’ equity totaled $104.4 million at March 31, 2025, an increase of $765 thousand, or 0.7%, from $103.7 million at December 31, 2024, and an increase of $3.4 million, or 3.4%, from $101.0 million at March 31, 2024. The increase in stockholders’ equity from December 31, 2024 was primarily the result of $1.2 million of net income earned during the current quarter, $81 thousand in share-based compensation, and $21 thousand in common stock options exercised, partially offset by a $17 thousand increase in accumulated other comprehensive loss, net of tax and the payment of $487 thousand in cash dividends to the Company’s stockholders.

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

Forward-Looking Statements Disclaimer

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

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

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

CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, unaudited)

	For the Quarter Ended
	March 31, 2025			December 31, 2024			September 30, 2024		June 30, 2024			March 31, 2024
Interest income	$	13,706		$	14,736		$	14,838	$	14,039		$	13,760
Interest expense		5,635			6,516			6,965		6,591			6,300
Net interest income		8,071			8,220			7,873		7,448			7,460
(Release of) provision for credit losses		(203	)		14			8		(109	)		(33	)
Net interest income after (release of) provision for credit losses		8,274			8,206			7,865		7,557			7,493
Noninterest income:
Service charges and fee income		684			619			628		761			612
Earnings on bank-owned life insurance		195			127			186		134			177
Mortgage servicing income		269			277			280		279			282
Fair value adjustment on mortgage servicing rights		(99	)		77			101		(116	)		(65	)
Net gain on sale of loans		49			53			40		74			90
Other income		—			7			—		30			—
Total noninterest income		1,098			1,160			1,235		1,162			1,096
Noninterest expense:
Salaries and benefits		4,595			3,920			4,469		4,658			4,543
Operations		1,365			1,329			1,540		1,569			1,457
Regulatory assessments		221			189			189		220			189
Occupancy		437			409			414		397			444
Data processing		1,293			1,232			1,067		910			1,017
Net (gain) loss on OREO and repossessed assets		3			(21	)		—		(17	)		6
Total noninterest expense		7,914			7,058			7,679		7,737			7,656
Income before provision for income taxes		1,458			2,308			1,421		982			933
Provision for income taxes		291			389			267		187			163
Net income	$	1,167		$	1,919		$	1,154	$	795		$	770

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, unaudited)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
ASSETS
Cash and cash equivalents	$	131,494		$	43,641		$	148,930		$	135,111		$	137,977
Available-for-sale securities, at fair value		7,689			7,790			8,032			7,996			8,115
Held-to-maturity securities, at amortized cost		2,121			2,130			2,139			2,147			2,157
Loans held-for-sale		2,267			487			65			257			351
Loans held-for-portfolio		886,226			900,171			901,733			889,274			897,877
Allowance for credit losses – loans		(8,393	)		(8,499	)		(8,585	)		(8,493	)		(8,598	)
Total loans held-for-portfolio, net		877,833			891,672			893,148			880,781			889,279
Accrued interest receivable		3,540			3,471			3,705			3,413			3,617
Bank-owned life insurance, net		22,685			22,490			22,363			22,172			22,037
Other real estate owned (“OREO”) and other repossessed assets, net		41			—			115			115			690
Mortgage servicing rights, at fair value		4,688			4,769			4,665			4,540			4,612
Federal Home Loan Bank (“FHLB”) stock, at cost		1,734			1,730			2,405			2,406			2,406
Premises and equipment, net		4,591			4,697			4,807			4,906			6,685
Right-of-use assets		3,546			3,725			3,779			4,020			4,259
Other assets		6,957			7,031			6,777			6,995			4,500
TOTAL ASSETS	$	1,069,186		$	993,633		$	1,100,930		$	1,074,859		$	1,086,685
LIABILITIES
Interest-bearing deposits	$	783,660		$	705,267		$	800,480		$	781,854		$	788,217
Noninterest-bearing deposits		126,687			132,532			129,717			124,915			128,666
Total deposits		910,347			837,799			930,197			906,769			916,883
Borrowings		25,000			25,000			40,000			40,000			40,000
Accrued interest payable		586			765			908			760			719
Lease liabilities		3,828			4,013			4,079			4,328			4,576
Other liabilities		10,774			9,371			9,711			9,105			9,578
Advance payments from borrowers for taxes and insurance		2,450			1,260			2,047			812			2,209
Subordinated notes, net		11,770			11,759			11,749			11,738			11,728
TOTAL LIABILITIES		964,755			889,967			998,691			973,512			985,693
STOCKHOLDERS’ EQUITY:
Common stock		25			25			25			25			25
Additional paid-in capital		28,515			28,413			28,296			28,198			28,110
Retained earnings		76,952			76,272			74,840			74,173			73,907
Accumulated other comprehensive loss, net of tax		(1,061	)		(1,044	)		(922	)		(1,049	)		(1,050	)
TOTAL STOCKHOLDERS’ EQUITY		104,431			103,666			102,239			101,347			100,992
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,069,186		$	993,633		$	1,100,930		$	1,074,859		$	1,086,685

KEY FINANCIAL RATIOS
(unaudited)

	For the Quarter Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Annualized return on average assets	0.45	%	0.70	%	0.42	%	0.30	%	0.29	%
Annualized return on average equity	4.53	%	7.40	%	4.50	%	3.17	%	3.06	%
Annualized net interest margin⁽¹⁾	3.25	%	3.13	%	2.98	%	2.92	%	2.95	%
Annualized efficiency ratio⁽²⁾	86.31	%	75.25	%	84.31	%	89.86	%	89.48	%

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

PER COMMON SHARE DATA
(unaudited)

	At or For the Quarter Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Basic earnings per share	$	0.45	$	0.75	$	0.45	$	0.31	$	0.30
Diluted earnings per share	$	0.45	$	0.74	$	0.45	$	0.31	$	0.30
Weighted-average basic shares outstanding		2,554,265		2,547,210		2,544,233		2,540,538		2,539,213
Weighted-average diluted shares outstanding		2,578,609		2,578,771		2,569,368		2,559,015		2,556,958
Common shares outstanding at period-end		2,566,069		2,564,907		2,564,095		2,557,284		2,558,546
Book value per share	$	40.70	$	40.42	$	39.87	$	39.63	$	39.47

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

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

	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
	Average Outstanding Balance			Interest Earned/Paid		Yield/Rate		Average Outstanding Balance			Interest Earned/Paid		Yield/Rate		Average Outstanding Balance			Interest Earned/Paid		Yield/Rate
Interest-Earning Assets:
Loans receivable	$	896,822		$	12,588	5.69	%	$	900,832		$	13,070	5.77	%	$	895,430		$	12,233	5.49	%
Interest-earning cash		95,999			1,010	4.27	%		130,412			1,534	4.68	%		107,361			1,416	5.30	%
Investments		12,924			108	3.39	%		13,263			132	3.96	%		14,038			111	3.18	%
Total interest-earning assets	$	1,005,745			13,706	5.53	%		1,044,507		$	14,736	5.61	%	$	1,016,829			13,760	5.44	%
Interest-Bearing Liabilities:
Savings and money market accounts	$	335,419			2,058	2.49	%	$	350,495			2,476	2.81	%	$	284,455			1,866	2.64	%
Demand and NOW accounts		140,905			108	0.31	%		144,470			128	0.35	%		159,762			141	0.35	%
Certificate accounts		289,960			3,039	4.25	%		301,293			3,413	4.51	%		315,495			3,696	4.71	%
Subordinated notes		11,766			168	5.79	%		11,756			168	5.69	%		11,724			168	5.76	%
Borrowings		25,000			262	4.25	%		30,546			331	4.31	%		40,000			429	4.31	%
Total interest-bearing liabilities	$	803,050			5,635	2.85	%	$	838,560			6,516	3.09	%	$	811,436			6,300	3.12	%
Net interest income/spread				$	8,071	2.68	%				$	8,220	2.52	%				$	7,460	2.32	%
Net interest margin						3.25	%						3.13	%						2.95	%

