NewzIntel.com

Category: Economy

  • MIL-OSI USA: SBA Offers Relief to Idaho Small Businesses and Private Nonprofits Affected by the Highway 95 Landslide and Closure

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – TheU.S. Small Business Administration (SBA) announced low interest federal disaster loans are now available to small businesses and private nonprofit (PNP) organizations in Idaho who sustained economic losses caused by the Highway 95 landslide and closure beginning on March 16. The SBA issued a disaster declaration in response to a request received from Gov. Brad Little on April 18.

    The disaster declaration covers the Idaho counties of Ada, Adams, Boise, Canyon, Custer, Gem, Idaho, Lemhi, Payette, Valley and Washington as well as the Oregon counties of Baker and Wallowa.

    Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and PNPs with financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.

    EIDLs are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.

    The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.

    Beginning Wednesday, April 23, SBA customer service representatives will be on hand at a Virtual Business Recovery Center to answer questions about SBA’s disaster loan program, explain the application process and help individuals complete their application.

    Virtual Business Recovery Center
    Mondays – Fridays
    8 a.m. – 4:30 p.m. Pacific Time
    FOCWAssistance@sba.gov
    (916) 735-1531
    Opens at 8 a.m., Wednesday, April 23

    The SBA encourages applicants to submit their loan applications promptly. Applications will be prioritized in the order they are received, and the SBA remains committed to processing them as efficiently as possible.

    To apply online, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659‑2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    The deadline to return economic injury applications to the SBA is Jan. 21, 2026.

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    MIL OSI USA News –

  • MIL-OSI Security: San Fernando Valley Man Sentenced to More Than 5 Years in Federal Prison for Fraudulently Obtaining at Least $1.8 Million Through Mail and ID Theft

    Source: Office of United States Attorneys

    LOS ANGELES – A San Fernando Valley man was sentenced today to 61 months in federal prison for fraudulently obtaining at least $1.8 million by stealing Beverly Hills residents’ identities – often by stealing mail and packages from their homes – then using that information to open fraudulent bank accounts to which he unlawfully transferred money from the bank accounts of the victims, of which included elderly people.      

    Oren David Sela, 36, of North Hills, was sentenced by United States District Judge Dolly M. Gee, who also ordered him to pay $1,818,369 in restitution.

    Sela pleaded guilty in October 2024 to one count of bank fraud and one count of aggravated identity theft. Sela has been in federal custody since October 2023.

    From November 2021 to October 2023, Sela stole mail to obtain debit cards, bank account numbers, Social Security numbers, and other personal identifiable information (PII) belonging to victims, especially victims living in and around Beverly Hills. He then used the victims’ PII to gain access to their online bank and financial accounts, at times SIM-swapping – a type of identity theft where a fraudster illegally obtains a victim’s phone number by transferring it to a new Subscriber Identity Module (SIM) card – or porting the victims’ phone numbers to gain temporary control over those numbers to defeat two-factor authentication security protocols in place on their accounts.

    Sela then opened additional fraudulent accounts in the victims’ names to transfer funds into intermediary accounts he controlled and withdrew money from those accounts or used them to make purchases or transfers. He also caused debit or credit cards linked to victim accounts to be issued to him, so he could spend directly from those cards.

    Sela engaged in hundreds of fraudulent withdrawals and transfers from dozens of victim accounts, attempting to steal at least approximately $2,590,836, and stealing at least approximately $1,818,369.

    He defrauded numerous banks and at least 62 individual victims, including various elderly victims. Sela often used victim funds to purchase expensive goods for himself, including, for example, a nearly $17,000 watch.

    In 2022, Sela was arrested in Beverly Hills and found with nearly $25,000 in cash, various expensive items of jewelry, and numerous fraudulent debit and credit cards belonging to four elderly victims.           

    After Sela’s 2022 arrest, he was released, and his conduct persisted. During two subsequent searches of Sela’s properties in 2022 and 2023, law enforcement identified more than $70,000 in cash, many items of expensive jewelry and similar such receipts, stolen mail, extensive PII, means of identification including driver’s licenses, and banking information including debit cards, credit cards, and checks, belonging to dozens of victims. 

    The United States Secret Service and the Beverly Hills Police Department investigated this matter.

    Assistant United States Attorneys Aaron B. Frumkin of the Cyber and Intellectual Property Crimes Section and Jena A. MacCabe of the Violent and Organized Crime Section prosecuted this case.

    MIL Security OSI –

  • MIL-OSI: HR Ratings Expands U.S. Operations with Strategic Growth Plan and Senior Leadership Appointment

    Source: GlobeNewswire (MIL-OSI)

    MIAMI, April 22, 2025 (GLOBE NEWSWIRE) — HR Ratings, leading credit rating agency with nearly two decades of experience and more than 14,000 ratings issued worldwide, announces the expansion of its U.S. operations, reinforcing its long-term commitment to the U.S. market. As part of this effort, HR Ratings welcomes Gregory Root as Business Development Executive Director, adding depth to its leadership team and accelerating its growth in key sectors.

    Gregory Root has nearly 40 years of experience in credit ratings, investment banking, and capital markets. He has held senior leadership roles at Kroll Bond Ratings, DBRS, and Keefe, Bruyette & Woods. As President of Thomson BankWatch, he led the agency’s growth into the world’s largest bank rating firm at the time, overseeing teams across 60 countries.

    “Greg brings a deep understanding of the U.S. market and will play a critical role in supporting HR Ratings´ growth and establishment in this market.” said Veronica Cordero, Head of Business Development of HR Ratings.

    HR Ratings is registered as a Nationally Recognized Statistical Rating Organization (NRSRO) by the U.S. Securities and Exchange Commission (SEC) for corporates, public finance, and financial institutions, certified by the European Securities and Markets Authority (ESMA), and the UK’s Financial Conduct Authority (FCA). HR Ratings is also approved by the National Association of Insurance Commissioners (NAIC) as credit rating providers (CRP). In addition, the rating agency is certified by the Climate Bonds Initiative (CBI) as approved verifiers for green bonds.

    With a local team based in Coral Gables, Florida, HR Ratings offers a full range of credit evaluation services. The agency has already issued over 2,300 credit ratings historically in the U.S. and evaluated more than 300 U.S.-based entities, serving a market that increasingly seeks agile, transparent, and rigorous credit analysis.

    “This marks an important step forward as we scale our presence in the U.S.,” said Alberto Ramos, Chairman of the Board of HR Ratings. “Our model is built on transparency, accessibility, highest quality service, and analytical rigor—qualities that matter to U.S. issuers and investors looking for real alternatives in a concentrated ratings market.”

    About HR Ratings

    HR Ratings, LLC (HR Ratings), is a Credit Rating Agency registered by the Securities and Exchange Commission (SEC) as a Nationally Recognized Statistical Rating Organization (NRSRO) for the assets of public finance, corporates and financial institutions as described in section 3 (a) (62) (A) and (B) subsection (i), (iii) and (v) of the US Securities Exchange Act of 1934.

    The following information can be found on our website at www.hrratings.com: (i) The internal procedures for the monitoring and surveillance of our ratings and the periodicity with which they are formally updated, (ii) the criteria used by HR Ratings for the withdrawal or suspension of the maintenance of a rating, (iii) the procedure and process of voting on our Analysis Committee, and (iv) the rating scales and their definitions.

    The ratings and/or opinions of HR Ratings are opinions regarding the credit quality and/or the asset management capacity, or relative to the performance of the tasks aimed at the fulfillment of the corporate purpose, by issuing companies and other entities or sectors, and are based on exclusively in the characteristics of the entity, issue and/or operation, regardless of any business activity between HR Ratings and the entity or issuer. The ratings and/or opinions granted are issued on behalf of HR Ratings and not of its management or technical personnel and do not constitute recommendations to buy, sell or maintain any instrument, or to carry out any type of business, investment or operation, and may be subject to updates at any time, in accordance with the rating methodologies of HR Ratings.

    HR Ratings bases its ratings and/or opinions on information obtained from sources that are believed to be accurate and reliable. HR Ratings, however, does not validate, guarantee or certify the accuracy, correctness or completeness of any information and is not responsible for any errors or omissions or for results obtained from the use of such information. Most issuers of debt securities rated by HR Ratings have paid a fee for the credit rating based on the amount and type of debt issued. The degree of creditworthiness of an issue or issuer, opinions regarding asset manager quality or ratings related to an entity’s performance of its business purpose are subject to change, which can produce a rating upgrade or downgrade, without implying any responsibility for HR Ratings. The ratings issued by HR Ratings are assigned in an ethical manner, in accordance with healthy market practices and in compliance with applicable regulations found on the www.hrratings.com rating agency webpage. HR Ratings’ Code of Conduct, rating methodologies, rating criteria and current ratings can also be found on the website.

    Ratings and/or opinions assigned by HR Ratings are based on an analysis of the creditworthiness of an entity, issue or issuer, and do not necessarily imply a statistical likelihood of default, HR Ratings defines as the inability or unwillingness to satisfy the contractually stipulated payment terms of an obligation, such that creditors and/or bondholders are forced to take action in order to recover their investment or to restructure the debt due to a situation of stress faced by the debtor. Without disregard to the afore mentioned point, in order to validate our ratings, our methodologies consider stress scenarios as a complement to the analysis derived from a base case scenario. The fees HR Ratings receives from issuers generally range from US$1,000 to $1,000,000 (one million dollars, legal tender in the United States of America) (or the equivalent in another currency) per offering. In some cases, HR Ratings will rate all or some of a particular issuer’s offerings for an annual fee. Annual fees are estimated to vary between $5,000 and US$2,000,000 (five thousand to two million dollars, legal tender in the United States of America) (or the equivalent in another currency).

    The MIL Network –

  • MIL-OSI USA: April 22nd, 2025 Heinrich, Daines, Neguse, Leger Fernández Introduce Bipartisan Legislation to Complete the Continental Divide National Scenic Trail

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich

    WASHINGTON – U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the Senate Energy and Natural Resources Committee, U.S. Senator Steve Daines (R-Mont.), and U.S. Representatives Joe Neguse (D-Colo.) and Teresa Leger Fernández (D-N.M.) introduced their bipartisan Continental Divide National Scenic Trail Completion Act, legislation that directs the Secretaries of the U.S. Department of Agriculture (USDA) and U.S. Department of Interior to prioritize the completion of the Continental Divide National Scenic Trail (CDT).

    Designated by Congress as part of the National Trail System in 1978, the Continental Divide National Scenic Trail stretches more than 3,000 miles and passes through New Mexico, Colorado, Wyoming, Montana, and Idaho. The trail follows the Continental Divide and transverses some of the nation’s most treasured natural, historic, and cultural resources.

    Since the Continental Divide National Scenic Trail’s creation, stakeholders have worked tirelessly to complete the trail. Today, more than 160 miles of the trail require diversions onto roadways and highways, and 600 miles of the trail require relocation.Closing these gaps and relocating these segments will help better maintain the trail’s purpose while ensuring a safer and more enjoyable journey for hikers.

    “The existing Continental Divide National Scenic Trail serves as a major economic driver for communities along the trail like Grants and Silver City, New Mexico. The trail also provides recreational access to some of our most incredible natural, historic, and cultural landscapes,” said Heinrich, Ranking Member of the Senate Energy and Natural Resources Committee. “Our Continental Divide National Scenic Trail Completion Act will finally finish incomplete portions of the trail and make it easier and safer for locals and through-hikers to access. As a National Scenic Trail, the Continental Divide Trail deserves no less.”

    “The Continental Divide Trail provides an unmatched outdoor experience for Montanans and visitors alike,” said Daines. “My bipartisan bill ensures the trail will continue to provide public access and a continuous route will finally be completed.”

    “It’s been nearly half a century since Congress formally established the Continental Divide Trail, a scenic route that spans the Rocky Mountains and crosses five states. Since then, the trail has provided the American people with world-class recreational opportunities and has served as an economic driver for the rural towns and cities along its route. In championing the Continental Divide National Scenic Trail Completion Act, we are calling on the federal government to fulfill its promise to complete the trail’s full 3,100-mile length, enhancing the benefits this iconic trail brings to both our people and our public lands,” said Neguse, Ranking Member of the House Subcommittee on Federal Lands.

    “A divided and incomplete Continental Divide Trail is calling out for congressional action to finish the job. A completed trail highlights and honors the unique cultures and environments along its route in New Mexico.” said Rep. Leger Fernández. “This bill will help grow our outdoor recreation economy and support the rural communities along the CDT. Importantly, it also makes sure we respect local landowners, Tribes, Land Grants-Mercedes, Acequias, and other land users. I look forward to co-leading the bill again this Congress with Congressman Neguse and my colleagues.”

    Specifically, the Continental Divide National Scenic Trail Completion Act: 

    • Directs the USDA Secretary and Interior Secretary to establish a Trail Completion Team comprised of the U.S. Forest Service (USFS), the Bureau of Land Management (BLM) and the Continental Divide National Scenic Trail Administrator. This team will be responsible for conducting optimal location reviews and to assist in developing a comprehensive development plan for the Trail.
    • Recognizes the value of cooperation between federal land managers, states, Tribes, towns, Native communities, and others. The Continental Divide Trail Completion Act directs USFS and BLM to maintain close partnerships with stakeholders in developing, maintaining, and managing the trail.
    • Requires the completion of a comprehensive development plan for the Trail, to include areas of Trail where there are gaps, opportunities for acquiring land to complete the trail, and site-specific Trail development plans.
    • Ensures that land purchased to complete the trail may only be acquired from willing sellers.

    Last year, the Continental Divide National Scenic Trail Completion Act passed through the Senate Energy and Natural Resources Committee with unanimous consent. The legislation has the backing of the Continental Divide Trail Coalition and a number of organizations and businesses.

    “Completing the CDT is not just about closing the gaps — it’s about all the benefits that result from ensuring connections to one of the country’s most important landscapes exist for future generations,” said Teresa Martinez, Executive Director of the Continental Divide Trail Coalition.

    Text of the Continental Divide National Scenic Trail Completion Act can be found here.

    Timeline of Actions on Continental Divide National Scenic Trail in 118th Congress:

    MIL OSI USA News –

  • MIL-OSI New Zealand: Employment – New Zealand workers embrace Gen AI and see AI skills as imperative to career success

    Source: Robert Half

    • 91% of Kiwi workers are using generative AI to assist them in their day-to-day tasks
    • 93% of workers are transparent with their manager/employer about using generative AI in their day-to-day work
    • 87% of workers believe developing generative AI skills is necessary for career success.
    Auckland, 23 April 2025 – Workers are openly using generative AI to complete day-to-day tasks and recognise that learning and enhancing AI skills related to their role is necessary for future career success. New independent research by specialised recruiter Robert Half finds artificial intelligence tools such as ChatGPT and Gemini are now a workplace staple, used (almost) every day by half (56%) of Kiwi workers.

    Workers embrace the benefits of using AI

    Most (91%) workers are using generative AI tools to some degree in their role, including almost half (56%) who do so regularly:

    • 26% of workers use it every day  
    • 30% of workers often, or almost every day, use it  
    • 22% of workers sometimes use it  
    • 13% of workers don’t often use it but do access them on occasion  
    • 9% of workers never use it to do their jobs.

    “Within a remarkably short timeframe, generative AI has become a daily tool for workers, moving from relative unknown to widespread adoption,” says Ronil Singh, Director at Robert Half. “Even with ongoing questions about AI’s future, a growing understanding of the benefits offered by Gen AI tools, such as ChatGPT and Gemini, is driving their adoption in daily work routines.

    “Progressive employers are championing Gen AI adoption, understanding its power to streamline operations and foster innovation. They see the value Gen AI can bring to everyday tasks, enabling workers to dedicate more time on more complicated, strategic or creative initiatives.”

    Most workers do not feel the need to hide their use of generative AI tools, as 93% of workers are transparent about their usage with their manager. The remaining 7% of employees are more covert about its use and are not transparent with their employer.

    “Widespread transparency in Gen AI usage reflects a rising confidence in this technology. While some are still defining optimal applications, most employers see Gen AI as a benefit, not a detriment,” says Singh.  

    Learning to use AI is essential to get ahead

    Going beyond generative AI and into broader AI applications in the workplace, employees agree that learning how to use AI tools is necessary for future success.

    When workers were asked how necessary they feel it is to learn and enhance AI skills related to their role, 87% of them agree. At 94%, tech/IT workers were the most likely to agree, followed by 80% of finance and accounting staff.

    “With workers across generations acknowledging the critical role of AI skills in career advancement, continuous learning and development becomes a necessity. Companies that prioritise AI adoption and invest in comprehensive training will gain a significant competitive edge in talent acquisition and retention, solidifying their future success,” concluded Singh.

    About the research

    The study is developed by Robert Half and was conducted online in November 2024 by an independent research company among 500 full-time office workers in finance, accounting, and IT and technology. Respondents are drawn from a sample of SMEs as well as large private, publicly-listed and public sector organisations across New Zealand. This survey is part of the international workplace survey, a questionnaire about job trends, talent management and trends in the workplace.    

    About Robert Half

    Robert Half is the global, specialised talent solutions provider that helps employers find their next great hire and jobseekers uncover their next opportunity. Robert Half offers both contract and permanent placement services, and is the parent company of Protiviti, a global consulting firm.  Robert Half New Zealand has an office in Auckland. More information on roberthalf.com/nz.

    MIL OSI New Zealand News –

  • MIL-OSI: Pulse Seismic Inc. Reports Strong Q1 2025 Financial Results and Increases Regular Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, April 22, 2025 (GLOBE NEWSWIRE) — Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or the “Company”) is pleased to report its financial and operating results for the three months ended March 31, 2025. The unaudited condensed consolidated interim financial statements, accompanying notes and MD&A are being filed on SEDAR+ (www.sedarplus.ca) and will be available on Pulse’s website at www.pulseseismic.com.

    Today, Pulse’s Board of Directors approved a 17% increase to the regular quarterly dividend, declaring a dividend of $0.0175 per share. This results in an increase to the annual regular dividend from $0.06 per share to $0.07 per share. The total dividend declared will be approximately $889,000 based on Pulse’s 50,794,563 common shares outstanding as of April 22, 2025, to be paid on May 20, 2025, to shareholders of record on May 12, 2025. This dividend is designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse’s dividends are subject to Canadian withholding tax.

    “I am very pleased to report today’s decision by Pulse’s Board of Directors to approve the third annual increase to the Company’s regular dividend since 2023. Having licensed $22.8 million of seismic data for the quarter, our balance sheet has been further strengthened, ending the period with $14.3 million of cash and $14.2 of working capital,” stated Neal Coleman, Pulse’s President and CEO. “As a business with significant fluctuations in annual revenue, having a low-cost structure like ours lends itself to significant increases in EBITDA margins and shareholder free cash flow generation in higher revenue years. Compared to last year, we have already generated 97% of annual revenue,” he continued. “We remain focused on returning capital to shareholders as evidenced by the 17% increase to the regular quarterly dividend, on top of the special dividend of $0.20 per share that was declared in February,” concluded Coleman.

    HIGHLIGHTS FOR THE THREE MONTHS ENDED MARCH 31, 2025

    • A regular dividend of $0.015 per share and a special dividend of $0.20 per share were declared and paid in the first quarter of 2025, totalling $10.9 million.
    • The Company renewed its Normal Course Issuer Bid (NCIB) on February 24, 2025. During the three months ended March 31, 2025, the Company purchased and cancelled 43,300 shares under the NCIB at an average price of $2.43 per share, for total cost of approximately $106,000;
    • Total revenue for the three months ended March 31, 2025, was $22.8 million, compared to $8.8 million for the same period in 2024. Revenue generated in the first quarter of 2025 represents approximately 97% of the total recorded for the full year ended December 31, 2024;
    • Shareholder free cash flow(a) was $15.4 million ($0.30 per share basic and diluted) compared to $5.0 million ($0.10 per share basic and diluted) for the three months ended March 31, 2024; 
    • EBITDA(a) was $20.0 million ($0.39 per share basic and diluted) compared to $6.2 million ($0.12 per share basic and diluted) for the three months ended March 31, 2024; 
    • Net earnings were $13.4 million ($0.26 per share basic and diluted) compared to net earnings of $2.7 million ($0.05 per share basic and diluted) for the three months ended March 31, 2024; and 
    • At March 31, 2025, the Company had a cash balance of $14.3 million as well as $5.0 million of available liquidity on its revolving demand credit facility.
    SELECTED FINANCIAL AND
    OPERATING INFORMATION    		        
             
             
    (Thousands of dollars except per share data,   Three months ended March 31, Year ended,
    numbers of shares and kilometres of seismic data)   2025 2024 December 31,
        (Unaudited) 2024
    Revenue   22,759 8,777 23,379
             
    Amortization of seismic data library   2,225 2,270 9,090
    Net earnings   13,375 2,681 3,391
    Per share basic and diluted   0.26 0.05 0.07
    Cash provided by operating activities   16,615 10,464 14,195
    Per share basic and diluted   0.33 0.20 0.28
    EBITDA (a)   20,048 6,229 15,496
    Per share basic and diluted (a)   0.39 0.12 0.30
    Shareholder free cash flow (a)   15,419 5,038 12,408
    Per share basic and diluted (a)   0.30 0.10 0.24
             
    Capital expenditures        
    Seismic data   – 225 225
    Property and equipment   – – 45
    Total capital expenditures   – 225 270
             
    Dividends        
    Regular dividends declared   763 715 3,018
    Special dividends declared   10,167 – 2,548
    Total dividends declared   10,930 715 5,566
             
    Normal course issuer bid        
    Number of shares purchased and cancelled   43,300 627,300 1,784,000
    Cost of shares purchased and cancelled   106 1,185 3,880
             
    Weighted average shares outstanding        
    Basic and diluted   50,829,404 52,122,006 51,448,985
    Shares outstanding at period-end   50,794,563 51,994,563 50,837,863
             
    Seismic library        
    2D in kilometres   829,207 829,207 829,207
    3D in square kilometres   65,310 65,310 65,310
             
    FINANCIAL POSITION
    AND RATIO    		        
        March 31, March 31, December 31,
    (Thousands of dollars except ratio)   2025 2024 2024
    Working capital   14,201 10,579 9,222
    Working capital ratio   3.7:1 3.8:1 5.1:1
    Cash and cash equivalents   14,305 13,765 8,722
    Total assets   27,412 31,122 21,516
    Trailing 12 -month (TTM) EBITDA(b)   29,315 30,045 15,496
    Shareholders’ equity   20,533 26,543 18,295
             

    (a)The Company’s continuous disclosure documents provide discussion and analysis of “EBITDA”, “EBITDA per share”, “shareholder free cash flow” and “shareholder free cash flow per share”. These financial measures do not have standard definitions prescribed by IFRS and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because management, investors, analysts and others use them as measures of the Company’s financial performance. The Company’s definition of EBITDA is cash available for interest payments, cash taxes, repayment of debt, purchase of its shares, discretionary capital expenditures and the payment of dividends, and is calculated as earnings (loss) from operations before interest, taxes, depreciation and amortization. The Company believes EBITDA assists investors in comparing Pulse’s results on a consistent basis without regard to non-cash items, such as depreciation and amortization, which can vary significantly depending on accounting methods or non-operating factors such as historical cost. EBITDA per share is defined as EBITDA divided by the weighted average number of shares outstanding for the period. Shareholder free cash flow further refines the calculation of capital available to invest in growing the Company’s 2D and 3D seismic data library, to repay debt, to purchase its common shares and to pay dividends by deducting non-discretionary expenditures from EBITDA. Non-discretionary expenditures are defined as non-cash expenses, debt financing costs (net of deferred financing expenses amortized in the current period), net restructuring costs and current tax provisions. Shareholder free cash flow per share is defined as shareholder free cash flow divided by the weighted average number of shares outstanding for the period.
    These non-GAAP financial measures are defined, calculated and reconciled to the nearest GAAP financial measures in the Management’s Discussion and Analysis.
    (b) TTM EBITDA is defined as the sum of EBITDA generated over the previous 12 months and is used to provide a comparable annualized measure.
    These non-GAAP financial measures are defined, calculated and reconciled to the nearest GAAP financial measures in the Management’s Discussion and Analysis.

    OUTLOOK

    Pulse had a very strong first quarter, generating revenue of $22.8 million and ending the quarter with $14.3 million of cash and $14.2 million of working capital. This was one of the top three quarters in the Company’s history, representing 97% of annual 2024 revenue. Pulse’s ability to predict future revenue generation has always been challenging, as significant annual fluctuations are the norm in the seismic data library business. This strong quarterly result has improved our balance sheet and positioned the Company for solid financial performance in 2025.

    Industry trends that we consider relevant include land sales in Western Canada, drilling forecasts for the year, commodity price levels, M and A forecasts and the status of industry infrastructure improvements. Early in 2025, industry projections included high levels of M & A activity for the year and improving commodity prices. It is difficult to predict in the midst of the current market dynamics how this will unfold through the remainder of 2025. Alberta land sales through 2024 and into 2025 were strong, and in British Columbia land sales were resumed in Q3 2024 after a pause of over 3 years. New infrastructure, such as the TMX pipeline expansion, a driver of increased drilling activity, which was completed in 2024 has provided increased export capacity. The Canadian Association of Energy Contractors, in November 2024 forecast an increase to 6,604 wells to be drilled in 2025, an approximate 7% increase over 2024. There has been no update published to this forecast, and drilling activity is reported to be relatively stable. The pending completion of LNG Canada’s liquified natural gas export facility is expected to contribute to the forecast increase in drilling and may lead to an improvement in Canadian natural gas prices.

    Of course, there is a high level of uncertainty on the political and economic fronts. The impacts of the recent change in administration in the United States and the uncertainty around energy tariffs and trade policy, together with Canadian federal government leadership changes and the pending Canadian federal election outcome are contributing to the lack of clarity for the future. It is clear that Canada needs to continue to build pipelines and increase natural gas egress, to support the country’s energy security, as well as to secure new buyers of Canadian energy.

    Pulse, as previously stated, has low visibility regarding future seismic data library sales levels, regardless of industry conditions. The Company remains focused on business practices that have served throughout the full range of conditions. The Company maintains a strong balance sheet and carries no debt. Led by an experienced and capable management team, Pulse operates with a low-cost structure and focuses on maintaining excellent client relations and providing exceptional customer service. Pulse’s strong financial position, high leverage to increased revenue in its EBITDA margin and careful management of its cash resources have resulted in the return of capital to shareholders through regular and special dividends and the repurchase of its shares.

    CORPORATE PROFILE

    Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the largest licensable seismic data library in Canada, currently consisting of approximately 65,310 square kilometres of 3D seismic and 829,207 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin, where most of Canada’s oil and natural gas exploration and development occur.

    For further information, please contact:
    Neal Coleman, President and CEO
    Or
    Pamela Wicks, Vice President Finance and CFO
    Tel.: 403-237-5559
    Toll-free: 1-877-460-5559
    E-mail: info@pulseseismic.com.
    Please visit our website at www.pulseseismic.com

    This document contains information that constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities legislation. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “forecast”, “target”, “project”, “guidance”, “may”, “will”, “should”, “could”, “estimate”, “predict” or similar words suggesting future outcomes or language suggesting an outlook.

    The Outlook section herein contain forward-looking information which includes, but is not limited to, statements regarding:

    >        The outlook of the Company for the year ahead, including future operating costs and expected revenues;

    >       Recent events on the political, economic, regulatory, and legal fronts affecting the industry’s medium- to longer-term prospects, including progression and completion of contemplated infrastructure projects;

    >        The Company’s capital resources and sufficiency thereof to finance future operations, meet its obligations associated with financial liabilities and carry out the necessary capital expenditures through 2025;

    >        Pulse’s capital allocation strategy;

    >        Pulse’s dividend policy;

    >        Oil and natural gas prices and forecast trends;

    >        Oil and natural gas drilling activity and land sales activity;

    >        Oil and natural gas company capital budgets;

    >        Future demand for seismic data;

    >        Future seismic data sales;

    >        Pulse’s business and growth strategy; and

    >        Other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results and performance, as they relate to the Company or to the oil and natural gas industry as a whole.

    By its very nature, forward-looking information involves inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. Pulse does not publish specific financial goals or otherwise provide guidance, due to the inherently poor visibility of seismic revenue. The Company cautions readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking information.

    These factors include, but are not limited to:

    >        Uncertainty of the timing and volume of data sales;

    >        Volatility of oil and natural gas prices;

    >        Risks associated with the oil and natural gas industry in general;

    >        The Company’s ability to access external sources of debt and equity capital;

    >        Credit, liquidity and commodity price risks;

    >        The demand for seismic data;

    >        The pricing of data library licence sales;

    >         Cybersecurity;

    >        Relicensing (change-of-control) fees and partner copy sales;

    >        Environmental, health and safety risks;

    >        Federal and provincial government laws and regulations, including those pertaining to taxation, royalty rates, environmental protection, public health and safety;

    >        Competition;

    >        Dependence on key management, operations and marketing personnel;

    >        The loss of seismic data;

    >        Protection of intellectual property rights;

    >        The introduction of new products; and

    >        Climate change.

    Pulse cautions that the foregoing list of factors that may affect future results is not exhaustive. Additional information on these risks and other factors which could affect the Company’s operations and financial results is included under “Risk Factors” in the Company’s most recent annual information form, and in the Company’s most recent audited annual financial statements, most recent MD&A, management information circular, quarterly reports, material change reports and news releases. Copies of the Company’s public filings are available on SEDAR+ at www.sedarplus.ca.

    When relying on forward-looking information to make decisions with respect to Pulse, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking information contained in this document is provided as of the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, except as required by law. The forward-looking information in this document is provided for the limited purpose of enabling current and potential investors to evaluate an investment in Pulse. Readers are cautioned that such forward-looking information may not be appropriate, and should not be used, for other purposes.

    PDF available: http://ml.globenewswire.com/Resource/Download/a8c573ed-9098-4949-97bc-2c4553e2eae4

    The MIL Network –

  • MIL-OSI Security: Former Lay Leader Pleads Guilty To Conspiracy To Commit Wire Fraud And Mail Fraud For Role In Scheme To Defraud AME Zion Church Congregations In California

    Source: Office of United States Attorneys

    OAKLAND – Sheila Quintana pleaded guilty in federal court today to conspiracy to commit wire fraud and mail fraud in connection with her role in a scheme to defraud congregations of the African Methodist Episcopal Zion Church (AME Zion Church) across California as well as private lenders.

    Quintana, 71, of Vallejo, was indicted along with co-defendant Staccato Powell, 65, of Wake Forest, N.C., by a federal grand jury in January 2022 on one count of conspiracy to commit wire fraud and mail fraud in violation of 18 U.S.C. § 1349 and two counts of wire fraud in violation of 18 U.S.C. § 1343. Powell was additionally charged with one count of mail fraud.

    On April 18, 2025, an information was filed charging Quintana with conspiracy to commit wire fraud and mail fraud in violation of 18 U.S.C. § 371, and re-alleging the three counts against her in the indictment. Quintana waived indictment on the charges in the information. She pleaded guilty this afternoon to the count of conspiracy to commit wire fraud and mail fraud in violation of 18 U.S.C. § 371 and agreed to cooperate with the government.

    According to court documents, Powell and Quintana were officers of the Western Episcopal District, Inc. (WED, Inc.), an entity that Powell formed in 2016 after Powell’s selection as bishop to AME Zion Church’s Western Episcopal District, a geographic division of the church covering several states in the western United States, including California. AME Zion Church is an historically African-American denomination of approximately 1.4 million adherents worldwide.

    Powell was the chief executive officer (CEO) of WED, Inc., and Quintana became the chief financial officer (CFO) in March 2017. In pleading guilty, Quintana admitted to using false statements and material omissions to obtain from local pastors grant deeds to church properties, and then using fake resolutions to memorialize the agreement of the local congregations to new mortgages on the local church properties when no such authorization had been given.

