NewzIntel.com

Category: Economy

  • MIL-OSI USA: U.S. Senators Amy Klobuchar, Tina Smith Announce Funding to Help Minnesota Families and Seniors with Heating Costs Ahead of Winter

    US Senate News:

    Source: United States Senator for Minnesota Amy Klobuchar
    Increased heating assistance was made possible by the Biden-Harris infrastructure law, which both Senators supported
    MINNEAPOLIS, MN – Today, U.S. Senators Amy Klobuchar and Tina Smith (both D-MN), announced over $112 million in federal funding to help families and seniors pay for energy costs this winter. The funding was made possible in part through the Bipartisan Infrastructure Law, which both Klobuchar and Smith helped pass.
    “As Minnesota prepares for winter, families shouldn’t have to choose between heating their homes or buying other necessities,” said Klobuchar. “This federal funding will help families and seniors across our state pay their energy bills and keep their homes warm.”
    “As the temperature starts to drop in Minnesota, everyone should be able to heat their homes and stay warm,” said Smith. “For low-income families, high energy prices can force an impossible choice between heating their homes and other essentials like rent, food, or medicine. I’m proud of our work to secure this funding, which will help families in Minnesota afford their heating costs and utility bills in the coming winter months.”
    “LIHEAP is essential to families who live on a limited income,” said Denise Stewart, Executive Director of Lakes and Pines Community Action Council, a non-profit serving Aitkin, Carlton, Chisago, Isanti, Kanabec, Mille Lacs and Pine Counties. “In today’s economy with the rising cost of energy, housing and food, meeting basic needs is increasingly difficult. LIHEAP allows families and seniors to stay warm in our extremely cold winter months and frees up household funds to ensure other basic needs are met.”
    The funding is issued through the Low-Income Housing Energy Assistance Program (LIHEAP), which provides families with payment assistance to support their home energy needs. LIHEAP can also be used to weatherize homes to make them more energy efficient and mitigate energy emergencies during disasters and extreme weather.
    Individuals interested in applying for energy assistance can visit www.energyhelp.us or call the National Energy Assistance Referral (NEAR) hotline toll-free at 1-866-674-6327. 

    MIL OSI USA News –

  • MIL-OSI Canada: Federal funding to help increase opportunities for women and build a more resilient economy for everyone in Canada

    Source: Government of Canada News (2)

    News release

    November 1, 2024 – Toronto, Ontario — Women and Gender Equality Canada

    Women continue to face persistent pay equity challenges, underrepresentation in high-paying jobs, a disproportionate load of caregiving responsibilities, and a lack of pathways for career growth. Unlocking economic and leadership opportunities for women will lead to a more prosperous and resilient economy for everyone in Canada.

    Today, the Honourable Marci Ien, Minister for Women and Gender Equality and Youth, announced up to $100 million for 163 projects to improve economic and leadership opportunities for women across Canada.

    This funding will address systemic barriers to women’s economic participation and success, including harassment, discrimination, limited access to mentors and networks, and lack of flexible work arrangements. The projects will advance gender equality through one or more of the following ways:

    • Changing gender norms and attitudes by working to change beliefs, assumptions, and stereotypes based on gender and other identity factors.
    • Supporting changes to authority, voices at the table, and decision-making power by working to address power imbalances to ensure women are part of the dialogue and solution.
    • Increasing networks and collaboration by building and strengthening partnerships to work across sectors and break down silos.
    • Encouraging more effective and equitable sharing of resources by sharing, mobilizing, and redistributing resources to support equality. 
    • Changing policies and practices by creating, changing, or removing policies and practices to address sexism and other barriers to gender equality.

    This funding supports Women and Gender Equality Canada’s continued work to advance equality with respect to sex, sexual orientation and gender identity or expression through the inclusion of people of all genders, including women, in Canada’s economic, social, and political life. 

    Quotes

    “Many women continue to face challenges that include balancing caregiving responsibilities, navigating pay inequities, and struggling to access leadership opportunities. These barriers disproportionately impact racialized and underrepresented communities. That is why this $100 million dollar investment to support 163 projects is creating mentorship opportunities, flexible work arrangements, and career pathways – which are all means to increase women’s economic participation. It is our government’s commitment to break through systemic barriers and reflect our belief that every woman deserves the chance to thrive and lead. When women have the opportunities they need to succeed; families and communities are stronger.”

    The Honourable Marci Ien, Minister for Women and Gender Equality and Youth

    “This funding is about unlocking potential—when women thrive, Canada thrives. Despite progress, too many women still face persistent pay gaps, barriers to leadership, and caregiving burdens that limit their opportunities. These projects will break down systemic barriers and build new pathways for women to grow, lead, and succeed. Together, we’re creating a more inclusive and prosperous future for everyone in Canada.”

    Lisa Hepfner, Parliamentary Secretary to the Minister for Women and Gender Equality and Youth

    “This announcement is a crucial step toward breaking down the barriers that continue to hold women back—from persistent pay gaps to underrepresentation in leadership and high-paying jobs. These projects will create real opportunities by supporting mentorship, flexible work arrangements, and inclusive career pathways. They will also challenge outdated norms and empower women to have a voice in decisions that shape our future. When women succeed, families, communities, and our entire country grow stronger and more resilient.”

    Julie Dzerowicz, Member of Parliament for Davenport

    Quick facts

    • Women’s wages have grown steadily since the 1990s, but disparities persist. In 2023, women in Canada earned 0.88 cents for every dollar earned by men, suggesting a gap of 12%. The pay gap is wider for: racialized, Indigenous and immigrant women.

    • Women occupy only 30% of senior management positions and just 35% of other management positions.

    • Women were majority owners of just 17% of small and medium-sized businesses in 2020.

    • Women’s labour force participation reached a record high of 85.7% in July 2023, however women are concentrated in low-wage occupations – 28.2% of women work in the five lowest paid occupations.

    Associated links

    Contacts

    Angie Rutera
    Communications Assistant
    Office of the Minister for Women and Gender Equality and Youth
    Angie.Rutera@fegc-wage.gc.ca

    Media Relations  
    Women and Gender Equality Canada  
    819-420-6530  
    FEGC.Media.WAGE@fegc-wage.gc.ca

    Follow Women and Gender Equality Canada:  

    MIL OSI Canada News –

  • MIL-OSI Canada: Minister Valdez wraps up activities to celebrate Small Business Month and highlights government supports for entrepreneurs

    Source: Government of Canada News (2)

    News release

    November 1, 2024 – Ottawa, Ontario

    The Honourable Rechie Valdez, Minister of Small Business, celebrated Small Business Month (SBM) by meeting with local entrepreneurs and business organizations to highlight the federal government supports that are available to help them thrive.

    Minister Valdez kicked off October by announcing that the federal government has negotiated lower credit card interchange fees by up to 27% for small businesses across Canada. These lower fees for Visa and Mastercard took effect on October 19, 2024. Minister Valdez also announced that the Canada Carbon Rebate will be distributing $2.5 billion to about 600,000 small and medium-sized businesses across Canada where the federal fuel charge applies. The amount is dependent on a business’ number of employees. For example, Ontarian small businesses will receive $401 per employee. Small and medium-sized businesses that filed their taxes before July 15 will receive an automatic payment by the end of this year.

    Throughout SBM, Minister Valdez met with small business owners across the country. She also engaged with diverse groups of entrepreneurs at the Mississauga Board of Trade, the CanadianSME Magazine Small Business Summit, the Casa Foundation for International Development’s Friends of Africa summit, the Elevate Festival, the Alliance of Nigerian Entrepreneurs gathering, the RPA Women Entrepreneur Awards Gala, the Federation of African Canadian Economics’ Small Business Sunday event, the Toronto Small Business Forum, and the Misfit Ventures Misfits Unleashed event.

    During these engagements, Minister Valdez highlighted the federal government’s groundbreaking investments—through programs like the 2SLGBTQI+ Entrepreneurship Program, the Women Entrepreneurship Strategy and the Black Entrepreneurship Program—that are helping fight the systemic barriers under-represented entrepreneurs face. She also spotlighted federal government investments in inclusive venture capital and Futurpreneur, as well as support for Indigenous entrepreneurs.

    Minister Valdez also updated entrepreneurs on federal investments to help small businesses adopt digital tools and innovations, including the $2.4 billion committed in Budget 2024 to secure Canada’s artificial intelligence (AI) advantage. This includes $200 million in the Regional Artificial Intelligence Initiative, which will help bring new AI technologies to market and accelerate AI adoption by small businesses across the country. She also mentioned the Canada Digital Adoption Program, which has helped more than 60,000 small businesses improve their digital capabilities and adopt e-commerce platforms.

    The Minister wrapped up her SBM-related activities on October 30 by announcing a new partnership between the First Nations Health Authority and the CAN Health Network that will help over 200 First Nations communities across British Columbia access health care innovations from Canadian start-ups. Start-ups in the health care sector have expressed that they face unique challenges breaking into the new market and increasing uptake of their technologies. The federal government’s investment in the CAN Health Network is connecting innovative health care providers with promising start-ups that are offering made-in-Canada solutions to meet their unique needs and challenges.

    Quotes

    “Small businesses are the heart of our communities and the backbone of our economy, employing nearly 8 million hard-working Canadians. It was incredible to spend Small Business Month celebrating their invaluable contributions and meeting key organizations that are dedicated to helping entrepreneurs thrive. Our government will continue to have the backs of small businesses from coast to coast to coast, whether they’re just starting out, looking to grow or striving to extend their reach into new markets.”
    – The Honourable Rechie Valdez, Minister of Small Business 

    Quick facts

    • The Canada Carbon Rebate for Small Businesses is a refundable tax credit to return a portion of federal fuel charge proceeds directly to eligible businesses.

      • Businesses will not have to apply for this rebate. The Canada Revenue Agency will determine and automatically issue the rebate amounts for eligible businesses based on the payment rates of each applicable province for the corresponding fuel charge years, as specified by the Minister of Finance.
      • The rebate will be available to eligible Canadian-controlled private corporations that had 499 or fewer employees in Canada throughout the calendar year in which the applicable fuel charge year began.
      • The federal fuel charge currently applies in the provinces of Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan. The Government of Canada does not keep any direct proceeds from pollution pricing. All direct fuel charge proceeds are returned in the province or territory of origin.

    • The Code of Conduct for the Payment Card Industry in Canada was first released in 2010 and was last updated in 2015.

      • All major payment card network operators in Canada incorporate the code into their rules, making it binding on all their network participants: issuers, acquirers and payment processors.
      • More than 1 million businesses that accept payment cards in Canada will benefit from the code revisions. In 2023, these businesses accepted approximately 14.1 billion card payments worth $1.2 trillion.
      • The increased transparency and disclosure elements of the revised code require payment processors to notify eligible businesses if network fee reductions will not be passed on in full. Additionally, payment processors must remind those businesses of their right to terminate their contract, enabling them to switch to a processor that passes on the benefits of rate reductions.
      • Under the existing code, businesses have the right to exit their contracts without penalty if they do not receive the full benefits of certain network fee decreases, such as the upcoming small business interchange reductions. But businesses have not always been aware of this right.

    • Businesses pay fees to process credit card transactions, with the largest component being the interchange fee paid to credit card–issuing financial institutions, such as banks. The federal government has finalized agreements to lower these fees for small businesses starting on October 19, 2024. Visa and Mastercard have agreed to:

      • reduce domestic consumer credit interchange fees for in-store transactions to an annual weighted average interchange rate of 0.95%
      • reduce domestic consumer credit interchange fees for online transactions by 10 basis points, resulting in reductions of up to 7%
      • provide free access to online fraud and cybersecurity resources to help small businesses grow their online sales while preventing fraud and chargebacks
      • allow small businesses to qualify with each credit card network individually

    • Small businesses with an annual Visa sales volume below $300,000 will qualify for the lower interchange fees from Visa, and those with an annual Mastercard sales volume below $175,000 will qualify for the lower fees from Mastercard.

    • Non-profit organizations with transaction volumes below these thresholds will also benefit from reduced rates.

    Contacts

    Callie Franson
    Senior Communications Advisor and Issues Manager
    Office of the Minister of Small Business
    callie.franson@ised-isde.gc.ca

    Media Relations
    Innovation, Science and Economic Development Canada
    media@ised-isde.gc.ca

    Stay connected

    Follow Canada Business on social media.
    X (Twitter): @canadabusiness | Facebook: Canada Business | Instagram: @cdnbusiness

    For easy access to government programs for businesses, download the Canada Business app.

    MIL OSI Canada News –

  • MIL-OSI USA: Scott Statement on the October Jobs Report

    Source: United States House of Representatives – Congressman Bobby Scott (3rd District of Virginia)

    Headline: Scott Statement on the October Jobs Report

    As originally released by the Committee on Education and the Workforce, Democrats

    WASHINGTON –Ranking Member Robert C. “Bobby” Scott (VA-03) released the following statement after the Bureau of Labor Statistics announced that the economy added 12,000 jobs in October, and the unemployment rate remained unchanged at 4.1 percent. To date, President Biden is the first President on record without a month of job loss in the seasonally adjusted data. Every other administration has seen at least one month of job loss.

    “Without question, Americans are better off today, then they were four years ago. Since President Biden took office, the economy has added 16.1 million jobs, inflation has fallen to 2.4 percent over the year, and wages continue to grow, particularly among low-wage workers. Four years ago, the economy was in freefall, Americans were hoarding toilet paper and standing in line at foodbanks. President Trump was on track to achieve the worst job performance in modern history, and the unemployment rate was 6.8 percent, compared to today’s rate of 4.1 percent.

    “The contrast between the records of this administration and the prior administration could not be starker. For example, President Trump is the first president in nearly 100 years to have lost more jobs than he created during his time in office. During President Trump’s tenure, ten months of which he spent mismanaging the COVID-19 pandemic, the economy lost 2.7 million jobs. During President Biden’s time in office, nearly two years of which were spent recovering from the COVID-19 pandemic, the economy has added 16.1 million jobs. That is more jobs than any President has created in four years.

    “The Biden-Harris Administration’s responsible stewardship of the economy and investment in workers has paid off. In the past four years, Democrats ensured working people were not left behind during this country’s economic recovery. But the work is not over. Despite the resilience of the economy, there is more that can be done to lower costs, whether at the grocery store, the pharmacy counter, or when buying a home. Democrats are offering proposals to end price gouging, lower prescription drug costs, expand homeownership, increase the Pell Grant, and lower the cost of childcare, among many other priorities. Moreover, to help families make ends meet, Democrats are proposing to expand the Child Tax Credit, which would provide as much as $300 per month per child.

    “As we look ahead, we remain steadfast in our commitment to safeguarding the rights of workers and fostering an economy that works for everyone. Together with the Biden-Harris Administration and my colleagues in Congress, we will continue to champion policies that empower working families and drive sustainable growth. The path forward is one of opportunity, equity, and shared success for all.”

    MIL OSI USA News –

  • MIL-OSI USA: Governor Cooper Calls on Congressional Leaders to Fully Fund Crime Victims Fund and Support Essential Services for Crime Victims

    Source: US State of North Carolina

    Headline: Governor Cooper Calls on Congressional Leaders to Fully Fund Crime Victims Fund and Support Essential Services for Crime Victims

    Governor Cooper Calls on Congressional Leaders to Fully Fund Crime Victims Fund and Support Essential Services for Crime Victims
    mseets

    This week, Governor Roy Cooper sent a letter to Congressional leaders urging a restoration of full funding for crime victim services. The federal Crime Victims Fund is the primary source of support for millions of crime victims every year and has seen a drastic decline in funding in recent years. This critical funding source supports essential services for crime victims including mental health counseling, legal assistance, replacement of lost wages and temporary housing.

    “Victims and survivors of crime suffer physical, psychological, financial and emotional harm that can severely impact their lives,” said Governor Cooper. “We must ensure full funding of the Crime Victims Fund to provide victims and survivors with essential services.”

    A large portion of funding North Carolina receives from the Crime Victims Fund is administered by the Governor’s Crime Commission. North Carolina received over $100 million in 2018 and is projected to receive less than $5 million for the upcoming funding cycle. This dramatic 95% reduction puts services for crime victims at extreme risk and crime victims will suffer without the help and support they need and deserve.

    “The services we fund through the Crime Victims Fund are essential to helping survivors of child abuse, domestic violence, sexual assault, trafficking, financial fraud, and homicide,” said Caroline Farmer, Executive Director of the Governor’s Crime Commission. “The decline in funding has already reduced our ability to provide these essential programs in North Carolina, and additional cuts will exacerbate the harm our nonprofits, service providers, and ultimately survivors, are facing.”

    Governor Cooper’s 2024-2025 Recommended Budget included $6 million to ensure crime victims receive the most necessary services such as crisis care and legal assistance despite these federal cuts. However, state funding is not enough to make up for the losses of federal funding and action by Congress is needed. In 2021, Congress passed the VOCA Fix to Sustain the Crime Victims Fund Act with bipartisan support. While this law restored some critical funding, it was not sufficient to fully replenish the Crime Victims Fund.

    Read the letter here.

    ###

    Nov 1, 2024

    MIL OSI USA News –

  • MIL-OSI: Natural Gas Services Group, Inc. Announces the Appointment of Jean Holley to its Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    Midland, Texas, Nov. 01, 2024 (GLOBE NEWSWIRE) — Natural Gas Services Group, Inc. (“NGS” or the “Company”) (NYSE: NGS), a leading provider of natural gas compression equipment, technology, and services to the energy industry, announced today that its Board of Directors has appointed Jean Holley as a Director, effective November 1, 2024. In connection with the appointment, the Company increased the size of its Board from six to seven directors.

    “We are excited to welcome Jean to NGS’s Board of Directors,” stated Justin Jacobs, Chief Executive Officer of NGS. “Jean is an accomplished executive with significant expertise across a number of businesses and disciplines which we are confident will serve the Company well. She has served as CIO for several large global businesses and has led digital transformations, turnarounds, operational efficiency plans, M&A, and cybersecurity programs. Further, her role as an independent director and committee member of companies with a rental business model will add great value as we focus on growing our large horsepower rental fleet, expanding our customer base, and optimizing our operations. I look forward to Jean’s guidance and counsel as we work to create meaningful value for NGS shareholders.”

    “I am excited for this opportunity as the Company embarks on such an important growth phase in its corporate evolution,” stated Ms. Holley. “I have been very impressed with NGS’s services, particularly the technology of their units and high levels of service provided to customers, as well as the commitment of the team in executing their large horsepower strategy. I hope to leverage my experience and provide value as it relates to NGS’s technology infrastructure, cybersecurity programs, and data analytic capabilities, all of which are essential in today’s business climate. I believe in NGS’s future and look forward to working with the board and management team to unlock value.”

    “Jean’s addition to the Board of Directors of NGS adds talent that will enhance and support our long-term growth and success,” said Stephen Taylor, Chairman of the Board of NGS. “Her background, expertise and prior board service will blend well with the experience of our present board members. NGS has positioned itself well to execute on our vision and strategy, that being our continued expansion into the large horsepower, infrastructure portion of our industry. Quality additions to our board, like Jean, including expansion of the board to seven directors, support our continuing growth.”

    Ms. Holley is a results-driven business executive with experience successfully leading companies as a Board Director, committee chair, and executive in a wide variety of industries. She is currently on the Board of Directors for Herc Holdings, Inc. (NYSE: HRI), a provider of equipment rentals and services, where she serves as Chairperson of the Compensation and a member of the Nominating and Governance committee. She is also a Board Director for Accord Financial Corp. (TSE: ACD), a leading commercial finance company, and is Chairperson of the Compensation Committee. Previously, Ms. Holley served as Board Director for OneSpan, Inc. (NASDAQ: OSPN), a global provider of enterprise-wide security solutions, also serving as Chairperson of the Nominating and Governance Committee. She has held the title of CIO for several global businesses, and was responsible for all aspects of IT operations, technical services and support, technology trends, and industry futures, including big data/analytics, cybersecurity, digital strategies, and disruptive technologies. Ms. Holley’s numerous accolades include “Georgia CIO of the Year,” and Chicago’s Spotlight Award. She was listed by ComputerWorld as a top CIO, and she was inducted into the Women in Science & Engineering Hall of Fame. Ms. Holley holds a BS from Missouri University of Science & Technology and an MS from Illinois Institute of Technology.

    About Natural Gas Services Group, Inc. (NGS): NGS is a leading provider of natural gas compression equipment, technology, and services to the energy industry. The Company manufactures, fabricates, rents, sells, and maintains natural gas compressors for oil and natural gas production and plant facilities. NGS is headquartered in Midland, Texas, with a fabrication facility located in Tulsa, Oklahoma, a rebuild shop located in Midland, Texas, and service facilities located in major oil and natural gas producing basins in the U.S. Additional information can be found at www.ngsgi.com.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company’s strategy and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2023 and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, fundamentals of the compression industry and related oil and gas industry,  compressor demand assumptions, overall industry outlook, the ability of the Company to capitalize on any potential opportunities and general economic conditions.

    For More Information, Contact:

    Anna Delgado, Investor Relations

    (432) 262-2700

    ir@ngsgi.com www.ngsgi.com

    The MIL Network –

  • MIL-OSI USA: Governor Parson Congratulates Missouri Higher Education Institutions on Advancing in NSF Engines Competition

    Source: US State of Missouri

    NOVEMBER 1, 2024

    Jefferson City — Today, Governor Mike Parson congratulated four Missouri higher education institutions upon advancing, as part of teams, in the U.S. National Science Foundation’s Regional Innovation Engines (NSF Engines) program. The advancing institutions include the Missouri University of Science and Technology (Missouri S&T), University of Missouri–Kansas City (UMKC), University of Missouri–St. Louis (UMSL), and Washington University in St. Louis (WashU).

    “We are excited that out of 71 teams advancing in this national competition, Missouri is home to four of them,” Governor Parson said. “Missouri’s technology sector is budding and growing, and these teams will help us continue the exceptional work we have done to develop our workforce, strengthen our infrastructure, and emerge as a technological leader. We congratulate our higher education institutions, as well as their application partners, on the incredible work that has gotten them to this point, and we trust that Missouri innovation will win the day, potentially securing these NSF Engine designations for our state.”

    “We are proud that researchers at UMKC, S&T, and UMSL are among just 71 teams across the country invited to submit full proposals for the NSF Engines program,” University of Missouri President Mun Choi said. “Key to their success is Governor Parson and his incredible commitment to innovation, workforce development, and infrastructure growth. We are grateful for his strong support and for this opportunity to impact our state and region.”

    “WashU and our partner BioSTL are proud of our long-standing relationship with the NSF and pleased to be among the Missouri institutions invited to submit a full proposal for the engines competition,” WashU Chancellor Andrew Martin said. “We’re grateful to the NSF for its consideration, as well as to Governor Parson and our partners in Jefferson City whose support allows us to push the boundaries of what’s possible to benefit all Missourians. We’re excited for the opportunity to contribute to our regional workforce ecosystem with this potential federal funding.”

    “We are proud that these four institutions are proposing innovative approaches to meet emerging technological needs of key industries,” Dr. Bennett Boggs, Commissioner of the Missouri Department of Higher Education & Workforce Development, said. “Their creative efforts support our employers and present expanded opportunities for Missourians to access family-sustaining jobs.”

    The four Missouri proposals are listed below:

    • Missouri S&T – Engine for Midwest Mobility Innovation and Technology
    • UMKC – Critical Materials Crossroads Energy Materials Ecosystem
    • UMSL – Reshoring KSM and API Manufacturing Through Innovation
    • WashU – Neuroscience Engine to Unlock Regional Opportunity

    Under the current NSF Engines funding opportunity, organizations were required to submit a letter of intent to demonstrate their interest in applying. NSF published data from the letters in July 2024. Teams were then required to submit preliminary proposals by August 6, describing how their proposed NSF Engines aim to build partnerships that will advance use-inspired and translational research in key technology areas and address pressing challenges while creating new pathways for the workforce in their regions. The 71 NSF Engines teams that have advanced will submit full proposals by February 2025.

    The NSF Engines program aims to foster cross-sector connections, particularly engaging organizations that may not typically work together or submit to NSF funding opportunities. Nonprofits, foundations, state and local governments, tribal nations, community organizations and investors have all expressed interest in connecting with emerging NSF Engines. By publishing the 71 invited teams, NSF aims to create opportunities across the U.S. for additional individuals and organizations to connect with prospective submitters (within one’s region of service and beyond) to share expertise, exchange resources, provide capital and more.

    About NSF Engines

    Launched by the NSF Directorate for Technology, Innovation and Partnerships, the NSF Engines program envisions flourishing regional innovation ecosystems all across the country, providing a unique opportunity to accelerate technology development and spur economic growth in regions that have not fully participated in the technology boom of the past few decades. Each NSF Engine comprises robust partnerships rooted in scientific and technological innovation to positively impact the economy within a geographic region, address societal, national, and geostrategic challenges, and ultimately advance U.S. competitiveness and security.

