Category: Economy

  • MIL-OSI Global: Chad’s parliamentary election hands Mahamat Déby absolute control. Here’s why it’s dangerous

    Source: The Conversation – Africa – By Helga Dickow, Senior Researcher at the Arnold Bergstraesser Institut, Freiburg Germany, University of Freiburg

    Chad held parliamentary elections in late December 2024. The final results released on 21 January 2025 gave the well-established former ruling party, the Movement Patriotique du Salut (MPS), 124 seats out of 188.

    The election marked the end of a four-year transition in Chad following the death of former president Idriss Déby Itno in March 2021. Déby had ruled Chad since 1991. Mahamat Déby Itno assumed power on the death of his father.

    The result has meant that Mahamat Déby has given himself a degree of legitimacy as president through elections. He can comfortably remain in power for at least another five or even ten years.




    Read more:
    Chad’s election outcome already seems set: 4 things Mahamat Déby has done to stay in power


    I have been following Chad’s politics from inside and outside the country for more than 15 years. In my view, Mahamat Déby’s actions during the transition, with the help of the transitional authorities and his late father’s old teams, were aimed at keeping him in power. The December 2024 parliamentary elections were a formality. The poll was not won on polling day. It was clear from the run-up that, as was the case with the May 2024 presidential elections, every effort was being made to minimise the success of the opposition.

    Four factors stand out. They are the composition of the electoral authorities, lack of an up-to-date electoral register, violence against dissenting voices, and high costs of participation in the election.

    In my view Chadians’ trust in the democratic process has ceased completely. This bodes ill for a country that ranks as one of the poorest. It is also one of the most corrupt. The consolidation of Mahamat Déby’s power could widen the social divide and lead to violent conflict between different groups in Chad, which is highly stratified along ethnic and religious lines.

    Dissatisfaction with his decades of autocratic rule characterised Idriss Déby’s reign. Political-military movements challenged him regularly, and the last attack led to his death.

    This dissatisfaction will continue and could once again lead to violent conflicts.




    Read more:
    Chad: promises of a new chapter fade as junta strengthens its hold ahead of elections


    Corruption of the process

    Mahamat Déby and the Movement Patriotique du Salut took a number of steps to secure victory in the election.

    Firstly, the presidents of the electoral authority ANGE (Agence Nationale de Gestion des Élections) and of the constitutional court nominated by Mahamat Déby were responsible for organising and for validating elections (and will continue to be responsible until 2031). Having been loyal to Idriss Déby and now to his son, they cannot be trusted to be objective and independent in their pronouncements and final decisions.

    Secondly, the electoral register was last updated in August 2024. Therefore, young people who had just turned 18 could not vote. In Chad, the majority of the population is under 25. Young people in particular in the south support the opposition.

    Thirdly, the transitional regime’s violent crackdown on opposing voices played a role in the final outcome of the election.

    The transition was initially characterised by peace talks with the political-military movements and by expanding the security sector to secure its rule. In October 2022, several hundred mainly young people were killed by security forces while demonstrating against the extension of the transition and Mahamat Déby’s candidacy for presidency.

    In the intervening period the state took various steps against opposition figures.

    In February 2024 Yaya Dillo, a cousin of Mahamat Deby and a potential rival in the presidential elections, was shot dead by security forces.

    In May 2024, Mahamat Déby was elected president. In December 2024 he took on the title of marshal – previously held only by his father.

    The opposition was also hampered in participating in the poll for financial reasons. Taking part in the elections is expensive. Each candidate in the parliamentary election had to pay 500,000 CFA (US$785) to the treasury. Candidates for the provincial election paid 200,000 CFA (US$314). In poverty-stricken Chad, without regular funding for political parties, it was particularly difficult for smaller parties to meet these criteria.

    The situation was different for the ruling party, founded by Idriss Déby. For decades it has benefited from state resources. It is the only party with a nationwide presence. Other parties are mainly active in the regions of their founders.




    Read more:
    Chad’s Mahamat Deby doubles down on authoritarian rule in wake of election victory


    Resistance

    Opposition parties called for a boycott. The Groupe de Concertation des Acteurs Politiques, a coalition of nine parties, criticised the new electoral law and the lack of transparency of the count at the polling stations.

    Succès Masra, leader of Les Transformateurs, a former prime minister who came second in the 2024 presidential elections, also called for a boycott. He accused the government of falsifying the results of the parliamentary election beforehand and of having the final lists saved in a computer. His party did not participate in the poll.

    The results of the parliamentary elections presented on 11 January 2025 by Ahmed Barticheret, president of the electoral commission, and confirmed by the constitutional court on 21 January, therefore revealed no surprises.

    Alongside the huge victory of the Movement Patriotique du Salut, two other parties not really in opposition won 12 and 7 seats respectively. The other successful parties won just one seat each. Chad has over 300 political parties, of which 38 are represented in the new parliament.




    Read more:
    Chad presidential election: assassination of main opposition figure casts doubt on country’s return to democracy


    Consequences

    Movement Patriotique du Salut has an overwhelming majority in parliament. This means that there are no checks and balances. Like his father, Mahamat Déby can continue to rule without any parliamentary control.

    He is already used to that. Since 2021, he has appointed members of the transitional parliament by presidential decree. The few voices of individual members of parliament belonging to the “real” opposition have no influence.

    As the low turnout – put at 40% on election day – shows, the majority of voters did not expect the election result to change the political situation. On the other hand, supporters of the ruling party continue to benefit from proximity to power and state resources.

    As dissatisfaction continues, the possibility of renewed attacks by dissidents cannot be ruled out. If it is not a military attack, frustrated individuals might try to target the presidency or other symbols of the regime.

    In early January 2025 a group of unidentified young people reportedly attacked the presidency. The incident was played down by the government spokesman, leaving plenty of room for speculation.

    But it was a reminder that a peaceful future is not assured.

    Helga Dickow 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. Chad’s parliamentary election hands Mahamat Déby absolute control. Here’s why it’s dangerous – https://theconversation.com/chads-parliamentary-election-hands-mahamat-deby-absolute-control-heres-why-its-dangerous-248342

    MIL OSI – Global Reports

  • MIL-OSI Global: Why building big AIs costs billions – and how Chinese startup DeepSeek dramatically changed the calculus

    Source: The Conversation – USA – By Ambuj Tewari, Professor of Statistics, University of Michigan

    DeepSeek burst on the scene – and may be bursting some bubbles. AP Photo/Andy Wong

    State-of-the-art artificial intelligence systems like OpenAI’s ChatGPT, Google’s Gemini and Anthropic’s Claude have captured the public imagination by producing fluent text in multiple languages in response to user prompts. Those companies have also captured headlines with the huge sums they’ve invested to build ever more powerful models.

    An AI startup from China, DeepSeek, has upset expectations about how much money is needed to build the latest and greatest AIs. In the process, they’ve cast doubt on the billions of dollars of investment by the big AI players.

    I study machine learning. DeepSeek’s disruptive debut comes down not to any stunning technological breakthrough but to a time-honored practice: finding efficiencies. In a field that consumes vast computing resources, that has proved to be significant.

    Where the costs are

    Developing such powerful AI systems begins with building a large language model. A large language model predicts the next word given previous words. For example, if the beginning of a sentence is “The theory of relativity was discovered by Albert,” a large language model might predict that the next word is “Einstein.” Large language models are trained to become good at such predictions in a process called pretraining.

    Pretraining requires a lot of data and computing power. The companies collect data by crawling the web and scanning books. Computing is usually powered by graphics processing units, or GPUs. Why graphics? It turns out that both computer graphics and the artificial neural networks that underlie large language models rely on the same area of mathematics known as linear algebra. Large language models internally store hundreds of billions of numbers called parameters or weights. It is these weights that are modified during pretraining.

    Large language models consume huge amounts of computing resources, which in turn means lots of energy.

    Pretraining is, however, not enough to yield a consumer product like ChatGPT. A pretrained large language model is usually not good at following human instructions. It might also not be aligned with human preferences. For example, it might output harmful or abusive language, both of which are present in text on the web.

    The pretrained model therefore usually goes through additional stages of training. One such stage is instruction tuning where the model is shown examples of human instructions and expected responses. After instruction tuning comes a stage called reinforcement learning from human feedback. In this stage, human annotators are shown multiple large language model responses to the same prompt. The annotators are then asked to point out which response they prefer.

    It is easy to see how costs add up when building an AI model: hiring top-quality AI talent, building a data center with thousands of GPUs, collecting data for pretraining, and running pretraining on GPUs. Additionally, there are costs involved in data collection and computation in the instruction tuning and reinforcement learning from human feedback stages.

    All included, costs for building a cutting edge AI model can soar up to US$100 million. GPU training is a significant component of the total cost.

    The expenditure does not stop when the model is ready. When the model is deployed and responds to user prompts, it uses more computation known as test time or inference time compute. Test time compute also needs GPUs. In December 2024, OpenAI announced a new phenomenon they saw with their latest model o1: as test time compute increased, the model got better at logical reasoning tasks such as math olympiad and competitive coding problems.

    Slimming down resource consumption

    Thus it seemed that the path to building the best AI models in the world was to invest in more computation during both training and inference. But then DeepSeek entered the fray and bucked this trend.

    DeepSeek sent shockwaves through the tech financial ecosystem.

    Their V-series models, culminating in the V3 model, used a series of optimizations to make training cutting edge AI models significantly more economical. Their technical report states that it took them less than $6 million dollars to train V3. They admit that this cost does not include costs of hiring the team, doing the research, trying out various ideas and data collection. But $6 million is still an impressively small figure for training a model that rivals leading AI models developed with much higher costs.

    The reduction in costs was not due to a single magic bullet. It was a combination of many smart engineering choices including using fewer bits to represent model weights, innovation in the neural network architecture, and reducing communication overhead as data is passed around between GPUs.

    It is interesting to note that due to U.S. export restrictions on China, the DeepSeek team did not have access to high performance GPUs like the Nvidia H100. Instead they used Nvidia H800 GPUs, which Nvidia designed to be lower performance so that they comply with U.S. export restrictions. Working with this limitation seems to have unleashed even more ingenuity from the DeepSeek team.

    DeepSeek also innovated to make inference cheaper, reducing the cost of running the model. Moreover, they released a model called R1 that is comparable to OpenAI’s o1 model on reasoning tasks.

    They released all the model weights for V3 and R1 publicly. Anyone can download and further improve or customize their models. Furthermore, DeepSeek released their models under the permissive MIT license, which allows others to use the models for personal, academic or commercial purposes with minimal restrictions.

    Resetting expectations

    DeepSeek has fundamentally altered the landscape of large AI models. An open weights model trained economically is now on par with more expensive and closed models that require paid subscription plans.

    The research community and the stock market will need some time to adjust to this new reality.

    Ambuj Tewari receives funding from NSF and NIH.

    ref. Why building big AIs costs billions – and how Chinese startup DeepSeek dramatically changed the calculus – https://theconversation.com/why-building-big-ais-costs-billions-and-how-chinese-startup-deepseek-dramatically-changed-the-calculus-248431

    MIL OSI – Global Reports

  • MIL-OSI Russia: Partnership of GUU and KubSAU: new prospects for the Russian agro-industry

    Translartion. Region: Russians Fedetion –

    Source: State University of Management – Official website of the State –

    On January 29, 2024, a ceremonial signing of a cooperation agreement between the State University of Management and the Kuban State Agrarian University named after I.T. Trubilin took place.

    On behalf of our university, the signature was put by Rector Vladimir Stroyev, on behalf of KubSAU – by Rector Alexander Trubilin. In addition to them, the meeting was attended by Advisor to the Rector’s Office of the State University of Management Nikolay Mikhailov and Head of the Department for Coordination of Scientific Research of the State University of Management Maxim Pletnev, as well as Dean of the Faculty of Finance and Credit of KubSAU Alexander Adamenko.

    The first step in implementing the agreement will be the opening of a network educational program for bachelor’s degrees in Finance and Business Management. The new educational program provides the opportunity to obtain a bachelor’s degree in economics and management within the framework of one diploma. It provides for alternating study locations: Krasnodar (first and second years) – Moscow (third year) – Krasnodar (fourth year).

    Welcoming the guests, Vladimir Stroyev noted that the meeting had been planned for quite a long time and had finally taken place. The rector briefly spoke about the history of the State University of Management, which is noticeably longer than the official 105 years. During this time, the university has participated and continues to participate in many global state transformations.

    Vladimir Vitalievich spoke in more detail about the main historical areas of the university’s work. He spoke about the first department of personnel management in the country. He shared the successes of the department of state and municipal management. And he placed special emphasis on the approach to management that has changed over time. Fortunately, the State University of Management managed to preserve some areas of industry management, which is again in great demand in the labor market today.

    The rector also particularly noted that GUU has taken the path of developing network programs. In this regard, our university is a leader in Russia. At the moment, eight such programs are being implemented and three more are in development.

    Rector of KubSAU Alexander Trubilin admitted that they also have a task to develop network programs, but so far only one is being implemented, with MGIMO. And since the State University of Management has gone so far ahead, it makes even more sense to cooperate in this direction and adopt experience.

    Aleksandr Ivanovich also spoke about the specifics of working in the Krasnodar Region, a region with the highest population growth in the country and a 50/50 urban-rural ratio. The region’s universities are faced with the task of maintaining this ratio, that is, helping to retain young specialists in the field. For the comprehensive development of rural areas, KubSAU is expanding the range of educational programs and seeking cooperation with other universities.

    In response to this, Vladimir Stroyev spoke about the activities of the Eurasian Network University, which has already gone beyond not only the Eurasian Economic Union, but also the geographical boundaries of Eurasia. The rector invited his colleague to join the consortium if he wished.

    Maxim Pletnev, Head of the Scientific Research Coordination Department of the State University of Management, told the guests about the university’s scientific work, in particular about the digital estate project, which is a core project for KubSAU and is being implemented jointly with the Omsk Agricultural Research Center and the Udmurt State University. He reported on the trip of young scientists from the State University of Management to an internship at the largest agricultural holding company, STEPPE, as a result of which the university received an order to develop import-substituted parts for agricultural machinery. He also mentioned joint projects within the framework of the RosGeoTech Advanced Engineering School.

    The final part of the visit was the excursion program, within the framework of which the guests visited the Pre-University of the State University of Management, asking with interest about the number of students, the conditions for admission, the academic performance of schoolchildren and the number of those entering our university after that. Representatives of KubSAU looked into the Sports Complex and the Information Technology Center. They also visited the Media Center, which they were completely delighted with. They lingered for a long time in the laboratory of the Director of the Engineering Project Management Center Vladimir Filatov, who spoke about the work of the inter-university design bureau, clarified the details of the digital village project and gave examples of joint developments with TMH Engineering. Also, the head of engineering projects of the State University of Management showed on the screen of the work computer a project of an unmanned aerial vehicle, which is currently at the exhibition, and said that flight tests will take place this year. The guests were interested in the development and offered to use their test site for the first flights of the drone from the State University of Management.

    Subscribe to the TG channel “Our GUU” Date of publication: 01/29/2025

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI: Main Street Financial Services Corp. Announces Earnings for Fourth Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    Business Highlights

    • Financial results reflect the second full quarter following the completed merger of Main Street Financial Services Corp. (Main Street) and Wayne Savings Bancshares, Inc. (Wayne) on May 31, 2024.
    • Net income for the fourth quarter of 2024 totaled $3.2 million, or $0.41 per common share
    • Annualized deposit growth of 19.7% for the quarter ended December 31, 2024
    • Reduced reliance on wholesale funding by $40 million during the fourth quarter of 2024
    • Declared cash dividend of $0.14 per share on January 10, 2025

    WOOSTER, Ohio, Jan. 29, 2025 (GLOBE NEWSWIRE) — Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported a net income of $3.2 million, or $0.41 per common share, for the three months ended December 31, 2024. The return on average equity and return on average assets for the fourth quarter of 2024 was 11.69% and 0.90%, compared to 16.90% and 1.02%, for the fourth quarter of 2023.

    The Company announced a merger of equals transaction with Wayne Savings Bancshares, Inc. (“Legacy Wayne”) on February 23, 2023. On May 31, 2024 (the “Merger Date”), the Company completed the transaction, forming a financial holding company with assets of $1.4 billion. On the Merger Date, Legacy Wayne merged with and into Main Street, with Main Street surviving the merger (the “Merger”). Immediately following the Merger, Main Street’s wholly owned bank subsidiary, Main Street Bank Corp., merged with and into Wayne Savings Community Bank, with Wayne Savings Community Bank surviving the merger. Upon completion of the Merger, Wayne Savings Community Bank was renamed Main Street Bank Corp.

    The Merger was accounted for as a reverse merger using the acquisition method of accounting, therefore, Legacy Wayne was deemed the acquirer for financial reporting purposes, even though Main Street was the legal acquirer. Accordingly, Legacy Wayne’s historical financial statements are the historical financial statements of the combined company for all periods before the Merger Date. Our consolidated statements of income for the quarters ended June 30, 2024, September 30, 2024 and December 31, 2024, include the results from Main Street on and after May 31, 2024. Results for periods before May 31, 2024, reflect only those of Legacy Wayne and do not include the consolidated statements of income of Main Street. Accordingly, comparisons of our results for the quarter ended December 31, 2024, with those of prior periods may not be meaningful. The number of shares issued and outstanding, earnings per share, dividends paid and all references to share quantities of Main Street have been retrospectively adjusted to reflect the equivalent number of shares issued in the Merger.

    President and CEO James R. VanSickle commented, “I am proud of the dedication and hard work displayed by Main Street Bank’s team of community bankers throughout 2024. They have been instrumental in the improvement of our operational efficiencies, enhancement of our customer experience and delivering long-term value for our shareholders. I would like to thank our customers, shareholders and our communities for their confidence in Main Street Bank.”

    Fourth Quarter 2024 Financial Results

    Net interest income was $10.6 million for the quarter ended December 31, 2024, an increase of 103.4% from $5.2 million for the quarter ended December 31, 2023. The net interest margin of 3.19% for the fourth quarter of 2024 increased 46 basis points from 2.73% for the fourth quarter of 2023. Loan yields were 6.12% for the quarter ended December 31, 2024, an increase of 82 basis points when compared to 5.30% for the quarter ended December 31, 2023. The loan yield increase is the result of variable rate loan repricing, new loan originations at current markets rates and purchase accounting accretion on acquired loans. Investment yields increased 122 basis points to 3.59% as of December 31, 2024 when compared to the quarter ended December 31, 2023. The cost of funds for the fourth quarter of 2024, was 2.66%, an increase of 33 basis points when compared to the fourth quarter of 2023. The cost of funds increase is largely due to shifting deposit composition to higher-yielding product offerings and utilizing higher-cost wholesale funding, such FHLB advances. The cost of total deposits was 2.25% for the quarter ended December 31, 2024, a 21 basis point increase when compared to 2.04% for the quarter ended December 31, 2023. The cost of borrowings for the quarter ended December 31, 2024 totaled 5.64%, an increase of 94 basis points when compared to the quarter ended December 31, 2023.

    A provision for credit losses and unfunded commitments of $79,000 was recorded for the quarter ended December 30, 2024. During the quarter, the Company recognized $20,000 in charge-offs and $5,000 in recoveries, reflecting relatively stable asset quality.

    Noninterest income totaled $1.2 million for the quarter ended December 31, 2024, an increase of $148,000, or 14.6%, when compared to the quarter ended December 31, 2023. Noninterest income declined by $435,000 when compared to the quarter ended September 30, 2024. During the quarter ended September 30, 2024, the Company recognized a gain on the sale of investments totaling $702,000.

    Noninterest expense totaled $8.0 million for the quarter ended December 31, 2024, an increase of $4.2 million when compared to the quarter ended December 31, 2023. Noninterest expense increased by $87,000 when compared to the quarter ended September 30, 2024 due to increased incentive compensation and a charge related to the disposition of an REO property. The increase reflects a full quarter of combined expenses after completion of the merger.

    The provision for income taxes for the quarter ended December 31, 2024, decreased by $246,000 compared to the quarter ended September 30, 2024. This reduction was primarily driven by the Company’s reassessment of the West Virginia state income tax impact.

    December 31, 2024 Financial Condition

    At December 31, 2024, the Company had total assets of $1.41 billion with net loan balances totaling $1.11 billion. Loan balances remained relatively unchanged for the quarter ended December 31, 2024. As part of the merger, the Company acquired $430.8 million in loans.

    The allowance for credit losses was $11.8 million at December 31, 2024, compared to $7.3 million at December 31, 2023. The increase is a result of establishing an allowance for credit losses on the acquired non-PCD loan portfolio during the second quarter of 2024. The allowance for credit losses as a percent of total loans was 1.05%, compared to 1.09% as of December 31, 2023. The allowance for credit losses and the related provision for credit losses is based on management’s judgment and evaluation of the loan portfolio. Management believes the current allowance for credit losses is adequate, however, changing economic and other conditions may require future adjustments to the allowance for credit losses.

    Total nonperforming loans (NPLs) was $6.1 million at December 31, 2024, an increase from $0.6 million at December 31, 2023. The NPL to net loan receivable ratio was 0.55% as of December 31, 2024. Past due loan balances of 30 days and more increased from $2.8 million at December 31, 2023, to $13.8 million, or 1.24% of net loans outstanding, at December 31, 2024. The increase in nonperforming and past due loans is due to the impact of the acquired loan portfolio.

    Improvement in Asset Quality Since Merger Announcement: The combined level of classified loans and loans past due 30 or more days for Legacy Wayne and Main Street was $24.4 million and $19.1 as of December 31, 2022. Since the merger announcement on February 23, 2023, the management teams of both Main Street and Wayne invested a great deal of time ensuring our combined organization utilizes strong underwriting standards and proactively monitors credit quality. Main Street sold approximately $15.2 million of loans in August 2023 and April 2024, of which approximately $12.7 million were classified loans. As of December 31, 2024, the resultant Company has $14.8 of classified loans and $13.8 of loans past due 30 or more days.

    Total liabilities increased to $1.30 billion at December 31, 2024 with deposits totaling $1.16 billion and FHLB advances totaling $100.0 million. Deposits grew by $54.3 million, or 19.7% annualized, during the fourth quarter of 2024. As part of the merger, the Company acquired $487.4 million in deposits. As of December 31, 2024, the Company held no brokered deposits compared to $116.7 million at December 31, 2023. The Company leverages FHLB advances for short-term funding needs due to their accessibility and alignment with prevailing market rates. During the fourth quarter of 2024, the Company reduced the reliance on FHLB advances by $40 million.

    Total stockholders’ equity was $110.6 million at December 31, 2024, an increase of $57.7 million when compared to the December 31, 2023 balance. The increase was primarily driven by the merger between Main Street and Wayne. Total stockholders’ equity decreased during the fourth quarter of 2024 primarily from a decrease in accumulated other comprehensive income of $4.7 million and dividends of $1.1 million, partially offset by net income of $3.2 million.

    Main Street Financial Services Corp. is a holding company headquartered in Wooster, Ohio. Its primary subsidiary, Main Street Bank Corp. was founded in 1899 and provides full-service banking, commercial lending, and mortgage services across its branch infrastructure. Today, Main Street Bank Corp. operates 19 branch locations in Wooster, Ohio, Wheeling, West Virginia and other surrounding communities in Ohio and West Virginia. Additional information about Main Street Bank Corp. is available at www.mymainstreetbank.bank.

    Non-GAAP Disclosure
    This press release includes disclosures of the Company’s return on average equity, return on average assets, net income, and efficiency ratios which are excluding costs related to merger activities which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flow that excludes or includes amounts that are required to be disclosed by GAAP. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP.

    Forward-LookingStatements
    This release contains forward-looking statements that are not historical facts and that are intended to be “forward-looking statements” as that term is defined by the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts and pertain to the Company’s future operating results.  When used in this release, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward-looking statements.  Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control.  These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency risks in the Company’s loan portfolios; shifts in interest rates; shifts in the rate of inflation; shifts in the demand for the Company’s loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment.  Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    Contact Information:
    Matthew Hartzler
    Senior Vice President, Chief Financial Officer
    (330) 264-5767

       
    MAIN STREET FINANCIAL SERVICES CORP.
    Condensed Consolidated Balance Sheets
    (Dollars in thousands, except share data – unaudited)
       
        December 31, 2024   December 31, 2023
    ASSETS            
                 
    Cash and cash equivalents   $ 54,422     $ 20,884  
    Securities, net (1)   163,819     86,405  
    Loans receivable, net   1,113,900     669,603  
    Federal Home Loan Bank stock   6,445     3,959  
    Premises & equipment, net   10,880     4,904  
    Bank-owned life insurance   22,155     11,706  
    Other assets   37,608     12,486  
    TOTAL ASSETS   $ 1,409,229     $ 809,947  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
                 
    Deposit accounts   $ 1,156,328     $ 693,126  
    Other short-term borrowings   28,308     8,743  
    Federal Home Loan Bank advances   100,000     47,000  
    Accrued interest payable and other liabilities   13,957     8,111  
    TOTAL LIABILITIES   1,298,593     756,980  
                 
                 
    Common stock (7,801,011 shares of $1.00 par value issued)   7,801     398  
    Additional paid-in capital   56,387     36,715  
    Retained earnings   57,356     55,342  
    Treasury Stock, at cost – 0 shares and 1,777,824 shares at December 31, 2024 and December 31, 2023, respectively.       (30,330 )
    Accumulated other comprehensive loss   (10,908 )   (9,158 )
    TOTAL STOCKHOLDERS’ EQUITY   110,636     52,967  
                 
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,409,229     $ 809,947  
                 
    (1) Includes available-for-sale and held-to-maturity classifications.
    Note: The December 31, 2023 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.
    MAIN STREET FINANCIAL SERVICES CORP.
    Condensed Consolidated Statements of Income
    (Dollars in thousands, except share data – unaudited)
                     
        Three Months Ended   Twelve Months Ended
        December 31,   December 31,
          2024       2023       2024       2023  
                     
    Interest income   $ 19,138     $ 9,545     $ 60,334     $ 35,095  
    Interest expense     8,531       4,330       27,665       12,920  
    Net interest income     10,607       5,215       32,669       22,175  
    Provision for credit losses     79       4       4,782       530  
    Net interest income after provision for credit losses     10,528       5,211       27,887       21,645  
    Non-interest income     1,165       1,017       4,158       3,017  
    Non-interest expense                
    Salaries and employee benefits     3,823       1,782       12,511       7,731  
    Net occupancy and equipment expense     1,430       625       4,399       2,431  
    Federal deposit insurance premiums     197       157       637       531  
    Franchise taxes     107       81       464       380  
    Advertising and marketing     237       44       645       223  
    Legal     143       15       651       45  
    Professional fees     260       74       1,924       239  
    ATM network     84       123       557       443  
    Auditing and accounting     130       60       516       240  
    Other     1,539       787       4,165       2,561  
    Total non-interest expense     7,950       3,748       26,469       14,824  
    Income before federal income taxes     3,743       2,480       5,576       9,838  
    Provision for federal income taxes     558       443       873       2,005  
    Net income   $ 3,185     $ 2,037     $ 4,703     $ 7,833  
                     
    Earnings per share                
    Basic   $ 0.41     $ 0.46     $ 0.76     $ 3.56  
    Diluted   $ 0.41     $ 0.46     $ 0.76     $ 3.54  
    MAIN STREET FINANCIAL SERVICES CORP.
    Selected Condensed Consolidated Financial Data
    (Dollars in thousands, except share data – unaudited)
                     
        December   September   June   March
          2024       2024       2024       2024  
                     
    Interest and dividend income   $ 19,138     $ 18,930     $ 12,572     $ 9,694  
    Interest expense     8,531       8,308       6,185       4,641  
    Net interest income     10,607       10,622       6,387       5,053  
    Provision for credit losses     79       109       4,720       (126 )
    Net interest income after provision for credit losses     10,528       10,513       1,666       5,179  
    Non-interest income     1,165       1,600       716       678  
    Non-interest expense     7,950       7,863       6,723       3,934  
    Income before federal income taxes     3,743       4,251       (4,341 )     1,923  
    Provision for federal income taxes     558       804       (873 )     384  
    Net income   $ 3,185     $ 3,446     $ (3,468 )   $ 1,539  
                     
    Earnings per share – basic   $ 0.41     $ 0.44     $ (0.68 )   $ 0.40  
    Earnings per share – diluted   $ 0.41     $ 0.44     $ (0.67 )   $ 0.40  
    Dividends per share   $ 0.14     $ 0.14     $ 0.14     $ 0.14  
    Return on average assets     0.90 %     1.00 %     -1.38 %     0.76 %
    Return on average equity     11.69 %     12.58 %     -17.16 %     11.63 %
    Shares outstanding at quarter end     7,801,011       7,801,011       7,787,055       3,840,575  
    Book value per share   $ 14.18     $ 14.27     $ 13.60     $ 13.81  
    Tangible equity per share   $ 12.13     $ 12.15     $ 11.49     $ 13.36  
                     
                     
        December   September   June   March
          2023       2023       2023       2023  
                     
    Interest and dividend income   $ 9,545     $ 9,078     $ 8,571     $ 7,901  
    Interest expense     4,330       3,673       2,867       2,050  
    Net interest income     5,215       5,405       5,704       5,851  
    Provision for credit losses     4       138       170       218  
    Net interest income after provision for credit losses     5,211       5,267       5,534       5,633  
    Non-interest income     1,017       691       706       603  
    Non-interest expense     3,748       3,733       3,949       3,394  
    Income before federal income taxes     2,480       2,225       2,291       2,842  
    Provision for federal income taxes     443       452       547       563  
    Net income   $ 2,037     $ 1,773     $ 1,744     $ 2,279  
                     
    Earnings per share – basic   $ 0.53     $ 0.46     $ 0.46     $ 0.60  
    Earnings per share – diluted   $ 0.53     $ 0.46     $ 0.45     $ 0.59  
    Dividends per share   $ 0.14     $ 0.14     $ 0.14     $ 0.14  
    Return on average assets     1.02 %     0.91 %     0.92 %     1.23 %
    Return on average equity     16.90 %     14.41 %     14.36 %     19.58 %
    Shares outstanding at quarter end     3,839,702       3,837,609       3,837,085       3,831,939  
    Book value per share   $ 13.80     $ 12.40     $ 12.64     $ 12.51  
    Tangible equity per share   $ 13.35     $ 11.95     $ 12.20     $ 12.06  
    MAIN STREET FINANCIAL SERVICES CORP.
    Non-GAAP reconciliation
    (Dollars in thousands, except per share data – unaudited)
         
      For three months ended   For the twelve months ended
      December,   December,
          2024       2023       2024       2023  
                     
    Net Income as reported – GAAP   $ 3,185     $ 2,037     $ 4,703     $ 7,833  
    Effect of merger related expenses (net of tax benefit)     26       353       5,769       950  
    Net Income non-GAAP   $ 3,211     $ 2,390     $ 10,472     $ 8,783  
                     
    Earnings per share – GAAP   $ 0.41     $ 0.93     $ 0.76     $ 3.56  
    Effect of merger related expenses     0.00       0.16       0.94       0.43  
    Earnings per share non-GAAP   $ 0.41     $ 1.09     $ 1.70     $ 3.99  
                     
    Return on average assets – GAAP     0.90 %     1.02 %     0.41 %     1.02 %
    Effect of merger related expenses     0.01 %     0.18 %     0.50 %     0.12 %
    Return on average assets non-GAAP     0.91 %     1.20 %     0.91 %     1.14 %
                     
    Return on average equity – GAAP     11.69 %     16.90 %     5.58 %     16.27 %
    Effect of merger related expenses     0.09 %     2.93 %     6.84 %     1.97 %
    Return on average equity non-GAAP     11.78 %     19.83 %     12.42 %     18.24 %
                     
    Efficiency Ratio – GAAP     67.54 %     60.14 %     71.87 %     58.42 %
    Effect of merger related expenses     -0.22 %     -5.66 %     -6.73 %     -3.77 %
    Efficiency Ratio non-GAAP     67.32 %     54.48 %     65.14 %     55.07 %

    The MIL Network

  • MIL-OSI: Tenable Plans to Acquire Vulcan Cyber, Accelerate Leadership in Exposure Management

    Source: GlobeNewswire (MIL-OSI)

    COLUMBIA, Md., Jan. 29, 2025 (GLOBE NEWSWIRE) — Tenable Holdings, Inc., (“Tenable”) (Nasdaq: TENB) the exposure management company, today announced that it has signed a definitive agreement to acquire Vulcan Cyber Ltd. (“Vulcan Cyber”), a leading innovator in exposure management. Vulcan Cyber’s capabilities will augment Tenable’s industry-leading Exposure Management platform, enhancing customers’ ability to consolidate exposures across their security stack, prioritize risks and streamline remediation efforts across the entire attack surface.