    Acting United States Attorney Patrick D. Robbins and FBI Special Agent in Charge Sanjay Virmani made the announcement.

    Quintana admitted to fraudulently obtaining mortgages on the following church properties:

    • Kyles Temple in Vallejo: Quintana was part of a group that assisted with the purchase of a $1.5 million episcopal residence in Granite Bay, with approximately $1 million covered by a bank loan. To obtain the additional $500,000 in funding, Quintana learned that the anticipated loans required the use of two church properties as collateral. The group identified two church properties that would be used as collateral to secure financing to purchase the episcopal residence, including Kyles Temple in Vallejo. At the time, Quintana was the chair of the Board of Trustees of Kyles Temple as well as the CFO of WED, Inc. Quintana drafted a fake resolution reflecting authorization by Kyles Temple for the loan and giving herself authority to execute loan documents in her role as Chair of the Board of Trustees. She admitted that there was no meeting at Kyles Temple to approve (or even discuss) this resolution.
    • First AME Zion Church in San Jose: In October 2017, Quintana assisted with documents and transactions to use the First AME Zion Church in San Jose as collateral for a new loan to buy a parsonage, a residence for the congregation’s new pastor. Quintana prepared a fake resolution on the San Jose congregation’s letterhead stating that the new pastor was authorized to sign all documents pertaining to the real estate transactions, following a “unanimous vote by the membership.” During the processing of the loan paperwork, Quintana learned that a title search for the San Jose church revealed a title interest in the property held by the AME Zion Church of Los Angeles. She then prepared another fake resolution stating that the AME Zion Church in Los Angeles held a membership meeting on or about Oct. 12, 2017, and voted to deed the church in San Jose to WED, Inc. Using the resolutions, WED, Inc. obtained a loan, the proceeds of which were used to purchase the parsonage. Quintana learned in late November 2017 that the San Jose congregation disputed the transaction, including the assertion that the church’s membership voted unanimously to approve the resolution. In or about August 2019, Quintana assisted with an additional transaction to refinance the 2017 loan using the First AME Zion Church of San Jose as collateral.
    • Greater Cooper AME Zion Church in Oakland: As CFO of WED, Inc., Quintana executed loan documents in May 2019 to borrow $525,000 using the Greater Cooper AME Zion Church in Oakland as collateral. Quintana signed the grant deeds transferring the property of Greater Cooper AME Zion Church in Oakland to WED, Inc. and other closing documents on May 16, 2019, and signed the deed of trust for the transaction as CFO of WED, Inc. on May 24, 2019. Following that, Quintana emailed Powell to inform him that the “expected cash amount from the Cooper loan is $506,000 . . . .” Quintana later learned that the property of Greater Cooper had been encumbered with approximately $1.5 million in debt and that the congregation objected to the encumbrance as unauthorized.
    • University AME Zion Church of Palo Alto: Quintana understood in 2017 that Powell had informed the Reverend of University AME Zion Church of Palo Alto that Powell planned to use the University church as collateral for a loan. Quintana prepared the paperwork needed for the transfer of the University AME Zion Church to WED, Inc. In March 2018, Quintana received paperwork for a $2 million loan using University AME Zion Church as collateral, and emailed the loan papers to Powell for him to sign. WED, Inc. encumbered the University AME Church with loans totaling $3.6 million, which Quintana admitted was debt that the congregation’s membership neither knew about nor authorized.
    • First AME Zion Church in Los Angeles: Beginning in December 2017, Quintana assisted with documents and transactions to use the First AME Zion Church in Los Angeles as collateral for a new loan. Quintana understood from Powell that the pastor of the Los Angeles church had told Powell that the membership had approved the transfer of title from the Los Angeles church to WED, Inc. Quintana prepared a resolution that purported to document a meeting at which the membership approved the transfer and authorized the Reverend of the Los Angeles church to sign documents pertaining to the transfer, as well as an updated resolution that purported to document a meeting at which the membership approved the transfer of title to WED, Inc., and authorized Powell to sign all documents pertaining to the transaction. She sent both fake resolutions to the lender. Quintana signed a resolution of the Board of WED, Inc. on Dec. 15, 2017, approving the obtaining of a loan using the Los Angeles church property as collateral, and executed loan documents on Dec. 20, 2017. Quintana admitted that she knew that the resolution included false information that was material to obtaining the loan using the church as collateral, and intended that the use of the false and material information would result in the loan’s approval and funding.

    Quintana further admitted that between September 2018 and June 2019, in recognition of the amount of time she had spent assisting Powell with the business of the Western Episcopal District, she prepared and signed three checks drawn on WED, Inc.’s bank account and made payable to her spouse totaling $67,500. The checks were payable to Quintana for her benefit. Quintana wrote and signed these checks making payment to her spouse because she did not want anyone other than Powell to know of the payments.

    According to the information filed on April 18, 2025, WED, Inc. filed a bankruptcy petition in July 2020 in which it claimed its assets included 11 churches, a parsonage, and Powell’s official residence. The petition stated that WED, Inc.’s real property was worth $26,338,031 and had debts totaling $12,475,453.

    Quintana is next scheduled to appear in court on July 15, 2025, for a status hearing. She faces a maximum sentence of five years in prison and a $250,000 fine for conspiracy to commit wire fraud and mail fraud in violation of 18 U.S.C. § 371. Any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Kathy Tat and Helen Yee. The prosecution is the result of an investigation by the FBI.

    MIL Security OSI –

  • MIL-OSI Economics: Global Financial Stability Report Press Briefing

    Source: International Monetary Fund

    April 22, 2025

    GFSR PRESS BRIEFING

    Speakers:

    Tobias Adrian, Financial Counsellor and Director, Monetary and Capital Markets Department, IMF
    Jason Wu, Assistant Director, Monetary and Capital Markets Department, IMF
    Caio Ferreira, Deputy Division Chief, Monetary and Capital Markets Department, IMF

    Moderator: Meera Louis, Communications Officer, IMF

    Ms. LOUIS: Good morning, everyone, and welcome to the GFSR press conference. And thank you for joining us today. I am Meera Louis with the Communications Department at the IMF.

    Joining us here today is Tobias Adrian, Financial Counsellor of the Monetary and Capital Markets Department. Also with us is Jason Wu, Assistant Director, and Caio Ferreira, Deputy Division Chief of the Monetary and Capital Markets Department.

    So, Tobias, before we turn the floor over for questions, I wanted to start by asking you, what were some of the challenges you and your team faced in preparing for this report? We are in uncharted territory now. So how did you come up with a strategy to shape this report?

    Mr. ADRIAN: Thank you so much, Meera. And welcome, everybody, to the International Monetary Fund.

    We are launching the Global Financial Stability Report, and let me give you a couple of headline messages from the report.

    Our baseline assessment for global financial stability is that risks have been increasing, and there are really two main factors here: One is that the overall level of policy uncertainty has increased; and the second factor is that the forecast of economic activity going forward is slightly lower, as Pierre‑Olivier presented at the World Economic Outlook press conference just now. So, it’s a combination of a lower baseline and larger downside risks. Having said that, we do see both downside and upside risks, and we will certainly explain more about the two sides of uncertainty throughout the press conference.

    So let me highlight three vulnerabilities that are driving our assessment.

    The first one is the level of risky asset values. We have certainly seen some adjustment in risky asset values. It’s important to see that in the broader context of where we are coming from. And, in recent years, we saw quite a bit of appreciation—particularly in equity markets and in some sectors, such as technology. So valuations were quite stretched and credit spreads were very tight by historical standards. And we have certainly seen some decline in valuations; but by historical standards, price-earnings ratios in equity markets, for example, continue to be fairly elevated and credit spreads and sovereign spreads have widened to some degree, but they are still fairly contained by historical standards. The stretching of asset valuations continues to be a vulnerability we are watching closely.

    The second vulnerability is about leverage and maturity transformation in the financial system, particularly in the nonbank sector, where we are looking closely at how leverage is evolving. As market volatility has increased, we have seen some degree of deleveraging, but market functioning has been sound so far. With higher volatility, we would expect asset prices to come down, but the functioning of how those asset prices adjusted has been very orderly to date.

    The third vulnerability that we are watching is the overall level of debt globally. In the past decade, and particularly since the pandemic in 2020, sovereign debt levels have been increasing around the world. It’s the backdrop of higher debt that can interact with financial stability and that’s particularly true for emerging markets and frontier economies, where we have certainly seen some widening of sovereign spreads. Issuance year to date has been strong, but, of course, the tightening of financial conditions that we observed in the past three weeks has an outsized impact on those more vulnerable countries.

    Ms. LOUIS: Thank you. Thank you, Tobias.

    And now I will open up the floor to questions. If you could please identify yourself and your outlet. You also have the report online, if need be. And you can also join us online via the Webex link. Thank you.

    So, the lady here in the front.

    QUESTION: Hi. My name is Ray. I am with 21st Century Business Herald, Guangdong, China.

    So, my question is that, you’ve highlighted a series of vulnerabilities and risks. So how does the IMF assess the risk of these tensions triggering broader macro‑financial instability, especially in emerging markets with weaker buffers?

    My second question is that during times of global uncertainty, safe haven assets, such as gold and US treasuries, have been very volatile recently. So how does the IMF assess the volatility affecting currency stability? Thank you so much.

    Ms. LOUIS: Thank you. Tobias?

    Mr. ADRIAN: Thanks so much.

    So, starting with the second part of your question. We have seen a strong rally in gold prices, which is the sort of usual relationship we see in safe haven flows. When there is a high level of uncertainty, risky assets are selling off, oftentimes gold is viewed as a hedge asset and it has been appreciating.

    Of course, US treasuries remain the baseline reserve asset globally. It’s the largest and most liquid sovereign market. And  we have seen yields move. They have been increasing in the past two weeks, which is somewhat similar to the episode in 2020, when longer‑duration assets had yields increasing, as well. What is somewhat unusual is that the dollar has been falling, to some degree, but it’s important to keep that in the context of the strong dollar rally previously.

    Concerning the emerging markets and frontier economies, yes, the tightening of global financial conditions has an outsized the impact on weaker economies. We have seen a number of weaker emerging markets and frontier economies with high levels of debt. We have seen issuance throughout last year and earlier this year, but tighter financial conditions certainly adversely impact the financing conditions for those countries.

    Mr. WU: Maybe just to quickly add on emerging markets.

    I think it’s important to distinguish the major larger emerging markets versus the frontiers, as Tobias has mentioned. I think so far, we have seen currencies and capital flows being relatively muted in this episode. And I think this speaks to the ongoing theme that we have mentioned for several rounds now, that there’s resilienc among the emerging market economies for a whole host of reasons.

    However, as Tobias has pointed out, the external environment is not favorable and financial conditions are tightening globally. At this time, we need to worry about, countries where they are seeing sovereign spreads increasing, with large debt maturities forthcoming. Policy can be proactive to head off these risks by, for example, making sure that fiscal sustainability is being sent the right message.

    Ms. LOUIS: Thank you, Jason. The gentleman in the first row, at that end.

    QUESTION: Thank you. Rotus Oddiri with Arise News.

    So theoretically, if the dollar is weakening, isn’t that, to some degree, relatively good for countries with dollar debts?

    And secondly, how are you seeing fund flows to cash? If there’s a lot of volatility, are you seeing more movements to cash? And are there implications there in terms of [M&A] activity and so on and so forth?

    Mr. ADRIAN: So let me take this in three parts.

    The first question is about sort of like the strength of the dollar and the impact for emerging markets. When we look at exchange rates relative to emerging markets, there’s some heterogeneity. The dollar has appreciated against some emerging markets and depreciated against others. But it’s not the only impact on those financing conditions. We certainly have seen a notable widening of financing spreads. And that is probably the more important determinant for external financing conditions in emerging markets.

    Now, having said that, in some of the larger emerging markets with developed local government bond markets, we have seen some inflows into those local markets, but it’s very country‑specific.

    Turning to the question of investment decisions. We think that the first‑order impact here is the overall level of uncertainty. So, generally, investment decisions are easier in an environment with certainty. Given that some uncertainty remains about how policies are going to play out going forward, that can be a temporary headwind to investments or merger activity.

    Mr. WU: Just to quickly respond to your question about cash. I think during periods where markets are volatile, it’s reasonable that market participants and investors demand more liquidity, thereby moving in cash. We have not seen this happening en masse so far during this episode. So, we have seen bank deposits increase a little bit in the United States, but I think the magnitude is significantly smaller compared to previous episodes of stress.

    Ms. LOUIS: Thank you. Thank you, Jason. So, the lady here in the second row, with the glasses.

    QUESTION: Hi. Szu Chan from the Telegraph.

    Do you see any parallels between recent moves in the bond market, particularly in US treasuries, with what happened in the wake of the Liz Truss mini budget? And do you think any lasting damage has been done?

    Mr. ADRIAN:

    Just for everybody’s recollection, in October 2022, there was some turbulence in UK gilt markets when the budget announcements were larger than expected and the Bank of England intervened to stabilize markets at that time. Clearly, we haven’t seen interventions by central banks, and the market conditions have been very orderly in recent weeks. There’s a repricing relative to the higher level of uncertainty but as I said at the beginning, there is both upside and downside risk. And we could certainly see upside risk if uncertainty is reduced going forward.

    And market conditions have been quite orderly. The moves are notable in treasuries, in equities, in exchange rates, but they are within movements we have seen in recent years and really reflect the higher level of volatility.

    Mr. Ferreira: I don’t think I have much to add to this, Tobias.

    I think that what we are seeing is some moves that have not been historically deserved in this kind of situation. But these mostly respond to these higher uncertainties and a repricing to the new macro scenario.

    Ms. LOUIS: So, before I go back to the floor, we do have a question on Webex, Pedro da Costa from Market News International. Pedro?

    QUESTION: Thank you so much, Meera. Thank you, guys, for doing this.

    My question is, given the market concerns about the threat to central bank independence, if the threat were exercised in a greater way, what would be the financial stability implications of a potential firing of either the Fed Chair or Fed Governors?

    Ms. LOUIS: Thank you, Pedro. Are there any other questions on central bank independence? I don’t see any in the room. So over to you, Tobias 

    Mr. ADRIAN: Thanks so much.

    So, the International Monetary Fund has been advising central banks for many decades. Helping central banks in terms of governance and monetary policy frameworks is really one of the core missions of the IMF. And we have seen time and time again that central bank independence is an important foundation for central banks to achieve their goals, which are primarily price stability and financial stability. We do advise our membership to, have a degree of independence that is aimed at achieving those overarching goals for monetary policy and financial stability policies.

    Ms. LOUIS: Thank you. Thank you, Tobias. The gentleman in the first row.

    QUESTION: Thank you so much. My name is Simon Ateba. I am with Today News Africa in Washington, DC.

    I want to ask you about AI. It seems that is the big thing now. First, are you worried about AI? And what type of safeguards is the IMF putting in place to make sure that advanced countries—that AI doesn’t increase risk?

    And maybe, finally, on tariffs. We know that President Trump is imposing tariffs today, removing them tomorrow. China is retaliating. How much will that affect the financial stability of the world? Thank you. 

    Mr. ADRIAN: Thanks so much. Let me start with the question on artificial intelligence, and Jason can complement me.

    We have done quite a bit of work on that. In October, we actually had a chapter specifically focused on the impact of artificial intelligence on capital market activity, but, of course, the impact of AI is broader. And in our view, there are both risks and opportunities. I think the main opportunity is that it’s actually potentially quite inclusive, right?

    Everybody that has access to the internet via a smartphone or a computer or a tablet, in principle, can use those very powerful artificial intelligence tools. And we have seen examples in emerging markets and lower‑income economies where entrepreneurs are actually using these new tools to innovate. That can boost productivity around the world.

    In financial markets, we do quite a bit of outreach to market participants. And financial institutions—including banks and capital market institutions—are very actively exploring avenues to use artificial intelligence productively. There’s a lot of innovation going on. At the moment, we see a lot of that concentrated in back‑office kind of applications, so keeping your house in order in terms of getting processes done. But in trading and in credit decisions, these are also quite promising.

    In terms of risks, our primary concerns are cybersecurity risks. Many financial institutions are already under cyber attack., AI can be used to make defenses more efficient, but it can also be used for malicious purposes and making attacks more powerful. So, there’s really a bit of a power game on both sides. And we certainly advise many of our members to help them get to a more resilient financial system, relative to those cyber threats.

    Mr. WU: Maybe just quickly, to complement.

    I would encourage everybody to read Chapter 3 of the October 2024 GFSR, which addresses the issue of artificial intelligence in financial markets. Tobias is right, that there are benefits and risks on both sides.

    In addition to cybersecurity, I just wanted to highlight a couple more things, which is that, many of the financial institutions that we spoke to are still at their infancy in terms of deploying AI to make decisions—meaning, for trading or for investment allocation, they are at very early stages. But suppose that this trend rapidly gains? What would happen to risks?

    I think I will highlight two. One is concentration. Will it be a situation where the largest firms with the best models tend to win out and, therefore, dominate the marketplace? And then what are the implications for this? The second is that the speed of adjustment in financial markets might be much quicker if everything is based on high‑powered, artificial intelligence-type algorithms.

    With regard to these two risks, I think there’s great scope for supervisors to gather more information and understand who the key players are and what they are doing. International collaboration obviously is a crucial aspect of this. Market conduct needs to be taken into account, the future possibility that markets will be very much faster and more volatile, perhaps.

    Ms. LOUIS: Thank you. The gentleman in the second row, please, in the middle here. Thank you.

    QUESTION: Good morning. I am [Fabrice Nodé‑Langlois] from the French newspaper Le Figaro.

    I have a question on the US public debt. There is a widespread opinion that whatever the level of the public debt—because of the significant role of the dollar, because of the might of the American military and economic power—it’s not a big concern. But under what circumstances, under what financial conditions would the US public debt become a concern for you?

    Mr. ADRIAN: Thanks so much for the question. We are certainly watching sovereign debt around the world, including in the US. I do want to point out that there will be a briefing for the Western Hemisphere region that will specifically focus on the Americas, including the United States.

    When you look at our last Article IV for the United States, we certainly find that the debt situation is sustainable. You know, The U.S. has many ways to adjust its expenditures and revenues. And we think that this makes the debt levels manageable.

    Having said that, as I explained at the beginning, we have seen broadly around the world an increase in debt‑to‑GDP levels, particularly since the start of the pandemic in 2020. And it is an important backdrop in terms of pricing and financial stability. So, we are watching the nexus between sovereign debt and financial intermediaries very carefully.

    Mr. Ferreira: Maybe one issue related with that— I think that we flagged it in the GFSR—is that I think there is an anticipation that—not only in the US but in several countries—there will be a lot of issuance of new debt going forward. Particularly in a moment where several central banks are doing some quantitative tightening, this might bring some challenges in terms of the function of the financial sector.

    Everything that we are seeing now seems to be working very well, even when we have this kind of shock. This is not a major concern. But going forward, we feel that it’s important to continue monitoring market liquidity. There are some flags that have been raised, particularly in terms of broker‑dealers’ capacity to continue intermediating and providing liquidity to public debt. It’s important to keep monitoring this, as central banks keep going in the direction of quantitative tightening.

    Ms. LOUIS: Thank you. Thank you, Caio.

    And just to add to Tobias’s point, we will have a lot of regional pressers this week. And the Western Hemisphere presser will be on Friday if you have any US‑specific questions. Thank you.

    The lady here in the front row.

    QUESTION: Thank you. Thank you for taking my question. My name is Nume Ekeghe from This Day newspaper, Nigeria.

    The report mentions Nigeria’s return to Eurobond markets. And we know it was received positively by investors. So how does Nigeria’s return to Eurobond markets signal renewed investor confidence? And what specific macroeconomic reforms or improvements contributed to the shift in sentiments? Thank you.

    Mr. WU: Thank you for that question. Let me make some remarks about Nigeria and then sub‑Saharan Africa, in general.

    In the case of Nigeria, macroeconomic performance has held up,  GDP growth has been fairly consistent, and inflation has been coming down. Earlier this year, we have seen Nigeria’s sovereign credit spreads lowering. I think the reforms that the authorities have done, including the liberalization of exchange rates, has helped in that regard.

    That said, I think I want to go back to the theme that Tobias has mentioned, which is that during a time where global financial markets are volatile and risk appetite, in particular, is wavering, this is when we might see increases in sovereign spreads that will challenge the external picture for Nigeria, as well as other frontier economies. So, for example, Nigeria’s sovereign spread has increased in recent weeks, as stock markets globally have declined.

    The other challenge, of course, is for large commodity exporters, like Nigeria. If trade tensions are going to lead to lower global demand for commodities, this will obviously weigh on the revenue that they will receive. So, I think both of those developments would counsel that authorities remain quite vigilant to these developments and take appropriate policies to counter them.

    Ms. LOUIS: Thank you. Thank you, Jason.

    And just before I come back to the floor, we have another question online, from Lu Kang, Sina Finance. The question is, in light of the IMF’s recent GFSR warning about rising debt, volatile capital flows, and diverging monetary policy paths, how should countries, especially emerging markets, balance financial stability with the imperative to finance climate transitions and digital infrastructure?

    Mr. ADRIAN: Thanks so much.

    We do a lot of work on debt management with countries. We are providing technical assistance and we are doing a lot of policy work on debt market developments. I think the two main takeaways are, No. 1, the plumbing matters. Putting into place mechanisms such as primary dealers and clearing systems, and pricing mechanisms in government bond markets. It is important all over the world. That includes the most advanced economies, as well as emerging markets. And we have seen tremendous progress in many countries, particularly the major emerging markets in terms of developing those bond markets.

    The second key aspect, of course, is fiscal sustainability. Here again, we engage very actively with our membership to make sure that fiscal frameworks are in place that keep debt trajectories on a path that is commensurate with the economic prospects of the countries.

    Ms. LOUIS: Thank you. Thank you, Tobias. A question here in the front row, please.

    QUESTION: Thank you. Kemi Osukoya with The Africa Bazaar magazine.

    I wanted to follow up on the question that my colleague from Nigeria mentioned, regarding sovereign debts. As you know, African nations, after a period of pause, are just right now returning back to the Eurobond. But at the same time, there is unsustainable high borrowing costs that many of these countries face. So, in your recommendation, what can governments do regarding their bond to use it strategically, as well as to make it sustainable?

    Mr. ADRIAN: Thanks so much for this question. And you know, we are working very closely with many sub‑Saharan African countries to support the countries either via programs or via policy advice and technical assistance to have a macro environment that is conducive for growth. So let me mention three things.

    I think the first one is to recognize that we have been through a period of extraordinarily adverse shocks. Particularly in sub‑Saharan Africa, the pandemic had an outsized impact on many countries. The inflation that ensued was very costly for many countries, particularly for those that are importing commodities. So, the adverse economic shocks have been extraordinary. And I would just note that we have engaged more actively in programs with sub‑Saharan Africa in the past five years than we ever did previously.

    The second point is about the financing costs. And, of course, there are two main components. One is the overall level of financial conditions globally. All countries in the world are part of the global capital markets. And that really depends on overall financing conditions. But more specifically, of course, there are country‑specific conditions—the macroeconomic performance of each country, the buffers in the countries—and the mandate of the Fund is very much focused on macro‑financial stability. So, getting back to a place with buffers, which then can lead to lower financing costs is the main goal. Our work with those countries is very much focused on the kind of catalytic role of the Fund, where we are trying to get growth back and stability back. Let me stop here.

    Ms. LOUIS: Thank you. Thank you, Tobias. And a question here in the front row, please. And then I will come back to the middle.

    QUESTION: Thank you very much. My name is [Shuichiro Takaoka]. I am working for Jiji Press.

    Just I would like to make clear the risk of a depreciation of the US dollar. And what are the implications of the recent depreciation of US dollar, especially regarding the global financial stability viewpoint?

    Mr. ADRIAN: As I mentioned earlier, we had seen quite a bit of an appreciation of the dollar earlier in the year and late [next] year. And now we have seen a depreciation that is roughly of commensurate magnitude. The volatility in the exchange rates is reflecting the broader volatility. There are some indications that the exchange rate movements are related to flows to investor reallocations, but the magnitudes of those flows are relatively small, relative to the run‑up of inflows into US assets in recent years. The cumulative inflows into bonds and stocks from around the world have been quite pronounced. So, to what extent these movements in the exchange rate and the associated flows are just a temporary or a more permanent impact remains to be seen. It really depends on how the current uncertainty is going to be resolved. As I said at the beginning, there are various scenarios. For the moment, it’s highly uncertain. As I said earlier, it is notable that the dollar declined, but I would not jump to conclusions in terms of how permanent that move may be.

    Mr. WU: Just to complement. I think when exchange rates are very volatile, one of the key channels for financial stability could be pressures in various funding markets. And this includes in cross currency markets, as well as in repo markets and other secure financing markets. I think this is something that we will be watching very closely. So far, we have not seen any major disruptions in those markets, despite the very volatile exchange rates.

    Mr. ADRIAN: So as a comparison, you can think of last August when there was a risk‑off moment. That was very short, but that did lead to dislocations in those cross‑currency funding markets. And we haven’t really seen that in recent weeks.

    Ms. LOUIS: So just on that line, I think you may have captured it, but I just wanted to get in this question that came in online from Greg Robb from MarketWatch. And it’s, have treasuries and the dollar lost their safe haven status? If not, what accounts for their recent performance?

    Mr. ADRIAN: So, again, it is somewhat unusual to see the dollar decline in the recent two weeks, really, when equity prices traded down with a negative tone and when longer‑term yields increased. But how lasting that is, is really too early to tell.

    US capital markets remain the largest and most liquid capital markets in the world. When you look at US dollars as a reserve asset, that remains over 60 percent among reserve managers. Global stock market capitalizations increased to 55 percent most recently, up from 30 percent in 2010. So, we have seen price movements that are notable; but in the big picture, the depth and size of the markets remain where they have been.

    Ms. LOUIS: And just on the same line, of capital markets. We have another question that came in online, [Anthony Rowley] from the South China Morning Post. And he says, both the EU and ASEAN are seeking more actively to promote capital market integration. Do you see this as reducing global dependence on US capital markets to any significant extent in the short to the medium term?

    Mr. ADRIAN: We are generally of the view that deep capital markets are beneficial everywhere. So, we are helping countries around the world to get to solid regulations and market mechanisms in sovereign bond markets but also, more broadly, in capital markets. And, for emerging markets and advanced economies, deepening capital markets has been a key priority.

    We have seen many firms from around the world come to US markets to issue stocks and bonds. And we think that’s related to the depth of the market and the sophistication of the financial sector in the US markets. So, it does provide a service to corporations and financial institutions around the world. But there are certainly many other markets that are deep, that are developing, and that are providing opportunities for both corporations and governments to issue. So, we have seen that trend continue.

    Ms. LOUIS: Thank you. Caio?

    Mr. Ferreira: Maybe just more broadly on the development of capital markets, as Tobias was saying, I think that it’s an important goal. And this has come hand‑in‑hand with the growth of non‑banking financial institutions that we are seeing across the globe. We see this as a potential positive development. You diversify the sources of funding and the credit to the real economy, diversify the risks across a broader set of institutions, this is good for the economy and financial stability.

    There are risks that need to be mitigated. We discuss some of them in the GFSR—leverage, interconnectedness between different kinds of institutions. But overall, there are policies created by the standard setters that, if implemented, can mitigate these risks.

    Ms. LOUIS: Thank you, Caio and Tobias. 

    Going back to the room. There’s a lady in the second row.

    QUESTION: Hi. Riley Callanan from GZERO Media.

    The IMF downgraded the US, the most of all advanced economies. And I was wondering, is this a short‑term hit that in a year could lead to greater growth and investment in the US? Or is this a long‑term downgrade? Or is it too soon to tell, as you said, with capital markets?

    Mr. ADRIAN: We are really looking more at the financial stability aspects. And I would just note that there has been a readjustment in expectations. Where the US and other economies are going to end up remains to be seen. But I think what is notable is that with the sharp adjustment in asset prices, the increase in uncertainty has been absorbed well in capital markets. And as Caio alluded to, it is the policy framework around the banking system and the non‑banks that is so important to create resilient and deep financial markets that are then facilitating adjustments, relative to new policy developments. And from that vantage point, I think even though we have seen the level of uncertainty increase, markets have been very orderly. And we think that the regulatory and policy framework is key for that achievement.

    Ms. LOUIS: Thank you. Thank you, Tobias.

    And if you would like to flesh out any more details on the growth ramifications, we have a conference on Friday. And I can send you the details.

    Another question here, in the second row. I will come back to you.

    QUESTION: Hi. Gabriela Viana from Galapagos Capital in Brazil.

    So, in Brazil, commodities prices play an important role for currency [and] international capital inflows, especially in the stock market. Do you see commodities prices as a main important constraint for markets or the economic policy’s uncertainties or maybe the monetary tightening? Thank you.

    Mr. WU: All these factors are related to each other, obviously. So, I think the commodity prices, if the WEO forecast were to play out, the global economy is going to be slowing. It’s certainly an impact on the revenue side.

    I think for many emerging markets, the silver lining here is that they do have policy room. Many of them do have monetary policy room. Some of them have fiscal room, although only a few of them. So, it seems like this is going to be a challenging period, and uncertainty [and] commodity channels are both going to weigh on economies for emerging markets.

    We have seen broad‑based resilience among emerging markets over the last few years compared to, let’s say, five years before the pandemic. So, I think this speaks to the institutional quality having improved in emerging markets. And hopefully this would continue to buffer emerging markets from these external shocks.

    Ms. LOUIS: Thank you. Thank you, Jason.

    And the lady in the middle. And then I will come back to Agence France‑Presse.

    QUESTION: Hi. Thank you for taking my question. I am Stephanie Stacey from the Financial Times.

    I wanted to expand on the previous questions about the dollar and treasuries. And I know you mentioned it’s hard to assess at this point how lasting the impact will be. But I wanted to ask what risks and future factors you think could drive a real shift in their safe haven status.

    Ms. LOUIS: Before we continue, are there any other questions on the dollar and the safe haven status? Yes. There is a question here.

    QUESTION: Hi. Mehreen Khan from The Times. I’m sorry. I will stand up.

    You mentioned the importance of swap lines and central banks cooperating at times of market stress. I mean, how much are we taking this type of cooperation for granted? And how much is the idea of the Fed providing swap lines to other central banks now in question, given the nature of the scrutiny that the institution is under from the Trump administration?

    Mr. ADRIAN: Let me start with the swap lines.

    In previous episodes of distress, such as the COVID-19 shock in 2020 or the global financial crisis in 2008, we have seen that swap lines from the major central banks—including Bank of England, ECB, Bank of Japan, and the Federal Reserve—have played an important role in terms of stabilizing market liquidity. The way to think about that is that the central banks are providing funding to partner central banks in the currency of the foreign assets that those institutions own. So, it’s an important underpinning to provide market functioning and resilience to your own assets in the hands of foreign financial institutions.

    As we mentioned earlier central banks have not intervened for liquidity purposes in recent weeks. And, despite a heightened market volatility, the VIX, for example, went from below 20 to between 40 and 50, which is fairly elevated. We have seen a very, very smooth market functioning across the board.

    Concerning the role of treasuries we are looking at the pricing of longer duration treasuries very carefully. We particularly look at supply factors, demand factors, and technical factors. We have seen volatility in the price moves, but we think that those are within reasonable historical norms.

    Mr. WU: Just to complement, I think in the treasury market, we have seen market functioning held up—meaning that buyers can find sellers and transactions are going through. I think that’s a very important sign.

    One thing that I wanted to mention also is that a year ago in our report, we pointed out that there are leveraged trades in the treasury market. These are trades that have not very much to do with economic fundamentals in the US or elsewhere but, rather, are using leverage to capture arbitrage opportunities in markets. When these trades are unwound, there will be impact in the treasury market. And this is something that we have pointed out before. These include the so‑called treasury cash‑futures basis trade, as well as a swap spread trade, which we have documented before. And I think during this episode, given the very heightened volatility, we have seen evidence of some of these positions being unwound, potentially having an impact on treasury yields as well. So, I just wanted to put this into context. This is not about capital outflows, but it’s about unwinding these trades having amplified the recent price movements in treasury markets.