Ratio of interest-earning assets to interest-bearing liabilities		125	%						125	%						125	%
Noninterest-bearing deposits	$	126,215						$	130,476						$	132,438
Total deposits		892,499		$	5,205	2.37	%		926,734		$	6,017	2.58	%		892,150		$	5,703	2.57	%
Total funding ⁽¹⁾		929,265			5,635	2.46	%		969,036			6,516	2.68	%		943,874			6,300	2.68	%

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

LOANS
(Dollars in thousands, unaudited)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Real estate loans:
One-to-four family	$	262,457		$	269,684		$	271,702		$	268,488		$	279,213
Home equity		28,112			26,686			25,199			26,185			24,380
Commercial and multifamily		392,798			371,516			358,587			342,632			324,483
Construction and land		42,492			73,077			85,724			96,962			111,726
Total real estate loans		725,859			740,963			741,212			734,267			739,802
Consumer Loans:
Manufactured homes		42,448			41,128			40,371			38,953			37,583
Floating homes		86,626			86,411			86,155			81,622			84,237
Other consumer		18,224			17,720			18,266			18,422			18,847
Total consumer loans		147,298			145,259			144,792			138,997			140,667
Commercial business loans		14,690			15,605			17,481			17,860			19,075
Total loans		887,847			901,827			903,485			891,124			899,544
Less:
Premiums		688			718			736			754			808
Deferred fees, net		(2,309	)		(2,374	)		(2,488	)		(2,604	)		(2,475	)
Allowance for credit losses – loans		(8,393	)		(8,499	)		(8,585	)		(8,493	)		(8,598	)
Total loans held-for-portfolio, net	$	877,833		$	891,672		$	893,148		$	880,781		$	889,279

DEPOSITS
(Dollars in thousands, unaudited)

	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Noninterest-bearing demand	$	126,687	$	132,532	$	129,717	$	124,915	$	128,666
Interest-bearing demand		143,595		142,126		148,740		152,829		159,178
Savings		63,533		61,252		61,455		63,368		65,723
Money market		287,058		206,067		285,655		253,873		241,976
Certificates		289,474		295,822		304,630		311,784		321,340
Total deposits	$	910,347	$	837,799	$	930,197	$	906,769	$	916,883

CREDIT QUALITY DATA
(Dollars in thousands, unaudited)

	At or For the Quarter Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Total nonperforming loans	$	9,653		$	7,491		$	8,489		$	8,909		$	9,053
OREO and other repossessed assets		41			—			115			115			690
Total nonperforming assets	$	9,694		$	7,491		$	8,604		$	9,024		$	9,743
Net charge-offs during the quarter	$	(21	)	$	(13	)	$	(14	)	$	(17	)	$	(56	)
Provision for (release of) credit losses during the quarter		(203	)		14			8			(109	)		(33	)
Allowance for credit losses – loans		8,393			8,499			8,585			8,493			8,598
Allowance for credit losses – loans to total loans		0.95	%		0.94	%		0.95	%		0.96	%		0.96	%
Allowance for credit losses – loans to total nonperforming loans		86.95	%		113.46	%		101.13	%		95.33	%		94.97	%
Nonperforming loans to total loans		1.09	%		0.83	%		0.94	%		1.00	%		1.01	%
Nonperforming assets to total assets		0.91	%		0.75	%		0.78	%		0.84	%		0.90	%

OTHER STATISTICS
(Dollars in thousands, unaudited)

	At or For the Quarter Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Total loans to total deposits		97.53	%		107.64	%		97.13	%		98.27	%		98.11	%
Noninterest-bearing deposits to total deposits		13.92	%		15.82	%		13.95	%		13.78	%		14.03	%

Average total assets for the quarter	$	1,051,135		$	1,089,067		$	1,095,404		$	1,070,579		$	1,062,036
Average total equity for the quarter	$	104,543		$	103,181		$	102,059		$	100,961		$	101,292

Contact

Financial:
Wes Ochs
Executive Vice President/CFO
(206) 436-8587

Media:
Laurie Stewart
President/CEO
(206) 436-1495

The MIL Network –

April 30, 2025

MIL-OSI USA: Rep. Cammack’s Charlotte Woodward Organ Transplant Discrimination Prevention Act Passes Energy & Commerce Committee

Source: United States House of Representatives – Congresswoman Kat Cammack (R-FL-03)

WASHINGTON, D.C. — Today, Congresswoman Kat Cammack (R-FL-03) and Congresswoman Debbie Dingell (D-MI-06)’s bill, the Charlotte Woodward Organ Transplant Discrimination Prevention Act, passed through the Energy & Commerce Committee.

The bill prohibits discrimination against people with disabilities in the organ transplant system. It upholds, clarifies, and builds upon rights established in the 1990 Americans with Disabilities Act of 1990, Sec. 504 of the Rehab Act, and Sec.1557 of the Affordable Care Act. Additionally, the bill prohibits covered entities from determining that an individual is ineligible to receive a transplant, deny an organ transplant or related service, refuse to refer the individual to an organ transplant center, refuse to place an individual on a waiting list, or decline insurance coverage for a transplant or related service based solely on the fact that the individual has a disability.

Named for Charlotte Woodward, an adult with Down syndrome who received a lifesaving heart transplant over a decade ago, the bill also recognizes the importance of auxiliary aids and services, the ability of an individual’s support network to help with post-operative care, and the need for reasonable modifications to policies and procedures to make organ transplant systems and facilities more accessible to those with disabilities. Reps. Cammack and Dingell have been the bill’s sponsors for the last several years.

Rep. Cammack’s inspiration for introducing the bill is Baby Zion Sarmiento from Ocala, Florida. Zion was born with Down syndrome and a heart defect in June 2021. Following 40 days in the NICU and five open-heart surgeries, Zion passed away after being denied a heart transplant because of his disability.

The bill has received the endorsement of the National Down Syndrome Society (NDSS), Autism Speaks, Autism Society of America, the National Down Syndrome Congress, the National Fragile X Foundation, Family Voices National, the Association of Organ Procurement Organizations (AOPO), and LuMind IDSC Foundation.

The next stop for the bill is consideration before the full House of Representatives.

Read the text of the legislation here and watch Rep. Cammack’s remarks during today’s hearing here.

###

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: 100 Days, 100 Stories

Source: United States House of Representatives – Representative Mike Johnson (LA-04)

WASHINGTON — Today, Speaker Johnson released a list of 100 American citizens who have felt the benefits from President Trump’s historic first 100 days in office. Speaker Johnson highlighted citizens who were unjustly detained abroad, business owners who will benefit from new apprenticeship opportunities, and families devastated by previous open borders policies, among many others.

Click here to read the full list

“President Donald J. Trump entered the White House with the most decisive mandate in modern history. In just 100 days, he’s done more for America than Joe Biden managed in four years,” Speaker Johnson said. “The American people can feel the tangible impact of President Trump’s swift and decisive action. From coast to coast, North to South, the American First agenda is helping Americans from across our great country.