    Under the terms of the agreement, Tenable will acquire Vulcan Cyber for approximately $147 million in cash and $3 million of restricted stock units (RSUs) that vest over a future period. The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions.

    “CISOs are overwhelmed with scattered security products, siloed tools and disjointed teams which makes protecting their organizations from exposure a massive undertaking. As the pioneer behind Exposure Management, we are driven to solve this central challenge of modern security — a fragmented approach to identifying and combating cyber risk,” said Steve Vintz, Co-CEO and CFO, Tenable. “That is what this acquisition is all about. With Vulcan, we’re accelerating our Tenable One vision to radically unify security visibility, insight and action across the attack surface – from the data center to the cloud – to rapidly expose and close the gaps that put businesses at risk.”

    Tenable plans to expand the Tenable One Exposure Management Platform with Vulcan Cyber’s robust capabilities, including enhanced visibility, extended third-party data flows, superior risk prioritization, and optimized remediation. By consolidating and aggregating vast amounts of data into the most comprehensive Exposure Management platform, Tenable is empowering organizations to confidently reduce risk across their entire environment.

    “These capabilities aren’t just technical enhancements – they represent a fundamental shift in how organizations will manage cyber risks holistically into the future. For example, while having a cloud security platform is critical on its own, its power is exponentially amplified when treated as part of a comprehensive exposure management approach,” said Mark Thurmond, Co-CEO and COO, Tenable. “By uniting disparate tools and data under one roof, we’re providing security teams with a full-spectrum view of their attack surface, enabling them to prioritize what matters most and act decisively to address vulnerabilities.”

    A Unified Vision for Exposure Management

    With the addition of Vulcan Cyber, Tenable One customers will gain:

    • Expanded Third-Party Ecosystem Data: By integrating with more than 100 security products across vulnerability assessment, endpoint security, cloud security, application security, and threat intelligence, Tenable will ingest, normalize, and unify data across the security stack. This streamlined approach centralizes critical data and empowers security teams to operate more efficiently and proactively across the entire attack surface.
    • AI-Powered Risk Prioritization: Siloed security products create blind spots where attackers thrive, leaving critical gaps across the attack surface. Enhanced risk prioritization closes these gaps by integrating enriched threat intelligence and context, helping organizations focus on the most critical vulnerabilities while optimizing the use of their security tools and technology.
    • Automated Remediation Workflows: Optimized remediation with automated campaigns, advanced tagging and ticketing ensure that security issues, along with corrective guidance, get into the hands of the right security team members to automatically fix exposures quickly, wherever they might exist in their environment.
    • Advanced AI capabilities: Leveraging a single unified risk data set, Tenable is laying the foundation for advanced exposure AI capabilities that will revolutionize how customers manage and mitigate risk across the security stack.

    “We’re thrilled to join forces with Tenable. Integrating Vulcan Cyber’s capabilities into the Tenable One platform will uniquely address all exposure management use cases across the entire attack surface,” said Yaniv Bar-Dayan, Co-Founder and CEO, Vulcan Cyber. “For the first time at scale, security teams will be able to consolidate exposure findings from multiple sources into a single, actionable interface. We are excited to start working with Tenable and their customers to remediate exposure risk.”

    About Vulcan Cyber
    Vulcan Cyber is a pioneer in cyber risk management. Its flagship ExposureOS platform helps businesses reduce vulnerabilities and asset risk through measurable and efficient attack surface security. Investors include YL Ventures, TenEleven Ventures, Dawn Capital, Maor Investments and Wipro Ventures. Learn more at https://vulcan.io.

    About Tenable
    Tenable® is the exposure management company, exposing and closing the cybersecurity gaps that erode business value, reputation and trust. The company’s AI-powered exposure management platform radically unifies security visibility, insight and action across the attack surface, equipping modern organizations to protect against attacks from IT infrastructure to cloud environments to critical infrastructure and everywhere in between. By protecting enterprises from security exposure, Tenable reduces business risk for approximately 44,000 customers around the globe. Learn more at tenable.com.

    Forward Looking Statements
    This press release contains forward-looking information related to Tenable, and its potential acquisition of Vulcan Cyber Ltd. that involves substantial risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements. You can generally identify forward-looking statements by the use of forward-looking terminology such as the words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” or “will,” or the negative thereof or other variations thereon or comparable terminology. The forward-looking statements in this press release are based on Tenable’s current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties, many of which are beyond Tenable’s control. Forward-looking statements in this communication include, among other things, statements about the potential benefits of the acquisition and product developments and other possible or assumed business strategies, potential growth opportunities, new products, potential market opportunities, and the anticipated timing of the closing of the acquisition. Risks and uncertainties include, among other things, our ability to successfully integrate Vulcan Cyber’s operations; our ability to implement our plans, expectations with respect to Vulcan Cyber’s business; our ability to realize the anticipated benefits of the acquisition, including the possibility that the expected benefits from the acquisition will not be realized or will not be realized within the expected time period; disruption from the acquisition making it more difficult to maintain business and operational relationships; the inability to retain key employees; the negative effects of the consummation of the acquisition on the market price of our common stock or on our operating results; unknown liabilities; attracting new customers and maintaining and expanding our existing customer base; our ability to scale and update our platform to respond to customers’ needs and rapid technological change, increased competition on our market and our ability to compete effectively, and expansion of our operations and increased adoption of our platform internationally.

    Additional risks and uncertainties that could affect our financial results are included in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and other filings that we make from time to time with the Securities and Exchange Commission (SEC) which are available on the SEC’s website at www.sec.gov. In addition, any forward-looking statements contained in this communication are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

    Contact information

    Investor Relations
    investors@tenable.com

    Media Relations
    tenablepr@tenable.com

    The MIL Network

  • MIL-OSI: LPL Financial Welcomes Salient Wealth Planning Group

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Jan. 29, 2025 (GLOBE NEWSWIRE) — LPL Financial LLC announced today that financial advisors John P. Schlatter, CFP®, Robert Rojano, Alec Hoag, CFP®, and Michael Madden, CFA®, have joined LPL Financial’s broker-dealer, RIA and custodial platforms. They reported serving approximately $1 billion in advisory, brokerage and retirement plan assets* and join LPL from Osaic.

    Based in Manhattan Beach, Calif., Schlatter founded Salient Wealth Planning Group to provide clients with customized investment strategies, financial planning and wealth preservation services emphasizing tax efficiency and wealth transfer through multiple generations. The advisors take an interdisciplinary approach to help ensure all aspects of each client’s financial situation are coordinated and reviewed.

    “We take a holistic process to build on the foundations that clients have already laid, and we believe good planning helps the right choices reveal themselves,” Schlatter said, noting they primarily work with high-net-worth clients. “Our services are rooted in developing deep personal relationships to help families navigate the challenges and opportunities of managing generational wealth.”

    The Salient team selected LPL for its advanced capabilities and commitment to providing exceptional customer service experiences.

    “The foundation of our business is built on value-added consulting and meticulous planning,” Schlatter said. “To perpetuate this legacy, we require a stable partner to meet this standard through superior customer service and technology. With LPL, we have a dedicated service team and access to a wide range of innovative capabilities, strategic business solutions and research.”

    Schlatter said he appreciates LPL’s significant technology investment, including approximately $500 million in 2024 for innovation and infrastructure enhancements. He said, “As a Fortune 500 company, LPL is a leading wealth management firm that puts our business and clients in a better position for a more successful future. Most of our clients have been with us for more than 20 years, and we are excited to continue enhancing their experiences over the next 20 years.”

    Scott Posner, LPL Executive Vice President, Business Development, said, “We welcome John, Robert, Alec and Michael to the LPL community. We look forward to supporting their vision by providing elevated services and integrated technology to help them remain competitive in the evolving wealth management landscape. LPL’s sophisticated wealth management platform and robust business tools are designed with advisors in mind, to help them run thriving practices and be successful in serving the needs of their clients.”

    Related

    Advisors, learn how LPL Financial can help take your business to the next level.

    About LPL Financial

    LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace, LPL supports more than 28,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.8 trillion in brokerage and advisory assets on behalf of 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

    Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker dealer, member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States. Salient Wealth Planning Group and LPL are separate entities.

    Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

    We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

    *Value approximated based on asset and holding details provided to LPL from end of year, 2024.

    Media Contact: 
    Media.relations@LPLFinancial.com 
    (704) 996-1840

    Tracking #685921

    The MIL Network

  • MIL-OSI: Wix to Announce Fourth Quarter and Full Year 2024 Results on February 19, 2025

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK Wix.com Ltd. (Nasdaq: WIX), today announced that it will report its results for the fourth quarter ended December 31, 2024 before the market opens on Wednesday, February 19, 2025. Management will host a conference call and webcast that morning at 8:30 a.m. ET to answer questions about the Company’s financial results. Prior to the conference call and webcast, Wix will issue a press release reporting these results along with a shareholder update and additional materials at https://investors.wix.com/

    About Wix.com Ltd.

    Wix is the leading SaaS website builder platform globally to create, manage and grow a digital presence1. What began as a website builder in 2006 is now a complete platform providing users with enterprise-grade performance, security and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, Wix enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, anyone can build a powerful digital presence to fulfill their dreams on Wix.

    For more about Wix, please visit our Press Room

    Investor Relations:
    ir@wix.com 

    Media Relations:
    pr@wix.com

    1Based on number of active live sites as reported by competitors’ figures, independent third-party data and internal data as of H1 2024.

    The MIL Network

  • MIL-OSI: PLUMAS BANCORP TO ACQUIRE CORNERSTONE COMMUNITY BANCORP

    Source: GlobeNewswire (MIL-OSI)

    RENO, Nev., Jan. 29, 2025 (GLOBE NEWSWIRE) — Plumas Bancorp (“Plumas”) (Nasdaq: PLBC) and Cornerstone Community Bancorp (“Cornerstone”) (OTCPK: CRSB) jointly announce the signing of a definitive merger agreement (the “Agreement”) whereby Plumas will acquire Cornerstone in a stock and cash transaction valued at approximately $64.6 million (the “Transaction”) based on the closing price of $47.76 for Plumas shares on January 28, 2025. On a pro forma consolidated basis, the combined company would have approximately $2.3 billion in assets, $2.0 billion in deposits, $1.5 billion in loans, and operate 19 branches throughout Northern California and Western Nevada.

    Cornerstone, headquartered in Red Bluff, California, is the parent company of Cornerstone Community Bank, a 19-year-old bank with approximately $658 million in assets as of December 31, 2024. Cornerstone Community Bank operates through four branches throughout the Northern California counties of Shasta and Tehama.

    “We are thrilled to announce our merger agreement with Cornerstone,” said Andrew J. Ryback, President and Chief Executive Officer, Plumas Bancorp. “Our companies share a connection to the people and businesses who have built their livelihoods throughout Northern California. Bringing together the team of local experts at Cornerstone Community Bank with Plumas Bank’s technology and small business expertise offers even greater services for the markets we serve. We look forward to providing long-term value to our combined shareholders, clients, team members, and the communities we serve.”

    “We are excited about the opportunity to join forces with Plumas, bringing our banks together to carry on our focus of providing our customers, employees and all of our stakeholders with superior products, services and support,” said Matthew B. Moseley, President and Chief Executive Officer of Cornerstone, who will continue with Plumas following the acquisition. “Gaining access to Plumas’ network of offices and extensive product lines allows us to expand our footprint and offerings beyond the Shasta and Tehama communities we have served for the past 19 years. There are many similarities in our institutions and the small communities we serve. This combination will afford the two organizations the opportunity to utilize our combined years of experience to continue to deliver the outstanding experience our customers have come to expect.”

    Under the terms of the Agreement, each issued and outstanding share of common stock of Cornerstone will be converted into the right to receive 0.6608 shares of common stock of Plumas and $9.75 in cash (subject to adjustment under certain circumstances). Based on the closing price of $47.76 for Plumas shares on January 28, 2025, the Transaction would result in an aggregate consideration of $64.6 million (inclusive of the value to Cornerstone stock option holders) and value of $41.31 per Cornerstone share.

    Giving effect to the merger, Cornerstone shareholders will hold, in the aggregate, approximately 14% of Plumas’ outstanding common stock based on December 31, 2024 data. One current member of the Cornerstone board of directors will join the Plumas board of directors upon the merger.

    Plumas expects the acquisition to be approximately 9% accretive to earnings per share in 2025 and 23% accretive in 2026. Plumas expects dilution to tangible book value per share of approximately 13% at close with a tangible book value earn-back period of less than three years. The boards of directors of Plumas and Cornerstone have approved the proposed merger, which is expected to occur in the second half of 2025 and remains subject to customary closing conditions, including obtaining approval by Cornerstone’s shareholders and bank regulatory authorities.

    Plumas was advised in the Transaction by Raymond James & Associates, Inc. as financial advisor and Sheppard, Mullin, Richter & Hampton LLP as legal counsel. Cornerstone was advised by Performance Trust Capital Partners as financial advisor and Gary Steven Findley & Associates as legal counsel.

    About Plumas Bancorp

    Plumas Bancorp is headquartered in Reno, Nevada. Plumas Bancorp’s principal subsidiary is Plumas Bank, which was founded in 1980. Plumas Bank is a full-service community bank headquartered in Quincy, California. The bank operates fifteen branches: thirteen located in the California counties of Butte, Lassen, Modoc, Nevada, Placer, Plumas, Shasta and Sutter and two branches located in Nevada in the counties of Carson City and Washoe. The bank also operates two loan production offices located in Auburn, California and Klamath Falls, Oregon. Plumas Bank offers a wide range of financial and investment services to consumers and businesses and has received nationwide Preferred Lender status with the United States Small Business Administration. For more information on Plumas Bancorp and Plumas Bank, please visit our website at www.plumasbank.com.

    About Cornerstone Community Bancorp

    Cornerstone Community Bancorp is a bank holding company headquartered in Red Bluff, California and is the parent company for Cornerstone Community Bank, a California state-chartered bank with four locations across the Northern California counties of Shasta and Tehama. Founded in 2006, Cornerstone Community Bank has a proven track record of contributing to the success of the local economies they serve, contributing to the success of the people who live, work, and play in Shasta and Tehama.

    Additional Information About the Proposed Transaction and Where to Find It

    This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

    Investors and security holders are urged to carefully review and consider each of Plumas’s public filings with the SEC, including but not limited to its Annual Reports on Form 10-K, its Proxy Statements, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q. The documents filed by Plumas with the SEC may be obtained free of charge at Plumas’s website at www.plumasbank.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from Plumas by requesting them in writing to Plumas Bancorp, 5050 Meadowood Mall Circle, Reno, Nevada 89502; Attention: Shareholder Relations, or by telephone at (775) 786-0907.

    Plumas intends to file a registration statement on Form S-4 with the SEC which will include a proxy statement /prospectus which will be distributed to the shareholders of Cornerstone in connection with their vote on the Transaction. Before making any voting or investment decision, investors and security holders of Cornerstone are urged to carefully read the entire proxy statement/prospectus, when it becomes available, as well as any amendments or supplements, because it will contain important information about the proposed Transaction. Investors and security holders will be able to obtain the proxy statement/prospectus free of charge from the SEC’s website or from Plumas by writing to the address provided in the preceding paragraph.

    The directors, executive officers and certain other members of management and employees at Cornerstone and Plumas may be deemed participants in the solicitation of proxies in favor of the Transaction. Information about the directors and executive officers of Cornerstone will be included in the proxy statement/prospectus regarding the proposed Transaction. Information regarding Plumas’s directors and executive officers is available in Plumas’s definitive proxy statement for its 2024 annual meeting of shareholders filed with the SEC on April 4, 2024, which is available free of charge from Plumas upon request as described above.

    Cautionary Note Regarding Forward-Looking Statements

    This release contains forward-looking statements regarding Plumas Bancorp (“Plumas”), Cornerstone Community Bancorp (“Cornerstone”) and the combined company and the proposed merger that are forward-looking statements subject to the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to plans, expectations, projections and statements about the benefits of the proposed merger, the timing of completion of the merger, and other statements that are not historical facts. Forward-looking statements involve risks and uncertainties that are difficult to predict. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the occurrence of any event, change or other circumstances that could give rise to the right of Plumas or Cornerstone to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Plumas or Cornerstone; delays in completing the merger; the failure to obtain necessary regulatory approvals (and the risk that such approvals impose conditions that could adversely affect the combined company or the expected benefits of the merger); the failure of Cornerstone to obtain shareholder approval or Plumas or Cornerstone to satisfy any of the other conditions to the merger on a timely basis or at all; the ability to complete the merger and integration of Plumas and Cornerstone successfully; costs being greater than anticipated; cost savings being less than anticipated; changes in economic conditions; the risk that the merger disrupts the business of the Plumas, Cornerstone or both; difficulties in retaining senior management, employees or customers; and other factors that may affect the future results of Plumas or Cornerstone. Further information regarding Plumas’s risk factors is contained in Plumas’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2023. Forward-looking statement made in this release speak only as of the date of this release. Neither Plumas nor Cornerstone undertake any obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

    Investor Relations Contact:

    Jamie Huynh
    AVP, Assistant Corporate Secretary and Investor Relations Coordinator
    Plumas Bank
    Phone: 530.283.7305 ext. 8908
    Email: jamie.huynh@plumasbank.com

    The MIL Network

  • MIL-OSI: Fusion Fuel Announces Leadership Transition

    Source: GlobeNewswire (MIL-OSI)

    DUBLIN, Jan. 29, 2025 (GLOBE NEWSWIRE) — via IBN — Fusion Fuel Green PLC (Nasdaq: HTOO) (“Fusion Fuel” or the “Company”), a leading provider of comprehensive energy engineering, advisory and supply solutions, today announced the resignation of Gavin Jones as Chief Financial Officer and the appointment of Frederico Figueira de Chaves as Interim Chief Financial Officer, effective January 24, 2025. Mr. Jones has opted to pursue a new opportunity; however, he will continue to serve as Company Secretary and has pledged his support to ensure a seamless transition.

    The Company’s Board of Directors is pleased to announce the appointment of Frederico Figueira de Chaves as interim Chief Financial Officer. Mr. Figueira de Chaves previously held the position of Chief Financial Officer at Fusion Fuel from 2020 to 2023, where he was instrumental in shaping the Company’s financial strategy and operational framework. Mr. Figueira de Chaves is currently serving as the Company’s Chief Strategy Officer and Head of Hydrogen Solutions and will assume this additional role while maintaining his existing responsibilities, leveraging his extensive financial and strategic expertise, while supported by an experienced in-house finance team.

    “On behalf of the Board of Directors, I would like to extend our heartfelt appreciation to Gavin for his outstanding service to Fusion Fuel since joining the Company in 2021,” stated Jeffrey Schwarz, Chairman of the Board of Fusion Fuel. “His steady leadership has been pivotal in establishing a strong foundation for the Company’s growth. We are grateful for his commitment to excellence and professionalism, and we wish him every success as he embarks on this exciting new chapter in his career.”

    Reflecting on his tenure, Mr. Jones commented: “This is a bittersweet moment for me. Over the past four years, I have had the privilege of collaborating with an exceptional team to navigate the various challenges and opportunities that have shaped Fusion Fuel’s journey. These years have been immensely rewarding, and I will carry these experiences with me throughout my career. I extend my gratitude to the Board of Directors, my colleagues, and the entire finance team for their trust and support. I firmly believe that Fusion Fuel is well-positioned for continued success, and I look forward to its continued progress.”

    The appointment of Mr. Figueira de Chaves as Interim CFO comes at a crucial juncture for Fusion Fuel as the Company advances its strategic priorities. His profound understanding of the hydrogen ecosystem, coupled with a proven track record in financial stewardship and strategic planning, positions him uniquely to guide the Company through its next phase of growth. With a sharpened focus on expanding its hydrogen solutions and gas services businesses, Fusion Fuel is strategically poised to reinforce its status as a leader in integrated energy solutions.

    About Fusion Fuel Green plc

    Fusion Fuel Green PLC (NASDAQ: HTOO) is an emerging leader in the energy services sector, offering a comprehensive suite of energy engineering and advisory solutions through its Al Shola Gas and BrightHy subsidiaries. Al Shola Gas provides full-service industrial gas solutions, including the design, supply, and maintenance of liquefied petroleum gas (LPG) systems, as well as the transport and distribution of LPG to a broad range of customers across commercial, industrial, and residential sectors. BrightHy, the Company’s newly launched hydrogen solutions platform, focuses on delivering innovative engineering and advisory services that enable decarbonization across hard-to-abate industries.

    Learn more about Fusion Fuel by visiting our website at https://www.fusion-fuel.eu and following us on LinkedIn.

    Forward-Looking Statements

    This press release includes “forward-looking statements.” Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target”, “may”, “intend”, “predict”, “should”, “would”, “predict”, “potential”, “seem”, “future”, “outlook” or other similar expressions (or negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Fusion Fuel has based these forward-looking statements largely on its current expectations, including but not limited the ability of the investment reported on to be consummated as anticipated. Such forward-looking statements are subject to risks and uncertainties (including those set forth in Fusion Fuel’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission) which could cause actual results to differ from the forward-looking statements.

    Investor Relations Contact

    ir@fusion-fuel.eu

    Wire Service Contact:
    IBN
    Austin, Texas
    www.InvestorBrandNetwork.com
    512.354.7000 Office
    Editor@InvestorBrandNetwork.com

    The MIL Network

  • MIL-OSI: RightNOW 2025 to help accounting firms thrive with keynotes and deep-dive sessions on cybersecurity, AI integration and overcoming staffing challenges

    Source: GlobeNewswire (MIL-OSI)

    NASHUA, N.H., Jan. 29, 2025 (GLOBE NEWSWIRE) — Accounting firm leaders, staff and SMB finance professionals will gather en masse in Nashville, TN for RightNOW 2025. The annual event, hosted by Rightworks, the only intelligent cloud services provider purpose-built for accounting firms and professionals, will bring together some of the brightest minds in accounting on May 19, 2025. The two-day conference will feature top-tier influencer keynotes, engaging breakout sessions on security, generative AI integration and building a modern firm, and offer a networking forum for attendees to tackle the profession’s persisting challenges head-on.

    “The accounting profession is at a critical turning point where modernization is not optional. Firms need to uplevel their businesses with the technical innovations and strategies that enhance client service and drive greater efficiency in their everyday business,” said Joel Hughes, CEO of Rightworks. “We are excited to gather professionals at all stages of growth so they can walk away with a strategic action plan that will make an immediate impact on their business in the second half of the year and beyond.”

    Renowned entrepreneurs and CEOs Gary Vaynerchuk and Josh Linkner to deliver opening keynotes

    RightNOW 2025 will kick off each day with keynotes from major industry trailblazers exploring harnessing the power of generative AI, creating powerful brands and strengthening the workplace. Day one features a fireside chat with Gary Vaynerchuk, CEO, author, serial entrepreneur and chairman of VaynerX. Day two begins with Josh Linkner, serial entrepreneur, New York Times bestselling author and venture capital investor.

    Following the keynotes is an exceptional lineup of breakout sessions, including:

    • The future of the accounting profession: Navigating emerging challenges and opportunities for firms
    • Buying & selling accounting firms: Insider tips from a broker, banker and lawyer
    • The nuts and bolts of AI: A workshop for practical application
    • Think like a hacker: How to protect yourself, your family and your firm from being breached
    • Late night lounge: Evening on AI
    • Cultivating credibility: The path to becoming a trusted advisor
    • Key tactics for successfully leading through change
    • Roundtable: Top trends and tactics you need to know about
    • Unpacking NPAG’s accounting talent strategy report: A plan to overcome the talent shortage
    • Why culture matters and how to build one that empowers
    • Great job! Building a great place to work
    • Purposely invest in yourself through lifelong learning
    • Getting strategic with AI
    • Staying compliant and secure in the cloud
    • Innovation station

    Early Bird registration ends soon

    RightNOW 2025 will take place May 19-21, 2025, at Gaylord Opryland Resort & Convention Center in Nashville, Tennessee. Early access pricing is available through January 31. Attendees are eligible to receive up to 14 Continuing Professional Education (CPE) credits. Visit the RightNOW page for more information.

    Connect with Rightworks
    Visit our newsroom; read our blog; and follow us on LinkedIn, Facebook and Instagram.

    About Rightworks
    Rightworks enables accounting firms and businesses to significantly simplify operations and expand their value to clients via our award-winning intelligent cloud and learning resources. This is possible with Rightworks OneSpace, the only secure cloud environment purpose-built for the accounting and tax profession, and Rightworks Academy, the premier community for firm optimization, growth and professional development. The Academy offers access to thought leadership, events, peer communities and extensive learning resources. Founded in 2002, we’ve grown to serve over 10,000 accounting firms in the US—from single practitioners to Top 10 firms. For more information, please visit rightworks.com or follow us on LinkedIn, Facebook and Instagram.

    Image asset:

    A photo accompanying this announcement is available at

    https://www.globenewswire.com/NewsRoom/AttachmentNg/1a071f7e-aef9-4b27-857a-ba2ecfcbf3a6

    The MIL Network

  • MIL-OSI: Signing Day Sports Executes Stock Purchase Agreement to Acquire Majority of Capital Stock of Dear Cashmere Group Holding Company d/b/a Swifty Global

    Source: GlobeNewswire (MIL-OSI)

    SCOTTSDALE, Arizona, Jan. 29, 2025 (GLOBE NEWSWIRE) — Signing Day Sports, Inc. (“Signing Day Sports” or the “Company”) (NYSE American: SGN), the developer of the Signing Day Sports app and platform to aid high school athletes in the recruitment process, today announced the signing of a Stock Purchase Agreement (SPA) to acquire 99.13% of the issued and outstanding capital stock of Dear Cashmere Group Holding Company (OTC: DRCR), doing business as Swifty Global.  

    Swifty Global is a global online sports and casino technologies company with a track record of revenue growth and profitability.

    Swifty Global’s strengths and growth strategies are expected to contribute significantly to the Company’s growth potential, including:

    • Strong Financial Performance: Swifty Global achieved revenues of over $128 million and a net profit of approximately $2.44 million for the fiscal year ended December 31, 2023, despite significant investments of nearly $3.1 million in software development and licensing.
    • Global Expansion Targeting High Growth Markets: Swifty Global continues to expand its international gambling operations with significant growth opportunities on the horizon. This strategy aligns with the shared vision of both companies to target high-growth markets as a core component of our long-term strategy.
    • Rapid Development of New Revenue Generating Technologies: Swifty Global plans to offer data feed services for the online sports gambling industry in the near future. These services are currently expensive and limited in choice, as many sports, such as boxing, have until recently had limited or no live data feed available to allow real-time betting. The Signing Day Sports team has significant experience working with critical sports datapoints and creating sports measurement technologies, which could assist Swifty Global in developing this revenue stream.

    Daniel Nelson, CEO of Signing Day Sports, commented, “We are thrilled to announce the signing of the SPA with Swifty Global, which reflects the shared vision and collaboration between our organizations. I extend my sincere appreciation to James Gibbons and Nick Link for their exceptional efforts throughout this process. We see the SPA as a significant step toward accelerated expansion, enabling us to leverage Swifty Global’s cutting-edge SaaS technology to enhance operational efficiency, reduce costs by over 50%, and accelerate product development. Together, we expect to increase user growth, retention, and new revenue opportunities while expanding into emerging markets across Europe, Africa, and the Middle East. Together, we are confident in our ability to build a stronger company, committed to innovation, positioned for global expansion, and powered by cutting-edge technology—delivering exceptional value to our shareholders and clients.”

    “Following the closing of the SPA, Swifty Global will operate as a subsidiary of Signing Day Sports, with its financial results fully integrated into our operations. Signing Day Sports’ pre-closing business will likewise operate within a subsidiary of Signing Day Sports.”

    James Gibbons, CEO of Swifty Global commented, “The Swifty Global team has worked extremely hard, demonstrating exceptional diligence and discipline in building an outstanding business with a solid foundation. We are excited about the future and look forward to working together to achieve great things.”

    Terms of the Transaction

    At the closing of the acquisition under the SPA, Signing Day Sports will acquire from James Gibbons and Nicolas Link (the “Sellers”) the common stock and preferred stock of Swifty Global held by them constituting 99.13% of the issued and outstanding capital stock of Swifty Global. Additional sellers holding Swifty Global common stock or preferred stock may enter into substantially identical agreements with Signing Day Sports and also sell their Swifty Global capital stock to Signing Day Sports, which would increase the aggregate percentage of Swifty Global acquired by Signing Day Sports.  

    At the closing, the Sellers will receive a number of shares of Signing Day Sports common stock that is equal to 19.99% of the issued and outstanding common stock of Signing Day Sports as of the date of the SPA. The balance of the shares that Signing Day Sports must issue to the sellers will be in the form of convertible preferred stock that will have no voting or dividend rights until shareholder approval of conversion and the clearance of an initial listing application with The Nasdaq Stock Market LLC (“Nasdaq”). Signing Day Sports legacy shareholders are expected to retain approximately 8.24% of the post-transaction company’s shares, with the remaining approximately 91.76% being issued to the sellers and the other stockholders of DRCR, based on the number of shares of Signing Day Sports common stock outstanding as of the date of the SPA, subject to adjustment as described below.

    At the closing, James Gibbons will become the Chief Executive Officer of Signing Day Sports and remain the Chief Executive Officer of Swifty Global. Signing Day Sports management will remain the management of the Signing Day Sports subsidiary that will be established in connection with the acquisition. One Signing Day Sports executive director will resign, and Mr. Gibbons will be elected to the Signing Day Sports board.

    After the closing, Signing Day Sports will consolidate Swifty Global’s financial statements and operate Swifty Global as a subsidiary. Signing Day Sports’ existing assets will be contributed into a newly formed subsidiary.

    After the closing, Signing Day Sports will hold a shareholder meeting to, among other things, approve the conversion of the preferred stock issued to the Sellers into common stock, and elect a new board of directors of Signing Day Sports. If the stockholders approve the proposals, the Sellers’ Signing Day Sports preferred stock will convert into 19,782,720 shares of Signing Day Sports common stock. In addition, the board will continue to consist of five members, consisting of one board member nominated by Signing Day Sports, two independent directors and one executive director nominated by Swifty Global’s pre-closing board, and one independent director jointly nominated by both Signing Day Sports and Swifty Global jointly.

    Signing Day Sports and Swifty Global will also seek all necessary stockholder, regulatory, and stock exchange consents or approvals, in order for Signing Day Sports to acquire the remaining outstanding equity ownership of Swifty Global not acquired from the Sellers under the SPA or additional stock purchase agreements through a merger of Swifty Global into Signing Day Sports or a wholly-owned subsidiary of Signing Day Sports (the “Merger”). Signing Day Sports will file a registration statement on Form S-4 relating to, among other things, the registration of the offer and sale of the shares of Signing Day Sports common stock to be issued to the stockholders of Swifty Global in the Merger.

    Both Signing Day Sports and Swifty Global will collectively seek to raise at least $2.0 million in financing as soon as possible, with the proceeds split equally. These funds will be used for the operations of each of Signing Day Sports and Swifty Global, and the payment of outstanding liabilities of Signing Day Sports, such that there will be no material liabilities of Signing Day Sports remaining at the time of the conversion of the preferred stock. If, at the effective time of the Merger, Signing Day Sports has any indebtedness for borrowed money or liabilities in excess of $150,000 relating to the period prior to the closing, then Signing Day Sports will issue to the legacy stockholders of Swifty Global, including the Sellers, as soon as practicable following the closing of the Merger, a number of shares of Signing Day Sports common stock equal to the aggregate Signing Day Sports liabilities divided by the Applicable Price Per Share (as defined in the SPA).