    Mr. ADRIAN: We are seeing some indication that there’s some lowering in terms of the leverage in these trades, but we haven’t heard of disorderly deleveraging at this point. So, of course, with market volatility increasing, financial institutions naturally reduce their leverage. But we haven’t seen the kind of adverse feedback loop that was common, say, in 2008 or even as recent as the COVID-19 shock initially.

    Ms. LOUIS: Thank you. Thank you, Tobias.

    And there’s a question from Agence France‑Presse, in the middle. And then I will come back to you, and you. We are running out of time. So, we will take very, very few questions left.

    QUESTION: Thanks for taking my question. Just a quick question. In your report, you talk about geopolitical risk, including the risk of military conflicts. I just wonder how seriously you think people should take that and where you rate that when it comes to the global financial stability risks you have discussed already.

    Ms. LOUIS: Thank you. And I have just been told we are running out of time. So, we will just clump those questions, if you could be very quick. The gentleman over there and the lady there. And then we will wrap it up. Thank you.

    QUESTION: Hi. [Rafia] from Nigeria. I work on [Arise TV].

    The IMF keeps talking about building resilience to face the global challenge of the state of the economy of the world. How do you build resilience in a world economic climate when one man’s decision can tip the scale? Just one man. He could wake up tomorrow and all our projections falter. One man.

    Ms. LOUIS: Thank you. And then the last question.

    QUESTION: Laura Noonan, Bloomberg News. Thanks for taking the question. It’s actually a related question.

    You spoke in the report about the need for policymakers to try to do what they can to guard against these future financial shocks. Do you have any practical suggestions on what those measures could be? And also, are you expecting people to take measures to make the financial system safer when the overall political mood, as you have seen, has very much been about trying to liberalize things, trying to deregulate, and trying to simplify? Thank you.

    Ms. LOUIS: Thank you. Tobias?

    Mr. ADRIAN: Let me address the three sets of questions and then turn to my colleagues as well.

    On geopolitical risk, we do have a chapter that was released last week that is looking at capital market performance relative to geopolitical risks. And the good news is that, generally, when adverse risks realize, there is an asset price adjustment. But on average, relative to recent decades, those risks are absorbed well by the financial system in general. Now, of course, when conflicts directly impact countries, that can have a pronounced impact on their financial systems, and it’s something that we are discussing in more detail in the chapter.

    Secondly, in terms of the exposure of countries to physical risk, we have certainly seen in some countries around the world, a heightened incidence of drought and floods, even those can be macro‑critical. To the extent that these developments impact macro stability, we are certainly there to support countries and help them, either via programs or policy frameworks.

    Thirdly, in terms of the regulation of financial institutions and financial markets. You know, I think the last couple of weeks are very good illustrations for the importance of resilience of financial institutions. I mean, we have seen a tremendous increase in the level of volatility, which reflects the higher level of uncertainty. Last October, our overarching message in the GFSR was that there was this wedge between policy uncertainty and financial market volatility, which at the time was very low. And we have seen financial market volatility catch up with the high level of policy uncertainty. But that has been orderly, and financial institutions have been resilient. That is really the main objective of financial sector regulation—to get to a place where the financial system can do its job in terms of adjusting to unexpected developments. And when you have resilience in banks and in non‑banks, these adjustments are smooth. And that is the point of finance, right? It’s a kind of an insurance mechanism for the global economy and for individual country macro economies. Good regulation leads to good stability. And we have a lot of detail on that in the GFSR.

    Mr. Ferreira: Maybe I could add a little bit on this about how to build resilience.

    I think that as Tobias was saying, trying to anticipate shocks is very hard. And it is very hard to do it. So, I think the way to build the resilience is focusing on vulnerabilities. In the GFSR, we have mentioned some vulnerabilities that we feel are important at this time. So, the valuations issues that makes the risk of repricing more likely, leveraging in some segments of the financial sector and in the interconnectedness with the banks, and also, of course, rising and high debt in several countries.

    How do you build the resilience in the face of these vulnerabilities? We do feel that banks in most countries are actually the cornerstone of the financial sector and so ensuring that they have appropriate levels of capital and liquidity is key. And the international standards do provide the basis for doing that. To address some of the other vulnerabilities, like leveraging an interconnection between different types of institutions, excessive [transformations], maybe.

    Finally, I think that on the issue of rising debt, one common theme that we have been talking about is about the need to credibly rebuild fiscal buffers.

    Ms. LOUIS: Thank you. Thank you very much. I know we have covered a lot of ground, and I apologize that we could not get to everybody. If you do have any follow‑ups or any questions, please feel free to reach out to me. You can find the report online, and we can also send it to you bilaterally.

    Again, thank you very much for coming and thank you for your time. Take care.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Meera Louis

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    MIL OSI Economics –

  • MIL-OSI USA: Rep. Carbajal Reintroduces Bill to Ban Future Offshore Oil Drilling in California

    Source: United States House of Representatives – Representative Salud Carbajal (CA-24)

    This week, Representative Salud Carbajal (D-CA-24) announced the reintroduction of the California Clean Coast Act. The California Clean Coast Act was the first bill Congressman Carbajal introduced as a Member of Congress, demonstrating his longstanding commitment to protecting California’s coast from offshore drilling and the devastating impact of oil spills.

    The California Clean Coast Act would permanently ban future offshore oil and gas leasing in areas of the Outer Continental Shelf off the coast of California. 

    “Santa Barbara knows firsthand how devastating oil spills can be on our marine ecosystems and coastline,” said Rep. Carbajal. “I’m proud to lead this bill to ban future offshore oil drilling in our state and ensure California’s world-famous coastline is protected for future generations to enjoy.”

    “California’s spectacular marine life — including complex kelp forests and charismatic sea otters — and vibrant coastal economies rely on healthy ecosystems. This legislation could, once and for all, block offshore drilling activities along the continental shelf, and protect critical marine habitats along California’s iconic Pacific Coast,” said Pamela Flick, Defenders of Wildlife California Program Director.

    “The California Clean Coast Act is critical to protecting our coast and climate from the threats of offshore oil drilling,” said Linda Krop, Chief Counsel of the Environmental Defense Center, which was founded in the aftermath of the 1969 Santa Barbara oil spill.  “From the 1969 blowout at Platform A to the 2015 pipeline spill along the Gaviota Coast, the California Coast has suffered the devastating effects of offshore oil development on communities who live, play, and work here. We know that when it comes to offshore oil drilling, it is not a question of if – but when – another spill will devastate our beaches, our ocean, our wildlife, and our economy. The California Clean Coast Act will preserve our precious coast from the threats of future oil spills and climate change.”

    Rep. Carbajal has been a staunch advocate to ban future offshore drilling off the Central Coast. At the end of the Biden Administration, Carbajal’s 8-year push to ban future offshore oil drilling came to fruition when President Biden invoked his authority to protect over 625 million acres of federal waters —including the entire East Coast, the eastern Gulf of Mexico, the Pacific coasts of Washington, Oregon, and California, and parts of the Northern Bering Sea— from oil and gas exploration. Congressman Carbajal was one of 12 members of Congress who wrote to President Biden requesting this action before the end of his term.

    For the full bill text click here.

    MIL OSI USA News –

  • MIL-OSI New Zealand: Northland Expressway: Emerging preferred corridor from Te Hana to Whangārei announced

    Source: New Zealand Government

    Good progress continues to be made on the Northland Expressway, with the emerging preferred corridor for the Te Hana to Port Marsden Highway and the Port Marsden Highway to Whangārei Roads of National Significance now confirmed by NZTA, Transport Minister Chris Bishop and Regional Development Minister Shane Jones say.
    “The Waikato Expressway delivered by the last National-led Government has been a game changer for the Waikato region. The Northland Expressway is a genuinely transformational opportunity to boost jobs and growth in an area rich with potential and link Northland to New Zealand’s biggest city,” Mr Bishop says.
    The Northland Expressway has been divided into three sections:

    Warkworth to Te Hana
    Te Hana to Port Marsden Highway
    Port Marsden Highway to Whangārei

     
    The Warkworth to Te Hana section will be a 26km-long four-lane road, connected to the new Pūhoi to Warkworth motorway and is currently in procurement, following the announcements made at the NZ Infrastructure Investment Summit in March.
    “Today NZTA is announcing the emerging preferred corridor from Te Hana to Whangārei, which will deliver a new four-lane, mainly grade-separated route that bypasses key pressure points on the current State Highway 1 (SH1).
    “For Section 2, Te Hana to Port Marsden Highway, the emerging preferred corridor is a new route to the east of SH1 between Te Hana and the Brynderwyn Hills, near to the east of SH1 at the Brynderwyn Hills and to the west of SH1 between the Brynderwyn Hills and Port Marsden Highway.
    “The Brynderwyn Hills is a very challenging section due to the steepness of terrain and quality of the geology. Alternative options in this location looked at western routes but following further investigation, NZTA has reassessed and found a near east alignment close to SH1. This is a more direct route with more predictable geology that can be managed through engineering design.
    “For Section 3, Port Marsden Highway to Whangārei, the emerging preferred corridor is a new road near SH1 between Port Marsden Highway and State Highway 15 Loop Road and a widened SH1 corridor approaching urban Whangārei,” Mr Bishop says.
    Mr Jones says the recent bad weather, during which SH1 on the Brynderwyns was partly closed due to a slip, illustrated the urgency required to get work underway.
    “The new expressway, which will be designed to better withstand severe weather, will provide a more resilient transport network, keeping people and goods moving and reduce travel time.
    “This transport infrastructure is a key point in the New Zealand First-National Coalition Agreement. The Northland Corridor is a top priority for the Government and we are working quickly to deliver this vital connection to help Northland’s economy grow and its communities thrive.”
    NZTA will be doing further investigation and design refinements and Ministers expect to be able to confirm the preferred route in August or September this year.
    This will provide landowners with greater certainty around any impact the project will have on their properties. 

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: ECE sector review changes begin

    Source: New Zealand Government

    Regulation Minister David Seymour has today provided an update on the implementation of the Early Childhood Education (ECE) regulatory review.
    “This review and the changes announced today show the power of a sector review. The Ministry for Regulation went in and listened to the people who actually run, work at, and use early childhood regulation. They found people encircled by multiple regulators enforcing out of date rules, and proposed solutions now being put into action,” Mr Seymour says.
    “By the end of next year ECE providers will be governed by a regulatory system which ensures regulations are focused on what matters, child safety. 
     
    Cabinet has agreed to 15 changes which modernise and simplify regulations across ECE. Services will be able to get on with what they do best – providing safe, high-quality care and education as the changes are rolled out over the coming year.
    “Part of the change will involve amending laws in Parliament. The Education and Training (Early Childhood Education Reform) Amendment Bill will action many of these changes. The bill will be introduced in July, and I expect it to be passed by the end of the year,” Mr Seymour says.
    “The biggest complaint arises from the calcified, high stakes licencing criteria – 98 of them – that can each have a centre shut down with little to no notice. New licensing criteria will be gazetted by the end of September, following the recommendation to change or merge approximately three-quarters of the licensing criteria. Consultation will begin shortly to test the precise changes.
    “By mid next year, graduated enforcement tools will be used to respond to breaches of the remaining licensing criteria. The only enforcement tools previously available were the granting or removal of ECE licenses, which is too blunt a tool for managing minor breaches and enabling early intervention. There will no longer be high-stakes open-or-shut rules that create anxiety and strained relationships for regulators and centre operators alike.” 
    Graduated enforcement will give the regulator a range of enforcement measures. They will be able to respond proportionately to breaches, changing the sector’s culture from a punitive approach to promoting quality.  
    “The implementation of the recommendations represents a major shakeup of the sector’s outdated system. It is a great result for children, parents and ECE service providers,” Mr Seymour says.  
    “The changes will reduce unnecessary compliance costs, remove duplication, and streamline operational requirements. ECE providers will no longer be burdened with 98 separate licensing criteria, many of which were arbitrary or outdated, such as requirements to: 

    ⁠maintain a constant indoor temperature of 18 degrees, when common sense says a minor deviation from 18 degrees won’t hurt anyone, and
    ⁠hold immunisation records for every child over 15 months, which the Ministry of Health already does.

    “This will encourage more providers into a thriving market with reduced operation costs and compliance headaches. For parents this will mean more safe and affordable ECE options for their children.  
    “As part of its comprehensive review, the Ministry for Regulation analysed over 2,300 submissions and written feedback, met with parents and caregivers, providers and workers, visited 16 ECE services, and conducted a series of structured interviews and workshops with other agencies that engage with or regulate the sector. Thank you to the thousands of people who contributed their views.
    “This is just the beginning. The Ministry is now helping the agriculture and horticulture sector implement sector review findings, and progressing sector reviews into the hairdressing and barbering, and the telecommunications sector. They’re also working closely with the industrial hemp industry and others who’ve come forward through our red tape tipline.
    “In a high-cost economy, regulation isn’t neutral. It’s a tax on growth. Every completed review makes it easier to do business, access services, and innovate in New Zealand. The ECE review is the first of many examples of what smarter regulation looks like in action.”
    Link to report: https://www.regulation.govt.nz/about-us/our-publications/regulatory-review-of-early-childhood-education-full-report/
    Link to report summary: https://www.regulation.govt.nz/about-us/our-publications/regulatory-review-of-early-childhood-education-summary/

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Economy – CoFR seeking feedback on access to basic transaction accounts – Reserve Bank

    Source: Reserve Bank of New Zealand

    23 April 2025 – A basic transaction account should be available to anyone, irrespective of their circumstances, financial position or capability with technology, according to the Council of Financial Regulators (CoFR).  

    CoFR, which includes the Reserve Bank of New Zealand, the Financial Markets Authority, the Commerce Commission, the Treasury and the Ministry of Business, Innovation and Employment, has released a joint Issues Paper on Access to Basic Transaction Accounts.

    Following the release of the Issues Paper, a public consultation is now open. CoFR is seeking feedback on the proposed introduction of basic transaction accounts to better support customer groups that are currently excluded. The consultation will remain open for eight weeks and will close on 18 June 2025.

    “Having a transaction account means people can safely receive, store, spend and save money. Transaction accounts are a vital foundation for people to take part in the modern economy,” says Governor of the Reserve Bank of New Zealand, Christian Hawkesby.

    Basic transaction accounts are different from bank accounts that are currently on offer, as they have additional controls in place (such as transaction limits) that make them unsuitable for money laundering and the financing of terrorism. These additional controls make basic transaction accounts a low-risk product, allowing simplified onboarding.

    This means that basic transaction accounts can provide people with access to banking services who might otherwise be turned away, such as an older person whose driver’s licence may have expired, someone who has recently been released from prison, or a young person who may not have a passport yet.

    The Issues Paper highlights different options that have been taken to introduce minimum standards for basic transaction accounts in other countries.

    FMA Chief Executive Samantha Barrass says, “In order for the financial system to work for people in New Zealand, they need to be able to readily access basic banking services if they need them.”

     “Overseas in places such as the UK, basic transaction accounts can be a lifeline for people to receive an income or make payments, and we want to see them available here,” she says.

    Mr Hawkesby says, “We see the benefits that basic transaction accounts could have for some New Zealanders and broader society, particularly for customers who may be in challenging circumstances and struggle to meet traditional onboarding requirements, such as providing ID.”

    Westpac NZ recently launched a pilot basic bank account with the objective of improving access to banking services. Westpac NZ’s new basic bank account will be a transactional bank account with simplified onboarding processes to support people who currently struggle to meet legal identification requirements.

    “Our final market study report into personal banking services recommended that the sector works together to make basic bank accounts widely available. It’s encouraging to see the issues paper published today and we encourage all stakeholders to have their say over the course of the next eight weeks,” Dr John Small, Chair of the Commerce Commission, says.  

    More information

    MIL OSI New Zealand News –

  • MIL-OSI USA: WSGS and USGS collaborate on new airborne mineral survey in southeastern Wyoming

    Source: US Geological Survey

    Editor: In the public interest and in accordance with Federal Aviation Administration regulations, the USGS is announcing this low-level airborne project. Your assistance in informing the local communities is appreciated. 

    Focused on the Shirley Mountains and Hartville Uplift areas—regions known for mineralization but limited by existing geophysical data—the survey aims to improve understanding of subsurface geology and better target areas of critical mineral interest for future mapping and research.

    “Baseline, high-quality geophysical data have become essential for modern geologic investigations,” said Erin Campbell, WSGS Director and Wyoming State Geologist. “These surveys help identify hidden structures and features that could point to valuable resources and guide ongoing research across Wyoming’s mineral-rich terrains.”

    “WSGS is a key partner as USGS leads national efforts to map the critical minerals needed to drive the U.S. economy and national security, and expand our knowledge of the nation’s geologic framework. Wyoming produced $622 million in nonfuel mineral commodities in 2024, eighth-most in the nation. Expanding knowledge of the state’s subsurface geology could grow the state’s mining sector,” said Jamey Jones, science coordinator of the USGS Earth Mapping Resources Initiative.

    The survey will acquire both magnetic and radiometric data across two regions. The western block includes Pathfinder Reservoir, the Shirley and Freezout mountains, and the western part of Casper Mountain. The eastern block covers the Hartville Uplift, stretching from near Wheatland to north of Lusk.

    Mineral commodities of interest for the survey include cobalt, nickel, rare earth elements, platinum group elements, and graphite, all on the List of Critical Minerals maintained by the USGS as essential to the U.S. economy and national security, and vulnerable to supply chain disruption. Uranium and a wide range of other strategic materials are also present. The data may also help resolve open questions about regional tectonics and the evolution of major structural features through the Miocene.

    “More than 30 percent of the state’s biennium budget is derived from mineral severance tax and federal mineral royalties, according to the January 2025 Consensus Revenue Estimating Group’s forecast for Wyoming revenue,” said Campbell. “Wyoming has taken a proactive approach to ensure future investment from the mineral industry. With the completion of this and other ongoing geophysical surveys, more than 20 percent of Wyoming, or 19,300 square miles, will be covered by the highest-quality magnetic and radiometric data, which will galvanize mineral exploration.”

    Survey aircraft—both helicopters and fixed-wing planes—will collect data along closely spaced flight lines at a nominal elevation of about 300 feet (100 meters). The magnetic component of the survey detects variations in the Earth’s magnetic field that reveal subsurface structures up to a kilometer deep, or about 3,000 feet. Radiometric sensors measure natural radiation to help map the distribution of potassium, thorium, and uranium near the surface.

    The survey will use aircraft equipped with an elongated “stinger” mounted to either the tail extending backward off the aircraft (fixed wing), or landing skid (helicopter) extending forward off the aircraft. The scientific instruments on the aircraft are completely passive, with no emissions that pose a risk to humans, animals, or plant life. No photography or video data will be collected.  The data collected will be made freely available to the public once complete. The aircraft will be flown by experienced pilots who are specially trained and approved for low-level flying. The company contracted to fly the survey works with the FAA to ensure flights are safe and in accordance with U.S. law. The surveys will be conducted during daylight hours only.

    This new dataset will bridge existing geophysical surveys in the Laramie Mountains, South Pass–Granite Mountains, Sierra Madre, and Medicine Bow Mountains. It will also provide insight into complex geologic features along the Cheyenne Belt—a key boundary between the Archean Wyoming Province and younger Proterozoic rocks—long recognized for its mineral potential.

    “These regions host a variety of mineral systems, including mafic magmatic, polymetallic, and rare earth element deposits,” said Patty Webber, a geologist with the WSGS. “With the addition of high-resolution geophysics, we can begin to better understand the full scope of resource potential across this structurally complex corridor.”

    Following data acquisition, the WSGS and its partners will analyze and interpret the results in combination with field mapping, subsurface modeling, and other techniques to better assess mineral potential and geologic history.

    Earth MRI is a nationwide partnership between the USGS and state geological surveys aimed at mapping critical minerals, and modernizing geologic data with benefits for hazard reduction and water availability. The program has supported multiple airborne geophysical efforts in Wyoming in recent years.

    To learn more about Earth MRI efforts in Wyoming and across the U.S., visit the Earth MRI Acquisitions Viewer

    Figure 2:  Fixed wing survey aircraft to be flown at low altitudes over Area A.  Courtesy Precision GeoSurveys Inc.
    Figure 3:  Helicopter survey aircraft to be flown at low altitudes over Area B.  Courtesy Precision GeoSurveys Inc.

    MIL OSI USA News –

  • MIL-OSI: Timberland Bancorp Reports Second Fiscal Quarter Net Income of $6.76 Million

    Source: GlobeNewswire (MIL-OSI)

    • Quarterly EPS Increases 21% to $0.85 from $0.70 One Year Ago
    • Quarterly Net Interest Margin Increases to 3.79%
    • Quarterly Return on Average Assets of 1.43%
    • Quarterly Return on Average Equity of 10.95%
    • Announces a 4% Increase in the Quarterly Cash Dividend

    HOQUIAM, Wash., April 22, 2025 (GLOBE NEWSWIRE) — Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $6.76 million, or $0.85 per diluted common share for the quarter ended March 31, 2025. This compares to net income of $6.86 million, or $0.86 per diluted common share for the preceding quarter and $5.71 million, or $0.70 per diluted common share, for the comparable quarter one year ago.

    For the first six months of fiscal 2025, Timberland’s net income increased 13% to $13.62 million, or $1.71 per diluted common share, from $12.00 million, or $1.47 per diluted common share for the first six months of fiscal 2024.

    “Our second fiscal quarter operating results were strong, highlighted by net interest margin expansion and modest balance sheet growth,” stated Dean Brydon, Chief Executive Officer. “Second fiscal quarter net income and earnings per share increased 18% and 21%, respectively, compared to the second fiscal quarter a year ago, reflecting an improvement in our net interest margin. Compared to the prior quarter, net income and earnings per share decreased 2% and 1%, respectively, as the increase in net interest income was offset by a higher provision for credit losses and a modest increase in expenses. All profitability metrics improved compared to the year ago quarter, and tangible book value per share (non-GAAP) continued to trend upward.”

    “As a result of Timberland’s solid earnings and strong capital position, our Board of Directors announced a 4% increase to the quarterly cash dividend to shareholders to $0.26 per share, payable on May 23, 2025, to shareholders of record on May 9, 2025,” stated Jonathan Fischer, President and Chief Operating Officer. “This represents the 50th consecutive quarter Timberland will have paid a cash dividend.”

    “During the second fiscal quarter our net interest margin continued to improve, expanding 15 basis points to 3.79%, compared to the preceding quarter,” said Marci Basich, Chief Financial Officer. “The improvement was primarily driven by a reduction in funding costs as the weighted average cost of interest-bearing liabilities decreased by 15 basis points during the quarter. Total deposits increased $20 million, or 1% during the quarter, due to increases in checking and certificates of deposit account balances.”

    “The loan portfolio continues to grow at a moderate pace, increasing 1% from the prior quarter and 4% year-over year,” Brydon continued. “We continue to monitor credit quality closely and saw improvements in several metrics during the quarter. The non-performing asset ratio improved to just 13 basis points, non-accrual loans decreased by 15%, and net charge-offs were less than $1,000 during the quarter. However, we experienced an increase in loans graded “Substandard”, as two loans related to one borrowing relationship were downgraded. Both of the loans are performing and Timberland remains well collateralized based on recent appraisals, but the loans were downgraded primarily because the borrower is experiencing a legal issue stemming from an unrelated project. We view this as an isolated event, and remain encouraged by the overall strength of our loan portfolio.”

    Earnings and Balance Sheet Highlights (at or for the periods ended March 31, 2025, compared to March 31, 2024, or December 31, 2024):

    Earnings Highlights:

    • Earnings per diluted common share (“EPS”) decreased 1% to $0.85 for the current quarter from $0.86 for the preceding quarter and increased 21% from $0.70 for the comparable quarter one year ago; EPS increased 16% to $1.71 for the first six months of fiscal 2025 from $1.47 for the first six months of fiscal 2024;
    • Net income decreased 2% to $6.76 million for the current quarter from $6.86 million for the preceding quarter and increased 18% from $5.71 million for the comparable quarter one year ago; Net income increased 13% to $13.62 million for the first six months of fiscal 2025 from $12.00 million for the first six months of fiscal 2024;
    • Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 10.95% and 1.43%, respectively;
    • Net interest margin (“NIM”) for the current quarter expanded to 3.79% from 3.64% for the preceding quarter and 3.48% for the comparable quarter one year ago; and
    • The efficiency ratio for the current quarter improved to 56.25% from 56.27% for the preceding quarter and 60.22% for the comparable quarter one year ago.

    Balance Sheet Highlights:

    • Total assets increased 1% from the prior quarter and increased 1% year-over-year;
    • Net loans receivable increased 1% from the prior quarter and increased 4% year-over-year;
    • Total deposits increased 1% from the prior quarter and increased 1% year-over-year;
    • Total shareholders’ equity increased 1% from the prior quarter and increased 6% year-over-year; 61,764 shares of common stock were repurchased during the current quarter for $1.91 million;
    • Non-performing assets to total assets ratio improved to 0.13% at March 31, 2025 compared to 0.16% at December 31, 2024 and 0.19% at March 31, 2024;
    • Book and tangible book (non-GAAP) values per common share increased to $31.95 and $29.99, respectively, at March 31, 2025; and
    • Liquidity (both on-balance sheet and off-balance sheet) remained strong at March 31, 2025 with only $20 million in borrowings and additional secured borrowing line capacity of $675 million available through the Federal Home Loan Bank (“FHLB”) and the Federal Reserve.

    Operating Results

    Operating revenue (net interest income before the provision for credit losses plus non-interest income) for the current quarter increased 1% to $19.90 million from $19.67 million for the preceding quarter and increased 9% from $18.25 million for the comparable quarter one year ago. The increase in operating revenue compared to the preceding quarter was primarily due to a decrease in funding costs, which was partially offset by a decrease in total interest and dividend income. Operating revenue increased 7%, to $39.57 million for the first six months of fiscal 2025 from $37.05 million for the first six months of fiscal 2024, primarily due to increases in interest income from loans and interest-bearing deposits in banks, which was partially offset by an increase in funding costs and a decrease in interest income on investment securities.

    Net interest income increased $243,000, or 1%, to $17.21 million for the current quarter from $16.97 million for the preceding quarter and increased $1.58 million, or 10%, from $15.64 million for the comparable quarter one year ago. The increase in net interest income compared to the preceding quarter was primarily due to a 15 basis point decrease in the weighted average cost of total interest-bearing liabilities to 2.47% from 2.62% and a six basis point increase in the weighted average yield on total interest-earning assets to 5.48% from 5.42%. These increases to net interest income were partially offset by an $11.44 million decrease in the average balance of total interest-earning assets.   Timberland’s NIM for the current quarter expanded to 3.79% from 3.64% for the preceding quarter and 3.48% for the comparable quarter one year ago.   The NIM for the current quarter was increased by approximately five basis points due to the collection of $201,000 in pre-payment penalties, non-accrual interest, and late fees and the accretion of $17,000 of the fair value discount on acquired loans.   The NIM for the preceding quarter was increased by approximately three basis points due to the collection of $115,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $8,000 of the fair value discount on acquired loans.   The NIM for the comparable quarter one year ago was increased by approximately three basis points due to the collection of $90,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $10,000 of the fair value discount on acquired loans. Net interest income for the first six months of fiscal 2025 increased $2.54 million, or 8%, to $34.18 million from $31.64 million for the first six months of fiscal 2024, primarily due to a $55.11 million increase in the average balance of total interest-earning assets and a 34 basis point increase in the weighted average yield of total interest-earning assets to 5.44% from 5.10%. These increases to net interest income were partially offset by an 18 basis point increase in the weighted average cost of interest-bearing liabilities to 2.55% from 2.37%. Timberland’s NIM expanded to 3.71% for the first six months of fiscal 2025 from 3.53% for the first six months of fiscal 2024.

    A $237,000 provision for credit losses on loans was recorded for the quarter ended March 31, 2025. The provision was primarily due to loan portfolio growth and changes in the composition of the loan portfolio. This compares to a $52,000 provision for credit losses on loans for the preceding quarter and a $166,000 provision for credit losses on loans for the comparable quarter one year ago. In addition, a $14,000 provision for credit losses on unfunded commitments and a $5,000 recapture of credit losses on investment securities were recorded for the current quarter.  

    Non-interest income decreased $10,000, (less than 1%) to $2.69 million for the current quarter from $2.70 million for the preceding quarter and increased $72,000, or 3%, from $2.62 million for the comparable quarter one year ago. The decrease in non-interest income compared to the preceding quarter was primarily due to a decrease in ATM and debit card interchange transaction fees and smaller changes in several other categories, which was partially offset by an increase in gain on sales of loans and smaller changes in several other categories. Fiscal year-to-date non-interest income decreased by 1%, to $5.38 million from $5.41 million for the first six months of fiscal 2024.

    Total operating (non-interest) expenses for the current quarter increased $127,000, or 1%, to $11.19 million from $11.07 million for the preceding quarter and increased $203,000, or 2%, from $10.99 million for the comparable quarter one year ago.   The increase in operating expenses compared to the preceding quarter was primarily due to increases in premises and equipment expenses, professional fees and smaller increases in several other expense categories. These increases were partially offset by decreases in salaries and employee benefits and smaller decreases in several other expense categories. The efficiency ratio for the current quarter was 56.25% compared to 56.27% for the preceding quarter and 60.22% for the comparable quarter one year ago. Fiscal year-to-date operating expenses increased 3% to $22.26 million from $21.62 million for the first six months of fiscal 2024.

    The provision for income taxes for the current quarter decreased $8,000, or less than 1%, to $1.71 million from $1.71 million for the preceding quarter, primarily due to lower taxable income. Timberland’s effective income tax rate was 20.2% for the quarter ended March 31, 2025, compared to 20.0% for the quarter ended December 31, 2024 and 20.5% for the quarter ended March 31, 2024. Timberland’s effective income tax rate was 20.1% for the first six months of fiscal 2025 and fiscal 2024.

    Balance Sheet Management

    Total assets increased $23.25 million, or 1%, during the quarter to $1.93 billion at March 31, 2025 from $1.91 billion at December 31, 2024 and increased $25.50 million, or 1%, from $1.91 billion one year ago.   The increase during the current quarter was primarily due to a $27.14 million increase in total cash and cash equivalents, an $8.26 million increase in net loans receivable and smaller increases in several other categories. These increases were partially offset by a $7.42 million decrease in investment securities and smaller decreases in several other categories.

    Liquidity

    Timberland has continued to maintain a strong liquidity position, both on-balance sheet and off-balance sheet. Liquidity, as measured by the sum of cash and cash equivalents, CDs held for investment, and available for sale investment securities, was 16.9% of total liabilities at March 31, 2025, compared to 15.0% at December 31, 2024, and 15.2% one year ago. Timberland had secured borrowing line capacity of $675 million available through the FHLB and the Federal Reserve at March 31, 2025. With a strong and diversified deposit base, only 18% of Timberland’s deposits were uninsured or uncollateralized at March 31, 2025. (Note: This calculation excludes public deposits that are fully collateralized.)

    Loans

    Net loans receivable increased $8.26 million, or 1%, during the quarter to $1.42 billion at March 31, 2025 from $1.41 billion at December 31, 2024. This increase was primarily due to a $10.31 million decrease in the undisbursed portion of construction loans in process, an $8.98 million increase in one- to four-family loans and a $5.19 million increase in commercial real estate loans. These increases were partially offset by a $12.57 million decrease in construction loans and smaller decreases in several other loan categories.