    MIL OSI USA News –

  • MIL-OSI USA: $435 Million for Water Infrastructure Improvements

    Source: US State of New York

    Governor Kathy Hochul today announced that more than $435 million is being awarded to 102 critical water infrastructure projects across New York State through the Water Infrastructure Improvement and Intermunicipal Grant programs. The grants awarded by the New York State Environmental Facilities Corporation (EFC) deliver on Governor Kathy Hochul’s 2024 State of the State to help small, rural and disadvantaged communities with their water infrastructure needs. With critical financial support for local governments across New York, Governor Hochul is laying the foundation for a healthier, more resilient future, ensuring every New Yorker has access to safe and clean water, while creating jobs and boosting the economy.

    “New York is committed to funding water infrastructure upgrades because every person has a right to clean water,”  Governor Hochul said.  “With this funding for communities across the State, we are providing critical resources to local economies, creating jobs and safeguarding the health and well-being of all New Yorkers.”

    The  complete list of WIIA and IMG awardees, including an interactive map and projects by region, is available on EFC’s website. 

    These grants will support water infrastructure projects totaling more than $1 billion that safeguard drinking water from the risk of toxic chemicals, upgrade and replace water and wastewater infrastructure in a manner that will increase community resilience, regionalize water systems, support local economies, and are critical to protecting public health and the environment. The ratepayers are projected to save an estimated $1 billion in costs the communities would have incurred if they had financed the projects on their own.

    Environmental Facilities Corporation President & CEO Maureen A. Coleman said,  ”EFC’s grants are a hallmark of New York State’s robust, nation-leading investment in the environment, which will help municipalities affordably invest in water infrastructure improvement projects. These grants will help get shovels in the ground for 102 water quality projects across New York State. EFC is committed to awarding grant funding to the communities that need it most, as demonstrated by the dedicated work of our Community Assistance Teams and the award of enhanced grants totaling $126.7 million amount to small, rural and disadvantaged communities.”

    This round of WIIA/IMG boasts improvements announced as part of Governor Hochul’s 2024 State of the State to maximize benefits for rural and disadvantaged communities.

    Enhanced Awards for 32 Projects in Small, Rural Communities
    Even with extensive financial support from the State, some municipalities are left passing a large financial burden to their ratepayers. To alleviate this burden on small, rural and disadvantaged communities, Governor Hochul directed EFC to increase grants for small, rural communities from 25 percent to 50 percent of net eligible project costs. Examples of enhanced awards include:

    • Town of Peru (North Country) is awarded $11 million for upgrades to the Town of Peru Water Pollution Control Plant (WPCP), with a focus on effluent disinfection.
    • Saint Regis Mohawk Tribe is awarded $9.8 million for upgrades to the wastewater treatment plant.
    • Village of Richfield Springs (Mohawk Valley)  is awarded $9.1 million for improvements to the wastewater treatment plant and sewer rehabilitation.
    • Town of Ellicott (Western NY)  is awarded $3.2 million for the expansion of sewer service in the area around Fluvanna Avenue.

    EFC’s Community Assistance Teams Helped Municipalities Secure Grants
    Small, rural and disadvantaged communities are particularly impacted by deteriorating water infrastructure and emerging contaminants and often do not possess the resources and capacity necessary to advance a project for infrastructure improvement. Governor Hochul expanded EFC’s  Community Assistance Teams program that launched in 2023 to provide essential support for updating New York’s critical water infrastructure. Thirteen municipalities that worked with EFC through this critical initiative received grants, four of which are receiving enhanced awards:

    • Town of Mina (Western NY) is awarded $13 million for the construction of a new sanitary sewer collection system around Findley Lake and a new wastewater treatment plant to treat sewage from the new system.
    • Town of Potsdam (North Country) is awarded $1.4 million for the construction of a new sewer district.
    • Village of Parish (Central NY) is awarded $1 million for wastewater treatment plant improvements.
    • Town of Wilna (North Country) is awarded $154,527 for wastewater treatment facility upgrades.

    Awards Totaling $66 million To Protect Drinking Water From Emerging Contaminants
    Continuing New York’s national leadership on addressing the threat of PFAS, Governor Hochul increased awards for emerging contaminant projects from 60 percent to 70 percent of net eligible project costs. This change will help ensure cost is not a barrier for communities working to make life-saving investments that eliminate risks to their drinking water supplies. Examples of emerging contaminants projects include:

    • Village of Hempstead (Long Island)  is awarded $37 million for water treatment improvements to remove 1,4 Dioxane and PFAS.
    • Town of North Salem (Mid-Hudson)  is awarded $592,074 for the Pabst Water System PFOS Mitigation project.
    • Dutchess County Water & Wastewater Authority (Mid-Hudson)  is awarded $15 million for water system interconnection to remedy PFAS-Contaminated source water.
    • Suffolk County Water Authority (Long Island)  is awarded a total of $4.9 million for four projects using advanced oxidation to remove 1,4-dioxane from groundwater.

    EFC administers the WIIA and IMG programs in coordination with the Department of Health (DOH). The State has awarded more than $2.9 billion in water infrastructure grants through EFC since 2015.

    Department of Environmental Conservation Interim Commissioner Sean Mahar said, “Under Governor Hochul’s leadership, New York State continues to prioritize investments in clean water for communities statewide. Today’s award of $435 million will support more than 100 water projects across the State to protect public health and the environment. The investments, bolstered by EFC’s assistance to rural, smaller and disadvantaged communities, are advancing effective water infrastructure improvements that will benefit New Yorkers.”

    State Commissioner of Health Dr. James McDonald said, “Governor Hochul is ensuring that New Yorkers throughout the State have access to clean drinking water, the foundation to good health. The financial support in this latest announcement will help municipalities make critical upgrades to their water systems, something they might not be able to afford on their own, and thus help to achieve greater health equity in our great state. New York State will continue to work with communities to ensure their water is safe to drink today and into the future.”   

    Secretary of State Walter T. Mosley said, “Clean water infrastructure is vital to public health and New York State is making a historic economic commitment for communities to address drinking water infrastructure needs. We thank Governor Hochul for her assistance of $435 million that will open doors for small, rural and disadvantaged communities to have an infusion of funds to get shovels in the ground to help create environmentally sound cities and towns for present and future generations.”

    Majority Leader Andrea Stewart-Cousins said, “This $435 million in State grants represents a transformative investment in strengthening our water infrastructure, particularly in small, rural and disadvantaged communities. I am proud to have worked with Governor Hochul, Members of the Senate Majority and our partners in the Assembly, to secure this essential funding, which includes the $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022, and $500 million for clean water infrastructure allocated in the 2024-2025 Budget. By making this investment in our small, rural and disadvantaged communities, we are not only empowering them to upgrade their infrastructure, but also improving public health, saving ratepayers money, building climate resilience and strengthening our economy.”

    State Senator Pete Harckham said, “This major investment from the State ensures public health standards while supporting local businesses. Maintaining safe, accessible drinking water sources and supply systems is integral to future growth and prosperity, and I thank Governor Hochul, my colleagues in the State Legislature and the New York State Environmental Facilities Corporation for making the financial commitment to see this through.”

    Assemblymember Deborah J. Glick said, “Water infrastructure improvements are a crucial component of protecting the health of New Yorkers and the environment. With the continued threats posed by PFAS and other chemical contamination, the use of lead service lines and increasingly destructive storms and flooding, we must remain focused on funding projects such as these around the State. I thank Governor Hochul and EFC for prioritizing water infrastructure improvement and look forward to working together to secure more funding next year to continue this critical work.”

    New York League of Conservation Voters President Julie Tighe said, “Water is our most precious resource and investing in clean water infrastructure is absolutely critical for the health of all New Yorkers. We congratulate all of the water infrastructure awardees and commend Governor Hochul for her ongoing commitment to clean water and public health.”

    The Nature Conservancy’s New York Policy and Strategy Director Jessica Ottney Mahar said, “The Nature Conservancy commends Governor Hochul for dedicating significant resources to protect clean drinking water and update critical infrastructure. State funding enables New York communities to protect public health, improve quality of life and strengthen local economies. The need for clean water is universal; every person, every animal, every community depends on it, which is why public investments like this are essential.”

    Citizens Campaign for the Environment Executive Director Adrienne Esposito said, “Filtering out toxic PFAS and 1,4 Dioxane chemicals is one of the few things that everyone can enthusiastically support this year. These grants mean our drinking water will be safer, cleaner and more reliable, and that is why the public strongly supports clean water funding. Thank you to Governor Hochul for dispersing clean water funding in a timely and strategic way that protects public health and our environment.”

    Environmental Advocates NY Senior Director of Clean Water Rob Hayes said, “We applaud Governor Hochul for delivering a transformative round of water infrastructure funding. These grants are a win-win for our economy and environment, protecting clean water and creating thousands of good-paying union jobs. We are especially thankful for increased funding to help communities remove toxic PFAS from drinking water, protecting public health. With this funding, the Governor is demonstrating her commitment to helping communities across the State be stronger, healthier and more affordable.”

    New York’s Commitment to Water Quality
    New York State continues to increase its nation-leading investments in water infrastructure, including more than $2.2 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2024 alone. With $500 million allocated for clean water infrastructure in the FY25 Enacted Budget announced by Governor Hochul, New York will have invested a total of $5.5 billion in water infrastructure between 2017 and this year. Governor Hochul’s State of the State initiatives are ensuring ongoing coordination with local governments and helping communities to leverage these investments. The Governor increased WIIA grants for wastewater projects from 25 to 50 percent of net eligible project costs for smaller, disadvantaged communities. The Governor also expanded EFC’s Community Assistance Teams to help small, rural and disadvantaged communities leverage this funding and address their clean water infrastructure needs. Any community needing assistance with water infrastructure projects is encouraged to  contact EFC.

    MIL OSI USA News –

  • MIL-OSI USA: $23.5 Million to Reduce Crime in Syracuse Area

    Source: US State of New York

    Governor Kathy Hochul today highlighted $23.5 million in state public safety investments in the City of Syracuse and Onondaga County for law enforcement agencies and community-based organizations, including $2.5 million in new funding to establish diversion programs to strengthen services and connect justice-involved young people with education and employment opportunities. At the same time, Governor Hochul detailed the state’s record-level, $3.2 million investment through the state’s Gun Involved Violence Elimination initiative, $3.2 million in technology and equipment funding for county law enforcement agencies, and $2 million in second-year funding through Project RISE to support community-based organizations addressing the impact of gun violence and providing youth opportunities.

    “Public safety is my number one priority, and we are doubling down our efforts to keep residents of Syracuse and Onondaga County safe by giving more support to law enforcement, bolstering gun violence prevention initiatives and expanding youth diversion programs,” Governor Hochul said. “By utilizing a multi-pronged approach centered around local needs, we are working to rein in criminal activity and create safer neighborhoods and communities.”

    After meeting with local elected and community leaders, Governor Hochul detailed the state’s investment in the City of Syracuse and Onondaga County, administered by the state Division of Criminal Justice Services (DCJS). They then identified solutions to address a spike in property crime involving teenagers that is driving an overall increase in crime in Syracuse through the first nine months of the year as compared to the same time in 2023.

    The City of Syracuse will receive $1.5 million in new funding to establish a new program dedicated to providing justice-system involved youth with structured classes to develop skills, support to navigate the education and justice systems, and internships and other resources with the goal of avoiding further criminal justice system involvement.

    In addition, Governor Hochul will dedicate an additional $1 million to enhance youth justice alternatives and diversion programs and services within the Onondaga County Probation Department. This investment will be paired with dedicated technical assistance from DCJS to help build the capacity of local government and community-based organizations to intervene in the lives of these young people, change their thinking and behavior, and promote positive development.

    Public safety is my number one priority, and we are doubling down our efforts to keep residents of Syracuse and Onondaga County safe by giving more support to law enforcement, bolstering gun violence prevention initiatives and expanding youth diversion programs.”

    Governor Kathy Hochul

    New York State Division of Criminal Justice Services Commissioner Rossana Rosado said, “We have made tremendous progress in driving down gun violence and violent crime in New York State, but communities across the state each have their own unique challenges. Governor Hochul has made it a priority to ensure that DCJS has a record amount of resources available to help our local law enforcement and community partners develop comprehensive strategies and programs to address community-specific spikes in crime rather than relying on a one-size-fits-all approach. We create stronger, safer neighborhoods by listening to, learning from, and investing in our local partners.”

    These two new investments are integral to Governor Hochul’s comprehensive plan to improve public safety, address spikes in crime and further drive down gun violence by recognizing the importance of a multifaceted approach to the problem. By engaging, supporting and funding local law enforcement agencies and community partners; leveraging technology and data; and implementing evidence-based strategies, the state can help localities address their unique crime problems while healing and strengthening neighborhoods and families.

    New York State Police Superintendent Steven G. James said, “The New York State Police is committed to assisting our law enforcement partners in fighting against the widespread criminality in Syracuse and Onondaga County. I appreciate Governor Hochul’s leadership on this public safety mission, and for providing the necessary resources to reduce crime and gun violence to build safer communities.”

    Syracuse Mayor Ben Walsh said, “Syracuse can’t do this work alone; our community must collaborate to address issues of juveniles involved in the Justice system. We’re focused on the balance of holding people accountable, but recognizing that young people need greater support. Diversionary and intervention programs are critical to providing support, giving our youth access to the resources they need, and providing them the skills to be successful in life. Once again, when we’ve asked Governor Hochul to provide assistance for our community, she’s delivered, and I thank her for her attention to the needs of Syracuse.”

    These initiatives in the City of Syracuse and Onondaga County include:

    Project RISE (Respond, Invest, Sustain, Empower): $2 million to 11 community-based organizations in Syracuse that provide mental health services, crisis intervention, mentoring, and vocational training and employment, financial literacy, and conflict resolution, among other services to youth and families at risk or impacted by violence. This is the second year that Syracuse has received funding through the initiative, which engages with community stakeholders to identify and support smaller, grassroots organizations doing life-changing work that haven’t had the administrative capacity to receive state funding. Project RISE will fund three lead organizations – the Center for Community Alternatives and Hillside Children’s Center ($500,000 each) and On Point for College ($1 million) – that will share that funding with eight smaller organizations: Rise Above Poverty, Image Initiative, Fearless Queens, Project SAVE, Diversify NY, Half Hood Half Holistic, Good Life Youth Foundation and Klink Kids.

    Gun Involved Violence Elimination (GIVE) Initiative and the Central New York Crime Analysis Center: $3.2 million to the Onondaga County GIVE partners, the Syracuse Police Department and county district attorney’s office, probation department, and sheriff’s office, and $1.1 million to support the Crime Analysis Center, one of 11 in network funded and supported by the state in partnership with local law enforcement agencies.

    The Syracuse Police Department is one of 28 departments in 21 counties receiving nearly $36 million through GIVE, which requires agencies to use evidence-based strategies to reduce shootings and other violent crime. Last year alone, staff at the Central New York Crime Analysis Center provided investigative support in real-time and handled 12,443 service requests, providing data, information and investigative leads that allowed law enforcement to solve homicides, car and retail theft rings, and remove illegal guns from county streets. All told, the state invests $18 million to support the Crime Analysis Center Network.

    These investments are producing results: Shooting incidents involving injury in Syracuse declined 29 percent when comparing the first nine months of 2024 to the same time last year, and 44 percent when compared to the five-year average (2019-2024). Violent crime in Syracuse decreased 5 percent from January – August 2024, as compared to the same eight months last year; this is the most recent data available.

    SNUG Street Outreach Program: Nearly $2.3 million to Syracuse Community Connections, and Upstate Medical Center to fund outreach workers, hospital responders, social workers and case managers who are credible messengers and work to reduce shootings and save lives. SNUG uses a public health approach to address gun violence by identifying the source, interrupting transmission, and treating individuals, families and communities affected by the violence. Syracuse is one of 14 communities across the state to participate in the program. The state’s investment in SNUG totals $20.3 million this year.

    Law Enforcement Technology and Equipment (LETECH): Nearly $3.2 million to14 police agencies in Onondaga County for new technology and equipment to prevent and solve crimes and improve public safety. This funding supports a variety of equipment and technology, such as license plate readers, mobile and fixed camera systems, computer-aided dispatch systems, software, unmanned aerial vehicles, gunshot detection devices and smart equipment for patrol vehicles and police officers.

    Statewide Targeted Reductions in Intimate Violence (STRIVE) initiative: Nearly $1.9 million to Onondaga County. New York City and Onondaga and 19 other counties outside of the five boroughs are sharing a record-level, $35 million to strengthen the public safety response to intimate partner abuse and domestic violence and better support survivors. Modeled after GIVE, STRIVE requires law enforcement and community partners in each county to use evidence-based strategies and ensure that community members and programs that serve victims and survivors are actively involved in strategy selection and implementation. One or more of the following strategies must be used: domestic violence high-risk team model, lethality assessment program, or intimate partner violence intervention.

    The Division of Criminal Justice Services provides critical support to all facets of the State’s criminal justice system, including, but not limited to: training law enforcement and other criminal justice professionals; analyzing statewide crime and program data; providing research support; and managing criminal justice grant funding. Follow DCJS on Facebook, Instagram and X.

    MIL OSI USA News –

  • MIL-OSI USA: Merkley, Wyden Announce $10.1 Million Federal Investment for Tualatin Mountain Forest Project

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)
    November 01, 2024
    Washington, D.C. – Oregon’s U.S. Senators Jeff Merkley and Ron Wyden announced today the U.S. Forest Service (USFS) is awarding $10,180,000 to boost the Tualatin Mountain Forest Project through the U.S. Department of Agriculture’s (USDA) Forest Legacy Program.
    This new federal funding from the historic Inflation Reduction Act—the largest investment ever to tackle climate chaos—builds off the $3.63 million award Merkley and Wyden announced for the project earlier this year. The Tualatin Mountain Forest Phase 3 project promotes sustainable forest management, climate resiliency, conservation efforts, watershed health, and recreation activities for this economically and ecologically significant forestland in Multnomah County. 
    “Oregon’s forests must be conserved to ensure our lands remain healthy, well-managed, and accessible to Oregonians, visitors, and future generations,”?said Merkley, who serves as chair of the Senate Interior Appropriations Subcommittee that funds the U.S. Forest Service?and secured these funds in the Fiscal Year 2024 Appropriations Bill.?“I’ve long championed the Forest Legacy Program to boost vital conservation activities like the Tualatin Mountain Forest Project. This over $10 million in federal funding is essential to conserving the Tualatin Mountain Forest for generations to come, and I will keep fighting to ensure the federal government does its part to create and conserve healthy, resilient forests across our state and nation.
    “Oregonians treasure our opportunities across the state to enjoy the outdoors, and preserving forests in a balanced fashion plays a pivotal role in that dynamic,” said Wyden. “I’m glad the Tualatin Mountain Forest Project has earned these additional federal investments that I worked to secure. And I’ll keep battling for similar federal resources throughout our state.”
    The latest award to the Tualatin Mountain Forest Project is a part of more than a $265 million investment by the Forest Service to conserve nearly 335,000 acres of ecologically and economically significant forestlands across the nation. This latest round of funding is going toward 21 projects in 17 states to conserve working forests that support rural economies. In 2024 alone, the Forest Service has invested nearly $420 million to conserve more than 500,000 acres through the Forest Legacy Program.
    Information about the Tualatin Mountain Forest Phase 3 award can be found below: 
    Located 17 miles outside Portland, the Tualatin Mountain Forest (TMF) Phase 3 will be managed as a research forest and will benefit nearby disadvantaged communities and Portland Metro Area’s recreation economy by creating new public access to over 20 miles of existing trails. TMF will serve as a national model of an actively managed research forest balancing financial productivity, carbon sequestration, healthy watershed, public access, recreation, and diverse plant and wildlife communities, including Oregon’s diminishing oak woodlands.
    “Through this U.S. Forest Legacy Program grant, we’re one step closer to ensuring that this remarkable landscape remains a resilient and accessible natural resource for all—protecting critical wildlife habitat, water quality, and expanding equitable recreation opportunities,” said Kristin Kovalik, Oregon Program Director for Trust for Public Land. “TPL is grateful for Senators Merkley and Wyden’s continued support in conserving working forests that are essential to the livelihoods of timber-dependent communities and critical for environmental sustainability.”

    MIL OSI USA News –

  • MIL-OSI USA News: Notice to the Speaker of the House and President of the Senate on the Continuation of the National Emergency With Respect to  Iran

    Source: The White House

         On November 14, 1979, by Executive Order 12170, the President declared a national emergency with respect to Iran pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) and took related steps to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by the situation in Iran.

         Our relations with Iran have not yet normalized, and the process of implementing the agreements with Iran, dated January 19, 1981, is ongoing.  For this reason, the national emergency declared on November 14, 1979, and the measures adopted on that date to deal with that emergency, must continue in effect beyond November 14, 2024.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency with respect to Iran declared in Executive Order 12170.

         The emergency declared by Executive Order 12170 is distinct from the emergency declared in Executive Order 12957 on March 15, 1995.  This renewal, therefore, is distinct from the emergency renewal of March 12, 2024.

         This notice shall be published in the Federal Register and transmitted to the Congress.

                                   JOSEPH R. BIDEN JR.

    THE WHITE HOUSE,

        November 1, 2024.

    MIL OSI USA News –

  • MIL-OSI Security: Former Miami-Dade Corrections Officer Pled Guilty to $150,000 COVID-19 Fraud

    Source: United States Department of Justice (National Center for Disaster Fraud)

    MIAMI – Yesterday, Daniel Fleureme, 56, of Miami-Dade County, a former Miami-Dade Corrections and Rehabilitation Department (MDCRD) Corrections Officer, pled guilty to wire fraud for defrauding a COVID-19 relief program by fraudulently obtaining an Economic Injury Disaster Loan from the U. S. Small Business Administration (SBA).

    The Coronavirus Aid, Relief and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act were Economic Injury Disaster Loans (EIDLs) to eligible small businesses experiencing substantial financial disruptions. These EIDLs were provided directly to borrowers by the SBA.

    On July 27, 2020, Fleureme, while he was employed full-time by MDCRD as a Corrections Officer, submitted to the SBA a false and fraudulent EIDL application claiming to be the 100% owner of a sole proprietorship operating under the company legal and DBA names of “Daniel Fleureme.” In this fraudulent application, Fleureme claimed that he had owned the business since its creation on Feb. 15, 2017, and stated that the business had three employees as of Jan. 31, 2020. Fleureme’s EIDL application also falsely certified that for the 12-month period prior to Jan. 31, 2020, his sole proprietorship had gross revenues of $450,000 and a cost of goods sold of only $97,000. As a result of this fraudulent EIDL application, Fleureme received approximately $150,000 in EIDL proceeds from the SBA.

    He is scheduled to be sentenced on Jan. 7, 2025, at 11:00 a.m., before U.S. District Judge Jose E. Martinez in Miami. Fleureme faces up to 20 years in prison for the wire fraud conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney for the Southern District of Florida Markenzy Lapointe and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (M-DC OIG), and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, made the announcement.

    The FBI’s Miami Area Corruption Task Force, which includes task force officers from the M-DC OIG, working in conjunction with SBA OIG, investigated the case.  Assistant U.S. Attorney Edward N. Stamm is prosecuting the case.

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

    On Sept. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud.  The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

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

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20407.

    ###

    MIL Security OSI –

  • MIL-OSI: First National Corporation Reports Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    STRASBURG, Va., Nov. 01, 2024 (GLOBE NEWSWIRE) — First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), reported unaudited consolidated net income of $2.2 million and basic and diluted earnings per common share of $0.36 for the third quarter of 2024 and adjusted net income(1) of $2.4 million and adjusted basic and diluted earnings per common share(1) of $0.39.

    (Dollars in thousands, except earnings per share)   Three Months Ended  
        Sept 30, 2024     Jun 30, 2024     Sept 30, 2023  
    Net income   $ 2,248     $ 2,442     $ 3,121  
    Basic and diluted earnings per share   $ 0.36     $ 0.39     $ 0.50  
    Return on average assets     0.62 %     0.68 %     0.91 %
    Return on average equity     7.28 %     8.31 %     10.96 %
                             
    Non-GAAP Measures:                        
    Adjusted net income(1)   $ 2,448     $ 3,008     $ 3,121  
    Adjusted basic and diluted earnings per share(1)   $ 0.39     $ 0.48     $ 0.50  
    Adjusted return on average assets(1)     0.67 %     0.84 %     0.91 %
    Adjusted return on average equity(1)     7.93 %     10.23 %     10.96 %
    Adjusted pre-provision, pre-tax earnings(1)   $ 4,712     $ 4,092     $ 3,952  
    Adjusted pre-provision, pre-tax return on average assets(1)     1.29 %     1.14 %     1.16 %
    Net interest margin(1)     3.43 %     3.40 %     3.35 %
    Efficiency ratio(1)     67.95 %     70.65 %     70.67 %

    *See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliations” for additional information and detailed calculations of adjustments.