    Both Signing Day Sports and Swifty Global will complete due diligence before the closing under the SPA. The closing is subject to the satisfaction or waiver of closing conditions, including, without limitation, conditional approval from Nasdaq of an initial listing application that has been filed with such exchange, and no assurance can be given that the closing will occur, or that post-closing requirements for the acquisition will be met. From and after the closing, Signing Day Sports is expected to commence trading on the Nasdaq.

    The sellers and the officers and directors of Signing Day Sports will be subject to a three-month lock-up period following the closing.

    The SPA contains provisions for termination, representations, warranties, covenants, and mutual indemnification provisions.

    Advisors to the transaction include Maxim Group LLC, which is serving as exclusive financial advisor to Swifty Global. Lucosky Brookman LLP is serving as counsel to Swifty Global. Bevilacqua PLLC is serving as counsel to Signing Day Sports. 

    A copy of the SPA will be filed as an exhibit to a current report on Form 8-K to be filed by Signing Day Sports with the U.S. Securities and Exchange Commission (“SEC”) on or about the date of this press release. All parties desiring details regarding the terms and conditions of the proposed acquisition are urged to review that Form 8-K and the exhibits attached thereto, which will be available at the SEC’s website at www.sec.gov

    Signing Day Sports

    Signing Day Sports’ mission is to help student-athletes achieve their goal of playing college sports. Signing Day Sports’ app allows student-athletes to build their Signing Day Sports’ recruitment profile, which includes information college coaches need to evaluate and verify them through video technology. The Signing Day Sports app includes a platform to upload a comprehensive data set including video-verified measurables (such as height, weight, 40-yard dash, wingspan, and hand size), academic information (such as official transcripts and SAT/ACT scores), and technical skill videos (such as drills and mechanics that exemplify player mechanics, coordination, and development).  For more information about Signing Day Sports, go to https://bit.ly/SigningDaySports.

    Swifty Global

    Swifty Global is a technology company operating out of London, New York and Dubai developing ground-breaking technology solutions in the gambling and betting sector. Swifty Global aims to drive shareholder value through accelerated innovation and enhanced usability of the products it develops. With licenses spanning several jurisdictions, Swifty Global has successfully brought to market a suite of offerings. This includes the company’s proprietary swipe betting sports prediction application, as well as its traditional sportsbook and casino gaming platform. For more information about Swifty Global, go to https://www.otcmarkets.com/stock/DRCR/profile.

    Forward-Looking Statements

    This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, including without limitation, the Company’s ability to complete the acquisition of Swifty Global and integrate its business, the ability of the Company, the Sellers, and Swifty Global to obtain all necessary consents and approvals in connection with the acquisition, including Nasdaq clearance of an initial listing application in connection with the acquisition, obtain stockholder approval of the matters to be voted on at a stockholders’ meeting to approve matters required to be approved in connection with the SPA, the Company’s ability to obtain sufficient funding to maintain operations and develop additional services and offerings, market acceptance of the Company’s current products and services and planned offerings, competition from existing online and retail offerings or new offerings that may emerge, impacts from strategic changes to the Company’s business on its net sales, revenues, income from continuing operations, or other results of operations, the Company’s ability to attract new users and customers, increase the rate of subscription renewals, and slow the rate of user attrition, the Company’s ability to retain or obtain intellectual property rights, the Company’s ability to adequately support future growth, the Company’s ability to comply with user data privacy laws and other current or anticipated legal requirements, and the Company’s ability to attract and retain key personnel to manage its business effectively. These risks, uncertainties and other factors are described more fully in the section titled “Risk Factors” in the Company’s periodic reports which are filed with the SEC. These risks, uncertainties and other factors are, in some cases, beyond our control and could materially affect results. If one or more of these risks, uncertainties or other factors become applicable, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

    Investor Contact:
    Crescendo Communications, LLC
    212-671-1020
    SGN@crescendo-ir.com

    The MIL Network

  • MIL-OSI: American Armed Forces Mutual Aid Association Simplifies Insurance Application Processes Through Sapiens Implementation

    Source: GlobeNewswire (MIL-OSI)

    FT. MYER, Va., Jan. 29, 2025 (GLOBE NEWSWIRE) — The American Armed Forces Mutual Aid Association (AAFMAA), the nation’s longest-standing nonprofit financial solutions provider for the military community, today announced that it has implemented the Sapiens ApplicationPro, IllustrationPro, UnderwritingPro and DataSuite, to simplify its life insurance application, enrollment and underwriting process for active-duty servicemembers, Veterans, and their families. AAFMAA has upgraded its systems with Sapiens solutions to better serve its Members by making the important insurance decision-making process faster and easier for them.

    AAFMAA offers a variety of term and whole life insurance policies designed to meet the unique needs and circumstances of members of the military community. The Sapiens system presents applicants with appropriately tailored options side-by-side and the incorporation of automation dramatically shortens the application review cycle for complex cases, reducing approvals or other decisions from weeks to just a few days.

    “Our Members and their families will see incredibly helpful improvements to our insurance procurement platform, thanks to our partnership with Sapiens,” said Jerry Quinn, AAFMAA Chief Operating Officer. “Making decisions about insurance isn’t just important, it’s also quite complicated; sometimes our Members find themselves unsure of how to even begin the process. With Sapiens’ technology, that complicated process has become much simpler.”

    “We admire AAFMAA’s mission and are thrilled that the implementation of our technology is helping their team provide military servicemembers and their families with their necessary insurance needs,” said Roni Al-Dor, Sapiens President and CEO. “We look forward to hearing more about how our technology is making the process of obtaining insurance easier for their Members.”

    To get started on protecting your family more easily with life insurance or for more information, members of the military community can visit aafmaa.com.

    About AAFMAA

    The American Armed Forces Mutual Aid Association (AAFMAA) is the longest-standing nonprofit financial solutions provider that empowers the military community with affordable financial solutions, including always-affordable life insurance, expert investment management, and customized residential mortgages. Follow the organization on XFacebook and LinkedIn

    AAFMAA Media Contact:
    FischTank PR
    aafmaa@fischtankpr.com

    About Sapiens  
    Sapiens International Corporation (NASDAQ and TASE: SPNS) is a global leader in intelligent insurance software solutions. With Sapiens’ robust platform, customer-driven partnerships, and rich ecosystem, insurers are empowered to future-proof their organizations with operational excellence in a rapidly changing marketplace. We help insurers harness the power of AI and advanced automation to support core solutions for property and casualty, workers’ compensation, and life insurance, including reinsurance, financial & compliance, data & analytics, digital, and decision management. Sapiens boasts a longtime global presence, serving over 600 customers in more than 30 countries with its innovative SaaS offerings. Recognized by industry experts and selected for the Microsoft Top 100 Partner program, Sapiens is committed to partnering with our customers for their entire transformation journey and is continuously innovating to ensure their success.  

    For more information visit https://sapiens.com or follow us on LinkedIn   
      
    Investor and Media Contact:  
    Yaffa Cohen-Ifrah  
    Sapiens Chief Marketing Officer and Head of Investor Relations  
    Mobile: +1 917 533 4782 
    Email: Yaffa.cohen-ifrah@sapiens.com  

    The MIL Network

  • MIL-OSI: Safe Harbor Financial Commences CEO Succession and Strategic Planning Initiative

    Source: GlobeNewswire (MIL-OSI)

    Sundie Seefried to Immediately Become Co-CEO and Retire in 30 Days; Will Remain on Board of Directors Post-Transition

    Business Transformation Expert, Terry Mendez, Appointed Co-CEO; Will Become CEO Upon Retirement of Seefried

    GOLDEN, Colo., Jan. 29, 2025 (GLOBE NEWSWIRE) — SHF Holdings, Inc., d/b/a Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a fintech leader in facilitating financial services and credit facilities to the regulated cannabis industry, announced today that its current CEO, Sundie Seefried, plans to retire in 30 days. Karl A. Racine, chair of the Safe Harbor’s Nominating and Governance Committee, has been overseeing due diligence activities and advising the executive team and the Governance Committee to evaluate both internal and external candidates as part of the process. This strategic approach and review are part of the Company’s long-term growth strategy, ensuring that Safe Harbor continues to maximize shareholder value and executes its strategic vision.

    Sundie Seefried will serve as co-CEO throughout this transition period. The Company signed a three-year executive employment agreement with Terry Mendez to serve as co-CEO and will be appointed CEO upon Seefried’s retirement. Post-transition, Seefried will remain on the Board of Directors.

    During the transition, Mendez will work closely with Safe Harbor’s leadership team and Board of Directors to capture opportunities for innovation and growth, while Seefried will focus on achieving operational continuity. Seefried and Mendez will be the key decision-makers, ensuring that all strategic recommendations are evaluated and presented to the Board, as needed, for approval.

    “We remain committed to thoughtful succession planning and long-term strategic growth, with the goal of capitalizing on optimizing our market position,” said Sundie Seefried, co-CEO of Safe Harbor Financial. “Terry’s experience in business expansion, transformation and strategic advisory will provide a valuable perspective as we explore ways to enhance our operations and maximize shareholder value. I look forward to working closely with him.”

    “At a time when most financial institutions were unwilling to work with the cannabis industry, Safe Harbor emerged as a pioneer, providing essential banking and financial services to the sector for the past decade. We are now looking at the challenges currently facing the industry and determining how we can leverage our people to develop technology that delivers trusted solutions to the marketplace,” said Terry Mendez, co-CEO of Safe Harbor Financial. “I look forward to diving into the business, learning from Sundie and partnering with my fellow operators to deliver value for our shareholders.”

    Terry Mendez brings extensive experience in strategic planning and operational transformation within the information technology and cannabis industries. In his role as founder of Amos Advisory Solutions, Mr. Mendez served as the CEO of both single-state and multi-state cannabis operators successfully leading turnaround efforts. Terry began his career in public accounting with Arthur Andersen and Deloitte & Touche. Previously, he served as the vice president of Finance and global chief accounting officer for Hitachi Vantara, a subsidiary of Hitachi, overseeing 52 countries.

    About Safe Harbor
    Safe Harbor is among the first service providers to offer compliance, monitoring and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. Safe Harbor, through its financial institution clients, implements high standards of accountability, transparency, monitoring, reporting and risk mitigation measures while meeting Bank Secrecy Act obligations in line with FinCEN guidance on cannabis-related businesses. Over the past decade, Safe Harbor has facilitated more than $25 billion in deposit transactions for businesses with operations spanning over 41 states and US territories with regulated cannabis markets. For more information, visit www.shfinancial.org.

    Cautionary Statement Regarding Forward-Looking Statements
    Certain information contained in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical performance; new product and service offerings Safe Harbor may introduce in the future; the impact volatility in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings that may be instituted against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor’s filings with the U.S. Securities and Exchange Commission. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

    Contact Information
    Safe Harbor Investor Relations
    ir@SHFinancial.org

    KCSA Strategic Communications
    Ellen Mellody
    safeharbor@kcsa.com

    The MIL Network

  • MIL-OSI: KraneShares Confirms New Caps of 20% and 40% For KWEB Buffer Strategies KPRO & KBUF, Respectively

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 29, 2025 (GLOBE NEWSWIRE) — Today, Krane Funds Advisors, LLC (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs) announced new Caps, Buffer periods, and name changes for the KPRO and KBUF 100% and 90% Buffer ETFs. KPRO is now the KraneShares 100% KWEB Defined Outcome January 2027 ETF (Ticker: KPRO), formerly Defined Outcome January 2026, and KBUF is now the KraneShares 90% KWEB Defined Outcome January 2027 ETF (Ticker: KBUF), also formerly Defined Outcome January 2026.

    These ETFs are designed to provide investors with the opportunity over a limited period (the “Outcome Period”) to benefit up to a certain extent (the “Cap”) from increases in the total return of the KraneShares CSI China Internet ETF (Ticker: KWEB) with a defined level of protection (the “Buffer”). The current Outcome Period for the Funds is from January 27, 2025 to January 22, 2027.

    The new performance Cap for KPRO over the Outcome Period will be 20.01% and the new Cap for KBUF will be 40.01%. The new Caps stem from a decision earlier this month to extend the Outcome Period for both Funds due to strong China Internet momentum.

    The Funds will retain the same buffers of 100% and 90%, respectively, based on KWEB’s price on January 25, 2025.

    “KWEB has exceeded performance expectations since KPRO and KBUF were launched in February 2024,” said Jonathan Shelon, KraneShares COO. “We believe that resetting the downside protection and increasing the upside potential by extending the outcome period, is a benefit to existing and new investors. We are extremely pleased with the results of these strategies and are excited to introduce these enhancements.”

    KPRO and KBUF have characteristics unlike many other traditional investment products and may not be suitable for all investors. The caps and buffers mentioned above do not reflect the effect of fees and assume the Funds are held from launch to the end of the outcome period (2 years). For more information regarding whether an investment in the Funds is right for you, please read each Fund’s prospectus, including “Investor Suitability Considerations.

    About KraneShares

    KraneShares is a specialist investment manager focused on China, Climate, and Uncorrelated Assets. KraneShares seeks to provide innovative, high-conviction, and first-to-market strategies based on the firm and its partners’ deep investing knowledge. KraneShares identifies and delivers groundbreaking capital market opportunities and believes investors should have cost-effective and transparent tools for attaining exposure to various asset classes. The firm was founded in 2013 and serves institutions and financial professionals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).

    Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ full and summary prospectus, which may be obtained by visiting: www.kraneshares.com/kweb, www.kraneshares.com/kpro and www.kraneshares.com/kbuf. Read the prospectus carefully before investing.

    Risk Disclosures:

    Investing involves risk, including possible loss of principal. There can be no assurance that any of the Funds will achieve their stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.

    This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Certain content represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice.

    A-Shares are issued by companies in mainland China and traded on local exchanges. They are available to domestic and certain foreign investors, including QFIs and those participating in Stock Connect Programs like Shanghai-Hong Kong and Shenzhen-Hong Kong. Foreign investments in A-Shares face various regulations and restrictions, including limits on asset repatriation. A-Shares may experience frequent trading halts and illiquidity, which can lead to volatility in the Funds’ share prices and increased trading halt risks. The Chinese economy is an emerging market, vulnerable to domestic and regional economic and political changes, often showing more volatility than developed markets. Companies face risks from potential government interventions, and the export-driven economy is sensitive to downturns in key trading partners, impacting the Funds. U.S.-China tensions raise concerns over tariffs and trade restrictions, which could harm China’s exports and the Funds. China’s regulatory standards are less stringent than in the U.S., resulting in limited information about issuers. Tax laws are unclear and subject to change, potentially impacting the Funds and leading to unexpected liabilities for foreign investors. Fluctuations in currency of foreign countries may have an adverse effect on domestic currency values.

    KPRO and KBUF have characteristics unlike many other traditional investment products and may not be suitable for all investors. An investment in any of the Funds may not be appropriate for investors who do not intend to hold Fund shares for the entire Outcome Period. In the event an investor purchases shares after the beginning of the Outcome Period or sells shares prior to the end of the Outcome Period, the returns realized by the investor may not match those that the Funds seek to provide. The Funds may not fully protect against KWEB losses if their share prices drop during the Outcome Period. Buying or selling shares during this time may affect the Buffer’s availability. Even if KWEB’s value rises, the Buffer won’t guard against any subsequent decrease.

    A new Cap is set at the start of each Outcome Period and depends on current market conditions. Therefore, the Cap may change between Outcome Periods and is unlikely to stay constant. Investors should keep track of Cap changes for each Outcome Period, details of which will be provided according to the process outlined in each Fund’s prospectus. The Funds aim to provide returns subject to a Cap, but there is no guarantee of success. If any Fund’s gains exceed the Cap, that Fund won’t appreciate beyond the Cap and will underperform. Due to the Cap, the Funds may significantly underperform KWEB. Buying shares after the Outcome Period starts may limit gains, exposing investors to potential losses. Selling shares before the Outcome Period ends may result in underperformance.

    The Funds may invest in derivatives, which are often more volatile than other investments and may magnify the Funds’ gains or losses. A derivative (i.e., futures/forward contracts, swaps, and options) is a contract that derives its value from the performance of an underlying asset. The primary risk of derivatives is that changes in the asset’s market value and the derivative may not be proportionate, and some derivatives can have the potential for unlimited losses. Derivatives are also subject to liquidity and counterparty risk. The Funds are subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate, which may cause the Funds to suffer losses. Counterparty risk is the risk of loss in the event that the counterparty to an agreement fails to make required payments or otherwise comply with the terms of the derivative. KPRO and KBUF will use FLEX options from the Options Clearing Corporation (OCC). There’s a risk of the OCC failing to meet its obligations. The Funds may face challenges in less liquid FLEX options markets and have difficulty closing positions at desired times and prices. If the unlikely event the OCC becomes insolvent, the Funds could suffer losses. Failure by market participants to enter into FLEX options transactions that reflect market value could result in losses. Some FLEX options may expire worthless. The value of these options is associated with KWEB and influenced by factors such as market fluctuations and time until expiration.

    KPRO and KBUF are new and do not yet have a significant number of shares outstanding. If the Funds do not grow in size, they will be at greater risk than larger funds of wider bid-ask spreads for their shares, trading at a greater premium or discount to NAV, liquidation and/or a trading halt. Narrowly focused investments typically exhibit higher volatility. The Funds’ assets are expected to be concentrated in a sector, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations. The securities or futures in that concentration could react similarly to market developments. Thus, the Funds are subject to loss due to adverse occurrences that affect that concentration. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. KWEB, KPRO and KBUF are non-diversified.

    ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time.

    The KraneShares ETFs and KFA Funds ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Funds, or any sub-advisers for the Funds.

    Contact:
    KraneShares Investor Relations
    info@kraneshares.com

    The MIL Network

  • MIL-OSI: Acquia Brings AI Search Experiences to its Digital Experience Platform with New Solution Powered by SearchStax

    Source: GlobeNewswire (MIL-OSI)

    BOSTON and EL SEGUNDO, Calif., Jan. 29, 2025 (GLOBE NEWSWIRE) — Acquia, the leader in open digital experience software, today announced a strategic partnership with SearchStax, the Search Experience Company, to elevate the search experience of Drupal-based websites with advanced AI-driven search capabilities. The partnership will replace Acquia’s existing Solr site search service with a comprehensive new solution, Acquia Search powered by SearchStax, that significantly improves website engagement, user satisfaction, and conversions.

    “Search has evolved into critical infrastructure that provides website visitors with an intuitive, accurate, and contextually relevant experience that drives customer satisfaction and boosts conversions,” said Jim Shaw, Chief Product Officer at Acquia. “Likewise, marketing teams want to be able to configure and manage intelligent search experiences without developer involvement. Our partnership with SearchStax allows us to provide easy-to-use tools that enable marketers to configure sophisticated search features without complex coding, so they can ensure the right content is easy to find and can be served faster to their website visitors.”

    Acquia Search powered by SearchStax gives marketers the agility they need to optimize search outcomes with key features and benefits including:

    • Surface Content Quickly Across Sites: define facets and filters based on categories, tags, and other fields that follow your site’s content structure, while multi-site search breaks down silos to help visitors discover the exact information they need, regardless of where your content lives.
    • Drive Content Discoverability: go beyond basic search with AI-driven features that provide automatic search improvements including intelligent search suggestions and auto-completion, related keywords based on search history, and natural language processing to eliminate ‘no result’ searches.
    • No-code Analytics and Actionable Insights: robust analytics tools provide full visibility into search behavior and trends. A customizable dashboard provides a quick view of KPIs, and users can dive deep into the details to analyze site engagement, uncover content gaps, and identify specific areas of improvement.
    • Make Frictionless Adjustments: optimize content with tools that give marketers the ability to promote key content, boost fields to improve relevance and conversions, include/exclude content, and customize the search experience to different personas with just a few clicks.
    • Enterprise Availability and Security: protect your data with built-in compliance for HIPAA, SOC2, ISO 27001, WCAG, and GDPR industry standards, and confidently scale to handle large volumes of data, complex search queries, and demanding performance expectations so visitors can perform fast, reliable searches even during traffic spikes.

    “Integrating Acquia Search powered by SearchStax into our Acquia-hosted website was a seamless process, and we’re excited to implement the latest features,” said Barry Crowley, Web Content Lead Developer at Sensata Technologies, Inc. “We anticipate a substantial improvement in our site’s search functionality that will enable our visitors to find the information they need more quickly and effortlessly, boosting user engagement and driving higher conversions.”

    “Site search is key to boosting website conversions and elevating customer experiences. With SearchStax’s advanced search capabilities, Acquia’s customers can maximize their content’s value. This partnership empowers marketing teams to deliver highly relevant website search results, driving engagement and helping them achieve key business objectives,” said Sameer Maggon, CEO at SearchStax.

    Availability
    Acquia Search powered by SearchStax is generally available beginning in February 2025, with three tiered plans available. The Basic plan will be included at no cost in Acquia Cloud Platform and Site Factory subscriptions; paid Premier and Premier Plus plans will offer additional functionality AI search capabilities, advanced analytics, search management tools, and more. For more on Acquia Search powered by SearchStax, visit https://www.acquia.com/products/acquia-cloud-platform/acquia-search.

    About SearchStax:
    SearchStax, the Search Experience Company, enables marketers and developers to deliver fast, relevant website search experiences. SearchStax powers search for more than 700 customers worldwide, including leading brands in higher education, healthcare, government, manufacturing, and financial services such as Roche, University of Arkansas, KPMG, Banner Health, Canon, and Fidelity. Learn more at www.searchstax.com.

    About Acquia:
    Acquia empowers ambitious digital innovators to craft the most productive, frictionless digital experiences that make a difference to their customers, employees, and communities. We provide the world’s leading open digital experience platform (DXP), built on open source Drupal, as part of our commitment to shaping a digital future that is safe, accessible, and available to all. With Acquia Open DXP, you can unlock the potential of your customer data and content, accelerating time to market and increasing engagement, conversion, and revenue. Learn more at https://acquia.com.

    Media Contacts:

    For SearchStax
    Tom Humbarger
    Senior Marketing Programs Manager
    press@searchstax.com
    +1.844.973.2724

    For Acquia
    Matt Krebsbach
    SVP, Thought Leadership & Brand Awareness
    pr@acquia.com

    All logos, company, and product names are trademarks or registered trademarks of their respective owners.

    The MIL Network

  • MIL-OSI: TAB Bank Expands Lender Finance Portfolio with $12 Million Deal for Steel Capital Management

    Source: GlobeNewswire (MIL-OSI)

    OGDEN, Utah, Jan. 29, 2025 (GLOBE NEWSWIRE) — TAB Bank announces the addition of Steel Capital Management, a New York City-based finance company specializing in e-commerce solutions, to its portfolio of Lender Finance clients. TAB Bank has extended a $12 million credit facility to support Steel Capital Management as they provide capital solutions to accelerate growth for Direct-to-Consumer (DTC) companies.

    Steel Capital Management selected TAB Bank because of its expertise in lender finance, flexible financing structures, competitive cost of capital and scalability. The $12 million credit facility will provide Steel Capital Management with the working capital to continue scaling its business and supporting its clients.

    “TAB Bank is looking forward to helping Steel Capital Management continue driving growth and innovation in the e-commerce space by providing a flexible and scalable financing structure,” said Jerry Clinton, Managing Director of Corporate Underwriting at TAB Bank. “Our ability to tailor loans to fit a company’s market and unique needs demonstrates our mission—unlocking dreams with bold financial solutions that lift and empower.”

    Based in New York City, Steel Capital Management was born out of the necessity to help early to mid-stage consumer brands grow by providing alternative financing options. The firm understands recurring industry problems—seasonality, stale inventory, shipping and fulfillment backlogs, and marketing channels changing how they operate—and aims to tailor its investments to address them.

    “TAB Bank has been a pleasure to work with throughout the due diligence, documentation and closing process,” said Michael Hoffman, co-CEO of Steel Capital Management. “The TAB Bank team’s willingness to fit our flexible financing needs demonstrated their commitment to building a long and successful partnership with Steel Capital. We’re confident we’ve found the right partner to continue Steel’s growth.”

    TAB Bank is committed to empowering businesses with innovative financial solutions, including term loans, lines of credit and accounts receivable financing. By tailoring its offerings to fit each client’s specific needs, TAB Bank ensures consistent cash flow and growth opportunities for small and midsize businesses nationwide.

    About TAB Bank
    At TAB Bank, our mission is to unlock dreams with bold financial solutions that empower individuals and businesses nationwide. We are committed to making financial success accessible to everyone through our innovative banking products. Our dedication drives us to continuously improve, ensuring that we meet the evolving needs of our clients with excellence and agility. For over 25 years, we have remained steadfast in offering tailored, technology-enabled solutions designed to simplify and enhance the banking experience. 

    For more information about how we can help you achieve your financial dreams, visit www.TABBank.com.

    Contact Information:
    Trevor Morris
    Director of Marketing
    801-624-5172
    trevor.morris@tabbank.com

    The MIL Network

  • MIL-OSI: EXL Schedules Fourth Quarter and Full Year 2024 Financial Results Conference Call

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 29, 2025 (GLOBE NEWSWIRE) — ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, will release financial results for the fourth quarter and year ended Dec. 31, 2024, on Tuesday, February 25, 2025, after the market closes. An earnings news release, investor fact sheet and presentation will be published on the company’s investor relations website offering an overview of the financial results.

    The company will host a conference call at 10:00 a.m. EST the following day, Wednesday, Feb. 26, 2024, with Chairman and Chief Executive Officer Rohit Kapoor and Executive Vice President and Chief Financial Officer Maurizio Nicolelli, who will provide insights into the company’s operational and financial results.

    To listen to video live webcast or to participate in the call, please register here. A replay of the webcast will be available for approximately one year.

    EXL [NASDAQ: EXLS] is a global data and AI company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare, banking and capital markets, retail, communications and media, and energy and infrastructure, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have approximately 57,000 employees spanning six continents. For more information, visit www.exlservice.com.

    Contact:
    John Kristoff
    Vice President, Head of Investor Relations
    +1 212 209 4613

    Source: ExlService Holdings, Inc.

    The MIL Network

  • MIL-OSI Economics: kersten-anlageberatung.de: BaFin warns consumers about website and renewed identity fraud

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    The financial supervisory authority BaFin warns offers from the website kersten-anlageberatung.de. The website is almost identical to kersten-anlageberatung.com, which BaFin already warned against on 17 January 2025. BaFin expressly points out that the licensed securities institution Kersten Anlageberatung GmbH contrary to the information in the imprint does not operate the website kersten-anlageberatung.de either. This is yet another case of identity theft.

    Anyone providing financial or investment services in Germany may do so only with authorisation from BaFin. However, some companies offer these services without the necessary authorisation.

    The information provided by BaFin is based on section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG).

    Please be aware:

    BaFin, the German Federal Criminal Police Office (BundeskriminalamtBKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

    MIL OSI Economics

  • MIL-OSI Global: Fake papers are contaminating the world’s scientific literature, fueling a corrupt industry and slowing legitimate lifesaving medical research

    Source: The Conversation – USA – By Frederik Joelving, Contributing editor, Retraction Watch

    Assistant professor Frank Cackowski, left, and researcher Steven Zielske at Wayne State University in Detroit became suspicious of a paper on cancer research that was eventually retracted. Amy Sacka, CC BY-ND

    Over the past decade, furtive commercial entities around the world have industrialized the production, sale and dissemination of bogus scholarly research, undermining the literature that everyone from doctors to engineers rely on to make decisions about human lives.

    It is exceedingly difficult to get a handle on exactly how big the problem is. Around 55,000 scholarly papers have been retracted to date, for a variety of reasons, but scientists and companies who screen the scientific literature for telltale signs of fraud estimate that there are many more fake papers circulating – possibly as many as several hundred thousand. This fake research can confound legitimate researchers who must wade through dense equations, evidence, images and methodologies only to find that they were made up.

    Even when the bogus papers are spotted – usually by amateur sleuths on their own time – academic journals are often slow to retract the papers, allowing the articles to taint what many consider sacrosanct: the vast global library of scholarly work that introduces new ideas, reviews other research and discusses findings.

    These fake papers are slowing down research that has helped millions of people with lifesaving medicine and therapies from cancer to COVID-19. Analysts’ data shows that fields related to cancer and medicine are particularly hard hit, while areas like philosophy and art are less affected. Some scientists have abandoned their life’s work because they cannot keep pace given the number of fake papers they must bat down.

    The problem reflects a worldwide commodification of science. Universities, and their research funders, have long used regular publication in academic journals as requirements for promotions and job security, spawning the mantra “publish or perish.”

    But now, fraudsters have infiltrated the academic publishing industry to prioritize profits over scholarship. Equipped with technological prowess, agility and vast networks of corrupt researchers, they are churning out papers on everything from obscure genes to artificial intelligence in medicine.

    These papers are absorbed into the worldwide library of research faster than they can be weeded out. About 119,000 scholarly journal articles and conference papers are published globally every week, or more than 6 million a year. Publishers estimate that, at most journals, about 2% of the papers submitted – but not necessarily published – are likely fake, although this number can be much higher at some publications.

    While no country is immune to this practice, it is particularly pronounced in emerging economies where resources to do bona fide science are limited – and where governments, eager to compete on a global scale, push particularly strong “publish or perish” incentives.

    As a result, there is a bustling online underground economy for all things scholarly publishing. Authorship, citations, even academic journal editors, are up for sale. This fraud is so prevalent that it has its own name: paper mills, a phrase that harks back to “term-paper mills”, where students cheat by getting someone else to write a class paper for them.

    The impact on publishers is profound. In high-profile cases, fake articles can hurt a journal’s bottom line. Important scientific indexes – databases of academic publications that many researchers rely on to do their work – may delist journals that publish too many compromised papers. There is growing criticism that legitimate publishers could do more to track and blacklist journals and authors who regularly publish fake papers that are sometimes little more than artificial intelligence-generated phrases strung together.

    To better understand the scope, ramifications and potential solutions of this metastasizing assault on science, we – a contributing editor at Retraction Watch, a website that reports on retractions of scientific papers and related topics, and two computer scientists at France’s Université Toulouse III–Paul Sabatier and Université Grenoble Alpes who specialize in detecting bogus publications – spent six months investigating paper mills.

    This included, by some of us at different times, trawling websites and social media posts, interviewing publishers, editors, research-integrity experts, scientists, doctors, sociologists and scientific sleuths engaged in the Sisyphean task of cleaning up the literature. It also involved, by some of us, screening scientific articles looking for signs of fakery.

    Problematic Paper Screener: Trawling for fraud in the scientific literature

    What emerged is a deep-rooted crisis that has many researchers and policymakers calling for a new way for universities and many governments to evaluate and reward academics and health professionals across the globe.

    Just as highly biased websites dressed up to look like objective reporting are gnawing away at evidence-based journalism and threatening elections, fake science is grinding down the knowledge base on which modern society rests.

    As part of our work detecting these bogus publications, co-author Guillaume Cabanac developed the Problematic Paper Screener, which filters 130 million new and old scholarly papers every week looking for nine types of clues that a paper might be fake or contain errors. A key clue is a tortured phrase – an awkward wording generated by software that replaces common scientific terms with synonyms to avoid direct plagiarism from a legitimate paper.

    Problematic Paper Screener: Trawling for fraud in the scientific literature

    An obscure molecule

    Frank Cackowski at Detroit’s Wayne State University was confused.

    The oncologist was studying a sequence of chemical reactions in cells to see if they could be a target for drugs against prostate cancer. A paper from 2018 from 2018 in the American Journal of Cancer Research piqued his interest when he read that a little-known molecule called SNHG1 might interact with the chemical reactions he was exploring. He and fellow Wayne State researcher Steven Zielske began a series of experiments to learn more about the link. Surprisingly, they found there wasn’t a link.

    Meanwhile, Zielske had grown suspicious of the paper. Two graphs showing results for different cell lines were identical, he noticed, which “would be like pouring water into two glasses with your eyes closed and the levels coming out exactly the same.” Another graph and a table in the article also inexplicably contained identical data.