    Loan Portfolio
    ($ in thousands)
     
      March 31, 2025   December 31, 2024   March 31, 2024
      Amount   Percent   Amount   Percent   Amount   Percent
    Mortgage loans:                      
    One- to four-family (a) $ 315,421     21%   $ 306,443     20%   $ 276,433     19%
    Multi-family   178,590     12     177,861     12     167,275     12
    Commercial   602,248     40     597,054     39     577,373     40
    Construction – custom and                      
    owner/builder   114,401     7     124,104     8     122,988     8
    Construction – speculative one-to four-family   9,791     1     8,887     1     16,407     1
    Construction – commercial   22,352     1     22,841     2     32,318     2
    Construction – multi-family   46,602     3     48,940     3     36,795     3
    Construction – land                      
    development   15,032     1     15,977     1     16,051     1
    Land   32,301     2     30,538     2     31,821     2
    Total mortgage loans   1,336,738     88     1,332,645     88     1,277,461     88
                           
    Consumer loans:                      
    Home equity and second                      
    mortgage   47,458     3     48,851     3     42,357     3
    Other   2,375     —     2,889     —     2,925     —
    Total consumer loans   49,833     3     51,740     3     45,282     3
                           
    Commercial loans:                      
    Commercial business loans   131,243     9     135,312     9     135,505     9
    SBA PPP loans   156     —     204     —     367     —
    Total commercial loans   131,399     9     135,516     9     135,872     9
    Total loans   1,517,970     100%     1,519,901     100%     1,458,615     100%
    Less:                      
    Undisbursed portion of                      
    construction loans in                      
    process   (75,042 )         (85,350 )         (77,502 )    
    Deferred loan origination                      
    fees   (5,329 )         (5,444 )         (5,179 )    
    Allowance for credit losses   (17,525 )         (17,288 )         (16,818 )    
    Total loans receivable, net $ 1,420,074         $ 1,411,819         $ 1,359,116      
                                       

    _______________________
    (a)  Does not include one- to four-family loans held for sale totaling $1,151, $411, and $1,311 at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.  

    The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of March 31, 2025:

    CRE Loan Portfolio Breakdown by Collateral
    ($ in thousands)
     
    Collateral Type   Balance   Percent of
    CRE
    Portfolio    		   Percent of
    Total Loan
    Portfolio    		   Average
    Balance Per
    Loan    		   Non-
    Accrual
    Industrial warehouse   $ 127,898   21%   8%   $ 1,255   $ 163
    Medical/dental offices     84,013   14   5     1,254     —
    Office buildings     68,239   11   5     784     —
    Other retail buildings     53,121   9   3     553     —
    Mini-storage     32,596   5   2     1,358     —
    Hotel/motel     31,967   5   2     2,664     —
    Restaurants     27,374   5   2     582     161
    Gas stations/conv. stores     24,622   4   2     1,026     —
    Churches     14,823   3   1     988     —
    Nursing homes     13,606   2   1     2,268     —
    Shopping centers     10,578   2   1     1,762     —
    Mobile home parks     8,968   2   1     448     —
    Additional CRE     104,443   17   7     762     —
    Total CRE   $ 602,248   100%   40%   $ 938   $ 324
                               

    Timberland originated $56.76 million in loans during the quarter ended March 31, 2025, compared to $72.07 million for the preceding quarter and $39.37 million for the comparable quarter one year ago. Timberland continues to originate fixed-rate one- to four-family mortgage loans, a portion of which are sold into the secondary market for asset-liability management purposes and to generate non-interest income.   During the current quarter, fixed-rate one- to four-family mortgage loans totaling $5.17 million were sold compared to $2.31 million for the preceding quarter and $2.28 million for the comparable quarter one year ago.

    Investment Securities
            
    Timberland’s investment securities and CDs held for investment decreased $6.17 million, or 3%, to $235.33 million at March 31, 2025, from $241.50 million at December 31, 2024. The decrease was primarily due to maturities of U.S. Treasury investment securities (classified as held to maturity) and scheduled amortization. Partially offsetting these decreases, was the purchase of additional U.S. government agency mortgage-backed investment securities and U.S. Treasury investment securities, all of which were classified as available for sale.

    Deposits

    Total deposits increased $20.41 million, or 1%, during the quarter to $1.65 billion at March 31, 2025, from $1.63 billion at December 31, 2024. The quarter’s increase consisted of a $15.45 million increase in certificates of deposit account balances, a $9.91 million increase in NOW checking account balances, a $4.90 million increase in non-interest bearing account balances, and a $1.01 million increase in savings account balances. These decreases were partially offset by a $10.86 million decrease in money market account balances.

    Deposit Breakdown
    ($ in thousands)
     
      March 31, 2025   December 31, 2024   March 31, 2024
      Amount    Percent   Amount    Percent   Amount   Percent
    Non-interest-bearing demand $ 407,811     25%   $ 402,911     25%   $ 424,906   26%
    NOW checking   333,325     20     323,412     20     336,621   20
    Savings   207,857     13     206,845     13     211,085   13
    Money market   300,552     18     311,413     19     311,994   19
    Certificates of deposit under $250   227,137     14     212,764     13     190,762   12
    Certificates of deposit $250 and over   124,009     7     122,997     7     118,698   7
    Certificates of deposit – brokered   50,139     3     50,074     3     44,488   3
    Total deposits $ 1,650,830     100%   $ 1,630,416     100%   $ 1,638,554   100%
                                     

    Borrowings

    Total borrowings were $20.00 million at both March 31, 2025 and December 31, 2024. At March 31, 2025, the weighted average rate on the borrowings was 3.97%.

    Shareholders’ Equity and Capital Ratios

    Total shareholders’ equity increased $3.32 million, or 1%, to $252.52 million at March 31, 2025, from $249.20 million at December 31, 2024, and increased $13.84 million, or 6%, from $238.68 million at March 31, 2024.   The quarter’s increase in shareholders’ equity was primarily due to net income of $6.76 million, which was partially offset by the payment of $1.99 million in dividends to shareholders and the repurchase of 61,764 shares of common stock for $1.91 million (an average price of $30.85 per share). There were 65,995 shares available to be repurchased in accordance with the terms of its existing stock repurchase plan at March 31, 2025.

    Timberland remains well capitalized with a total risk-based capital ratio of 20.29%, a Tier 1 leverage capital ratio of 12.55%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.36%, and a shareholders’ equity to total assets ratio of 13.07% at March 31, 2025.   Timberland’s held to maturity investment securities were $140.95 million at March 31, 2025, with a net unrealized loss of $6.62 million (pre-tax). Although not permitted by U.S. Generally Accepted Accounting Principles (“GAAP”), including these unrealized losses in accumulated other comprehensive income (loss) (“AOCI”) would result in a ratio of shareholders’ equity to total assets of 12.83%, compared to 13.07%, as reported.

    Asset Quality

    Timberland’s non-performing assets to total assets ratio improved to 0.13% at March 31, 2025, compared to 0.16% at December 31, 2024 and 0.19% at March 31, 2024.   Net charge-offs totaled less than $1,000 for the current quarter compared to net charge-offs of $242,000 for the preceding quarter and net charge-offs of $3,000 for the comparable quarter one year ago. During the current quarter, provisions for credit losses of $237,000 on loans and $14,000 unfunded commitments were made, which was partially offset by a $5,000 recapture of credit losses on investment securities. The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.22% at March 31, 2025, compared to 1.21% at December 31, 2024 and 1.22% one year ago.

    Total delinquent loans (past due 30 days or more) and non-accrual loans decreased $697,000 or 17%, to $3.32 million at March 31, 2025, from $4.02 million at December 31, 2024 and decreased $879,000, or 21%, from $4.20 million at March 31, 2024. Non-accrual loans decreased $406,000, or 15%, to $2.33 million at March 31, 2025 from $2.73 million at December 31, 2024 and decreased $1.28 million, or 35%, from $3.61 million at March 31, 2024.   The quarterly decrease in non-accrual loans was primarily due to decreases in commercial business loans and commercial real estate loans on non-accrual status. Loans graded “Substandard”, however, increased to $23.51 million at March 31, 2025 from $2.12 million at December 31, 2024 and $8.42 million at March 31, 2024. The increase in loans graded “Substandard” was primarily a result of two loans (totaling $21.30 million) to one borrowing relationship being downgraded during the March 31, 2025 quarter. Both of these loans are performing and Timberland remains well collateralized (based on recent appraisals), but the loans were downgraded primarily because the borrower is experiencing a legal issue stemming from an unrelated project.   

    Non-Accrual Loans
    ($ in thousands)
     
      March 31, 2025   December 31, 2024   March 31, 2024
      Amount   Quantity   Amount   Quantity   Amount   Quantity
    Mortgage loans:                      
    One- to four-family $ 47   1   $ 47   1   $ 380   3
    Commercial   324   3     698   5     1,149   3
    Construction – custom and                      
    owner/builder   —   —     —   —     152   1
    Total mortgage loans   371   4     745   6     1,681   7
                           
    Consumer loans:                      
    Home equity and second                      
    mortgage   575   3     587   3     165   1
    Other   —   —     —   —     —   —
    Total consumer loans   575   3     587   3     165   1
                           
    Commercial business loans   1,381   11     1,401   11     1,759   6
    Total loans $ 2,327   18   $ 2,733   20   $ 3,605   14
                                 

    Timberland had two properties classified as other real estate owned (“OREO”) at March 31, 2025:

      March 31, 2025   December 31, 2024   March 31, 2024
      Amount   Quantity   Amount   Quantity   Amount   Quantity
    Other real estate owned:                      
    Commercial $ 221   1   $ 221   1   $ —   —
    Land   —   1     —   1     —   1
    Total mortgage loans $ 221   2   $ 221   2   $ —   1
                                 

    About Timberland Bancorp, Inc.
    Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank. The Bank opened for business in 1915 and primarily serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 23 branches (including its main office in Hoquiam).    

    Disclaimer

    Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. Forward-looking statements are not statements of historical fact, are based on certain assumptions and often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth; continuing elevated levels of inflation and the impact of current and future monetary policies of the Board of Governors of the Federal Reserve System (“Federal Reserve”) in response thereto; the effects of any federal government shutdown; credit risks of lending activities, including any deterioration in the housing and commercial real estate markets which may lead to increased losses and non-performing loans in our loan portfolio resulting in our ACL not being adequate to cover actual losses and thus requiring us to materially increase our ACL through the provision for credit losses; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve and of our bank subsidiary by the Federal Deposit Insurance Corporation (“FDIC”), the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative or regulatory changes that adversely affect our business including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans in our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our business strategies; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; the quality and composition of our securities portfolio and the impact if any adverse changes in the securities markets, including on market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board (“FASB”), including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks described elsewhere in this press release and in the Company’s other reports filed with or furnished to the Securities and Exchange Commission.

    Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon management’s beliefs and assumptions at the time they are made. We do not undertake and specifically disclaim any obligation to publicly update or revise any forward-looking statements included in this press release to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur and we caution readers not to place undue reliance on any forward-looking statements. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s consolidated financial condition and results of operations as well as its stock price performance.

    TIMBERLAND BANCORP INC. AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF INCOME    		 Three Months Ended
    ($ in thousands, except per share amounts) (unaudited) March 31,   Dec. 31   March 31,
      2025   2024   2024
      Interest and dividend income          
      Loans receivable $ 20,896     $ 21,032     $ 18,909  
      Investment securities   2,003       2,138       2,246  
      Dividends from mutual funds, FHLB stock and other investments   82       86       82  
      Interest bearing deposits in banks   1,884       2,001       1,919  
      Total interest and dividend income   24,865       25,257       23,156  
                 
      Interest expense          
      Deposits   7,454       8,084       7,301  
      Borrowings   198       203       220  
      Total interest expense   7,652       8,287       7,521  
      Net interest income   17,213       16,970       15,635  
      Provision for credit losses – loans   237       52       166  
      Prov. for (recapture of) credit losses – investment securities   (5 )     (5 )     3  
      Prov. for (recapture of ) credit losses – unfunded commitments   14       (20 )     (88 )
      Net int. income after provision for (recapture of) credit losses   16,967       16,943       15,554  
                 
      Non-interest income          
      Service charges on deposits   959       999       988  
      ATM and debit card interchange transaction fees   1,176       1,267       1,212  
      Gain on sales of loans, net   122       43       41  
      Bank owned life insurance (“BOLI”) net earnings   165       167       156  
      Recoveries on investment securities, net   4       3       2  
      Other   261       218       216  
      Total non-interest income, net   2,687       2,697       2,615  
                 
      Non-interest expense          
      Salaries and employee benefits   5,977       6,092       6,024  
      Premises and equipment   1,075       950       1,081  
      Advertising   189       181       159  
      OREO and other repossessed assets, net   9       —       —  
      ATM and debit card processing   521       521       601  
      Postage and courier   142       121       145  
      State and local taxes   335       346       325  
      Professional fees   431       346       319  
      FDIC insurance   219       210       206  
      Loan administration and foreclosure   155       128       134  
      Technology and communications   1,121       1,140       1,040  
      Deposit operations   319       332       324  
      Amortization of core deposit intangible (“CDI”)   45       45       57  
      Other, net   656       655       576  
      Total non-interest expense, net   11,194       11,067       10,991  
                 
      Income before income taxes   8,460       8,573       7,178  
      Provision for income taxes   1,705       1,713       1,470  
      Net income $ 6,755     $ 6,860     $ 5,708  
                 
      Net income per common share:          
      Basic $ 0.85     $ 0.86     $ 0.71  
      Diluted   0.85       0.86       0.70  
                 
      Weighted average common shares outstanding:          
      Basic   7,937,063       7,958,275       8,081,924  
      Diluted   7,968,632       7,999,504       8,121,109  
                 
    TIMBERLAND BANCORP INC. AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF INCOME    		 Six Months Ended
    ($ in thousands, except per share amounts) (unaudited) March 31,       March 31,
      2025       2024
      Interest and dividend income          
      Loans receivable $ 41,928         $ 37,304  
      Investment securities   4,141           4,556  
      Dividends from mutual funds, FHLB stock and other investments   168           173  
      Interest bearing deposits in banks   3,885           3,618  
      Total interest and dividend income   50,122           45,651  
                 
      Interest expense          
      Deposits   15,538           13,444  
      Borrowings   402           568  
      Total interest expense   15,940           14,012  
      Net interest income   34,182           31,639  
      Provision for credit losses – loans   289           545  
      Recapture of credit losses – investment securities   (10 )         (7 )
      Recapture of credit losses – unfunded commitments   (7 )         (121 )
      Net int. income after provision for (recapture of) credit losses   33,910           31,222  
                 
      Non-interest income          
      Service charges on deposits   1,958           2,011  
      ATM and debit card interchange transaction fees   2,443           2,476  
      Gain on sales of loans, net   165           120  
      Bank owned life insurance (“BOLI”) net earnings   331           312  
      Recoveries on investment securities, net   7           7  
      Other   480           487  
      Total non-interest income, net   5,384           5,413  
                 
      Non-interest expense          
      Salaries and employee benefits   12,068           11,936  
      Premises and equipment   2,025           2,054  
      Advertising   370           345  
      OREO and other repossessed assets, net   9           —  
      ATM and debit card processing   1,043           1,216  
      Postage and courier   264           271  
      State and local taxes   680           644  
      Professional fees   777           572  
      FDIC insurance   429           416  
      Loan administration and foreclosure   283           239  
      Technology and communications   2,261           2,014  
      Deposit operations   652           644  
      Amortization of core deposit intangible (“CDI”)   90           113  
      Other, net   1,309           1,151  
      Total non-interest expense, net   22,260           21,615  
                 
      Income before income taxes   17,034           15,020  
      Provision for income taxes   3,419           3,016  
      Net income $ 13,615         $ 12,004  
                 
      Net income per common share:          
      Basic $ 1.71         $ 1.48  
      Diluted   1.71           1.47  
                 
      Weighted average common shares outstanding:          
      Basic   7,947,786           8,098,155  
      Diluted   7,984,238           8,143,701  
       
    TIMBERLAND BANCORP INC. AND SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS    		  
    ($ in thousands, except per share amounts) (unaudited) March 31,   Dec. 31,   March 31,
      2025   2024   2024
    Assets          
    Cash and due from financial institutions $ 26,010     $ 24,538     $ 22,310  
    Interest-bearing deposits in banks   165,201       139,533       158,039  
      Total cash and cash equivalents   191,211       164,071       180,349  
                 
    Certificates of deposit (“CDs”) held for investment, at cost   8,711       7,470       11,204  
    Investment securities:          
      Held to maturity, at amortized cost (net of ACL – investment securities)   140,954       156,105       211,818  
      Available for sale, at fair value   84,807       77,080       61,746  
    Investments in equity securities, at fair value   853       840       839  
    FHLB stock   2,045       2,037       2,037  
    Other investments, at cost   3,000       3,000       3,000  
    Loans held for sale   1,151       411       1,311  
                   
    Loans receivable   1,437,599       1,429,107       1,375,934  
    Less: ACL – loans   (17,525 )     (17,288 )     (16,818 )
      Net loans receivable   1,420,074       1,411,819       1,359,116  
                 
    Premises and equipment, net   21,436       21,617       21,718  
    OREO and other repossessed assets, net   221       221       —  
    BOLI   23,942       23,777       23,278  
    Accrued interest receivable   7,127       7,095       7,108  
    Goodwill   15,131       15,131       15,131  
    CDI   361       406       564  
    Loan servicing rights, net   1,051       1,195       1,717  
    Operating lease right-of-use assets   1,324       1,400       1,624  
    Other assets   9,331       15,805       4,674  
      Total assets $ 1,932,730       1,909,480     $ 1,907,234  
                 
    Liabilities and shareholders’ equity          
    Deposits: Non-interest-bearing demand $ 407,811       402,911     $ 424,906  
    Deposits: Interest-bearing   1,243,019       1,227,505       1,213,648  
      Total deposits   1,650,830       1,630,416       1,638,554  
                 
    Operating lease liabilities   1,426       1,501       1,723  
    FHLB borrowings   20,000       20,000       20,000  
    Other liabilities and accrued expenses   7,950       8,364       8,278  
      Total liabilities   1,680,206       1,660,281       1,668,555  
               
    Shareholders’ equity          
    Common stock, $.01 par value; 50,000,000 shares authorized;                      
    7,903,489 shares issued and outstanding – March 31, 2025                      
    7,954,673 shares issued and outstanding – December 31, 2024                      
    8,023,121shares issued and outstanding – March 31, 2024   28,028       29,593       32,338  
    Retained earnings   225,166       220,398       207,086  
    Accumulated other comprehensive loss   (670 )     (792 )     (745 )
      Total shareholders’ equity   252,524       249,199       238,679  
      Total liabilities and shareholders’ equity $ 1,932,730       1,909,480     $ 1,907,234  
                             
      Three Months Ended
    PERFORMANCE RATIOS: March 31, 2025   Dec. 31, 2024   March 31, 2024
    Return on average assets (a)   1.43 %     1.41 %     1.22 %
    Return on average equity (a)   10.95 %     11.03 %     9.67 %
    Net interest margin (a)   3.79 %     3.64 %     3.48 %
    Efficiency ratio   56.25 %     56.27 %     60.22 %
               
      Six Months Ended
      March 31, 2025       March 31, 2024
    Return on average assets (a)   1.42 %         1.28 %
    Return on average equity (a)   10.99 %         10.18 %
    Net interest margin (a)   3.71 %         3.53 %
    Efficiency ratio   56.26 %         58.34 %
               
      Three Months Ended
    ASSET QUALITY RATIOS AND DATA: ($ in thousands) March 31, 2025   Dec. 31, 2024   March 31, 2024
    Non-accrual loans $ 2,327     $ 2,733     $ 3,605  
    Loans past due 90 days and still accruing   —       —       —  
    Non-performing investment securities   41       45       79  
    OREO and other repossessed assets   221       221       —  
    Total non-performing assets (b) $ 2,589     $ 2,999     $ 3,684  
               
    Non-performing assets to total assets (b)   0.13 %     0.16 %     0.19 %
    Net charge-offs during quarter $ —     $ 242     $ 3  
    Allowance for credit losses – loans to non-accrual loans   753 %     633 %     467 %
    Allowance for credit losses – loans to loans receivable (c)   1.22 %     1.21 %     1.22 %
               
               
    CAPITAL RATIOS:          
    Tier 1 leverage capital   12.55 %     12.32 %     12.01 %
    Tier 1 risk-based capital   19.04 %     18.69 %     18.08 %
    Common equity Tier 1 risk-based capital   19.04 %     18.69 %     18.08 %
    Total risk-based capital   20.29 %     19.95 %     19.33 %
    Tangible common equity to tangible assets (non-GAAP)   12.36 %     12.34 %     11.79 %
               
    BOOK VALUES:          
    Book value per common share $ 31.95     $ 31.33     $ 29.75  
    Tangible book value per common share (d)   29.99       29.37       27.79  

    ________________________________________________

    (a) Annualized
    (b) Non-performing assets include non-accrual loans, loans past due 90 days and still accruing, non-performing investment securities and OREO and other repossessed assets.
    (c) Does not include loans held for sale and is before the allowance for credit losses.
    (d) Tangible common equity divided by common shares outstanding (non-GAAP).                                

    AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
    ($ in thousands)
    (unaudited)

      For the Three Months Ended 
      March 31, 2025    December 31, 2024    March 31, 2024 
      Amount   Rate   Amount   Rate   Amount   Rate
                           
    Assets                      
    Loans receivable and loans held for sale $ 1,435,999     5.90 %   $ 1,438,144     5.80 %   $ 1,365,417     5.57 %
    Investment securities and FHLB stock (1)   232,532     3.64       247,236     3.57             298,003     3.14  
                                             
    Interest-earning deposits in banks and CDs   172,175     4.44       166,764     4.76       143,121     5.39  
    Total interest-earning assets   1,840,706     5.48       1,852,144     5.42            1,806,541     5.16  
    Other assets   77,563           75,534           81,337      
    Total assets $ 1,918,269         $ 1,927,678         $ 1,887,878      
                           
    Liabilities and Shareholders’ Equity                      
    NOW checking accounts $ 328,115     1.32 %   $ 328,455     1.38 %   $ 367,924     1.61 %
    Money market accounts   306,137     3.18       324,424     3.42       270,623     3.14  
    Savings accounts   206,054     0.28       205,650     0.28       214,233     0.23  
    Certificates of deposit accounts   343,945     3.82       331,785     4.09       295,202     4.16  
    Brokered CDs   50,104     4.85       46,414     4.98       40,402     5.40  
    Total interest-bearing deposits   1,234,355     2.45       1,236,728     2.59       1,188,384     2.47  
    Borrowings   20,000     4.04       20,000     4.03       20,001     4.42  
    Total interest-bearing liabilities   1,254,355     2.47       1,256,728     2.62       1,208,385     2.50  
                           
    Non-interest-bearing demand deposits   403,738           414,149           431,826      
    Other liabilities   10,064           10,146           10,182      
    Shareholders’ equity   250,112           246,655           237,485      
    Total liabilities and shareholders’ equity $ 1,918,269         $ 1,927,678         $ 1,887,878      
                           
    Interest rate spread     3.01 %       2.80 %       2.66 %
    Net interest margin (2)     3.79 %       3.64 %       3.48 %
    Average interest-earning assets to                      
    average interest-bearing liabilities   146.75 %         147.38 %         149.50 %    
                                       

    _____________________________________
    (1) Includes other investments
    (2) Net interest margin = annualized net interest income / average interest-earning assets
            

    AVERAGE BALANCES, YIELDS, AND RATES
    ($ in thousands)
    (unaudited)

      For the Six Months Ended
      March 31, 2025   March 31, 2024
      Amount   Rate   Amount   Rate
                   
    Assets              
    Loans receivable and loans held for sale $ 1,437,081     5.85 %   $ 1,349,105     5.53 %
    Investment securities and FHLB stock (1)   239,966     3.60             307,636     3.08  
    Interest-earning deposits in banks and CDs   169,444     4.60       134,643     5.37  
    Total interest-earning assets        1,846,491     5.44            1,791,384     5.10  
    Other assets   76,535           81,473      
    Total assets $ 1,923,026         $ 1,872,857      
                   
    Liabilities and Shareholders’ Equity              
    NOW checking accounts $ 328,287     1.35 %   $ 372,327     1.56 %
    Money market accounts   315,381     3.31       247,656     2.78  
    Savings accounts   205,849     0.28       217,153     0.23  
    Certificates of deposit accounts   337,798     3.95       281,842     4.07  
    Brokered CDs   48,239     4.91       41,570     5.39  
    Total interest-bearing deposits   1,235,554     2.52       1,160,548     2.32  
    Borrowings   20,000     4.02       24,427     4.65  
    Total interest-bearing liabilities   1,255,554     2.55       1,184,975     2.37  
                   
    Non-interest-bearing demand deposits   409,000           440,976      
    Other liabilities   10,107           11,035      
    Shareholders’ equity   248,365           235,871      
    Total liabilities and shareholders’ equity $ 1,923,026         $ 1,872,857      
                   
    Interest rate spread     2.89 %       2.73 %
    Net interest margin (2)     3.71 %       3.53 %
    Average interest-earning assets to              
    average interest-bearing liabilities   147.07 %         151.17 %    

    _____________________________________
    (1) Includes other investments
    (2) Net interest margin = annualized net interest income / average interest-earning assets

    Non-GAAP Financial Measures
    In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. Timberland believes that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

    Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Timberland provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible common equity is calculated as shareholders’ equity less goodwill and CDI. In addition, tangible assets equal total assets less goodwill and CDI.

    The following table provides a reconciliation of ending shareholders’ equity (GAAP) to ending tangible shareholders’ equity (non-GAAP) and ending total assets (GAAP) to ending tangible assets (non-GAAP).

    ($ in thousands) March 31, 2025   December 31, 2024   March 31, 2024
               
    Shareholders’ equity $ 252,524     $ 249,199     $ 238,679  
    Less goodwill and CDI   (15,492 )     (15,537 )     (15,695 )
    Tangible common equity $ 237,032     $ 233,662     $ 222,984  
               
    Total assets $ 1,932,730     $ 1,909,480     $ 1,907,234  
    Less goodwill and CDI   (15,492 )     (15,537 )     (15,695 )
    Tangible assets $ 1,917,238     $ 1,893,943     $ 1,891,539  
                           
    Contact: Dean J. Brydon, CEO
      Jonathan A. Fischer, President & COO
      Marci A. Basich, CFO
      (360) 533-4747
      www.timberlandbank.com