    “During the third quarter the company saw continued improvement in net interest margin thanks to proactive deposit pricing boosted by sticky noninterest-bearing deposits continuing to represent 31% of total deposits,” said Scott C. Harvard, President and CEO. “We also benefited from a 16% increase in ATM and check card fees and an 8% increase in wealth management fees in the quarter. During the quarter loans acquired from third party lenders continued to be a drag on what otherwise was excellent financial performance, with an adjusted pre-provision, pre-tax return on average assets of 1.29% for the period. We continue to be excited about the recent acquisition of Touchstone Bankshares, Inc., which closed on October 1, and look forward to integrating our two companies and building value for our shareholders.”

    THIRD QUARTER HIGHLIGHTS

    Key highlights of the three months ending September 30, 2024, are as follows. Comparisons are to the three-month period ending June 30, 2024, unless otherwise stated:

      ● Net interest margin(1) continued to improve to 3.43%
      ● Loan balances increased by 2%, annualized
      ● Noninterest-bearing deposits were stable at 31% of total deposits
      ● Noninterest income increased by 19%
      ● Adjusted ROA and ROE(1) of 0.67% and 7.93% respectively
      ● Tangible book value per share(1) increased to $19.37 from $17.38 one year ago


    MERGER WITH TOUCHSTONE BANKSHARES, INC.

    The Company completed the acquisition of Touchstone Bankshares, Inc. (“Touchstone”) with and into the Company, effective October 1, 2024 (the “Merger”). Immediately following the Merger, Touchstone Bank, the wholly owned subsidiary of Touchstone, was merged with and into First Bank. Pursuant to the previously announced terms of the Merger, each outstanding share of Touchstone common stock and preferred stock (on an as-converted, one-for-one basis, which shares of preferred stock converted automatically to common stock at the effective time of the Merger) received 0.8122 shares of the Company’s common stock.

    Following the Merger, the former branches of Touchstone Bank assumed in the Merger continued to operate in Virginia as Touchstone Bank, a division of First Bank, and, in North Carolina, as Touchstone Bank, a division of First Bank, Strasburg, Virginia, until the systems integration is completed in February 2025. With the addition of Touchstone, the Company would have had approximately $2.1 billion in assets, $1.5 billion in loans and $1.8 billion in deposits on a combined pro-forma basis as of September 30, 2024. The combined company delivers banking services through thirty-three branch offices in Virginia and North Carolina and three loan production offices, in addition to its full complement of online banking services. During the third quarter of 2024, the Company incurred pre-tax merger costs of approximately $219 thousand related to the Merger. Effective October 1, 2024, common stock outstanding of First National Corporation totaled 8,970,345.

    NET INTEREST INCOME

    Net interest income increased $255 thousand, or 2%, to $11.7 million for the third quarter of 2024 compared to the second quarter of 2024. Total interest income increased by $389 thousand, or 2%, and was partially offset by a $134 thousand, or 2%, increase in total interest expense. The net interest margin(1) increased to 3.43%, up from 3.40% for the second quarter.

    The $389 thousand increase in total interest income was attributable to a $475 thousand increase in interest and fees on loans, which was partially offset by a $43 thousand decrease in interest income on securities and a $41 thousand decrease in interest on deposits in banks. The increase in interest and fees on loans was attributable to a 9-basis point increase in the yield on the loan portfolio and a $9.2 million increase in the average balance of loans. The decrease in interest income on deposits in other banks was attributable to a $2.9 million decrease in average balances. The decrease in interest income on securities was attributable to a $1.7 million decrease in the average balance of total securities and an 8-basis point decrease in yield. The yield on total earning assets increased to 5.08% from 5.03% in the second quarter.

    The $134 thousand increase in total interest expense was primarily attributable to a $138 thousand increase in interest expense on deposits. The increase in interest expense on deposits resulted from a $933 thousand increase in the average balance of interest-bearing deposits and a 4-basis point increase in cost. The total cost of funds was 1.72% for the third quarter of 2024, which was a 3-basis point increase compared to the second quarter of 2024.
      
    NONINTEREST INCOME

    Noninterest income totaled $3.2 million for the third quarter of 2024, which was a $517 thousand, or 19%, increase from the second quarter of 2024 and was attributable to increases in all income categories. ATM and check card fees and fees for other customer services increased $125 thousand and $98 thousand, respectively. There were also increases in wealth management fees, service charges on deposit accounts, and brokered mortgage fees of $73 thousand, $63 thousand, and $60 thousand, respectively.

    NONINTEREST EXPENSE

    Noninterest expense totaled $10.5 million for the third quarter of 2024, which was a decrease of $200 thousand, or 2%, compared to the second quarter of 2024. The decrease was primarily attributable to a $528 thousand decrease in legal and professional fees, which was a result of lower merger-related expenses in the third quarter compared to the prior period. Merger expenses totaled $219 thousand for the third quarter of 2024 compared to $571 thousand in the second quarter of 2024.

    ASSET QUALITY

    Overview

    Loans that were past due greater than 30 days and still accruing interest as a percentage of total loans were 0.24% on September 30, 2024, 0.24% on June 30, 2024, and 0.18% on September 30, 2023. Nonperforming assets (“NPAs”) as a percentage of total assets decreased to 0.41% on September 30, 2024, compared to 0.59% on June 30, 2024, and increased from 0.23% on September 30, 2023. Annualized net charge-offs as a percentage of total loans were 0.63% for the third quarter of 2024, 0.19% for the second quarter of 2024 and 0.03% for the third quarter of 2023. The allowance for credit losses on loans totaled $12.7 million, or 1.28% of total loans on September 30, 2024, $12.6 million, or 1.27% of total loans on June 30, 2024, and $8.9 million, or 0.93% of total loans on September 30, 2023.

    Past Due Loans

    Loans past due greater than 30 days and still accruing interest totaled $2.4 million on September 30, 2024, $2.4 million on June 30, 2024, and $1.8 million on September 30, 2023. There were no loans greater than 90 days past due and still accruing on September 30, 2024 and June 30, 2024, compared to $370 thousand on September 30, 2023.

    Nonperforming Assets

    NPAs decreased to $6.0 million on September 30, 2024 from $8.5 million on June 30, 2024. NPA’s totaled $3.1 million on September 30, 2023. NPA’s represented 0.41%, 0.59%, and 0.23% of total assets, respectively. The NPAs were primarily comprised of commercial and industrial loans.

    Net Charge-offs

    Net charge-offs totaled $1.6 million for the third quarter of 2024, $482 thousand for the second quarter of 2024, and $83 thousand for the third quarter of 2023.

    Provision for Credit Losses

    The provision for credit losses totaled $1.7 million for the third quarter of 2024, $400 thousand for the second quarter of 2024, and $100 thousand in the third quarter of 2023. The provision in the third quarter of 2024 was comprised of a $1.7 million provision for credit losses on loans, a $5 thousand recovery of credit losses on held-to-maturity securities, and a $17 thousand recovery of credit losses on unfunded commitments. The provision for credit losses on loans in the third quarter of 2024 was primarily attributable to increases in specific reserves on commercial and industrial loans and an increase in the general reserve component of the allowance for credit losses on loans related to an increase in projected losses, which resulted from a higher projected unemployment rate when compared to the prior quarterly period.

    Allowance for Credit Losses on Loans

    The allowance for credit losses on loans totaled $12.7 million on September 30, 2024, $12.6 million on June 30, 2024, and $8.9 million on September 30, 2023. During the third quarter of 2024, the specific reserve component of the allowance decreased by $373 thousand, while the general reserve component of the allowance increased by $524 thousand. Net charge-offs increased in the third quarter and were primarily comprised of commercial and industrial loans with specific reserves that were established in prior periods.

    The following table provides the changes in the allowance for credit losses on loans for the three-month periods ended (dollars in thousands):

        Sept 30, 2024     Jun 30, 2024     Sept 30, 2023  
    Allowance for credit losses on loans, beginning of period   $ 12,553     $ 12,603     $ 8,858  
    Net charge-offs     (1,572 )     (482 )     (83 )
    Provision for credit losses on loans     1,723       432       121  
    Allowance for credit losses on loans, end of period   $ 12,704     $ 12,553     $ 8,896  

    The allowance for credit losses on loans as a percentage of total loans totaled 1.28% on September 30, 2024, 1.27% on June 30, 2024, and 0.93% on September 30, 2023.

     Allowance for Credit Losses on Unfunded Commitments

    The allowance for credit losses on unfunded commitments totaled $370 thousand on September 30, 2024, $387 thousand on June 30, 2024 and $189 on September 30, 2023. There was a $17 thousand recovery of credit losses on unfunded commitments in the third quarter of 2024, a $26 thousand recovery of credit losses on unfunded commitments in the second quarter of 2024, and an $8 thousand recovery of credit losses on unfunded commitments in the third quarter of 2023.

    Allowance for Credit Losses on Securities 

    The allowance for credit losses on securities held-to-maturity (“HTM”) totaled $105 thousand on September 30, 2024, compared to $110 thousand on June 30, 2024, and $131 thousand on September 30, 2023. The recovery of credit losses on securities totaled $5 thousand for the third quarter of 2024, $7 thousand for the second quarter of 2024 and $12 thousand for the third quarter of 2023.

    LIQUIDITY

    Liquidity sources available to the Bank, including interest-bearing deposits in banks, unpledged securities available for sale, at fair value, unpledged securities held-to-maturity, at par, that were eligible to be pledged to the Federal Reserve Bank through its Bank Term Funding Program, and available lines of credit totaled $499.1 million on September 30, 2024, $533.3 million on June 30, 2024, and $532.1 million on September 30, 2023.

    The Bank maintains liquidity to fund loan growth and to meet potential demand from deposit customers. The estimated amount of uninsured customer deposits totaled $400.1 million on September 30, 2024, $419.4 million on June 30, 2024, and $346.9 million on September 30, 2023. Excluding municipal deposits, the estimated amount of uninsured customer deposits totaled $322.6 million on September 30, 2024, $324.6 million on June 30, 2024, and $268.4 million on September 30, 2023.

    BALANCE SHEET

    Assets totaled $1.5 billion on September 30, 2024, which was a $6.8 million, or 2% (annualized), decrease from June 30, 2024, and an $84.8 million, or 6%, increase from September 30, 2023. The decrease in total assets from the second quarter of 2024 was primarily due to a $9.1 million decrease in cash and cash equivalents and a $2.2 million decrease in other assets, which was partially offset by a $4.6 million increase in loans, net of allowance for credit losses. Total assets increased from September 30, 2023 primarily from a $76.4 million increase in cash and cash equivalents and a $38.4 million increase in loans, net of the allowance for credit losses on loans, which were partially offset by a $28.5 million decrease in securities held to maturity.

    On September 30, 2024, loans totaled $994.7 million, an increase of $4.7 million or 1.9% (annualized) from $990.0 million, on June 30, 2024. Quarterly average loans totaled $991.2 million, an increase of $9.2 million or 3.8% (annualized) from the second quarter of 2024. On September 30, 2024, loans increased $42.2 million, or 4%, from one year ago, and quarterly average loans increased $68.2 million, or 7%, when comparing the third quarter of 2024 to the same period in 2023.

    On September 30, 2024, securities totaled $269.6 million, a decrease of $875 thousand from June 30, 2024, and a decrease of $30.7 million from September 30, 2023. AFS securities totaled $146.0 million on September 30, 2024, $144.8 million on June 30, 2024, and $148.2 million on September 30, 2023. On September 30, 2024, total net unrealized losses on the AFS securities portfolio were $17.3 million, a decrease of $4.6 million from total net unrealized losses on AFS securities of $21.9 million on June 30, 2024. HTM securities are carried at cost and totaled $121.5 million on September 30, 2024, $123.6 million on June 30, 2024, and $150.0 million on September 30, 2023, and had net unrealized losses of $7.8 million on September 30, 2024, a decrease of $3.6 million compared to the prior quarter.

    On September 30, 2024, total deposits were $1.3 billion, a decrease of $12.5 million or approximately 4% (annualized) from June 30, 2024. Quarterly average deposits decreased from the second quarter of 2024 by $5.3 million or 2% (annualized). Total deposits increased $18.1 million or 1% from September 30, 2023, and quarterly average deposits for the third quarter of 2024 increased $31.2 million or 3% from the third quarter of 2023. Total deposits decreased from the prior quarter due to a $14.4 million decrease in noninterest-bearing deposits and a $1.3 million decrease in interest-bearing demand deposits, which were partially offset by a $3.1 million increase in time deposits.

    On September 30, 2024 and June 30, 2024, other borrowings totaled $50.0 million and were comprised of funds borrowed from the Federal Reserve Bank through their Bank Term Funding Program. On September 30, 2024, other borrowings had a fixed interest rate of 4.76% and a maturity date of January 15, 2025. The Bank benefited from the borrowings with a reduction in interest rate risk and an increase in net interest income. There were no other borrowings on September 30, 2023.

    The following table provides capital ratios at the periods ended:

        Sept 30, 2024     Jun 30, 2024     Sept 30, 2023  
    Total capital ratio(2)     14.29 %     14.13 %     14.80 %
    Tier 1 capital ratio(2)     13.04 %     12.88 %     13.86 %
    Common equity Tier 1 capital ratio(2)     13.04 %     12.88 %     13.86 %
    Leverage ratio(2)     9.23 %     9.17 %     9.96 %
    Common equity to total assets(3)     8.62 %     8.23 %     8.20 %
    Tangible common equity to tangible assets(1)(3)     8.43 %     8.03 %     8.00 %

    During the third quarter of 2024, the Company declared and paid cash dividends of $0.15 per common share, which was consistent with the second quarter of 2024 and the third quarter of 2023. 

    NON-GAAP FINANCIAL MEASURES

    In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that the Company’s management believes provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision pre-tax earnings, adjusted pre-provision pre-tax earnings, fully taxable equivalent interest income, the net interest margin, the efficiency ratio, tangible book value per share, and tangible common equity to tangible assets.

    The Company believes certain non-GAAP financial measures enhance the understanding of its business, performance and financial position. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is included at the end of this release.

    ABOUT FIRST NATIONAL CORPORATION

    First National Corporation (NASDAQ: FXNC) is the parent company and bank holding company of First Bank (the “Bank”), a community bank that first opened for business in 1907 in Strasburg, Virginia. The Bank offers loan and deposit products and services through its website, www.fbvirginia.com, its mobile banking platform, a network of ATMs located throughout its market area, three loan production offices, a customer service center in a retirement community, and thirty-three bank branch office locations located throughout the Shenandoah Valley, the Roanoke Valley, the central and south-central regions of Virginia, the city of Richmond, and in northern North Carolina. In addition to providing traditional banking services, the Bank operates a wealth management division under the name First Bank Wealth Management. The Bank also owns First Bank Financial Services, Inc., which owns an interest in an entity that provides title insurance services.

     FORWARD-LOOKING STATEMENTS

    Certain information contained in this discussion may include “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. These forward-looking statements relate to the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts, and other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” and “projects,” as well as similar expression. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties. For details on factors that could affect expectations, future events, or results, see the risk factors and other cautionary language included in First National’s Annual Report on Form 10-K for the year ended December 31, 2023, and most recent Quarterly Report on Form 10-Q and other filings with the Securities and Exchange Commission (the “SEC”).

    Additional risks and uncertainties may include, but are not limited to: (1) the risk that the cost savings and any revenue synergies from the Merger may not be realized or take longer than anticipated to be realized, including due to the state of the economy or other competitive factors in the areas in which the parties operate, (2) disruption from the Merger of customer, supplier, employee or other business partner relationships, including diversion of management’s attention from ongoing business operations and opportunities due to the Merger, (3) the possibility that the costs, fees, expenses and charges related to the Merger may be greater than anticipated, (4) reputational risk and the reaction of each of the parties’ customers, suppliers, employees or other business partners to the Merger, (5) the risks relating to the integration of Touchstone’s operations into the operations of First National, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (6) the risk of expansion into new geographic or product markets, (7) the dilution caused by First National’s issuance of additional shares of its common stock in the Merger, and (8) general competitive, economic, political and market conditions. All subsequent written and oral forward-looking statements concerning First National or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. First National does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

    CONTACTS

    Scott C. Harvard   M. Shane Bell
    President and CEO   Executive Vice President and CFO
    (540) 465-9121   (540) 465-9121
    sharvard@fbvirginia.com   sbell@fbvirginia.com

      
    FIRST NATIONAL CORPORATION
    Performance Summary
    (in thousands, except share and per share data)
    (unaudited)

          As of or For the Three Months Ended     As of or For the Nine Months Ended  
        Sept 30, 2024     Jun 30, 2024     Sept 30, 2023     Sept 30, 2024     Sept 30, 2023  
    Income Statement                                        
    Interest and dividend income                                        
    Interest and fees on loans   $ 14,479     $ 14,004     $ 12,640     $ 41,967     $ 36,038  
    Interest on deposits in banks     1,538       1,579       338       4,405       1,441  
    Taxable interest on securities     1,091       1,134       1,323       3,449       3,968  
    Tax-exempt interest on securities     303       306       304       914       917  
    Dividends     33       32       26       98       81  
    Total interest and dividend income   $ 17,444     $ 17,055     $ 14,631     $ 50,833     $ 42,445  
    Interest expense                                        
    Interest on deposits   $ 4,958     $ 4,820     $ 3,810     $ 14,549     $ 9,428  
    Interest on subordinated debt     69       69       69       207       207  
    Interest on junior subordinated debt     68       66       69       202       203  
    Interest on other borrowings     600       606       —       1,782       3  
    Total interest expense   $ 5,695     $ 5,561     $ 3,948     $ 16,740     $ 9,841  
    Net interest income   $ 11,749     $ 11,494     $ 10,683     $ 34,093     $ 32,604  
    Provision for credit losses     1,700       400       100       3,100       200  
    Net interest income after provision for credit losses   $ 10,049     $ 11,094     $ 10,583     $ 30,993     $ 32,404  
    Noninterest income                                        
    Service charges on deposit accounts   $ 675     $ 612     $ 733     $ 1,941     $ 2,062  
    ATM and check card fees     934       809       976       2,513       2,624  
    Wealth management fees     952       879       811       2,714       2,336  
    Fees for other customer services     276       178       122       649       538  
    Brokered mortgage fees     92       32       38       162       73  
    Income from bank owned life insurance     191       149       175       491       459  
    Net gains on securities available for sale     39       —       —       39       —  
    Other operating income     44       27       198       1,427       623  
    Total noninterest income   $ 3,203     $ 2,686     $ 3,053     $ 9,936     $ 8,715  
    Noninterest expense                                        
    Salaries and employee benefits   $ 5,927     $ 5,839     $ 5,505     $ 17,637     $ 16,040  
    Occupancy     585       548       534       1,668       1,586  
    Equipment     726       691       598       2,008       1,756  
    Marketing     262       273       204       730       720  
    Supplies     123       115       128       354       423  
    Legal and professional fees     596       1,124       439       2,172       1,204  
    ATM and check card expense     394       368       440       1,123       1,265  
    FDIC assessment     195       203       161       575       479  
    Bank franchise tax     262       261       262       785       778  
    Data processing expense     290       163       266       699       720  
    Amortization expense     4       5       5       13       14  
    Other real estate owned expense (income), net     10       —       15       10       (201 )
    Net losses on disposal of premises and equipment     2       —       —       50       —  
    Other operating expense     1,083       1,069       1,227       3,181       3,358  
    Total noninterest expense   $ 10,459     $ 10,659     $ 9,784     $ 31,005     $ 28,142  
    Income before income taxes   $ 2,793     $ 3,121     $ 3,852     $ 9,924     $ 12,977  
    Income tax expense     545       679       731       2,025       2,502  
    Net income   $ 2,248     $ 2,442     $ 3,121     $ 7,899     $ 10,475  

      
    FIRST NATIONAL CORPORATION
    Performance Summary
    (in thousands, except share and per share data)
    (unaudited)

          For the Three Months Ended       For the Nine Months Ended  
        Sept 30, 2024     Jun 30, 2024     Sept 30, 2023     Sept 30, 2024     Sept 30, 2023  
    Common Share and Per Common Share Data                                        
    Earnings per common share, basic   $ 0.36     $ 0.39     $ 0.50     $ 1.26     $ 1.67  
    Adjusted earnings per common share, basic (1)   $ 0.39       0.48       0.50     $ 1.38     $ 1.67  
    Weighted average shares, basic     6,287,997       6,278,113       6,256,663       6,278,668       6,266,707  
    Earnings per common share, diluted   $ 0.36     $ 0.39     $ 0.50     $ 1.26     $ 1.67  
    Adjusted earnings per common share, diluted (1)   $ 0.39       0.48       0.50     $ 1.38     $ 1.67  
    Weighted average shares, diluted     6,303,282       6,289,405       6,271,351       6,291,775       6,276,502  
    Shares outstanding at period end     6,296,705       6,280,406       6,260,934       6,296,705       6,260,934  
    Tangible book value per share at period end (1)   $ 19.37     $ 18.59     $ 17.38     $ 19.37     $ 17.38  
    Cash dividends   $ 0.15     $ 0.15     $ 0.15     $ 0.45     $ 0.45  
                                             
    Key Performance Ratios                                        
    Return on average assets     0.62 %     0.68 %     0.91 %     0.73 %     1.03 %
    Adjusted return on average assets (1)     0.67 %     0.84 %     0.91 %     0.80 %     1.03 %
    Return on average equity     7.28 %     8.31 %     10.96 %     8.84 %     12.57 %
    Adjusted return on average equity (1)     7.93 %     10.23 %     10.96 %     9.70 %     12.57 %
    Net interest margin(1)     3.43 %     3.40 %     3.35 %     3.36 %     3.44 %
    Efficiency ratio (1)     67.95 %     70.65 %     70.67 %     68.05 %     68.17 %
                                             
    Average Balances                                        
    Average assets   $ 1,449,185     $ 1,448,478     $ 1,355,113     $ 1,441,965     $ 1,360,154  
    Average earning assets     1,374,566       1,370,187       1,275,111       1,366,639       1,278,135  
    Average shareholders’ equity     122,802       118,255       112,987       119,303       111,460  
                                             
    Asset Quality                                        
    Loan charge-offs   $ 1,667     $ 521     $ 143     $ 2,601     $ 1,228  
    Loan recoveries     95       39       60       185       326  
    Net charge-offs     1,572       482       83       2,416       902  
    Non-accrual loans     5,929       8,549       3,116       5,929       3,116  
    Other real estate owned, net     56       —       —       56       —  
    Nonperforming assets (5)     5,985       8,549       3,116       5,985       3,116  
    Loans 30 to 89 days past due, accruing     2,358       2,399       1,395       2,358       1,395  
    Loans over 90 days past due, accruing     —       —       370       —       370  
    Special mention loans     516       1,380       —       516       —  
    Substandard loans, accruing     1,713       279       1,683       1,713       1,683  
                                             
    Capital Ratios (2)                                        
    Total capital   $ 148,477     $ 147,500     $ 146,163     $ 148,477     $ 146,163  
    Tier 1 capital     135,490       134,451       136,947       135,490       136,947  
    Common equity Tier 1 capital     135,490       134,451       136,947       135,490       136,947  
    Total capital to risk-weighted assets     14.29 %     14.13 %     14.80 %     14.29 %     14.80 %
    Tier 1 capital to risk-weighted assets     13.04 %     12.88 %     13.86 %     13.04 %     13.86 %
    Common equity Tier 1 capital to risk-weighted assets     13.04 %     12.88 %     13.86 %     13.04 %     13.86 %
    Leverage ratio     9.23 %     9.17 %     9.97 %     9.23 %     9.97 %

      
    FIRST NATIONAL CORPORATION
    Performance Summary
    (in thousands, except share and per share data)
    (unaudited)