“Republicans in Congress are proud to stand with the President as he secures our border, restores accountability in government, fights for common sense, and defends the liberty and prosperity of generations of Americans to come,” Speaker Johnson continued. “Today, as we mark 100 historic days, we celebrate the many ways President Trump has delivered for the American people.”

Since his inauguration on January 20th, President Trump has taken bold action to secure the border, drive down inflation, restore American strength on the world stage, clean up our communities, secure trillions of dollars in new investments and jobs, and return common sense to Washington. These 100 American stories illustrate that.

Read 20 stories below, and the full list here.

Alexis Nungaray, Angel Mother – Alexis Nungaray is the mother of Jocelyn Nungaray, a 12-year-old girl who was tragically murdered by illegal aliens in June of 2024. Jocelyn’s life was tragically cut short because of the Biden Administration’s failure to close our borders and protect American citizens from dangerous illegal aliens. On March 5, 2025, President Trump signed an executive order honoring her life by renaming Anahuac National Wildlife Refuge to Jocelyn Nungaray Wildlife Refuge in Anahuac, Texas. Since Jocelyn’s murder, her mother Alexis has been advocating alongside the Trump Administration and Senator Ted Cruz for stronger immigration laws.

Marianna Montoya, Florida Resident – During President Trump’s first 100 days, Marianna was able to open up her very first Roth IRA and begin contributing on a monthly basis. President Trump’s work to reverse the devastating consequences of Bidenomics has given her hope that she and her husband will be able to retire peacefully.

Frank Windsor, Rinnai America President – In late 2024, the Biden Administration issued a rule that effectively banned an entire niche of American manufacturing: non-condensing tankless water heaters. The rule specifically targeted Rinnai America Corporation, the only U.S. facility producing these water heaters. Thanks to President Trump’s leadership, the House passed a Congressional Review Act resolution to overturn the rule, keeping Rinnai’s doors open and protecting nearly 300 American jobs.

Sarah Taylor, Iowa Parent – Sarah and her husband, Dan, both attended private Catholic elementary schools and knew they wanted the same faith-based education for their daughters, Hannah and Millie. Thanks to expanding educational freedom and school choice, the Taylors were empowered to choose the school that best fit their family’s values. For the Taylor family, school choice has meant more than access. It’s meant opportunity. Their story is one of many that show the power of giving parents the freedom to choose what’s best for their children.

Kelly Wilson, Small Business Owner – Kelly Wilson’s family has owned and operated a small business in Colorado for 80 years, but after mass flows of illegal aliens began arriving in Denver under the Biden Administration, her family discussed moving to another state. In the face of budget cuts to Denver’s police force and sanctuary city policies that have failed Denver families, Kelly began speaking out for her community. Since day one, the Trump Administration has made cracking down on sanctuary cities and states a top priority. Today, communities like Kelly’s are safer, thanks to President Trump’s work to restore the rule of law.

Jim Chilton, Rancher – The Chilton Ranch has been operated within the Chilton family for generations, a family legacy that Jim and Sue Chilton have preserved mere miles away from the Southern Border. However, under the Biden Administration, they were forced to shoulder the consequences of President Biden’s border crisis. During April of 2024 alone, the Chiltons experienced 5,640 immigrant encounters on their ranch. The last time they checked with the Border Patrol, in April of this year, there were zero crossers over the course of three weeks. Thanks to President Trump’s work to reverse the Biden administration’s radical open-border policies, the Chilton family’s beloved ranch and livelihood are no longer under threat.

Ben Paulding, CPA – Ben hosts South Dakota’s first federally subsidized CPA Apprenticeship Program. After navigating months of red tape under the Biden Administration, he can finally onboard his first interns. Thankfully, President Trump has ended burdensome mandates on programs like Ben’s, enabling him to refocus his attention on merit-based, equal opportunity hiring without the DEI red tape.

George Glezmann, Former Hostage – George Glezmann, a Georgia native and Delta Airlines mechanic, was arrested by the Taliban in 2022 during a planned tourist visit. Despite no formal charges being filed, Glezmann was held for over 2 years in an Afghanistan prison. On March 20, 2025, he was released as a gesture of “goodwill” by the Taliban following trilateral negotiations between Qatar, the U.S., and the Taliban. Upon returning to the U.S., he said, “I feel like I’m born again, I’m in debt to President Trump. Thank God he’s in the White House and thank God he got me out.”

Michelle Root, Angel Mother – Michelle Root is the mother of Sarah Root, a 21-year-old Iowan who was killed by an illegal alien drunk driving in 2016. Instead of answering for his crimes, the illegal alien posted bail, was released from jail, and was never seen again. Fortunately, this criminal was found in Honduras and the Trump Administration worked with Honduran authorities to extradite him to the United States to face justice. President Trump also signed the Laken Riley Act, which included Sarah’s Law – introduced by Congressman Randy Feenstra from Iowa – to ensure that any illegal alien who harms or kills an American citizen is swiftly detained and prosecuted to the fullest extent of the law. The Root Family is grateful to President Trump and Congressman Feenstra for honoring their precious daughter’s memory.

Marc Fogel, Schoolteacher/Former Hostage – Marc Fogel, an American schoolteacher, was wrongfully detained by Russian authorities in 2021 after being arrested on drug charges related to medical marijuana. Despite having a valid prescription in the U.S., he was sentenced to 14 years in a Russian prison. However, on February 11, 2025, Fogel was released and returned to the United States through a diplomatic deal negotiated by President Trump. He was warmly greeted by the President upon his arrival back to the United States and expressed his gratitude, saying, “I feel like the luckiest man alive.”

Tony Campbell, East KY Power Cooperative CEO – Tony Campbell serves as the CEO and President of East Kentucky Power Cooperative. He and his colleagues have faced significant challenges under burdensome regulations that targeted the coal industry—an industry that has powered American homes and cities for generations. Through executive action, President Trump strengthened the reliability and affordability of American energy, safeguarded American jobs, and preserved critical coal plants, delivering on his promise to create jobs and uphold America’s energy independence.

Joseph Knowles, Detroit Autoworker – Joseph Knowles is a Detroit autoworker for Stellantis who was laid off during the Biden Administration and later reinstated after President Trump’s election victory. After attending President Trump’s Joint Address to Congress, Knowles declared he had left the Democratic Party for good. “I got very good hope for the Republican Party,” Knowles said, “More and more people are seeing the true colors of the Democrats.”

Lawrence Rosen, Cra-Z-Art Founder – Lawrence Rosen is the owner of Cra-Z-Art, the largest toy maker in the United States. Since Liberation Day, Lawrence has seen the benefits of President Trump’s tariffs firsthand on domestic manufacturing. Because of President Trump’s decisive action in the first 100 days, Rosen is expanding their domestic production by 50% and investing millions of dollars into factories across the country.

Elliston Berry, Texas High School Student – Elliston Berry was only 14-years-old when one of her classmates took an innocent selfie of her and ran it through AI to make a deep-fake pornographic image, which was later circulated throughout her school. Her painful experience motivated her to become an advocate against deepfake pornography, with her efforts leading to legislative action by Senator Ted Cruz. The “Take it Down Act”, which First Lady Melania Trump has championed, protects victims, enhances protections for users, and introduces accountability for AI platforms passed the House in April.

Kirk Davis, Bob Davis Electric CEO – Kirk Davis, owner of Bob Davis Electric, is one of many business leaders benefiting from President Trump’s action to tackle America’s workforce challenges. Thanks to the President’s Executive Order on apprenticeships, Kirk has been able to recruit, train, and retrain the skilled electricians needed to meet rising power demands and grow his business.