    The MIL Network –

  • MIL-OSI USA: Kugler, Transmission of Monetary Policy

    Source: US State of New York Federal Reserve

    Thank you, Juan Pablo. I am delighted to be speaking at the University of Minnesota because, in many ways, this visit feels like a homecoming for me.1 I was born right here in Minneapolis, before I moved to Colombia as a young child. My parents told me so many wonderful stories about this area and the university. My father studied for his Ph.D. here at the economics department. He studied under accomplished economists, including Anne Krueger, Leo Hurwicz, John Buttrick, and Ed Foster, the latter of whom is still here as an emeritus professor. The University of Minnesota has made many contributions to the field of economics and has historically had a close relationship with the Federal Reserve Bank of Minneapolis. So you really are part of the Fed’s extended family, and it is an honor to speak with you.
    Today, I would like to speak with you about the transmission of the Fed’s monetary policy. I will discuss how monetary policy is transmitted through the economy, then touch on how I monitor its transmission, and, lastly, talk about two elements related to transmission that I evaluate when making monetary policy decisions. Those elements are the long and variable lags of monetary policy and whether its transmission is asymmetric and has changed over time. But before I delve into my primary topic, I would like to start by offering my views on the economic outlook.
    Economic OutlookThe U.S. economy has grown at a solid pace, with real gross domestic product (GDP) expanding 2.5 percent last year. Activity indicators in the first few months of this year show healthy numbers. Last week, the March retail sales release showed resilient consumption, with positive revisions for January and February numbers. However, measures of household sentiment, such as surveys from the University of Michigan, Conference Board, and Morning Consult, have shown signs of softness, albeit to varying degrees. Many survey respondents report that their views reflect trade policy concerns, though, as we have seen, the exact contours of those policies are still taking shape. Thus, GDP growth for the first quarter, which will be reported next week, may show some moderation relative to what we saw in 2024, although this moderation may be offset by increased purchases front-loading the implementation of tariffs. Financial markets have experienced increased volatility in recent weeks. If financial conditions were to tighten persistently, that could weigh on growth in the future.
    The labor market remains solid, but the pace of hiring has eased during this year. In the first quarter, U.S. employers added 152,000 jobs per month, on average, compared with a monthly pace of 168,000, on average, last year. The unemployment rate edged up last month to 4.2 percent, but it is still low and has remained near its current level since last summer. Moreover, initial jobless claims have remained stable at low levels. Those numbers are consistent with other measures indicating that the labor market is broadly in balance.
    With respect to inflation, progress has slowed since last summer, and inflation remains above the 2 percent goal. Based on the consumer price index (CPI) and producer price index (PPI) data, the 12-month change in the personal consumption expenditures (PCE) price index was estimated to have been 2.3 percent last month and 2.6 percent for the core categories, which exclude food and energy.
    I pay careful attention to two subcategories of inflation: first, core goods—which are goods outside of volatile food and energy products—and, second, nonhousing market-based services, which are based on transactions and not imputed prices, such as car maintenance and haircuts. Goods inflation was negative in most of 2024—as was the norm for several years before the pandemic—but it increased to 0.4 percent in January and February. In March, the CPI and PPI releases pointed to goods inflation decreasing to a still-positive 0.1 percent, which is better news. By contrast, nonhousing market services inflation stayed elevated through March, at an estimated 3.4 percent. That category often provides a good signal of inflationary pressures across all services. As we look ahead, while the long-run level of tariffs is still to be determined, tariffs have moved significantly higher this year. That will likely put upward pressure on prices. For instance, both survey- and market-based measures of near-term inflation expectations have moved up. Longer-term inflation expectations—those beyond the next few years—largely remain well anchored and consistent with our 2 percent inflation goal, and I hope they continue in that way.
    I am closely monitoring incoming data and the cumulative effects on both sides of our mandate from policies in four distinct areas: trade, immigration, fiscal policy, and regulation. I am also monitoring any risks to the outlook, especially upside risks on inflation or downside risks to employment. Still, I think our monetary policy is well positioned for changes in the macroeconomic environment. Thus, I will support maintaining the current policy rate for as long as these upside risks to inflation continue, while economic activity and employment remain stable. I remain committed to achieving both of our dual-mandate goals of maximum employment and stable prices.
    Overview of Monetary Policy TransmissionNow turning to the primary topic of my speech, I will first discuss how monetary policy is transmitted through the economy. In this section, I will give some examples from the recent past as a tool for explaining my arguments, but I am not intending to comment further on the latest developments in the economy.
    Understanding the transmission of monetary policy starts with understanding how the Federal Reserve uses its policy tools. The Federal Open Market Committee (FOMC) adjusts the target range for the federal funds rate, or the rate that banks pay for overnight borrowing. Setting the federal funds rate is the primary means by which the Fed adjusts the stance of monetary policy, among its range of monetary policy tools. In addition to the FOMC directly adjusting the federal funds rate, Fed policymakers’ communications about the future path of monetary policy may also result in changes to longer-term interest rates because households’ and businesses’ expectations about future policy affect the level of interest rates.
    Adjustments to the federal funds rate affect a multitude of financial conditions faced by consumers and businesses. For example, changes to the federal funds rate filter through to the interest rates lenders charge for loans to businesses and households as well as to what financial institutions pay in interest on deposits. The current and expected future path of the federal funds rate also affects asset prices, as it changes the relative attractiveness of different investments, such as stocks and real estate. Fluctuations in both interest rates and asset prices affect a household’s wealth and a corporation’s balance sheet, which can, in turn, affect the terms under which they can borrow.2 I have discussed some of the most common ways in which policy is transmitted. There are, of course, other important channels, such as exchange rates and international spillovers, that I will not discuss today. Research suggests that the channels of transmission are extensive and ever evolving.3
    Consumers and businesses make decisions based on financial conditions.4 For illustrative purposes, let’s consider a period when FOMC policymakers view it as appropriate to ease the restrictiveness of monetary policy by reducing the target range for the federal funds rate over time. The resulting lower interest rates on consumer loans elicit greater spending on goods and services, particularly on durable goods that are often financed. Lower mortgage rates can encourage renters to buy a home by reducing the monthly payment borrowers face and can encourage existing homeowners to refinance their mortgages to free up cash for other purchases. Lower interest rates can make holding equities more attractive, which raises stock prices and adds to wealth. Higher wealth tends to spur more spending, as households tend to consume at least a portion of their increased wealth. Investment projects that businesses previously believed would be marginally unprofitable become attractive because of reduced financing costs, particularly if businesses expect their sales to rise. Expecting a better macroeconomic environment and lower delinquency rates down the road, banks may loosen their lending standards on approving loans for households and businesses. All these decisions support aggregate demand and may put upward pressure on inflation.
    Of course, there are periods when policymakers see it as appropriate to increase the level of restraint placed on the economy by raising the federal funds rate over time. That may occur when policymakers are seeking to lower inflation. Then, the monetary policy effects I just described would be reversed, putting downward pressure on aggregate demand and inflation.
    Developments in Monetary Policy and Financial ConditionsLet me now discuss how I view the transmission and the stance of monetary policy during the past few quarters. To be clear, I will not discuss the developments in financial markets over the past few weeks.
    In the second half of last year, I gained greater confidence that inflation was on a sustainable path toward the FOMC’s 2 percent objective. I also wanted to preserve the strength I saw in the labor market. As a result, I supported the FOMC’s decision to decrease the target range for the federal funds rate by a total of 1 percentage point during the meetings from September through December. However, even before the Committee began to ease policy, some financial conditions started to ease. This easing can be seen in the Financial Conditions Impulse on Growth index.5 That index, developed by Federal Reserve Board staff, showed easier financial conditions from March 2024. And through January, the demand for loans by households and businesses picked up.6 In the early months of the year, financial conditions, however, remained somewhat restrictive, as borrowing costs continued to be elevated and bank credit moderately tight. Through March, interest rates on short-term small business loans had only edged down since their post-pandemic peak.7 Banks stopped tightening lending standards after nine consecutive quarters, but they left standards unchanged in January.8 These financial conditions helped to moderate aggregate demand and aid in moving inflation sustainably toward our 2 percent target.
    Details of Monetary Policy TransmissionMonitoring the financial conditions I just described is one important way I evaluate how well the Fed’s monetary policy is being transmitted to the rest of the economy. But it is not the only way. I also consider two other elements that play important roles in the transmission of our monetary policy.
    Timing MattersThe first element to evaluate is the timing with which monetary policy affects the macroeconomy. The contemporary economics literature uses a variety of statistical models to estimate the effects of what are called monetary policy “shocks.” Those are movements in the policy rate that are not explained by estimates of how monetary policy systematically responds to incoming economic and financial data and are not anticipated by the public.9 Focusing on the estimated effects of these shocks helps isolate the consequences solely coming from monetary policy actions and communications. One lesson that emerges from this research is that, broadly speaking, it turns out that Milton Friedman’s “long and variable lags” concept still holds.10 A selection of key studies on the topic estimates that it takes about one to two years for the maximum effects of policy to be observed in economic activity and inflation.11 These long lags in monetary policy affecting the economy point to why it is important for policymakers to anticipate economic conditions as best as possible and try to be proactive about understanding the effects of different shocks to the economy, so they can act quickly when needed.
    Direction of TravelThe second element to consider when making decisions related to monetary policy is whether its transmission has been equally impactful during different points in time. For example, credible evidence indicates that contractionary monetary shocks may generally decrease economic activity more strongly than expansionary shocks increase it.12 To understand these asymmetric effects, consider the following illustrative metaphor used by Marriner Eccles, who led the Fed back in the 1930s.
    Imagine a string with monetary policy at one end and the economy at the other. Employing tight monetary policy when inflation is rising is like pulling on the string to keep the economy in check—it works fairly well. But attempting to stimulate the economy with loose policy during a downturn is like trying to push on the string to move the economy—a more difficult task.
    There is evidence of this asymmetry in consumer spending on long-lasting durable goods, such as vehicles and appliances. While an easier monetary policy may lower interest rates and thus stimulate spending on durable goods in the near term, the effects of that policy may be smaller over time, as households may have already purchased durable goods.13 If a family replaces their living room furniture when rates are low, they are unlikely to need a new set of furniture a few years later and thus would not consider how current rates would change their decisions. Thus, during an easing cycle, it is reasonable to suspect that the potency of monetary policy may be somewhat diminished.
    Another example of asymmetry can be seen in the transmission of monetary policy to private lending. Board staff research documented strong growth in the period between the Global Financial Crisis and the pandemic, fueled by structural factors, such as the attractiveness of the market to borrowers and investors due to its higher customization.14 One implication of this strong growth during this past policy tightening is that monetary policy transmission to private credit markets appeared more muted relative to financing through public credit markets or bank commercial and industrial lending.
    By contrast, other factors specific to the recent period likely decreased the potency of monetary policy during the tightening cycle but may increase it during the easing cycle. When the pandemic struck and social distancing was common, many households severely curtailed spending. In addition, a historic level of government transfers boosted household income. This combination led the personal savings rate to soar.15 Recent work by Board staff suggests that these excess savings accumulated during the pandemic may have reduced the effects of tighter monetary policy over recent years.16 If households are flush with excess cash, they are less likely to respond to elevated interest rates by curtailing demand. Instead, they may have funds to avoid financing or may feel they are able to afford higher monthly payments.
    Now, some five years after the pandemic began, these excess savings are exhausted.17 This creates an environment in which monetary policy could be having its average effects on the household sector, although we should consider that the financial health of borrowers with lower credit scores has deteriorated meaningfully in recent years and credit card and auto loan delinquencies are now above pre-pandemic levels. For these households, easing monetary policy may have larger effects.
    I am closely monitoring all these possible changes in monetary policy transmission across the economy. Also, I am humbly aware that it is difficult for economists to judge the overall effect of monetary policy actions on the U.S. economy in real time.
    ConclusionTo summarize, I see inflation still running above the 2 percent target while the labor market has remained stable. But the economy is facing heightened uncertainty, with upside risks to inflation and downside risks to employment. This month, we learned that the tariff increases are significantly larger than previously expected. As a result, the economic effects of tariffs and the associated uncertainty are also likely to be larger than anticipated. It is important for monetary policymakers to broadly examine all available information, including market-based measures, surveys, and anecdotal reports, to understand what is happening in the economy as early as possible because, as I discussed, it takes time for policy to have an impact. As the direction of the economy changes, it is critical to pay close attention to real-time data and to consider the lags and asymmetries of policy transmission to ensure we respond not only to the actual movements on both sides of the mandate, but also to the risks to the economic outlook.
    As I observe the economy and consider the appropriate path of monetary policy, I am closely studying how the decisions the FOMC makes are transmitted through the economy. We have learned much about how those transmission channels work and how they may have changed in recent years, and there is much more to learn. I am confident some of that research will be done right here at the University of Minnesota. Overall, of course, when setting policy, I am guided by how best to achieve the dual-mandate goals of maximum employment and stable prices given to us by Congress because that results in the best outcomes for all Americans.
    Thank you again for such a warm welcome back to the Twin Cities.

    1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board or the Federal Open Market Committee. Return to text
    2. Such broader changes in credit conditions are called the “credit channel” of monetary policy, discussed in Ben S. Bernanke and Mark Gertler (1995), “Inside the Black Box: The Credit Channel of Monetary Policy Transmission,” Journal of Economic Perspectives, vol. 9 (Autumn), pp. 27–48. Return to text
    3. For evidence on how U.S. monetary policy affects exchange rates, see Martin Eichenbaum and Charles L. Evans (1995), “Some Empirical Evidence on the Effects of Shocks to Monetary Policy on Exchange Rates,” Quarterly Journal of Economics, vol. 110 (November), pp. 975–1009. Additionally, U.S. monetary policy also affects global financial conditions, as analyzed by Silvia Miranda-Agrippino and Hélène Rey (2020), “U.S. Monetary Policy and the Global Financial Cycle,” Review of Economic Studies, vol. 87 (November), pp. 2754–76. Return to text
    4. For evidence that financial conditions are a crucial part of the transmission of monetary policy, see Mark Gertler and Peter Karadi (2015), “Monetary Policy Surprises, Credit Costs, and Economic Activity,”  American Economic Journal: Macroeconomics, vol. 7 (January), pp. 44–76. Return to text
    5. See Andrea Ajello, Michele Cavallo, Giovanni Favara, William B. Peterman, John Schindler, and Nitish R. Sinha (2023), “A New Index to Measure U.S. Financial Conditions” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, June 30). Return to text
    6. See Board of Governors of the Federal Reserve System (2025), “The January 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices.” Return to text
    7. See survey data from the National Federation of Independent Business, available at William C. Dunkelberg and Holly Wade (2025), “Small Business Economic Trends,” March, https://www.nfib.com/wp-content/uploads/2025/04/NFIB-SBET-Report-March-2025.pdf. Return to text
    8. See Board of Governors, “The January 2025 Senior Loan Officer Opinion Survey” (note 6). Return to text
    9. For a literature review on the different ways of identifying monetary policy shocks, see V.A. Ramey (2016), “Macroeconomic Shocks and Their Propagation,” in John B. Taylor and Harald Uhlig, eds., Handbook of Macroeconomics, vol. 2 (Amsterdam: North-Holland), pp. 71–162. Return to text
    10. See Edward Nelson (2020), Milton Friedman and Economic Debate in the United States, 1932–1972, vol. 1 (Chicago: University of Chicago Press), p. 141. Return to text
    11. See the following papers: Lawrence Christiano, Martin Eichenbaum, and Charles L. Evans (1999), “Monetary Policy Shocks: What Have We Learned and to What End?” in John B. Taylor and Michael Woodford, eds., Handbook of Macroeconomics, vol. 1 (Amsterdam: North-Holland), pp. 65–148; Christina D. Romer and David H. Romer (2004), “A New Measure of Monetary Shocks: Derivation and Implications,” American Economic Review, vol. 94 (September), pp. 1055–84; Harald Uhlig (2005), “What Are the Effects of Monetary Policy on Output? Results from an Agnostic Identification Procedure,” Journal of Monetary Economics, vol. 52 (March), pp. 381–419; Jean Boivin, Michael T. Kiley, and Frederic S. Mishkin (2010), “How Has the Monetary Transmission Mechanism Evolved over Time?” in Benjamin M. Friedman and Michael Woodford, eds., Handbook of Monetary Economics, vol. 3 (Amsterdam: North-Holland), pp. 369–422; Olivier Coibion (2012), “Are the Effects of Monetary Policy Shocks Big or Small?” American Economic Journal: Macroeconomics, vol. 4 (April), pp. 1–32; Gertler and Karadi, “Monetary Policy Surprises” (see note 4); Pooyan Amir Ahmadi and Harald Uhlig (2015), “Sign Restrictions in Bayesian FAVARs with an Application to Monetary Policy Shocks (PDF),” NBER Working Papers Series 21738 (Cambridge, Mass.: National Bureau of Economic Research, November); Christiane Baumeister and James D. Hamilton (2018), “Inference in Structural Vector Autoregressions When the Identifying Assumptions Are Not Fully Believed: Re-evaluating the Role of Monetary Policy in Economic Fluctuations,” Journal of Monetary Economics, vol. 100 (December), pp. 48–65; Marek Jarociński and Peter Karadi (2020), “Deconstructing Monetary Policy Surprises—The Role of Information Shocks,” American Economic Journal: Macroeconomics, vol. 12 (April), pp. 1–43; Silvia Miranda-Agrippino and Giovanni Ricco (2021), “The Transmission of Monetary Policy Shocks,” American Economic Journal: Macroeconomics, vol. 13 (July), pp. 74–107; and Michael D. Bauer and Eric T. Swanson (2023), “A Reassessment of Monetary Policy Surprises and High-Frequency Identification,” in Martin Eichenbaum, Erik Hurst, and Jonathan A. Parker, eds., NBER Macroeconomics Annual 2022, vol. 37 (May), pp. 87–155. Return to text
    12. See, for instance, Silvana Tenreyro and Gregory Thwaites (2016), “Pushing on a String: US Monetary Policy Is Less Powerful in Recessions,” American Economic Journal: Macroeconomics, vol. 8 (October), pp. 43–74; Joshua D. Angrist, Òscar Jordà, and Guido M. Kuersteiner (2018), “Semiparametric Estimates of Monetary Policy Effects: String Theory Revisited,” Journal of Business & Economic Statistics, vol. 36 (July), pp. 371–87; and Regis Barnichon, Christian Matthes, and Tim Sablik (2017), “Are the Effects of Monetary Policy Asymmetric? (PDF)” Federal Reserve Bank of Richmond, Economic Brief, vol. 3 (March), pp. 1–4. Return to text
    13. See Alisdair McKay and Johannes F. Wieland (2021), “Lumpy Durable Consumption Demand and the Limited Ammunition of Monetary Policy,” Econometrica, vol. 89 (November), pp. 2717–49. Return to text
    14. See Ahmet Degerli and Phillip J. Monin (2024), “Private Credit Growth and Monetary Policy Transmission,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, August 2). Return to text
    15. See, for instance, Aditya Aladangady, David Cho, Laura Feiveson, and Eugenio Pinto (2022), “Excess Savings during the COVID-19 Pandemic,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, October 21); and Francois de Soyres, Dylan Moore, and Julio L. Ortiz (2023), “Accumulated Savings during the Pandemic: An International Comparison with Historical Perspective,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, June 23). Return to text
    16. See Thiago R.T. Ferreira, Nils Gornemann, and Julio L. Ortiz (forthcoming), “Household Excess Savings and the Transmission of Monetary Policy,” International Journal of Central Banking. Return to text
    17. See Hamza Abdelrahman and Luiz Edgard Oliveira (2024), “Pandemic Savings Are Gone: What’s Next for U.S. Consumers?” SF Fed Blog, Federal Reserve Bank of San Francisco, May 3. Return to text

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Pamela Bondi Hosts First Task Force Meeting to Eradicate Anti-Christian Bias in the Federal Government

    Source: US State of California

    Today, Attorney General Pamela Bondi hosted members of the President’s Cabinet at the U.S. Department of Justice for the inaugural meeting of the Task Force to Eradicate Anti-Christian Bias in the federal government. The Task Force, which was established by President Trump under Executive Order 14202, was joined by peaceful Christian Americans who were unfairly targeted by the Biden Administration for their religious beliefs.

    The witnesses included:

    Michael Farris: First Amendment Litigator and Founding President of Patrick Henry College

    • Farris spoke on behalf of Senior Pastor Gary Hamrick to discuss how Cornerstone Church was under investigation and charged by the Internal Revenue Service (IRS) for so-called Johnson Amendment violations. Farris is an elder at the church, previously led Alliance Defending Freedom, and served as counsel on this case.

    Dr. Scott Hicks: Provost and Chief Academic Officer, Liberty University

    • Hicks described how Liberty University and Grand Canyon University were singled out by the Biden Administration for fines due to the schools’ Christian worldview.

    Phil Mendes: Navy Seal

    • Mendes was relieved of duty during Biden Administration for not taking the COVID-19 vaccine due to religious exemption requests that were denied by the Department of Defense.

    “As shown by our victims’ stories today, Biden’s Department of Justice abused and targeted peaceful Christians while ignoring violent, anti-Christian offenses,” said Attorney General Pamela Bondi. “Thanks to President Trump, we have ended those abuses, and we will continue to work closely with every member of this Task Force to protect every American’s right to speak and worship freely.”

    Attorney General Pamela Bondi with members of the Eradicating Anti-Christian Bias Task Force at the U.S. Department of Justice

    Additionally, members of the Task Force highlighted specific cases within their own agencies where the Biden Administration unfairly and harshly punished Christian Americans for their religious beliefs.  

    FBI Director Kash Patel discussed the impact of the anti-Catholic memo issued by FBI Richmond and reiterated the FBI’s commitment to rooting out any anti-Christian bias that could be directing decisions or investigations.

    Secretary of State Marco Rubio raised several concerning allegations of bias, including some against Christian Foreign Service Officers who preferred to homeschool their children. In one case, a family was threatened with an investigation for child abuse and curtailment if they insisted on homeschooling. In another case, a family was referred to the IRS, threatened with prosecution, and investigated by Biden’s Inspector General for insisting they homeschool their son.

    He shared how State Department employees were stigmatized for opposing the COVID-19 vaccine mandate on religious grounds, including being called “murderers” and “troublemakers.” In one instance, an ambassador yelled at an employee, accusing the employee of wanting to kill the ambassador’s mother despite her being back in the States.

    Other reports alleged retaliation against employees for opposing DEI/LGBT ideology that violated their religious conscience. Employees recounted being required to push LGBT agendas while serving overseas, even in countries where such activity constituted a blatant violation of the acceptable religious beliefs and practices. He also detailed allegations that that religious freedom policy offices and programs were sidelined unless they were promoting DEI-related programs.

    He also highlighted how Christian holidays at American embassies under the Biden Administration were frequently stripped of any religious overtones, but non-Christian religious holidays like Losar, Eid, or Ramadan, used proper names and appropriate celebratory greetings.

    Health and Human Services Secretary Robert F. Kennedy Jr. discussed how the previous administration ordered St. Francis Health System in Oklahoma to extinguish its sanctuary candle or lose its ability to treat patients covered by Medicare, Medicaid or the Children’s Health Insurance Program. He also discussed progressive rules put in place under the Biden Administration that would make it harder for Christians to become foster parents.

    Secretary of Education Linda McMahon discussed how Oregon educators Katie Medart and Rachel Sager were suspended and terminated for starting the movement, “I Resolve.” The movement spoke about gender identity education policy and offered solutions for how educators could teach without violating their conscience and also respect the rights of parents.

    Additionally, officials at the Skaneateles Central School District in New York began treating a middle-school girl as a boy without her mother’s knowledge or consent – violating their religious liberties as parents.

    Deputy Treasury Secretary Michael Faulkender discussed financial surveillance under the Biden Administration, including the previous removal of certain tax classifications of Christian and pro-life organizations by the IRS, the lack of involvement within Treasury to protect organizations from the issue of debanking, and FinCEN’s identification of certain pro-Christian groups as “hate groups.”

    Secretary of Veterans Affairs Doug Collins discussed actions the VA took to stop the speech code that the previous administration used to punish Chaplain Trubey of the Coatesville VA Medical Center for fulfilling his duties and preaching a sermon from the Bible.

    Director of the Domestic Policy Council, Vince Haley, discussed how the previous DPC Director Neera Tanden helped lead and coordinate the Biden Administration’s efforts to push radical and anti-Christian gender ideology on kids in classrooms, foster care, sports, and healthcare.

    Additional attendees included:

    • Todd Blanche, Deputy Attorney General
    • Emil Bove, Principal Associate Deputy Attorney General
    • Stanley Woodward, Nominee to be Associate Attorney General
    • Harmeet Dhillon, Assistant Attorney General
    • Pete Hegseth, U.S. Secretary of Defense
    • Kristi Noem, U.S. Secretary of Homeland Security
    • Andrew Hughes, Chief of Staff (Dep. Sec. Nom.) at the U.S. Department of Housing and Urban Development
    • Lori Chavez DeRemer, U.S. Secretary of Labor
    • Andrea Lucas, Acting Chair of the U.S. Equal Employment Opportunity Commission
    • Cameron Hamilton, Acting Director of the Federal Emergency Management Agency
    • Dan Bishop, Deputy Director of the Office of Management and Budget
    • Kelly Loeffler, Administrator of the U.S. Small Business Administration
    • Pastor Paula White-Cain, Senior Advisor, White House Faith Office
    • Jennifer Korn, Faith Director, White House Faith Office

    Read the Eradicating Anti-Christian Bias Executive Order HERE.

    MIL OSI USA News –

  • MIL-OSI Security: Attorney General Pamela Bondi Hosts First Task Force Meeting to Eradicate Anti-Christian Bias in the Federal Government

    Source: United States Attorneys General 13

    Today, Attorney General Pamela Bondi hosted members of the President’s Cabinet at the U.S. Department of Justice for the inaugural meeting of the Task Force to Eradicate Anti-Christian Bias in the federal government. The Task Force, which was established by President Trump under Executive Order 14202, was joined by peaceful Christian Americans who were unfairly targeted by the Biden Administration for their religious beliefs.

    The witnesses included:

    Michael Farris: First Amendment Litigator and Founding President of Patrick Henry College

    • Farris spoke on behalf of Senior Pastor Gary Hamrick to discuss how Cornerstone Church was under investigation and charged by the Internal Revenue Service (IRS) for so-called Johnson Amendment violations. Farris is an elder at the church, previously led Alliance Defending Freedom, and served as counsel on this case.

    Dr. Scott Hicks: Provost and Chief Academic Officer, Liberty University

    • Hicks described how Liberty University and Grand Canyon University were singled out by the Biden Administration for fines due to the schools’ Christian worldview.

    Phil Mendes: Navy Seal

    • Mendes was relieved of duty during Biden Administration for not taking the COVID-19 vaccine due to religious exemption requests that were denied by the Department of Defense.

    “As shown by our victims’ stories today, Biden’s Department of Justice abused and targeted peaceful Christians while ignoring violent, anti-Christian offenses,” said Attorney General Pamela Bondi. “Thanks to President Trump, we have ended those abuses, and we will continue to work closely with every member of this Task Force to protect every American’s right to speak and worship freely.”

    Attorney General Pamela Bondi with members of the Eradicating Anti-Christian Bias Task Force at the U.S. Department of Justice

    Additionally, members of the Task Force highlighted specific cases within their own agencies where the Biden Administration unfairly and harshly punished Christian Americans for their religious beliefs.  

    FBI Director Kash Patel discussed the impact of the anti-Catholic memo issued by FBI Richmond and reiterated the FBI’s commitment to rooting out any anti-Christian bias that could be directing decisions or investigations.

    Secretary of State Marco Rubio raised several concerning allegations of bias, including some against Christian Foreign Service Officers who preferred to homeschool their children. In one case, a family was threatened with an investigation for child abuse and curtailment if they insisted on homeschooling. In another case, a family was referred to the IRS, threatened with prosecution, and investigated by Biden’s Inspector General for insisting they homeschool their son.

    He shared how State Department employees were stigmatized for opposing the COVID-19 vaccine mandate on religious grounds, including being called “murderers” and “troublemakers.” In one instance, an ambassador yelled at an employee, accusing the employee of wanting to kill the ambassador’s mother despite her being back in the States.

    Other reports alleged retaliation against employees for opposing DEI/LGBT ideology that violated their religious conscience. Employees recounted being required to push LGBT agendas while serving overseas, even in countries where such activity constituted a blatant violation of the acceptable religious beliefs and practices. He also detailed allegations that that religious freedom policy offices and programs were sidelined unless they were promoting DEI-related programs.

    He also highlighted how Christian holidays at American embassies under the Biden Administration were frequently stripped of any religious overtones, but non-Christian religious holidays like Losar, Eid, or Ramadan, used proper names and appropriate celebratory greetings.

    Health and Human Services Secretary Robert F. Kennedy Jr. discussed how the previous administration ordered St. Francis Health System in Oklahoma to extinguish its sanctuary candle or lose its ability to treat patients covered by Medicare, Medicaid or the Children’s Health Insurance Program. He also discussed progressive rules put in place under the Biden Administration that would make it harder for Christians to become foster parents.

    Secretary of Education Linda McMahon discussed how Oregon educators Katie Medart and Rachel Sager were suspended and terminated for starting the movement, “I Resolve.” The movement spoke about gender identity education policy and offered solutions for how educators could teach without violating their conscience and also respect the rights of parents.

    Additionally, officials at the Skaneateles Central School District in New York began treating a middle-school girl as a boy without her mother’s knowledge or consent – violating their religious liberties as parents.

    Deputy Treasury Secretary Michael Faulkender discussed financial surveillance under the Biden Administration, including the previous removal of certain tax classifications of Christian and pro-life organizations by the IRS, the lack of involvement within Treasury to protect organizations from the issue of debanking, and FinCEN’s identification of certain pro-Christian groups as “hate groups.”

    Secretary of Veterans Affairs Doug Collins discussed actions the VA took to stop the speech code that the previous administration used to punish Chaplain Trubey of the Coatesville VA Medical Center for fulfilling his duties and preaching a sermon from the Bible.

    Director of the Domestic Policy Council, Vince Haley, discussed how the previous DPC Director Neera Tanden helped lead and coordinate the Biden Administration’s efforts to push radical and anti-Christian gender ideology on kids in classrooms, foster care, sports, and healthcare.

    Additional attendees included:

    • Todd Blanche, Deputy Attorney General
    • Emil Bove, Principal Associate Deputy Attorney General
    • Stanley Woodward, Nominee to be Associate Attorney General
    • Harmeet Dhillon, Assistant Attorney General
    • Pete Hegseth, U.S. Secretary of Defense
    • Kristi Noem, U.S. Secretary of Homeland Security
    • Andrew Hughes, Chief of Staff (Dep. Sec. Nom.) at the U.S. Department of Housing and Urban Development
    • Lori Chavez DeRemer, U.S. Secretary of Labor
    • Andrea Lucas, Acting Chair of the U.S. Equal Employment Opportunity Commission
    • Cameron Hamilton, Acting Director of the Federal Emergency Management Agency
    • Dan Bishop, Deputy Director of the Office of Management and Budget
    • Kelly Loeffler, Administrator of the U.S. Small Business Administration
    • Pastor Paula White-Cain, Senior Advisor, White House Faith Office
    • Jennifer Korn, Faith Director, White House Faith Office

    Read the Eradicating Anti-Christian Bias Executive Order HERE.

    MIL Security OSI –

  • MIL-OSI Security: Chinese Nationals Sentenced to Federal Prison for Participating in a Fraudulent Gift Card Conspiracy Involving the Purchase and Export of Apple Products to China

    Source: Office of United States Attorneys

    CONCORD – Three Chinese nationals were sentenced in federal court for their roles in a sophisticated Chinese gift card fraud conspiracy, Acting U.S. Attorney Jay McCormack announces.

    Naxin Wu, 26, a Chinese national unlawfully residing in Nashua, was sentenced by Chief Judge Landya B. McCafferty to 33 months in prison and one year of supervised release.  Mengying Jiang, 34, a Chinese national residing in Nashua, was sentenced by Chief Judge McCafferty to 60 months in prison and one year of supervised release. Mingdong Chen, 28, a Chinese national unlawfully residing in Brooklyn, New York, was sentenced by Judge Joseph N. Laplante to 24 months in prison and one year of supervised release.  Earlier this year, the defendants each pleaded guilty to Conspiracy to Commit Wire Fraud.  All three defendants face deportation to China after completing their sentences.

    “The defendants played a critical role in laundering proceeds of romance and other online scams by purchasing the stolen gift cards and using them to purchase Apple products,” said Acting U.S. Attorney McCormack. “While they may not have committed the initial fraud, the defendants’ actions helped convert stolen funds into tangible goods, enabling a large-scale financial crimes conspiracy. We remain committed to dismantling every link in the fraud supply chain.”

    “These individuals were part of a Chinese transnational criminal organization that used a complex scheme to steal and launder millions of dollars through gift card theft. After a sophisticated criminal investigation with our partners, their scheme was uncovered and their crimes brought to light. Now, they’ll serve federal prison sentences and face deportation back to China,” said Special Agent in Charge of Homeland Security Investigations New England Michael J. Krol.

    “The sentences imposed in New Hampshire emphasize the expansive reach of the U.S. Postal Inspection Service when it comes to dismantling criminal organizations. Anytime a criminal uses the U.S. Mail to further their illegal activity, postal inspectors will be there to bring them to justice. I’d like to thank our law enforcement partners involved in this case who, together with postal inspectors, brought these defendants to justice. This collaboration and dedication from law enforcement professionals plays a vital role in protecting the integrity of our communities from those who seek to exploit vulnerable Americans for personal gain,” said Ketty Larco-Ward, Inspector in Charge, U.S. Postal Inspection Service – Boston Division.

    According to court documents, organized criminal elements in China acquired well over $100 million in gift cards through multiple fraudulent means. For example, gift card data is obtained by hacking U.S. companies, tampering with physical gift cards, and targeting U.S. citizens through romance and elder fraud schemes. The criminal elements then send the gift card data to multiple cells of Chinese nationals operating in the United States through a Chinese-based messaging platform in exchange for cryptocurrency.

    Once U.S.-based cells receive the gift card data, they then spend the gift cards to purchase high-value electronics, principally Apple products. After purchasing the Apple products, cell members consolidate the electronics in warehouses for shipment to China, Hong Kong, or countries in Southeast Asia. The cells primarily operate in states with no sales tax, such as New Hampshire, to maximize their profits.

    Wu, Jiang, and Chen were members of one cell in New Hampshire. Wu and Jiang purchased fraudulent gift cards at a discount from their face value. They then either personally used the cards or disseminated them to others, including Chen, to use. Wu was responsible for $1.4 million, Jiang for $3 million, and Chen for $400,000 of fraudulent gift cards.

    Homeland Security Investigations, Internal Revenue Service’s Criminal Investigations, the U.S. Postal Inspection Service, and the Concord Police Department led the investigation.  The Merrimack County Attorney’s Office provided valuable assistance. Assistant U.S. Attorney Alexander S. Chen prosecuted the case.

    This effort is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    ###

    MIL Security OSI –

  • MIL-OSI Security: L.A. Pawn Shop Owner Indicted for Allegedly Conspiring to Sell Stolen Andy Warhol Trial Proof and Lying to the FBI About Its Sale

    Source: Office of United States Attorneys

    LOS ANGELES – The owner of a pawn shop in the Mid-City area of Los Angeles was indicted today for allegedly conspiring to sell a stolen Andy Warhol print trial proof, which was shipped from the Beverly Hills office of an auction house to Dallas, then lying about it to federal agents.

    Glenn Steven Bednarsh, 58, of Farmington, Michigan and formerly of Beverly Hills, is charged in a two-count federal grand jury indictment with conspiracy and interstate transportation of stolen goods.

    He is expected to be arraigned in the coming weeks in United States District Court in downtown Los Angeles.

    According to the indictment, in February 2021, Bednarsh knowingly purchased for $6,000 a stolen Warhol trial proof depicting Russian revolutionary and Soviet Union leader Vladimir Lenin, which is worth an estimated $175,000. Bednarsh allegedly asked a co-conspirator, Brian Alec Light, 58, of Hudson, Ohio, and formerly a resident of downtown Los Angeles, to help him sell the stolen Warhol Lenin trial proof. Light then contacted the Beverly Hills of an auction house based in Dallas about selling the Warhol trial proof. 

    In March 2021, Bednarsh transported the trial proof to the Beverly Hills office of the auction house, which then shipped it to Dallas. Light e-signed an auction house consignment agreement and called the auction house to state he had dropped off the trial proof and to ask about receiving a cash advance for it.

    An employee of the auction house in Dallas reached out to the gallery in West Hollywood for its opinion of the piece, according to court documents. The gallery immediately recognized the piece as stolen, then notified the auction house and the FBI.

    Later in March 2021, when FBI agents began inquiring about the stolen Warhol trial proof, Light lied to them by saying he bought it at a Culver City garage sale for $18,000 and provided a fake receipt.

    In August and September of 2021, Bednarsh lied to FBI agents by telling them Light asked him to store the Warhol Lenin trial proof for him and that he agreed to do so out of friendship and not for financial gain. 

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

    Light pleaded guilty in November 2024 to one count of interstate transportation of stolen goods. His sentencing is currently set for May 27, and he faces up to 10 years in federal prison.