    Zielske described his misgivings in an anonymous post in 2020 at PubPeer, an online forum where many scientists report potential research misconduct, and also contacted the journal’s editor. Shortly thereafter, the journal pulled the paper, citing “falsified materials and/or data.”

    “Science is hard enough as it is if people are actually being genuine and trying to do real work,” says Cackowski, who also works at the Karmanos Cancer Institute in Michigan. “And it’s just really frustrating to waste your time based on somebody’s fraudulent publications.”

    Wayne State scientists Frank Cackowski and Steven Zielske carried out experiments based on a paper they later found to contain false data.
    Amy Sacka, CC BY-ND

    He worries that the bogus publications are slowing down “legitimate research that down the road is going to impact patient care and drug development.”

    The two researchers eventually found that SNHG1 did appear to play a part in prostate cancer, though not in the way the suspect paper suggested. But it was a tough topic to study. Zielske combed through all the studies on SNHG1 and cancer – some 150 papers, nearly all from Chinese hospitals – and concluded that “a majority” of them looked fake. Some reported using experimental reagents known as primers that were “just gibberish,” for instance, or targeted a different gene than what the study said, according to Zielske. He contacted several of the journals, he said, but received little response. “I just stopped following up.”

    The many questionable articles also made it harder to get funding, Zielske said. The first time he submitted a grant application to study SNHG1, it was rejected, with one reviewer saying “the field was crowded,” Zielske recalled. The following year, he explained in his application how most of the literature likely came from paper mills. He got the grant.

    Today, Zielske said, he approaches new research differently than he used to: “You can’t just read an abstract and have any faith in it. I kind of assume everything’s wrong.”

    Legitimate academic journals evaluate papers before they are published by having other researchers in the field carefully read them over. This peer review process is designed to stop flawed research from being disseminated, but is far from perfect.

    Reviewers volunteer their time, typically assume research is real and so don’t look for signs of fraud. And some publishers may try to pick reviewers they deem more likely to accept papers, because rejecting a manuscript can mean losing out on thousands of dollars in publication fees.

    “Even good, honest reviewers have become apathetic” because of “the volume of poor research coming through the system,” said Adam Day, who directs Clear Skies, a company in London that develops data-based methods to help spot falsified papers and academic journals. “Any editor can recount seeing reports where it’s obvious the reviewer hasn’t read the paper.”

    With AI, they don’t have to: New research shows that many reviews are now written by ChatGPT and similar tools.

    To expedite the publication of one another’s work, some corrupt scientists form peer review rings. Paper mills may even create fake peer reviewers impersonating real scientists to ensure their manuscripts make it through to publication. Others bribe editors or plant agents on journal editorial boards.

    María de los Ángeles Oviedo-García, a professor of marketing at the University of Seville in Spain, spends her spare time hunting for suspect peer reviews from all areas of science, hundreds of which she has flagged on PubPeer. Some of these reviews are the length of a tweet, others ask authors to cite the reviewer’s work even if it has nothing to do with the science at hand, and many closely resemble other peer reviews for very different studies – evidence, in her eyes, of what she calls “review mills.”

    PubPeer comment from María de los Ángeles Oviedo-García pointing out that a peer review report is very similar to two other reports. She also points out that authors and citations for all three are either anonymous or the same person – both hallmarks of fake papers.
    Screen capture by The Conversation, CC BY-ND

    “One of the demanding fights for me is to keep faith in science,” says Oviedo-García, who tells her students to look up papers on PubPeer before relying on them too heavily. Her research has been slowed down, she adds, because she now feels compelled to look for peer review reports for studies she uses in her work. Often there aren’t any, because “very few journals publish those review reports,” Oviedo-García says.

    An ‘absolutely huge’ problem

    It is unclear when paper mills began to operate at scale. The earliest article retracted due to suspected involvement of such agencies was published in 2004, according to the Retraction Watch Database, which contains details about tens of thousands of retractions. (The database is operated by The Center for Scientific Integrity, the parent nonprofit of Retraction Watch.) Nor is it clear exactly how many low-quality, plagiarized or made-up articles paper mills have spawned.

    But the number is likely to be significant and growing, experts say. One Russia-linked paper mill in Latvia, for instance, claims on its website to have published “more than 12,650 articles” since 2012.

    An analysis of 53,000 papers submitted to six publishers – but not necessarily published – found the proportion of suspect papers ranged from 2% to 46% across journals. And the American publisher Wiley, which has retracted more than 11,300 compromised articles and closed 19 heavily affected journals in its erstwhile Hindawi division, recently said its new paper-mill detection tool flags up to 1 in 7 submissions.

    Day, of Clear Skies, estimates that as many as 2% of the several million scientific works published in 2022 were milled. Some fields are more problematic than others. The number is closer to 3% in biology and medicine, and in some subfields, like cancer, it may be much larger, according to Day. Despite increased awareness today, “I do not see any significant change in the trend,” he said. With improved methods of detection, “any estimate I put out now will be higher.”

    The paper-mill problem is “absolutely huge,” said Sabina Alam, director of Publishing Ethics and Integrity at Taylor & Francis, a major academic publisher. In 2019, none of the 175 ethics cases that editors escalated to her team was about paper mills, Alam said. Ethics cases include submissions and already published papers. In 2023, “we had almost 4,000 cases,” she said. “And half of those were paper mills.”

    Jennifer Byrne, an Australian scientist who now heads up a research group to improve the reliability of medical research, submitted testimony for a hearing of the U.S. House of Representatives’ Committee on Science, Space, and Technology in July 2022. She noted that 700, or nearly 6%, of 12,000 cancer research papers screened had errors that could signal paper mill involvement. Byrne shuttered her cancer research lab in 2017 because the genes she had spent two decades researching and writing about became the target of an enormous number of fake papers. A rogue scientist fudging data is one thing, she said, but a paper mill could churn out dozens of fake studies in the time it took her team to publish a single legitimate one.

    “The threat of paper mills to scientific publishing and integrity has no parallel over my 30-year scientific career …. In the field of human gene science alone, the number of potentially fraudulent articles could exceed 100,000 original papers,” she wrote to lawmakers, adding, “This estimate may seem shocking but is likely to be conservative.”

    In one area of genetics research – the study of noncoding RNA in different types of cancer – “We’re talking about more than 50% of papers published are from mills,” Byrne said. “It’s like swimming in garbage.”

    In 2022, Byrne and colleagues, including two of us, found that suspect genetics research, despite not having an immediate impact on patient care, still informs the work of other scientists, including those running clinical trials. Publishers, however, are often slow to retract tainted papers, even when alerted to obvious signs of fraud. We found that 97% of the 712 problematic genetics research articles we identified remained uncorrected within the literature.

    When retractions do happen, it is often thanks to the efforts of a small international community of amateur sleuths like Oviedo-García and those who post on PubPeer.

    Jillian Goldfarb, an associate professor of chemical and biomolecular engineering at Cornell University and a former editor of the Elsevier journal Fuel, laments the publisher’s handling of the threat from paper mills.

    “I was assessing upwards of 50 papers every day,” she said in an email interview. While she had technology to detect plagiarism, duplicate submissions and suspicious author changes, it was not enough. “It’s unreasonable to think that an editor – for whom this is not usually their full-time job – can catch these things reading 50 papers at a time. The time crunch, plus pressure from publishers to increase submission rates and citations and decrease review time, puts editors in an impossible situation.”

    In October 2023, Goldfarb resigned from her position as editor of Fuel. In a LinkedIn post about her decision, she cited the company’s failure to move on dozens of potential paper-mill articles she had flagged; its hiring of a principal editor who reportedly “engaged in paper and citation milling”; and its proposal of candidates for editorial positions “with longer PubPeer profiles and more retractions than most people have articles on their CVs, and whose names appear as authors on papers-for-sale websites.”

    “This tells me, our community, and the public, that they value article quantity and profit over science,” Goldfarb wrote.

    In response to questions about Goldfarb’s resignation, an Elsevier spokesperson told The Conversation that it “takes all claims about research misconduct in our journals very seriously” and is investigating Goldfarb’s claims. The spokesperson added that Fuel’s editorial team has “been working to make other changes to the journal to benefit authors and readers.”

    That’s not how it works, buddy

    Business proposals had been piling up for years in the inbox of João de Deus Barreto Segundo, managing editor of six journals published by the Bahia School of Medicine and Public Health in Salvador, Brazil. Several came from suspect publishers on the prowl for new journals to add to their portfolios. Others came from academics suggesting fishy deals or offering bribes to publish their paper.

    In one email from February 2024, an assistant professor of economics in Poland explained that he ran a company that worked with European universities. “Would you be interested in collaboration on the publication of scientific articles by scientists who collaborate with me?” Artur Borcuch inquired. “We will then discuss possible details and financial conditions.”

    A university administrator in Iraq was more candid: “As an incentive, I am prepared to offer a grant of $500 for each accepted paper submitted to your esteemed journal,” wrote Ahmed Alkhayyat, head of the Islamic University Centre for Scientific Research, in Najaf, and manager of the school’s “world ranking.”

    “That’s not how it works, buddy,” Barreto Segundo shot back.

    In email to The Conversation, Borcuch denied any improper intent. “My role is to mediate in the technical and procedural aspects of publishing an article,” Borcuch said, adding that, when working with multiple scientists, he would “request a discount from the editorial office on their behalf.” Informed that the Brazilian publisher had no publication fees, Borcuch said a “mistake” had occurred because an “employee” sent the email for him “to different journals.”

    Academic journals have different payment models. Many are subscription-based and don’t charge authors for publishing, but have hefty fees for reading articles. Libraries and universities also pay large sums for access.

    A fast-growing open-access model – where anyone can read the paper – includes expensive publication fees levied on authors to make up for the loss of revenue in selling the articles. These payments are not meant to influence whether or not a manuscript is accepted.

    The Bahia School of Medicine and Public Health, among others, doesn’t charge authors or readers, but Barreto Segundo’s employer is a small player in the scholarly publishing business, which brings in close to $30 billion a year on profit margins as high as 40%. Academic publishers make money largely from subscription fees from institutions like libraries and universities, individual payments to access paywalled articles, and open-access fees paid by authors to ensure their articles are free for anyone to read.

    The industry is lucrative enough that it has attracted unscrupulous actors eager to find a way to siphon off some of that revenue.

    Ahmed Torad, a lecturer at Kafr El Sheikh University in Egypt and editor-in-chief of the Egyptian Journal of Physiotherapy, asked for a 30% kickback for every article he passed along to the Brazilian publisher. “This commission will be calculated based on the publication fees generated by the manuscripts I submit,” Torad wrote, noting that he specialized “in connecting researchers and authors with suitable journals for publication.”

    Excerpt from Ahmed Torad’s email suggesting a kickback.
    Screenshot by The Conversation, CC BY-ND

    Apparently, he failed to notice that Bahia School of Medicine and Public Health doesn’t charge author fees.

    Like Borcuch, Alkhayyat denied any improper intent. He said there had been a “misunderstanding” on the editor’s part, explaining that the payment he offered was meant to cover presumed article-processing charges. “Some journals ask for money. So this is normal,” Alkhayyat said.

    Torad explained that he had sent his offer to source papers in exchange for a commission to some 280 journals, but had not forced anyone to accept the manuscripts. Some had balked at his proposition, he said, despite regularly charging authors thousands of dollars to publish. He suggested that the scientific community wasn’t comfortable admitting that scholarly publishing has become a business like any other, even if it’s “obvious to many scientists.”

    The unwelcome advances all targeted one of the journals Barreto Segundo managed, The Journal of Physiotherapy Research, soon after it was indexed in Scopus, a database of abstracts and citations owned by the publisher Elsevier.

    Along with Clarivate’s Web of Science, Scopus has become an important quality stamp for scholarly publications globally. Articles in indexed journals are money in the bank for their authors: They help secure jobs, promotions, funding and, in some countries, even trigger cash rewards. For academics or physicians in poorer countries, they can be a ticket to the global north.

    Consider Egypt, a country plagued by dubious clinical trials. Universities there commonly pay employees large sums for international publications, with the amount depending on the journal’s impact factor. A similar incentive structure is hardwired into national regulations: To earn the rank of full professor, for example, candidates must have at least five publications in two years, according to Egypt’s Supreme Council of Universities. Studies in journals indexed in Scopus or Web of Science not only receive extra points, but they also are exempt from further scrutiny when applicants are evaluated. The higher a publication’s impact factor, the more points the studies get.

    With such a focus on metrics, it has become common for Egyptian researchers to cut corners, according to a physician in Cairo who requested anonymity for fear of retaliation. Authorship is frequently gifted to colleagues who then return the favor later, or studies may be created out of whole cloth. Sometimes an existing legitimate paper is chosen from the literature, and key details such as the type of disease or surgery are then changed and the numbers slightly modified, the source explained.

    It affects clinical guidelines and medical care, “so it’s a shame,” the physician said.

    Ivermectin, a drug used to treat parasites in animals and humans, is a case in point. When some studies showed that it was effective against COVID-19, ivermectin was hailed as a “miracle drug” early in the pandemic. Prescriptions surged, and along with them calls to U.S. poison centers; one man spent nine days in the hospital after downing an injectable formulation of the drug that was meant for cattle, according to the Centers for Disease Control and Prevention. As it turned out, nearly all of the research that showed a positive effect on COVID-19 had indications of fakery, the BBC and others reported – including a now-withdrawn Egyptian study. With no apparent benefit, patients were left with just side effects.

    Research misconduct isn’t limited to emerging economies, having recently felled university presidents and top scientists at government agencies in the United States. Neither is the emphasis on publications. In Norway, for example, the government allocates funding to research institutes, hospitals and universities based on how many scholarly works employees publish, and in which journals. The country has decided to partly halt this practice starting in 2025.

    “There’s a huge academic incentive and profit motive,” says Lisa Bero, a professor of medicine and public health at the University of Colorado Anschutz Medical Campus and the senior research-integrity editor at the Cochrane Collaboration, an international nonprofit organization that produces evidence reviews about medical treatments. “I see it at every institution I’ve worked at.”

    But in the global south, the publish-or-perish edict runs up against underdeveloped research infrastructures and education systems, leaving scientists in a bind. For a Ph.D., the Cairo physician who requested anonymity conducted an entire clinical trial single-handedly – from purchasing study medication to randomizing patients, collecting and analyzing data and paying article-processing fees. In wealthier nations, entire teams work on such studies, with the tab easily running into the hundreds of thousands of dollars.

    “Research is quite challenging here,” the physician said. That’s why scientists “try to manipulate and find easier ways so they get the job done.”

    Institutions, too, have gamed the system with an eye to international rankings. In 2011, the journal Science described how prolific researchers in the United States and Europe were offered hefty payments for listing Saudi universities as secondary affiliations on papers. And in 2023, the magazine, in collaboration with Retraction Watch, uncovered a massive self-citation ploy by a top-ranked dental school in India that forced undergraduate students to publish papers referencing faculty work.

    The root – and solutions

    Such unsavory schemes can be traced back to the introduction of performance-based metrics in academia, a development driven by the New Public Management movement that swept across the Western world in the 1980s, according to Canadian sociologist of science Yves Gingras of the Université du Québec à Montréal. When universities and public institutions adopted corporate management, scientific papers became “accounting units” used to evaluate and reward scientific productivity rather than “knowledge units” advancing our insight into the world around us, Gingras wrote.

    This transformation led many researchers to compete on numbers instead of content, which made publication metrics poor measures of academic prowess. As Gingras has shown, the controversial French microbiologist Didier Raoult, who now has more than a dozen retractions to his name, has an h-index – a measure combining publication and citation numbers – that is twice as high as that of Albert Einstein – “proof that the index is absurd,” Gingras said.

    Worse, a sort of scientific inflation, or “scientometric bubble,” has ensued, with each new publication representing an increasingly small increment in knowledge. “We publish more and more superficial papers, we publish papers that have to be corrected, and we push people to do fraud,” said Gingras.

    In terms of career prospects of individual academics, too, the average value of a publication has plummeted, triggering a rise in the number of hyperprolific authors. One of the most notorious cases is Spanish chemist Rafael Luque, who in 2023 reportedly published a study every 37 hours.

    In 2024, Landon Halloran, a geoscientist at the University of Neuchâtel, in Switzerland, received an unusual job application for an opening in his lab. A researcher with a Ph.D. from China had sent him his CV. At 31, the applicant had amassed 160 publications in Scopus-indexed journals, 62 of them in 2022 alone, the same year he obtained his doctorate. Although the applicant was not the only one “with a suspiciously high output,” according to Halloran, he stuck out. “My colleagues and I have never come across anything quite like it in the geosciences,” he said.

    According to industry insiders and publishers, there is more awareness now of threats from paper mills and other bad actors. Some journals routinely check for image fraud. A bad AI-generated image showing up in a paper can either be a sign of a scientist taking an ill-advised shortcut, or a paper mill.

    The Cochrane Collaboration has a policy excluding suspect studies from its analyses of medical evidence. The organization also has been developing a tool to help its reviewers spot problematic medical trials, just as publishers have begun to screen submissions and share data and technologies among themselves to combat fraud.

    This image, generated by AI, is a visual gobbledygook of concepts around transporting and delivering drugs in the body. For instance, the upper left figure is a nonsensical mix of a syringe, an inhaler and pills. And the pH-sensitive carrier molecule on the lower left is huge, rivaling the size of the lungs. After scientist sleuths pointed out that the published image made no sense, the journal issued a correction.
    Screen capture by The Conversation, CC BY-ND
    This graphic is the corrected image that replaced the AI image above. In this case, according to the correction, the journal determined that the paper was legitimate but the scientists had used AI to generate the image describing it.
    Screen capture by The Conversation, CC BY-ND

    “People are realizing like, wow, this is happening in my field, it’s happening in your field,” said the Cochrane Collaboration’s Bero”. “So we really need to get coordinated and, you know, develop a method and a plan overall for stamping these things out.”

    What jolted Taylor & Francis into paying attention, according to Alam, the director of Publishing Ethics and Integrity, was a 2020 investigation of a Chinese paper mill by sleuth Elisabeth Bik and three of her peers who go by the pseudonyms Smut Clyde, Morty and Tiger BB8. With 76 compromised papers, the U.K.-based company’s Artificial Cells, Nanomedicine, and Biotechnology was the most affected journal identified in the probe.

    “It opened up a minefield,” says Alam, who also co-chairs United2Act, a project launched in 2023 that brings together publishers, researchers and sleuths in the fight against paper mills. “It was the first time we realized that stock images essentially were being used to represent experiments.”

    Taylor & Francis decided to audit the hundreds of articles in its portfolio that contained similar types of images. It doubled Alam’s team, which now has 14.5 positions dedicated to doing investigations, and also began monitoring submission rates. Paper mills, it seemed, weren’t picky customers.

    “What they’re trying to do is find a gate, and if they get in, then they just start kind of slamming in the submissions,” Alam said. Seventy-six fake papers suddenly seemed like a drop in the ocean. At one Taylor & Francis journal, for instance, Alam’s team identified nearly 1,000 manuscripts that bore all the marks of coming from a mill, she said.

    And in 2023, it rejected about 300 dodgy proposals for special issues. “We’ve blocked a hell of a lot from coming through,” Alam said.

    Fraud checkers

    A small industry of technology startups has sprung up to help publishers, researchers and institutions spot potential fraud. The website Argos, launched in September 2024 by Scitility, an alert service based in Sparks, Nevada, allows authors to check if new collaborators are trailed by retractions or misconduct concerns. It has flagged tens of thousands of “high-risk” papers, according to the journal Nature.

    Fraud-checker tools sift through papers to point to those that should be manually checked and possibly rejected.
    solidcolours/iStock via Getty Images

    Morressier, a scientific conference and communications company based in Berlin, “aims to restore trust in science by improving the way scientific research is published”, according to its website. It offers integrity tools that target the entire research life cycle. Other new paper-checking tools include Signals, by London-based Research Signals, and Clear Skies’ Papermill Alarm.

    The fraudsters have not been idle, either. In 2022, when Clear Skies released the Papermill Alarm, the first academic to inquire about the new tool was a paper miller, according to Day. The person wanted access so he could check his papers before firing them off to publishers, Day said. “Paper mills have proven to be adaptive and also quite quick off the mark.”

    Given the ongoing arms race, Alam acknowledges that the fight against paper mills won’t be won as long as the booming demand for their products remains.

    According to a Nature analysis, the retraction rate tripled from 2012 to 2022 to close to .02%, or around 1 in 5,000 papers. It then nearly doubled in 2023, in large part because of Wiley’s Hindawi debacle. Today’s commercial publishing is part of the problem, Byrne said. For one, cleaning up the literature is a vast and expensive undertaking with no direct financial upside. “Journals and publishers will never, at the moment, be able to correct the literature at the scale and in the timeliness that’s required to solve the paper-mill problem,” Byrne said. “Either we have to monetize corrections such that publishers are paid for their work, or forget the publishers and do it ourselves.”

    But that still wouldn’t fix the fundamental bias built into for-profit publishing: Journals don’t get paid for rejecting papers. “We pay them for accepting papers,” said Bodo Stern, a former editor of the journal Cell and chief of Strategic Initiatives at Howard Hughes Medical Institute, a nonprofit research organization and major funder in Chevy Chase, Maryland. “I mean, what do you think journals are going to do? They’re going to accept papers.”

    With more than 50,000 journals on the market, even if some are trying hard to get it right, bad papers that are shopped around long enough eventually find a home, Stern added. “That system cannot function as a quality-control mechanism,” he said. “We have so many journals that everything can get published.”

    In Stern’s view, the way to go is to stop paying journals for accepting papers and begin looking at them as public utilities that serve a greater good. “We should pay for transparent and rigorous quality-control mechanisms,” he said.

    Peer review, meanwhile, “should be recognized as a true scholarly product, just like the original article, because the authors of the article and the peer reviewers are using the same skills,” Stern said. By the same token, journals should make all peer-review reports publicly available, even for manuscripts they turn down. “When they do quality control, they can’t just reject the paper and then let it be published somewhere else,” Stern said. “That’s not a good service.”

    Better measures

    Stern isn’t the first scientist to bemoan the excessive focus on bibliometrics. “We need less research, better research, and research done for the right reasons,” wrote the late statistician Douglas G. Altman in a much-cited editorial from 1994. “Abandoning using the number of publications as a measure of ability would be a start.”

    Nearly two decades later, a group of some 150 scientists and 75 science organizations released the San Francisco Declaration on Research Assessment, or DORA, discouraging the use of the journal impact factor and other measures as proxies for quality. The 2013 declaration has since been signed by more than 25,000 individuals and organizations in 165 countries.

    Despite the declaration, metrics remain in wide use today, and scientists say there is a new sense of urgency.

    “We’re getting to the point where people really do feel they have to do something” because of the vast number of fake papers, said Richard Sever, assistant director of Cold Spring Harbor Laboratory Press, in New York, and co-founder of the preprint servers bioRxiv and medRxiv.

    Stern and his colleagues have tried to make improvements at their institution. Researchers who wish to renew their seven-year contract have long been required to write a short paragraph describing the importance of their major results. Since the end of 2023, they also have been asked to remove journal names from their applications.

    That way, “you can never do what all reviewers do – I’ve done it – look at the bibliography and in just one second decide, ‘Oh, this person has been productive because they have published many papers and they’re published in the right journals,’” says Stern. “What matters is, did it really make a difference?”

    Shifting the focus away from convenient performance metrics seems possible not just for wealthy private institutions like Howard Hughes Medical Institute, but also for large government funders. In Australia, for example, the National Health and Medical Research Council in 2022 launched the “top 10 in 10” policy, aiming, in part, to “value research quality rather than quantity of publications.”

    Rather than providing their entire bibliography, the agency, which assesses thousands of grant applications every year, asked researchers to list no more than 10 publications from the past decade and explain the contribution each had made to science. According to an evaluation report from April, 2024 close to three-quarters of grant reviewers said the new policy allowed them to concentrate more on research quality than quantity. And more than half said it reduced the time they spent on each application.

    Gingras, the Canadian sociologist, advocates giving scientists the time they need to produce work that matters, rather than a gushing stream of publications. He is a signatory to the Slow Science Manifesto: “Once you get slow science, I can predict that the number of corrigenda, the number of retractions, will go down,” he says.

    At one point, Gingras was involved in evaluating a research organization whose mission was to improve workplace security. An employee presented his work. “He had a sentence I will never forget,” Gingras recalls. The employee began by saying, “‘You know, I’m proud of one thing: My h-index is zero.’ And it was brilliant.” The scientist had developed a technology that prevented fatal falls among construction workers. “He said, ‘That’s useful, and that’s my job.’ I said, ‘Bravo!’”

    Learn more about how the Problematic Paper Screener uncovers compromised papers.

    Labbé receives funding from the European Research Council.
    He has also received funding from the French National Research Agency (ANR), and the U.S. Office of Research Integrity.
    Labbé has been in touch with most of the major publishers and their integrity officers, offering pro-bono consulting regarding detection tools to various actors in the field including STM-Hub and Morressier.

    Cabanac receives funding from the European Research Council (ERC) and the Institut Universitaire de France (IUF). He is the administrator of the Problematic Paper Screener, a public platform that uses metadata from Digital Science and PubPeer via no-cost agreements. Cabanac has been in touch with most of the major publishers and their integrity officers, offering pro bono consulting regarding detection tools to various actors in the field including ClearSkies, Morressier, River Valley, Signals, and STM.

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

    ref. Fake papers are contaminating the world’s scientific literature, fueling a corrupt industry and slowing legitimate lifesaving medical research – https://theconversation.com/fake-papers-are-contaminating-the-worlds-scientific-literature-fueling-a-corrupt-industry-and-slowing-legitimate-lifesaving-medical-research-246224

    MIL OSI – Global Reports

  • MIL-OSI Russia: Marat Khusnullin: Work has begun to expand the overpass on the Adler bypass

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Previous news Next news

    Marat Khusnullin: Work has begun to expand the overpass on the Adler bypass

    A developed road network is the most important factor in the sustainable socio-economic growth of the country. In this regard, large-scale infrastructure projects are being implemented, including the construction of the Adler bypass. It will be part of the prospective highway from the federal highway M-4 “Don” to the city of Sochi. Currently, builders have begun to expand the dimensions of the existing overpass at the 6th km of the A-149 Adler – Krasnaya Polyana road, Deputy Prime Minister Marat Khusnullin reported.

    “The megaproject for the construction of the M-4 Don-Sochi highway will give a powerful impetus to the development of the economy of the southern regions of Russia and will help to significantly improve the transport situation on the Black Sea coast. We will implement it in stages. And among the priority sections is the Adler bypass, about 10 km long. The road will connect the village of Kudepsta and the village of Vysokoye. The construction of the new section will increase the tourist potential of this direction, reduce travel time to the Sochi airport and Krasnaya Polyana, ensure the withdrawal of transit transport from the resort area of Adler and improve the environmental situation of the coastal territory. As part of this project, the overpass at the 6th km of the A-149 Adler-Krasnaya Polyana highway is being reconstructed. By now, work has begun to increase its dimensions. The artificial structure and its approaches will be expanded to two traffic lanes, one in the forward and reverse directions. We plan to put the overpass into operation before the start of the resort season, so that this summer Sochi residents and its guests will have the opportunity to travel along it in both directions, both towards Adler and towards Krasnaya Polyana,” said Marat Khusnullin.

    The reconstruction of the overpass started in November last year. Before its expansion, a large complex of works was completed. In particular, specialists removed the fencing elements, noise protection screens, layers of the bridge deck from the existing bridge structure, dismantled the utility networks and side consoles of the overpass.

    According to the Chairman of the Board of the state company Avtodor, Vyacheslav Petushenko, work at the site is currently being carried out in two shifts.

    “These days, the builders are using powerful jacks to lift the overpass sections by several centimeters and transfer them to temporary supports, the so-called bridge structures, erected earlier. Then, new metal consoles will be mounted on both sides of the overpass to expand the overpass dimensions. In total, 95 people and 15 units of equipment are involved in the work. Upon completion, the builders will be able to begin preparing and assembling tunnel boring machines at the construction site to begin tunneling the Adler bypass,” Vyacheslav Petushenko noted.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI: Blue Foundry Bancorp Reports Fourth Quarter and Year-End 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    RUTHERFORD, N.J., Jan. 29, 2025 (GLOBE NEWSWIRE) — Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), reported a net loss of $11.9 million, or $0.55 per diluted common share, for the year ended December 31, 2024 compared to a net loss of $7.4 million, or $0.31 per diluted common share for the year ended December 31, 2023.

    The Company reported a net loss of $2.7 million, or $0.13 per diluted common share, for the three months ended December 31, 2024 compared to a net loss of $4.0 million, or $0.19 per diluted common share for the three months ended September 30, 2024, and a net loss of $2.9 million, or $0.13 per diluted common share for the three months ended December 31, 2023.

    James D. Nesci, President and Chief Executive Officer, commented, “We are very pleased with both the deposit and loan growth achieved in the fourth quarter and look to carry this positive momentum into 2025.”

    Mr. Nesci also noted, “Credit quality remained strong and we continue to experience very low charge-offs. Our allowance to credit losses to total loans is 83 basis points and covers non-performing loans by over 2.5 times.”

    Highlights for the fourth quarter of 2024:

    • Loans totaled $1.58 billion, an increase of $32.5 million from the prior quarter end.
    • Deposits increased $24.7 million to $1.34 billion compared to the prior quarter.
    • Uninsured deposits to third-party customers totaled approximately 11% of total deposits at December 31, 2024.
    • Interest income for the quarter was $21.8 million, an increase of $253 thousand, or 1.2%, compared to the prior quarter.
    • Interest expense for the quarter was $12.3 million, a decrease of $133 thousand, or 1.1%, compared to the prior quarter.
    • Net interest margin increased seven basis points from the prior quarter to 1.89%.
    • The release of provision for credit losses of $301 thousand was primarily due to the decrease in unused lines of credit and releases of provision for loans of $37 thousand and for securities of $24 thousand.
    • Tangible book value per share was $14.74. See the “Supplemental Information – Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
    • 480,851 shares were repurchased under our share repurchase plans at a weighted average share price of $10.49 per share.
    • Credit metrics remained favorable with non-performing loans to total loans of 0.33%.

    Loans

    The Company continues to diversify its lending portfolio by focusing on growing the higher-yielding commercial portfolio. Gross loans increased $22.8 million during 2024 with increases in commercial real estate loans, construction loans, consumer and other loans, commercial and industrial loans and junior liens of $27.1 million, $25.1 million, $7.2 million, $4.5 million and $2.9 million, respectively, offset in part by reductions in the residential portfolio of $32.7 million and multifamily portfolio of $11.4 million.

    The details of the loan portfolio are below:

        December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
        (Unaudited)   (Audited)
        (In thousands)
    Residential   $ 518,243   $ 516,754   $ 526,453   $ 540,427   $ 550,929
    Multifamily     671,116     666,304     671,185     671,011     682,564
    Commercial real estate     259,633     241,711     241,867     244,207     232,505
    Construction and land     85,546     80,081     71,882     63,052     60,414
    Junior liens     25,422     24,174     23,653     22,052     22,503
    Commercial and industrial     16,311     14,228     12,261     13,372     11,768
    Consumer and other     7,211     7,731     83     56     47
    Total loans     1,583,482     1,550,983     1,547,384     1,554,177     1,560,730
    Allowance for credit losses on loans     12,965     13,012     13,027     13,749     14,154
    Loans receivable, net   $ 1,570,517   $ 1,537,971   $ 1,534,357   $ 1,540,428   $ 1,546,576


    Deposits

    At December 31, 2024, total deposits were $1.34 billion, an increase of $98.4 million or 7.91% from December 31, 2023, mostly due to the increases of $110.7 million and $8.4 million in time deposits and NOW and demand accounts, partially offset by decreases in savings and non-interest bearing deposits of $19.0 million and $1.7 million, respectively. The Company’s strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. While there is strong competition for deposits in the northern New Jersey market, we were able to increase customer deposits by $78.0 million, or 7.0%, during the year. Brokered deposits increased $30.0 million since year end 2023.