        For the Period Ended  
        Sept 30, 2024     Jun 30, 2024     Mar 31, 2024     Dec 31, 2023     Sept 30, 2023  
    Balance Sheet                                        
    Cash and due from banks   $ 18,197     $ 16,729     $ 14,476     $ 17,194     $ 17,168  
    Interest-bearing deposits in banks     108,319       118,906       124,232       69,967       32,931  
    Cash and cash equivalents   $ 126,516     $ 135,635     $ 138,708     $ 87,161     $ 50,099  
    Securities available for sale, at fair value     146,013       144,816       147,675       152,857       148,175  
    Securities held to maturity, at amortized cost (net of allowance for credit losses)     121,425       123,497       125,825       148,244       149,948  
    Restricted securities, at cost     2,112       2,112       2,112       2,078       2,077  
    Loans, net of allowance for credit losses     982,016       977,423       960,371       957,456       943,603  
    Other real estate owned, net     56       —       —       —       —  
    Premises and equipment, net     22,960       22,205       21,993       22,142       21,363  
    Accrued interest receivable     4,794       4,916       4,978       4,655       4,502  
    Bank owned life insurance     24,992       24,802       24,652       24,902       24,734  
    Goodwill     3,030       3,030       3,030       3,030       3,030  
    Core deposit intangibles, net     104       108       113       117       122  
    Other assets     16,698       18,984       17,738       16,653       18,567  
    Total assets   $ 1,450,716     $ 1,457,528     $ 1,447,195     $ 1,419,295     $ 1,366,220  
                                             
    Noninterest-bearing demand deposits   $ 383,400     $ 397,770     $ 384,092     $ 379,208     $ 403,774  
    Savings and interest-bearing demand deposits     663,925       665,208       677,458       662,169       646,980  
    Time deposits     205,930       202,818       197,587       192,349       184,419  
    Total deposits   $ 1,253,255     $ 1,265,796     $ 1,259,137     $ 1,233,726     $ 1,235,173  
    Other borrowings     50,000       50,000       50,000       50,000       —  
    Subordinated debt, net     4,999       4,998       4,998       4,997       4,997  
    Junior subordinated debt     9,279       9,279       9,279       9,279       9,279  
    Accrued interest payable and other liabilities     8,068       7,564       5,965       5,022       4,792  
    Total liabilities   $ 1,325,601     $ 1,337,637     $ 1,329,379     $ 1,303,024     $ 1,254,241  
                                             
    Preferred stock   $ —     $ —     $ —     $ —     $ —  
    Common stock     7,871       7,851       7,847       7,829       7,826  
    Surplus     33,409       33,116       33,021       32,950       32,840  
    Retained earnings     99,270       97,966       96,465       94,198       95,988  
    Accumulated other comprehensive (loss), net     (15,435 )     (19,042 )     (19,517 )     (18,706 )     (24,675 )
    Total shareholders’ equity   $ 125,115     $ 119,891     $ 117,816     $ 116,271     $ 111,979  
    Total liabilities and shareholders’ equity   $ 1,450,716     $ 1,457,528     $ 1,447,195     $ 1,419,295     $ 1,366,220  
                                             
    Loan Data                                        
    Mortgage real estate loans:                                        
    Construction and land development   $ 61,446     $ 60,919     $ 53,364     $ 52,680     $ 50,405  
    Secured by farmland     9,099       8,911       9,079       9,154       7,113  
    Secured by 1-4 family residential     351,004       346,976       347,014       344,369       340,773  
    Other real estate loans     440,648       440,857       436,006       438,118       426,065  
    Loans to farmers (except those secured by real estate)     633       349       332       455       667  
    Commercial and industrial loans (except those secured by real estate)     114,190       115,951       113,230       112,619       116,463  
    Consumer installment loans     5,396       5,068       4,808       4,753       4,596  
    Deposit overdrafts     253       365       251       222       368  
    All other loans     12,051       10,580       8,890       7,060       6,049  
    Total loans   $ 994,720     $ 989,976     $ 972,974     $ 969,430     $ 952,499  
    Allowance for credit losses     (12,704 )     (12,553 )     (12,603 )     (11,974 )     (8,896 )
    Loans, net   $ 982,016     $ 977,423     $ 960,371     $ 957,456     $ 943,603  


      
    FIRST NATIONAL CORPORATION
    Non-GAAP Reconciliations
    (in thousands, except share and per share data)
    (unaudited)

          For the Three Months Ended       For the Nine Months Ended  
        Sept 30, 2024     Jun 30, 2024     Sept 30, 2023     Sept 30, 2024     Sept 30, 2023  
    Adjusted Net Income                                        
    Net income (GAAP)   $ 2,248     $ 2,442     $ 3,121     $ 7,899     $ 10,475  
    Add: Merger-related expenses     219       571       —       790       —  
    Subtract: Tax effect of adjustment (4)     (19 )     (5 )     —       (24 )     —  
    Adjusted net income (non-GAAP)   $ 2,448     $ 3,008     $ 3,121     $ 8,665     $ 10,475  
                                             
    Adjusted Earnings Per Share, Basic                                        
    Weighted average shares, basic     6,287,997       6,278,113       6,256,663       6,278,668       6,266,707  
    Basic earnings per share (GAAP)   $ 0.36     $ 0.39     $ 0.50     $ 1.26     $ 1.67  
    Adjusted earnings per share, basic (Non-GAAP)   $ 0.39     $ 0.48     $ 0.50     $ 1.38     $ 1.67  
                                             
    Adjusted Earnings Per Share, Diluted                                        
    Weighted average shares, diluted     6,303,282       6,289,405       6,271,351       6,291,775       6,276,502  
    Diluted earnings per share (GAAP)   $ 0.36     $ 0.39     $ 0.50     $ 1.26     $ 1.67  
    Adjusted diluted earnings per share (Non-GAAP)   $ 0.39     $ 0.48     $ 0.50     $ 1.38     $ 1.67  
                                             
    Adjusted Pre-Provision, Pre-Tax Earnings                                        
    Net interest income   $ 11,749     $ 11,494     $ 10,683     $ 34,093     $ 32,604  
    Total noninterest income     3,203       2,686       3,053       9,936       8,715  
    Net revenue   $ 14,952     $ 14,180     $ 13,736     $ 44,029     $ 41,319  
    Total noninterest expense     10,459       10,659       9,784       31,005       28,142  
    Pre-provision, pre-tax earnings   $ 4,493     $ 3,521     $ 3,952     $ 13,024     $ 13,177  
    Add: Merger expenses     219       571       –       790       –  
    Adjusted pre-provision, pre-tax, earnings   $ 4,712     $ 4,092     $ 3,952     $ 13,814     $ 13,177  
                                             
    Adjusted Performance Ratios                                        
    Average assets   $ 1,449,264     $ 1,448,478     $ 1,355,178     $ 1,441,996     $ 1,360,154  
    Return on average assets (GAAP)     0.62 %     0.68 %     0.91 %     0.73 %     1.03 %
    Adjusted return on average assets (Non-GAAP)     0.67 %     0.84 %     0.91 %     0.80 %     1.03 %
                                             
    Average shareholders’ equity   $ 122,802     $ 118,255       11,309     $ 119,303     $ 111,460  
    Return on average equity (GAAP)     7.28 %     8.31 %     10.96 %     8.87 %     12.57 %
    Adjusted return on average equity (Non-GAAP)     7.93 %     10.23 %     10.96 %     9.70 %     12.57 %
                                             
    Pre-provision, pre-tax return on average assets     1.23 %     0.98 %     1.16 %     1.21 %     1.30 %
    Adjusted pre-provision, pre-tax return on average assets     1.29 %     1.14 %     1.16 %     1.28 %     1.30 %
                                             
    Net Interest Margin                                        
    Tax-equivalent net interest income   $ 11,842     $ 11,587     $ 10,764     $ 34,360     $ 32,848  
    Average earning assets     1,374,566       1,370,187       1,275,111       1,366,639       1,278,136  
    Net interest margin     3.43 %     3.40 %     3.35 %     3.36 %     3.44 %
                                             

      
    FIRST NATIONAL CORPORATION
    Non-GAAP Reconciliations
    (in thousands, except share and per share data)
    (unaudited)

        For the Three Months Ended     For the Nine Months Ended  
        Sept 30, 2024     June 30, 2024     Sept 30, 2023     Sept 30, 2024     Sept 30, 2023  
    Efficiency Ratio                                        
    Total noninterest expense   $ 10,459       $ 10,659     $ 9,784     $ 31,005     $ 28,142  
    Add: other real estate owned income, net     (10 )       —       (15 )     (10 )     201  
    Subtract: amortization of intangibles     (4 )       (4 )     (5 )     (13 )     (14 )
    Subtract: loss on disposal of premises and equipment, net     (2 )       —       —       (50 )     —  
    Subtract: merger expenses     (219 )       (571 )     —       (790 )     —  
    Subtotal   $ 10,224       $ 10,084     $ 9,764     $ 30,142     $ 28,329  
    Tax-equivalent net interest income   $ 11,842       $ 11,587     $ 10,764     $ 34,360     $ 32,848  
    Total noninterest income     3,203         2,686       3,053       9,936       8,715  
    Subtotal   $ 15,045       $ 14,273     $ 13,817     $ 44,296     $ 41,563  
                                             
    Efficiency ratio     67.95 %       70.65 %     70.67 %     68.05 %     68.16 %
    Tax-Equivalent Net Interest Income                                        
    GAAP measures:                                        
    Interest income – loans   $ 14,479     $ 14,004     $ 12,640     $ 41,967     $ 36,038  
    Interest income – investments and other     2,965       3,051       1,991       8,866       6,407  
    Interest expense – deposits     (4,958 )     (4,820 )     (3,810 )     (14,549 )     (9,428 )
    Interest expense – subordinated debt     (69 )     (69 )     (69 )     (207 )     (207 )
    Interest expense – junior subordinated debt     (68 )     (66 )     (69 )     (202 )     (203 )
    Interest expense – other borrowings     (600 )     (606 )     –       (1,782 )     (3 )
    Net interest income   $ 11,749     $ 11,494     $ 10,683     $ 34,093     $ 32,604  
    Non-GAAP measures:                                        
    Add: Tax benefit realized on non-taxable interest income – loans (4)   $ 13     $ 12     $ —     $ 25     $ —  
    Add: Tax benefit realized on non-taxable interest income – municipal securities (4)     80       81       81       242       244  
    Tax benefit realized on non-taxable interest income   $ 93     $ 93     $ 81     $ 267     $ 244  
    Tax-equivalent net interest income   $ 11,842     $ 11,587     $ 10,764     $ 34,360     $ 32,848  
                                             
                                             
    Tangible Common Equity and Tangible Assets                                        
    Total assets (GAAP)   $ 1,450,716     $ 1,457,528     $ 1,366,220     $ 1,451,032     $ 1,366,220  
    Subtract: goodwill     (3,030 )     (3,030 )     (3,030 )     (3,030 )     (3,030 )
    Subtract: core deposit intangibles, net     (104 )     (108 )     (122 )     (104 )     (122 )
    Tangible assets (Non-GAAP)   $ 1,447,582     $ 1,454,390     $ 1,363,068     $ 1,447,898     $ 1,363,068  
                                             
    Total shareholders’ equity (GAAP)   $ 125,115     $ 119,891     $ 111,979     $ 125,115     $ 111,979  
    Subtract: goodwill     (3,030 )     (3,030 )     (3,030 )     (3,030 )     (3,030 )
    Subtract: core deposit intangibles, net     (104 )     (108 )     (122 )     (104 )     (122 )
    Tangible common equity (Non-GAAP)   $ 121,981     $ 116,753     $ 108,827     $ 121,981     $ 108,827  
                                             
    Tangible common equity to tangible assets ratio     8.43 %     8.03 %     8.00 %     8.43 %     8.00 %
                                             

      
    FIRST NATIONAL CORPORATION
    Non-GAAP Reconciliations
    (in thousands, except share and per share data)
    (unaudited)

        For the Three Months Ended     For the Nine Months Ended  
        Sept 30, 2024     June 30, 2024     Sept 30, 2023     Sept 30, 2024     Sept 30, 2023  
    Tangible Book Value Per Share                                        
    Tangible common equity   $ 121,981     $ 116,753     $ 108,827     $ 121,981     $ 108,827  
    Common shares outstanding, ending     6,296,705       6,280,406       6,260,934       6,296,705       6,260,934  
    Tangible book value per share   $ 19.37     $ 18.59     $ 17.38     $ 19.37     $ 17.38  
                                             

    (1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliations” for additional information and detailed calculations of adjustments.

    (2) Capital ratios are for First Bank.

    (3) Capital ratios presented are for First National Corporation.

    (4)  The tax rate utilized in calculating the tax benefit is 21%. Certain merger-related expenses are non-deductible.

    (5) Nonperforming assets are comprised of nonaccrual loans and other real estate owned.

    The MIL Network –

  • MIL-OSI USA: Murphy, Blumenthal, Larson, DeLauro Announce $250,000 To Prevent Pollution

    US Senate News:

    Source: United States Senator for Connecticut – Chris Murphy

    November 01, 2024

    EAST HARTFORD—U.S. Senators Chris Murphy (D-Conn.) and Richard Blumenthal (D-Conn.) and U.S. Representatives John Larson (D-Conn.-01) and Rosa DeLauro (D-Conn.-03) announced the Connecticut Department of Energy and Environmental Protection (CT DEEP) has been selected to receive $250,000 in federal grants to provide technical assistance to help Connecticut businesses develop and adopt pollution prevention practices in local communities.
    CT DEEP will partner with the Toxic Use Reduction Institute at University of Massachusetts Lowell to identify safer cleaning and sanitizing products for craft beverage manufacturers in Connecticutto reduce energy use and greenhouse gas emissions, solid and hazardous waste, water pollution and toxic chemicals. CT DEEP will also continue to work with other New England states to offer the BetterBev recognition program, which incentivizes businesses to carry out pollution reduction measures. Facilities in or adjacent to communities with environmental justice concerns will be prioritized.
    “We won’t achieve our climate goals unless everybody is involved in the fight, but small businesses often face greater barriers to making the upfront investments for cleaner practices. By providing direct technical support to Connecticut’s local craft beverage manufacturers, this $250,000 in federal funding from the Bipartisan Infrastructure Law will help small business owners across our state adopt more sustainable, cost-effective practices that reduce harmful emissions, strengthen our economy, and safeguard the health of our communities for generations to come,” said Murphy.
    “This investment in greener craft breweries and wineries will help them be even more successful as environmental stewards. With greater technical aid, beverage businesses can expand consumer appeal by reducing pollution and protecting natural resources. It’s a boost for our economy and environment,” said Blumenthal.
    “Addressing pollution at the source is key to protecting community health and taking on the threat of climate change,” said Larson. “I have been proud to work with the entire Connecticut Congressional delegation to deliver federal funding for projects to combat pollution and ensure all communities have access to clean air and water. This funding will support ongoing work at the state and local level to invest in innovative solutions that protect our environment, combat pollution, and help reduce energy bills.”
    “Thanks to the Infrastructure Investment and Jobs Act, CT DEEP can bolster its work with businesses across our state to reduce pollution,” said DeLauro. “These funds will help drive economic growth and ensure Connecticut leads the way in combatting pollution. The climate crisis is here, and it is an existential threat. We must do all we can to reduce pollution and protect our planet for generations to come.”
    “Every community deserves clean air, safe water, and a healthy environment—and pollution prevention grants help achieve that by reducing waste at the source. By adopting smarter and innovative practices that limit the use of toxic materials and conserve resources, these investments are helping our partners to support New England businesses to cut costs, grow sustainably, and protect the environment,” said EPA Regional Administrator David W. Cash. “Thanks to the Biden-Harris Administration, together we’re creating lasting benefits for local economies and ensuring that environmental progress and economic growth go hand in hand and reach all communities, including those that need it most. That’s Investing in America.”
    EPA’s Pollution Prevention Grant Program advances President Biden’s Justice40 Initiative, which set a goal to deliver 40% of the overall benefits from certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. In total, EPA has announced 48 selectees across the country that will collectively receive nearly $19 million in grants to support states, Tribal Nations, and U.S. territories in providing technical assistance to businesses to develop and adopt pollution prevention (P2) practices in local communities. This includes any practice that reduces, eliminates, or prevents pollution at its source prior to recycling, treatment, or disposal. Thanks to President Biden’s Bipartisan Infrastructure Law, nearly half of the funds awarded this year were made available with no cost share/match requirement.
    Between 2011-2022, EPA’s Pollution Prevention program issued over 500 grants totaling more than $54 million, which have helped businesses identify, develop, and adopt P2 approaches. These approaches have resulted in 31.9 billion kWh in energy savings, eliminated 20.8 million metric tons of greenhouse gases, saved 52 billion gallons of water, reduced 1 billion pounds of hazardous materials, and saved businesses more than $2.3 billion.

    MIL OSI USA News –

  • MIL-OSI USA: Murphy, Congressional Delegation Announce $39 Million In Clean Ports Investments To Reduce Emissions, Improve Public Health In Southern Connecticut

    US Senate News:

    Source: United States Senator for Connecticut – Chris Murphy

    November 01, 2024

    WASHINGTON—U.S. Senator Chris Murphy (D-Conn.), a member of the U.S. Senate Appropriations Committee, and U.S. Senator Richard Blumenthal (D-Conn.) on Friday joined U.S. Representatives Joe Courtney (D-Conn.-02) and Rosa DeLauro (D-Conn.-03) to announce that the Connecticut Port Authority and Gateway Terminal, in partnership with the New Haven Port Authority, have been selected to receive nearly $40 million in total through EPA’s Clean Ports Program to support the deployment of zero-emission port equipment and infrastructure.
    “Our ports are the driving force behind Connecticut’s blue economy, but the diesel-powered equipment we use to move goods through them is polluting nearby communities and taking a toll on public health. By replacing aging, polluting equipment with cleaner, zero-emission alternatives, this $39 million in federal funding will help keep ports in New Haven and New London running smoothly while improving quality of life, creating good-paying jobs, and moving us closer to achieving our climate goals,” said Murphy.
    “This milestone investment will make our ports cleaner and healthier – using zero-emission equipment. Stopping air pollution while modernizing and enhancing port facilities is a gigantic win for both our environment and economy. Communities around the ports will have better air and jobs,” said Blumenthal.
    “The redevelopment and modernization of State Pier New London in 2019 dramatically increased its square footage and weight bearing capacity, with an eye to both increased cargo activity, as well as wind turbine assembly.  With this $5 million new federal investment funded by the Inflation Reduction Act, the pier can now install zero-emission power equipment so that docked ships can power onboard services. This upgrade will keep New London State Pier competitive with the maritime industry and protect water quality in the Thames River,” said Courtney.
    “I am pleased to announce that Gateway Terminals and the Connecticut Port Authority will receive vital grant funding that will reduce diesel emissions, lower health risks and noise pollution for port workers and near-port communities, and decrease pollution in the Long Island Sound,” said DeLauro. “In New Haven, Gateway Terminal will be using this funding to replace four aging diesel-powered cranes with all-electric machines, deploy 10 all-electric tractors for terminal drayage services, and install solar infrastructure.  These efforts will reduce their reliance on the electric grid and the need for fossil fuel dependency while greatly improving air quality for residents of the City.”
    The grants are funded by President Biden’s Inflation Reduction Act and will advance environmental justice by reducing diesel air pollution from U.S. ports and near surrounding communities while promoting good-paying and union jobs that help America’s ports thrive.
    The Connecticut Port Authority has been selected to receive an anticipated $5,357,103 to acquire a mobile shore power unit and install supporting shore power infrastructure at the New London State Pier. The project will reduce diesel emissions by providing power to vessels at berth, enabling docked marine vessels to connect to the local electric grid to power onboard services instead of running their diesel engines, thereby decreasing health risks and noise pollution for port workers and the near-port communities. The State Pier was recently upgraded to enable it to serve as a marshalling port for offshore wind facility operations. CPA will engage stakeholders in New London to increase public awareness education, and ongoing communication. A workforce training program developed in coordination with unions and other stakeholders will help prepare the local labor force to fill high-quality jobs created by this project.
    Enstructure New Haven Holdings’ Gateway Terminal, in partnership with the New Haven Port Authority in Connecticut, has been selected to receive an anticipated $34,032,340 for the purchase and deployment of zero-emission cargo handling equipment with supporting charging infrastructure, as well as rooftop solar generation and battery energy storage systems to supplement grid power for the mobile equipment. The project also includes scrapping several pieces of diesel-powered cargo handling equipment to reduce air pollution at the port and in the surrounding area. Training on the all-electric equipment will be provided to the existing workforce, and the community will be engaged in project implementation and in sourcing workers for new good-paying jobs. Gateway recently joined Green Marine, a voluntary environmental benchmarking and continuous improvement program, which requires participants to annually measure, certify and publish their performance indicators, including emissions reduction and community relations.
    EPA’s Clean Ports Program advances President Biden’s Justice40 Initiative, which aims to deliver 40% of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.  Disadvantaged communities will benefit from cleaner air and access to high quality jobs that will be created to operate zero emissions technologies at ports.

    MIL OSI USA News –

  • MIL-OSI USA: Murphy, Connecticut Delegation Announce $77.8 Million In Home Energy Assistance Funding

    US Senate News:

    Source: United States Senator for Connecticut – Chris Murphy

    November 01, 2024

    WASHINGTON—U.S. Senator Chris Murphy (D-Conn.), a member of the U.S. Senate Appropriations Committee, and U.S. Senator Richard Blumenthal (D-Conn.) on Friday joined U.S. Representatives John Larson (D-Conn.-01), Joe Courtney (D-Conn.-02), Rosa DeLauro (D-Conn.-03), Jim Himes (D-Conn.-04) and Jahana Hayes (D-Conn-05) to announce Connecticut will receive $77,834,656 from the Low-Income Home Energy Assistance Program (LIHEAP) to help reduce heating costs for low-income families in Connecticut ahead of the winter season. This is the first allocation of LIHEAP dollars this season.
    “For too many families in Connecticut, falling temperatures mean having to choose between heating your home or putting food on the table. This $77.8 million in LIHEAP funding will help ease that burden for households feeling the strain of rising energy costs this winter, and as a member of the Senate Appropriations Committee, I’ll keep working with our delegation to ensure Connecticut families continue to have the support they need so they don’t have to make those difficult choices,” said Murphy.
    “This home heating aid is desperately needed by families who face a frigid winter without fuel for basic warmth,” said Blumenthal. “With $77.8 million, many families will be assured this basic necessity. Every day, I see and speak to people struggling to make ends meet and worrying about financial hardships and challenges. I’ll fight for more federal support for LIHEAP and other programs that help them with essential needs.”
    “As we approach the winter months, we must ensure all families are able to heat their homes without breaking the bank,” said Larson. “Thanks to the steadfast leadership of Rep. Rosa DeLauro on the Appropriations Committee, I am thrilled to join the entire Connecticut delegation to announce $77.8 million in new funding to help families afford their energy bills. We will continue to work together to ensure Connecticut residents can get the assistance they need this season.” 
    “There’s no question high energy costs are pinching homeowners’ wallets. As we head into the colder months, this $77 million federal investment in heating and energy assistance will bring welcomed relief to Connecticut residents,”  said Courtney. 
    “High costs are spreading families thin,” said DeLauro. “No family should have to choose between keeping their home warm during the colder months, keeping their lights on, or putting food on the table. As Ranking Member of the House Appropriations Committee, I secured $77.8 million for the program to help Connecticut’s families keep warm this season. Every family deserves warmth. I am committed to ensuring no household goes cold this winter.”
    “Too many families have to worry about rising energy costs that make it increasingly difficult to pay their heating bills and keep their children warm in the coming months,” said Himes. “LIHEAP offers a lifeline to struggling Americans to ensure every home offers a reprieve from our cold New England winter. I am proud to help deliver nearly $78 million to Connecticut in federal funding, including over $4 million from President Biden’s Infrastructure Investment and Jobs Act.”
    “LIHEAP is a lifeline for many families faced with rising heating costs. I am delighted $77.8 million is coming back to Connecticut to help families stay warm this winter,” said Hayes. “This assistance will help to ease the burden of high heating costs. In Congress, I will continue to advocate for additional funding for this vital resource, which lowers utility costs and prevents shut offs across Connecticut.”
    The U.S. Department of Health and Human Services (HHS), through the Office of Community Services (OCS) at the Administration for Children and Families (ACF), announced the release of $3.6 billion in LIHEAP funding to all 50 states, the District of Columbia, three territories, and more than 125 tribes. This amount includes the regular block grant appropriation and an additional $100.1 million appropriated from President Biden’s Bipartisan Infrastructure Investment and Jobs Act (IIJA). 
    Connecticut was awarded a total of $77,834,656 to assist low-income families ahead of the winter season. This includes:
    $73,556,784 from the regular LIHEAP block grant funding
    $4,273,891 in funding appropriated for FY2025 from IIJA and $3,981 in LIHEAP dollars the state returned in FY23

    MIL OSI USA News –

  • MIL-OSI USA: Salazar Urges Speaker Johnson to Prioritize Funding for Physician Training

    Source: United States House of Representatives – Congresswoman María Elvira Salazar’s (FL-27)

    WASHINGTON, D.C. – This week, Rep. María Elvira Salazar (R-FL) joined fourteen of her colleagues in a letter to Speaker Mike Johnson (R-LA) urging him to prioritize multi-year funding for teaching health centers across America. These centers and the physicians they train are a critical component of Miami and Florida’s healthcare system.