Dakota Meyer, U.S. Marine – President Trump’s Department of Defense has championed a warrior culture in America’s armed forces that has generated massive results for military recruiting. In April, Secretary Hegseth announced the U.S. Army had surpassed its 2025 reenlistment goal six months early. Dakota Meyer, a Marine Corps veteran and Medal of Honor recipient, is just one of the many brave Americans who have reenlisted, deciding to reenter the Army after a 15-year hiatus. “I’m damn proud of the men and women who are standing in uniform,” said Meyer, “and I’m so proud I get to be one of them again.”

Steven McCain, Sheriff – In Grant Parish, illegal aliens are using drones to drop off drugs and other paraphernalia at a large federal prison. It’s been a significant problem for the prison, but now that President Trump has returned to the White House, the situation has changed. Sheriff McCain has noticed a sharp increase in cooperation from ICE, the United States Attorney’s Office, and other local officials. Working together, law enforcement from all levels will be able to crack down on these drones.

Brian Riley, CEO of Guardian Bikes – Citing his support for President Trump’s tariffs, Brian announced a $19 million investment to move Guardian’s bike production out of China and into Seymour, Indiana.

Dino Mavrookas, CEO of Saronic – President Trump has called for the restoration of America’s maritime dominance, and Dino Mavrookas, CEO of the defense startup Saronic, has been a leader in answering this call. To help build the next-generation of autonomous vessels, Saronic acquired Gulf Craft, a Louisiana-based shipbuilder. By preserving Gulf Craft’s skilled workforce, creating hundreds of new, good-paying jobs, and investing over $2.5 billion to develop Port Alpha, Saronic is strengthening our economy, rebuilding America’s maritime strength, and supporting our national defense.

Gary Hamrick, Senior Pastor – Senior Pastor Gary Hamrick became the target of anti-Christian bias when he and his church were charged by the IRS for so-called Johnson Amendment violations. Under President Trump, the Department of Justice has established a task force to eradicate anti-Christian bias in the federal government and safeguard the religious liberty of all Americans.

###

MIL OSI USA News –

April 30, 2025

MIL-OSI Security: Court Enjoins Arizona Animal Drug Manufacturer from Distributing Unapproved Drugs

Source: United States Attorneys General 4

A federal court ordered an Arizona company to stop distributing unapproved animal drugs that violate the Federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice announced.

In a civil complaint filed on August 29, 2023, in the U.S. District Court for the District of Arizona, the United States alleged that AniCell Biotech LLC and its founder and chief executive officer, Brandon T. Ames, violated the FDCA at the company’s facility in Gilbert, Arizona, by manufacturing and distributing unapproved animal drugs. According to the complaint, AniCell Biotech makes and distributes animal cell- and tissue-based products (ACTPs) derived from the amniotic tissue of horses for use in animals.

According to the complaint, AniCell and Ames claimed on their website and in promotional pamphlets that their products were intended for use in animals to treat various diseases and to promote tissue regeneration and healing. The complaint further alleged that AniCell and Ames made and sold new animal drugs that were considered adulterated and unsafe because they had not been approved by the U.S. Food and Drug Administration (FDA). According to the complaint, FDA provided defendants with multiple warnings, including a written warning letter regarding its need to submit its new animal drugs to the FDA for approval.

“Animal drug manufacturers have a duty to ensure that their products are safe and manufactured and sold in accordance with the law,” said Acting Assistant Attorney General Yaakov Roth of the Justice Department’s Civil Division. “The Department will continue to work closely with FDA to pursue appropriate actions against drug manufacturers that violate the law.”

“Marketing unapproved new animal drugs that claim to cure, mitigate, treat or prevent diseases in animals can pose serious safety risks to consumers’ pets,” said Acting Director Dr. Timothy Schell of the FDA’s Center for Veterinary Medicine. “The FDA will continue to pursue actions against those who may put animal patients in harm’s way by manufacturing and distributing unapproved new animal drugs.”

The defendants agreed to settle the suit and be bound by a consent decree permanently enjoining them from violating the FDCA. Under the court’s order, entered on April 17, the defendants must comply with specific requirements set forth in the injunction and the FDCA prior to manufacturing or distributing any new animal drugs.

Trial Attorney Coleen Schoch of the Civil Division’s Consumer Protection Branch handled the case, with assistance from Associate Chief Counsel of Enforcement Jaclyn E. Martinez Resly of the FDA’s Office of the Chief Counsel.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.

MIL Security OSI –

April 30, 2025

MIL-OSI Global: Mark Carney won: Here are the key economic priorities for his new government

Source: The Conversation – Canada – By Berhane Elfu, Lecturer in Finance, Northern Alberta Institute of Technology

The Liberal Party led by Mark Carney has secured a fourth consecutive term in government. This victory has come at a time when Canada is facing an unprecedented threat to its economic security and sovereignty from United States President Donald Trump.

In an election defined by concerns over Trump’s erratic tariff policy and talk of making Canada a 51st state, voters decided Carney was the leader best equipped to deal with these challenges.

Carney previously served as governor of the Bank of Canada, where he guided the country through the 2008 global financial crisis. He later became the first non-British person to head the Bank of England, helping guide the United Kingdom through Brexit, one of the biggest shocks to the British economy in decades.

Now the world is facing similar financial shocks from Trump’s trade war. The on-again, off-again nature of Trump’s tariff policy could inflict significant damage to the global economy — even more to the American economy — and cause irreparable damage to its reputation as a rational entity in international trade.

In the face of the ill-advised and self-defeating U.S. tariffs, the new Canadian government should take prudent, urgent and bold steps to strengthen the nation’s economy. Here are major and important economic priorities for the government to reshape the economy and spur much-needed economic growth.

Stabilize and strengthen the national economy

As a primary act, the new government should stabilize the Canadian economy from the tariff shocks. It must continue to develop carefully calibrated retaliations to Trump’s tariffs.

The revenue raised from the tariffs should be used to compensate those directly affected by them, using a multi-pronged mechanism that includes training, increased employment insurance benefits and additional transfers to low-income households to reduce the impact of tariffs on food costs.

Currently, a series of provincial regulations restrict the goods and services that cross Canada’s provincial borders daily. The new government should urgently remove longstanding interprovincial trade barriers.

According to a report by the Canadian Federation of Independent Business, removing these impediments could boost the economy by up to $200 billion annually. Similarly, a study by the International Monetary Fund indicates the effect of these barriers is equivalent to a 21 per cent tariff.

Removing interprovincial trade barriers would significantly offset the negative effects of Trump’s tariffs on the Canadian economy, and provide a boost to the “Buy Canadian” movement.

Carney seems to have made this a priority already, which is promising. In March, he said he aims to have “free trade by Canada Day” among provinces and territories.

Streamlining natural resource projects

Canada is a natural resource superpower. However, for natural resources and critical minerals to be extracted efficiently, regulatory processes need to be streamlined by cutting red tape and duplicative assessments.

The federal government and the provinces should agree to a single environmental assessment that meets the standards of both jurisdictions.

Additionally and importantly, respectful, genuine and meaningful consultations must be undertaken by project proponents and governments with the relevant Indigenous communities to address their concerns, respect their rights and safeguard their economic well-being in the development of the natural resources projects.

Carney has said he will uphold the principle of free, prior and informed consent when it comes to initiating resource extraction projects and make it easier for Indigenous communities to become owners of said projects.

A similar approach should also guide the construction of infrastructure projects such as pipelines and ports, which play a crucial role in facilitating Canada’s exports.

Boost Canada’s productivity through innovation

A country’s ability to raise living standards for its people mostly depends on its capacity to improve its productivity. Economist Paul Krugman once stated, “productivity is not everything, but, in the long run, it is almost everything.”