    The details of deposits are below:

        December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
        (Unaudited)   (Audited)
        (In thousands)
    Non-interest bearing deposits   $ 26,001   $ 22,254   $ 24,733   $ 25,342   $ 27,739
    NOW and demand accounts     369,554     357,503     368,386     373,172     361,139
    Savings     240,426     237,651     246,559     250,298     259,402
    Core deposits     635,981     617,408     639,678     648,812     648,280
    Time deposits     707,339     701,262     671,478     642,372     596,624
    Total deposits   $ 1,343,320   $ 1,318,670   $ 1,311,156   $ 1,291,184   $ 1,244,904


    Financial Performance Overview:
            

    Fourth quarter of 2024 compared to the third quarter of 2024

    Net interest income compared to the third quarter of 2024:

    • Net interest income was $9.5 million for the fourth quarter of 2024 compared to $9.1 million for the third quarter of 2024, an increase of $386 thousand.
    • Net interest margin increased by seven basis points to 1.89%.
    • The yield on average interest-earning assets increased five basis points to 4.37%, while the cost of average interest-bearing liabilities decreased six basis points to 2.97% due to a decrease in rates paid on time deposits.
    • Average interest-earning assets increased by $10.1 million and average interest-bearing liabilities increased by $15.4 million.

    Non-interest income compared to the third quarter of 2024:

    • Non-interest income increased $33 thousand primarily due to increase in fees and service charges.

    Non-interest expense compared to the third quarter of 2024:

    • Non-interest expense decreased $386 thousand primarily driven by decreases of $363 thousand in compensation and benefits expenses, $76 thousand in professional fees and $36 thousand in occupancy and equipment, partially offset by an increase in data processing expense of $102 thousand.

    Income tax expense compared to the third quarter of 2024:

    • The Company did not record a tax benefit for the losses incurred during the third or fourth quarter of 2024 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the full valuation allowance on its deferred tax assets. At December 31, 2024, the valuation allowance on deferred tax assets was $25.1 million.

    Fourth quarter of 2024 compared to the fourth quarter of 2023

    Net interest income compared to the fourth quarter of 2023:

    • Net interest income was $9.5 million, an increase of $277 thousand.
    • Net interest margin increased five basis point to 1.89%.
    • Yield on average interest-earning assets increased 31 basis points to 4.37%.
    • Cost of average interest-bearing deposits increased 38 basis points to 2.90%, reflecting the competitive rate environment in our primary market.
    • Average loans increased by $7.5 million and average interest-bearing deposits increased by $94.2 million.

    Non-interest income compared to the fourth quarter of 2023:

    • Non-interest income decreased $152 thousand, or 26.57%. The prior year period included gains on sales of loans and securities that were not present in the current period. In addition, there was a decline in fees and service charges from the prior period.

    Non-interest expense compared to the fourth quarter of 2023:

    • Non-interest expense was $12.9 million, an increase of $338 thousand driven by increases in professional services expense, compensation and benefit costs and occupancy and equipment expense of $106 thousand, $56 thousand and $54 thousand, respectively, partially offset by a decrease in advertising expense of $39 thousand. In addition, other expense increased $131 thousand when compared to the fourth quarter of 2023 due in part to increases in business development and postage expenses.

    Income tax expense compared to the fourth quarter of 2023:

    • The Company did not record a tax benefit for the loss incurred during the fourth quarter of 2024 or 2023 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the full valuation allowance on its deferred tax assets. At December 31, 2024, the valuation allowance on deferred tax assets was $25.1 million.

    Year ended December 31, 2024 compared to the year ended December 31, 2023

    Net interest income compared to the year ended December 31, 2023:

    • Net interest income was $37.6 million, a decrease of $4.4 million.
    • Net interest margin decreased by 19 basis points to 1.90%.
    • Yield on average interest-earning assets increased 38 basis points to 4.32%.
    • Cost of average interest-bearing deposits increased 92 basis points to 2.89%, due to an increase in higher-cost time deposits and the competitive rate environment in our primary market.
    • Average loans decreased by $16.4 million and average interest-bearing deposits increased by $52.6 million.

    Non-interest income compared to the year ended December 31, 2023:

    • Non-interest income decreased $11 thousand, or 0.61%, largely due to the lack of gain on sale of loans and securities, offset in part by a gain on sale of an REO property in 2024.

    Non-interest expense compared to the year ended December 31, 2023:

    • Non-interest expense was $52.6 million, an increase of $1.0 million, primarily driven by increases in compensation and benefits of $994 thousand, occupancy and equipment of $528 thousand and FDIC premiums of $56 thousand, offset in part by decreases in data processing expense and professional services of $471 thousand and $118 thousand, respectively.

    Income tax expense compared to the year ended December 31, 2023:

    • The Company did not record a tax benefit for the loss incurred during 2024 or 2023 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At December 31, 2024, the valuation allowance on deferred tax assets was $25.1 million.

    Balance Sheet Summary:

    December 31, 2024 compared to December 31, 2023

    Securities available-for-sale:

    • Securities available-for-sale increased $13.3 million to $297.0 million due to purchases and a $3.3 million improvement in the unrealized loss position on the portfolio, partially offset by amortization, maturities and calls during the year.

    Other investments:

    • Other investments decreased during 2024 by $2.6 million due to a decrease in FHLB stock as a result of a reduction in FHLB borrowings.

    Total loans:

    • Gross loans held for investment increased $22.8 million to $1.58 billion.
    • Commercial real estate loans increased $27.1 million, construction loans increased $25.1 million, consumer and other category increased $7.2 million and commercial and industrial loans increased $4.5 million, while residential and multifamily loans decreased $32.7 million and $11.4 million, respectively.
    • Loan fundings totaled $108.4 million, including fundings of $35.7 million in commercial real estate loans, $33.7 million in construction loans, $12.2 million in multifamily loans and $11.2 million in commercial and industrial loans. In addition, the Company purchased $21.6 million of conforming residential mortgages in New Jersey and participated in a consumer loan participation of $8.0 million during the year.

    Deposits:

    • Deposits totaled $1.34 billion, an increase of $98.4 million since December 31, 2023, largely the result of increases in customer deposits.
    • Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) represented 47.3% of total deposits compared to 48.8% at December 31, 2023, as time deposits increased $110.7 million.
    • The increase in time deposits include $30.0 million in brokered deposits, bringing our total brokered deposit balance to $155.0 million at December 31, 2024.
    • Uninsured and uncollateralized deposits to third-party customers were $147.6 million, or 11% of total deposits, at the end of the fourth quarter.

    Borrowings:

    • FHLB borrowings decreased by $58.0 million to $339.5 million as we were able to pay off short-term borrowings with deposit growth that outpaced asset growth.
    • As of December 31, 2024, the Company had $270.6 million of additional borrowing capacity at the FHLB, $107.7 million in secured lines of credit at the Federal Reserve Bank and $30.0 million of other unsecured lines of credit.

    Capital:

    • Shareholders’ equity decreased by $23.4 million to $332.2 million. The decrease was primarily driven by the repurchase of shares at a cost of $19.4 million. Additionally, the year-to-date loss, partially offset by favorable changes in accumulated other comprehensive income, also contributed to the decrease.
    • Tangible equity to tangible assets was 16.11% and 17.37% at December 31, 2024 and 2023, respectively.
    • Tangible common equity per share outstanding was $14.74 at December 31, 2024 and $14.49 at December 31, 2023.
    • The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards.

    Asset quality:

    • The allowance for credit losses on loans represented 0.83% of total loans at December 31, 2024 compared to 0.91% at December 31, 2023. The allowance for credit losses on loans was 254.02% of non-performing loans compared to 239.98% at December 31, 2023.
    • The Company recorded a release of provision for credit losses of $301 thousand for the fourth quarter of 2024 and a release of provision for credit losses of $1.4 million for the year ended December 31, 2024. For the fourth quarter of 2024, there was a release of provision of $240 thousand, $37 thousand and $24 thousand in the ACL for off-balance-sheet commitments, loans and held-to-maturity securities, respectively. For the year ended December 31, 2024, there was a release of $1.1 million in the ACL for loans, $146 thousand in the ACL for off-balance-sheet commitments and $60 thousand in the ACL for held-to-maturity securities. The release was driven by the impact of the economic forecasts for the key drivers of our loan segments as well as a decrease in off-balance-sheet commitments.
    • Non-performing loans totaled $5.1 million, or 0.33% of total loans at December 31, 2024 compared to $5.9 million, or 0.38% of total loans at December 31, 2023.
    • Net charge-offs were $10 thousand and $46 thousand for the quarter and year ended December 31, 2024, respectively.

    About Blue Foundry

    Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.

    Conference Call Information

    A conference call discussing Blue Foundry’s fourth quarter and year ended December 31, 2024 financial results will be held today, Wednesday, January 29, 2025 at 11:00 a.m. (EST). To listen to the live call, please dial 1-833-470-1428 (toll free) or +1-404-975-4839 (international) and use access code 168429. Participants are encouraged to preregister to listen via webcast at https://events/q4inc.com/attendee/980680589. The conference call will be recorded and will be available on the Company’s website for one month.

    Contact:

    James D. Nesci
    President and Chief Executive Officer
    jnesci@bluefoundrybank.com
    201-972-8900

    Forward Looking Statements

    Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions.

    Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase in the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected; 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; our 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 our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related there to; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

    Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Statements of Financial Condition
     
        December 31,
    2024
      September 30,
    2024
      December 31,
    2023
        (Unaudited)   (Unaudited)   (Audited)
        (In thousands)
    ASSETS            
    Cash and cash equivalents   $ 42,502   $ 76,109   $ 46,025
    Securities available for sale, at fair value     297,028     290,806     283,766
    Securities held to maturity     33,076     33,119     33,254
    Other investments     17,791     18,203     20,346
    Loans, net     1,570,517     1,537,971     1,546,576
    Real estate owned, net             593
    Interest and dividends receivable     8,014     8,386     7,595
    Premises and equipment, net     29,486     30,161     32,475
    Right-of-use assets     23,470     24,190     25,172
    Bank owned life insurance     22,519     22,399     22,034
    Other assets     16,280     13,749     27,127
    Total assets   $ 2,060,683   $ 2,055,093   $ 2,044,963
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY            
    Liabilities            
    Deposits   $ 1,343,320   $ 1,318,670   $ 1,244,904
    Advances from the Federal Home Loan Bank     339,500     348,500     397,500
    Advances by borrowers for taxes and insurance     9,356     9,909     8,929
    Lease liabilities     25,168     25,870     26,777
    Other liabilities     11,141     12,845     11,213
    Total liabilities     1,728,485     1,715,794     1,689,323
    Shareholders’ equity     332,198     339,299     355,640
    Total liabilities and shareholders’ equity   $ 2,060,683   $ 2,055,093   $ 2,044,963
    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Statements of Operations
    (Dollars in thousands except per share data)
     
        Three months ended   Year Ended December 31,
        December 31,
    2024
      September 30,
    2024
      December 31,
    2023
        2024       2023  
        (unaudited)   (Unaudited)   (Audited)
    Interest income:                    
    Loans   $ 17,777     $ 17,646     $ 16,907     $ 70,185     $ 65,685  
    Taxable investment income     3,972       3,850       3,327       15,122       12,990  
    Non-taxable investment income     36       36       101       144       430  
    Total interest income     21,785       21,532       20,335       85,451       79,105  
    Interest expense:                    
    Deposits     9,573       9,712       7,755       36,830       24,116  
    Borrowed funds     2,739       2,733       3,384       11,071       13,070  
    Total interest expense     12,312       12,445       11,139       47,901       37,186  
    Net interest income     9,473       9,087       9,196       37,550       41,919  
    (Release of ) provision for credit losses     (301 )     248       156       (1,350 )     (441 )
    Net interest income after (release of ) provision for credit losses     9,774       8,839       9,040       38,900       42,360  
    Non-interest income:                    
    Fees and service charges     306       272       331       1,203       1,164  
    Gain on securities, net                 20             20  
    Gain on sale of loans                 72       36       231  
    Other income     114       115       149       555       390  
    Total non-interest income     420       387       572       1,794       1,805  
    Non-interest expense:                    
    Compensation and benefits     6,943       7,306       6,887       29,433       28,439  
    Occupancy and equipment     2,194       2,230       2,140       8,878       8,350  
    Data processing     1,514       1,412       1,510       5,648       6,119  
    Advertising     81       87       120       292       354  
    Professional services     737       813       631       2,903       3,021  
    Federal deposit insurance premiums     226       236       200       855       799  
    Other expense     1,186       1,183       1,055       4,596       4,480  
    Total non-interest expenses     12,881       13,267       12,543       52,605       51,562  
    Loss before income tax expense     (2,687 )     (4,041 )     (2,931 )     (11,911 )     (7,397 )
    Income tax expense                              
    Net loss   $ (2,687 )   $ (4,041 )   $ (2,931 )   $ (11,911 )   $ (7,397 )
    Basic loss per share   $ (0.13 )   $ (0.19 )   $ (0.13 )   $ (0.55 )   $ (0.31 )
    Diluted loss per share   $ (0.13 )   $ (0.19 )   $ (0.13 )   $ (0.55 )   $ (0.31 )
    Weighted average shares outstanding-basic     20,826,845       21,263,482       22,845,252       21,477,429       23,925,724  
    Weighted average shares outstanding-diluted     20,826,845       21,263,482       22,845,252       21,477,429       23,925,724  
    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Financial Highlights
    (Dollars in thousands except for share data) (Unaudited)
     
        Three months ended
        December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
    Performance Ratios (%)                    
    Loss on average assets     (0.52 )     (0.79 )     (0.47 )     (0.56 )     (0.57 )
    Loss on average equity     (3.17 )     (4.68 )     (2.71 )     (3.23 )     (3.25 )
    Interest rate spread (1)     1.40       1.29       1.43       1.40       1.33  
    Net interest margin (2)     1.89       1.82       1.96       1.92       1.84  
    Efficiency ratio (non-GAAP) (3)     130.20       140.04       130.73       134.19       128.41  
    Average interest-earning assets to average interest-bearing liabilities     120.84       121.37       122.28       122.50       122.93  
    Tangible equity to tangible assets (4)     16.11       16.50       16.88       17.25       17.37  
    Book value per share (5)   $ 14.75     $ 14.76     $ 14.70     $ 14.61     $ 14.51  
    Tangible book value per share (5)   $ 14.74     $ 14.74     $ 14.69     $ 14.60     $ 14.49  
                         
    Asset Quality                    
    Non-performing loans   $ 5,104     $ 5,146     $ 6,208     $ 6,691     $ 5,898  
    Real estate owned, net                       593       593  
    Non-performing assets   $ 5,104     $ 5,146     $ 6,208     $ 7,284     $ 6,491  
    Allowance for credit losses on loans to total loans (%)     0.83       0.84       0.84       0.88       0.91  
    Allowance for credit losses on loans to non-performing loans (%)     254.02       252.86       209.84       205.48       239.98  
    Non-performing loans to total loans (%)     0.33       0.33       0.40       0.43       0.38  
    Non-performing assets to total assets (%)     0.25       0.25       0.30       0.36       0.32  
    Net charge-offs to average outstanding loans during the period (%)                              

    (1) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average interest-earning assets.
    (3) Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income.
    (4) Tangible equity equals $332.0 million, which excludes intangible assets ($244 thousand of capitalized software). Tangible assets equal $2.06 billion and exclude intangible assets.
    (5) Per share metrics are computed using 22,522,626 total shares outstanding.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Analysis of Net Interest Income
    (Unaudited)
     
        Three Months Ended
        December 31, 2024   September 30, 2024   December 31, 2023
        Average Balance   Interest   Average
    Yield/Cost
      Average Balance   Interest   Average
    Yield/Cost
      Average Balance   Interest   Average
    Yield/Cost
        (Dollars in thousands)
    Assets:                                    
    Loans (1)   $ 1,557,342   $ 17,777   4.57 %   $ 1,548,962   $ 17,646   4.53 %   $ 1,564,800   $ 16,907   4.29 %
    Mortgage-backed securities     185,382     1,254   2.71 %     181,596     1,186   2.60 %     165,471     904   2.17 %
    Other investment securities     164,392     1,573   3.83 %     173,008     1,527   3.51 %     190,507     1,486   3.09 %
    FHLB stock     17,153     411   9.58 %     17,666     406   9.15 %     20,970     477   9.02 %
    Cash and cash equivalents     68,536     770   4.50 %     61,507     767   4.96 %     45,895     561   4.85 %
    Total interest-bearing assets     1,992,805     21,785   4.37 %     1,982,739     21,532   4.32 %     1,987,643     20,335   4.06 %
    Non-interest earning assets     61,586             61,787             54,918        
    Total assets   $ 2,054,391           $ 2,044,526           $ 2,042,561        
    Liabilities and shareholders’ equity:                                    
    NOW, savings, and money market deposits   $ 614,623     1,988   1.29 %   $ 598,048     1,925   1.28 %   $ 634,257     1,989   1.24 %
    Time deposits     698,801     7,585   4.32 %     688,570     7,787   4.50 %     584,977     5,766   3.91 %
    Interest-bearing deposits     1,313,424     9,573   2.90 %     1,286,618     9,712   3.00 %     1,219,234     7,755   2.52 %
    FHLB advances     335,686     2,739   3.26 %     347,076     2,733   3.13 %     397,643     3,384   3.38 %
    Total interest-bearing liabilities     1,649,110     12,312   2.97 %     1,633,694     12,445   3.03 %     1,616,877     11,139   2.73 %
    Non-interest bearing deposits     24,945             23,421             26,629        
    Non-interest bearing other     43,016             43,713             41,780        
    Total liabilities     1,717,071             1,700,828             1,685,286        
    Total shareholders’ equity     337,320             343,698             357,275        
    Total liabilities and shareholders’ equity   $ 2,054,391           $ 2,044,526           $ 2,042,561        
    Net interest income       $ 9,473           $ 9,087           $ 9,196    
    Net interest rate spread (2)           1.40 %           1.29 %           1.33 %
    Net interest margin (3)           1.89 %           1.82 %           1.84 %

    (1) Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.
    (2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (3) Net interest margin represents net interest income divided by average interest-earning assets.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Analysis of Net Interest Income continued
    (Unaudited)
     
        Year Ended December 31,
          2024       2023  
        Average Balance   Interest   Average
    Yield/Cost
      Average Balance   Interest   Average
    Yield/Cost
        (Dollar in thousands)
    Assets:                        
    Loans (1)   $ 1,553,143   $ 70,185   4.52 %   $ 1,569,590   $ 65,685   4.18 %
    Mortgage-backed securities     173,691     4,276   2.46 %     172,405     3,693   2.14 %
    Other investment securities     174,172     6,440   3.70 %     195,754     6,010   3.07 %
    FHLB stock     18,038     1,756   9.73 %     21,249     1,582   7.45 %
    Cash and cash equivalents     58,261     2,794   4.80 %     46,245     2,135   4.62 %
    Total interest-bearing assets     1,977,305     85,451   4.32 %     2,005,243     79,105   3.94 %
    Non-interest earning assets     59,832             56,297        
    Total assets   $ 2,037,137           $ 2,061,540        
    Liabilities and shareholders’ equity:                        
    NOW, savings, and money market deposits   $ 610,172     7,803   1.28 %   $ 722,149     8,339   1.15 %
    Time deposits     665,740     29,027   4.36 %     501,124     15,777   3.15 %
    Interest-bearing deposits     1,275,912     36,830   2.89 %     1,223,273     24,116   1.97 %
    FHLB advances     348,306     11,071   3.18 %     396,265     13,070   3.30 %
    Total interest-bearing liabilities     1,624,218     47,901   2.95 %     1,619,538     37,186   2.30 %
    Non-interest bearing deposits     24,980             25,227        
    Non-interest bearing other     42,345             43,868        
    Total liabilities     1,691,543             1,688,633        
    Total shareholders’ equity     345,594             372,907        
    Total liabilities and shareholders’ equity   $ 2,037,137           $ 2,061,540        
    Net interest income       $ 37,550           $ 41,919    
    Net interest rate spread (2)           1.37 %           1.64 %
    Net interest margin (3)           1.90 %           2.09 %

    (1) Average loan balances are net of deferred loan fees and costs, and premiums and discounts, and include non-accrual loans.
    (2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (3) Net interest margin represents net interest income divided by average interest-earning assets.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Adjusted Pre-Provision Net Loss (Non-GAAP)
    (Dollars in thousands except per share data) (Unaudited)

    This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Blue Foundry’s performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry’s financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    Net loss, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense while pre-provision net loss does not.

        Three months ended
        December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
    Pre-provision net loss and efficiency ratio, as adjusted:                
    Net interest income   $ 9,473     $ 9,087     $ 9,573     $ 9,417     $ 9,196  
    Other income     420       387       536       451       572  
          9,893       9,474       10,109       9,868       9,768  
    Operating expenses, as reported     12,881       13,267       13,215       13,242       12,543  
    Pre-provision net loss, as adjusted   $ (2,988 )   $ (3,793 )   $ (3,106 )   $ (3,374 )   $ (2,775 )
    Efficiency ratio     130.2 %     140.0 %     130.7 %     134.2 %     128.4 %
                         
    Core deposits:                    
    Total deposits   $ 1,343,320     $ 1,318,670     $ 1,311,156     $ 1,291,184     $ 1,244,904  
    Less: time deposits     707,339       701,262       671,478       642,372       596,624  
    Core deposits   $ 635,981     $ 617,408     $ 639,678     $ 648,812     $ 648,280  
    Core deposits to total deposits     47.3 %     46.8 %     48.8 %     50.2 %     52.1 %
                         
    Total assets   $ 2,060,683     $ 2,055,093     $ 2,045,452     $ 2,027,787     $ 2,044,963  
    Less: intangible assets     244       300       386       473       557  
    Tangible assets   $ 2,060,439     $ 2,054,793     $ 2,045,066     $ 2,027,314     $ 2,044,406  
                         
    Tangible equity:                    
    Shareholders’ equity   $ 332,198     $ 339,299     $ 345,597     $ 350,156     $ 355,640  
    Less: intangible assets     244       300       386       473       557  
    Tangible equity   $ 331,954     $ 338,999     $ 345,211     $ 349,683     $ 355,083  
                         
    Tangible equity to tangible assets     16.11 %     16.50 %     16.88 %     17.25 %     17.37 %
                         
    Tangible book value per share:                    
    Tangible equity   $ 331,954     $ 338,999     $ 345,211     $ 349,683     $ 355,083  
    Shares outstanding     22,522,626       22,990,908       23,505,357       23,958,888       24,509,950  
    Tangible book value per share   $ 14.74     $ 14.74     $ 14.69     $ 14.60     $ 14.49  

    The MIL Network

  • MIL-OSI Russia: Dmitry Patrushev and Algerian President Abdelmadjid Tebboune discussed bilateral cooperation

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Deputy Prime Minister of Russia Dmitry Patrushev held talks with President of the People’s Democratic Republic of Algeria Abdelmadjid Tebboune as part of a working visit. Dmitry Patrushev conveyed best wishes from Russian President Vladimir Putin to the head of state.

    “We highly value the strategic nature of relations between our countries. This is evidenced, among other things, by the closeness of positions on most points of the international and regional agenda. And we are determined to maintain close coordination between our countries,” said Dmitry Patrushev.

    At the meeting, issues of cooperation in the financial and banking sectors, industry, energy and agriculture were discussed.

    As part of the working visit, a meeting of the Mixed Intergovernmental Russian-Algerian Commission on Trade, Economic, Scientific and Technical Cooperation will also be held.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI United Nations: Myanmar on the brink as conflict fuels hunger

    Source: World Food Programme

    YANGON – Hunger has reached alarming levels in Myanmar with the situation set to worsen in 2025, the United Nations World Food Programme (WFP) warned today. A staggering 15 million people are expected to face hunger in 2025, up from 13.3 million last year.

    Those living in active conflict areas, particularly in Chin, Kachin and Rakhine states, as well as Sagaing Region, are experiencing the highest levels of food insecurity in the country.  Almost 20 million people – 1 in 3 – will need humanitarian assistance this year, according to the Myanmar Humanitarian Needs and Response Plan.

    “Growing conflict across the country, access restrictions, a crumbling economy and successive weather-related crises are driving record levels of hunger,” said Michael Dunford, WFP’s Representative and Country Director. 

    More than 3.5 million people are displaced in Myanmar due to armed conflict and violence,  a number projected to increase to 4.5 million in 2025 as conflict takes root and spreads to new areas. 

    Food is the biggest need for displaced people but spiraling costs and rapid inflation have made it unaffordable for many. The cost of basic staples – including rice, beans, oil and salt – has increased by 30 percent in the past year. 

    “Food prices in Myanmar continue to rise each and every month. Even if some food is available in local markets, people simply don’t have the resources to buy the basics, which means they are eating less and going hungry,” said Dunford. 

    The rapid escalation in humanitarian and food security needs in Myanmar has been overshadowed by international political turmoil and a surge in global crises, which have drawn public attention away from Myanmar.

    “The world cannot afford to overlook Myanmar’s escalating crisis. Without immediate and increased international support, hundreds of thousands more will be pushed to the brink,” said Dunford. 

    WFP aims to reach at least 1.6 million people in Myanmar with life-saving food, nutrition, and resilience-building support in 2025. WFP is engaging with all parties to the conflict and expanding partnerships with local organizations to ensure its life-saving assistance effectively reaches those who depend on WFP for vital support. 

    #                 #                   #

    The United Nations World Food Programme is the world’s largest humanitarian organization saving lives in emergencies and using food assistance to build a pathway to peace, stability and prosperity for people recovering from conflict, disasters and the impact of climate change.

    Follow us on X, formerly Twitter, via @wfp_media, @wfp_asiapacific

    MIL OSI United Nations News

  • MIL-OSI United Kingdom: Chancellor vows to go further and faster to kickstart economic growth

    Source: United Kingdom – Executive Government & Departments

    Chancellor of the Exchequer Rachel Reeves spoke at Siemens Healthineers in Oxfordshire on 29 January 2025.

    Thank you everyone. 

    It’s fantastic to be here at Siemens at this amazing facility.  

    Today, I want to talk about economic growth. 

    Why it matters.  

    How we achieve it.  

    And what we are going to do further and faster to deliver it. 

    Before we came into office… 

    … the Prime Minister and I have said loud and clear:  

    Economic growth is the number one mission of this government.  

    Without growth, we cannot cut hospital waiting lists or put more police on the streets.  

    Without growth, we cannot meet our climate goals… 

    … or give the next generation the opportunities that they need to thrive. 

    But most of all… 

    … without economic growth… 

    … we cannot improve the lives of ordinary working people.  

    Because growth isn’t simply about lines on a graph. 

    It’s about the pounds in people’s pockets. 

    The vibrancy of our high streets. 

    And the thriving businesses that create wealth, jobs and new opportunities for us, for our children, and grandchildren.  

    We will have succeeded in our mission when working people are better off. 

    I know that the cost of living crisis is still very real for many families across Britain.  

    The sky high inflation and interest rates of the past few years have left a deep mark… 

    … with too many people still making sacrifices to pay the bills and to pay their mortgages.   

    But we have begun to turn this around.  

    Everything I see as I travel around the country gives me more belief in Britain. 

    And more optimism about our future. 

    Because we as a country have huge potential.  

    A country of strong communities, with small and local businesses at their heart.  

    We are at the forefront of some of the most exciting developments in the world… 

    … like artificial intelligence and life sciences…  

    … with great companies like DeepMind, AstraZeneca, Rolls Royce… and of course Siemens…  

    … delivering jobs and investment across Britain. 

    We have fundamental strengths – in our history, in our language, and in our legal system – to compete in a global economy.  

    But for too long, that potential has been held back.  

    For too long, we have accepted low expectations and accepted decline. 

    We no longer have to do that.  

    We can do so much better. 

    Low growth is not our destiny.  

    But growth will not come without a fight.  

    Without a government willing to take the right decisions now to change our country’s future for the better. 

    That’s what our Plan for Change is all about. 

    That is what drives me as Chancellor.  

    In my Mais lecture in March last year, I set out my approach to achieving economic growth… 

    … and identified the fundamental barriers to realising our full potential.  

    The productive capacity of the UK economy has become far too weak.  

    Productivity, the driver of living standards…   

    …has grown more slowly here than in countries like Germany and the US.  

    The supply side of our economy has suffered due to chronic underinvestment… 

    … and stifling and unpredictable regulation…  

    … not helped by the shocks we have faced in recent years. 

    [redacted political content]

    The strategy that I have consistently set out… 

    … is to grow the supply-side of our economy… 

    … recognising that first and foremost… 

    … it is businesses, investors and entrepreneurs who drive economic growth… 

    … a government that systematically removes the barriers that they face – one by one and has their back 

    This strategy has three essential elements: 

    First, stability in our politics, our public finances and our economy – the basic condition for secure economic growth. 

    Second, reform – reform which makes it easier for businesses to trade, to raise finance and to build.  

    And third, investment, the lifeblood of economic growth. 

    Let me explain each of those in turn.  

    Stability – the first line of our manifesto was a promise to bring stability to the public finances.  

    It is the rock upon which everything else is built. 

    And it is the essential foundation of our Plan for Change.  

    Because economic stability is the precondition for economic growth. 

    That’s why the first piece of legislation that we passed as a government was the Budget Responsibility Act… 

    … so never again will we see our independent forecaster sidelined.

    [redacted political content]

    At my first Budget in October… 

    … it was my duty as Chancellor… 

    … to fix the foundations of our economy, and repair the public finances that we inherited. 

    To restore stability and create the conditions for growth and investment.  

    I set out new fiscal rules which are non-negotiable, and will always be met. 

    We began to rebuild our NHS and our schools – the start of a programme of public service reform.  

    I capped the rate of corporation tax – and I extended our generous capital allowances for the duration of this parliament – as the CBI and the BCC have long called for.  

    And I protected working people after a cost of living crisis… 

    … by freezing fuel duty… 

    … and with no increases in their National Insurance, Income Tax or VAT. 

    But taking the right decisions and the responsible decisions does not always mean taking the easy decisions. 

    The increase in Employers’ National Insurance contributions has consequences on business and beyond.   

    I said that up front in my Budget speech. 

    I accept that there are costs to responsibility. 

    But the costs of irresponsibility would have been far higher. 

    Those who oppose my Budget know that too. 

    That is why, since October, I have seen no alternative put forward [redacted political content].

    No alternatives to deal with the challenges we face.  

    No alternatives to restoring economic stability… 

    … and therefore no plan for driving economic growth. 

    Alongside stability, we need to drive forward the reform which makes investment more likely… 

    … by removing the constraints on the supply side of our economy… 

    … making it easier for businesses to trade… 

    … to raise finance… 

    … and to build.  

    Let me first address our approach to trade.  

    We stand at a moment of global change.  

    In that context, we should be guided by one clear principle above all.  

    To act in the national interest… 

    … for our economy… 

    … for our businesses… 

    … and for the British people. 

    That means building on our special relationship with the United States under President Trump. 

    The Prime Minister discussed the vital importance of growth with the President last weekend…  

    … and I look forward to working with the new Treasury Secretary, Scott Bessent… 

    … to deepen our economic relationship in the months and the years ahead. 

    Acting in our national interest also means resetting our relationship with the EU – our nearest and our largest trading partner – to drive growth and support business.  

    We are pragmatic about the challenges that we have inherited from the last government’s failed Brexit deal.  

    But we are also ambitious in our goals.  

    [redacted political content]

    … we will prioritise proposals that are consistent with our manifesto commitments… 

    … and which contribute to British growth and British prosperity… 

    … because that is what the national interest demands.  

    Our approach to trade also means building stronger relationships with fast-growing economies all around the world. 

    That is why I led a delegation to China for the first Economic and Financial Dialogue since 2019… 

    … alongside world-leading financial service businesses, including HSBC, Standard Chartered and Schroders…  

    … unlocking £600 million of tangible benefits for the UK economy. 

    And I am pleased to confirm that the Business and Trade Secretary will shortly visit India … 

    … to restart talks on the free trade agreement and bilateral investment treaty [redacted political content].  

    Our businesses can only realise these opportunities if they can recruit the skilled staff that they need. 