    Last year, the House of Representatives overwhelmingly passed the bipartisan Lower Costs, More Transparency Act (H.R. 5378), legislation that included a reauthorization of the Teaching Health Center Graduate Medical Education (THCGME) program through Fiscal Year 2030. The THCGME program supports the training of future physicians in community settings, providing greater access to primary care, dental care, and behavioral health services. A multi-year reauthorization will provide adequate resources for future physicians, ensuring these programs have the certainty to continue while still helping those with limited financial resources gain access to critical care.

    “As you consider possible legislation for later this session, we urge you to include in any broader legislative package a multi-year reauthorization for the Teaching Health Centers Graduate Medical Education (THCGME) program,” wrote the legislators. “Teaching health centers are a vital response to the primary care physician shortage, placing doctors in rural and underserved communities where they are needed most.”

     The letter has the support of the National Association of Community Health Centers (NACHC), the American Association of Teaching Health Centers (AATHC), and the Florida Association of Community Health Centers (FACHC). Rep. Salazar was joined in the letter by Reps. Doug LaMalfa (R-CA), Zach Nunn (R-IA), Marcus Molinaro (R-NY), Juan Ciscomani (R-AZ), David Valadao (R-CA), Young Kim (R-CA), Mike Lawler (R-NY), Andrew Garbarino (R-NY), Brandon Williams (R-NY), Nicole Malliotakis (R-NY), Laurel Lee (R-FL), Erin Houchin (R-IN), Dan Meuser (R-PA), and Michael Guest (R-MS).

    “We are grateful for Congresswoman Maria Elvira Salazar’s dedication to the Teaching Health Center Graduate Medical Education program. Her and her colleagues’ advocacy for a long-term extension and increased funding reflects their commitment to resolving the primary care workforce shortage across America. Their support will ensure we can train and retain the next generation of providers to improve the well-being of our nation,” said Joe Dunn, Chief Policy Officer of the National Association of Community Health Centers. 

    “The American Association of Teaching Health Centers is extremely grateful to Congresswoman Maria Elvira Salazar for her leadership in coordinating such an important expression of Congressional support for the Teaching Health Centers Graduate Medical Education program and to her 13 colleagues who also signed this letter to the Speaker of the House. The letter demonstrates that in medically underserved and rural communities across the nation, the residency programs our members operate are making a significant and positive impact by training the next generation of providers, whom history has shown will typically remain in such communities and reduce the physician and dentist shortage. This program has enjoyed sustained bipartisan support and in 2023, both the House and Senate took initial steps to extend it and provide a robust funding increase. As Congresswoman Salazar and her 14 colleagues indicate in the letter, it’s time for Congress to finish its work on the THCGME reauthorization and provide much-needed certainty to the organizations operating these programs across the country,” said Cristine Serrano, Executive Director of the American Association of Teaching Health Centers.

    “The Teaching Health Centers Graduate Medical Education (THCGME) program not only cultivates skilled healthcare professionals but also reinforces the vital connection between education and community health, ensuring that quality care reaches those who need it most. Representative Salazar’s commitment to increasing funding for the THCGME program demonstrates a powerful dedication to enhancing healthcare access and ensuring that future generations of physicians are trained in community-focused environments. Supporting her efforts is essential for strengthening our healthcare system and meeting the needs of underserved populations,” said Jonathan Chapman, President and CEO of the Florida Association of Community Health Centers (FACHC).

    Congresswoman Salazar has been a leader in Congress in ensuring community health centers and other important health institutions in Miami have access to adequate funding.

    Click here to read the full text of the letter.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: H.J. Res. 120, a joint resolution providing for Congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Financial Stability Oversight Council related to “Guidance on Nonbank Financial Company Determinations”

    Source: US Congressional Budget Office

    H.J. Res. 120 would disapprove a final rule published by the Financial Stability Oversight Council (FSOC) in November 2023.By invoking a legislative process established in the Congressional Review Act, the resolution would repeal the rule and prohibit the agency from issuing the same or any similar rule in the future.

    The rule modified the FSOC’s process for determining which nonbank financial companies are systemically important financial institutions and thus subject to enhanced oversight by the Federal Reserve. It removed certain prerequisites for the designation of systemic importance required under previous guidance issued in 2019. 

    MIL OSI USA News –

  • MIL-OSI: Crown LNG Announces Execution of Final Agreements to Acquire Kakinada and Grangemouth LNG Import Terminal Assets

    Source: GlobeNewswire (MIL-OSI)

    LONDON, Nov. 01, 2024 (GLOBE NEWSWIRE) — Crown LNG Holdings Limited (Nasdaq: CGBS) (“Crown” or “Crown LNG”), a leading provider of LNG liquefaction and regasification terminal technologies for harsh weather locations, today announced the conclusion of two strategic acquisition agreements forming the basis of Crown LNG’s entry into the global LNG infrastructure network: KGLNG and Grangemouth. The KGLNG agreement finalizes the acquisition of all shares of KGLNG, which owns the operating license for the Company’s planned LNG import terminal in Kakinada, India. The Grangemouth agreement finalizes the acquisition of LNG import terminal assets in Grangemouth, Scotland from GBTron Lands Limited.

    The Kakinada project, located on the East coast of India, is licensed to operate 365 days a year, a first for the harsh weather prone area. Imported gas from the planned terminal would reach demand centers via the East-West Pipeline, helping to support the Indian government’s drive to more than double the share of natural gas in the country’s energy mix to 15% by 2030.

    Total consideration for the KGLNG acquisition will be made in shares of Crown LNG equal to $60 million.

    The Grangemouth project, located on the East coast of Scotland, seeks to support the UK’s increasing drive for energy security post-Brexit and in the context of geopolitical impacts on energy markets. Currently, the UK relies on just three facilities for all of the country’s LNG imports, which increased 74% from 2021 to 2022.

    Total consideration for the GBTron acquisition will be made in shares of Crown LNG equal to $25 million.

    “We are excited and proud to announce the execution of these two transactions and move these two projects down the path,” said Swapan Kataria, Chief Executive Officer of Crown LNG. “With Crown LNG and our subsidiaries now firmly in control of the Kakinada and Grangemouth projects, we look forward to driving the success of these two transformative projects for both India and the UK.”

    Crown remains dedicated to delivering exceptional LNG liquefaction and regasification terminal infrastructure solutions services that cater to the evolving needs of the under-served markets across the globe. As we focus on expanding our operations in Europe and South Asia, we continue to forge strategic partnerships and explore new opportunities to provide efficient and reliable solutions.

    About Crown LNG Holdings Limited
    Crown LNG is a leading provider of offshore LNG liquefaction and regasification terminal infrastructure solutions for harsh weather locations, which represent a significant addressable market for bottom-fixed, gravity based (“GBS”) liquefaction and floating storage regasification units, as well as associated green and blue hydrogen, ammonia and power projects. Through this approach, Crown aims to provide lower carbon sources of energy securely to under-served markets across the globe. Visit www.crownlng.com/investors for more information.

    Forward-Looking Information and Statements

    Certain statements in this announcement are not historical facts but are forward-looking statements. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “could,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” “should,” “would,” “plan,” “future,” “outlook,” “potential,” “project” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other performance metrics and projections of market opportunity. They involve known and unknown risks and uncertainties and are based on various assumptions, whether or not identified in this press release and on current expectations of Crown’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Crown. Some important factors that could cause actual results to differ materially from those in any forward-looking statements could include changes in domestic and foreign business, market, financial, political and legal conditions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

    Crown LNG Holdings Limited Contacts

    Investors
    Caldwell Bailey
    ICR, Inc.
    CrownLNGIR@icrinc.com

    Media
    Zach Gorin
    ICR, Inc.
    CrownLNGPR@icrinc.com

    The MIL Network –

  • MIL-OSI USA: MTA Seeking Proposals to Redevelop Parking Lot

    Source: US State of New York

    Governor Kathy Hochul today announced that the Metropolitan Transportation Authority issued a Request for Proposals to transform a surface parking lot adjacent to the Beacon Metro-North Station into a residential development with about 300-units of mixed-income housing and replacement parking for commuters, the latest milestone in the Governor’s ongoing efforts to repurpose State-owned sites for new housing. The project aims to address the City of Beacon’s efforts to foster greater connectivity between the waterfront, the Beacon Station and its Main Street. Metro-North’s Hudson line connects Beacon to midtown Manhattan in just 78 minutes. The RFP is available on the Metropolitan Transportation Authority website. Proposals are due by Wednesday, Dec. 18, 2024.

    “Good quality housing for all New Yorkers is one of my top priorities as Governor, and I’m committed to doing all I can to make that a reality for everyone in this great state,” Governor Hochul said. “Along with the achievements made in my FY25 Enacted Budget, the MTA’s recent Request for Proposals to transform a surface parking lot adjacent to Beacon Metro-North Station not only increases housing stock, but also uplifts the local economy by attracting businesses and creates a healthier community.”

    MTA Chair and CEO Janno Lieber said, “The MTA has long been a leader in the movement for Transit-Oriented Development that creates dynamic, walkable communities. This project will not only enliven Beacon, it responds to Governor Hochul’s commitment to address the housing crisis.”

    MTA Construction & Development President Jamie Torres-Springer said, “New Yorkers deserve more housing near great transit options. This opportunity gets us a step closer to hundreds of new units in one of our state’s iconic towns, right near great Metro-North service.”

    MTA C&D Transit-Oriented Development Senior Vice President Robert Paley said, “MTA’s TOD team pursues development opportunities where MTA utilizes its assets to support thoughtful, contextual development that generates revenue for MTA’s Capital Program. All while increasing Metro-North ridership and advancing regional planning objectives. This RFP works towards that mission.”

    New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Creating homes near the Beacon Metro-North station will give hundreds of households a place to live while also enhancing the family-friendly community. Under Governor Hochul’s leadership, New York is prioritizing transit-oriented developments that address the housing crisis, boost the local economy and improve access to low-emission transportation.”

    Empire State Development President, CEO and Commissioner Hope Knight said, “This transit-oriented development project at Beacon Station exemplifies smart growth that connects housing with transportation infrastructure. By leveraging State resources through Governor Hochul’s RUSH initiative, we’re creating new housing opportunities while strengthening the economic ties between the Hudson Valley and New York City, demonstrating how strategic development can enhance both local communities and regional connectivity.”

    The RFP will facilitate the construction of as-of-right waterfront housing units in a community celebrated for its vibrancy and natural beauty, within walking distance to all the dining, entertainment and amenities that Beacon’s Main Street has to offer. It is one more example of MTA’s ongoing commitment to transit-oriented development. Working with the State, the City of Beacon, and the development community, the MTA is creatively leveraging an existing asset to generate new housing units, increase ridership and support the City’s economic development and land use goals.

    Governor Hochul and the MTA last summer opened Metro-North’s first TOD project, Avalon Harrison, at the Harrison Metro-North station. The development promotes downtown revitalization and improves the environment and healthy lifestyles by providing residents access to shops, amenities and rail stations within walking distance.

    Governor Hochul’s Housing Agenda
    Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and zoning relief to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on State-owned property, including supporting the project at Beacon, an additional $600 million in funding to support a variety of housing development statewide and new protections for renters. These measures follow the historic funding the Governor secured in the FY23 Enacted Budget for a five-year, $25 billion Housing Plan to build and preserve 100,000 units of affordable housing across the State. The FY25 Enacted Budget also strengthened the Pro-Housing Community Program which the Governor launched in 2023. Pro-Housing Certification is now a requirement for localities to access up to $650 million in discretionary funding. To date, more than 200 communities have been certified, including the City of Beacon.

    For specific questions related to the RFP, please contact Nicholas Roberts at [email protected].

    MIL OSI USA News –

  • MIL-OSI: Cornerstone Funds Announce Continuing Monthly Distributions and Reset Distribution Amounts for 2025

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Nov. 01, 2024 (GLOBE NEWSWIRE) — Cornerstone Strategic Value Fund, Inc. (NYSE American: CLM) (CUSIP: 21924B302) and Cornerstone Total Return Fund, Inc. (NYSE American: CRF) (CUSIP: 21924U300), (individually the “Fund” or, collectively, the “Funds”), each a closed-end management investment company, announced that in keeping with each Fund’s previously adopted monthly distribution policy, each Fund is declaring the following distributions, which have been reset for the calendar year 2025.

      Record Date Payable Date Per Share
    CLM January 15, 2025 January 31, 2025 $0.1224
    CLM February 14, 2025 February 28, 2025 $0.1224
    CLM March 14, 2025 March 31, 2025 $0.1224
    CRF January 15, 2025 January 31, 2025 $0.1168
    CRF February 14, 2025 February 28, 2025 $0.1168
    CRF March 14, 2025 March 31, 2025 $0.1168
       

    Each Fund’s distribution policy provides for the resetting of the monthly distribution amount per share (“Distribution Amount”) annually, based on each Fund’s net asset value on the last business day of October and the annualized distribution percentage approved by the respective Board of Directors (individually the “Board”, or collectively, the “Boards”). Each Board previously announced the distribution percentage for the calendar year 2025 would remain unchanged from the current year at 21% of the net asset value of each Fund.

    Each Board believes each Fund’s distribution policy maintains a stable, high rate of distribution. These distributions are not tied to each Fund’s investment income or capital gains and do not represent yield or investment return on each Fund’s portfolio. The Distribution Amount from one calendar year to the next will increase or decrease based on the change in each Fund’s net asset value. The terms of each distribution policy are reviewed and approved at least annually by each Fund’s Board and may be modified at their discretion for the benefit of each Fund and its stockholders.

    Each Fund’s Board remains convinced its stockholders are well served by a policy of regular distributions which increase liquidity and provide flexibility to individual stockholders in managing their investment in each Fund. Stockholders have the option of reinvesting these distributions in additional shares of their Fund or receiving them in cash. Stockholders may consider reinvesting their regular distributions through their Fund’s dividend reinvestment plan, which may at times provide additional benefit to stockholders who participate in their Fund’s plan. Stockholders should carefully read the description of the dividend reinvestment plan contained in each Fund’s report to stockholders.

    Under each Fund’s distribution policy, each Fund may distribute to stockholders each month a minimum fixed percentage per year of the net asset value or market price per share of its common stock or at least a minimum fixed dollar amount per year. In determining to adopt this policy, the Board of each Fund sought to make regular monthly distributions throughout the year. Under each policy, each Fund’s distributions will consist either of (1) earnings, (2) capital gains, or (3) return-of-capital, or some combination of one or more of these categories. A return-of-capital is the return of a portion of the stockholder’s original investment.

    Given the current economic environment and the composition of each Fund’s portfolio, a portion of each Fund’s distributions made during the current calendar year is expected to consist of a return of the stockholder’s capital. Accordingly, these distributions should not be confused with yield or investment return on each Fund’s portfolio. The final composition of the distributions for 2024 cannot be determined until after the end of the year and is subject to change depending on market conditions during the year and the magnitude of income and realized gains for the year.

    In any given year, there can be no guarantee each Fund’s investment returns will exceed the amount of the net distributions. To the extent the amount of distributions paid to stockholders in cash exceeds the total net investment returns of the Fund, the assets of a Fund will decline. If the total net investment returns exceed the amount of cash distributions, the assets of a Fund will increase. Distributions designated as return-of-capital are not taxed as ordinary income dividends and are referred to as tax-free dividends or nontaxable distributions. A return-of-capital distribution reduces the cost basis of a stockholder’s shares in the Fund. Stockholders can expect to receive tax-reporting information for 2024 distributions by the middle of February 2025 indicating the exact composition per share of the distributions received during the calendar year. Stockholders should consult their tax advisor for proper tax treatment of each Fund’s distributions.

    Volatility in the world economy helps to create what Cornerstone Advisors, LLC (the “Adviser”) views as significant opportunities through investments in closed-end funds. In addition to holding closed-end funds which invest substantially all of their assets in equity securities, the Adviser may also choose to take advantage of situations in funds which invest in fixed income or other investment categories. Closed-end funds, with their broadly diversified holdings, enhance diversification within each Fund’s portfolio.

    Investing in other investment companies involves substantially the same risks as investing directly in the underlying instruments, but the total return on such investments at the investment company level is reduced by the operating expenses and fees of such other investment companies, including advisory fees. To the extent each Fund invests its assets in investment company securities, those assets will be subject to the risks of the purchased investment company’s portfolio securities, and a stockholder in the Fund will bear not only their proportionate share of the expenses of a Fund, but also, indirectly the expenses of the purchased investment company. There can be no assurance the investment objective of any investment company in which a Fund invests will be achieved.

    Under the managed distribution policy, each Fund makes monthly distributions to stockholders at a rate which may include periodic distributions of its net income and net capital gains (“Net Earnings”), or from return-of-capital. If, for any fiscal year where total cash distributions exceeded Net Earnings (the “Excess”), the Excess would decrease each Fund’s total assets and, as a result, would have the likely effect of increasing each Fund’s expense ratio. There is a risk the total Net Earnings from each Fund’s portfolio would not be great enough to offset the amount of cash distributions paid to Fund stockholders. If this were to occur, a Fund’s assets would be depleted, and there is no guarantee a Fund would be able to replace the assets. In addition, in order to make such distributions, a Fund may have to sell a portion of its investment portfolio at a time when independent investment judgment might not dictate such action. Furthermore, such assets used to make distributions will not be available for investment pursuant to the Fund’s investment objective.

    Each Fund’s Board has previously approved a share repurchase program. The share repurchase program authorizes management to make open market purchases, from time to time. Such purchases may be made opportunistically at certain discounts to net asset value per share when management reasonably believes such repurchases may enhance stockholder value. There is no assurance each Fund will purchase any shares or the share repurchase program will have an impact on the liquidity or value of the respective Fund or the Fund’s shares. To the extent each Fund engages in share repurchase activity, such activity will be disclosed in each Fund’s stockholder reports for the relevant fiscal period.

    Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc. are traded on the NYSE American LLC under the trading symbols “CLM” and “CRF”, respectively. For more information regarding each Fund please visit www.cornerstonestrategicvaluefund.com and www.cornerstonetotalreturnfund.com.

    Past performance is no guarantee of future performance. An investment in a Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price which is more or less than the original purchase price or the net asset value. A stockholder should carefully consider a Fund’s investment objective, risks, charges and expenses. Please read a Fund’s disclosure documents before investing.

    In addition to historical information, this release contains forward-looking statements, which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on a Fund’s investment portfolio. These statements are subject to risks and uncertainties, including the factors set forth in each Fund’s disclosure documents, filed with the U.S. Securities and Exchange Commission, and actual trends, developments and regulations in the future, and their impact on the Fund could be materially different from those projected, anticipated or implied. Each Fund has no obligation to update or revise forward-looking statements.

    The MIL Network –

  • MIL-OSI: PIMCO Closed-End Funds Declare Monthly Common Share Distributions

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Nov. 01, 2024 (GLOBE NEWSWIRE) — The Boards of Trustees/Directors of the PIMCO closed-end funds below (each, a “Fund” and, collectively, the “Funds”) have declared a monthly distribution for each Fund’s common shares as summarized below. The distributions are payable on December 2, 2024 to shareholders of record on November 12, 2024, with an ex-dividend date of November 12, 2024.

        Monthly Distribution 
    Per Share
    Fund NYSE Symbol Amount Change From
    Previous
    Month    		 Percentage
    Change From
    Previous
    Month
    PIMCO Corporate & Income Strategy Fund (NYSE: PCN) $0.112500 – –
    PIMCO Corporate & Income Opportunity Fund (NYSE: PTY) $0.118800 – –
    PIMCO Global StocksPLUS® & Income Fund (NYSE: PGP) $0.069000 – –
    PIMCO High Income Fund (NYSE: PHK) $0.048000 – –
    PIMCO Strategic Income Fund, Inc. (NYSE: RCS) $0.051000 – –
    PCM Fund, Inc. (NYSE: PCM) $0.080000 – –
    PIMCO Income Strategy Fund (NYSE: PFL) $0.081400 – –
    PIMCO Income Strategy Fund II (NYSE: PFN) $0.071800 – –
    PIMCO Dynamic Income Fund (NYSE: PDI) $0.220500 – –
    PIMCO Dynamic Income Opportunities Fund (NYSE: PDO) $0.127900 – –
    PIMCO Municipal Income Fund (NYSE: PMF) $0.042000 – –
    PIMCO California Municipal Income Fund (NYSE: PCQ) $0.036000 – –
    PIMCO New York Municipal Income Fund (NYSE: PNF) $0.033500 – –
    PIMCO Municipal Income Fund II (NYSE: PML) $0.039500 – –
    PIMCO California Municipal Income Fund II (NYSE: PCK) $0.021500 – –
    PIMCO New York Municipal Income Fund II (NYSE: PNI) $0.029500 – –
    PIMCO Municipal Income Fund III (NYSE: PMX) $0.033000 – –
    PIMCO California Municipal Income Fund III (NYSE: PZC) $0.029500 – –
    PIMCO New York Municipal Income Fund III (NYSE: PYN) $0.024800 – –
    PIMCO Access Income Fund (NYSE: PAXS) $0.149400 – –
    PIMCO Dynamic Income Strategy Fund (NYSE: PDX) $0.113300 – –
             

    Fund Distribution Information as of September 30, 2024:

    Fund NYSE Symbol Current
    Amount    		 Annualized
    current
    distribution
    rate expressed
    as a
    percentage of
    NAV as of
    09/30/2024    		 Annualized
    current
    distribution rate
    expressed as a
    percentage of
    Market Price as
    of 09/30/2024
    PIMCO Corporate & Income Strategy Fund (NYSE: PCN) $0.112500 11.28% 9.51%
    PIMCO Corporate & Income Opportunity Fund (NYSE: PTY) $0.118800 12.15% 9.91%
    PIMCO Global StocksPLUS® & Income Fund (NYSE: PGP) $0.069000 10.26% 9.87%
    PIMCO High Income Fund (NYSE: PHK) $0.048000 12.13% 11.52%
    PIMCO Strategic Income Fund, Inc. (NYSE: RCS) $0.051000 13.48% 7.96%
    PCM Fund, Inc. (NYSE: PCM) $0.080000 14.95% 12.02%
    PIMCO Income Strategy Fund (NYSE: PFL) $0.081400 11.88% 11.40%
    PIMCO Income Strategy Fund II (NYSE: PFN) $0.071800 11.90% 11.31%
    PIMCO Dynamic Income Fund (NYSE: PDI) $0.220500 15.20% 13.05%
    PIMCO Dynamic Income Opportunities Fund (NYSE: PDO) $0.127900 11.52% 10.87%
    PIMCO Municipal Income Fund (NYSE: PMF) $0.042000 5.19% 4.88%
    PIMCO California Municipal Income Fund (NYSE: PCQ) $0.036000 4.02% 4.34%
    PIMCO New York Municipal Income Fund (NYSE: PNF) $0.033500 4.50% 4.84%
    PIMCO Municipal Income Fund II (NYSE: PML) $0.039500 5.26% 5.05%
    PIMCO California Municipal Income Fund II (NYSE: PCK) $0.021500 3.74% 4.11%
    PIMCO New York Municipal Income Fund II (NYSE: PNI) $0.029500 4.10% 4.49%
    PIMCO Municipal Income Fund III (NYSE: PMX) $0.033000 4.76% 4.79%
    PIMCO California Municipal Income Fund III (NYSE: PZC) $0.029500 4.45% 4.72%
    PIMCO New York Municipal Income Fund III (NYSE: PYN) $0.024800 4.33% 4.72%
    PIMCO Access Income Fund (NYSE: PAXS) $0.149400 11.48% 10.78%
    PIMCO Dynamic Income Strategy Fund (NYSE: PDX) $0.113300 5.31% 5.76%
             

    Distribution rates are not performance and are calculated by annualizing the current distribution per share announced in this press release and dividing by the NAV or Market Price, as applicable, as of the reported date. A Fund’s distribution rate may be affected by numerous factors, including changes in realized and projected market returns, Fund performance, and other factors. There can be no assurance that a change in market conditions or other factors will not result in a change in a Fund’s distribution rate at a future time. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (“ROC”) of your investment in a Fund. Because the distribution rate may include a ROC, it should not be confused with yield or performance.