    The FBI’s Art Crime Team is investigating this matter.

    Assistant United States Attorneys Erik M. Silber of the Cyber and Intellectual Property Crimes Section and Matthew W. O’Brien of the Environmental Crime and Consumer Protection Section are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI: Waterstone Financial, Inc. Announces Results of Operations for the Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    WAUWATOSA, Wis., April 22, 2025 (GLOBE NEWSWIRE) — Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $3.0 million, or $0.17 per diluted share, for the quarter ended March 31, 2025, compared to $3.0 million, or $0.16 per diluted share, for the quarter ended March 31, 2024.

    “The Community Banking segment continues to perform well in a challenging interest rate environment,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. “We increased net interest income 6.9% at the Community Banking segment and net interest margin increased 32 bps compared to the quarter ended March 31, 2024. Asset quality continues to remain strong and low historical loan losses are reflected in the decrease in provision for credit losses during the quarter. The Mortgage Banking segment pre-tax loss reflects a market-wide decrease in loan origination volumes and elevated legal expense associated with the final settlement of a previously disclosed lawsuit. In spite of the results of the Mortgage Banking segment, Waterstone Financial, Inc. exceeded the prior year’s same quarter earnings per share, added to book value per share through our share repurchase program and maintained our strong quarterly dividend.” 

    Highlights of the Quarter Ended March 31, 2025

    Waterstone Financial, Inc. (Consolidated)

    • Consolidated net income of Waterstone Financial, Inc. totaled $3.0 million for the quarters ended March 31, 2025 and March 31, 2024.
    • Consolidated return on average assets (annualized) was 0.57% for the quarter ended March 31, 2025 and 0.56% for the quarter ended March 31, 2024.
    • Consolidated return on average equity (annualized) was 3.61% for the quarter ended March 31, 2025 and 3.56% for the quarter ended March 31, 2024.
    • Dividends declared during the quarter ended March 31, 2025 totaled $0.15 per common share.
    • During the quarter ended March 31, 2025, we repurchased approximately 237,000 shares at a cost (including the federal excise tax) of $3.2 million, or $13.37 per share.
    • Nonperforming assets as a percentage of total assets was 0.35% at March 31, 2025, 0.28% at December 31, 2024, and 0.23% at March 31, 2024.
    • Past due loans as a percentage of total loans was 0.67% at March 31, 2025, 0.95% at December 31, 2024, and 0.64% at March 31, 2024.
    • Book value per share was $17.70 at March 31, 2025 and $17.53 at December 31, 2024.

    Community Banking Segment

    • Pre-tax income totaled $6.1 million for the quarter ended March 31, 2025, which represents a $1.8 million, or 41.7%, increase compared to $4.3 million for the quarter ended March 31, 2024.
    • Net interest income totaled $12.4 million for the quarter ended March 31, 2025, which represents a $805,000, or 6.9%, increase compared to $11.6 million for the quarter ended March 31, 2024.
    • Average loans held for investment totaled $1.67 billion during the quarter ended March 31, 2025, which represents an increase of $10.7 million, or 0.6%, compared to $1.66 billion for the quarter ended March 31, 2024. The increase was primarily due to increases in the commercial real estate and multi-family mortgages. Average loans held for investment decreased $6.8 million compared to $1.68 billion for the quarter ended December 31, 2024. The decrease was primarily due to decreases in construction and multi-family mortgages.
    • Net interest margin increased 32 basis points to 2.47% for the quarter ended March 31, 2025 compared to 2.15% for the quarter ended March 31, 2024, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decrease in cost of borrowings offset by an increase in weighted average cost of deposits. Net interest margin increased five basis points compared to 2.42% for the quarter ended December 31, 2024, primarily driven by decreases in weighted average cost of deposits and borrowings.
    • Past due loans at the community banking segment totaled $7.6 million at March 31, 2025, $12.8 million at December 31, 2024, and $8.1 million at March 31, 2024.
    • The segment had a negative provision for credit losses related to funded loans of $314,000 for the quarter ended March 31, 2025 compared to a provision for credit losses related to funded loans of $35,000 for the quarter ended March 31, 2024. The current quarter decrease was primarily due to decreases in historical loss rates and loan portfolio balances offset by an increase in the commercial real estate loan qualitative factors primarily related to increases in economic risks and internal asset quality risks. The negative provision for credit losses related to unfunded loan commitments was $204,000 for the quarter ended March 31, 2025 compared to a provision for credit losses related to unfunded loan commitments of $70,000 for the quarter ended March 31, 2024. The negative provision for credit losses related to unfunded loan commitments for the quarter ended March 31, 2025 was due primarily to a decrease in construction loans that are currently waiting to be funded compared to the prior quarter end and decrease in historical loss rates.
    • The efficiency ratio, a non-GAAP ratio, was 59.66% for the quarter ended March 31, 2025, compared to 65.17% for the quarter ended March 31, 2024.
    • Average core retail deposits (excluding brokered and escrow accounts) totaled $1.28 billion during the quarter ended March 31, 2025, an increase of $87.6 million, or 7.4%, compared to $1.19 billion during the quarter ended March 31, 2024. Average deposits increased $2.9 million, or 0.9% annualized, compared to $1.27 billion for the quarter ended December 31, 2024. The increases were primarily due to an increase in certificates of deposit balances. The segment had $84.1 million in brokered certificate of deposits at March 31, 2025.

    Mortgage Banking Segment

    • Pre-tax loss totaled $2.2 million for the quarter ended March 31, 2025, compared to a $369,000 of pre-tax income for the quarter ended March 31, 2024.
    • Loan originations decreased $97.4 million, or 20.1%, to $387.7 million during the quarter ended March 31, 2025, compared to $485.1 million during the quarter ended March 31, 2024. Origination volume relative to purchase activity accounted for 87.5% of originations for the quarter ended March 31, 2025 compared to 93.0% of total originations for the quarter ended March 31, 2024.
    • Mortgage banking non-interest income decreased $4.6 million, or 22.6%, to $15.7 million for the quarter ended March 31, 2025, compared to $20.3 million for the quarter ended March 31, 2024.
    • Gross margin on loans sold totaled 3.98% for the quarter ended March 31, 2025, compared to 4.10% for the quarter ended March 31, 2024.
    • Professional fees increased $853,000, or 164.0%, to $1.4 million for the quarter ended March 31, 2025, compared to $520,000 for the quarter ended March 31, 2024. The increase was primarily related to legal services and the finalization of a settlement related to a previously disclosed legal matter during the three months ended March 31, 2025. The Company maintained a $1.3 million accrual related to this legal matter as of December 31, 2024.
    • Total compensation, payroll taxes and other employee benefits decreased $2.7 million, or 18.3%, to $12.1 million during the quarter ended March 31, 2025 compared to $14.8 million during the quarter ended March 31, 2024. The decrease primarily related to decreased commission expense, branch manager pay, salary expense, and sign-on incentives driven by reduced employee headcount and a decrease in loan origination volumes and branch profitability.

    About Waterstone Financial, Inc.
    Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, a community-focused financial institution established in 1921. WaterStone Bank offers a comprehensive suite of personal and business banking products and operates 14 branch locations across southeastern Wisconsin. WaterStone Bank is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states.

    With a long-standing commitment to innovation, integrity, and community service, Waterstone Financial, Inc. supports the financial and homeownership goals of customers nationwide.

    For more information about WaterStone Bank, visit wsbonline.com.

    Forward-Looking Statements

    This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.

    Non-GAAP Financial Measures 

    Management uses non-GAAP financial information in its analysis of the Company’s performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company’s financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently. 

    Contact: Mark R. Gerke
    Chief Financial Officer
    414-459-4012
    markgerke@wsbonline.com

    WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)    		  
        For The Three Months Ended March 31,  
        2025     2024  
        (In Thousands, except per share amounts)  
    Interest income:                
    Loans   $ 25,078     $ 24,484  
    Mortgage-related securities     1,191       1,098  
    Debt securities, federal funds sold and short-term investments     1,486       1,323  
    Total interest income     27,755       26,905  
    Interest expense:                
    Deposits     11,332       8,970  
    Borrowings     3,847       6,798  
    Total interest expense     15,179       15,768  
    Net interest income     12,576       11,137  
    Provision (credit) for credit losses     (558 )     67  
    Net interest income after provision (credit) for loan losses     13,134       11,070  
    Noninterest income:                
    Service charges on loans and deposits     593       424  
    Increase in cash surrender value of life insurance     481       348  
    Mortgage banking income     15,728       20,068  
    Other     295       408  
    Total noninterest income     17,097       21,248  
    Noninterest expenses:                
    Compensation, payroll taxes, and other employee benefits     17,047       19,876  
    Occupancy, office furniture, and equipment     1,929       2,108  
    Advertising     723       914  
    Data processing     1,212       1,206  
    Communications     235       226  
    Professional fees     1,736       743  
    Real estate owned     (10 )     13  
    Loan processing expense     920       1,046  
    Other     2,558       1,418  
    Total noninterest expenses     26,350       27,550  
    Income before income taxes     3,881       4,768  
    Income tax expense     845       1,730  
    Net income   $ 3,036     $ 3,038  
    Income per share:                
    Basic   $ 0.17     $ 0.16  
    Diluted   $ 0.17     $ 0.16  
    Weighted average shares outstanding:                
    Basic     18,267       19,021  
    Diluted     18,280       19,036  
    WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION    		  
        March 31,     December 31,  
        2025     2024  
        (Unaudited)          
    Assets   (In Thousands, except per share amounts)  
    Cash   $ 37,459     $ 35,182  
    Federal funds sold     5,550       4,302  
    Interest-earning deposits in other financial institutions and other short term investments     280       277  
    Cash and cash equivalents     43,289       39,761  
    Securities available for sale (at fair value)     213,615       208,549  
    Loans held for sale (at fair value)     116,290       135,909  
    Loans receivable     1,663,519       1,680,576  
    Less: Allowance for credit losses (“ACL”) – loans     17,905       18,247  
    Loans receivable, net     1,645,614       1,662,329  
                     
    Office properties and equipment, net     19,223       19,389  
    Federal Home Loan Bank stock (at cost)     18,351       20,295  
    Cash surrender value of life insurance     75,093       74,612  
    Real estate owned, net     135       505  
    Prepaid expenses and other assets     43,757       48,259  
    Total assets   $ 2,175,367     $ 2,209,608  
                     
    Liabilities and Shareholders’ Equity                
    Liabilities:                
    Demand deposits   $ 170,183     $ 171,115  
    Money market and savings deposits     296,203       283,243  
    Time deposits     914,814       905,539  
    Total deposits     1,381,200       1,359,897  
                     
    Borrowings     395,853       446,519  
    Advance payments by borrowers for taxes     12,628       5,630  
    Other liabilities     44,326       58,427  
    Total liabilities     1,834,007       1,870,473  
                     
    Shareholders’ equity:                
    Preferred stock     –       –  
    Common stock     193       193  
    Additional paid-in capital     90,470       91,214  
    Retained earnings     277,521       277,196  
    Unearned ESOP shares     (10,386 )     (10,682 )
    Accumulated other comprehensive loss, net of taxes     (16,438 )     (18,786 )
    Total shareholders’ equity     341,360       339,135  
    Total liabilities and shareholders’ equity   $ 2,175,367     $ 2,209,608  
                     
    Share Information                
    Shares outstanding     19,281       19,343  
    Book value per share   $ 17.70     $ 17.53  
    WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
    SUMMARY OF KEY QUARTERLY FINANCIAL DATA
    (Unaudited)    		  
        At or For the Three Months Ended  
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
        (Dollars in Thousands, except per share amounts)  
    Condensed Results of Operations:                                        
    Net interest income   $ 12,576     $ 12,835     $ 11,517     $ 10,679     $ 11,137  
    Provision (credit) for credit losses     (558 )     367       (377 )     (225 )     67  
    Total noninterest income     17,097       19,005       22,552       26,497       21,248  
    Total noninterest expense     26,350       25,267       28,560       30,259       27,550  
    Income before income taxes     3,881       6,206       5,886       7,142       4,768  
    Income tax expense     845       996       1,158       1,430       1,730  
    Net income   $ 3,036     $ 5,210     $ 4,728     $ 5,712     $ 3,038  
    Income per share – basic   $ 0.17     $ 0.28     $ 0.26     $ 0.31     $ 0.16  
    Income per share – diluted   $ 0.17     $ 0.28     $ 0.26     $ 0.31     $ 0.16  
    Dividends declared per common share   $ 0.15     $ 0.15     $ 0.15     $ 0.15     $ 0.15  
                                             
    Performance Ratios (annualized):                                        
    Return on average assets – QTD     0.57 %     0.94 %     0.83 %     1.02 %     0.56 %
    Return on average equity – QTD     3.61 %     6.05 %     5.55 %     6.84 %     3.56 %
    Net interest margin – QTD     2.47 %     2.42 %     2.13 %     2.01 %     2.15 %
                                             
    Return on average assets – YTD     0.57 %     0.84 %     0.81 %     0.79 %     0.56 %
    Return on average equity – YTD     3.61 %     5.48 %     5.30 %     5.17 %     3.56 %
    Net interest margin – YTD     2.47 %     2.17 %     2.09 %     2.08 %     2.15 %
                                             
    Asset Quality Ratios:                                        
    Past due loans to total loans     0.67 %     0.95 %     0.63 %     0.76 %     0.64 %
    Nonaccrual loans to total loans     0.45 %     0.34 %     0.32 %     0.33 %     0.29 %
    Nonperforming assets to total assets     0.35 %     0.28 %     0.25 %     0.25 %     0.23 %
    Allowance for credit losses – loans to loans receivable     1.08 %     1.09 %     1.07 %     1.10 %     1.10 %
    WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
    SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS
    (Unaudited)    		  
        At or For the Three Months Ended  
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
    Average balances   (Dollars in Thousands)  
    Interest-earning assets                                        
    Loans receivable and held for sale   $ 1,768,617     $ 1,819,574     $ 1,870,627     $ 1,859,608     $ 1,805,102  
    Mortgage related securities     170,947       168,521       170,221       171,895       172,077  
    Debt securities, federal funds sold and short term investments     123,004       124,658       115,270       107,992       110,431  
    Total interest-earning assets     2,062,568       2,112,753       2,156,118       2,139,495       2,087,610  
    Noninterest-earning assets     105,030       100,627       104,600       104,019       103,815  
    Total assets   $ 2,167,598     $ 2,213,380     $ 2,260,718     $ 2,243,514     $ 2,191,425  
                                             
    Interest-bearing liabilities                                        
    Demand accounts   $ 87,393     $ 92,247     $ 89,334     $ 91,300     $ 87,393  
    Money market, savings, and escrow accounts     300,686       306,478       304,116       293,483       281,171  
    Certificates of deposit – retail     818,612       810,340       786,228       758,252       739,543  
    Certificates of deposit – brokered     97,101       59,254       –       –       –  
    Total interest-bearing deposits     1,303,792       1,268,319       1,179,678       1,143,035       1,108,107  
    Borrowings     397,053       464,964       600,570       622,771       602,724  
    Total interest-bearing liabilities     1,700,845       1,733,283       1,780,248       1,765,806       1,710,831  
    Noninterest-bearing demand deposits     80,372       87,889       91,532       93,637       92,129  
    Noninterest-bearing liabilities     44,905       49,645       49,787       48,315       45,484  
    Total liabilities     1,826,122       1,870,817       1,921,567       1,907,758       1,848,444  
    Equity     341,476       342,563       339,151       335,756       342,981  
    Total liabilities and equity   $ 2,167,598     $ 2,213,380     $ 2,260,718     $ 2,243,514     $ 2,191,425  
                                             
    Average Yield/Costs (annualized)                                        
    Loans receivable and held for sale     5.75 %     5.75 %     5.65 %     5.54 %     5.46 %
    Mortgage related securities     2.83 %     2.67 %     2.66 %     2.63 %     2.57 %
    Debt securities, federal funds sold and short term investments     4.90 %     4.85 %     5.05 %     4.82 %     4.82 %
    Total interest-earning assets     5.46 %     5.46 %     5.39 %     5.27 %     5.18 %
                                             
    Demand accounts     0.11 %     0.11 %     0.11 %     0.11 %     0.11 %
    Money market and savings accounts     2.10 %     2.00 %     1.94 %     1.89 %     1.79 %
    Certificates of deposit – retail     4.33 %     4.53 %     4.54 %     4.41 %     4.19 %
    Certificates of deposit – brokered     4.18 %     4.18 %     0.00 %     0.00 %     0.00 %
    Total interest-bearing deposits     3.52 %     3.58 %     3.53 %     3.42 %     3.26 %
    Borrowings     3.93 %     4.11 %     4.77 %     4.92 %     4.54 %
    Total interest-bearing liabilities     3.62 %     3.72 %     3.95 %     3.95 %     3.71 %
    COMMUNITY BANKING SEGMENT
    SUMMARY OF KEY QUARTERLY FINANCIAL DATA
    (Unaudited)    		  
        At or For the Three Months Ended  
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
        (Dollars in Thousands)  
    Condensed Results of Operations:                                        
    Net interest income   $ 12,403     $ 12,886     $ 12,250     $ 11,234     $ 11,598  
    Provision (credit) for credit losses     (518 )     331       (302 )     (279 )     105  
    Total noninterest income     1,348       1,595       1,227       1,491       990  
    Noninterest expenses:                                        
    Compensation, payroll taxes, and other employee benefits     5,212       4,883       5,326       5,116       5,360  
    Occupancy, office furniture and equipment     1,076       825       904       983       1,000  
    Advertising     171       204       311       229       174  
    Data processing     712       691       720       687       693  
    Communications     100       89       80       72       65  
    Professional fees     347       196       190       177       208  
    Real estate owned     (10 )     12       –       1       13  
    Loan processing expense     –       –       –       –       –  
    Other     596       563       602       672       691  
    Total noninterest expense     8,204       7,463       8,133       7,937       8,204  
    Income before income taxes     6,065       6,687       5,646       5,067       4,279  
    Income tax expense     1,427       1,399       941       718       1,639  
    Net income   $ 4,638     $ 5,288     $ 4,705     $ 4,349     $ 2,640  
                                             
    Efficiency ratio – QTD (non-GAAP)     59.66 %     51.54 %     60.35 %     62.37 %     65.17 %
    Efficiency ratio – YTD (non-GAAP)     59.66 %     59.58 %     62.58 %     63.77 %     65.17 %
    MORTGAGE BANKING SEGMENT
    SUMMARY OF KEY QUARTERLY FINANCIAL DATA
    (Unaudited)    		  
        At or For the Three Months Ended  
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
        (Dollars in Thousands)  
    Condensed Results of Operations:                                        
    Net interest income (loss)   $ 152     $ (92 )   $ (760 )   $ (552 )   $ (541 )
    Provision (credit) for credit losses     (40 )     36       (75 )     54       (38 )
    Total noninterest income     15,731       17,455       21,386       25,081       20,328  
    Noninterest expenses:                                        
    Compensation, payroll taxes, and other employee benefits     12,054       13,781       15,930       16,886       14,756  
    Occupancy, office furniture and equipment     853       754       953       1,046       1,108  
    Advertising     552       523       615       758       740  
    Data processing     498       542       570       549       508  
    Communications     135       135       152       168       161  
    Professional fees     1,373       917       379       569       520  
    Real estate owned     –       –       –       –       –  
    Loan processing expense     920       486       697       861       1,046  
    Other     1,751       814       1,261       1,641       617  
    Total noninterest expense     18,136       17,952       20,557       22,478       19,456  
    (Loss) income before income taxes (benefit) expense     (2,213 )     (625 )     144       1,997       369  
    Income tax (benefit) expense     (588 )     (428 )     194       684       71  
    Net (loss) income   $ (1,625 )   $ (197 )   $ (50 )   $ 1,313     $ 298  
                                             
    Efficiency ratio – QTD (non-GAAP)     114.18 %     103.39 %     99.67 %     91.64 %     98.33 %
    Efficiency ratio – YTD (non-GAAP)     114.18 %     97.74 %     96.23 %     94.62 %     98.33 %
                                             
    Loan originations   $ 387,729     $ 470,650     $ 558,729     $ 634,109     $ 485,109  
    Purchase     87.5 %     82.1 %     88.9 %     92.7 %     93.0 %
    Refinance     12.5 %     17.9 %     11.1 %     7.3 %     7.0 %
    Gross margin on loans sold(1)     3.98 %     3.74 %     3.83 %     3.93 %     4.10 %

    (1) Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations

    The MIL Network –

  • MIL-OSI USA: Dingell Holds Roundtable to Address Rising Cost of Child Care with Parents, Providers

    Source: United States House of Representatives – Congresswoman Debbie Dingell (12th District of Michigan)

    Congresswoman Debbie Dingell (MI-06) toured Tutor Time in Canton, and held a roundtable with child care providers and parents to discuss the impact of the rising cost of care on Michigan families.

    “Caregiving is the foundation of our economy – it allows for all other work to be possible. No one can do their job if their children aren’t cared for. But quality, affordable child care remains an expense that many American families cannot afford,” Dingell said. “It’s time to make investing in our country’s care infrastructure and workforce a priority to bring down costs and expand access to care. Today, we spoke to both parents and providers about the challenges they face finding and providing care, and what Congress can do to solve these problems.”

    “We were honored to host U.S. Representative Debbie Dingell at our Tutor Time location in Canton, MI, to discuss our commitment to helping families access quality and affordable childcare,” said Joanna Cline, Learning Care Group Executive and Michigan District 6 Constituent. “Partnering with Government leaders who advocate for family-focused policies is an important part of the work we do to support our communities, and I was proud to speak with Rep. Dingell about this issue today.”

    According to Bridge Michigan, the child care crisis costs Michigan $2.9 billion annually in turnover and lost taxes. 

    The cost of childcare has risen more than 30% in the last six years. In more than half of the states in America, the average annual cost of full-time child care is more than the average annual cost of in-state college tuition.

    The Department of Health and Human Services reported that a $52.5 billion investment in child care during the COVID-19 pandemic:

    1. provided stabilization grants to 220,000 providers associated with up to 10 million children;
    2. lowered child care costs for more than 700,000 children;
    3. increased compensation for more than 650,000 child care workers; and
    4. created 300,000 new child care slots. 

    View photos from the event here.

    MIL OSI USA News –

  • MIL-OSI: First Busey Corporation Announces 2025 First Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    LEAWOOD, Kan., April 22, 2025 (GLOBE NEWSWIRE) — First Busey Corporation (Nasdaq: BUSE) reports first quarter results.

    Busey completed the transformative acquisition of CrossFirst Bankshares, Inc. on March 1, 2025, significantly impacting first quarter results and resetting the baseline for financial performance for future quarters in a multitude of positive ways.

    Net Income (Loss) Diluted EPS Net Interest Margin1 ROAA1 ROATCE1
    $(30.0) million $(0.44) 3.16% (0.82)% (7.99)%
    $39.9 million (adj)2 $0.57 (adj)2 3.08% (adj)2 1.09% (adj)2 10.64% (adj)2
    MESSAGE FROM OUR CHAIRMAN & CEO

    The transformative partnership between Busey and CrossFirst takes our organization to new heights, combining our growing commercial bank with the power of Busey’s core deposit franchise, wealth management platform, and payment technology solutions at FirsTech, Inc. As we build upon Busey’s forward momentum, we are grateful for the opportunities to consistently earn the business of our customers, based on the contributions of our talented associates and the continued support of our loyal shareholders.
    Van A. Dukeman 
    Chairman and Chief Executive Officer 


    PARTNERSHIP WITH CROSSFIRST

    Effective March 1, 2025, First Busey Corporation (“Busey,” “Company,” “we,” “us,” or “our”), the holding company for Busey Bank, completed its previously announced acquisition (the “Merger”) of CrossFirst Bankshares, Inc. (“CrossFirst”) (NASDAQ: CFB), the holding company for CrossFirst Bank, pursuant to an Agreement and Plan of Merger, dated August 26, 2024, by and between Busey and CrossFirst (the “Merger Agreement”). This partnership creates a premier commercial bank in the Midwest, Southwest, and Florida, with 78 full-service locations across 10 states—Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas. The combined holding company will continue to operate under the First Busey Corporation name. Busey common stock will continue to trade on the Nasdaq under the “BUSE” stock ticker symbol.

    Upon completion of the acquisition, each share of CrossFirst common stock converted to the right to receive 0.6675 of a share of Busey’s common stock, with the result that holders of Busey’s common stock owned approximately 63.5% of the combined company and holders of CrossFirst’s common stock owned approximately 36.5% of the combined company, on a fully-diluted basis. Further, upon completion of the acquisition, each share of CrossFirst preferred stock converted to the right to receive one share of Busey preferred stock.

    CrossFirst Bank’s results of operations were included in Busey’s consolidated results of operations beginning March 1, 2025. Busey will operate CrossFirst Bank as a separate banking subsidiary until it is merged with and into Busey Bank, which is expected to occur on June 20, 2025. At the time of the bank merger, CrossFirst Bank locations will become banking centers of Busey Bank.

    The acquisition was accretive to tangible book value, exceeding initial projections of a six-month earn back period.

    Further details are included with Busey’s Current Report on Form 8‑K announcing completion of the acquisition, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 3, 2025.

    FINANCIAL RESULTS

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
                 
        Three Months Ended
    (dollars in thousands, except per share amounts)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Net interest income   $ 103,731     $ 81,578     $ 75,854  
    Provision for credit losses     42,452       1,273       5,038  
    Total noninterest income     21,223       35,221       34,913  
    Total noninterest expense     115,171       78,167       70,769  
    Income (loss) before income taxes     (32,669 )     37,359       34,960  
    Income taxes     (2,679 )     9,254       8,735  
    Net income (loss)   $ (29,990 )   $ 28,105     $ 26,225  
                 
    Basic earnings (loss) per common share   $ (0.44 )   $ 0.49     $ 0.47  
    Diluted earnings (loss) per common share   $ (0.44 )   $ 0.49     $ 0.46  
    Effective income tax rate     8.20 %     24.77 %     24.99 %
     

    Busey’s results of operations for the first quarter of 2025 was a net loss of $(30.0) million, or $(0.44) per diluted common share, compared to net income of $28.1 million, or $0.49 per diluted common share, for the fourth quarter of 2024, and $26.2 million, or $0.46 per diluted common share, for the first quarter of 2024. Annualized return on average assets and annualized return on average tangible common equity2 were (0.82)% and (7.99)%, respectively, for the first quarter of 2025.

    Busey views certain non-operating items, including acquisition-related expenses, restructuring charges, and one-time strategic events, as adjustments to net income reported under U.S. generally accepted accounting principles (“GAAP”). We also adjust for net securities gains and losses to align with industry and research analyst reporting. The objective of our presentation of adjusted earnings and adjusted earnings metrics is to allow investors and analysts to more clearly identify quarterly trends in core earnings performance. Non-operating pre-tax adjustments for acquisition and restructuring expenses2 in the first quarter of 2025 were $26.0 million. Further, $3.1 million other noninterest expense was recorded to establish an initial allowance for Unfunded Commitments2 and $42.4 million provision expense was recorded to establish an initial Allowance for Credit Losses for loans purchased without credit deterioration (“non-PCD” loans) immediately following the close of the acquisition in accordance with Accounting Standards Codification 326-20-30-15. Additionally, net securities losses were $15.8 million, primarily related to the execution of a strategic balance sheet repositioning. Lastly, $4.6 million in one-time deferred tax valuation expense2 was recorded in connection with the CrossFirst acquisition, which is expected to lower our effective blended state tax rate in future periods but created a negative adjustment to the carrying value of our deferred tax asset in the current period. For more information and a reconciliation of these non-GAAP measures (which are identified with the endnote labeled as 2) in tabular form, see “Non-GAAP Financial Information.”

    Adjusted net income2, which excludes the impact of non-GAAP adjustments, was $39.9 million, or $0.57 per diluted common share, for the first quarter of 2025, compared to $30.9 million, or $0.53 per diluted common share, for the fourth quarter of 2024 and $25.7 million or $0.46 per diluted common share for the first quarter of 2024. Annualized adjusted return on average assets2 and annualized adjusted return on average tangible common equity2 were 1.09% and 10.64%, respectively, for the first quarter of 2025.

    Pre-Provision Net Revenue2

    Pre-provision net revenue2 was $25.6 million for the first quarter of 2025, compared to $38.8 million for the fourth quarter of 2024 and $46.4 million for the first quarter of 2024. Pre-provision net revenue to average assets2 was 0.70% for the first quarter of 2025, compared to 1.28% for the fourth quarter of 2024, and 1.55% for the first quarter of 2024.

    Adjusted pre-provision net revenue2 was $54.7 million for the first quarter of 2025, compared to $42.0 million for the fourth quarter of 2024 and $38.6 million for the first quarter of 2024. Adjusted pre-provision net revenue to average assets2 was 1.50% for the first quarter of 2025, compared to 1.38% for the fourth quarter of 2024 and 1.29% for the first quarter of 2024.

    Net Interest Income and Net Interest Margin2

    Net interest income was $103.7 million in the first quarter of 2025, compared to $81.6 million in the fourth quarter of 2024 and $75.9 million in the first quarter of 2024.

    Net interest margin2 was 3.16% for the first quarter of 2025, compared to 2.95% for the fourth quarter of 2024 and 2.79% for the first quarter of 2024. Excluding purchase accounting accretion, adjusted net interest margin2 was 3.08% for the first quarter of 2025, compared to 2.92% in the fourth quarter of 2024 and 2.78% in the first quarter of 2024.

    Components of the 21 basis point increase in net interest margin2 during the first quarter of 2025, which includes approximately +12 basis points contributed by CrossFirst Bank, are as follows:

    • Increased loan portfolio and held for sale loan yields contributed +36 basis points
    • Increased purchase accounting accretion contributed +5 basis points
    • Decreased borrowing expense contributed +3 basis points
    • Decreased expense on rate swaps contributed +2 basis points
    • Increased non-maturity deposit funding costs contributed -17 basis points
    • Decreased cash and securities portfolio yield contributed -8 basis points

    Based on our most recent Asset Liability Management Committee (“ALCO”) model, a +100 basis point parallel rate shock is expected to increase net interest income by 1.8% over the subsequent twelve-month period. Busey continues to evaluate and execute off-balance sheet hedging and balance sheet repositioning strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit and savings specials have provided funding flows, and we had excess earning cash during the first quarter of 2025. A portion of the acquired CrossFirst Bank securities portfolio was liquidated when the acquisition was finalized, providing additional excess cash that will allow us to unwind non-core funding. As brokered CDs mature, Busey will continue to deploy excess cash to reduce wholesale funding levels during subsequent quarters. Total deposit cost of funds increased from 1.75% during the fourth quarter of 2024 to 1.91% during the first quarter of 2025. Deposit betas increased with the higher mix of acquired indexed and wholesale deposits and a full quarter of the consolidated Company’s funding base is projected to increase total deposit cost of funds during the second quarter of 2025. With the expectation of Busey paying down non-core funding, the deposit beta will lessen during the year and is expected to normalize in the 45% to 50% beta range. Growth in higher yielding earning assets is expected to offset the increased cost of funds pressure and we project further net interest margin expansion during the second quarter of 2025.

    Noninterest Income

      Three Months Ended
    (dollars in thousands) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    NONINTEREST INCOME          
    Wealth management fees $ 17,364     $ 16,786     $ 15,549  
    Fees for customer services   8,128       7,911       7,056  
    Payment technology solutions   5,073       5,094       5,709  
    Mortgage revenue   329       496       746  
    Income on bank owned life insurance   1,446       1,080       1,419  
    Realized net gains (losses) on the sale of mortgage servicing rights   —       —       7,465  
    Net securities gains (losses)   (15,768 )     (196 )     (6,375 )
    Other noninterest income   4,651       4,050       3,344  
    Total noninterest income $ 21,223     $ 35,221     $ 34,913  
       

    Total noninterest income decreased by 39.7% compared to the fourth quarter of 2024 and decreased by 39.2% compared to the first quarter of 2024, primarily due to net securities losses that were recorded in connection with a strategic balance sheet repositioning.