Canada’s productivity is lagging, according to the Organization for Economic Co-operation and Development.

The new Canadian government should take steps to boost the nation’s productivity by increasing direct expenditures on research and development. Additional funding should be allocated to higher institutions of learning, and incentivizing businesses to spend more on research and development through significant tax credits.

Although research and development spending continues to grow in Canada, as a percentage to GDP, it is the second lowest among G7 nations. Boosting investments will drive innovation, spur economic growth and ensure Canada remains competitive on the global stage.

Dealing with U.S. tariffs

One of the government’s primary tasks will be preparing meticulously for trade negotiations with the U.S. to address the threat of tariffs and reach a “win-win” trade deal. Given Trump’s highly unpredictable nature, negotiations will not be easy.

Although Trump could have withdrawn from the Canada-US-Mexico Agreement (CUSMA), he has not done so, and zero-tariffs remain in effect for products that are certified as being North American origin under the CUSMA rules. This could be a solid starting point for future trade negotiations.

At the same time, Carney and his team must work to stabilize the Canadian economy against the unprecedented threat of Trump’s tariffs by strengthening the domestic economy, diversifying Canada’s exports and reducing the country’s dependence on the U.S.

Pulling away from the world’s largest economy will not be easy for Canadian businesses, given the deep integration of Canada’s economy with that of the U.S.

Still, expanding trade with the European Union, the U.K., Africa and the Association of Southeast Asian Nations — and exploring other opportunities to reducing trade barriers with nations in Asia, the Middle East and Latin America — will enlarge Canada’s export market.

By doing all this, Canada can not only prepare for a tough round of U.S. trade talks but also position itself as a stronger, more self-reliant global trading partner.

Berhane Elfu does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Mark Carney won: Here are the key economic priorities for his new government – https://theconversation.com/mark-carney-won-here-are-the-key-economic-priorities-for-his-new-government-255477

MIL OSI – Global Reports –

April 30, 2025

MIL-OSI USA: Court Enjoins Arizona Animal Drug Manufacturer from Distributing Unapproved Drugs

Source: US State Government of Utah

A federal court ordered an Arizona company to stop distributing unapproved animal drugs that violate the Federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice announced.

In a civil complaint filed on August 29, 2023, in the U.S. District Court for the District of Arizona, the United States alleged that AniCell Biotech LLC and its founder and chief executive officer, Brandon T. Ames, violated the FDCA at the company’s facility in Gilbert, Arizona, by manufacturing and distributing unapproved animal drugs. According to the complaint, AniCell Biotech makes and distributes animal cell- and tissue-based products (ACTPs) derived from the amniotic tissue of horses for use in animals.

According to the complaint, AniCell and Ames claimed on their website and in promotional pamphlets that their products were intended for use in animals to treat various diseases and to promote tissue regeneration and healing. The complaint further alleged that AniCell and Ames made and sold new animal drugs that were considered adulterated and unsafe because they had not been approved by the U.S. Food and Drug Administration (FDA). According to the complaint, FDA provided defendants with multiple warnings, including a written warning letter regarding its need to submit its new animal drugs to the FDA for approval.

“Animal drug manufacturers have a duty to ensure that their products are safe and manufactured and sold in accordance with the law,” said Acting Assistant Attorney General Yaakov Roth of the Justice Department’s Civil Division. “The Department will continue to work closely with FDA to pursue appropriate actions against drug manufacturers that violate the law.”

“Marketing unapproved new animal drugs that claim to cure, mitigate, treat or prevent diseases in animals can pose serious safety risks to consumers’ pets,” said Acting Director Dr. Timothy Schell of the FDA’s Center for Veterinary Medicine. “The FDA will continue to pursue actions against those who may put animal patients in harm’s way by manufacturing and distributing unapproved new animal drugs.”

The defendants agreed to settle the suit and be bound by a consent decree permanently enjoining them from violating the FDCA. Under the court’s order, entered on April 17, the defendants must comply with specific requirements set forth in the injunction and the FDCA prior to manufacturing or distributing any new animal drugs.

Trial Attorney Coleen Schoch of the Civil Division’s Consumer Protection Branch handled the case, with assistance from Associate Chief Counsel of Enforcement Jaclyn E. Martinez Resly of the FDA’s Office of the Chief Counsel.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.

MIL OSI USA News –

April 30, 2025

MIL-OSI: ChampionX Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

THE WOODLANDS, Texas, April 29, 2025 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced first quarter of 2025 results. Revenue was $864.5 million, net income attributable to ChampionX was $85.8 million, and adjusted EBITDA was $190.9 million. Income before income taxes margin was 12.1% and adjusted EBITDA margin was 22.1%. Cash from operating activities was $66.8 million and free cash flow was $38.6 million.

CEO Commentary

“The first quarter demonstrated the resilience of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated positive free cash flow. These results reflect the commitment of our ChampionX employees around the world who express daily an unwavering focus on delivering value-added solutions for our customers’ most important challenges. I am thankful and humbled to lead such a talented and dedicated team,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

“During the first quarter of 2025, we generated revenue of $864 million, which decreased 5% sequentially, in line with our expectations, driven primarily by a typical seasonal decline in international operations. We generated net income attributable to ChampionX of $86 million, income before income taxes margin of 12.1%, and we delivered adjusted EBITDA of $191 million, representing a 22.1% adjusted EBITDA margin, our second-highest level as ChampionX, which speaks to the continued productivity and profitability focus of our team.

“Cash flow from operating activities was $67 million during the first quarter, which represented 78% of net income attributable to ChampionX, and we generated free cash flow of $39 million, our 12th consecutive quarter of positive free cash flow. Our balance sheet and financial position remain strong, ending the first quarter with approximately $1.2 billion of liquidity, including $527 million of cash and $674 million of available capacity on our revolving credit facility.

“As a leading global provider of production optimization solutions for the energy industry, ChampionX is uniquely well-positioned to help operators meet the objective of maximizing the value of their producing assets, particularly against the backdrop of the ongoing structural shift toward capital discipline and moderating capital spending in the upstream and midstream industries. As global oil production grows, our differentiated and resilient production-oriented portfolio drives our expectation of positive performance relative to general oil and gas market activity in 2025.

“Amid recent changes in international trade policies, ChampionX is continuing to put its continuous improvement culture to work every day to successfully deliver products and technologies designed to improve our cost structure and drive efficiencies. We are leveraging our global and flexible supply chain footprint, long-standing supplier partnerships, pricing adjustments, and productivity initiatives to address tariff impacts, and we will continue to be there to serve our customers and deliver differentiated margin and free cash flow performance.”

Agreement to be Acquired by SLB

On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions.

ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its first quarter 2025 results.

Production Chemical Technologies

Production Chemical Technologies revenue in the first quarter of 2025 was $523.4 million, a decrease of $46.3 million, or 8%, sequentially, due primarily to seasonally lower international sales volumes.

Segment operating profit was $82.2 million and adjusted segment EBITDA was $109.1 million. Segment operating profit margin was 15.7%, a sequential decrease of 248 basis points, and adjusted segment EBITDA margin was 20.8%, a sequential decrease of 259 basis points. The sequential decrease in segment operating profit margin and adjusted segment EBITDA margin was driven by lower sales volumes.

Production & Automation Technologies

Production & Automation Technologies revenue in the first quarter of 2025 was $264.4 million, a decrease of $5.2 million, or 2%, sequentially, due primarily to seasonally lower international sales volumes. Revenue from digital products was $57.8 million in the first quarter of 2025, a sequential decrease of 7%, driven by seasonally lower customer activity in North America.