    Average Annual Total Returns Based on NAV and Market Price (“MKT”) of Common Shares as of
    September 30, 2024:

    Fund NYSE
    Symbol    		 Inception
    Date    		   1 Year 5 Year 10 Year Since
    Inception
    PIMCO Corporate & Income Strategy Fund (NYSE: PCN) 12/21/2001 NAV 23.51% 7.45% 8.44% 10.85%
    MKT 29.84% 4.85% 9.27% 10.72%
    PIMCO Corporate & Income Opportunity Fund (NYSE: PTY) 12/27/2002 NAV 26.15% 8.88% 9.91% 12.73%
    MKT 22.38% 5.99% 9.70% 12.33%
    PIMCO Global StocksPLUS® & Income Fund (NYSE: PGP) 5/31/2005 NAV 35.45% 7.99% 8.40% 10.74%
    MKT 41.62% 4.07% 1.98% 7.19%
    PIMCO High Income Fund (NYSE: PHK) 4/30/2003 NAV 23.03% 6.67% 8.67% 10.56%
    MKT 28.03% 2.60% 3.68% 7.94%
    PIMCO Strategic Income Fund, Inc. (NYSE: RCS) 2/24/1994 NAV 25.91% 3.96% 5.11% 7.70%
    MKT 60.73% 6.94% 8.09% 8.86%
    PCM Fund, Inc. (NYSE: PCM) 9/2/1993 NAV 17.12% 3.21% 6.11% 8.30%
    MKT 1.89% 3.96% 7.48% 8.30%
    PIMCO Income Strategy Fund (NYSE: PFL) 8/29/2003 NAV 22.55% 6.24% 6.95% 6.86%
    MKT 26.23% 5.41% 7.52% 6.71%
    PIMCO Income Strategy Fund II (NYSE: PFN) 10/29/2004 NAV 22.66% 5.75% 6.94% 6.14%
    MKT 30.66% 5.10% 7.79% 6.12%
    PIMCO Dynamic Income Fund (NYSE: PDI) 5/30/2012 NAV 22.25% 4.97% 7.38% 11.00%
    MKT 35.83% 3.89% 9.31% 11.54%
    PIMCO Dynamic Income Opportunities Fund (NYSE: PDO) 1/29/2021 NAV 25.12% – – 1.34%
    MKT 34.18% – – 2.67%
    PIMCO Municipal Income Fund (NYSE: PMF) 6/29/2001 NAV 19.11% -1.09% 3.02% 5.32%
    MKT 29.67% -2.20% 2.93% 4.95%
    PIMCO California Municipal Income Fund (NYSE: PCQ) 6/29/2001 NAV 19.49% -0.36% 3.28% 5.38%
    MKT 25.03% -8.48% 1.74% 4.43%
    PIMCO New York Municipal Income Fund (NYSE: PNF) 6/29/2001 NAV 17.33% -1.72% 2.44% 3.86%
    MKT 21.18% -6.10% 1.74% 3.31%
    PIMCO Municipal Income Fund II (NYSE: PML) 6/28/2002 NAV 18.92% -0.82% 3.28% 4.56%
    MKT 29.12% -4.55% 3.84% 4.40%
    PIMCO California Municipal Income Fund II (NYSE: PCK) 6/28/2002 NAV 20.62% -1.04% 3.17% 3.57%
    MKT 30.76% -3.83% 1.55% 2.60%
    PIMCO New York Municipal Income Fund II (NYSE: PNI) 6/28/2002 NAV 17.66% -1.62% 2.65% 3.94%
    MKT 28.89% -3.53% 1.69% 3.25%
    PIMCO Municipal Income Fund III (NYSE: PMX) 10/31/2002 NAV 19.57% -1.18% 3.35% 4.33%
    MKT 34.49% -3.45% 3.28% 3.91%
    PIMCO California Municipal Income Fund III (NYSE: PZC) 10/31/2002 NAV 19.28% -0.32% 3.30% 3.76%
    MKT 14.90% -3.22% 2.14% 3.12%
    PIMCO New York Municipal Income Fund III (NYSE: PYN) 10/31/2002 NAV 18.13% -1.41% 2.27% 2.65%
    MKT 24.76% -3.61% 1.28% 2.02%
    PIMCO Access Income Fund (NYSE: PAXS) 1/31/2022 NAV 21.95% – – 2.53%
    MKT 34.98% – – 5.21%
    PIMCO Dynamic Income Strategy Fund (NYSE: PDX) 02/01/2019 NAV 21.12% 14.33% – 11.89%
    MKT 25.42% 15.21% – 11.52%

    Performance for periods of more than one year is annualized.

    Past performance is not a guarantee or a reliable indicator of future results. There can be no assurance that a Fund or any investment strategy will achieve its investment objectives or structure its investment portfolio as anticipated. An investment in a Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Shares may be worth more or less than original purchase price. Due to market volatility, current performance may be lower or higher than average annual returns shown. Returns are calculated by determining the percentage change in net asset value (“NAV”) or market price (as applicable) of the Fund’s common shares in the specific period. The calculation assumes that all dividends and distributions, if any, have been reinvested. NAV and market price returns do not reflect broker sales charges or commissions in connection with the purchase or sales of Fund shares and includes the effect of any expense reductions. Returns for a period of less than one year are not annualized. Returns for a period of more than one year represent the average annual return. Performance at market price will differ from results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about a Fund, market conditions, supply and demand for a Fund’s shares or changes in Fund dividends and distributions.

    Additional Information

    Distributions from PMF, PML, PMX, PCQ, PCK, PZC, PNF, PNI and PYN are generally exempt from regular federal income taxes (i.e., excluded from gross income for federal income tax purposes but not necessarily exempt from the federal alternative minimum tax). In addition, distributions from PCQ, PCK and PZC are also generally exempt from California state income taxes, and distributions from PNF, PNI and PYN are generally exempt from New York State and city income taxes. There can be no assurance that all distributions paid by these Funds will be exempt from federal income taxes or applicable state or local income taxes.

    Distributions may include ordinary income, net capital gains and/or a return of capital. Generally, a return of capital occurs when the amount distributed by a Fund includes a portion of (or is comprised entirely of) your investment in the Fund in addition to (or rather than) your pro-rata portion of the Fund’s net income or capital gains. A Fund’s distributions in any period may be more or less than the net return earned by the Fund on its investments, and therefore should not be used as a measure of performance or confused with “yield” or “income.” A return of capital is not taxable; rather it reduces a shareholder’s tax basis in his or her shares of a Fund.

    If a Fund estimates that a portion of a distribution may be comprised of amounts from sources other than net investment income, as determined in accordance with its internal accounting records and related accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, a Fund estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between a Fund’s daily internal accounting records and practices, the Fund’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, a Fund’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that a Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Please visit www.pimco.com for the most recent Section 19 Notice, if applicable, and most recent shareholder reports for additional information regarding the estimated composition of distributions. Final determination of a distribution’s tax character will be provided to shareholders when such information is available.

    The tax treatment and characterization of a Fund’s distributions may vary significantly from time to time because of the varied nature of the Fund’s investments. For example, a Fund may enter into opposite sides of multiple interest rate swaps or other derivatives with respect to the same underlying reference instrument (e.g., a 10-year U.S. treasury) that have different effective dates with respect to interest accrual time periods for the principal purpose of generating distributable gains (characterized as ordinary income for tax purposes) that are not part of the Fund’s duration or yield curve management strategies. In such a “paired swap transaction”, the Fund would generally enter into one or more interest rate swap agreements whereby the Fund agrees to make regular payments starting at the time the Fund enters into the agreements equal to a floating interest rate in return for payments equal to a fixed interest rate (the “initial leg”). The Fund would also enter into one or more interest rate swap agreements on the same underlying instrument, but take the opposite position (i.e., in this example, the Fund would make regular payments equal to a fixed interest rate in return for receiving payments equal to a floating interest rate) with respect to a contract whereby the payment obligations do not commence until a date following the commencement of the initial leg (the “forward leg”).

    A Fund may engage in investment strategies, including those that employ the use of derivatives, to, among other things, seek to generate current, distributable income, even if such strategies could potentially result in declines in the Fund’s NAV. A Fund’s income and gain-generating strategies, including certain derivatives strategies, may generate current income and gains taxable as ordinary income sufficient to support monthly distributions even in situations when the Fund has experienced a decline in net assets due to, for example, adverse changes in the broad U.S. or non-U.S. equity markets or the Fund’s debt investments, or arising from its use of derivatives. Because some or all of these transactions may generate capital losses without corresponding offsetting capital gains, portions of a Fund’s distributions recognized as ordinary income for tax purposes (such as from paired swap transactions) may be economically similar to a taxable return of capital when considered together with such capital losses. The tax treatment of certain derivatives in which a Fund invests may be unclear and thus subject to recharacterization. Any recharacterization of payments made or received by a Fund pursuant to derivatives potentially could affect the amount, timing or character of Fund distributions. In addition, the tax treatment of such investment strategies may be changed by regulation or otherwise.

    The common shares of the Funds trade on the New York Stock Exchange. As with any stock, the price of a Fund’s common shares will fluctuate with market conditions and other factors. If you sell your common shares of a Fund, the price received may be more or less than your original investment. Shares of closed-end investment management companies, such as the Funds, frequently trade at a discount from their net asset value and may trade at a price that is less than the initial offering price and/or the net asset value of such shares. Further, if a Fund’s shares trade at a price that is more than the initial offering price and/or the net asset value of such shares, including at a substantial premium and/or for an extended period of time, there is no assurance that any such premium will be sustained for any period of time and will not decrease, or that the shares will not trade at a discount to net asset value thereafter.

    The Funds’ daily New York Stock Exchange closing market prices, net asset values per share, as well as other information, including updated portfolio statistics and performance are available at pimco.com/closedendfunds or by calling the Funds’ shareholder servicing agent at (844) 33-PIMCO. Updated portfolio holdings information about a Fund will be available approximately 15 calendar days after such Fund’s most recent fiscal quarter end, and will remain accessible until such Fund files a shareholder report or a publicly available Form N-PORT for the period that includes the date of the information.

    A Fund’s shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not insured by the FDIC, the Federal Reserve Board or any other government agency. You may lose money by investing in a Fund. Certain risks associated with investing in a Fund are summarized below.

    An investor should consider, among other things, a Fund’s investment objectives, risks, charges and expenses carefully before investing. A Fund’s annual report contains (or will contain) this and other information about the Fund.

    A word about risk:
    Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Corporate debt securities are subject to the risk of the issuer’s inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to factors such as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. Bank loans are often less liquid than other types of debt instruments and general market and financial conditions may affect the prepayment of bank loans, and as such the prepayments cannot be predicted with accuracy. There is no assurance that the liquidation of any collateral from a secured bank loan would satisfy the borrower’s obligation, or that such collateral could be liquidated. Contingent Convertible (“Coco”) Bonds are bonds that are converted into equity of the issuing company if a pre-specified trigger occurs. Co-cos are subject to a different type of risk from traditional bonds and may result in a partial or total loss of value or may be converted into shares of the issuing company which may also have suffered a loss in value. Collateralized Loan Obligations (CLOs) may involve a high degree of risk and are intended for sale to qualified investors only. Investors may lose some or all of the investment and there may be periods where no cash flow distributions are received. CLOs are exposed to risks such as credit, default, liquidity, management, volatility, interest rate, and credit risk. Convertible securities may be called before intended, which may have an adverse effect on investment objectives. Floating rate loans are not traded on an exchange and are subject to significant credit, valuation and liquidity risk. A Fund may invest without limit in below investment grade debt securities (commonly referred to as “high yield” securities or “junk bonds”), including securities of stressed and distressed issuers. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Real estate investment trusts (or REITs) are subject to risk, such as poor performance by the manager, adverse changes to tax laws or failure to qualify for tax-free pass-through of income. Investments in residential/commercial mortgage loans and commercial real estate debt are subject to risks that include prepayment, delinquency, foreclosure, risks of loss, servicing risks and adverse regulatory developments, which risks may be heightened in the case of non-performing loans. Investing in distressed loans and bankrupt companies is speculative and the repayment of default obligations contains significant uncertainties. Distressed and Defaulted Securities involve substantial risks, including the risk of default. Such investments may be in default at the time of investment. In addition, these securities may fluctuate more in price, and are typically less liquid. Commodities contain heightened risk, including market, political, regulatory and natural conditions, and may not be appropriate for all investors. Many energy sector master limited partnerships (or MLPs) and other companies in which PDX may invest operate natural gas, natural gas liquids, crude oil, refined products, coal, or other facilities within the energy sector and will be susceptible to adverse economic, environmental, or regulatory occurrences affecting the sector including sharp decreases in crude oil or natural gas prices. Energy Sector Risk. PDX will be concentrated in the energy sector, and will therefore be susceptible to adverse economic, environmental, or regulatory occurrences affecting that sector. Private credit involves an investment in non-publicly traded securities which may be subject to illiquidity risk. Portfolios that invest in private credit may be leveraged and may engage in speculative investment practices that increase the risk of investment loss. A Fund will also have exposure to such risks through its investments in mortgage and asset-backed securities, which are highly complex instruments that may be sensitive to changes in interest rates and subject to early repayment risk. Income from municipal bonds is exempt from federal income tax and may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. Structured products such as collateralized debt obligations are also highly complex instruments, typically involving a high degree of risk; use of these instruments may involve derivative instruments that could lose more than the principal amount invested. Sovereign securities are generally backed by the issuing government, obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. Concentration of assets in one or a few sectors may entail greater risk than a fully diversified portfolio and should be considered as only part of a diversified portfolio. Investing in foreign-denominated and/or -domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Leveraging transactions, including borrowing, typically will cause a portfolio to be more volatile than if the portfolio had not been leveraged.  Leveraging transactions typically involve expenses, which could exceed the rate of return on investments purchased by a fund with such leverage and reduce fund returns.  The use of leverage may cause a portfolio to liquidate positions when it may not be advantageous to do so.  Leveraging transactions may increase a fund’s duration and sensitivity to interest rate movements. Derivatives may involve certain costs and risks, such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Each of PDO, PNF and PYN is non-diversified, which means that it may invest its assets in a smaller number of issuers than a diversified Fund.

    Limited Term Risk. With respect to PDX, PDO and PAXS (each, for purposes of this paragraph only, a “Limited Term Fund”), unless the limited term provision of a Limited Term Fund’s Amended and Restated Agreement and Declaration of Trust (the “Declaration of Trust”) is amended by shareholders in accordance with the Declaration of Trust, or unless a Limited Term Fund completes a tender offer, as of a date within twelve months preceding the Dissolution Date (as defined below), to all common shareholders to purchase 100% of the then outstanding common shares of such Limited Term Fund at a price equal to the NAV per common share on the expiration date of the tender offer (an “Eligible Tender Offer”), and converts to perpetual existence, such Limited Term Fund will terminate. PDX will terminate on or about January 29, 2031; PDO will terminate on or about January 27, 2033; and PAXS will terminate on or about January 27, 2034 (each such termination date, a “Dissolution Date”). No Limited Term Fund is a “target term” fund whose investment objective is to return its original net asset value on the Dissolution Date or in an Eligible Tender Offer. Because the assets of each Limited Term Fund will be liquidated in connection with the dissolution, such Limited Term Fund will incur transaction costs in connection with dispositions of portfolio securities. The Limited Term Funds do not limit their investments to securities having a maturity date prior to the applicable Dissolution Date and may be required to sell portfolio securities when they otherwise would not, including at times when market conditions are not favorable, which may cause such Limited Term Fund to lose money. In particular, a Limited Term Fund’s portfolio may still have large exposures to illiquid securities as its Dissolution Date approaches, and losses due to portfolio liquidation may be significant. Beginning one year before the applicable Dissolution Date (the “Wind-Down Period”), a Limited Term Fund may begin liquidating all or a portion of its portfolio, and may deviate from its investment strategy and may not achieve its investment objectives. As a result, during the Wind-Down Period, a Limited Term Fund’s distributions may decrease, and such distributions may include a return of capital. A Limited Term Fund’s investment objectives and policies are not designed to seek to return investors’ original investment upon termination of such Limited Term Fund, and investors may receive more or less than their original investment upon termination of such Limited Term Fund. As the assets of a Limited Term Fund will be liquidated in connection with its termination, such Limited Term Fund may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, which may cause such Limited Term Fund to lose money.

    Closed-end funds, unlike open-end funds, are not continuously offered. After the initial public offering, shares are sold on the open market through a stock exchange. Closed-end funds may be leveraged and carry various risks depending upon the underlying assets owned by a fund. Investment policies, management fees and other matters of interest to prospective investors may be found in each closed-end fund annual and semi-annual report. For additional information, please contact your investment professional or call 1-844-337-4626.

    About PIMCO

    PIMCO was founded in 1971 in Newport Beach, California and is one of the world’s premier fixed income investment managers. Today we have offices across the globe and 3,000+ professionals united by a single purpose: creating opportunities for investors in every environment. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.

    Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO’s sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statement.

    This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America LLC in the United States and throughout the world. PIMCO Investments LLC, 1633 Broadway, New York, NY 10019, is a company of PIMCO. ©2024, PIMCO.

    For information on PIMCO Closed-End Funds:
    Financial Advisors: (800) 628-1237
    Shareholders: (844) 337-4626 or (844) 33-PIMCO
    PIMCO Media Relations: (212) 597-1054

    The MIL Network –

  • MIL-OSI: Orca Energy Group Inc. Announces an Operational Update

    Source: GlobeNewswire (MIL-OSI)

    TORTOLA, British Virgin Islands, Nov. 01, 2024 (GLOBE NEWSWIRE) — November 1, 2024: Orca Energy Group Inc. (“Orca” or the “Company“) and includes its subsidiaries and affiliates, including PanAfrican Energy Tanzania Limited (“PAET“) and Pan African Energy Corporation (Mauritius) (“PAEM“) (TSX-V: ORC.A, ORC.B) announces an operational update.

    Unless otherwise stated, all amounts referred to herein are expressed in United States dollars (“$”).

    Songas Update

    On October 30, 2024, PAET was advised by Songas Limited (“Songas”) that the Interim Power Purchase Agreement (“PPA”) will expire on October 31, 2024. At midnight on October 31, 2024, Songas shutdown the Songas Power Plan and it is unknown how long this will be in force. In the event that a new PPA is not entered into, there is a risk the Songas Power plant will shutdown indefinitely. This would adversely impact demand for production volumes from the Songo Songo gas field. At this time, it is unknown if a new PPA will be entered into.

    Production guidance for the annual average Additional Gas (as defined below) sales is now forecast to be 65 – 68 MMcfd (100% conventional natural gas). This range incorporates the exclusion of all volumes previously forecast to be supplied to Songas for November and December, and certain volumes lifted but disputed by a major industrial customer as a consequence of the position taken by the Tanzania Petroleum Development Corporation (“TPDC“) and Government of Tanzania in relation to the cessation of Protected Gas (as detailed and defined below). The Songo Songo gas field continues to operate as normal.

    Following cessation of Protected Gas on July 31, 2024, despite the absence of a contract to do so, Songas continued to lift volumes of gas in August and September, at an average rate of 17.8 MMcfd. On September 23, 2024, the Company was notified by Songas that it acknowledges it had lifted this volume, but due to TPDC’s refusal to approve a Gas Sales Agreement for this Additional Gas, they would elect to pay only 19.5% of such volumes. This accords with the payment arrangements for Complex Additional Gas under the contracted payment terms for Protected Gas which ended on July 31, 2024. Payment was made on this basis by Songas on October 10, 2024, in the amount equivalent to USD $410,000, representing 19.5% of the total invoiced amount of USD $2.1 million.

    Only Additional Gas attracted a Processing and Transportation (“P&T“) tariff up to July 31, 2024, (when Protected Gas was active), while Protected Gas did not. In contradiction of their position regarding payment above, Songas has invoiced PAET for the P&T tariff consistent with all gas volumes shipped to Songas during August as being AG. This amount has been fully accounted for and paid by PAET in accordance with the terms of the current agreements.

    Operations

    During Q3-2024, the Company successfully completed a production and saturation logging program in three wells. Initial results indicate that the wells and field are performing in line with expectations, with final interpretation of results continuing in order to update longer term reservoir management plans.

    The workover program on SS-7 has completed a complex mobilization to Songo Songo Island, and the operational well intervention phase has commenced. Operations, including further logging, are expected to last for approximately three weeks. The objective of the work is to restore the mechanical integrity of the well to shutoff water production in order to restart production from the southern compartment of the gas field. On conclusion of the intervention, SS-7 is forecast to return to production in November 2024. The total expected project cost has increased to $22.0 million from $16.6 million primarily as a result of vendor logistical delays and more recently weather delays during both the mobilization from the Mombasa to Songo Songo Island and positioning the barges and jackup platform on the offshore SS-7 well.

    Commercial

    In August 2024, the Company issued a notice of dispute (“Notice of Dispute”), in respect of an investment treaty claim against the Government of Tanzania for breach of the Agreement on Promotion and Reciprocal Protection of Investment between the Government of the Republic of Mauritius and the Government of Tanzania, and a contractual dispute against the Government of Tanzania and TPDC, for breaches of the: (i) PSA, and (ii) GA (as defined herein). Initial meetings with both the Advisory and Coordinating Committees were held during the week of October 14, 2024, without any resolution on the key issues in dispute. The matters have now been referred to relevant entity’s chief executive officers in accordance with the dispute resolution process. These meetings have been proposed for November or December. Further updates on this matter will be made as appropriate.  

    PAET has continued to supply gas to Tanzania Portland Cement PLC (“TPCPLC”) during August 2024 and September 2024. As a consequence of the position taken by TPDC, PAET was unable to invoice TPCPLC for volumes anticipated to have been supplied under the Supplementary Gas Agreement (“SGA“). The SGA had been agreed to by TPCPLC and was due to commence on August 1, 2024, but TPDC refused to approve the agreement. Therefore, PAET has invoiced all volumes lifted as Additional Gas under the Gas Sales Agreement which was established in 2008. It is not known if TPCPLC will pay all or any element of these invoices. As of the date of hereof, the August invoice for $2.64 million was outstanding, with the September invoice of $2.75 million being due on November 5, 2024. The Company will provide further updates in due course on this matter.

    Financial

    • The Company exited September 30, 2024, with cash and cash equivalents of $101.7 million (June 30, 2024: $97.2 million) and no change to long-term debt of $25.1 million (June 30, 2024: $25.1 million). Cash held in hard currencies (USD, Euro, GBP, CDN) was $93.2 million at September 30, 2024 (June 30, 2024: $86.1 million).
    • Following the extension to the Portfolio Gas Supply Agreement (“PGSA”) with the Tanzania Electricity Supply Company Limited (“TANESCO”) between PAET, TPDC and TANESCO, TANESCO has taken delivery of approximately   26.7 MMcfd in September 2024. As of September 30, 2024, the receivable from TANESCO was $8.1 million, and the TANESCO long-term receivable was $22.0 million.

    Orca Energy Group Inc.

    Orca Energy Group Inc. is an international public company engaged in natural gas development and supply in Tanzania through its subsidiary, PAET. Orca trades on the TSX Venture Exchange under the trading symbols ORC.B and ORC.A.

    The principal asset of Orca is its indirect interest in the PSA with TPDC and the Government of Tanzania in the United Republic of Tanzania. This PSA covers the production and marketing of certain conventional natural gas from the Songo Songo license offshore Tanzania. The PSA defines the gas produced from the Field as “Protected Gas” and “Additional Gas”. The Protected Gas is owned by TPDC and prior to July 31, 2024 was sold under the Gas Agreement (“GA”) between the Government of Tanzania, TPDC, Songas and PEAT, to Songas and TPCPLC. Protected Gas production ceased on July 31, 2024, and accordingly all gas is to be sold as Additional Gas. PAET continues to act in the best interests of its Tanzanian stakeholders and make natural gas available to Songas for power, so that the country can continue to benefit from a reliable power supply. The Company has consistently demonstrated its commitment to supporting the Tanzanian economy, following 20 years of continued investment in the country. However, as detailed in recent announcements, and as set out in the GA, the supply of Protected Gas ceased on July 31, 2024, with all gas now being produced from the Songo Songo gas field, being designated as Additional Gas. PAET’s position is that it is entitled to compensation at commercial rates for any such gas supplied as Additional Gas and for which it has not received payment as a result of the position taken by TPDC. This is subject to ongoing dispute with TPDC, with TPDC asserting that Protected Gas continued after July 31, 2024.

    Songas is the owner of the infrastructure that enables the gas to be processed and delivered to Dar es Salaam, which includes a gas processing plant on Songo Songo Island.

    For further information please contact:

    Jay Lyons
    ir@orcaenergygroup.com

    Lisa Mitchell
    ir@orcaenergygroup.com

    For media enquiries:

    Celicourt (PR)
    Jimmy Lea
    Mark Antelme
    Orca@celicourt.uk
    +44 (0)20 7770 6424

    Forward-Looking Information

    This press release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact included in this press release, which address activities, events or developments that Orca expects or anticipates to occur in the future, are forward-looking statements.