    So we are reforming our employment system to create a national jobs and careers service. 

    We have created Skills England to meet the skills of the next decade in sectors like construction and engineering.  

    And we will deliver fundamental reform of our welfare system.  

    That includes looking at areas that have been ducked for too long… 

    … like the rising cost of health and disability benefits… 

    … and the Secretary of State for Work and Pensions will set out our plans to address this ahead of the Spring Statement.  

    Next, the Immigration White Paper, that will bring forward concrete proposals to bring the overall levels of net migration down. 

    But we know that the UK is in an international competition for talent in vital growth sectors.    

    That is why last week, I set out plans for attracting global talent. 

    We will look at the visa routes for very highly skilled people…  

    … so the best people in the world choose the UK to live, work and create wealth… 

    … bringing jobs and investment to Britain. 

    To help businesses access the finance and support they need to grow…  

    … we have delivered significant reforms to provide greater flexibility for firms and founders to raise finance on UK capital markets, by rewriting the UK’s listing rules.  

    In my Mansion House speech, I announced a series of reforms to our pensions system…  

    … including the creation of larger, consolidated funds… 

    … which have much greater capacity to invest in high growth British companies at the scale that we need them to.  

    The consultation on these reforms is already complete and the final report will be published in the Spring. 

    Yesterday we confirmed that we have plans to go further, whilst always protecting the important role that pension funds play in the gilt market. 

    We will introduce new flexibilities for well-funded Defined Benefit schemes… 

    … to release surplus funds where it is safe to do so… 

    … generating even more investment into some of our fastest growing industries. 

    I know too that businesses are held back by a complex and unpredictable regulatory system… 

    … and that is a drag on investment and innovation. 

    We have already provided new growth-focused remits to our financial services regulators… 

    … we have announced a new interim Chair of the Competition and Markets Authority…  

    … and we have established the Regulatory Innovation Office, with an initial focus on synthetic biology, space, AI, and connected and autonomous vehicles.  

    But we need to go further and we need to go faster.  

    So earlier this month, I met the Heads of some of our largest regulators. 

    They have already provided a range of options to drive growth in their sectors… 

    … and proposals for how they can be more agile and responsive to businesses… 

    … and we will publish that final action plan in March to make regulation work much better for our economy. 

    To get Britain building again… 

    … we have delivered the most significant reforms to our planning system in a generation.  

    I have been genuinely shocked about how slow our planning system is. 

    By how long it takes to get things done.  

    Take the decision to build a solar farm in Cambridgeshire – a decision the Energy Secretary took only a few weeks into the job in July… 

    [redacted political content]

    The Deputy Prime Minister has already driven significant progress across government in addressing these issues.   

    My colleagues have determined 13 major planning decisions in just six months… 

    … including for airports, data centres and major housing developments.   

    We have significantly raised housing targets across our country and made them mandatory, so that we can build one-and-a-half million homes in this parliament.  

    We have reformed decades-old “green belt” policies, making it easier to build on the “grey belt” land around our major cities. 

    And we have opened up our planning system to build new infrastructure – like onshore wind farms or data centres driving the AI revolution. 

    Having listened closely to calls from business groups like the Institute of Directors… 

    … and businesses across our economy about the need to speed up infrastructure delivery… 

    … including Mace, Skanska and Arup who are here today… 

    … and members of our British Infrastructure Taskforce like Lloyds, Blackrock and Phoenix… 

    … we have now set out plans to go even further. 

    Last week we confirmed our priorities for the Planning and Infrastructure Bill … 

    … to rapidly streamline the process for determining applications… 

    … to make the consultation process far less burdensome… 

    … and to fundamentally reform our approach to environmental regulation. 

    The problems in our economy… 

    … the lack of bold reform that we have seen over decades… 

    … can be summed up by a £100 million bat tunnel built for HS2… 

    … the type of decision that has made delivering major infrastructure in our country far too expensive and far too slow. 

    So we are reducing the environmental requirements placed on developers when they pay into the nature restoration fund that we have created… 

    …so they can focus on getting things built, and stop worrying about bats and newts.  

    And to build our new infrastructure like nuclear power plants, trainlines and windfarms more quickly… 

    … we are changing the rules to stop blockers getting in the way of development… 

    … through excessive use of Judicial Review. 

    This Bill, the Planning and Infrastructure Bill, is a priority for this government. 

    It will be introduced in the Spring… 

    … and we will work tirelessly in parliament to ensure its smooth, and speedy and rapid delivery.  

    By providing a foundation of economic stability… 

    … and by delivering the reforms needed to make it easier for businesses to succeed and grow… 

    … we will create the right conditions to increase investment in our economy – the final key element of our strategy. 

    Investment and innovation go hand in hand.  

    I want to see the sounds and the sights of the future arriving.    

    Delivered by amazing businesses like Wayve and Oxford Nanopore. 

    They are the future. 

    And Britain should be the best place in the world to be an entrepreneur. 

    That is why we protected funding for research and development… 

    … and it is why one of the first decisions I made as Chancellor… 

    … was to extend the Enterprise Investment Scheme and the Venture Capital Trust schemes for a further 10 years… 

    … to get more investment into new companies, driving their innovation and growth.  

    I am determined to make Britain the best place in the world to invest.  

    That was my message in Davos last week.  

    That ambition demands action. 

    The International Investment Summit that we hosted in October delivered £63 billion of investment right across our country… 

    … from Iberdrola doubling its investment in clean energy in places like Suffolk… 

    … Blackstone investing £10 billion in a data centre in Northumberland… 

    … and Eren Holdings investing £1 billion in advanced manufacturing in North Wales.  

    While the lifeblood of growth is business investment, a strategic state has a crucial role to play. 

    That is why we established the National Wealth Fund… 

    … to create that partnership between business, private investors and government to invest in the industries of the future…  

    … like clean energy. 

    Today I can announce two further investments by the National Wealth Fund. 

    First, a £65 million investment for Connected Kerb, to expand their electric vehicle charging network across the UK. 

    And second, a £28 million equity investment in Cornish Metals… 

    … providing the raw materials to be used in solar panels, wind turbines and electric vehicles… 

    … supporting growth and jobs in the South-West of England.  

    There is no trade-off between economic growth and net zero. 

    Quite the opposite. 

    Net zero is the industrial opportunity of the 21st century, and Britain must lead the way. 

    That is why we will publish a refreshed Carbon Budget Delivery Plan later this year, which alongside the Spending Review, will set out our plans to deliver Carbon Budget 6. 

    Today, I can also announce that we are removing barriers to deliver 16 gigawatts of offshore wind…   

    … by designating new Marine Protected Areas to enable the development of this technology in areas like East Anglia and Yorkshire… 

    … crowding in up to £30 billion of investment in homegrown clean power. 

    And there’s more. 

    Our industrial and manufacturing base, brilliantly represented by Make UK, have been banging their heads against the wall for years at the lack of a proper industrial strategy from government. 

    That is why we have launched our modern industrial strategy… 

    … to drive investment into the industries that will define our success in the years ahead. 

    We have already provided funding to unlock investment in sectors like aerospace, automotives and life sciences… 

    … and we have set out reforms to boost financial services, the AI sector and creative industries. 

    We are not wasting any time, and we will move forward with the next stages of the Industrial Strategy ahead of its publication in the Spring.  

    We will work with the private sector to deliver the infrastructure that our country desperately needs.  

    This includes the Lower Thames Crossing, which will improve connectivity at Port of Tilbury and Dover, London Gateway and Medway… 

    … alleviating severe congestion… 

    … as goods destined for export come from the North, and the Midlands and across the country to markets overseas.   

    To drive growth and deliver value for money for taxpayers, we are exploring options to privately finance this important project.  

    And we have changed course on public investment, too… 

    … with a new Investment Rule to ensure that we don’t just count the costs of investment – we count the benefits too.    

    We are now investing 2.6% of GDP on average over the next five years, compared to 1.9% planned by the previous government..  

    … delivering an additional £100 billion of growth-enhancing capital spending… 

    … which catalyses private sector investment… 

    … in more housing… 

    … better transport links… 

    … and clean energy.  

    These are significant steps in just six months… 

    … and we are seeing some encouraging signs in the British economy. 

    The IMF have upgraded our growth prospects for 2025… 

    … the only G7 country outside the US to see this happen.  

    This gives us the fastest growth of any major European economy this year.  

    And a global survey of CEOs by PWC, has shown Britain is now the second most attractive country in the world for businesses looking to invest.  

    The first time the UK has been in that position for 28 years.  

    This is all welcome news.  

    But there is still more that we can and will do.  

    I am not satisfied with the position we are in. 

    While we have huge amounts of potential, the structural problems in our economy run deep. 

    And the low growth of the last 14 years cannot just be turned around overnight. 

    This has to be our focus for the duration of the parliament.  

    Because the situation demands us to do more. 

    And today I will go further and faster in kickstarting economic growth. 

    Our mission to grow our economy is about raising living standards in every single part of the United Kingdom.  

    Manchester is home to the UK’s fastest growing tech sector.  

    Leeds is one of the largest financial services centres outside of London.  

    These great northern cities have so much potential and promise… 

    …which our brilliant metro mayors, Andy Burnham and Tracy Brabin, are working hard to realise…  

    … just like our other metro mayors are doing to deliver new opportunities in their areas.  

    And there is so much more that government can do to support our city regions.    

    To achieve this requires greater focus on two key areas: infrastructure and investment.  

    If we can improve connectivity between towns and cities across the North of England, we can unlock their true growth potential… 

    … by making it easier for people to live, travel and work across the area.  

    At the Budget, I set out funding for the Transpennine Route Upgrade… 

    … a multi-billion-pound programme of improvements that will connect towns and cities from Manchester to York via Stalybridge, Leeds and Huddersfield. 

    We are delivering railway schemes to improve journeys for people across the North… 

    … including upgrades at Bradford Forster Square and by electrifying the Wigan-Bolton line. 

    We have committed to supporting the delivery of a new mass transit system in West Yorkshire.  

    And in Spring, we will publish the Spending Review and a 10-Year Infrastructure Strategy… 

    … which will set out further detail of our plans for infrastructure right across the UK. 

    New transport infrastructure can also act as a catalyst for new housing. 

    We have already seen the benefits that unlocking untapped land around stations can deliver in places like Stockport… 

    … where joint work spearheaded by Andy Burnham and council leaders has delivered new housing and wider commercial opportunities. 

    We will introduce a new approach to planning decisions on land around stations, changing the default answer to yes. 

    We are working with the devolved governments to ensure the benefits of growth can be felt across Scotland, Wales and Northern Ireland… 

    … including by partnering with them on the Industrial Strategy to support their considerable sectoral strengths. 

    And in December, I met with Metro Mayors from across England.  

    They told me that more opportunities for investment are vital if their local economies are to grow in the years ahead. 

    We are listening closely to them. 

    As the Metro Mayor of Liverpool, Steve Rotherham, has called for… 

    … we will review the Green Book and how it is being used to provide objective, transparent advice on public investment across the country, including outside London and the Southeast.  

    This means that investment in all regions is given a fair hearing by the Treasury that I lead. 

    The Office for Investment is going to be working hand in hand with local areas… 

    … to develop a commercially attractive pipeline of investment opportunities for a global audience… 

    … starting with the Liverpool City Region and the North East Combined Authority, led by Kim McGuinness. 

    The National Wealth Fund is establishing strategic partnerships to provide deeper, more focused support for city regions, starting in Glasgow, West Yorkshire, the West Midlands, and Greater Manchester. 

    We are supporting key investment opportunities across the UK. 

    The government is backing Andy Burnham’s plans for the redevelopment of Old Trafford, which promises to create new housing and commercial development around a new stadium… 

    … to drive regeneration and growth in the area. 

    We are moving forward with the Wrexham and Flintshire Investment Zone… 

    … focusing on the area’s strengths in advanced manufacturing… 

    … backed by major businesses like Airbus and JCB… 

    … to leverage £1 billion of private investment in the next ten years… 

    … creating up to 6,000 jobs. 

    [redacted political content]

    So I can announce today that we will work with Doncaster Council and the Mayor of South Yorkshire, Oliver Coppard… 

    … to support their efforts to recreate South Yorkshire Airport City as a thriving regional airport.  

    And finally, I am pleased to announce a partnership between Prologis and Manchester Airport Group in the East Midlands, where the Metro Mayor Claire Ward is doing an excellent job growing the local economy there. 

    Prologis and MAG will work together to build a new advanced manufacturing and logistics park at East Midlands Airport … 

    … unlocking up to £1 billion of investment and 2,000 jobs at the site… 

    … a major investment from a global business into our country… 

    … representing a huge vote of confidence in the East Midlands and in the UK. 

    This is just the start of our work to get more investment into every nation and region of Britain. 

    Next, I want to set out further detail for plans for the area we are in today.  

    Oxford and Cambridge offer huge potential for our nation’s growth prospects. 

    Only 66 miles apart… 

    … these cities are home to two of the best universities in the world… 

    … and the area is a hub for globally renowned science and technology firms. 

    This area has the potential to be Europe’s Silicon Valley.  

    To make that a reality, we need a systematic approach to attract businesses to come here and to grow here. 

    At the moment, it takes over two and a half hours to travel between Oxford and Cambridge by train.  

    There is no way to commute directly by rail from places like Bedford and Milton Keynes to Cambridge. 

    And there is a lack of affordable housing right across the region.  

    In other words, the demand is there… 

    … but there are far too many supply side constraints on economic growth here.  

    We are going to fix that.  

    The Ox Cam arc was initially launched in 2003 – over 20 years ago.  

    [redacted political content]

    We are not prepared to miss out on the opportunities here any longer.  

    So working with the Deputy Prime Minister… 

    … who is already driving forward vital work in the region…  

    … we are going further and faster to unlock the potential of the Oxford-Cambridge Growth Corridor.   

    First, we are funding the transport links needed to make the Oxford Cambridge growth corridor a success… 

    … including East-West Rail, with new services between Oxford and Milton Keynes starting this year… 

    … and road upgrades to reduce journey times between Milton Keynes and Cambridge. 

    East West Rail will also support vibrant new and expanded communities along the route. 

    We have already received proposals for New Towns along the new railway… 

    … with 18 submissions for sizeable new developments. 

    At Tempsford – the nexus of the East Coast Mainline, the A1 and East West Rail… 

    …we will move quicker to deliver a mainline station, meaning journey times to London of under an hour…  

    … and to Cambridge in under 30 minutes when East West Rail is operational. 

     Second, we are ensuring that the area has the right infrastructure and public services in place to support the growth corridor as it expands. 

    A new Cambridge Cancer Research Hospital is being prioritised for investment as part of wave 1 of the New Hospital Programme.  

    Water infrastructure has also been a major hindrance to development. 

    So we have now agreed water resources management plans, unlocking £7.9 billion of investment in the next 5 years…  

    …including plans for the new Fens Reservoir serving Cambridge and the South East Strategic Reservoir near Oxford.  

    And I can confirm today that the Environment Agency have now lifted their objections to new development in Cambridge, following this government’s intervention to address water scarcity… 

    … which means 4,500 additional homes, new schools, and new office, retail and laboratory space can be built.  

    Third, I am delighted that Cambridge University have come forward with plans for a new flagship innovation hub at the centre of Cambridge… 

    … to attract global investment and foster a community that catalyses innovation, as other cities around the world like Boston and Paris have done.  

    Just yesterday, Moderna completed the build for their new vaccine production and R&D site in Harwell, right here in Oxfordshire, alongside a commitment to invest a further £1 billion in the UK.  

    And we are creating a new AI Growth Zone in Culham to speed up planning approvals for the rapid build-out of data centres.  

    And finally, to take this project forward at real pace… 

    … and catalyse private sector investment into the region… 

    … I am pleased to announce that the Deputy Prime Minister and I have asked Lord Patrick Vallance to be the champion for the Oxford Cambridge Growth Corridor.  

    Lord Vallance has extensive experience across the sciences, academia, and government. 

    He will work with local leaders and with the Housing and Planning Minister to deliver this exciting project… 

    … including with Peter Freeman, who is already doing excellent work in Cambridge… 

    … and a new Growth Commission for Oxford, which will help to accelerate growth in the city and its surrounding area.   

    This is the government’s modern Industrial Strategy in action. 

    With central government, local leaders and business working together… 

    … the Oxford and Cambridge Growth Corridor could add up to £78 billion to the UK economy by 2035 … 

    … driving investment, innovation and growth. 

    Finally, I come to the decision that perhaps more than any other… 

    … has been delayed… 

    … has been avoided… 

    … has been ducked. 

    The question of whether to give Heathrow … 

    … our only hub airport… 

    … a third runway… 

    … has run on for decades. 

    The last full length runway in Britain was built in the 1940s. 

    No progress in eighty years.  

    Why is this so damaging?  

    It’s because Heathrow is at the heart of the UK’s openness as a country.   

    It connects us to emerging markets all over the world, opening up new opportunities for growth. 

    Around three-quarters of all long-haul flights in the UK go from Heathrow. 

    Over 60% of UK air freight comes through Heathrow. 

    And about 15 million business travellers used Heathrow in 2023. 

    But for decades, its growth has been constrained.  

    Successive studies have shown that this really matters for our economy. 

    According to the most recent study from Frontier Economics, a third runway could increase potential GDP by 0.43% by 2050. 

    Over half – 60% of that boost, would go to areas outside London and the South-East. 

    … increasing trade opportunities for products like Scotch whiskey and Scottish salmon – already two of the biggest British exports out of Heathrow.  

    And a third runway could create over 100,000 jobs. 

    For international investors, persistent delays have cast doubt about our seriousness towards improving our economic prospects. 

    Business groups, like the CBI, the Federation of Small Businesses and the Chambers of Commerce right across the UK… 

    …as well trade unions like GMB and Unite are clear… 

    … a third runway is badly needed. 

    In 2018, the previous government steered its Airports National Policy Statement through parliament.  

    But no action was taken. 

    It simply sat on the shelf. 

    We are taking a totally different approach to airport expansion.  

    This Government has already given its support to expansion at City Airport and at Stansted.  

    And there are two live decisions on Luton and Gatwick which will be made by the Transport Secretary shortly.  

    But as our only hub airport, Heathrow is in a unique position – and we cannot duck the decision any longer.   

    I have always been clear that a third runway at Heathrow would unlock further growth… 

    … boost investment… 

    … increase exports… 

    … and make the UK more open and more connected.   

    And now, the case is stronger than ever… 

    … because our reforms to the economy… 

    … like speeding up the planning system… 

    … and our plans for modernised UK airspace…  

    … mean the delivery of this project is set up for success.  

    So I can confirm today that this Government supports a third runway at Heathrow… 

    … and is inviting proposals to be brought forward by the summer.  

    We will then take forward a full assessment through the Airport National Policy Statement. 

    That will ensure that the project is value for money – and our clear expectation is that any associated surface transport costs will be financed through private funding. 

    And it will ensure that a third runway is delivered in line with our legal, environmental and climate obligations.  

    Heathrow themselves are clear that their proposal for expansion will meet strict rules on noise, air quality and carbon emissions. 

    And we are already making great strides in transitioning to cleaner and greener aviation.  

    Sustainable Aviation Fuel reduces CO2 emissions compared to fossil fuel by around 70%. 

    At the start of this month, the Sustainable Aviation Fuel mandate became law.  

    And today I can announce that we are investing £63 million into the Advanced Fuels Fund over the next year… 

    … and we have today set out the details of how we will deliver a Revenue Certainty Mechanism to encourage investment into this growing industry. 

    These measures will encourage more investors to back production in the UK, bringing good, high-skilled jobs to areas like Teesside… 

    … demonstrating that investment in the right technology can help us deliver both our growth and our clean energy missions. 

    Now is the moment to grasp the opportunity in front of us. 

    By backing a third runway at Heathrow, we can make Britain the world’s best connected place to do business. 

    That is what it takes to make bold decisions in the national interest. 

    That is what I mean by going further and faster to kickstart economic growth. 

    The work of change has begun.  

    We have already made great progress.  

    But I am not satisfied.  

    And I know that there is more to be done.  

    We must go further and faster if we are to build a brighter future.  

    The prize on offer is immense.  

    The next generation with more opportunities than the last. 

    An engineer in Teesside, working in some of the most exciting industries of the future – from carbon capture to sustainable aviation fuel. 

    A scientist in Milton Keynes or Bedford, working in our life sciences industry to solve some of the most important medical challenges in the world.  

    A small business owner in Scotland, knowing that they can expand and export to new markets right across the globe.   

    Wealth created, and wealth shared, in every part of Britain.    

    This is a Government on the side of working people. 

    Taking the right decisions to secure their future, to secure our future. 

    Stepping up to the challenges we face. 

    Ending the era of low expectations. 

    Putting Britain on a different path. 

    Delivering for the British people. 

    And I am determined, this Government is determined, to do just that.  

    Thank you.

    Updates to this page

    Published 29 January 2025

    MIL OSI United Kingdom

  • MIL-OSI: Asset Entities Passes Milestone of 9,000 Members on its TikTok Shop Creator Discord Community

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, Jan. 29, 2025 (GLOBE NEWSWIRE) — Asset Entities Inc. (“Asset Entities” or the “Company”) (NASDAQ: ASST), a provider of digital marketing and content delivery services across Discord and other social media platforms, and a Ternary Payment Platform company, today announced it has passed a total of 9,000 Members on its TikTok Shop Creator Discord community within their ecosystem.

    Asset Entities announced that it had become an official TikTok Shop partner on December 11, 2024. The partnership with TikTok Shop brought Asset Entities to the forefront in signing up creators, executing campaigns with brands, connecting creators with products to sell, and utilizing the TikTok platform. Just over 30 days after announcing this pivotal partnership with TikTok Shop, the Company has now exceeded the milestone of 9,000 members on its creator community who are learning how to use TikTok Shop through the Company’s platform. This incredible achievement allows Asset Entities to collaborate with more brands simultaneously, while also increasing the GMV (Gross Merchandise Value) for brands. The TikTok Shop creators earn commissions by producing UGC content featuring products, and brands that benefit from increased revenue, as more content is shared and sales are driven by content. As a TAP (or TikTok Affiliate), Asset Entities receives a fixed negotiated commission on each sale the creators make for the brands. Increasing the TikTok shop creator community has a strong correlation with higher GMV potential for brands, thus bringing more potential revenue to the Company.

    We are excited to highlight one of our members, Kimberly, who generated over $195,000 in GMV to the brands for which she produces content, earning a commission payout of over $35,000. This is just one creator of the more than 9,000 members in our ecosystem utilizing the power of TikTok Shop and the education provided in the Company’s digital community. Kimberly works with many of the brands that are connected with Asset Entities, and we are excited for more creators in our ecosystem to see similar success.

    Image: Analytic Screenshot sent in by Kimberly within the discord community teaching our members how to grow and make money using TikTok Shop. Source: Asset Entities

    “As more brands start to realize the importance of UGC content, Asset Entities has positioned itself with its recent acquisition and through becoming an official partner of TikTok Shop to seek out additional brands for our ecosystem to increase their sales on the ever-growing market on TikTok. We are excited to see the growth in our TikTok creator numbers as we expand marketing efforts,” commented Asset Entities’ Chief Executive Officer, Arshia Sarkhani.

    To learn about Asset Entities, please go to www.assetentities.com. To learn about the Ternary payment platform, please go to www.ternarydev.com. To learn about Asset Entities 360 suite of discord services, go to https://www.ae360ddm.com/ and https://discord.gg/ae360ddm.

    About Asset Entities, Inc. 

    Asset Entities Inc. is a technology company providing social media marketing, management, and content delivery across Discord, TikTok, Instagram, X (formerly Twitter), YouTube, and other social media platforms. Asset Entities is believed to be the first publicly traded Company based on the Discord platform, where it hosts some of Discord’s largest social community-based education and entertainment servers. The Company’s AE.360.DDM suite of services is believed to be the first of its kind for the Design, Development, and Management of Discord community servers. Asset Entities’ initial AE.360.DDM customers have included businesses and celebrities. The Company also has its Ternary payment platform that is a Stripe-verified partner and CRM for Discord communities. The Company’s Social Influencer Network (SiN) service offers white-label marketing, content creation, content management, TikTok promotions, and TikTok consulting to clients in all industries and markets. The Company’s SiN influencers can increase the social media reach of client Discord servers and drives traffic to their businesses. Learn more at assetentities.com, and follow the Company on X at $ASST and @assetentities.

    Important Cautions Regarding Forward-Looking Statements

    This press release contains forward-looking statements. In addition, from time to time, representatives of the Company may make forward-looking statements orally or in writing. These forward-looking statements are based on expectations and projections about future events, which are derived from the information currently available to the Company. Such forward-looking statements relate to future events or the Company’s future performance, including its financial performance and projections, growth in revenue and earnings, and business prospects and opportunities. Forward-looking statements can be identified by those statements that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors including those that are described in the section titled “Risk Factors” in the Company’s periodic reports which are filed with the Securities and Exchange Commission. These and other factors may cause the Company’s actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

    Company Contacts:

    Arshia Sarkhani, President and Chief Executive Officer
    Michael Gaubert, Executive Chairman
    Asset Entities Inc.
    Tel +1 (214) 459-3117 
    Email Contact

    Investor Contact:

    Skyline Corporate Communications Group, LLC
    Scott Powell, President
    1177 Avenue of the Americas, 5th Floor
    New York, NY 10036
    Office: (646) 893-5835
    Email: info@skylineccg.com

    A photo accompanying this announcement is available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/9dfd2c85-c5c2-4aea-840d-0bcdac04cecc

    The MIL Network

  • MIL-OSI: CALIFORNIA BANCORP REPORTS NET INCOME OF $16.8 MILLION FOR THE FOURTH QUARTER AND $5.4 MILLION FOR THE FULL YEAR OF 2024

    Source: GlobeNewswire (MIL-OSI)

    San Diego, Calif., Jan. 29, 2025 (GLOBE NEWSWIRE) — California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the fourth quarter and full year of 2024.

    The Company reported net income of $16.8 million, or $0.51 per diluted share, for the fourth quarter of 2024, compared to a net loss of $16.5 million, or $0.59 per diluted share for the third quarter of 2024, and net income of $4.4 million, or $0.24 per diluted share for the fourth quarter of 2023. The Company reported net income of $5.4 million, or $0.22 per diluted share, for the full year of 2024, compared to net income of $25.9 million, or $1.39 per diluted share for the full year of 2023.

    “I’m pleased to report our strong fourth quarter earnings of $16.8 million, the result of a full quarter of combined operations after our July 31, 2024, merger close,” said David Rainer, Executive Chairman of the Company and Bank. “We continue to derisk our consolidated balance sheet and are making significant headway in reducing our exposure in the Sponsor Finance portfolio. Additionally, we are rapidly reducing our reliance on brokered deposits, which despite the reduction of the high-yielding Sponsor Finance product, has allowed us to maintain a consistent, strong net interest margin. We are focused on building tangible book value, which increased to $11.71 in the fourth quarter, up $0.43 from the prior quarter, and up $0.79 in the five months since the merger close. While we are pleased to report these strong financial results, we, along with all our fellow Southern California residents, have been through a very difficult period due to the recent wildfires and we are working with all our constituents to assist them in any way we can.”

    “On behalf of the Company and the Bank, I want to express our condolences to all our neighbors, clients and employees that have been affected by the recent Southern California wildfires,” said Steven Shelton, CEO of the Company and the Bank. “You are in our thoughts and prayers and will remain so as we work to rebuild and recover going forward. Except for the one-day closure of one branch as a precautionary measure for the safety of our employees, I’m pleased to report there were no other disruptions to our operations and all other offices remained open. We are fortunate to report that the fires are expected to have a minimal impact on our loan portfolio, and we continue to focus on providing outstanding service to our combined client base throughout California, and on building shareholder value.”

    Fourth Quarter 2024 Highlights

    • Net income of $16.8 million or $0.51 diluted earnings per share for the fourth quarter; adjusted net income (non-GAAP1) was $17.2 million or $0.53 per share for the fourth quarter.
    • Net interest margin of 4.61%, compared with 4.43% in the prior quarter; average total loan yield of 6.84% compared with 6.79% in the prior quarter.
    • Reversal of provision for credit losses of $3.8 million for the fourth quarter, compared with a provision for credit losses of $23.0 million for the prior quarter, of which $21.3 million was due to the day one provision for credit losses on non-purchased credit deteriorated (“non-PCD”) loans and unfunded loan commitments related to the merger with California BanCorp (the “Merger”).
    • Return on average assets of 1.60%, compared with (1.82)% in the prior quarter.
    • Return on average common equity of 13.21%, compared with (15.28)% in the prior quarter.
    • Efficiency ratio (non-GAAP1) of 57.4% compared with 98.9% in the prior quarter; excluding Merger related expenses the efficiency ratio was 55.9%, compared with 60.5% in the prior quarter.
    • Tangible book value per common share (“TBV”) (non-GAAP1) of $11.71 at December 31, 2024, up $0.43 from $11.28 at September 30, 2024.
    • Total assets of $4.03 billion at December 31, 2024, compared with $4.36 billion at September 30, 2024.
    • Total loans, including loans held for sale of $3.16 billion at December 31, 2024, compared with $3.23 billion at September 30, 2024.
    • Nonperforming assets to total assets ratio of 0.76% at December 31, 2024, compared with 0.68% at September 30, 2024.
    • Allowance for credit losses (“ACL”) was 1.71% of total loans held for investment at December 31, 2024; allowance for loan losses (“ALL”) was 1.61% of total loans held for investment at December 31, 2024.
    • Total deposits of $3.40 billion at December 31, 2024, decreased $342.2 million or 9.1% compared with $3.74 billion at September 30, 2024.
    • Noninterest-bearing demand deposits of $1.26 billion at December 31, 2024, a decrease of $111.3 million or 8.1% from September 30, 2024; noninterest bearing deposits represented 37.0% of total deposits, compared with $1.37 billion, or 36.6% of total deposits at September 30, 2024.
    • Total brokered deposits of $121.1 million, a decrease of $101.5 million from September 30, 2024.
    • Cost of deposits was 1.87%, compared with 2.09% in the prior quarter.
    • Cost of funds was 1.99%, compared with 2.19% in the prior quarter.
    • The Company’s preliminary capital exceeds minimums required to be “well-capitalized, the highest regulatory capital category.

    Full Year 2024 Highlights

    • Merger closed on July 31, 2024, whereby predecessor California BanCorp (“CALB”) merged with and into the Company and California Bank of Commerce merged with and into the Bank. CALB had total loans of $1.43 billion, total assets of $1.91 billion, and total deposits of $1.64 billion. The Merger created a bank holding company with approximately $4.25 billion in assets and 14 branches across California, with approximately 300 employees serving our communities. Total aggregate consideration paid for the Merger was approximately $216.6 million and resulted in approximately $74.7 million of preliminary goodwill, subject to adjustment in accordance with ASC 805.
    • Net income of $5.4 million, down $20.5 million, or 79.0% from the prior year largely due to the after-tax one-time day one provision for credit losses related to non-PCD loans and unfunded loan commitments of $15.0 million and merger related expenses of $12.0 million; adjusted net income (non-GAAP1) was $32.4 million or $1.32 per share for the year.
    • Diluted earnings per share of $0.22, down $1.17, or 84.2% from the prior year.
    • Total loan interest income increased to $160.0 million, up $46.0 million or 40.4% from the prior year largely due to the Merger.
    • Net interest margin of 4.28% for 2024, compared with 4.33% in the prior year; average loan yield was 6.55%, up from 5.94% in the prior year.
    • Efficiency ratio (non-GAAP1) of 76.6%, compared to 61.3% in the prior year; excluding merger related expenses the efficiency ratio was 63.8%, compared with 61.3% in the prior year.
    • Provision for credit losses of $21.7 million, of which $21.3 million was due to the day one provision for credit losses on non-PCD loans and unfunded loan commitments in connection with the Merger, compared to $915 thousand for the year ended December 31, 2023.
    • Total assets of $4.03 billion, up $1.7 billion or 70.8% from December 31, 2023, largely due to the Merger.
    • Total loans, including loans held for sale, increased to $3.16 billion, up $1.2 billion from December 31, 2023, largely due to the Merger, with the fair value of the acquired loans totaling $1.36 billion.
    • Total deposits of $3.40 billion, up $1.46 billion from December 31, 2023, largely due to the $1.64 billion of deposits acquired in the Merger.
    • Noninterest-bearing demand deposits were $1.26 billion, representing 37.0% of total deposits, compared to $675.1 million, or 34.7% of total deposits at December 31, 2023.
    • Cost of deposits was 2.01%, up from 1.37% in the prior year.
    • Tangible book value per common share (“TBV”) (non-GAAP1) of $11.71 at December 31, 2024, down $1.85 from December 31, 2023.