Segment operating profit was $37.6 million and adjusted segment EBITDA was $70.3 million. Segment operating profit margin was 14.2%, a sequential decrease of 27 basis points, and adjusted segment EBITDA margin was 26.6%, a sequential increase of 34 basis points. The decrease in segment operating profit margin and the increase in adjusted segment EBITDA margin was driven by lower sales volumes, offset somewhat by productivity improvements.

Drilling Technologies

Drilling Technologies revenue in the first quarter of 2025 was $50.5 million, a decrease of $1.4 million, or 3%, sequentially, driven primarily by lower North America sales volumes.

Segment operating profit was $8.2 million and adjusted segment EBITDA was $10.2 million. Segment operating profit margin was 16.2%, compared to 20.6% in the prior quarter, and adjusted segment EBITDA margin was 20.3%, a decrease of 346 basis points, sequentially, due primarily to lower volumes.

Reservoir Chemical Technologies

Reservoir Chemical Technologies revenue in the first quarter of 2025 was $26.9 million, an increase of $5.0 million, or 23%, sequentially, driven by higher sales volumes in the U.S. and internationally.

Segment operating profit was $5.5 million and adjusted segment EBITDA was $6.3 million. Segment operating profit margin was 20.5%, an increase of 1008 basis points, sequentially, and adjusted segment EBITDA margin was 23.6%, an increase of 647 basis points, sequentially. The increase in segment operating profit margin and adjusted segment EBITDA margin was driven by higher sales volumes together with a more favorable product mix.

Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

Awarded several first fill contracts for new conventional and unconventional fields in the Middle East region.
The North America Offshore production chemicals team was awarded the contract for an upcoming major capital project in the Gulf of America. The win was the culmination of years’ worth of work developing technical solutions to address the project’s most impactful challenges.
Commenced the initial deliveries of a significant volume of hydrate inhibitor for a major new FPSO, supporting an independent Australian operator.
Awarded program of competitive process water treatment applications in Canada after performing comprehensive technical assessments and value-added recommendations.
Completed our second RENEWIQ^® (production and reservoir chemistry delivered through one trailer) joint offering for frac treating.
Reservoir group was awarded RENEWIQ work for the application of our production enhancement PROE completion chemistry to improve production over the life of wells. This program, combined with our one-site PCT service expertise, continues to bring differentiated solutions to operators in the Permian Basin.
Started the Unconventional Water team to support North America Land Water applications.
Recently won four different contracts after re-entering the US Land market with our H2S scavenger program.
Providing chemistries supporting a Canadian customer that is scheduled to commission and start up a new thermal asset in August 2025.

Other Business Highlights: Production & Automation Technologies

Awarded a multi-year contract for production optimization software by a customer in Indonesia. 4000+ wells were successfully migrated in Q1 to our XSPOC^® production optimization software, delivering data-driven insights to help the customer make informed production decisions across their field for all artificial lift systems.
Continue to see strong market adoption of new digital technologies as operators look for cost-effective, scalable monitoring solutions. More than 450 SmartSpin^® wireless rod rotator sensors have been installed in the field and 120+ of the recently launched SMARTEN™^® Lite rod pump controller have been deployed.
ChampionX’s RMSpumptools, in partnership with our UNBRIDLED^® ESP Systems team, continues to grow sales of Automatic Diverter Valves (ADV) in the Permian for a major oil company. This key technology offers customers better sand and solids management in ESP systems and acts as a safety device for ESPs featuring a PMM motor.
Following two 6-month trial installations, RMSpumptools has received an order for its Y-chek systems by a Middle East national oil company. This success sets the direction for expansion of this Y-chek solution.
Completed the first 30+ well trial with a major producer in the Permian basin of the newly offered chemical injection assurance (CIA) software module on the modern, secure, and scalable Connexia^® platform. The CIA software provides fully integrated chemical measurement and delivery data as well as control and optimization capabilities.
The SMARTEN XE ESP control system is a leader in the ESP control market. In Q1, ChampionX secured a new customer based on the advanced capabilities of the SMARTEN XE controller. The system’s ability to deliver enhanced performance across multi-pad projects was central to the customer’s decision. Since launch, ChampionX has installed hundreds of ESPs with SMARTEN XE controls, improving the operation of customers’ ESP systems.
Launched newly designed LOOKOUT^® optimization services to provide real-time data with full ESP system control, advanced data visualization, integrated communications, and direct access to a team of multi-disciplined artificial lift experts. Powered by a modern digital backbone, LOOKOUT optimization services enable streamlined integration of diverse data sources and control solutions. LOOKOUT also leverages the full capabilities of the SMARTEN XE ESP control system, delivering advanced automation for ESP operations.
ChampionX’s Integrated Production Optimization (IPO) business continues to expand. A Permian operator, following a series of acquisitions, has expanded implementation of the IPO solution across newly acquired acreage – placing all new wells and ESP replacements under the IPO program. IPO has consistently delivered measurable production uplift, enhanced equipment reliability, stabilized reservoir pressure drawdown, and optimized chemical spend for the operator.
ChampionX’s Norris Sucker Rods has been awarded a large contract for the supply of approximately 35,000 sucker rods for a major customer in India. ChampionX won the contract based on superior reliability and in-country technical support, according to the customer.
Norris Rods received a large bulk order for sucker rods from a U.S. independent producer to assure supply for future operations and to mitigate the impact of tariffs. Norris Rods are manufactured from U.S. steel at the Company’s factory in Tulsa, Oklahoma.

About Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

About ChampionX

ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on January 22, 2025 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 5, 2025, and each of their respective, subsequent Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

Investor Contact: Byron Pope
byron.pope@championx.com
281-602-0094

Media Contact: John Breed
john.breed@championx.com
281-403-5751

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands, except per share amounts)		2025			2024			2024
Revenue	$	864,464		$	912,037		$	922,141
Cost of goods and services		572,938			600,154			622,937
Gross profit		291,526			311,883			299,204
Costs and expenses:
Selling, general and administrative expense		177,045			184,722			172,414
(Gain) loss on sale-leaseback transaction		—			—			(29,883	)
Interest expense, net		13,196			12,375			13,935
Foreign currency transaction losses (gains), net		1,504			1,697			55
Other expense (income), net		(4,631	)		(5,026	)		2,927
Income before income taxes		104,412			118,115			139,756
Provision for income taxes		15,384			33,204			26,596
Net income		89,028			84,911			113,160
Net income attributable to noncontrolling interest		3,231			2,145			237
Net income attributable to ChampionX	$	85,797		$	82,766		$	112,923

Earnings per share attributable to ChampionX:
Basic	$	0.45		$	0.43		$	0.59
Diluted	$	0.44		$	0.43		$	0.58

Weighted-average shares outstanding:
Basic		191,143			190,586			190,803
Diluted		193,709			193,487			193,964

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(in thousands)	March 31, 2025			December 31, 2024
*ASSETS*
Current Assets:
Cash and cash equivalents	$	526,559		$	507,681
Receivables, net		417,639			466,782
Inventories, net		497,183			496,831
Assets held for sale		241,791			14,001
Prepaid expenses and other current assets		85,617			78,602
Total current assets		1,768,789			1,563,897

Property, plant and equipment, net		729,931			755,422
Goodwill		619,505			718,944
Intangible assets, net		247,907			258,614
Other non-current assets		134,258			173,375
Total assets	$	3,500,390		$	3,470,252