    Forward-looking statements often contain terms such as may, will, should, anticipate, expect, continue, estimate, believe, project, forecast, plan, intend, target, outlook, focus, could and similar words suggesting future outcomes or statements regarding an outlook.

    More particularly, this press release contains, without limitation, forward-looking statements pertaining to the following: the Company’s expectation that PAET will receive payment in respect of Protected Gas supplied after July 31, 2024; expectations that SS-7 will return to production in November 2024; expectations around entering into a new PPA; expectations in respect of the Songas Power plant; expectations that an indefinite shutdown of the Songas Power plant will adversely impact demand for production volumes from the Songo Songo gas filed; expectation that forecasted Additional Gas will decrease; expectations in respect to the results of the production and saturation logging program; expectations that the PPA will be replaced; the concern that if the Protected Gas is not resolved, the Company will be required to reduce costs and ensure capital expenditure projects on the Songo Songo gas field are in line with contracts and economic returns; expectations that the SGA will be entered into and the terms abided by; the expectations regarding future revenues of the Company; expectations as to the resolution of the Notice of Dispute; the Company’s plans to provide updates on the Notice of Dispute and TPCPLC invoice; and expectations that Songas will pay the balance of the invoice in respect to Additional Gas. Although management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, future actions, future payments, levels of activity, access to resources, results of negotiation, results from arbitration, amount of damages or costs incurred by the Company relating to negotiations and/or arbitration, since such expectations are inherently subject to significant business, economic, operational, competitive, political and social uncertainties and contingencies.

    These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control, and many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by the Company, including, but not limited to: uncertainties involving the Notice of Dispute; uncertainties involving the SGA; uncertainties involving the completion of the SS-7 workplan; various uncertainties involved in the extension of the Songo Songo license; risk that timing is not as anticipated with respect to SS-7, including timing of return to production; risk that meetings related to the Notice of Dispute are not held on the anticipated timing; risk the PPA will not be replaced; risk of decreased demand for production volumes from the Songo Songo gas field; risk that Orca does not receive payment of TPCPLC invoices; risk Orca has to make the P&T tariff payments to Songas; risk the Songas Power plant will shutdown indefinitely; risk that Songas receivables increases; negative effect on the Company’s rights under the PSA and other agreements relating to its business in Tanzania; changes in laws and regulations; impact of local content regulations and variances in the interpretation and enforcement of such regulations; uncertainty regarding results through negotiations and/or exercise of legally available remedies; failure to successfully negotiate agreements; risks of non-payment by recipients of natural gas supplied by the Company; changes in national and local government legislation, taxation, controls, or regulations and/or changes in the administration of laws, policies, and practices, expropriation or nationalization of property and political or economic developments in Tanzania; lack of certainty with respect to foreign legal systems, corruption, and other factors that are inconsistent with the rule of law; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; timing of receipt of, or failure to comply with, necessary permits and approvals; and potential damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s dealings with the Government of Tanzania, TPDC and TANESCO, whether true or not. Therefore, the Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by these forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive.

    Such forward-looking statements are based on certain assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate in the circumstances, including, but not limited to: the Company’s relationship with TPDC and the Government of Tanzania; the current status of negotiations in respect of the SGA, GA and PSA; the current status of actions involved in the Notice of Dispute; accurate assessment by the Company of the merits of its rights and obligations in relation to TPDC and the Government of Tanzania and other stakeholders in the Songo Songo gas field; receipt of required regulatory approvals; the Company’s ability to maintain strong commercial relationships with the Government of Tanzania and other state and parastatal organizations and other stakeholders in the Songo Songo gas field; the current and future administration in Tanzania continues to honor the terms of the PSA and the Company’s other principal agreements; the Company’s relationship with TPCPLC; anticipated operations and timing with respect to SS-7; Orca’s operations continue as anticipated, including in respect of production results; and other matters.

    The forward-looking statements contained in this press release are made as of the date of this news release and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

    The MIL Network –

  • MIL-OSI Asia-Pac: Department of Financial Services (DFS), Ministry of Finance, successfully concludes Special Campaign 4.0

    Source: Government of India (2)

    Department of Financial Services (DFS), Ministry of Finance, successfully concludes Special Campaign 4.0

    Special Campaign 4.0 demonstrated commitment to cleanliness and efficiency for DFS and its affiliated organisations across the country

    100% disposal of Public Grievances and Appeals achieved

    More than 38,500 sites cleaned; Cleanliness drive frees up 11 lakh square feet space; PSBs and other financial institutions under DFS monetise Rs. 4.50 crore through scrap disposal

    Under the citizen centric initiatives, financial literacy camps organised in more than 510 locations

    Posted On: 01 NOV 2024 4:47PM by PIB Delhi

    The Department of Financial Services (DFS), Ministry of Finance, and its affiliated organisations successfully completed the one month-long Special Campaign 4.0 with special focus on minimising pendency, and institutionalising Swachhata from 2nd-31st October 2024.

    The DFS launched the Special Campaign 4.0 with special impetus on better space management, customer centric initiatives, making the environment clean and green, record management and disposal of scrap.

    All the organisations of DFS, Public Sector Banks (PSBs), Public Sector Insurance Companies and other Public Sector Financial Institutions like NABARD, SIDBI, EXIM Bank, NHB, IIFCL etc. actively participated in the Special Campaign 4.0.

    The DFS achieved 100% disposal of all identified Public Grievances, Public Appeals, PMO references and MP References. 11.79 lakh square feet of space has freed and revenue of Rs. 4.50 crore has been earned through scrap disposal. The campaign was conducted in more than 38,500 sites across the country.

    Twelve Public Sector Banks and 43 Regional Rural Banks organised Pension Grievances Weeks. In the camps, apart from the grievances registered & redressed, pensioners were also educated regarding submission of online life certificate and door step banking facilities.  In more than 52,208 branches across the country approx. 1.45 lakhs pensioners were contacted.   

    Various videos and static contents were posted on Social media platforms by PSBs and RRBs to spread awareness towards Cyber Security. Safety tips and practices were shared through these educational posts to combat against cyber related frauds.

    Highlights & achievements of the Department and its organisations:

    1. Cleanliness Campaigns/Sites/Offices Cleaned: 38,577
    2. Space Freed: 11,79,219.00 sq. ft.
    3. Revenue Earned from Scrap Disposal: Rs. 4,54,53,508.00
    4. Disposal of Public Grievances: 9,725
    5. Disposal of Public Grievances Appeals: 2,378

    The DFS sensitised its all organisations to use the opportunity of Special Campaign 4.0 to enhance customer interface and to undertake citizen centric initiatives. The organisations of DFS, being in the financial services sector, were conveyed to undertake the activities like Financial Literacy campaigns, Registration/Updation of Nomination in bank accounts, Activating Dormant Accounts, Renewal of Locker Agreements, Disposal of Pending Claims etc. The achievements during the Campaign on these parameters are as follows:

    1. Financial Literacy Camps organised: More than 510 locations across the country.
    2. Number of Dormant Accounts Activated- 79.97 lakh.
    3. Number of Accounts in which Nomination Updated: 29.02 lakh.
    4. Number of Locker Agreements Renewed- 1.10 lakh.
    5. LIC of India settled 12.77 lakh unclaimed policies and settled claims of more than 10,742 cr.

    All the activities undertaken by organisations were regularly posted on various social media platforms. More than 1,000 posts were made during the campaign. As part of the initiative, customers of various organisations, staff members, senior management & head of organisations also gave feedback about the initiatives during the campaign on various social media platforms.

    Link of social media posts on Cyber Security & Fraud:

     

    Link of Testimonial Videos are as follows:

     

    ****

    NB/KMN

    (Release ID: 2070163) Visitor Counter : 57

    MIL OSI Asia Pacific News –

  • MIL-OSI Security: New Jersey Resident Pleads Guilty to Helping Russia’s Defense Sector Evade U.S. Export Controls

    Source: Federal Bureau of Investigation FBI Crime News (b)

    Defendant Facilitated Russia’s Acquisition of Millions of Dollars of U.S.-Made Dual-Use Electronics Used in Radar, Surveillance, and Military Research and Development

    Vadim Yermolenko, 43, a dual U.S.-Russian national and resident of New Jersey, pleaded guilty to conspiracy to violate the Export Control Reform Act, conspiracy to commit bank fraud, and conspiracy to defraud the United States for his role in a transnational procurement and money laundering network that sought to acquire sensitive dual-use electronics for Russian military and intelligence services.

    “This defendant joins the nearly two dozen other criminals that our Task Force KleptoCapture has brought to justice in American courtrooms over the past two and a half years for enabling Russia’s military aggression,” said Attorney General Merrick B. Garland. “This defendant admitted to playing a central role in a now-disrupted scheme with Russian intelligence services to smuggle sniper rifle ammunition and U.S. military grade equipment into Russia. The Justice Department will never stop working to aggressively disrupt and prosecute both the criminal networks and the individuals responsible for bolstering the Russian war machine.”

    “The illegal export of sensitive, dual-use technologies in support of Russia’s war effort poses a significant threat to the United States and its allies and must not be tolerated,” said FBI Director Christopher Wray. “The defendant in this case played a key role in exporting U.S. technology that in the hands of our adversaries could pose great danger to our national security. The FBI and its partners will continue to focus on protecting strategic innovation at home and hold accountable anyone who facilitates illegal transfers to hostile nations like Russia.”

    “To facilitate the Russian war machine, the defendant played a critical role in exporting sensitive, dual-use technologies to Russia, facilitating shipping and the movement of millions of dollars through U.S. financial institutions,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This plea highlights my Office and our law enforcement partners continued commitment to use all tools available to prosecute those who unlawfully procure U.S. technology to send to Russia.”

    According to court documents, the defendant was affiliated with Serniya Engineering and Sertal LLC, Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment.

    The defendant and his co-conspirators unlawfully purchased and exported highly sensitive, export controlled electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications. Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the U.S. Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions and imposed additional export restrictions on Serniya, Sertal, and several individuals and companies used in the scheme, calling them “instrumental to the Russian Federation’s war machine.”

    Sertal was licensed to conduct highly sensitive and classified procurement activities by Russia’s Federal Security Service (FSB), Russia’s principal security agency and the main successor agency to the Soviet Union’s KGB. The Serniya network’s Russian clients included State Corporation Rostec, the state-owned defense conglomerate; State Atomic Energy Corporation Rosatom (Rosatom); the Ministry of Defense; the Foreign Intelligence Service (SVR); and various components of the FSB, including the Department of Military Counterintelligence and the Directorate for Scientific and Technological Intelligence, commonly known as “Directorate T.”

    To carry out the scheme, the defendant helped set up numerous shell companies and dozens of bank accounts in the U.S. to illicitly move money and export-controlled goods. During the period charged in the indictment, more than $12 million passed through accounts owned or controlled by the defendant. These funds were used in part to purchase sensitive equipment used in radar, surveillance and military research and development. In one instance, money from one of the defendant’s accounts was used to purchase export-controlled sniper bullets, which were intercepted in Estonia before they could be smuggled into Russia.

    Co-defendant Alexey Brayman previously pleaded guilty to conspiracy to defraud the United States and is awaiting sentence. The case against co-defendant Vadim Konoshchenok, a suspected FSB operative, was dismissed after Konoshchenok was removed from the United States as part of a prisoner exchange negotiated between the United States and Russia. Defendant Nikolaos Bogonikolos’ case remains pending. Defendants Boris Livshits, Alexey Ippolitov, Svetlana Skvortsova, and Yevgeniy Grinin remain at large.        

    The FBI, BIS, and IRS are investigating the case.

    The U.S. Customs and Border Protection, Department of Justice’s Office of International Affairs, and Estonian authorities provided valuable assistance.

    Assistant U.S. Attorneys Artie McConnell, Andrew D. Reich, and Matthew Skurnik for the Eastern District of New York are prosecuting the case, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.

    Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.

    MIL Security OSI –

  • MIL-OSI: Lumine Group Inc. Announces Results for the Three and Nine Months Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Nov. 01, 2024 (GLOBE NEWSWIRE) — Lumine Group Inc. (“Lumine Group” or “the Company”) (TSXV:LMN) announces financial results for the three and nine months ended September 30, 2024. All amounts referred to in this press release are in US dollars unless otherwise stated.

    The following press release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2024, and management’s discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2024, which can be found on SEDAR+ at www.sedarplus.ca. Additional information about Lumine Group is also available on SEDAR+ and on Lumine Group’s website www.luminegroup.com.

    Q3 2024 Headlines:

    • Revenue grew 35% to $177.3 million compared to $131.3 million in the same quarter prior year (including -9% organic growth after adjusting for foreign exchange impacts).
    • The Company generated operating income of $60.7 million during the quarter, a 35% increase from $45.1 million in the same quarter prior year.
    • The Company generated a net income of $18.3 million during the quarter, from net loss of $178.6 million in the same quarter prior year.
    • Cash flows from operations (“CFO”) decreased $25.7 million to $18.8 million compared to $44.5 million in Q3 2023, representing a decrease of 58%.
    • Free cash flow available to shareholders (“FCFA2S”) decreased $29.2 million to $10.4 million compared to $39.6 million in Q3 2023, representing a decrease of 74%.

    Year-to-Date Q3 2024 Headlines:

    • Revenue grew 35% to $481.3 million compared to $356.6 million in the same nine-month period prior year (including -8% organic growth after adjusting for foreign exchange impacts).
    • The Company generated operating income of $141.7 million in the nine-month period ended September 30, 2024, an increase of 37% from $103.1 million in the same period prior year.
    • An expense of $317.4 million was incurred in the nine-month period ended September 30, 2024, up to the Mandatory Conversion Date, $298.7 million is related to the mark to market adjustments on the fair value of the Preferred and Special Securities and $18.7 million is related to the dividend payable. Fair value of the preferred and special securities is primarily dependent on the price movement of the Company’s Subordinate Voting Shares.
    • The Company generated a net loss of $288.3 million during the nine-month period ended September 30, 2024, from net loss of $1,319.3 million in the same period prior year. The net loss is primarily related to the redeemable preferred and special securities expense.
    • CFO decreased $18.0 million to $63.9 million compared to $81.9 million in the nine-month period ended September 30, 2023, representing a decrease of 22%.
    • FCFA2S decreased $26.6 million to $42 million compared to $68.6 million in the nine-month period ended September 30, 2023, representing a decrease of 39%.

    Total revenue for the three months ended September 30, 2024 is $177.3 million, an increase of 35%, or $46.0 million, compared to $131.3 million for the comparable period in 2023. For the nine months ended September 30, 2024, total revenue was $481.3 million, an increase of 35%, or $124.7 million, compared to $356.6 million for the comparable period in 2023. The increase for the three and nine months compared to the same period in the prior year is attributable to revenues from prior year and current year acquisitions. The Company experienced organic growth of -8% and -8%, respectively for the three and nine months ended September 30, 2024 or -9% and -8% after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. For acquired companies, organic growth is calculated as the difference between actual revenues achieved by each business in the financial period following acquisition, compared to the estimated revenues they achieved in the corresponding financial period preceding the date of acquisition by the Company. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

    Operating income for the three months ended September 30, 2024 was $60.7 million, an increase of 35%, or $15.6 million, compared to $45.1 million for the same period in 2023. Operating income for the nine months ended September 30, 2024 was $141.7 million, an increase of 37%, or $38.6 million, compared to $103.1 million for the same period in 2023. The increase for the three and nine-month periods is primarily attributable to prior year acquisitions. Operating income is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. See “Non-IFRS Measures”.

    Net Income for the three months ended September 30, 2024 was $18.3 million compared to net loss of $178.6 million for the same period in 2023. Net loss for the nine months ended September 30, 2024 was $288.3 million compared to net loss of $1,319.3 million for the same period in 2023. The decrease in net loss for the three and nine month periods is primarily attributable to the Mandatory Conversion of Preferred and Special Securities on March 25, 2024 such that no further preferred and special securities expense was booked in the current quarter.

    For the three months ended September 30, 2024, CFO decreased $25.7 million to $18.8 million compared to $44.5 million for the same period in 2023 representing a decrease of 58%. For the nine months ended September 30, 2024, CFO decreased $18.0 million to $63.9 million compared to $81.9 million for the same period in 2023 representing a decrease of 22%. The decrease in CFO in the three and nine month periods is primarily attributable to the impact of changes in non-cash operating assets and liabilities exclusive of effects of business combinations.

    For the three months ended September 30, 2024, FCFA2S decreased $29.2 million to $10.4 million compared to $39.6 million for the same period in 2023 representing a decrease of 74%. For the nine months ended September 30, 2024, FCFA2S decreased $26.6 million to $42.0 million compared to $68.6 million for the same period in 2023 representing a decrease of 39%. The decrease in the three and nine month periods is driven by lower CFO compared to the same periods in 2023. FCFA2S is a non-IFRS Measure. See “Non-IFRS Measures”.

    Non-IFRS Measures

    Operating income (loss) refers to income (loss) before income taxes, amortization of intangible assets, redeemable Preferred and Special Share expense, and finance and other expenses (income). We believe that operating income is useful supplemental information as it provides an indication of the profitability of the Company related to its core operations. Operating income (loss) is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that operating income (loss) should not be construed as an alternative to net income (loss).

    The following table reconciles operating income to net income:

      Three months ended
    September 30,    		 Nine months ended
    September 30,
      2024 2023   2024   2023  
    Net income (loss) 18.3 (178.6 ) (288.3 ) (1,319.3 )
    Adjusted for:        
    Amortization of intangible assets 29.6 21.4   81.6   57.7  
    Redeemable preferred and special securities expense – 194.8   317.4   1,346.0  
    Finance and other expense (income) 8.9 3.7   18.9   10.0  
    Income tax expense (recovery) 3.9 3.8   12.1   8.8  
    Operating income (loss) 60.7 45.1   141.7   103.1  

    Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on bank debt, transaction costs on bank debt, repayments of lease obligations, dividends paid to redeemable preferred and special securities holders, and property and equipment purchased. The Company believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Lumine Group does not make any acquisitions, or investments, and does not repay any debts. While the Company could use the FCFA2S to pay dividends or repurchase shares, the Company’s objective is to invest all of its FCFA2S in acquisitions which meet the Company’s hurdle rate.

    FCFA2S is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.

    The following table reconciles FCFA2S to net cash flows from operating activities:

      Three months ended
    September 30,    		 Nine months ended
    September 30,
      2024   2023   2024   2023  
    Net cash flows from operating activities: 18.8   44.5   63.9   81.9  
    Adjusted for:        
    Interest paid on lease obligations (0.1 ) (0.2 ) (0.4 ) (0.5 )
    Interest paid on other facilities (5.7 ) (2.8 ) (13.3 ) (6.4 )
    Credit facility transaction costs (0.0 ) 0.0   (1.9 ) (1.8 )
    Payment of lease obligations (1.6 ) (1.4 ) (4.6 ) (3.8 )
    Property and equipment purchased (1.1 ) (0.4 ) (1.7 ) (0.8 )
    Free cash flow available to shareholders 10.4   39.6   42.0   68.6  


    Forward Looking Statements

    Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Lumine Group or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Lumine Group assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.

    About Lumine Group Inc.

    Lumine Group acquires, strengthens, and grows, vertical market software businesses in the communications and media industry. Learn more at www.luminegroup.com.  

    For further information:

    David Nyland
    Chief Executive Officer
    Lumine Group
    investors@luminegroup.com
    +1-437-353-4910

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    Condensed Consolidated Interim Statements of Financial Position
    (In thousands of USD. Due to rounding, numbers presented may not foot.)

    Unaudited

      September 30, 2024 December 31, 2023
         
    Assets    
         
    Current assets:    
    Cash $ 180,357   $ 146,509  
    Accounts receivable, net   142,741     104,955  
    Unbilled revenue, net   49,551     39,858  
    Inventories   521     521  
    Other assets   40,727     44,862  
        413,897     336,705  
         
    Non-current assets:    
    Property and equipment   7,243     4,164  
    Right of use assets   7,716     11,973  
    Deferred income taxes   10,400     6,197  
    Other assets   12,939     13,063  
    Intangible assets and goodwill   826,041     763,793  
        864,339     799,190  
         
    Total assets $ 1,278,236   $ 1,135,895  
         
    Liabilities and Equity    
         
    Current liabilities:    
    Accounts payable and accrued liabilities $ 101,136   $ 97,533  
    Due to related parties, net   1,807     2,380  
    Current portion of bank debt   2,248     3,071  
    Deferred revenue   86,890     91,726  
    Acquisition holdback payables   656     19  
    Lease obligations   5,128     6,358  
    Income taxes payable   12,978     12,436  
    Preferred and Special Securities   –     4,469,996  
        210,843     4,683,519  
         
    Non-current liabilities:    
    Deferred income taxes   109,985     124,659  
    Bank debt   286,457     149,636  
    Lease obligations   3,583     6,921  
    Other liabilities   7,767     13,127  
        407,792     294,343  
         
    Total liabilities   618,635     4,977,862  
         
    Equity:    
    Capital stock   490,669     –  
    Contributed surplus   185,142     (1,015,661 )
    Accumulated other comprehensive income (loss)   (3,814 )   (6,296 )
    Retained earnings (deficit)   (12,396 )   (2,820,010 )
        659,601     (3,841,967 )
         
    Total liabilities and equity $ 1,278,236   $ 1,135,895  


    Condensed Consolidated Interim Statements of Income (Loss)
    (In thousands of USD, except per share amounts. Due to rounding, numbers presented may not foot.)

    Unaudited

      Three months ended September 30, Nine months ended September 30,
        2024     2023     2024     2023  
     
    Revenue                  
    License $ 12,798   $ 11,247   $ 36,205   $ 32,990  
    Professional services   32,780     23,061     86,622     63,328  
    Hardware and other   6,589     5,651     11,332     14,987  
    Maintenance and other recurring   125,167     91,342     347,099     245,262  
        177,334     131,301     481,258     356,567  
    Expenses        
    Staff   89,929     61,871     250,662     181,775  
    Hardware   3,657     3,374     6,595     9,825  
    Third party license, maintenance and professional services   8,575     7,783     28,981     20,568  
    Occupancy   2,246     1,064     4,117     2,630  
    Travel, telecommunications, supplies, software and equipment   4,152     5,218     23,660     15,104  
    Professional fees   2,637     2,060     11,124     12,292  
    Other, net   3,011     2,754     7,467     5,443  
    Depreciation   2,473     2,120     6,925     5,825  
    Amortization of intangible assets   29,616     21,351     81,648     57,668  
        146,296     107,595     421,179     311,130  
             
    Redeemable Preferred and Special Securities expense   –     194,817     317,362     1,346,020  
    Finance and other expenses (income), net   8,898     3,703     18,868     9,960  
        8,898     198,520     336,230     1,355,980  
             
    Income (loss) before income taxes   22,140     (174,814 )   (276,151 )   (1,310,543 )
             
    Current income tax expense (recovery)   13,572     12,651     31,127     30,813  
    Deferred income tax expense (recovery)   (9,710 )   (8,815 )   (18,982 )   (22,042 )
    Income tax expense (recovery)   3,862     3,836     12,145     8,771  
             
    Net income (loss) $ 18,278   $ (178,650 ) $ (288,296 ) $ (1,319,314 )
                     
    Weighted average shares outstanding:                    
    Basic       256,620,389     74,040,058     199,991,663     71,967,707  
    Diluted       256,620,389     253,104,970     255,529,839     242,370,504  
                         
    Earnings per share:                    
    Basic and diluted     $ 0.07   $ (2.41 ) $ (1.44 )   (18.33 )
     


    Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
    (In thousands of USD. Due to rounding, numbers presented may not foot.)

    Unaudited

      Three months ended September 30, Nine months ended September 30,
        2024   2023     2024     2023  
             
    Net income (loss) $ 18,278 $ (178,650 ) $ (288,296 ) $ (1,319,314 )
             
    Items that are or may be reclassified subsequently to net income (loss):        
             
    Foreign currency translation differences from foreign operations and other   7,082   (4,657 )   2,482     (4,968 )
             
    Other comprehensive (loss) income for the year, net of income tax   7,082   (4,657 )   2,482     (4,968 )
             
    Total comprehensive income (loss) for the year $ 25,360 $ (183,307 ) $ (285,814 ) $ (1,324,282 )


    Condensed Consolidated Interim Statement of Changes in Equity
    (In thousands of USD. Due to rounding, numbers presented may not foot.)