    Fourth Quarter Operating Results

    Net Income

    Net income for the fourth quarter of 2024 was $16.8 million, or $0.51 per diluted share, compared with a net loss of $16.5 million, or a loss of $0.59 per diluted share in the third quarter of 2024. Our third quarter results were negatively impacted by a day one $15.0 million after-tax current expected credit losses (“CECL”)-related provision for credit losses on non-PCD loans and unfunded loan commitments related to the merger, or $0.54 loss per diluted share, and $10.6 million of after-tax merger expenses, or $0.38 loss per diluted share. Pre-tax, pre-provision income (non-GAAP1) for the fourth quarter was $19.4 million, an increase of $19.0 million from the prior quarter. Excluding the merger and related expenses, the adjusted pre-tax, pre-provision income (non-GAAP1) for the fourth quarter was $20.1 million, an increase of $5.0 million from the prior quarter. The net income and diluted earnings per share increases for all of the periods presented were largely driven by the Merger and the operating results since the closing date of the Merger.

    Net Interest Income and Net Interest Margin

    Net interest income for the fourth quarter of 2024 was $44.5 million, compared with $36.9 million in the prior quarter. The increase in net interest income was primarily due to an $8.4 million increase in total interest and dividend income, partially offset by an $832 thousand increase in total interest expense in the fourth quarter of 2024, as compared to the prior quarter. During the fourth quarter of 2024, loan interest income increased $7.3 million, of which $6.1 million was related to accretion income from the net purchase accounting discounts on acquired loans, total debt securities income increased $10 thousand, and interest and dividend income from other financial institutions increased $1.2 million. The increase in interest income was mainly due to reporting a full quarter of combined operations for the fourth quarter of 2024 and primarily driven by the mix of interest-earning assets added by the Merger and the impact of the accretion and amortization of fair value interest rate marks. Average total interest-earning assets increased $526.5 million in the fourth quarter of 2024, the result of a $401.3 million increase in average total loans, a $260.4 million increase in average deposits in other financial institutions and a $5.8 million increase in average restricted stock investments and other bank stock, partially offset by a $1.3 million decrease in average total debt securities and a $139.8 million decrease in average Fed funds sold/resale agreements. The increase in interest expense for the fourth quarter of 2024 was primarily due to a $466 thousand increase in interest expense on interest-bearing deposits, the result of a $217.9 million increase in average interest-bearing deposits, coupled with a $17.2 million increase in average subordinated debt, partially offset by a 22 basis point decrease in average interest-bearing deposit costs, and a $9 thousand decrease in interest expense on Federal Home Loan Bank (“FHLB”) borrowings, the result of a $611 thousand decrease in average FHLB borrowings in the fourth quarter of 2024.

    Net interest margin for the fourth quarter of 2024 was 4.61%, compared with 4.43% in the prior quarter. The increase was primarily related to a 20 basis point decrease in the cost of funds, partially offset by a one basis point decrease in the total interest-earning assets yield. The yield on total average interest-earning assets in the fourth quarter of 2024 was 6.48%, compared with 6.49% in the prior quarter. The yield on average total loans in the fourth quarter of 2024 was 6.84%, an increase of five basis points from 6.79% in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $6.1 million, increasing the yield on average total loans by 76 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $467 thousand, the combination of which increased the net interest margin by 58 basis points in the fourth quarter of 2024.

    Cost of funds for the fourth quarter of 2024 was 1.99%, a decrease of 20 basis points from 2.19% in the prior quarter. The decrease was primarily driven by a 22 basis point decrease in the cost of average interest-bearing deposits, and an increase in average noninterest-bearing deposits, partially offset by an increase of 26 basis points in the cost of total borrowings, which was driven primarily by the amortization expense of $559 thousand from the purchase accounting discounts on acquired subordinated debt which increased the cost on total borrowing by 320 basis points. Average noninterest-bearing demand deposits increased $251.7 million to $1.28 billion and represented 36.3% of total average deposits for the fourth quarter of 2024, compared with $1.03 billion and 33.6%, respectively, in the prior quarter; average interest-bearing deposits increased $217.9 million to $2.26 billion during the fourth quarter of 2024. The total cost of deposits in the fourth quarter of 2024 was 1.87%, a decrease of 22 basis points from 2.09% in the prior quarter. The cost of total interest-bearing deposits decreased primarily due to the Company’s deposit repricing strategy and the ongoing pay off of high cost brokered deposits and California State certificates of deposit in the fourth quarter of 2024.

    Average total borrowings increased $16.6 million to $69.4 million in the fourth quarter of 2024, primarily due to an increase of $17.2 million in average subordinated debt acquired in the Merger, partially offset by a decrease of $611 thousand in average FHLB borrowings during the fourth quarter of 2024. The average cost of total borrowings was 7.97% for the fourth quarter of 2024, up from 7.71% in the prior quarter.

    (Reversal of) Provision for Credit Losses

    The Company recorded a reversal of provision for credit losses of $3.8 million in the fourth quarter of 2024, compared to a provision for credit losses of $23.0 million in the prior quarter. The decrease was largely related to the third quarter provision for credit losses including the effects of the Merger, and the resulting one-time initial provision for credit losses on acquired non-PCD loans of $18.5 million and unfunded loan commitments of $2.7 million. Total net charge-offs were $154.0 thousand in the fourth quarter of 2024, which included $103 thousand from an acquired consumer solar loan portfolio and $51 thousand from a commercial real-estate loan. The provision for credit losses in the fourth quarter of 2024 included a $1.0 million reversal of provision for unfunded loan commitments related to the decrease in unfunded loan commitments during the fourth quarter of 2024, coupled with lower loss rates, offset by higher average funding rates used to estimate the allowance for credit losses on unfunded commitments. Total unfunded loan commitments decreased $108.6 million to $925.3 million at December 31, 2024, compared to $1.03 billion in unfunded loan commitments at September 30, 2024.

    The reversal of provision for credit losses for loans held for investment in the fourth quarter of 2024 was $2.9 million, a decrease of $22.6 million for the fourth quarter of 2024 from a provision for credit losses of $19.7 million in the prior quarter. The decrease was driven primarily by the third quarter amount including the one-time initial provision for credit losses on acquired non-PCD loans and decreases in legacy special mention loans and loans held for investment. Additionally, qualitative factors, coupled with changes in the portfolio mix and in the reasonable and supportable forecast, primarily related to the economic outlook for California, which were partially offset by an increase in legacy substandard accruing loans, were factors related to the decrease in the provision for credit losses. The Company’s management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment.

    Noninterest Income

    The Company recorded noninterest income of $1.0 million in the fourth quarter of 2024, a decrease of $170 thousand compared to $1.2 million in the third quarter of 2024. The Company reported a loss on sale of loans of $1.1 million, related to the sale of certain Sponsor Finance loans, in the fourth quarter of 2024, compared to a gain on sale of loans of $8 thousand in the prior quarter. There was no gain on SBA 7A loan sales in the third and fourth quarters of 2024. Bank owned life insurance income of $823 thousand in the fourth quarter of 2024 increased $425 thousand from the prior quarter. Service charges and fees on deposit accounts of $911 thousand in the fourth quarter of 2024 decreased $225 thousand from the prior quarter, related to the one-time waiver of analysis charges for certain deposit accounts in light of the core system conversion. Other charges and fees income increased to $208 thousand in the fourth quarter of 2024, compared to a loss of $450 thousand in the prior quarter, primarily related to a $614 thousand valuation allowance on other real estate owned (“OREO”) due to a decline in the fair value of the underlying property in the third quarter of 2024. No comparable valuation allowance on OREO was recorded in the fourth quarter of 2024.

    Noninterest Expense

    Total noninterest expense for the fourth quarter of 2024 was $26.1 million, a decrease of $11.6 million from total noninterest expense of $37.7 million in the prior quarter, which was largely due to the decrease in merger related expenses.

    Salaries and employee benefits increased $689 thousand during the quarter to $16.1 million. The increase in salaries and employee benefits was primarily related to the growth in headcount due to the Merger, partially offset by the third quarter amount including the one-time costs associated with non-continuing directors, executives and employees of $1.4 million. Merger and related expenses in connection with the Merger decreased $14.0 million during the quarter to $643 thousand. Data processing and communications of $2.0 million in the fourth quarter of 2024 increased by $424 thousand, due primarily to increases in transaction volume from both organic growth and the Merger. Intangible assets amortization of $1.1 million in the fourth quarter of 2024 increased by $373 thousand, due primarily to a full quarter of amortization of the core deposit intangible asset acquired in the Merger, compared with only two months of amortization of the asset in the prior quarter. Other expenses of $2.1 million in the fourth quarter of 2024 increased by $443 thousand, due primarily to higher loan related expenses, customer service related expenses, travel expenses and insurance expenses.

    Efficiency ratio (non-GAAP1) for the fourth quarter of 2024 was 57.4%, compared to 98.9% in the prior quarter. Excluding the merger and related expenses of $643 thousand and $14.6 million, the efficiency ratio (non-GAAP1) for the fourth and third quarters of 2024 would have been 55.9% and 60.5%, respectively.

    Income Tax

    In the fourth quarter of 2024, the Company’s income tax expense was $6.5 million, compared with a $6.1 million income tax benefit in the third quarter of 2024. The effective rate was 27.9% for the fourth quarter of 2024 and 26.9% for the third quarter of 2024. The increase in the effective tax rate for the fourth quarter of 2024 was primarily attributable to the impact of the non-tax deductible portion of the merger expenses and the vesting and exercise of equity awards combined with changes in the Company’s stock price over time, partially offset by the impact of the tax on the excess executive compensation.

    Balance Sheet

    Assets

    Total assets at December 31, 2024 were $4.03 billion, a decrease of $331.1 million or 7.6% from September 30, 2024. The decrease in total assets from the prior quarter was primarily related to a decrease in cash and cash equivalents of $226.3 million and a decrease in loans, including loans held for sale, of $77.1 million as compared to the prior quarter. These decreases primarily relate to the decreases in wholesale funding sources and the Sponsor Finance portfolio from loan sales and payoffs.

    Loans

    Total loans held for investment were $3.14 billion at December 31, 2024, a decrease of $60.5 million, compared to September 30, 2024, primarily the result of Sponsor Finance loans sales and loan payoffs in the amount of $90.8 million. During the fourth quarter of 2024, there were new originations of $128.5 million and net advances of $25.6 million, offset by loan sales and payoffs of $214.5 million, and the partial charge-off of loans in the amount of $154 thousand. Total loans secured by real estate decreased by $5.1 million, construction and land development loans decreased by $20.6 million, commercial real estate and other loans increased by $11.8 million, 1-4 family residential loans increased by $11.9 million and multifamily loans decreased by $8.1 million. Commercial and industrial loans decreased by $54.5 million, and consumer loans decreased by $1.0 million. The Company had $17.2 million in loans held for sale at December 31, 2024, compared to $33.7 million at September 30, 2024.

    Deposits

    Total deposits at December 31, 2024 were $3.40 billion, a decrease of $342.2 million from September 30, 2024. The decrease primarily consisted of $111.3 million noninterest-bearing demand deposits, $73.9 million interest-bearing non-maturity deposits, and $157.0 million time deposits. Noninterest-bearing demand deposits at December 31, 2024, were $1.26 billion, or 37.0% of total deposits, compared with $1.37 billion, or 36.6% of total deposits at September 30, 2024. At December 31, 2024, total interest-bearing deposits were $2.14 billion, compared to $2.37 billion at September 30, 2024. At December 31, 2024, total brokered time deposits were $121.1 million, compared to $222.6 million at September 30, 2024. The Company offers the Insured Cash Sweep (ICS) product, Certificate of Deposit Account Registry Service (CDARS), and Reich & Tang Deposit Solutions (R&T) network, all of which provide reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. At December 31, 2024, total reciprocal deposits were $754.4 million, or 22.2% of total deposits at December 31, 2024, compared to $839.7 million , or 22.4% of total deposits at September 30, 2024.

    Federal Home Loan Bank (“FHLB”) and Liquidity

    At December 31, 2024 and September 30, 2024, the Company had no overnight FHLB borrowings. There were no outstanding Federal Reserve Discount Window borrowings at December 31, 2024 or September 30, 2024.

    At December 31, 2024, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $753.9 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $318.5 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at December 31, 2024, with no outstanding borrowings. Total available borrowing capacity was $1.16 billion at December 31, 2024. Additionally, the Company had unpledged liquid securities at fair value of approximately $129.4 million and cash and cash equivalents of $388.2 million at December 31, 2024.

    Asset Quality

    Total non-performing assets increased slightly to $30.6 million, or 0.76% of total assets at December 31, 2024, compared with $29.8 million, or 0.68% of total assets at September 30, 2024.

    There were no loans downgraded to nonaccrual during the fourth quarter of 2024. Non-performing assets in the fourth quarter of 2024 included OREO, net of valuation allowance, of $4.1 million related to a multifamily building, the same balance as the prior quarter.

    Total non-performing loans increased slightly to $26.5 million, or 0.85% of total loans held for investment at December 31, 2024, compared with $25.7 million, or 0.80% of total loans held for investment at September 30, 2024.

    Special mention loans decreased by $24.1 million during the fourth quarter of 2024 to $69.3 million, including $25.5 million of non-PCD loans and $10.1 million of purchase credit deteriorated (“PCD”) loans, at December 31, 2024. The decrease in the special mention loans was due mostly to a $9.0 million payoff, $24.5 million in downgrades to substandard accruing loans and $8.4 million in upgrades to Pass loans, partially offset by $18.1 million in downgrades from Pass loans. Substandard loans increased by $13.6 million during the fourth quarter of 2024 to $117.9 million, including $11.0 million of non-PCD loans, $55.9 million PCD loans and $14.1 million nonaccrual PCD loans, at December 31, 2024. The increase in the substandard loans was due primarily to $29.8 million in downgrades and $2.9 million in net advances, partially offset by a $17.3 million in payoffs, $1.7 million in upgrades to Pass and $103 thousand in charge-offs.

    The Company had $150 thousand in consumer solar loans that were over 90 days past due and still accruing interest at December 31, 2024, compared to $37 thousand in such delinquencies at September 30, 2024.

    There were $12.2 million in loan delinquencies (30-89 days past due, excluding nonaccrual loans) at December 31, 2024, compared to $19.1 million in such loan delinquencies at September 30, 2024.

    The allowance for credit losses, which is comprised of the allowance for loan losses (“ALL”) and reserve for unfunded loan commitments, totaled $53.6 million at December 31, 2024, compared to $57.6 million at September 30, 2024. The $4.0 million decrease in the allowance for credit losses included a $2.9 million and $968 thousand reversal of provision for credit losses for the loan portfolio and reserve for unfunded loan commitments, respectively, partially offset by total net charge-offs of $145 thousand for the quarter ended December 31, 2024.

    The ALL was $50.5 million, or 1.61% of total loans held for investment at December 31, 2024, compared with $53.6 million, or 1.67% at September 30, 2024.

    Capital

    Tangible book value (non-GAAP1) per common share at December 31, 2024, was $11.71, compared with $11.28 at September 30, 2024. In the fourth quarter of 2024, tangible book value was primarily impacted by net income of $16.8 million for the fourth quarter, stock-based compensation expense, and an increase in net of tax unrealized losses on available-for-sale debt securities. Other comprehensive losses related to unrealized losses, net of taxes, on available-for-sale debt securities increased by $3.8 million to $6.6 million at December 31, 2024, from $2.9 million at September 30, 2024. The increase in the unrealized losses, net of taxes, on available-for-sale debt securities was attributable to non-credit related factors , including an increase in bond prices at the long end of the yield curve, even as the Federal Reserve decreased the Fed funds rate by 25 basis points in December 2024. Tangible common equity (non-GAAP1) as a percentage of total tangible assets (non-GAAP1) at December 31, 2024, increased to 9.69% from 8.58% in the prior quarter, and unrealized losses, net of taxes, on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP1) at December 31, 2024 increased to 1.8% from 0.8% in the prior quarter.

    The Company’s preliminary capital exceeds minimums required to be “well-capitalized” at December 31, 2024.

    ABOUT CALIFORNIA BANCORP

    California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving Northern and Southern California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.bankcbc.com.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, expectations regarding the adequacy of reserves for credit losses and statements about the benefits of the Merger, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions.

    Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to risk related to the Merger, including the risks that costs may be greater than anticipated, cost savings may be less than anticipated, and difficulties in retaining senior management, employees or customers, the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the
    costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time.

    Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other documents the Company files with the SEC from time to time.

    Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law.

    California BanCorp and Subsidiary
    Financial Highlights (Unaudited)

        At or for the
    Three Months Ended
        At or for the
    Year Ended
     
        December 31,
    2024
        September 30,
    2024
        December 31,
    2023
        December 31,
    2024
        December 31,
    2023
     
        ($ in thousands except share and per share data)  
    EARNINGS      
    Net interest income   $ 44,541     $ 36,942     $ 22,559     $ 122,984     $ 94,138  
    (Reversal of) provision for credit losses   $ (3,835 )   $ 22,963     $ 824     $ 21,690     $ 915  
    Noninterest income (expense)   $ 1,004     $ 1,174     $ (102 )   $ 4,760     $ 3,379  
    Noninterest expense   $ 26,125     $ 37,680     $ 15,339     $ 97,791     $ 59,746  
    Income tax expense (benefit)   $ 6,483     $ (6,063 )   $ 1,882     $ 2,830     $ 10,946  
    Net income (loss)   $ 16,772     $ (16,464 )   $ 4,412     $ 5,433     $ 25,910  
    Pre-tax pre-provision income (1)   $ 19,420     $ 436     $ 7,118     $ 29,953     $ 37,771  
    Adjusted pre-tax pre-provision income (1)   $ 20,063     $ 15,041     $ 7,118     $ 46,241     $ 37,771  
    Diluted earnings (loss) per share   $ 0.51     $ (0.59 )   $ 0.24     $ 0.22     $ 1.39  
    Shares outstanding at period end     32,265,935       32,142,427       18,369,115       32,265,935       18,369,115  
                                             
    PERFORMANCE RATIOS                                        
    Return on average assets     1.60 %     (1.82 )%     0.75 %     0.18 %     1.12 %
    Adjusted return on average assets (1)     1.64 %     1.01 %     0.75 %     1.05 %     1.12 %
    Return on average common equity     13.21 %     (15.28 )%     6.21 %     1.43 %     9.48 %
    Adjusted return on average common equity (1)     13.57 %     8.44 %     6.21 %     8.53 %     9.48 %
    Yield on total loans     6.84 %     6.79 %     6.08 %     6.55 %     5.94 %
    Yield on interest earning assets     6.48 %     6.49 %     5.85 %     6.26 %     5.69 %
    Cost of deposits     1.87 %     2.09 %     1.81 %     2.01 %     1.37 %
    Cost of funds     1.99 %     2.19 %     1.95 %     2.12 %     1.46 %
    Net interest margin     4.61 %     4.43 %     4.05 %     4.28 %     4.33 %
    Efficiency ratio (1)     57.36 %     98.86 %     68.30 %     76.55 %     61.27 %
    Adjusted efficiency ratio (1)     55.95 %     60.54 %     68.30 %     63.80 %     61.27 %
        As of  
        December 31,
    2024
        September 30,
    2024
        December 31,
    2023
     
        ($ in thousands except share and per share data)  
    CAPITAL      
    Tangible equity to tangible assets (1)     9.69 %     8.58 %     10.73 %
    Book value (BV) per common share   $ 15.86     $ 15.50     $ 15.69  
    Tangible BV per common share (1)   $ 11.71     $ 11.28     $ 13.56  
                             
    ASSET QUALITY                        
    Allowance for loan losses (ALL)   $ 50,540     $ 53,552     $ 22,569  
    Reserve for unfunded loan commitments   $ 3,103     $ 4,071     $ 933  
    Allowance for credit losses (ACL)   $ 53,643     $ 57,623     $ 23,502  
    Allowance for loan losses to nonperforming loans     1.90 x     2.08 x     1.74 x
    ALL to total loans held for investment     1.61 %     1.67 %     1.15 %
    ACL to total loans held for investment     1.71 %     1.80 %     1.20 %
    30-89 days past due, excluding nonaccrual loans   $ 12,232     $ 19,110     $ 19  
    Over 90 days past due, excluding nonaccrual loans   $ 150     $ 37     $  
    Special mention loans   $ 69,339     $ 93,448     $ 2,996  
    Special mention loans to total loans held for investment     2.21 %     2.92 %     0.15 %
    Substandard loans   $ 117,926     $ 104,298     $ 19,502  
    Substandard loans to total loans held for investment     3.76 %     3.26 %     1.00 %
    Nonperforming loans   $ 26,536     $ 25,698     $ 13,004  
    Nonperforming loans to total loans held for investment     0.85 %     0.80 %     0.66 %
    Other real estate owned, net   $ 4,083     $ 4,083     $  
    Nonperforming assets   $ 30,619     $ 29,781     $ 13,004  
    Nonperforming assets to total assets     0.76 %     0.68 %     0.55 %
                             
    END OF PERIOD BALANCES                        
    Total loans, including loans held for sale   $ 3,156,345     $ 3,233,418     $ 1,964,791  
    Total assets   $ 4,031,654     $ 4,362,767     $ 2,360,252  
    Deposits   $ 3,398,760     $ 3,740,915     $ 1,943,556  
    Loans to deposits     92.9 %     86.4 %     101.1 %
    Shareholders’ equity   $ 511,836     $ 498,064     $ 288,152  
    (1 ) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.

    California BanCorp and Subsidiary
    Financial Highlights (Unaudited)

        At or for the
    Three Months Ended
        At or for the
    Year Ended
     
    ALLOWANCE for CREDIT LOSSES   December 31,
    2024
        September 30,
    2024
        December 31,
    2023
        December 31,
    2024
        December 31,
    2023
     
        ($ in thousands)  
    Allowance for loan losses                                        
    Balance at beginning of period   $ 53,552     $ 23,788     $ 22,705     $ 22,569     $ 17,099  
    Adoption of ASU 2016-13 (1)                             5,027  
    Initial Allowance for PCD loans           11,216             11,216        
    (Reversal of) provision for credit losses (2)     (2,867 )     19,711       1,131       19,520       1,731  
    Charge-offs     (154 )     (1,163 )     (1,267 )     (2,774 )     (1,303 )
    Recoveries     9                   9       15  
    Net charge-offs     (145 )     (1,163 )     (1,267 )     (2,765 )     (1,288 )
    Balance, end of period   $ 50,540     $ 53,552     $ 22,569     $ 50,540     $ 22,569  
    Reserve for unfunded loan commitments (3)                                        
    Balance, beginning of period   $ 4,071     $ 819     $ 1,240     $ 933     $ 1,310  
    Adoption of ASU 2016-13 (1)                             439  
    (Reversal of) provision for credit losses (4)     (968 )     3,252       (307 )     2,170       (816 )
    Balance, end of period     3,103       4,071       933       3,103       933  
    Allowance for credit losses   $ 53,643     $ 57,623     $ 23,502     $ 53,643     $ 23,502  
                                             
    ALL to total loans held for investment     1.61 %     1.67 %     1.15 %     1.61 %     1.15 %
    ACL to total loans held for investment     1.71 %     1.80 %     1.20 %     1.71 %     1.20 %
    Net charge-offs to average total loans     (0.02 )%     (0.17 )%     (0.26 )%     (0.11 )%     (0.07 )%
    (1 ) Represents the impact of adopting ASU 2016-13, Financial Instruments – Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, our methodology to compute our allowance for credit losses is based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology.
    (2 ) Includes $18.5 million for the three months ended September 30, 2024 and year ended December 31, 2024 related to the initial provision for credit losses for non-PCD loans acquired in the Merger.
    (3 ) Included in “Accrued interest and other liabilities” on the consolidated balance sheet.
    (4 ) Includes $2.7 million for the three months ended September 30, 2024 and year ended December 31, 2024 related to the initial provision for credit losses on unfunded commitments acquired in the Merger.

    California BanCorp and Subsidiary
    Balance Sheets (Unaudited)

        December 31,
    2024
        September 30,
    2024
        December 31,
    2023
     
        ($ in thousands)  
    ASSETS                  
    Cash and due from banks   $ 60,471     $ 115,165     $ 33,008  
    Federal funds sold & interest-bearing balances     327,691       499,258       53,785  
    Total cash and cash equivalents     388,162       614,423       86,793  
                             
    Debt securities available-for-sale, at fair value (amortized cost of $151,429, $163,384 and $136,366 at December 31, 2024, September 30, 2024 and December 31, 2023)     142,001       159,330       130,035  
    Debt securities held-to-maturity, at cost (fair value of $47,823, $49,487 and $50,432 at December 31, 2024, September 30, 2024 and December 31, 2023)     53,280       53,364       53,616  
    Loans held for sale     17,180       33,704       7,349  
    Loans held for investment:                        
    Construction & land development     227,325       247,934       243,521  
    1-4 family residential     164,401       152,540       143,903  
    Multifamily     243,993       252,134       221,247  
    Other commercial real estate     1,767,727       1,755,908       1,024,243  
    Commercial & industrial     710,970       765,472       320,142  
    Other consumer     24,749       25,726       4,386  
    Total loans held for investment     3,139,165       3,199,714       1,957,442  
    Allowance for credit losses – loans     (50,540 )     (53,552 )     (22,569 )
    Total loans held for investment, net     3,088,625       3,146,162       1,934,873  
                             
    Restricted stock at cost     30,829       27,394       16,055  
    Premises and equipment     13,595       13,996       13,270  
    Right of use asset     14,350       15,310       9,291  
    Other real estate owned, net     4,083       4,083        
    Goodwill     111,787       112,515       37,803  
    Intangible assets     22,271       23,031       1,195  
    Bank owned life insurance     66,636       66,180       38,918  
    Deferred taxes, net     43,127       45,644       11,137  
    Accrued interest and other assets     35,728       47,631       19,917  
    Total assets   $ 4,031,654     $ 4,362,767     $ 2,360,252  
                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY                        
    Deposits:                        
    Noninterest-bearing demand   $ 1,257,007     $ 1,368,303     $ 675,098  
    Interest-bearing NOW accounts     673,589       781,125       381,943  
    Money market and savings accounts     1,182,927       1,149,268       636,685  
    Time deposits     285,237       442,219       249,830  
    Total deposits     3,398,760       3,740,915       1,943,556  
                             
    Borrowings     69,725       69,142       102,865  
    Operating lease liability     18,310       19,211       12,117  
    Accrued interest and other liabilities     33,023       35,435       13,562  
    Total liabilities     3,519,818       3,864,703       2,072,100  
                             
    Shareholders’ Equity:                        
    Common stock – 50,000,000 shares authorized, no par value; issued and outstanding 32,265,935, 32,142,427 and 18,369,115 at December 31, 2024, September 30, 2024 and December 31, 2023)     442,469       441,684       222,036  
    Retained earnings     76,008       59,236       70,575  
    Accumulated other comprehensive loss – net of taxes     (6,641 )     (2,856 )     (4,459 )
    Total shareholders’ equity     511,836       498,064       288,152  
    Total liabilities and shareholders’ equity   $ 4,031,654     $ 4,362,767     $ 2,360,252  

    California BanCorp and Subsidiary
    Income Statements – Quarterly and Year-to-Date (Unaudited)

        Three Months Ended     Year Ended  
        December 31,
    2024
        September 30,
    2024
        December 31,
    2023
        December 31,
    2024
        December 31,
    2023
     
        ($ in thousands except share and per share data)  
    INTEREST AND DIVIDEND INCOME                                        
    Interest and fees on loans   $ 54,791     $ 47,528     $ 29,968     $ 159,960     $ 113,951  
    Interest on debt securities     1,698       1,687       991       5,827       3,497  
    Interest on tax-exempted debt securities     305       306       353       1,223       1,655  
    Interest and dividends from other institutions     5,764       4,606       1,257       12,788       4,419  
    Total interest and dividend income     62,558       54,127       32,569       179,798       123,522  
                                             
    INTEREST EXPENSE                                        
    Interest on NOW, savings, and money market accounts     12,447       11,073       6,606       37,329       20,161  
    Interest on time deposits     4,179       5,087       2,331       15,432       6,704  
    Interest on borrowings     1,391       1,025       1,073       4,053       2,519  
    Total interest expense     18,017       17,185       10,010       56,814       29,384  
    Net interest income     44,541       36,942       22,559       122,984       94,138  
                                             
    (Reversal of) provisions for credit losses (1)     (3,835 )     22,963       824       21,690       915  
    Net interest income after (reversal of) provision for credit losses     48,376       13,979       21,735       101,294       93,223  
                                             
    NONINTEREST INCOME                                        
    Service charges and fees on deposit accounts     911       1,136       507       3,140       1,946  
    (Loss) gain on sale of loans     (1,095 )     8             (672 )     831  
    Bank owned life insurance income     823       398       253       1,748       946  
    Servicing and related income on loans     157       82       17       307       240  
    Loss on sale of debt securities                 (1,008 )           (974 )
    Loss on sale of building and related fixed assets                       (19 )      
    Other charges and fees     208       (450 )     129       256       390  
    Total noninterest income (expense)     1,004       1,174       (102 )     4,760       3,379  
                                             
    NONINTEREST EXPENSE                                        
    Salaries and employee benefits     16,074       15,385       9,598       49,845       39,249  
    Occupancy and equipment expenses     2,314       2,031       1,678       7,242       6,231  
    Data processing     1,960       1,536       1,158       5,832       4,534  
    Legal, audit and professional     817       669       1,161       2,559       3,211  
    Regulatory assessments     436       544       320       1,714       1,508  
    Director and shareholder expenses     458       520       207       1,410       849  
    Merger and related expenses     643       14,605             16,288        
    Intangible assets amortization     1,060       687       80       1,877       389  
    Other real estate owned expense     220       3             5,246        
    Other expense     2,143       1,700       1,137       5,778       3,775  
    Total noninterest expense     26,125       37,680       15,339       97,791       59,746  
    Income (loss) before income taxes     23,255       (22,527 )     6,294       8,263       36,856  
    Income tax expense (benefit)     6,483       (6,063 )     1,882       2,830       10,946  
    Net income (loss)   $ 16,772     $ (16,464 )   $ 4,412     $ 5,433     $ 25,910  
                                             
    Net income (loss) per share – basic   $ 0.52     $ (0.59 )   $ 0.24     $ 0.22     $ 1.42  
    Net income (loss) per share – diluted   $ 0.51     $ (0.59 )   $ 0.24     $ 0.22     $ 1.39  
    Weighted average common shares-diluted     32,698,714       27,705,844       18,727,519       24,623,397       18,656,742  
    Pre-tax, pre-provision income (2)   $ 19,420     $ 436     $ 7,118     $ 29,953     $ 37,771  
    (1 ) Included (reversal of) provision for unfunded loan commitments of $(1.0) million, $3.3 million and $(307) thousand for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, and $2.2 million and $(816) thousand for the years ended December 31, 2024 and 2023, respectively
    (2 ) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.