*LIABILITIES AND EQUITY*
Current Liabilities:
Current portion of long-term debt	$	6,203		$	6,203
Accounts payable		498,335			455,531
Liabilities held for sale		61,415			—
Other current liabilities		218,943			324,138
Total current liabilities		784,896			785,872

Long-term debt		590,746			591,453
Other long-term liabilities		220,054			261,749
Stockholders’ equity:
ChampionX stockholders’ equity		1,916,726			1,846,437
Noncontrolling interest		(12,032	)		(15,259	)
Total liabilities and equity	$	3,500,390		$	3,470,252

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Three Months Ended March 31,
(in thousands)		2025			2024
Cash flows from operating activities:
Net income	$	89,028		$	113,160
Depreciation and amortization		60,056			59,580
(Gain) loss on sale-leaseback transaction		—			(29,883	)
Loss on Argentina Blue Chip Swap transaction		—			4,092
Deferred income taxes		(10,941	)		(12,903	)
Loss (gain) on disposal of fixed assets		1,616			1,107
Receivables		13,937			62,915
Inventories		(25,569	)		(39,873	)
Accounts payable		40,675			68,248
Other assets		(19,955	)		(602	)
Leased assets		(6,665	)		(4,254	)
Other operating items, net		(75,380	)		(48,079	)
Net cash flows provided by operating activities		66,802			173,508

Cash flows from investing activities:
Capital expenditures		(31,250	)		(31,912	)
Proceeds from sale of fixed assets		3,004			2,390
Proceeds from sale-leaseback transaction		—			44,292
Purchase of investments		—			(17,162	)
Sale of investments		—			13,070
Acquisitions, net of cash acquired		—			(21,472	)
Net cash used for investing activities		(28,246	)		(10,794	)

Cash flows from financing activities:
Repayment of long-term debt		(1,551	)		(1,551	)
Repurchases of common stock		—			(49,399	)
Dividends paid		(18,110	)		(16,247	)
Other		(488	)		3,104
Net cash used for financing activities		(20,149	)		(64,093	)

Effect of exchange rate changes on cash and cash equivalents		471			(1,161	)

Net increase in cash and cash equivalents		18,878			97,460
Cash and cash equivalents at beginning of period		507,681			288,557
Cash and cash equivalents at end of period	$	526,559		$	386,017

CHAMPIONX CORPORATION
BUSINESS SEGMENT DATA
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Segment revenue:
Production Chemical Technologies	$	523,390		$	569,662		$	590,108
Production & Automation Technologies		264,377			269,568			252,614
Drilling Technologies		50,530			51,942			55,206
Reservoir Chemical Technologies		26,926			21,937			24,705
Corporate and other		(759	)		(1,072	)		(492	)
Total revenue	$	864,464		$	912,037		$	922,141

Income before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	82,172		$	103,567		$	87,832
Production & Automation Technologies		37,554			39,027			28,470
Drilling Technologies		8,174			10,703			44,402
Reservoir Chemical Technologies		5,529			2,294			3,746
Total segment operating profit		133,429			155,591			164,450
Corporate and other		15,821			25,101			10,759
Interest expense, net		13,196			12,375			13,935
Income before income taxes	$	104,412		$	118,115		$	139,756

Operating profit margin / income before income taxes margin:
Production Chemical Technologies		15.7	%		18.2	%		14.9	%
Production & Automation Technologies		14.2	%		14.5	%		11.3	%
Drilling Technologies		16.2	%		20.6	%		80.4	%
Reservoir Chemical Technologies		20.5	%		10.5	%		15.2	%
ChampionX Consolidated		12.1	%		13.0	%		15.2	%

Adjusted EBITDA
Production Chemical Technologies	$	109,065		$	133,475		$	118,031
Production & Automation Technologies		70,269			70,739			60,340
Drilling Technologies		10,237			12,321			16,074
Reservoir Chemical Technologies		6,347			3,751			5,346
Corporate and other		(5,049	)		(8,021	)		(8,079	)
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

Adjusted EBITDA margin
Production Chemical Technologies		20.8	%		23.4	%		20.0	%
Production & Automation Technologies		26.6	%		26.2	%		23.9	%
Drilling Technologies		20.3	%		23.7	%		29.1	%
Reservoir Chemical Technologies		23.6	%		17.1	%		21.6	%
ChampionX Consolidated		22.1	%		23.3	%		20.8	%

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Net income attributable to ChampionX	$	85,797		$	82,766		$	112,923
Pre-tax adjustments:
(Gain) loss on sale leaseback transaction⁽¹⁾		—			—			(29,883	)
Russia sanctions compliance and impacts⁽²⁾		28			73			152
Restructuring and other related charges		1,059			2,704			1,709
Merger transaction costs⁽³⁾		10,232			14,434			—
Acquisition costs and related adjustments⁽⁴⁾		—			75			1,232
Intellectual property defense		382			158			779
Merger-related indemnification responsibility⁽⁵⁾		—			100			—
Tulsa, Oklahoma storm damage		—			—			305
Foreign currency transaction losses (gains), net		1,504			1,697			55
Loss on Argentina Blue Chip Swap transaction		—			—			4,092
Tax impact of adjustments		(2,971	)		(5,565	)		5,066
Adjusted net income attributable to ChampionX		96,031			96,442			96,430
Tax impact of adjustments		2,971			5,565			(5,066	)
Net income attributable to noncontrolling interest		3,231			2,145			237
Depreciation and amortization		60,056			62,534			59,580
Provision for income taxes		15,384			33,204			26,596
Interest expense, net		13,196			12,375			13,935
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

_______________________

_{(1) Amount represents the gain on the sale and leaseback of certain buildings and land.}
_{(2) Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.}
_{(3) Includes costs incurred in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.}
_{(4) Includes costs incurred for the acquisition of businesses.}
_{(5) Expense related to the June 3, 2020 merger transaction with Ecolab in which we acquired the Chemical Technologies business.}

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Diluted earnings per share attributable to ChampionX	$	0.44		$	0.43		$	0.58
Per share adjustments:
(Gain) loss on sale leaseback transaction and disposal group		—			—			(0.15	)
Russia sanctions compliance and impacts		—			—			—
Restructuring and other related charges		0.01			0.01			0.01
Merger transaction costs		0.05			0.07			—
Acquisition costs and related adjustments		—			—			0.01
Intellectual property defense		—			—			—
Merger-related indemnification responsibility		—			—			—
Tulsa, Oklahoma storm damage		—			—			—
Foreign currency transaction losses (gains), net		0.01			0.01			—
Loss on Argentina Blue Chip Swap transaction		—			—			0.02
Tax impact of adjustments		(0.01	)		(0.02	)		0.03
Adjusted diluted earnings per share attributable to ChampionX	$	0.50		$	0.50		$	0.50

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Production Chemical Technologies
Segment operating profit	$	82,172		$	103,567		$	87,832
Non-GAAP adjustments		1,658			2,251			3,933
Depreciation and amortization		25,235			27,657			26,266
Segment adjusted EBITDA	$	109,065		$	133,475		$	118,031

Production & Automation Technologies
Segment operating profit	$	37,554		$	39,027		$	28,470
Non-GAAP adjustments		764			75			2,076
Depreciation and amortization		31,951			31,637			29,794
Segment adjusted EBITDA	$	70,269		$	70,739		$	60,340

Drilling Technologies
Segment operating profit	$	8,174		$	10,703		$	44,402
Non-GAAP adjustments		766			306			(29,883	)
Depreciation and amortization		1,297			1,312			1,555
Segment adjusted EBITDA	$	10,237		$	12,321		$	16,074