    Unaudited

    Nine months ended September 30, 2024          
      Capital stock Contributed surplus Accumulated other comprehensive (loss) income Retained earnings (deficit) Total equity
               
    Balance at January 1, 2024 $ – $ (1,015,661 ) $ (6,296 ) $ (2,820,010 ) $ (3,841,967 )
               
    Total comprehensive income (loss) for the period:          
    Net income (loss)   –   –     –     (288,296 )   (288,296 )
               
    Other comprehensive income (loss):          
    Foreign currency translation differences from foreign operations and other   –   –     2,482     –     2,482  
    Total other comprehensive income (loss) for the period   –   –     2,482     –     2,482  
               
    Total comprehensive income (loss) for the period   –   –     2,482     (288,296 )   (285,814 )
               
    Settlement of Preferred and Special Share Dividends in Subordinate Voting Shares   87,368   –     –     –     87,368  
    Mandatory Conversion of Special and Preferred Shares   403,301   1,200,803     –     3,095,910     4,700,014  
    Balance at September 30, 2024 $ 490,669 $ 185,142   $ (3,814 ) $ (12,396 ) $ 659,601  


    Condensed Consolidated Interim Statement of Changes in Equity
    (In thousands of USD. Due to rounding, numbers presented may not foot.)

    Unaudited
    Nine months ended September 30, 2023
      Capital stock Contributed surplus Accumulated other comprehensive (loss) income Retained earnings (deficit) Total equity
               
    Balance at January 1, 2023 $ – $ 162,692   $ (8,912 ) $ –   $ 153,780  
               
    Total comprehensive income (loss) for the period:          
    Net income (loss)   –   –     –     (1,319,314 )   (1,319,314 )
               
    Other comprehensive income (loss):          
    Foreign currency translation differences from foreign operations and other   –   –     (4,968 )   –     (4,968 )
               
    Total other comprehensive income (loss) for the period   –   –     (4,968 )   –     (4,968 )
               
    Total comprehensive income (loss) for the period   –   –     (4,968 )   (1,319,314 )   (1,324,282 )
               
    Transactions with Parent, recorded directly in equity          
    Capital contributions by Parent   –   22,451     –     –     22,451  
    Amalgamation with Lumine Group (Holdings) Inc.   –   (1,200,804 )   –     –     (1,200,804 )
    Special Share conversion   –   –     –     5,110     5,110  
               
    Balance at September 30, 2023 $ – $ (1,015,661 ) $ (13,880 ) $ (1,314,204 ) $ (2,343,746 )


    Condensed Consolidated Interim Statements of Cash Flows
    (In thousands of USD. Due to rounding, numbers presented may not foot.)

    Unaudited      
      Three months ended September 30, Nine months ended September 30,
        2024     2023     2024     2023  
             
    Cash flows from (used in) operating activities:        
    Net income (loss) $ 18,278   $ (178,650 ) $ (288,296 ) $ (1,319,314 )
    Adjustments for:        
    Depreciation   2,473     2,120     6,925     5,825  
    Amortization of intangible assets   29,616     21,351     81,648     57,668  
    Contingent consideration adjustments   (1,357 )   58     (399 )   (2,420 )
    Preferred and Special Securities expense (income)   –     194,817     317,362     1,346,020  
    Finance and other expenses (income)   8,898     3,703     18,868     9,960  
    Income tax expense (recovery)   3,862     3,836     12,145     8,771  
    Change in non-cash operating assets and liabilities exclusive of effects of business combinations   (34,300 )   5,822     (68,428 )   (4,565 )
    Income taxes (paid) received   (8,641 )   (8,565 )   (15,957 )   (20,077 )
    Net cash flows from (used in) operating activities   18,829     44,492     63,868     81,868  
             
    Cash flows from (used in) financing activities:        
    Interest paid on lease obligations   (105 )   (205 )   (388 )   (464 )
    Interest paid on bank debt   (5,702 )   (2,823 )   (13,304 )   (6,414 )
    Cash transferred from (to) Parent   345     (2,121 )   (1,645 )   (13,957 )
    Proceeds from issuance of bank debt   15,000     –     155,500     175,000  
    Repayments of bank debt   (17,976 )   (50,244 )   (18,464 )   (50,897 )
    Transaction costs on bank debt   (25 )   –     (1,874 )   (1,771 )
    Payments of lease obligations   (1,560 )   (1,419 )   (4,594 )   (3,784 )
    Issuance of Preferred Shares to Parent   –     –     –     181,484  
    Dividends paid   –     (12 )   –     (24 )
    Net cash flows from (used in) in financing activities   (10,023 )   (56,823 )   115,231     279,173  
             
    Cash flows from (used in) investing activities:        
    Acquisition of businesses   –     –     (144,325 )   (314,760 )
    Cash obtained with acquired businesses   –     –     –     33,965  
    Post-acquisition settlement receipts (payments), net   5,685     (264 )   4,706     (2,933 )
    Property and equipment purchased   (1,058 )   (408 )   (1,689 )   (829 )
    Other investing activities   (720 )   72     (984 )   (584 )
    Net cash flows from (used in) investing activities   3,907     (600 )   (142,292 )   (285,142 )
             
             
    Effect of foreign currency on cash and cash equivalents   72     (1,827 )   (2,959 )   (1,839 )
             
    Increase (decrease) in cash   12,785     (14,758 )   33,848     74,060  
             
    Cash, beginning of period   167,572     155,903     146,509     67,085  
             
    Cash, end of period $ 180,357   $ 141,145   $ 180,357   $ 141,145  

    The MIL Network –

  • MIL-OSI: Partners Value Investments L.P. Announces Changes to Internal Group Capital Structure

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Nov. 01, 2024 (GLOBE NEWSWIRE) — Partners Value Investments L.P. (TSXV: PVF.UN, PVF.PR.U) (the “Partnership”), Partners Value Investments Inc. (TSXV: PVF.WT, PVF.PR.V) (“PVII”) and Partners Value Split Corp. (TSX: PVS.PR.G, PVS.PR.H, PVS.PR.I, PVS.PR.J, PVS.PR.K, PVS.PR.L) (“PV Split” and together with the Partnership and PVII, the “PVI Group”) together announce the completion of a share capital reorganization involving a change in how the Partnership owns its interest in PVII and how PVII owns its interest in PV Split.

    Pursuant to the reorganization, among other things, PVII amended its articles to: (a) redesignate the voting common shares held by the Partnership (“Common Shares”) as Class A restricted voting shares, which have substantially the same terms as the Common Shares but are entitled to elect 50% of the directors of PVII; and (b) create Class B restricted voting shares (“Class B Shares”), which are not entitled to dividends, are redeemable for a nominal amount and are entitled to elect 50% of the directors of PVII. A new trust, Partners Value Holding Trust, subscribed for Class B Shares and is the sole owner of PVII shares of that class. As a result, the Partnership no longer controls PVII, but has retained 100% of its economic interest in PVII.

    A similar change has been made to the articles of PV Split. As a result of the transaction, PVII now owns 100% of the Class A restricted shares of PV Split, which have substantially the same terms as the voting shares of PV Split but are entitled to elect 50% of the directors of PV Split and a new trust, Partners Value Split Holding Trust, holds 100% of the new Class B restricted voting shares of PV Split, which are not entitled to dividends, are redeemable for a nominal amount and are entitled to elect 50% of the directors of PV Split. As a result, PVII no longer controls PV Split, but has retained 100% of its economic interest in PV Split.

    After these changes, which have no impact on the publicly-traded units of the Partnership, it is expected that PVII and PV Split will both continue to be considered mutual fund corporations for tax purposes under current law and following the implementation of proposed amendments to the Income Tax Act (Canada) relating to mutual fund corporations.

    For additional information, please contact Investor Relations at ir@pvii.ca or 416-643-7621.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    Forward-Looking Statements

    Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “intends”, “targets”, “projects”, “forecasts”, “seeks”, “likely” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. Forward-looking statements in this news release include statements relating to and regarding the qualification of PVII and PV Split as mutual fund corporations and the economic impact of the proposed transaction on the PVI Group. Forward-looking statements are provided for the purpose of presenting information about current expectations and plans of management of the PVI Group relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes.

    Although management believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the PVI Group, which may cause the actual results, performance or achievement the PVI Group to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

    Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements and information include, but are not limited to: changes to the qualification of PVII or PV Split as “mutual fund corporations” under the Income Tax Act (Canada); changes in in government regulation and legislation; changes in tax laws; the impact or unanticipated impact of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest and foreign exchanges rates; operational and reputational risks; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts and the outbreak of disease including epidemics and pandemics; and other risks and factors detailed from time to time in the PVI Group’s documents filed with the securities regulators in Canada.

    The PVI Group cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on the PVI Group’s forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the PVI Group undertakes no obligation to publicly update or revise any forward-looking statements and information, whether written or oral, that may be as a result of new information, future events or otherwise.

    The MIL Network –

  • MIL-OSI USA: Dr. Bucshon Joins Bipartisan Group to Introduce Legislation to Protect Medicare for Physicians and Patients

    Source: United States House of Representatives – Representative Larry Bucshon MD (R-Ind)

    U.S. Representative Larry Bucshon, M.D. (R-IN-08) released the following statement after joining U.S. Representative Greg Murphy, M.D. (R-NC-03) and other bipartisan cosponsors in introducing the Medicare Patient Access and Practice Stabilization Act to support physicians and protect access to care for Medicare beneficiaries earlier this week:

    “All patients deserve timely access to healthcare from quality physicians in their communities,” said Dr. Bucshon. “Inadequate Medicare reimbursement threatens that access. I have long fought to correct the current trend of cutting reimbursement levels year after year, and I am proud to join my bipartisan colleagues to introduce the Medicare Patient Access and Practice Stabilization Act. The current path toward further consolidation, physician burnout, and closure of medical practices must be corrected.”

    “America’s physicians are at a breaking point and access to high-quality, affordable care is at risk for millions of Medicare patients,” said Congressman Greg Murphy, M.D. “When a physician sees a Medicare patient, they do so out of the goodness of their heart, not because it makes financial sense. Medical inflation is much higher and the cost of seeing patients continues to rise. Unfortunately, reimbursements continue to decline, putting immense pressure on doctors to retire, close their practices, forgo seeing new Medicare patients, or seek a less efficient employment position. This bipartisan legislation would stop yet another year of reimbursement cuts, give them a slight inflationary adjustment, and protect Medicare for physicians and patients alike.”

    “Medicare payments to physicians are just not keeping pace with our economic realities and the cost of care,” said Congressman Jimmy Panetta. “Our bipartisan legislation would not only prevent harmful cuts but also would adjust provider reimbursements for inflation.  Such a law would expand seniors’ access to quality healthcare by helping medical providers continue their care for Medicare beneficiaries.”

    “Access to quality healthcare is a something every senior deserves, but declining Medicare reimbursement is putting that access at risk,” said Congresswoman Mariannette Miller-Meeks. “The bipartisan Medicare Patient Access and Practice Stabilization Act is crucial to reversing the damaging trend of cuts that threaten our healthcare providers, especially in underserved communities. We must act now to prevent further burnout and consolidation in our system, ensuring that every Medicare beneficiary receives the care they need and deserve.”

    “Having an outdated Medicare reimbursement rate for physicians makes it harder for healthcare professionals to provide high-quality care, putting patients at risk,” said Congressman Ami Bera, M.D. “Physicians, unlike the rest of the players in health care, have never received an inflationary update and consistently received cuts. This bill ensures a more stable Medicare payment system, allowing providers to focus on delivering care rather than worrying about losing their practice. With this bipartisan effort, we are working toward a system that supports both patients and doctors.”

    “Over the past 22 years, adjusting for inflation, physicians have essentially taken a 26% pay cut from Medicare,” said Congresswoman Kim Schrier, M.D. “Their reimbursement has been flat or declining, while overhead costs have increased by about 47%: rent, labor, equipment, and insurance. I cannot think of another profession whose compensation has dropped by 26% over 2 decades. Physicians have been holding their breath, year after year, hoping that Congress will act to avert these devastating decreases in reimbursement. Without adequate reimbursement, solo and small practice physicians—most often in rural or underserved areas—are already closing their doors.  It’s up to Congress to ensure that physicians are fairly compensated and can continue to practice, so that all Medicare patients have access to high-quality, affordable care, and I am proud to co-sponsor legislation that will achieve just that.”

    “As a physician, I recognize that year after year cuts to Medicare reimbursement jeopardizes access to care for our nation’s seniors,” said Congressman John Joyce, M.D. “We must work in Congress to create a more sustainable long-term solution to ensure that Medicare patients continue to receive the high-quality affordable care that they deserve. While we continue this important work, I am proud to co-lead the Medicare Patient Access and Practice Stabilization Act, in order to protect access for Medicare beneficiaries and support Medicare physicians in the face of these proposed cuts.”

    “As an emergency medicine physician, I know how important it is for families and individuals I serve to have access to the necessary health care services they rely on,” said Congressman Raul Ruiz M.D. “I am deeply concerned about the impact the outdated Medicare reimbursement rate has on health care access for my constituents. That is why I am co-leading the ‘Medicare Patient Access and Practice Stabilization Act’ that will move us away from a system where every year seniors’ access to essential care is threatened due to potential cuts.”

    Background

    In July 2024, the Centers for Medicare & Medicaid Services (CMS) proposed a rule that would decrease Medicare reimbursement for physician services by 2.8% beginning on January 1, 2025.  Compounded with CMS’ own estimates of a projected 3.6% increase in practice cost expenses for next year, physicians will be faced with an 6.4% cut unless Congress acts.

    According to the American Medical Association, when adjusted for inflation, Medicare reimbursement for physician services has declined 29% from 2001 to 2024. 

    Medicare reimbursement cuts for physicians have significant ripple effects across our health care system, particularly in rural and underserved areas.  

    The decline in reimbursement rates, while wages and operational costs continue to rise, is forcing many physician practices to consider layoffs, reduced services, or office closure.  At a time when we’re facing a physician shortage and a historic number of doctors are nearing retirement age, these cuts risk accelerating physician burnout and reducing access to care for Medicare patients.

    Supporting Organizations

    Academy of Nutrition and Dietetics, Academy of Orthopaedic Physical Therapy, ADVION (formerly National Association for the Support of Long Term Care), Alliance for Headache Disorders Advocacy, Alliance for Physical Therapy Quality and Innovation, Alliance of Specialty Medicine, Alliance of Wound Care Stakeholders, Ambulatory Surgery Center Association, American Academy of Audiology, American Academy of Dermatology Association, American Academy of Family Physicians, American Academy of Hospice and Palliative Medicine, American Academy of Neurology, American Academy of Ophthalmology, American Academy of Oral and Maxillofacial Pathology, American Academy of Otolaryngology–Head and Neck Surgery, American Academy of Pain Medicine, American Academy of Physical Medicine and Rehabilitation, American Academy of Sleep Medicine, American Association for the Study of Liver Diseases, American Association of Child and Adolescent Psychiatry, American Association of Hip and Knee Surgeons, American Association of Neurological Surgeons, American Association of Nurse Anesthesiology, American Association of Oral and Maxillofacial Surgeons, American Association of Orthopaedic Surgeons, American Chiropractic Association, American Clinical Neurophysiology Society, American College of Allergy, Asthma and Immunology, American College of Cardiology, American College of Chest Physicians, American College of Emergency Physicians, American College of Gastroenterology, American College of Mohs Surgery, American College of Obstetricians and Gynecologists, American College of Osteopathic Family Physicians, American College of Osteopathic Internists, American College of Physicians, American College of Radiation Oncology, American College of Radiology, American College of Rheumatology, American College of Surgeons, American Gastroenterological Association, American Geriatrics Society, American Glaucoma Society, American Health Care Association, American Medical Association, American Medical Group Association, American Medical Rehabilitation Providers Association, American Medical Women’s Association, American Occupational Therapy Association, American Optometric Association, American Osteopathic Association, American Physical Therapy Association, American Physical Therapy Association – Private Practice Section, American Podiatric Medical Association, American Psychiatric Association, American Psychological Association Services, American Society for Clinical Pathology, American Society for Dermatologic Surgery Association, American Society for Gastrointestinal Endoscopy, American Society for Radiation Oncology, American Society of Breast Surgeons, American Society of Cataract and Refractive Surgery, American Society of Colon & Rectal Surgeons, American Society of Dermatopathology, American Society of Diagnostic and Interventional Nephrology, American Society of Echocardiography, American Society of Hand Therapists, American Society of Nuclear Cardiology, American Society of Pediatric Nephrology, American Society of Plastic Surgeons, American Society of Retina Specialists, American Society of Transplant Surgeons, American Speech-Language-Hearing Association, American Urogynecologic Society, American Urological Association, Association for Clinical Oncology , Association of American Medical Colleges, Association of Clinicians for the Underserved, Association of Diabetes Care & Education Specialists, Association of Women in Rheumatology, Brain Injury Association of America, California Medical Association, CardioVascular Coalition, Clinical Social Work Association, Coalition of State Rheumatology Organizations, College of American Pathologists, Community Oncology Alliance (COA), Congress of Neurological Surgeons, Dialysis Vascular Access Coalition, Digestive Health Physicians Association, Digestive Health Physicians Association, Emergency Department Practice Management Association, Endocrine Society, Federation of American Hospitals, Free2care, Healthcare Business Management Association, Heart Failure Society of America, Heart Rhythm Society, Indiana Associations Pathologists, Infectious Diseases Society of America, Infusion Providers Alliance, LUGPA, Massachusetts Medical Society, Medical Group Management Association, National Association of ACOs, National Association of Rehabilitation Providers and Agencies, National Association of Spine Specialists, National Infusion Center Association, National Rural Health Association, North Carolina Rheumatology Association, Office-Based Facility Organization, Outpatient Endovascular and Interventional Society, Pediatrix Medical Group, Inc., Physician-Led Healthcare for America, Physicians Advocacy Institute, Post-Acute and Long-Term Care Medical Association, Practicing Physicians of America, Renal Physicians Association, Society for Cardiovascular Angiography and Interventions, Society for Vascular Surgery, Society of American Gastrointestinal and Endoscopic Surgeons, Society of General Internal Medicine, Society of Gynecologic Oncology, Society of Hospital Medicine, Society of Interventional Radiology, Society of Thoracic Surgeons, Texas Medical Association, and the US Oncology Network.

    View the legislation here.

    Congressman Larry Bucshon, M.D. represents Indiana’s 8th Congressional District in the United States House of Representatives and is a senior member of the House Energy and Commerce Committee, serving as Vice Chair of the Health Subcommittee.

    ###

     

    MIL OSI USA News –

  • MIL-OSI USA: Statement by Acting Secretary of Labor Julie Su on October jobs report

    Source: US Department of Labor

    WASHINGTON – Acting Secretary of Labor Julie Su issued the following statement on the October 2024 Employment Situation report: 

    “Today, the Bureau of Labor Statistics reported that the American economy added 12,000 jobs in October, a month marked by significant impacts from hurricanes and strike activity. Despite these temporary disruptions, our economy continues to be strong. President Biden is the first president since data has been collected who has seen job growth every single month of their presidency. The unemployment rate held steady at 4.1 percent, labor force participation remains high, and inflation continues to decrease. This jobs report reflects an atypical month rather than a shift in the broader economic outlook. 

    “Strike activity, specifically, reduced employment growth by 41,000, temporarily impacting payrolls in industries like transportation equipment manufacturing. Yet, these events do not signal economic weakness. Instead, striking workers reflect a robust economy where workers have the power to demand better wages and working conditions. 

    “After accounting for revisions, our three-month average for employment gains through September stands at 148,000. This stability, coupled with strong 0.4 percent monthly wage growth in October, a three-month annual wage growth pace of 4.5 percent, and a 2.8 percent annual GDP growth rate in the third quarter, demonstrates the resilience of the American economy. Inflation continues to decrease, while consumer spending grew at an impressive 3.7 percent rate in the third quarter, underscoring a sustainable path forward. 

    “The Biden-Harris administration remains steadfast in its commitment to building a strong economy that benefits all working Americans. Our outlook remains strong, and we are dedicated to ensuring that every worker has the opportunity to thrive in a stable and growing economy.” 

    MIL OSI USA News –

  • MIL-OSI USA: Governor Newsom reaches agreement with La Habra Heights on violations of state housing law

    Source: US State of California 2

    Nov 1, 2024

    What you need to know: Governor Newsom and Attorney General Rob Bonta have reached a settlement with La Habra Heights to bring the city into compliance with state housing law.

    SACRAMENTO — Governor Gavin Newsom and Attorney General Rob Bonta today announced the state has entered into a stipulated judgment with the City of La Habra Heights, putting the city on an expedited timeline to submit a compliant housing element to the Department of Housing and Community Development. The new housing plan must create 244 housing units, including at least 164 that are affordable to low or very-low-income households.

    “No more excuses — every community has a responsibility to create housing and to help reduce homelessness. I am pleased that La Habra Heights has come to the table and agreed to meet their housing goals for a community that desperately needs more affordable homes.”

    Governor Gavin Newsom

    “The City of La Habra Heights has done the right thing. Instead of continuing to skirt California’s housing laws, it will finally be complying with its legal obligation to plan for 244 housing units,” said Attorney General Rob Bonta. “My office will not let up: no matter the size of the city or county, we will not rest until every local government in California plans for the future and does its part to tackle our housing crisis.” 

    The City of La Habra Heights is designated as a high opportunity jurisdiction by the California Tax Credit Allocation Committee and California Department of Housing and Community Development (HCD) Opportunity Area 2024 map, indicating access to good schools, less pollution, and jobs—all factors that impact long-term success for families with children. However, the city currently has only single-family homes, with no multifamily housing and zero affordable units.

    The deadline for the City of La Habra Heights to adopt a compliant housing element was October 2021. 

    After repeated attempts to assist the city to come into compliance, HCD’s Housing Accountability Unit — launched by Governor Newsom in 2021 — issued a Notice of Violation on March 19, 2024. HCD then worked with the Attorney General’s Office to reach today’s agreement with La Habra Heights.

    Despite the agreement, until La Habra Heights fulfills its obligations under the agreement, the city remains subject to the “Builder’s Remedy” and cannot refuse to permit certain affordable housing projects. The city also remains ineligible to receive key state housing and homelessness funds.

    HCD, through the Attorney General’s Office, has now entered into five agreements over housing element compliance. The previous four were San Bernardino, Coronado, Malibu, and Fullerton.

    “This latest agreement is a key example of why it is so important that every city, big and small, is held accountable for doing its fair share to address the statewide housing need,” said HCD Director Gustavo Velasquez. “When La Habra Heights adopts a compliant housing element, it will — for the first time ever — make land available for multifamily and affordable housing, creating a path to opportunity for more families in this high-resource community.”

    All state and local public agencies must take deliberate action to Affirmatively Further Fair Housing — combating disparities resulting from past patterns of segregation. Increasing supply of multifamily housing expands access to fair housing for lower-income and historically disadvantaged groups, in turn fostering more inclusive communities. 

    More housing. More accountability.

    Since taking office, Governor Newsom has invested $40 billion in housing production. The state has also invested over $27 billion to help communities address homelessness.

    Governor Newsom championed the creation of the Housing Accountability Unit at HCD to ensure cities and counties fulfill their legal responsibilities to plan and permit their fair share of housing. This focus on accountability has, in part, led to a 15-year high in housing starts in California. Since its establishment, the Housing Accountability Unit has supported the development of 7,513 housing units, including 2,765 affordable units, through enforcement actions and by working with local jurisdictions to ensure compliance with housing law. 

    Addressing the homelessness crisis 

    Today’s action also follows the Governor’s recent executive order urging local governments to quickly address encampments and provide individuals experiencing homelessness with the care, compassion, and support they need. Earlier this month, the Governor announced  $130.7 million in new funding for local communities to help people experiencing homelessness in dangerous encampments, paired with robust accountability measures.

    California recently announced 37 new grant awards totaling more than $827 million to help more than 100 local communities and organizations create long-term solutions to address homelessness, with strong accountability and transparency measures and clear expectations to ensure that local strategies to address homelessness are measurable and effective. 

    Recent news

    Nov 1, 2024

    News What you need to know: California will be home to a first-of-its-kind research & development facility made possible by the Biden-Harris Administration’s CHIPS & Science Act. SACRAMENTO – Today, Governor Newsom celebrated California’s selection by the U.S….

    Oct 31, 2024

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Vickie Sakamoto, of Sacramento, has been appointed Assistant State Fire Marshal at the California Department of Forestry and Fire Protection (CAL FIRE.) Sakamoto has been Assistant…

    Oct 31, 2024

    News In case you missed it, new analysis from the Public Policy Institute of California (PPIC) found that “violent and property crime rates are less than half of what they were, and property crime is at pre-pandemic levels,” in addition to “savings from less…

    MIL OSI USA News –