    Excluding the impact of net securities gains and losses and the gains on the sale of mortgage servicing rights, adjusted noninterest income2 increased by 4.4% to $37.0 million, or 26.3% of operating revenue2, during the first quarter of 2025, compared to $35.4 million, or 30.3% of operating revenue2, for the fourth quarter of 2024. Compared to the first quarter of 2024, adjusted noninterest income2 increased by 9.4% from $33.8 million, or 30.8% of operating revenue2.

    Our fee-based businesses continue to add revenue diversification. Wealth management fees, wealth management referral fees included in other noninterest income, and payment technology solutions contributed 61.1% of adjusted noninterest income2 for the first quarter of 2025.

    Noteworthy components of noninterest income are as follows:

    • Wealth management fees increased by 3.4% compared to the fourth quarter of 2024. Compared to the first quarter of 2024 wealth management fees increased by 11.7%. Busey’s Wealth Management division ended the first quarter of 2025 with $13.68 billion in assets under care, compared to $13.83 billion at the end of the fourth quarter of 2024 and $12.76 billion at the end of the first quarter of 2024. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets and has outperformed its blended benchmark3 over the last three and five years. The Wealth Management segment reported another quarter of record high revenue for the first quarter of 2025.
    • Payment technology solutions revenue decreased slightly compared the fourth quarter of 2024. Compared to the first quarter of 2024, payment technology solutions revenue decreased by 11.1% primarily due to decreases in income from electronic, online, and interactive voice response payments, partially offset by increases in lockbox and merchant services income.
    • Fees for customer services increased by 2.7% compared to the fourth quarter of 2024 primarily due to increases in income from analysis charges and interchange fees, offset by lower non-sufficient funds charges. Compared to the first quarter of 2024, fees for customer services increased by 15.2% primarily due to increases in analysis charges, automated teller machine fees, and interchange fees, offset by lower non-sufficient funds charges. Increases in fees for customer services are primarily attributable to the inclusion of one month of CrossFirst’s income in our first quarter results.
    • Other noninterest income increased by 14.8% compared to the fourth quarter of 2024 and by 39.1% compared to the first quarter of 2024. The increase for both periods was driven by increases in swap origination fee income, commercial loan sales gains, letter of credit fee income, and other real estate owned income, offset by decreases in venture capital income.

    Operating Efficiency

      Three Months Ended
    (dollars in thousands) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    NONINTEREST EXPENSE          
    Salaries, wages, and employee benefits $ 67,563   $ 45,458   $ 42,090
    Data processing expense   9,575     6,564     6,550
    Net occupancy expense of premises   5,799     4,794     4,720
    Furniture and equipment expense   1,744     1,650     1,813
    Professional fees   9,511     4,938     2,253
    Amortization of intangible assets   3,083     2,471     2,409
    Interchange expense   1,343     1,305     1,611
    FDIC insurance   2,167     1,330     1,400
    Other noninterest expense   14,386     9,657     7,923
    Total noninterest expense $ 115,171   $ 78,167   $ 70,769
     

    Total noninterest expense increased by 47.3% compared to the fourth quarter of 2024 and increased by 62.7% compared to the first quarter of 2024. Growth in noninterest expense was primarily attributable to one-time acquisition expenses related to the CrossFirst acquisition as well as added costs for operating expenses for two banks during one month of the quarter. Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0 million. Busey anticipates a 50% rate of synergy realization in 2025 and 100% in 2026.

    Adjusted noninterest expense2, which excludes acquisition and restructuring expenses, amortization of intangible assets, and the provision for unfunded commitments, was $82.9 million in the first quarter of 2025, compared to $72.6 million in the fourth quarter of 2024 and $68.6 million in the first quarter of 2024. As our business grows, Busey remains focused on prudently managing our expense base and operating efficiency.

    Noteworthy components of noninterest expense are as follows:

    • Salaries, wages, and employee benefits expenses increased by $22.1 million compared to the fourth quarter of 2024, and by $25.5 million compared to the first quarter of 2024, of which $15.6 million and $15.8 million, respectively, was attributable to increases in non-operating expenses, with additional severance, retention, and stock-based compensation. Busey has added 501 full time equivalent associates (“FTEs”) over the past year, mostly as a result of acquisitions, including 437 CrossFirst Bank FTEs added in March 2025 and 46 Merchants & Manufacturers Bank FTEs added in April 2024.
    • Data processing expense increased by $3.0 million compared to both the fourth quarter of 2024 and the first quarter of 2024, of which $2.3 million and $2.2 million, respectively, was attributable to increases in non-operating expenses. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
    • Professional fees increased by $4.6 million compared to the fourth quarter of 2024, of which $4.3 million was attributable to increases in non-operating expenses. Compared to the first quarter of 2024, professional fees increased by $7.3 million, of which $7.2 million was attributable to increases in non-operating expenses.
    • Amortization of intangible assets increased by $0.6 million compared to the fourth quarter of 2024, and by $0.7 million compared to the first quarter of 2024. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets, which will be amortized using an accelerated amortization methodology.
    • Other noninterest expense increased by $4.7 million compared to the fourth quarter of 2024, and increased by $6.5 million compared to the first quarter of 2024, of which $0.3 million and $0.5 million, respectively, resulted from increases in non-operating expenses related to acquisition and restructuring expenses. Further, $3.1 million of non-operating expenses was recorded for the Day 2 provision for unfunded commitments. Multiple expense items contributed to the remaining fluctuations in this expense category, including marketing, business development, regulatory expenses, mortgage servicing rights valuation expenses, and other real estate owned.

    Busey’s efficiency ratio2 was 79.3% for the first quarter of 2025, compared to 64.5% for the fourth quarter of 2024 and 58.1% for the first quarter of 2024. Our adjusted efficiency2 ratio was 58.7% for the first quarter of 2025, compared to 61.8% for the fourth quarter of 2024, and 62.3% for the first quarter of 2024.

    Busey’s annualized ratio of adjusted noninterest expense to average assets was 2.27% for the first quarter of 2025, compared to 2.39% for the fourth quarter of 2024 and 2.30% for the first quarter of 2024.

    BALANCE SHEET STRENGTH

    CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
               
      As of
    (dollars in thousands, except per share amounts) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    ASSETS          
    Cash and cash equivalents $ 1,200,292     $ 697,659     $ 591,071  
    Debt securities available for sale   2,273,874       1,810,221       1,898,072  
    Debt securities held to maturity   815,402       826,630       862,218  
    Equity securities   10,828       15,862       9,790  
    Loans held for sale   7,270       3,657       6,827  
    Portfolio loans   13,868,357       7,697,087       7,588,077  
    Allowance for credit losses   (195,210 )     (83,404 )     (91,562 )
    Restricted bank stock   53,518       49,930       6,000  
    Premises and equipment, net   182,003       118,820       121,506  
    Right of use assets   40,594       10,608       10,590  
    Goodwill and other intangible assets, net   496,118       365,975       351,455  
    Other assets   711,206       533,677       533,414  
    Total assets $ 19,464,252     $ 12,046,722     $ 11,887,458  
               
    LIABILITIES & STOCKHOLDERS’ EQUITY          
    Liabilities          
    Total deposits $ 16,459,470     $ 9,982,490     $ 9,960,191  
    Securities sold under agreements to repurchase   137,340       155,610       147,175  
    Short-term borrowings   11,209       —       —  
    Long-term debt   306,509       227,723       223,100  
    Junior subordinated debt owed to unconsolidated trusts   77,117       74,815       72,040  
    Lease liabilities   41,111       11,040       10,896  
    Other liabilities   251,890       211,775       191,405  
    Total liabilities   17,284,646       10,663,453       10,604,807  
               
    Stockholders’ equity          
    Retained earnings   249,484       294,054       248,412  
    Accumulated other comprehensive income (loss)   (172,810 )     (207,039 )     (222,190 )
    Other stockholders’ equity1   2,102,932       1,296,254       1,256,429  
    Total stockholders’ equity   2,179,606       1,383,269       1,282,651  
    Total liabilities & stockholders’ equity $ 19,464,252     $ 12,046,722     $ 11,887,458  
               
    SHARE AND PER SHARE AMOUNTS          
    Book value per common share2 $ 24.13     $ 24.31     $ 23.19  
    Tangible book value per common share2 $ 18.62     $ 17.88     $ 16.84  
    Ending number of common shares outstanding   90,008,178       56,895,981       55,300,008  

    ___________________________________________
    1. Net balance of preferred stock ($0.001 par value), common stock ($0.001 par value), additional paid-in capital, and treasury stock.
    2. See “Non-GAAP Financial Information” for reconciliation.

    AVERAGE BALANCES (unaudited)
               
      Three Months Ended
    (dollars in thousands) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    ASSETS          
    Cash and cash equivalents $ 861,021   $ 776,572   $ 594,193
    Investment securities   2,782,435     2,597,309     2,907,144
    Loans held for sale   3,443     6,306     4,833
    Portfolio loans   9,838,337     7,738,772     7,599,316
    Interest-earning assets   13,363,594     11,048,350     11,005,903
    Total assets   14,831,298     12,085,993     12,024,208
               
    LIABILITIES & STOCKHOLDERS’ EQUITY          
    Noninterest-bearing deposits   3,036,127     2,724,344     2,708,586
    Interest-bearing deposits   9,142,781     7,325,662     7,330,105
    Total deposits   12,178,908     10,050,006     10,038,691
    Federal funds purchased and securities sold under agreements to repurchase   144,838     135,728     178,659
    Interest-bearing liabilities   9,627,841     7,763,729     7,831,655
    Total liabilities   12,896,222     10,689,054     10,748,484
    Stockholders’ equity – preferred   2,669     —     —
    Stockholders’ equity – common   1,932,407     1,396,939     1,275,724
    Tangible common equity1   1,521,387     1,029,539     922,710

    ___________________________________________
    1. See “Non-GAAP Financial Information” for reconciliation.

    Busey’s financial strength is built on a long-term conservative operating approach. That focus will not change now or in the future.

    Total assets were $19.46 billion as of March 31, 2025, compared to $12.05 billion as of December 31, 2024, and $11.89 billion as of March 31, 2024. Average interest-earning assets were $13.36 billion for the first quarter of 2025, compared to $11.05 billion for the fourth quarter of 2024, and $11.01 billion for the first quarter of 2024.

    Portfolio Loans

    We remain steadfast in our conservative approach to underwriting and our disciplined approach to pricing, particularly given our outlook for the economy in the coming quarters. Portfolio loans totaled $13.87 billion at March 31, 2025, compared to $7.70 billion at December 31, 2024, and $7.59 billion at March 31, 2024. Busey Bank’s portfolio loans grew by $133.6 million during the first quarter of 2025, with growth centered in the commercial category. In addition, as of March 31, 2024, CrossFirst Bank added $6.04 billion in loans to Busey’s loan portfolio.

    Average portfolio loans were $9.84 billion for the first quarter of 2025, compared to $7.74 billion for the fourth quarter of 2024 and $7.60 billion for the first quarter of 2024.

    Asset Quality

    Asset quality continues to be strong. Busey Bank maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment. CrossFirst Bank’s policies are similar in nature to Busey Bank’s policies and Busey is in the process of migrating the legacy CrossFirst portfolio toward Busey Bank’s policies.

    ASSET QUALITY (unaudited)
               
      As of
    (dollars in thousands) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Total assets $ 19,464,252     $ 12,046,722     $ 11,887,458  
    Portfolio loans   13,868,357       7,697,087       7,588,077  
    Loans 30 – 89 days past due   18,554       8,124       7,441  
    Non-performing loans:          
    Non-accrual loans   48,647       22,088       17,465  
    Loans 90+ days past due and still accruing   6,077       1,149       88  
    Non-performing loans   54,724       23,237       17,553  
    Other non-performing assets   4,757       63       65  
    Non-performing assets   59,481       23,300       17,618  
    Substandard (excludes 90+ days past due)   131,078       62,023       87,830  
    Classified assets $ 190,559     $ 85,323     $ 105,448  
               
    Allowance for credit losses $ 195,210     $ 83,404     $ 91,562  
               
    RATIOS          
    Non-performing loans to portfolio loans   0.39 %     0.30 %     0.23 %
    Non-performing assets to total assets   0.31 %     0.19 %     0.15 %
    Non-performing assets to portfolio loans and other non-performing assets   0.43 %     0.30 %     0.23 %
    Allowance for credit losses to portfolio loans   1.41 %     1.08 %     1.21 %
    Coverage ratio of the allowance for credit losses to non-performing loans 3.57 x   3.59 x   5.22 x
    Classified assets to Bank Tier 1 capital1and reserves   8.40 %     5.61 %     7.24 %

    ___________________________________________
    1. Capital amounts for the first quarter of 2025 are not yet finalized and are subject to change.

    Loans 30-89 days past due increased by $10.4 million compared to December 31, 2024, and increased by $11.1 million compared to March 31, 2024. Busey Bank’s loans 30-89 days past due were $6.1 million, a decrease of $2.0 million compared to December 31, 2024. CrossFirst Bank’s loans 30-89 days past due were $12.5 million as of March 31, 2025.

    Non-performing loans increased by $31.5 million compared to December 31, 2024, and increased by $37.2 million compared to March 31, 2024. Busey Bank’s non-performing loans were $6.8 million, a decrease of $16.4 million compared to December 31, 2024. CrossFirst Bank’s non-performing loans were $47.9 million as of March 31, 2025. Continued disciplined credit management resulted in non-performing loans as a percentage of portfolio loans of 0.39% as of March 31, 2025, a 9 basis point increase from December 31, 2024, and a 16 basis point increase from March 31, 2024.

    Non-performing assets increased by $36.2 million compared to December 31, 2024, and increased by $41.9 million compared to March 31, 2024. Busey Bank’s non-performing assets were $7.1 million, a decrease of $16.2 million compared to December 31, 2024. CrossFirst Bank’s non-performing assets were $52.4 million as of March 31, 2025. Non-performing assets represented 0.31% of total assets as of March 31, 2025, a 12 basis point increase from December 31, 2024, and a 16 basis point increase from March 31, 2024.

    Classified assets increased by $105.2 million compared to December 31, 2024, and increased by $85.1 million compared to March 31, 2024. Busey Bank’s classified assets were $81.3 million, a decrease of $4.0 million compared to December 31, 2024. CrossFirst Bank’s classified assets were $109.3 million as of March 31, 2025.

    The allowance for credit losses was $195.2 million as of March 31, 2025, representing 1.41% of total portfolio loans outstanding, and providing coverage of 3.57 times our non-performing loans balance. In connection with the CrossFirst acquisition, the Day 1 allowance recorded for loans that were purchased with credit deterioration (“PCD” loans) was $100.8 million. The Day 1 PCD allowance was recorded as an adjustment to the fair value of the PCD loans.

    NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) (unaudited)
               
      Three Months Ended
    (dollars in thousands) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Net charge-offs (recoveries) $ 31,429   $ 2,850   $ 5,216
    Provision expense (release)   42,452     1,273     5,038
                     

    Net charge-offs increased by $28.6 million when compared to the fourth quarter of 2024, and by $26.2 million when compared with the first quarter of 2024. Net charge-offs include $29.6 million related to PCD loans acquired from CrossFirst Bank, which were fully reserved at acquisition and did not require recording additional provision expense.

    Busey’s results for the first quarter of 2025 include $42.5 million provision expense for credit losses, which includes $42.4 million that was recorded to establish an initial allowance for credit losses on non-PCD acquired loans.

    Deposits

    Total deposits were $16.46 billion at March 31, 2025, compared to $9.98 billion at December 31, 2024, and $9.96 billion at March 31, 2024. Average deposits were $12.18 billion for the first quarter of 2025, compared to $10.05 billion for the fourth quarter of 2024 and $10.04 billion for the first quarter of 2024.

    Core deposits2 accounted for 89.7% of total deposits as of March 31, 2025. The quality of our core deposit franchise is a critical value driver of our institution. We estimated that 32% of our deposits were uninsured and uncollateralized4 as of March 31, 2025, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.

    We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the first quarter of 2025 had a weighted average term of 7.8 months at a rate of 3.58%, which was 96 basis points below our average marginal wholesale equivalent-term funding cost during the quarter.

    Borrowings

    As of March 31, 2025, Busey Bank held $16.7 million of long-term Federal Home Loan Bank (“FHLB”) borrowings. In comparison, Busey Bank had no short-term or long-term FHLB borrowings as of December 31, 2024, or March 31, 2024. As of March 31, 2025, CrossFirst Bank held $11.2 million of short-term FHLB borrowings and $61.9 million of long-term FHLB borrowings.

    In addition, associated with the CrossFirst acquisition, Busey assumed trust preferred securities with a recorded balance of $2.2 million as of March 31, 2025.

    Liquidity

    As of March 31, 2025, our available sources of on- and off-balance sheet liquidity5 totaled $8.55 billion. Furthermore, our balance sheet liquidity profile continues to be aided by the cash flows we expect from our relatively short-duration securities portfolio. Those cash flows were approximately $119.7 million in the first quarter of 2025. Cash flows from maturing securities within our portfolio are expected to be approximately $302.3 million for the remainder of 2025, with a current book yield of 2.55%, and approximately $308.1 million for 2026, with a current book yield of 2.59%.

    Capital Strength

    The strength of our balance sheet is also reflected in our capital foundation. Although impacted by the strategic deployment of capital for the CrossFirst acquisition, our capital ratios remain strong, and as of March 31, 2025, our regulatory capital ratios continued to provide a buffer of more than $630 million above levels required to be designated well-capitalized. Busey’s Common Equity Tier 1 ratio is estimated6 to be 11.99% at March 31, 2025, compared to 14.10% at December 31, 2024, and 13.45% at March 31, 2024. Our Total Capital to Risk Weighted Assets ratio is estimated6 to be 14.87% at March 31, 2025, compared to 18.53% at December 31, 2024, and 17.95% at March 31, 2024.

    Busey’s tangible common equity2 was $1.68 billion at March 31, 2025, compared to $1.02 billion at December 31, 2024, and $931.2 million at March 31, 2024. Tangible common equity2 represented 8.83% of tangible assets at March 31, 2025, compared to 8.71% at December 31, 2024, and 8.07% at March 31, 2024.

    Busey’s tangible book value per common share2 was $18.62 at March 31, 2025, compared to $17.88 at December 31, 2024, and $16.84 at March 31, 2024, reflecting a 10.6% year-over-year increase. The ratios of tangible common equity to tangible assets2 and tangible book value per common share have been impacted by the fair market valuation adjustment of Busey’s securities portfolio as a result of the current rate environment, which is reflected in the accumulated other comprehensive income (loss) component of shareholder’s equity.

    Busey’s strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. During the first quarter of 2025, we paid a dividend of $0.25 per share on Busey’s common stock, which represents a 4.2% increase from the previous quarterly dividend of $0.24 per share. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.

    During the first quarter of 2025, Busey resumed making stock repurchases under its stock repurchase plan, purchasing 220,000 shares of its common stock at a weighted average price of $21.98 per share for a total of $4.8 million. As of March 31, 2025, Busey had 1,699,275 shares remaining on its stock repurchase plan available for repurchase.

    FIRST QUARTER EARNINGS INVESTOR PRESENTATION

    For additional information on Busey’s financial condition and operating results, please refer to our Q1 2025 Earnings Investor Presentation furnished via Form 8‑K on April 22, 2025, in connection with this earnings release.

    CORPORATE PROFILE

    As of March 31, 2025, First Busey Corporation (Nasdaq: BUSE) was a $19.46 billion financial holding company headquartered in Leawood, Kansas.

    Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation headquartered in Champaign, Illinois, had total assets of $11.98 billion as of March 31, 2025. Busey Bank currently has 62 banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, three in Southwest Florida, and one in Indianapolis. More information about Busey Bank can be found at busey.com.

    CrossFirst Bank, a wholly-owned bank subsidiary of First Busey Corporation headquartered in Leawood, Kansas, had total assets of $7.45 billion as of March 31, 2025. CrossFirst Bank currently has 16 banking centers located across Arizona, Colorado, Kansas, Missouri, New Mexico, Oklahoma, and Texas. More information about CrossFirst Bank can be found at crossfirstbank.com. It is anticipated that CrossFirst Bank will be merged with and into Busey Bank on June 20, 2025.

    Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $13.68 billion as of March 31, 2025. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.

    Busey Bank’s wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions, including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

    For the fourth consecutive year, Busey was named among 2025’s America’s Best Banks by Forbes. Ranked 88th overall, Busey was one of seven banks headquartered in Illinois included on this year’s list. Busey was also named among the 2024 Best Banks to Work For by American Banker, the 2024 Best Places to Work in Money Management by Pensions and Investments, the 2024 Best Places to Work in Illinois by Daily Herald Business Ledger, the 2025 Best Places to Work in Indiana by the Indiana Chamber of Commerce, and the 2024 Best Companies to Work For in Florida by Florida Trend magazine. We are honored to be consistently recognized globally, nationally and locally for our engaged culture of integrity and commitment to community development.

    NON-GAAP FINANCIAL INFORMATION

    This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to Busey’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring items and provide additional perspective on Busey’s performance over time.

    The following tables present reconciliations between these non-GAAP measures and what management believes to be the most directly comparable GAAP financial measures.

    These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates, estimated federal income tax rates, or effective tax rates, as noted with the tables below.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
     
    Pre-Provision Net Revenue and Related Measures
                 
        Three Months Ended
    (dollars in thousands)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Net interest income (GAAP)   $ 103,731     $ 81,578     $ 75,854  
    Total noninterest income (GAAP)     21,223       35,221       34,913  
    Net security (gains) losses (GAAP)     15,768       196       6,375  
    Total noninterest expense (GAAP)     (115,171 )     (78,167 )     (70,769 )
    Pre-provision net revenue (Non-GAAP) [a]   25,551       38,828       46,373  
    Acquisition and restructuring expenses     26,026       3,585       408  
    Provision for unfunded commitments1     3,141       (455 )     (678 )
    Realized (gain) loss on the sale of mortgage service rights     —       —       (7,465 )
    Adjusted pre-provision net revenue (Non-GAAP) [b] $ 54,718     $ 41,958     $ 38,638  
                 
    Average total assets [c]   14,831,298       12,085,993       12,024,208  
                 
    Pre-provision net revenue to average total assets (Non-GAAP)2 [a÷c]   0.70 %     1.28 %     1.55 %
    Adjusted pre-provision net revenue to average total assets (Non-GAAP)2 [b÷c]   1.50 %     1.38 %     1.29 %

    ___________________________________________

    1. For the three months ended March 31, 2025, the provision for unfunded commitments included Day 2 provision expense of $3.139 million recorded in connection with the CrossFirst acquisition.
    2. Annualized measure.
    Adjusted Net Income, Average Tangible Common Equity, and Related Ratios
                 
        Three Months Ended
    (dollars in thousands, except per share amounts)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Net income (loss) (GAAP) [a] $ (29,990 )   $ 28,105     $ 26,225  
    Acquisition expenses     26,026       2,469       285  
    Restructuring expenses     —       1,116       123  
    Day 2 provision for credit losses1     42,433       —       —  
    Day 2 provision for unfunded commitments2     3,139       —       —  
    Net securities (gains) losses     15,768       196       6,375  
    Realized net (gains) losses on the sale of mortgage servicing rights     —       —       (7,465 )
    Related tax (benefit) expense3     (22,069 )     (1,014 )     170  
    One-time deferred tax valuation adjustment4     4,591       —       —  
    Adjusted net income (Non-GAAP)5 [b] $ 39,898     $ 30,872     $ 25,713  
                 
    Weighted average number of common shares outstanding, diluted (GAAP) [c]   68,517,647       57,934,812       56,406,500  
    Diluted earnings (loss) per common share (GAAP) [a÷c] $ (0.44 )   $ 0.49     $ 0.46  
                 
    Weighted average number of common shares outstanding, diluted (Non-GAAP)6 [d]   69,502,717       57,934,812       56,406,500  
    Adjusted diluted earnings per common share (Non-GAAP)5,6 [b÷d] $ 0.57     $ 0.53     $ 0.46  
                 
    Average total assets [e] $ 14,831,298     $ 12,085,993     $ 12,024,208  
    Return on average assets (Non-GAAP)7 [a÷e] (0.82 )%     0.93 %     0.88 %
    Adjusted return on average assets (Non-GAAP)5,7 [b÷e]   1.09 %     1.02 %     0.86 %
                 
    Average common equity   $ 1,932,407     $ 1,396,939     $ 1,275,724  
    Average goodwill and other intangible assets, net     (411,020 )     (367,400 )     (353,014 )
    Average tangible common equity (Non-GAAP) [f] $ 1,521,387     $ 1,029,539     $ 922,710  
                 
    Return on average tangible common equity (Non-GAAP)7 [a÷f] (7.99 )%     10.86 %     11.43 %
    Adjusted return on average tangible common equity (Non-GAAP)5,7 [b÷f]   10.64 %     11.93 %     11.21 %

    ___________________________________________

    1. The Day 2 allowance for credit losses was recorded in connection with the CrossFirst acquisition to establish an allowance on non-PCD loans and is reflected within the provision for credit losses line on the Statement of Income.
    2. The Day 2 provision for unfunded commitments was recorded in connection with the CrossFirst acquisition and is reflected within the other noninterest expense line, as a component of total noninterest expense, on the Statement of Income.
    3. Tax benefits were calculated using tax rates of 25.3%, 26.8%, and 24.9% for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
    4. The deferred tax valuation adjustment was recorded in connection with the CrossFirst acquisition and relates to the expansion of Busey’s footprint into new states. The deferred tax valuation adjustment is reflected within the income taxes line on the Statement of Income.
    5. Beginning in 2025, Busey revised its calculation of adjusted net income for all periods presented to include, as applicable, adjustments for net securities gains and losses, realized net gains and losses on the sale of mortgage servicing rights, and one-time deferred tax valuation adjustments. In 2024, these adjusting items were previously presented as further adjustments to adjusted net income.
    6. Dilution includes shares that would have been dilutive if there had been net income during the period.
    7. Annualized measure.
    Tax-Equivalent Net Interest Income, Adjusted Net Interest Income, Net Interest Margin, and Adjusted Net Interest Margin
                 
        Three Months Ended
    (dollars in thousands)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Net interest income (GAAP)   $ 103,731     $ 81,578     $ 75,854  
    Tax-equivalent adjustment1     537       446       449  
    Tax-equivalent net interest income (Non-GAAP) [a]   104,268       82,024       76,303  
    Purchase accounting accretion related to business combinations     (2,728 )     (812 )     (204 )
    Adjusted net interest income (Non-GAAP) [b] $ 101,540     $ 81,212     $ 76,099  
                 
    Average interest-earning assets (Non-GAAP) [c] $ 13,363,594     $ 11,048,350     $ 11,005,903  
                 
    Net interest margin (Non-GAAP)2 [a÷c]   3.16 %     2.95 %     2.79 %
    Adjusted net interest margin (Non-GAAP)2 [b÷c]   3.08 %     2.92 %     2.78 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
    2. Annualized measure.
    Adjusted Noninterest Income, Revenue Measures, Adjusted Noninterest Expense, Efficiency Ratios, and Adjusted Noninterest Expense to Average Assets
                 
        Three Months Ended
    (dollars in thousands)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Net interest income (GAAP) [a] $ 103,731     $ 81,578     $ 75,854  
    Tax-equivalent adjustment1     537       446       449  
    Tax-equivalent net interest income (Non-GAAP) [b]   104,268       82,024       76,303  
                 
    Total noninterest income (GAAP)     21,223       35,221       34,913  
    Net security (gains) losses     15,768       196       6,375  
    Noninterest income excluding net securities gains and losses (Non-GAAP) [c]   36,991       35,417       41,288  
    Realized net (gains) losses on the sale of mortgage servicing rights     —       —       (7,465 )
    Adjusted noninterest income (Non-GAAP) [d] $ 36,991     $ 35,417     $ 33,823  
                 
    Tax-equivalent revenue (Non-GAAP) [e = b+c] $ 141,259     $ 117,441     $ 117,591  
    Adjusted tax-equivalent revenue (Non-GAAP) [f = b+d] $ 141,259     $ 117,441     $ 110,126  
    Operating revenue (Non-GAAP) [g = a+d] $ 140,722     $ 116,995     $ 109,677  
                 
    Adjusted noninterest income to operating revenue (Non-GAAP) [d÷g]   26.29 %     30.27 %     30.84 %
                 
    Total noninterest expense (GAAP)   $ 115,171     $ 78,167     $ 70,769  
    Amortization of intangible assets     (3,083 )     (2,471 )     (2,409 )
    Noninterest expense excluding amortization of intangible assets (Non-GAAP) [h]   112,088       75,696       68,360  
    Acquisition and restructuring expenses     (26,026 )     (3,585 )     (408 )
    Provision for unfunded commitments2     (3,141 )     455       678  
    Adjusted noninterest expense (Non-GAAP)3 [i] $ 82,921     $ 72,566     $ 68,630  
                 
    Efficiency ratio (Non-GAAP) [h÷e]   79.35 %     64.45 %     58.13 %
    Adjusted efficiency ratio (Non-GAAP)3 [i÷f]   58.70 %     61.79 %     62.32 %
                 
    Average total assets [j] $ 14,831,298     $ 12,085,993     $ 12,024,208  
    Adjusted noninterest expense to average assets (Non-GAAP)4 [i÷j]   2.27 %     2.39 %     2.30 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
    2. For the three months ended March 31, 2025, the provision for unfunded commitments included Day 2 provision expense of $3.139 million recorded in connection with the CrossFirst acquisition.
    3. Beginning in 2025, Busey revised its calculation of adjusted noninterest expense and the adjusted efficiency ratio for all periods presented to include, as applicable, adjustments for the provision for unfunded commitments. In 2024, these adjustments were previously presented as adjustments for adjusted core expense and the adjusted core efficiency ratio.
    4. Annualized measure.
    Tangible Assets, Tangible Common Equity, and Related Measures and Ratio
                 
        As of
    (dollars in thousands, except per share amounts)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Total assets (GAAP)   $ 19,464,252     $ 12,046,722     $ 11,887,458  
    Goodwill and other intangible assets, net     (496,118 )     (365,975 )     (351,455 )
    Tangible assets (Non-GAAP)1 [a] $ 18,968,134     $ 11,680,747     $ 11,536,003  
                 
    Total stockholders’ equity (GAAP)   $ 2,179,606     $ 1,383,269     $ 1,282,651  
    Preferred stock and additional paid in capital on preferred stock     (7,750 )     —       —  
    Common equity [b]   2,171,856       1,383,269       1,282,651  
    Goodwill and other intangible assets, net     (496,118 )     (365,975 )     (351,455 )
    Tangible common equity (Non-GAAP)1 [c] $ 1,675,738     $ 1,017,294     $ 931,196  
                 
    Tangible common equity to tangible assets (Non-GAAP)1 [c÷a]   8.83 %     8.71 %     8.07 %
                 
    Ending number of common shares outstanding (GAAP) [d]   90,008,178       56,895,981       55,300,008  
    Book value per common share (Non-GAAP) [b÷d] $ 24.13     $ 24.31     $ 23.19  
    Tangible book value per common share (Non-GAAP) [c÷d] $ 18.62     $ 17.88     $ 16.84  

    ___________________________________________

    1. Beginning in 2025, Busey revised its calculation of tangible assets and tangible common equity for all periods presented to exclude any tax adjustment.
    Core Deposits and Related Ratio
                 
        As of
    (dollars in thousands)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Total deposits (GAAP) [a] $ 16,459,470     $ 9,982,490     $ 9,960,191  
    Brokered deposits, excluding brokered time deposits of $250,000 or more     (722,309 )     (13,090 )     (6,001 )
    Time deposits of $250,000 or more     (967,262 )     (334,503 )     (326,795 )
    Core deposits (Non-GAAP) [b] $ 14,769,899     $ 9,634,897     $ 9,627,395  
                 
    Core deposits to total deposits (Non-GAAP) [b÷a]   89.73 %     96.52 %     96.66 %
     

    FORWARD-LOOKING STATEMENTS

    This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Busey’s financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” “position,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and Busey undertakes no obligation to update any statement in light of new information or future events.