Reservoir Chemical Technologies
Segment operating profit	$	5,529		$	2,294		$	3,746
Non-GAAP adjustments		(278	)		39			16
Depreciation and amortization		1,096			1,418			1,584
Segment adjusted EBITDA	$	6,347		$	3,751		$	5,346

Corporate and other
Segment operating profit	$	(29,017	)	$	(37,476	)	$	(24,694	)
Non-GAAP adjustments		10,295			16,570			2,299
Depreciation and amortization		477			510			381
Interest expense, net		13,196			12,375			13,935
Segment adjusted EBITDA	$	(5,049	)	$	(8,021	)	$	(8,079	)

Free Cash Flow

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Free Cash Flow
Cash flows from operating activities	$	66,802		$	207,250		$	173,508
Less: Capital expenditures, net of proceeds from sale of fixed assets		(28,246	)		(37,117	)		(29,522	)
Free cash flow	$	38,556		$	170,133		$	143,986

Cash From Operating Activities to Revenue Ratio
Cash flows from operating activities	$	66,802		$	207,250		$	173,508
Revenue	$	864,464		$	912,037		$	922,141

Cash from operating activities to revenue ratio		8	%		23	%		19	%

Free Cash Flow to Revenue Ratio
Free cash flow	$	38,556		$	170,133		$	143,986
Revenue	$	864,464		$	912,037		$	922,141

Free cash flow to revenue ratio		4	%		19	%		16	%

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	38,556		$	170,133		$	143,986
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

Free cash flow to adjusted EBITDA ratio		20	%		80	%		75	%

The MIL Network –

April 30, 2025

MIL-OSI USA: Wyden Urges Commerce Department to Establish Clear Guidelines to Prevent the Illegal Diversion of Firearms Sold Abroad

US Senate News:

Source: United States Senator Ron Wyden (D-Ore)

April 29, 2025

Washington, D.C. — U.S. Senator Ron Wyden, D-Ore., today called on the Commerce Department to establish clear guidelines to prevent the illegal diversion of American-made firearms sold abroad.

Wyden’s letter to Commerce Department Secretary Howard Lutnick follows recent reports indicating that staffing shortages at the Bureau of Industry and Security (BIS), a subagency of Commerce, have hampered its ability to effectively vet foreign companies purchasing U.S.-made firearms and prevent them from diverting these weapons to terrorists or other criminals.

“End-use checks, which require on-location verification of importers’ bona fides, are the cornerstone of an effective export control policy and are paramount to ensure end user compliance with approved license agreements and to verify that controlled dual-use items like firearms are not being illicitly diverted or re-exported to bad actors,” Wyden stated in his letter to Secretary Lutnick.

These staffing shortages have also led BIS to rely in some cases on the International Trade Administration (ITA) – whose primary responsibility is to promote and facilitate U.S. commercial interests abroad – to carry out on-site inspections known as “end-use checks,” which are meant to ensure that purchasers are not merely operating as fronts to funnel American-made firearms to criminal organizations. However, in some cases, ITA staff who conducted end-use checks also recruited foreign businesses to attend a firearms trade show, posing a clear conflict of interest.

“An official charged with national security responsibilities over certain firearms cannot and should not be the same official charged with selling the same firearms,” Wyden emphasized, raising further concerns about ITA’s serious conflict of interest in playing two very different roles at once. ITA officials may also lack the requisite training, knowledge, and investigative experience to vet foreign actors purchasing American firearms.

To prevent conflicts of interest and strengthen oversight to ensure American firearms exported abroad do not end up in the hands of foreign terrorist organizations or other bad actors, Wyden requested Secretary Lutnick create clear intra-agency guidelines and respond to the following questions:

Is BIS planning on establishing an Export Control Officer position for either the Western Hemisphere or Africa?
Will the Commerce Department commit to requiring BIS and ITA to develop guidance, including standard operating procedures for ITA FCS officers who are conducting end-use checks?
Does ITA have a policy on allowing locally employed staff to conduct end-use monitoring?
What training do ITA FCS officers currently receive regarding end-use monitoring and Export Administration Regulations?
How many end-use checks for firearms or related items such as ammunition and optical devices have been conducted by ITA FCS officers in the last five calendar years? How many of these checks resulted in the denial of exports?
How many firearms export licenses have been approved by BIS since February 1, 2025?

The text of the letter is here.

MIL OSI USA News –

April 30, 2025

MIL-OSI USA: Cortez Masto Joins Senators Pressing Administration on How Mass CFPB Firings Will Hurt Working Nevadans

US Senate News:

Source: United States Senator for Nevada Cortez Masto

Washington, D.C. – Today, U.S. Senator Catherine Cortez Masto (D-Nev.) joined 40 Democratic Senators in a letter to Consumer Financial Protection Bureau (CFPB) Acting Director Russell Vought outlining more than 80 congressionally mandated functions of the CFPB and pressing for answers on how the agency would be able to protect hardworking Americans from scams and fraud after firing almost the entire staff.

Senator Cortez Masto has been a longstanding champion for the CFPB and has consistently fought to protect Nevadans from fraud. Last year, she called out the Navy Federal Credit Union for its racial disparities in mortgage lending. Following a push from Cortez Masto, the CFPB created new consumer protections for homeowners who apply for Property Assessed Clean Energy loans to help them make energy-efficient upgrades to their homes. She has also introduced legislation to incentivize whistleblowers to report consumer fraud to the CFPB.

“Last week, you tried to fire nearly all of the agency’s remaining 1,700 employees—the staff responsible for fulfilling the CFPB’s mission and statutory requirements to prevent Americans from getting scammed by big banks and giant corporations,” wrote the senators. “Your hasty and unjustified mass firings are an illegal shutdown of the CFPB that will leave it unable to conduct agency actions that are required by law.”

“You directed the gutting of entire divisions—including departments created by Congress to protect servicemembers and older Americans—attempting to leave a shell of only 200 employees to supervise and examine large financial institutions across the country, respond to millions of consumer complaints, answer the phone for hundreds of thousands of people seeking help, monitor emergency financial risks, and run all of the agency’s other operations,” they continued.

The Senators laid out in detail the impact the mass layoffs would have on specific functions of the CFPB––including firing all but one employee helping victims of scams in the offices focused on our nation’s two million servicemembers and tens of millions of older Americans.

“We request that you provide—by April 30, 2025—a detailed accounting of each of the more than 80 statutory obligations of the CFPB, the number of employees assigned to each of those functions as of December 2024, the number of employees who would be assigned to each function if your rushed reduction in force were to go into effect, the immediate impact of such a reduction on the agency’s ability to perform each function consistent with federal law and federal court orders, and copies of any individualized or particularized analysis of those planned reductions on the agency’s work,” they concluded.

The full text of the letter can be found here.

Senator Cortez Masto has pushed multiple Departments under the Trump Administration for detailed, public information regarding the impacts of President Trump’s federal funding freeze, hiring freeze, and terminations on Nevada – including to the Department of the Interior, the U.S. Forest Service, the National Nuclear Security Administration, the Department of Veterans Affairs, Department of Agriculture, General Services Administration, and Department of Health and Human Services.

MIL OSI USA News –

April 30, 2025

Category: Commerce

What are these new laws in SA?

Inconsistencies across Australia

Why now?

Will the laws be good for the community?

Source: Banking Ombudsman Scheme

Families to get more choice over home upgrades

Stakeholder reaction:

Notes to Editors:

Share this page

Updates to this page

Stabilize and strengthen the national economy

Streamlining natural resource projects

Boost Canada’s productivity through innovation

Dealing with U.S. tariffs