    California BanCorp and Subsidiary
    Average Balance Sheets and Yield Analysis
    (Unaudited)

        Three Months Ended  
        December 31, 2024     September 30, 2024     December 31, 2023  
        Average Balance     Income/
    Expense
        Yield/
    Cost
        Average Balance     Income/
    Expense
        Yield/
    Cost
        Average Balance     Income/
    Expense
        Yield/
    Cost
     
        ($ in thousands)  
    Assets                                                      
    Interest-earning assets:                                                                        
    Total loans   $ 3,184,918     $ 54,791       6.84   %   $ 2,783,581     $ 47,528       6.79 %   $ 1,954,396     $ 29,968       6.08 %
    Taxable debt securities     147,895       1,698       4.57   %     149,080       1,687       4.50 %     113,375       991       3.47 %
    Tax-exempt debt securities (1)     53,607       305       2.87   %     53,682       306       2.87 %     58,644       353       3.02 %
    Deposits in other financial institutions     422,032       5,123       4.83   %     161,616       2,215       5.45 %     56,313       759       5.35 %
    Fed funds sold/resale agreements     3,353       38       4.51   %     143,140       1,886       5.24 %     9,008       125       5.51 %
    Restricted stock investments and other bank stock     30,341       603       7.91   %     24,587       505       8.17 %     16,394       373       9.03 %
    Total interest-earning assets     3,842,146       62,558       6.48   %     3,315,686       54,127       6.49 %     2,208,130       32,569       5.85 %
    Total noninterest-earning assets     326,601                       277,471                       137,193                  
    Total assets   $ 4,168,747                     $ 3,593,157                     $ 2,345,323                  
                                                                             
    Liabilities and Shareholders’ Equity                                                                        
    Interest-bearing liabilities:                                                                        
    Interest-bearing NOW accounts   $ 704,017     $ 3,784       2.14   %   $ 617,373     $ 2,681       1.73 %   $ 362,579     $ 1,860       2.04 %
    Money market and savings accounts     1,192,692       8,663       2.89   %     999,322       8,392       3.34 %     669,391       4,746       2.81 %
    Time deposits     359,111       4,179       4.63   %     421,241       5,087       4.80 %     208,700       2,331       4.43 %
    Total interest-bearing deposits     2,255,820       16,626       2.93   %     2,037,936       16,160       3.15 %     1,240,670       8,937       2.86 %
    Borrowings:                                                                        
    FHLB advances                 %       611       9       5.86 %     56,380       802       5.64 %
    Subordinated debt     69,420       1,391       7.97   %     52,246       1,016       7.74 %     17,854       271       6.02 %
    Total borrowings     69,420       1,391       7.97   %     52,857       1,025       7.71 %     74,234       1,073       5.73 %
    Total interest-bearing liabilities     2,325,240       18,017       3.08   %     2,090,793       17,185       3.27 %     1,314,904       10,010       3.02 %
                                                                             
    Noninterest-bearing liabilities:                                                                        
    Noninterest-bearing deposits (2)     1,283,591                       1,031,844                       721,169                  
    Other liabilities     55,007                       41,962                       27,178                  
    Shareholders’ equity     504,909                       428,558                       282,072                  
    Total Liabilities and Shareholders’ Equity   $ 4,168,747                     $ 3,593,157                     $ 2,345,323                  
                                                                             
    Net interest spread                     3.40   %                     3.22 %                     2.83 %
    Net interest income and margin           $ 44,541       4.61   %           $ 36,942       4.43 %           $ 22,559       4.05 %
    Cost of deposits   $ 3,539,411     $ 16,626       1.87   %   $ 3,069,780     $ 16,160       2.09 %   $ 1,961,839     $ 8,937       1.81 %
    Cost of funds   $ 3,608,831     $ 18,017       1.99   %   $ 3,122,637     $ 17,185       2.19 %   $ 2,036,073     $ 10,010       1.95 %
    (1 ) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
    (2 ) Average noninterest-bearing deposits represent 36.27%, 33.61% and 36.76% of average total deposits for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    California BanCorp and Subsidiary
    Average Balance Sheets and Yield Analysis
    (Unaudited)

        Year Ended  
        December 31, 2024     December 31, 2023  
        Average Balance     Income/
    Expense
        Yield/
    Cost
        Average Balance     Income/
    Expense
        Yield/
    Cost
     
        ($ in thousands)  
    Assets                                    
    Interest-earning assets:                                                
    Total loans   $ 2,443,127     $ 159,960       6.55 %   $ 1,918,443     $ 113,951       5.94 %
    Taxable debt securities     136,984       5,827       4.25 %     107,021       3,497       3.27 %
    Tax-exempt debt securities (1)     53,721       1,223       2.88 %     65,674       1,655       3.19 %
    Deposits in other financial institutions     171,939       8,692       5.06 %     46,826       2,434       5.20 %
    Fed funds sold/resale agreements     43,990       2,319       5.27 %     18,114       923       5.10 %
    Restricted stock investments and other bank stock     22,137       1,777       8.03 %     15,930       1,062       6.67 %
    Total interest-earning assets     2,871,898       179,798       6.26 %     2,172,008       123,522       5.69 %
    Total noninterest-earning assets     224,018                       134,225                  
    Total assets   $ 3,095,916                     $ 2,306,233                  
                                                     
    Liabilities and Shareholders’ Equity                                                
    Interest-bearing liabilities:                                                
    Interest-bearing NOW accounts   $ 511,425     $ 10,644       2.08 %   $ 308,537     $ 5,161       1.67 %
    Money market and savings accounts     911,684       26,685       2.93 %     673,176       15,000       2.23 %
    Time deposits     324,249       15,432       4.76 %     180,219       6,704       3.72 %
    Total interest-bearing deposits     1,747,358       52,761       3.02 %     1,161,932       26,865       2.31 %
    Borrowings:                                                
    FHLB advances     19,543       1,103       5.64 %     26,390       1,434       5.43 %
    Subordinated debt     39,479       2,950       7.47 %     17,818       1,085       6.09 %
    Total borrowings     59,022       4,053       6.87 %     44,208       2,519       5.70 %
    Total interest-bearing liabilities     1,806,380       56,814       3.15 %     1,206,140       29,384       2.44 %
                                                     
    Noninterest-bearing liabilities:                                                
    Noninterest-bearing deposits (2)     873,043                       801,882                  
    Other liabilities     36,677                       24,865                  
    Shareholders’ equity     379,816                       273,346                  
    Total Liabilities and Shareholders’ Equity   $ 3,095,916                     $ 2,306,233                  
                                                     
    Net interest spread                     3.11 %                     3.25 %
    Net interest income and margin           $ 122,984       4.28 %           $ 94,138       4.33 %
    Cost of deposits   $ 2,620,401     $ 52,761       2.01 %   $ 1,963,814     $ 26,865       1.37 %
    Cost of funds   $ 2,679,423     $ 56,814       2.12 %   $ 2,008,022     $ 29,384       1.46 %
    (1 ) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
    (2 ) Average noninterest-bearing deposits represent 33.32%, and 40.83% of average total deposits for the year ended December 31, 2024 and December 31, 2023, respectively.

    California BanCorp and Subsidiary
    GAAP to Non-GAAP Reconciliation
    (Unaudited)

    The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income (loss), (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.

        Three Months Ended     Year Ended  
        December 31,
    2024
        September 30,
    2024
        December 31,
    2023
        December 31,
    2024
        December 31,
    2023
     
        ($ in thousands)  
    Adjusted net income                                        
    Net income (loss)   $ 16,772     $ (16,464 )   $ 4,412     $ 5,433     $ 25,910  
    Add: After-tax Day1 provision for non PCD loans and unfunded loan commitments (1)           14,978             14,978        
    Add: After-tax merger and related expenses (1)     453       10,576             11,988        
    Adjusted net income (non-GAAP)   $ 17,225     $ 9,090     $ 4,412     $ 32,399     $ 25,910  
                                             
    Efficiency Ratio                                        
    Noninterest expense   $ 26,125     $ 37,680     $ 15,339     $ 97,791     $ 59,746  
    Deduct: Merger and related expenses     643       14,605             16,288        
    Adjusted noninterest expense     25,482       23,075       15,339       81,503       59,746  
                                             
    Net interest income     44,541       36,942       22,559       122,984       94,138  
    Noninterest income (expense)     1,004       1,174       (102 )     4,760       3,379  
    Total net interest income and noninterest income   $ 45,545     $ 38,116     $ 22,457     $ 127,744     $ 97,517  
    Efficiency ratio (non-GAAP)     57.4 %     98.9 %     68.3 %     76.6 %     61.3 %
    Adjusted efficiency ratio (non-GAAP)     55.9 %     60.5 %     68.3 %     63.8 %     61.3 %
                                             
    Pre-tax pre-provision income                                        
    Net interest income   $ 44,541     $ 36,942     $ 22,559     $ 122,984     $ 94,138  
    Noninterest income (expense)     1,004       1,174       (102 )     4,760       3,379  
    Total net interest income and noninterest income     45,545       38,116       22,457       127,744       97,517  
    Less: Noninterest expense     26,125       37,680       15,339       97,791       59,746  
    Pre-tax pre-provision income (non-GAAP)     19,420       436       7,118       29,953       37,771  
    Add: Merger and related expenses     643       14,605             16,288        
    Adjusted pre-tax pre-provision income (non-GAAP)   $ 20,063     $ 15,041     $ 7,118     $ 46,241     $ 37,771  
    (1 ) After-tax Day 1 provision for non-PCD loans and unfunded commitments and merger and related expenses are presented using a 29.56% tax rate.
        Three Months Ended     Year Ended  
        December 31,
    2024
        September 30,
    2024
        December 31,
    2023
        December 31,
    2024
        December 31,
    2023
     
        ($ in thousands)  
    Return on Average Assets, Equity, and Tangible Equity                              
    Net income (loss)   $ 16,772     $ (16,464 )   $ 4,412     $ 5,433     $ 25,910  
    Adjusted net income (non-GAAP)   $ 17,225     $ 9,090     $ 4,412     $ 32,399     $ 25,910  
                                             
    Average assets   $ 4,168,747     $ 3,593,157     $ 2,345,323     $ 3,095,916     $ 2,306,233  
    Average shareholders’ equity     504,909       428,558       282,072       379,816       273,346  
    Less: Average intangible assets     135,073       104,409       39,035       79,366       39,195  
    Average tangible common equity (non-GAAP)   $ 369,836     $ 324,149     $ 243,037     $ 300,450     $ 234,151  
                                             
    Return on average assets     1.60 %     (1.82 %)     0.75 %     0.18 %     1.12 %
    Adjusted return on average assets (non-GAAP)     1.64 %     1.01 %     0.75 %     1.05 %     1.12 %
    Return on average equity     13.21 %     (15.28 %)     6.21 %     1.43 %     9.48 %
    Adjusted return on average equity (non-GAAP)     13.57 %     8.44 %     6.21 %     8.53 %     9.48 %
    Return on average tangible common equity (non-GAAP)     18.04 %     (20.21 %)     7.20 %     1.81 %     11.07 %
    Adjusted return on average tangible common equity (non-GAAP)     18.53 %     11.16 %     7.20 %     10.78 %     11.07 %
        December 31,
    2024
        December 31,
    2023
     
        ($ in thousands except share and per share data)  
    Tangible Common Equity Ratio/Tangible Book Value Per Share                
    Shareholders’ equity   $ 511,836     $ 288,152  
    Less: Intangible assets     134,058       38,998  
    Tangible common equity (non-GAAP)   $ 377,778     $ 249,154  
                     
    Total assets   $ 4,031,654     $ 2,360,252  
    Less: Intangible assets     134,058       38,998  
    Tangible assets (non-GAAP)   $ 3,897,596     $ 2,321,254  
                     
    Equity to asset ratio     12.70 %     12.21 %
    Tangible common equity to tangible asset ratio (non-GAAP)     9.69 %     10.73 %
    Book value per share   $ 15.86     $ 15.69  
    Tangible book value per share (non-GAAP)   $ 11.71     $ 13.56  
    Shares outstanding     32,265,935       18,369,115  

    INVESTOR RELATIONS CONTACT
    Kevin Mc Cabe
    California Bank of Commerce, N.A.
    kmccabe@bankcbc.com
    818.637.7065


    1 Reconciliations of non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.

    The MIL Network

  • MIL-OSI: Kama Capital Secures SCA Category 1 License: A Major Step in Expanding Innovation and Reach

    Source: GlobeNewswire (MIL-OSI)

    DUBAI, United Arab Emirates, Jan. 29, 2025 (GLOBE NEWSWIRE) — The Securities and Commodities Authority (SCA) of the United Arab Emirates has awarded Kama Capital the prestigious Category 1 licence. This achievement positions Kama Capital as a key player in the trading industry, providing it with the regulatory framework to expand its presence, scale its operations, and fulfill its mission to create advanced, high-tech, AI-driven online trading solutions. 

    What the SCA License Means for Us
    This isn’t merely a licence—it’s a gateway to opportunity. Here’s how it empowers Kama Capital to advance its business to the next level level:

    1.     Expanded Services and Product Offering
    The SCA Category 1 licence allows Kama Capital to offer a broader range of financial services, including direct market access for clients and advanced trading tools. This means we can cater to institutional investors, liquidity providers, and professional traders in the region with solutions tailored to their needs — all underpinned by robust regulation oversight.

    2.    Enhanced Trust and Credibility
    Being licensed by the SCA, one of the most respected regulators in the region, reinforces Kama Capital’s commitment to transparency, security, and compliance. Clients seek assurance that their trading partner operates within strict legal frameworks, and this licence provides precisely that. For technology-driven firms like ours, this trust forms the foundation for our bold innovation.

    3.    A Foundation for Technological Growth
    Regulation isn’t a barrier for us — it’s an enabler. The SCA provides clear, tech-forward guidelines for fintech companies to innovate responsibly. With this licence, Kama Capital can scale its AI-driven trading platform while ensuring that all technology and data management practices meet regulatory expectations. The balance between innovation and oversight enables us to develop faster, smarter trading tools for our clients.

    Why Dubai Is the Perfect HQ for Kama Capital
    Establishing our headquarters in Dubai was a deliberate choice. The city is not only an economic hub but a global centre for entrepreneurship and technology. Here’s why it matters:

    1.     A Fintech-Friendly Ecosystem
    Dubai has established itself as the region’s leader in financial technology. From its thriving startup scene to government-backed accelerators, the city actively supports innovation. This infrastructure allows Kama Capital to stay at the cutting edge of trading technology while benefiting from proximity to like-minded tech innovators.

    2.    Access to World-Class Talent
    The UAE attracts some of the brightest minds in finance and technology. By based in Dubai, we have access to a diverse talent pool with expertise in AI, machine learning, and algorithmic trading. This talent is the engine behind our next-generation trading solutions.

    3.    A Visionary Regulatory Environment
    The SCA and other UAE regulatory bodies are not just gatekeepers but partners in fostering innovation. Their frameworks enable companies like Kama Capital to operate confidently, knowing that technological advancements and client protection go hand in hand.

    Quotes from Leadership

    Razan Assaf, Deputy CEO of Kama Capital: “Securing the SCA Category 1 license for Kama Capital Securites Broker LLC is a major milestone for Kama Capital Group’s expansion. It allows us to broaden our presence in the UAE and across the GCC, giving traders access to a highly regulated, technology-first brokerage that prioritizes performance and security. The UAE continues to set the gold standard for financial innovation, and we are proud to be part of this ecosystem, driving forward the next generation of trading.” Mohammed Omayer, Head of Compliance at Kama Capital: “Regulatory integrity is at the core of everything we do. The SCA Category 1 license confirms that Kama Capital operates under the most rigorous financial, compliance, and AML (Anti-Money Laundering) standards. As trading technology evolves, so do the risks associated with financial crime, and we remain committed to ensuring that every aspect of our operations meets and exceeds global regulatory expectations. This license strengthens our ability to enforce strict AML policies, investor protection measures, and financial security protocols, ensuring a safe and transparent trading environment for all our clients.”

    About Kama Capital

    Kama Capital was founded in 2021 to lead a new breed of traders powered by cutting-edge AI and technology to redefine the future of trading. Headquartered in Dubai, the company leverages advanced machine learning, algorithmic trading, Expert Advisors, data analytics, and next-generation trading tools to provide traders with the technology, intelligence, and control needed to transform their trading practices. Kama Capital has received industry recognition for its innovative approach, earning awards such as “Fintech of the Year” from Entrepreneur Magazine, forming strategic partnerships with Tech Crunch, Finance Magnates, Acuity, and FutureTech Con, and now operates under the prestigious SCA Category 1 licence, further solidifying its position as a leader in the financial trading sector.

    For more information about Kama Capital, users can visit https://kamacapital.ae/

    Contact

    Head of Digital & Partnerships
    Karthik R. Arumugam
    Kama Capital
    k.arumugam@kama-capital.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/95c11624-3979-4f38-84b2-648cf3ebceaf

    The MIL Network

  • MIL-OSI USA: Office of the Governor — News Release — Governor Green Signs Executive Order to Promote and Expedite Renewable Energy, Reducing Energy Costs

    Source: US State of Hawaii

    Office of the Governor — News Release — Governor Green Signs Executive Order to Promote and Expedite Renewable Energy, Reducing Energy Costs

    Posted on Jan 28, 2025 in Latest Department News, Newsroom, Office of the Governor Press Releases

    STATE OF HAWAIʻI 
    KA MOKU ʻĀINA O HAWAIʻI 

     
    JOSH GREEN, M.D. 
    GOVERNOR
    KE KIAʻĀINA 

     

    GOVERNOR GREEN SIGNS EXECUTIVE ORDER TO PROMOTE AND EXPEDITE RENEWABLE ENERGY, REDUCING ENERGY COSTS
     

    FOR IMMEDIATE RELEASE
    January 28, 2025

    HONOLULU — Governor Josh Green, M.D., today unveiled an executive order to promote and expedite the development of renewable energy in the state of Hawaiʻi.

    In the face of federal uncertainty regarding renewable energy and concerns over grid stability across the state, the Governor is committed to expanding and accelerating Hawaiʻi’s renewable resource development, and has outlined priorities to reduce energy costs, prevent blackouts, and slash emissions for Hawaiʻi residents and businesses.

    The executive order, developed with the Hawaiʻi State Energy Office and the input of various energy stakeholders across the state over the last year, outlines new policy objectives and directives for the state of Hawaiʻi, including accelerating renewable development for neighbor island communities to hit 100% renewable portfolio standards from 2045 to 2035, setting a statewide goal of 50,000 distributed renewable energy installations (such as rooftop solar and battery systems) by 2030, and directing state departments to streamline and accelerate the permitting of renewable developments to reduce energy costs and project development timelines.

    In addition, the order calls upon the Hawaiʻi Public Utilities Commission and Hawaiian Electric Company for support in reducing redundancies and inefficiencies in energy permitting and to prioritize reduced energy costs and energy stability for Hawaiʻi’s people.

    “Hawaiʻi needs to take some drastic steps to reduce energy costs, which have continued to rise and have contributed to the high cost of living for our people,” said Governor Green. “We know that high energy costs in Hawaiʻi are due to our reliance on burning oil for electricity and old infrastructure, which is really unacceptable. We can and must do more to get this under control.”

    Despite the federal administration signaling a turn away from renewables, Governor Green is doubling-down on a diversified, renewable-centered approach to cut costs and emissions.

    “This EO represents the start of real action to lower costs, support a stable energy system, and reduce emissions,” said Chip Fletcher, the Governor’s climate advisor and interim dean of the School of Ocean and Earth Science and Technology (SOEST), University of Hawai‘i at Mānoa. “Governor Green is cutting the red tape to realize our shared energy goals, including the first-ever push to get neighbor island communities to energy independence a decade sooner.”

    “The goal of 50,000 distributed renewable energy installations before 2030 demonstrates the state of Hawaiʻi’s commitment to ensuring more affordable and resilient energy for Hawaiʻi’s people,” said Rocky Mould, executive director of the Hawaiʻi Solar Energy Association. “We are excited to aggressively expand opportunities for rooftop solar and energy storage and unleash its power and promise for the clean/decarbonized grid of the future under Governor Green’s leadership.”

    Energy costs have risen starkly in Hawaiʻi, which has the highest average residential energy rate of any state in the U.S.

    High electricity and utility costs impact households, are a drag on Hawaiʻi’s economy, and add additional tax burdens by increasing government operating expenses. Energy cost increases have represented a $15M recurring increase in the Governor’s latest biennium budget for the Department of Education’s operations alone.

    A copy of the executed executive order can be found here.

    # # # 

    Media Contacts:   
    Erika Engle
    Press Secretary
    Office of the Governor, State of Hawai‘i
    Phone: 808-586-0120
    Email: [email protected]

    Makana McClellan
    Director of Communications
    Office of the Governor, State of Hawaiʻi
    Cell: 808-265-0083
    Email: [email protected]

    MIL OSI USA News

  • MIL-OSI USA: Governor Newsom meets with leaders of Kehillat Israel, Palisades synagogue that still stands after fire

    Source: US State of California 2

    Jan 28, 2025

    What you need to know: Governor Newsom met today with leaders of the Pacific Palisades synagogue Kehillat Israel, which still stands after the fire.

    Los Angeles, California – Today, Governor Gavin Newsom met with clergy, staff, and board members of Kehillat Israel, the largest synagogue in Pacific Palisades, which still stands after the Palisades Fire wiped out the neighborhood. Kehillat Israel is home to almost one thousand Jewish families, a third of whom lost their homes in the fires.

    “It was an honor to see the resilience of the Kehillat Israel community. To know their place of worship still standing is nothing short of a miracle, and watching the clergy and congregants coming together to pray, learn, and support each other is inspiring. Pacific Palisades will build back stronger than ever, and KI will continue to be a leader in that recovery.”

    Governor Gavin Newsom

    Founded in Pacific Palisades in 1950, Kehillat Israel has been in its current building since October 26, 1997. It is a center of the community for Jews of all faiths across West Los Angeles, and includes a parenting center, Early Childhood Center (pre-school and TK), and K-12 and senior programming.

    Today’s convening took place at Beth Shir Shalom, a synagogue in Santa Monica where some of Kehillat Israel’s programming is currently being held.

    Support for the Palisades

    Governor Newsom was on the ground in Pacific Palisades 50 minutes after the Palisades Fire first broke out in the Palisades Highlands. He has since toured the Palisades Village with first responders several times, visited the destroyed homes of Palisadians, and volunteered with Project Angel Food to assist survivors. He continues to meet with survivors, leaders, and local officials to ensure that the Palisades has all it needs to recover and rebuild. 

    Get help today

    Californians can go to CA.gov/LAfires – a hub for information and resources from state, local and federal government.

    Individuals and business owners who sustained losses from wildfires in Los Angeles County can apply for disaster assistance:

    If you use a relay service, such as video relay service (VRS), captioned telephone service or others, give FEMA the number for that service.

    Press Releases, Recent News

    Recent news

    News Dodgers Chairman Mark Walter, Mark Walter Family Foundation, and Los Angeles Dodgers Foundation will provide an initial commitment of up to $100 million   LA Rises will support city and county efforts to help accelerate recovery LOS ANGELES — In the wake of one…

    News LOS ANGELES — Scientists, water managers, state leaders, and experts throughout the state are calling out the federal administration’s ongoing misinformation campaign on water management in California. Here is a snapshot of what water leaders and media are saying…

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Bret Ladine, of Sacramento, has been appointed Director of the Financial Information System for California (FI$Cal). Ladine has been General Counsel at the California State…

    Jan 28, 2025

    What you need to know: The passage of Proposition 1 by California voters adds rocket fuel to Governor Gavin Newsom’s transformational overhaul of the state’s behavioral health system. These reforms refocus existing funds to prioritize Californians with the most serious mental health and substance use issues, who are too often experiencing homelessness. They also fund more than 11,150 new behavioral health beds and supportive housing units and 26,700 outpatient treatment slots.

    Los Angeles, California – California took a major step forward in correcting the damage from 50 years of neglect to the state’s mental health system with the passage of Proposition 1. This historic measure — a signature priority of Governor Gavin Newsom — adds rocket fuel to California’s overhaul of the state’s behavioral health systems. It provides a full range of mental health and substance abuse care, with new accountability metrics to ensure local governments deliver for their communities.

    This is the biggest reform of the California mental health system in decades and will finally equip partners to deliver the results all Californians need and deserve. Treatment centers will prioritize mental health and substance use support in the community like never before. Now, it’s time to roll up our sleeves and begin implementing this critical reform – working closely with city and county leaders to ensure we see results.

    Governor Gavin Newsom

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    What they’re saying: 

    • Sacramento Mayor Darrell Steinberg, original author of the Mental Health Services Act: “Twenty years ago, I never could have dreamed that we would have the strong leadership we have today, committing billions and making courageous policy changes that question the conventional wisdom on mental health. Now, with the passage of Proposition 1. California is delivering on decades old promises to help people living with brain-based illnesses, to live better lives, to live independently and to live with dignity in our communities. This is a historic moment and the hard work is ahead of us.“
    • Senator Susan Eggman (D-Stockton), author of Senate Bill 326: “Today marks a day of hope for thousands of Californians who are struggling with mental illness – many of whom are living unhoused. I am tremendously grateful to my fellow Californian’s for passing this important measure.  And I am very appreciative of this Governor’s leadership to transform our behavioral health care system!”
    • Assemblymember Jacqui Irwin (D-Thousand Oaks), author of Assembly Bill 531: “This started as an audacious proposal to address the root cause of homelessness and today, Californians can be proud to know that they did the right thing by passing Proposition 1. Now, it’s time for all of us to get to work, and make sure these reforms are implemented and that we see results.”

    Bigger picture: Transforming the Mental Health Services Act into the Behavioral Health Services Act and building more community mental health treatment sites and supportive housing is the last main pillar of Governor Newsom’s Mental Health Movement – pulling together significant recent reforms like 988 crisis line, CalHOPE, CARE Court, conservatorship reform, CalAIM behavioral health expansion (including mobile crisis care and telehealth), Medi-Cal expansion to all low-income Californians, Children and Youth Behavioral Health Initiative (including expanding services in schools and on-line), Older Adult Behavioral Health Initiative, Veterans Mental Health Initiative, Behavioral Health Community Infrastructure Program, Behavioral Health Bridge Housing, Health Care Workforce for All and more.

    More details on next step here

    Press Releases, Recent News

    Recent news

    News Dodgers Chairman Mark Walter, Mark Walter Family Foundation, and Los Angeles Dodgers Foundation will provide an initial commitment of up to $100 million   LA Rises will support city and county efforts to help accelerate recovery LOS ANGELES — In the wake of one…

    News LOS ANGELES — Scientists, water managers, state leaders, and experts throughout the state are calling out the federal administration’s ongoing misinformation campaign on water management in California. Here is a snapshot of what water leaders and media are saying…

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Bret Ladine, of Sacramento, has been appointed Director of the Financial Information System for California (FI$Cal). Ladine has been General Counsel at the California State…

    MIL OSI USA News

  • MIL-OSI USA: Office of the Governor — News Release — Governor Green Applauds Federal Judge for Halting Funding Freeze

    Source: US State of Hawaii

    Office of the Governor — News Release — Governor Green Applauds Federal Judge for Halting Funding Freeze

    Posted on Jan 28, 2025 in Latest Department News, Newsroom, Office of the Governor Press Releases

    STATE OF HAWAIʻI 
    KA MOKU ʻĀINA O HAWAIʻI 

     
    JOSH GREEN, M.D. 
    GOVERNOR
    KE KIAʻĀINA 

     

    GOVERNOR GREEN APPLAUDS FEDERAL JUDGE FOR HALTING FUNDING FREEZE
     

    FOR IMMEDIATE RELEASE
    January 28, 2025

    HONOLULU — Governor Josh Green, M.D., applauds the ruling by a federal court judge today, blocking the order by President Trump to freeze federal funding for crucial programs serving Americans. The Governor stands in strong opposition to President Trump’s executive order pausing federal disbursements, which has caused a great deal of chaos, confusion and uncertainty.

    “The presidential order seeks to prevent the people of Hawai‘i from receiving crucial services funded by the millions of dollars they pay to the federal government each year. This cannot stand,” said Governor Green. “My administration is currently assessing the impact of this pause on essential state programs and services, including education, health care, social services, and wildfire recovery. For those programs that are found to be impacted, the state of Hawai‘i will work to develop alternate plans to ensure that key services for local residents are continued. The state Attorney General has joined other states in initiating legal action to challenge the federal administration’s actions, as Hawai‘i has already encountered impacts of this threatened funding freeze.”

    The U.S. Office of Management and Budget (OMB) issued a memorandum on January 27, 2025, which requires federal agencies to complete a comprehensive analysis of all of their federal financial assistance programs to identify programs, projects and activities that may be impacted by any of the president’s executive orders. During this review period, the obligation and disbursement of federal funds were to be paused effective January 28, 2025 at 5:00 p.m.

    “The OMB has since issued clarification guidance indicating that any program that provides direct benefits to individuals is not subject to the pause, such as Medicaid, SNAP or Social Security benefits, among others,” said state Department of Budget and Finance Director Luis Salaveria.

    “The Department of Accounting and General Services (DAGS) has several divisions or attached agencies that would be affected,” said state Comptroller Keith Regan. “The main impact would be to our public arts initiatives in the State Foundation of Culture and the Arts. Indirectly, it is possible the Archives may need to halt projects funded by its federal grants and our State Procurement Office’s Surplus Property Program may be affected by the pause in funding.”

    The Hawai‘i Department of Transportation is working with the Trump Administration on clarifications to the OMB memo, including its impacts on obligated formula projects and discretionary funds.

    The state Department of Law Enforcement welcomed the OMB’s clarification memo, but is still seeking final determination of impacts from federal partners.

    “The Hawaiʻi Department of Labor and Industrial Relations (DLIR) is deeply concerned about the temporary pause on federal financial assistance and its potential impacts on our ability to deliver essential services,” said DLIR Director Jade T. Butay. “A significant portion of our operations, including workforce development, unemployment insurance, job training and workplace safety through our Occupational Safety and Health division, is supported by federal funds. Any disruption to these critical programs could affect workers, employers and communities statewide. We are actively monitoring the situation and are awaiting further guidance from the U.S. Department of Labor to understand the full scope of the impacts and next steps. We remain committed to serving the people of Hawaiʻi and ensuring the continuity of essential programs.”

    The State of Hawaiʻi Department of Defense (HIDOD) (comprising the Hawaiʻi National Guard, Hawaiʻi Emergency Management Agency, Office of Veterans’ Services and Civilian Military Programs) evaluated potential impacts to its core mission to enable a safe, secure, and thriving state of Hawaiʻi. HIDOD relies on approximately $88M in federal funding for its annual operating budget; about $350M to administer its Hazardous Mitigation Program Grant; close to $25M for its Emergency Management Program Grant, and anticipates approximately $56M in FEMA reimbursement for the recent Maui Wildfires disaster response and recovery. It also receives federal grant funding for the High Intensity Drug Trafficking Areas (HIDTA) program to synergize its counter-narcotics efforts with federal, state and county law enforcement agencies.

    “While these federal programs are being reviewed by OMB, there’s no immediate impact to operate, retain qualified personnel, and continue to protect the citizens of the state of Hawaiʻi,”, said Maj. Gen. Stephen Logan, State Adjutant General.

    The Hawaiʻi State Public Library System (HSPLS) receives about $1.5M in Library Services and Technology Act funding that ensures that all local residents have access to library materials, technology in the library to connect to the Internet, and online databases that provide equal access to information and learning opportunities no matter where they live. The suspension of this funding will cause our communities to face limited access to information that supports their health, business, education and ability to connect to the world. Specifically, students will not have free access to test preparation and families will not have easy access to legal forms to support their needs.

    HSPLS also is a recipient and partner for two digital equity projects. One provides basic digital literacy classes in all of our communities through May of this year. The second is part of the Federal Broadband Equity Access Deployment (BEAD) funding received by the University of Hawaiʻi. The funding supports Digital Literacy Navigators in all public libraries to ensure our patrons have access to learning the digital literacy skills they need to be successful.

    Governor Green and his administration will continue to work to support the people of Hawai‘i, prioritizing affordability, housing, reducing homelessness, increasing food security and more, to allow the residents of the islands to live and thrive in the place they love and call home.

    # # # 

    Media Contacts:   
    Erika Engle
    Press Secretary
    Office of the Governor, State of Hawai‘i
    Phone: 808-586-0120
    Email: [email protected]

    Makana McClellan
    Director of Communications
    Office of the Governor, State of Hawaiʻi
    Cell: 808-265-0083
    Email: [email protected]

    MIL OSI USA News