    A number of factors, many of which are beyond Busey’s ability to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1) the strength of the local, state, national, and international economies and financial markets (including effects of inflationary pressures and supply chain constraints); (2) changes in, and the interpretation and prioritization of, local, state, and federal laws, regulations, and governmental policies (including those concerning Busey’s general business); (3) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the conflict in the Middle East); (4) unexpected results of acquisitions, including the acquisition of CrossFirst, which may include the failure to realize the anticipated benefits of the acquisitions and the possibility that the transaction and integration costs may be greater than anticipated; (5) the imposition of tariffs or other governmental policies impacting the value of products produced by Busey’s commercial borrowers; (6) new or revised accounting policies and practices as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission, or the Public Company Accounting Oversight Board; (7) changes in interest rates and prepayment rates of Busey’s assets (including the impact of sustained elevated interest rates); (8) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (9) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (10) the loss of key executives or associates, talent shortages, and employee turnover; (11) unexpected outcomes and costs of existing or new litigation, investigations, or other legal proceedings, inquiries, and regulatory actions involving Busey (including with respect to Busey’s Illinois franchise taxes); (12) fluctuations in the value of securities held in Busey’s securities portfolio, including as a result of changes in interest rates; (13) credit risk and risk from concentrations (by type of borrower, geographic area, collateral, and industry), within Busey’s loan portfolio and large loans to certain borrowers (including commercial real estate loans); (14) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversify their exposure; (15) the level of non-performing assets on Busey’s balance sheets; (16) interruptions involving information technology and communications systems or third-party servicers; (17) breaches or failures of information security controls or cybersecurity-related incidents; (18) the economic impact on Busey and its customers of climate change, natural disasters, and exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts; (19) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact Busey’s cost of funds; (20) the ability to maintain an adequate level of allowance for credit losses on loans; (21) the effectiveness of Busey’s risk management framework; and (22) the ability of Busey to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

    Additional information concerning Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission.

    END NOTES

    1 Annualized measure.
    2 Represents a non-GAAP financial measure. For a reconciliation to the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”), see “Non-GAAP Financial Information.”
    3 The blended benchmark consists of 60% MSCI All Country World Index and 40% Bloomberg Intermediate US Government/Credit Total Return Index.
    4 Estimated uninsured and uncollateralized deposits consist of account balances in excess of the $250 thousand Federal Deposit Insurance Corporation insurance limit, less intercompany accounts, fully collateralized accounts (including preferred deposits), and pass-through accounts where clients have deposit insurance at the correspondent financial institution.
    5 On- and off-balance sheet liquidity is comprised of cash and cash equivalents, debt securities excluding those pledged as collateral, brokered deposits, and Busey’s borrowing capacity through its revolving credit facility, the FHLB, the Federal Reserve Bank, and federal funds purchased lines.
    6 Capital amounts and ratios for the first quarter of 2025 are not yet finalized and are subject to change.

    INVESTOR CONTACT: Scott A. Phillips, Interim Chief Financial Officer | 239-689-7167

    The MIL Network –

  • MIL-OSI: Helium Evolution Announces Filing of Annual 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, April 22, 2025 (GLOBE NEWSWIRE) — Helium Evolution Incorporated (TSXV:HEVI) (“HEVI” or the “Company“), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, today announced the filing of the Company’s annual financial statements and associated management’s discussion and analysis for the year ended December 31, 2024 (the “Annual Report”).

    Complete details of the Annual Report are available on SEDAR+ at www.sedarplus.ca, and on HEVI’s website.

    Three Months and Year Ended December 31, 2024 Highlights

      Three months ended Year ended
    Tabular amounts in thousands of
    Canadian Dollars, except share and per share amounts    		 December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023
    Financial        
    Net loss 713 1,719 1,391 2,953
    Net loss per share, basic and diluted 0.01 0.02 0.01 0.03
    Cash 3,829 6,330 3,829 6,330
    Working capital 3,166 5,743 3,166 5,743
    Total assets 10,601 11,639 10,601 11,639
    Total liabilities 906 872 906 872
    Weighted average shares outstanding 96,033,974 96,033,974    
    Basic and diluted1 96,033,974 96,033,974

    1The weighted average number of common shares outstanding is not increased for outstanding stock options and warrants when the effect is anti-dilutive.

    During the year ended December 31, 2024, HEVI remained focused on operational execution and disciplined growth. The Company closed the year with a strong financial foundation, including a positive working capital position of $3.2 million. Underscoring its momentum, HEVI announced a combined $4.8 million financing on March 10, 2025 and April 7, 2025, positioning the Company for additional development and drilling activity throughout 2025.

    Building upon past successes, HEVI, together with its partner, North American Helium Inc. (“NAH”), plan to expand its development efforts in the Mankota region, as shown in the adjacent map. To date, HEVI and NAH have successfully drilled six helium discovery wells, further validating the potential of the region. Additional drilling is scheduled for the second half of 2025.

    To support future production, NAH is actively pursuing the installation of a helium facility to tie-in the wells in the northern part of the discovery. The helium facility is expected to be operational in the fourth quarter of 2025, marking a major milestone for HEVI.

    “We are incredibly proud of the progress we made in 2024 and the strong foundation we’ve built for 2025,” said Greg Robb, President and CEO of HEVI. “With our helium discoveries, our strategic partnership with our newest shareholder and the anticipated commissioning of a helium facility later this year, HEVI is well-positioned to become a key player in the North American helium industry.”

    Stay Connected to Helium Evolution

    Shareholders and other parties interested in learning more about the Helium Evolution opportunity are encouraged to visit the Company’s website, which includes an updated corporate presentation, and are invited to follow the Company on LinkedIn and X for ongoing corporate updates and helium industry information. Helium Evolution also provides an extensive, commissioned ‘deep-dive’ research report prepared by a third party whose background includes serving as a research analyst for several bank-owned and independent investment dealers.

    About Helium Evolution Incorporated

    Helium Evolution is a Canadian-based helium exploration company holding the largest helium land rights position in North America among publicly-traded companies, focused on developing assets in southern Saskatchewan. The Company has over five million acres of land under permit near proven discoveries of economic helium concentrations which will support scaling the exploration and development efforts across its land base. HEVI’s management and board are executing a differentiated strategy to become a leading supplier of sustainably-produced helium for the growing global helium market.

    For further information, please contact:

    Statement Regarding Forward-Looking Information

    This news release contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.

    Forward-looking statements in this document include statements regarding the Company’s expectations regarding future production from the helium discovery wells, the Company’s expectations regarding scalable helium production from its land generally, the Company and/or NAH’s plans to drill more wells, completion of the financing as announced, installation of production facilities including the timing thereof, the Company becoming a leading supplier of sustainably-produced helium, timeline of future updates, the Company’s belief regarding becoming a key player in the North American helium industry, the Company’s beliefs regarding growth of the global helium market and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: NAH may be unsuccessful in drilling commercially productive wells; the Company and/or NAH may choose to defer, accelerate or abandon its exploration and development plans including future drilling; the Company and/or NAH may determine not to bring the helium wells onto production; the Company and/or NAH may abandon, defer or accelerate plans and decisions regarding production facilities; new laws or regulations and/or unforeseen events could adversely affect the Company’s business and results of operations; stock markets have experienced volatility that often has been unrelated to the performance of companies and such volatility may adversely affect the price of the Company’s securities regardless of its operating performance; risks generally associated with the exploration for and production of resources; the uncertainty of estimates and projections relating to expenses and the Company’s working capital position; constraint in the availability of services; commodity price and exchange rate fluctuations; adverse weather or break-up conditions; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

    When relying on forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and risks other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraphs will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/42ee5d3a-97d0-432b-8d88-13e070ae7bf3

    The MIL Network –

  • MIL-OSI: Baker Hughes Company Announces First-Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    First-quarter highlights

    • Orders of $6.5 billion, including $3.2 billion of IET orders.
    • RPO of $33.2 billion, including record IET RPO of $30.4 billion.
    • Revenue of $6.4 billion, consistent year-over-year.
    • Attributable net income of $402 million.
    • GAAP diluted EPS of $0.40 and adjusted diluted EPS* of $0.51.
    • Adjusted EBITDA* of $1,037 million, up 10% year-over-year.
    • Cash flows from operating activities of $709 million and free cash flow* of $454 million.
    • Returns to shareholders of $417 million, including $188 million of share repurchases.

    HOUSTON and LONDON, April 22, 2025 (GLOBE NEWSWIRE) — Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the first quarter of 2025.

    “Baker Hughes started the year strong, building on the positive momentum from 2024 and setting multiple first-quarter records. Our continued transformation initiatives and strong execution continue to drive structural margin improvement across both segments. The operational transformation and streamlining efforts have created a solid foundation to optimize margins and enhance returns, even in a challenging environment,” said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.

    “In our IET segment, we booked $3.2 billion of orders, including our first data center awards, totaling more than 350 MW of power solutions for this rapidly evolving market. In addition to expanding opportunities for data centers, we have a strong pipeline of LNG, FPSO and gas infrastructure projects that support our order outlook for this year.”

    “In OFSE, EBITDA remained resilient as our margins saw noticeable improvement compared to last year even while segment revenue fell. This is a testament to the team’s hard work in changing the way the business operates.”

    “Although our outlook is tempered by broader macro and trade policy uncertainty, we remain confident in our strategy and the resilience of our portfolio. We believe Baker Hughes is well positioned to navigate near-term challenges and deliver sustainable growth in shareholder value.”

    “I want to thank our employees, whose hard work, dedication and focus have been instrumental to the continued success of Baker Hughes. As we continue to execute our strategy amidst an uncertain macro backdrop, we remain committed to our customers, shareholders and employees,” concluded Simonelli.

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

      Three Months Ended   Variance
    (in millions except per share amounts) March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024    		   Sequential Year-over-
    year
    Orders $ 6,459 $ 7,496 $ 6,542   (14 %) (1 %)
    Revenue   6,427   7,364   6,418   (13 %) — %
    Net income attributable to Baker Hughes   402   1,179   455   (66 %) (12 %)
    Adjusted net income attributable to Baker Hughes*   509   694   429   (27 %) 19 %
    Adjusted EBITDA*   1,037   1,310   943   (21 %) 10 %
    Diluted earnings per share (EPS)   0.40   1.18   0.45   (66 %) (11 %)
    Adjusted diluted EPS*   0.51   0.70   0.43   (27 %) 19 %
    Cash flow from operating activities   709   1,189   784   (40 %) (10 %)
    Free cash flow*   454   894   502   (49 %) (10 %)

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.

    Quarter Highlights

    Baker Hughes expanded its leadership position in liquefied natural gas (“LNG”) in the first quarter, including a liquefaction train award from Bechtel for a project in North America, where the Company will provide four main refrigerant compressors driven by LM6000+ gas turbines and four expander-compressors. This award builds on the previously announced December 2024 award and further demonstrates the strength of the Company’s collaboration with Bechtel to support North America LNG development.

    During the quarter, Industrial & Energy Technology (“IET”) signed key strategic framework agreements with LNG operators. The Company agreed to provide gas turbines and refrigerant compressor technology, along with maintenance services, for Trains 4 to 8 of NextDecade’s Rio Grande LNG Facility. Baker Hughes also reached an agreement with Argent LNG to provide liquefaction and power solutions and related aftermarket services for its proposed 24 MTPA LNG export facility in Louisiana. The project will employ Baker Hughes’ NMBL™ modularized LNG solution, driven by the LM9000 gas turbine, while also utilizing the Company’s iCenter™ and Cordant™ digital solution, to enhance the plant’s operational efficiency.

    Baker Hughes also demonstrated its continuous commitment to critical gas infrastructure projects with a strategic win in the North America pipeline compression market. The award includes the provision of two gas compression stations for a total of 10 Frame 5/2E gas turbines and 10 centrifugal compressors, anti-surge valves and critical spare parts.

    In the first quarter, Baker Hughes made significant progress in reliable and sustainable power solutions deployment for data centers. In addition to being awarded over 350 MW of NovaLT™ turbines to power data centers with various other customers, the Company partnered with Frontier Infrastructure to accelerate the development of large-scale carbon capture and storage (“CCS”) and power solutions for data centers and industrial customers in the U.S. This partnership will leverage technologies and services across the Baker Hughes enterprise by providing CO₂ compression, NovaLT™ gas turbines, digital monitoring solutions, well construction and completion services.

    In continued demonstration of Gas Technology’s lifecycle offerings in IET, the Company received several aftermarket service awards during the quarter. In Algeria, the Gas Technology Services (“GTS”) team is partnering with SONATRACH to deliver an upgrade solution for the modernization of a key compressor station. In the Middle East, Gas Technology received multiple equipment and services awards to support one of the world’s largest gas processing plants. The scope includes rejuvenation of two existing gas turbines to drive new compressors and the supply of a third compression train to support production expansion.

    IET’s Industrial Solutions gained momentum with its Cordant™ Asset Performance Management (“APM”) solution, securing several contracts with customers across multiple regions. ADNOC Offshore will deploy the full APM suite to enhance production availability and efficiency. In the Americas, a large international oil company will conduct a proof of concept across multiple equipment trains, to support a shift from proactive to predictive maintenance. In Australia, the Company signed agreements to develop asset maintenance strategies for new mine sites supporting truck fleet maintenance.

    Oilfield Services & Equipment (“OFSE”) received a significant award from ExxonMobil Guyana to provide specialty chemicals and related services for its Uaru and Whiptail offshore greenfield developments in the country’s prolific Stabroek Block, highlighting the differentiated capabilities of our Production Solutions offering. For this multi-year contract, the scope will cover topsides, subsea, water injection and utility chemicals to help ExxonMobil Guyana achieve optimal production.

    OFSE continues to leverage the Company’s innovative solutions to help Petrobras unlock Brazil’s vast energy supply. In the quarter and following an open tender, Baker Hughes received a significant, multi-year fully integrated completions systems contract from Petrobras across multiple deepwater fields. A range of Baker Hughes’ technologies, including the new SureCONTROLTM Premium interval control valve, has been specifically tailored to meet the needs of the country’s offshore developments.

    OFSE secured a multi-year contract with Dubai Petroleum Establishment, for and on behalf of Dubai Supply Authority, to provide integrated coiled-tubing drilling services for the Company’s Margham Gas storage project. This follows a third-quarter 2024 IET award for integrated compressor line units for the same project, demonstrating growing commercial synergies across Baker Hughes’ diverse portfolio.

    The Company drove growth in Mature Assets Solutions, signing a multi-year framework agreement with Equinor to help establish a new Center of Excellence for Plug & Abandonment work in the North Sea. Based within OFSE’s operations in Bergen and Stavanger, Norway, this hub will ensure economical, reliable solutions are implemented to responsibly abandon each well, allowing Equinor to maximize value of their assets and allocate more resources to exploration and discovery.

    On the digital front, OFSE received an award from the State Oil Company of Azerbaijan Republic (“SOCAR”) to expand deployment of Leucipa™ automated field production solution for all its wells, including those with non-Baker Hughes electric submersible pumps, in the Absheron and Gunseli fields. Leucipa also marked its first deployment in Sub-Saharan Africa through an agreement with the NNPC/FIRST E&P joint venture, which will utilize the platform across its offshore wells in the Niger Delta.

    Consolidated Financial Results

    Revenue for the quarter was $6,427 million, a decrease of 13% sequentially and up $9 million year-over-year. The increase in revenue year-over-year was driven by an increase in IET and partially offset by a decrease in OFSE.

    The Company’s total book-to-bill ratio in the first quarter of 2025 was 1.0; the IET book-to-bill ratio was 1.1.

    Net income as determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”), for the first quarter of 2025 was $402 million. Net income decreased $777 million sequentially and decreased $53 million year-over-year.

    Adjusted net income (a non-GAAP financial measure) for the first quarter of 2025 was $509 million, which excludes adjustments totaling $108 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted net income for the first quarter of 2025 was down 27% sequentially and up 19% year-over-year.

    Depreciation and amortization for the first quarter of 2025 was $285 million.

    Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2025 was $1,037 million, which excludes adjustments totaling $140 million. See Table 1a in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted EBITDA for the first quarter was down 21% sequentially and up 10% year-over-year.

    The sequential decrease in adjusted net income and adjusted EBITDA was primarily driven by lower volume in both segments, partially offset by productivity and structural cost-out initiatives. The year-over-year increase in adjusted net income and adjusted EBITDA was driven by increased volume in IET including higher proportionate growth in Gas Technology Equipment (“GTE”) and productivity, structural cost-out initiatives and higher pricing in both segments, partially offset by decreased volume and business mix in OFSE and cost inflation in both segments.

    Other Financial Items

    Remaining Performance Obligations (“RPO”) in the first quarter of 2025 ended at $33.2 billion, a decrease of $0.1 billion from the fourth quarter of 2024. OFSE RPO was $2.8 billion, down 7% sequentially, while IET RPO was $30.4 billion, up $300 million sequentially. Within IET RPO, GTE RPO was $11.9 billion and GTS RPO was $15.1 billion.

    Income tax expense in the first quarter of 2025 was $152 million.

    Other (income) expense, net in the first quarter of 2025 was $140 million, primarily related to changes in fair value for equity securities of $140 million.

    GAAP diluted earnings per share was $0.40. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.51. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Cash flow from operating activities was $709 million for the first quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $454 million. A reconciliation from GAAP has been provided in Table 1c in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Capital expenditures, net of proceeds from disposal of assets, were $255 million for the first quarter of 2025, of which $158 million was for OFSE and $83 million was for IET.

    Results by Reporting Segment

    The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

    Oilfield Services & Equipment

    (in millions) Three Months Ended   Variance
    Segment results March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024    		   Sequential Year-over-
    year
    Orders $ 3,281   $ 3,740   $ 3,624     (12 %) (9 %)
    Revenue $ 3,499   $ 3,871   $ 3,783     (10 %) (8 %)
    EBITDA $ 623   $ 755   $ 644     (18 %) (3 %)
    EBITDA margin   17.8 %   19.5 %   17.0 %   -1.7pts 0.8pts
    (in millions) Three Months Ended   Variance
    Revenue by Product Line March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024    		   Sequential Year-over-
    year
    Well Construction $ 892 $ 943 $ 1,061   (5 %) (16 %)
    Completions, Intervention, and Measurements   925   1,022   1,006   (9 %) (8 %)
    Production Solutions   899   974   945   (8 %) (5 %)
    Subsea & Surface Pressure Systems   782   932   771   (16 %) 1 %
    Total Revenue $ 3,499 $ 3,871 $ 3,783   (10 %) (8 %)
    (in millions) Three Months Ended   Variance
    Revenue by Geographic Region March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024    		   Sequential Year-over-
    year
    North America $ 922 $ 971 $ 990   (5 %) (7 %)
    Latin America   568   661   637   (14 %) (11 %)
    Europe/CIS/Sub-Saharan Africa   580   740   750   (22 %) (23 %)
    Middle East/Asia   1,429   1,499   1,405   (5 %) 2 %
    Total Revenue $ 3,499 $ 3,871 $ 3,783   (10 %) (8 %)
                 
    North America $ 922 $ 971 $ 990   (5 %) (7 %)
    International $ 2,577 $ 2,900 $ 2,793   (11 %) (8 %)

    EBITDA excludes depreciation and amortization of $226 million, $229 million, and $222 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    OFSE orders of $3,281 million for the first quarter of 2025 decreased by 12% sequentially. Subsea and Surface Pressure Systems orders were $532 million, down 34% sequentially, and down 16% year-over-year.

    OFSE revenue of $3,499 million for the first quarter of 2025 was down 10% sequentially, and down 8% year-over-year.

    North America revenue was $922 million, down 5% sequentially. International revenue was $2,577 million, down 11% sequentially, with declines across all regions.

    Segment EBITDA for the first quarter of 2025 was $623 million, a decrease of $132 million, or 18% sequentially. The sequential decrease in EBITDA was primarily driven by lower volume, partially mitigated by productivity from structural cost-out initiatives.

    Industrial & Energy Technology

    (in millions) Three Months Ended   Variance
    Segment results March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024    		   Sequential Year-over-
    year
    Orders $ 3,178   $ 3,756   $ 2,918     (15 %) 9 %
    Revenue $ 2,928   $ 3,492   $ 2,634     (16 %) 11 %
    EBITDA $ 501   $ 639   $ 386     (22 %) 30 %
    EBITDA margin   17.1 %   18.3 %   14.7 %   -1.2pts 2.4pts
    (in millions) Three Months Ended   Variance
    Orders by Product Line March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024    		   Sequential Year-over-
    year
    Gas Technology Equipment $ 1,335 $ 1,865 $ 1,230   (28 %) 9 %
    Gas Technology Services   913   902   692   1 % 32 %
    Total Gas Technology   2,248   2,767   1,922   (19 %) 17 %
    Industrial Products   501   515   546   (3 %) (8 %)
    Industrial Solutions   281   320   257   (12 %) 10 %
    Total Industrial Technology   782   835   803   (6 %) (3 %)
    Climate Technology Solutions   148   154   193   (4 %) (23 %)
    Total Orders $ 3,178 $ 3,756 $ 2,918   (15 %) 9 %
    (in millions) Three Months Ended   Variance
    Revenue by Product Line March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024    		   Sequential Year-over-
    year
    Gas Technology Equipment $ 1,456 $ 1,663 $ 1,210   (12 %) 20 %
    Gas Technology Services   592   796   614   (26 %) (4 %)
    Total Gas Technology   2,047   2,459   1,824   (17 %) 12 %
    Industrial Products   445   548   462   (19 %) (4 %)
    Industrial Solutions   258   282   265   (8 %) (2 %)
    Total Industrial Technology   703   830   727   (15 %) (3 %)
    Climate Technology Solutions   178   204   83   (13 %) 114 %
    Total Revenue $ 2,928 $ 3,492 $ 2,634   (16 %) 11 %

    EBITDA excludes depreciation and amortization of $53 million, $56 million, and $56 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    IET orders of $3,178 million for the first quarter of 2025 increased by $260 million, or 9% year-over-year. The increase was driven primarily by Gas Technology, up $326 million or 17% year-over-year.

    IET revenue of $2,928 million for the first quarter of 2025 increased $294 million, or 11% year-over-year. The increase was driven by Gas Technology Equipment, up $246 million or 20% year-over-year, and Climate Technology Solutions, up $95 million or 114% year-over-year.

    Segment EBITDA for the quarter was $501 million, an increase of $114 million, or 30% year-over-year. The year-over-year increase in segment EBITDA was driven by productivity, positive pricing and increased volume including higher proportionate growth in GTE, partially offset by cost inflation.

    Reconciliation of GAAP to non-GAAP Financial Measures

    Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

    Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA

      Three Months Ended
    (in millions) March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Net income attributable to Baker Hughes (GAAP) $ 402 $ 1,179   $ 455  
    Net income attributable to noncontrolling interests   7   11     8  
    Provision (benefit) for income taxes   152   (398 )   178  
    Interest expense, net   51   54     41  
    Depreciation & amortization   285   291     283  
    Restructuring   —   258     —  
    Inventory impairment(1)   —   73     —  
    Change in fair value of equity securities(2)   140   (196 )   (52 )
    Other charges and credits(2)   —   38     30  
    Adjusted EBITDA (non-GAAP)   1,037   1,310     943  
    Corporate costs   85   84     88  
    Other income / (expense) not allocated to segments   1   —     —  
    Total Segment EBITDA (non-GAAP) $ 1,124 $ 1,394   $ 1,030  
    OFSE   623   755     644  
    IET   501   639     386  

    (1) Charges for inventory impairments are reported in “Cost of goods sold” in the condensed consolidated statements of income (loss).

    (2) Change in fair value of equity securities and other charges and credits are reported in “Other (income) expense, net” on the condensed consolidated statements of income (loss).

    Table 1a reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.

    Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

      Three Months Ended
    (in millions, except per share amounts) March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Net income attributable to Baker Hughes (GAAP) $ 402   $ 1,179   $ 455  
    Restructuring   —     258     —  
    Inventory impairment   —     73     —  
    Change in fair value of equity securities   140     (196 )   (52 )
    Other adjustments   —     30     32  
    Tax adjustments(1)   (32 )   (650 )   (6 )
    Total adjustments, net of income tax   108     (485 )   (26 )
    Less: adjustments attributable to noncontrolling interests   —     —     —  
    Adjustments attributable to Baker Hughes   108     (485 )   (26 )
    Adjusted net income attributable to Baker Hughes (non-GAAP) $ 509   $ 694   $ 429  
           
    Denominator:      
    Weighted-average shares of Class A common stock outstanding diluted   999     999     1,004  
    Adjusted earnings per share – diluted (non-GAAP) $ 0.51   $ 0.70   $ 0.43  

    (1) All periods reflect the tax associated with the other (income) loss adjustments.

    Table 1b reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

    Table 1c. Reconciliation of Net Cash Flows From Operating Activities to Free Cash Flow

      Three Months Ended
    (in millions) March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Net cash flows from operating activities (GAAP) $ 709   $ 1,189   $ 784  
    Add: cash used for capital expenditures, net of proceeds from disposal of assets   (255 )   (295 )   (282 )
    Free cash flow (non-GAAP) $ 454   $ 894   $ 502  

    Table 1c reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.

     
    Financial Tables (GAAP)
     
    Condensed Consolidated Statements of Income (Loss)
     
    (Unaudited)
     
      Three Months Ended March 31,
    (In millions, except per share amounts)   2025     2024  
    Revenue $ 6,427   $ 6,418  
    Costs and expenses:    
    Cost of revenue   4,952     4,976  
    Selling, general and administrative   577     618  
    Research and development costs   146     164  
    Other (income) expense, net   140     (22 )
    Interest expense, net   51     41  
    Income before income taxes   561     641  
    Provision for income taxes   (152 )   (178 )
    Net income   409     463  
    Less: Net income attributable to noncontrolling interests   7     8  
    Net income attributable to Baker Hughes Company $ 402   $ 455  
         
    Per share amounts:  
    Basic income per Class A common stock $ 0.41   $ 0.46  
    Diluted income per Class A common stock $ 0.40   $ 0.45  
         
    Weighted average shares:    
    Class A basic   992     998  
    Class A diluted   999     1,004  
         
    Cash dividend per Class A common stock $ 0.23   $ 0.21  
         
    Condensed Consolidated Statements of Financial Position
     
    (Unaudited)
     
    (In millions) March 31, 2025 December 31, 2024
    ASSETS
    Current Assets:    
    Cash and cash equivalents $ 3,277 $ 3,364
    Current receivables, net   6,710   7,122
    Inventories, net   5,161   4,954
    All other current assets   1,693   1,771
    Total current assets   16,841   17,211
    Property, plant and equipment, less accumulated depreciation   5,168   5,127
    Goodwill   6,126   6,078
    Other intangible assets, net   3,927   3,951
    Contract and other deferred assets   1,680   1,730
    All other assets   4,368   4,266
    Total assets $ 38,110 $ 38,363
    LIABILITIES AND EQUITY
    Current Liabilities:    
    Accounts payable $ 4,465 $ 4,542
    Short-term debt   55   53
    Progress collections and deferred income   5,589   5,672
    All other current liabilities   2,485   2,724
    Total current liabilities   12,594   12,991
    Long-term debt   5,969   5,970
    Liabilities for pensions and other postretirement benefits   985   988
    All other liabilities   1,356   1,359
    Equity   17,206   17,055
    Total liabilities and equity $ 38,110 $ 38,363
         
    Outstanding Baker Hughes Company shares:    
    Class A common stock   990   990
    Condensed Consolidated Statements of Cash Flows
     
    (Unaudited)
      Three Months Ended March 31,
    (In millions)   2025     2024  
    Cash flows from operating activities:    
    Net income $ 409   $ 463  
    Adjustments to reconcile net income to net cash flows from operating activities:    
    Depreciation and amortization   285     283  
    Stock-based compensation cost   50     51  
    Change in fair value of equity securities   140     (52 )
    Benefit for deferred income taxes   (53 )   (24 )
    Working capital   218     209  
    Other operating items, net   (340 )   (146 )
    Net cash flows provided by operating activities   709     784  
    Cash flows from investing activities:    
    Expenditures for capital assets   (300 )   (333 )
    Proceeds from disposal of assets   45     51  
    Other investing items, net   (55 )   13  
    Net cash flows used in investing activities   (310 )   (269 )
    Cash flows from financing activities:    
    Dividends paid   (229 )   (210 )
    Repurchase of Class A common stock   (188 )   (158 )
    Other financing items, net   (85 )   (59 )
    Net cash flows used in financing activities   (502 )   (427 )
    Effect of currency exchange rate changes on cash and cash equivalents   16     (17 )
    Increase (decrease) in cash and cash equivalents   (87 )   71  
    Cash and cash equivalents, beginning of period   3,364     2,646  
    Cash and cash equivalents, end of period $ 3,277   $ 2,717  
    Supplemental cash flows disclosures:    
    Income taxes paid, net of refunds $ 207   $ 108  
    Interest paid $ 50   $ 48  

    Supplemental Financial Information

    Supplemental financial information can be found on the Company’s website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

    Conference Call and Webcast

    The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Wednesday, April 23, 2025, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company’s website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.

    Forward-Looking Statements

    This news release (and oral statements made regarding the subjects of this release) may contain 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, (each a “forward-looking statement”). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “would,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target,” “goal” or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s annual report on Form 10-K for the annual period ended December 31, 2024 and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). The documents are available through the Company’s website at: www.investors.bakerhughes.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

    Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

    These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

    • Economic and political conditions – the impact of worldwide economic conditions and rising inflation; the impact of tariffs and the potential for significant increases thereto; the impact of global trade policy and the potential for significant changes thereto; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
    • Orders and RPO – our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
    • Oil and gas market conditions – the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.
    • Terrorism and geopolitical risks – war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

    About Baker Hughes:

    Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

    For more information, please contact:

    Investor Relations

    Chase Mulvehill
    +1 346-297-2561
    investor.relations@bakerhughes.com 

    Media Relations

    Adrienne Lynch
    +1 713-906-8407 
    adrienne.lynch@bakerhughes.com 

    The MIL Network –

  • MIL-OSI: ECN Capital Schedules Q1-2025 Conference Call

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, April 22, 2025 (GLOBE NEWSWIRE) — ECN Capital Corp. (TSX: ECN) (“ECN Capital” or “the Company”) announced today that it intends to file its financial statements and management discussion and analysis for the three-month period ended March 31, 2025, after markets close on Thursday, May 8, 2025.

    The Company will host an analyst briefing to discuss these results commencing at 5:30 PM (ET) on Thursday, May 8, 2025. The call can be accessed as follows:

    A telephone replay of the conference call may also be accessed until June 8, 2025, by dialing 1-800-645-7964 and entering the passcode 5036#.

    About ECN Capital Corp.

    With managed assets of US$6.9 billion, ECN Capital Corp. (TSX: ECN) is a leading provider of business services to North American based banks, credit unions, life insurance companies, pension funds and institutional investors (collectively our “Partners”). ECN Capital originates, manages and advises on credit assets on behalf of its Partners, specifically consumer (manufactured housing and recreational vehicle and marine) loans and commercial (inventory finance and rental) loans. Our Partners are seeking high quality assets to match with their deposits, term insurance or other liabilities. These services are offered through two operating segments: (i) Manufactured Housing Finance, and (ii) Recreational Vehicles and Marine Finance.

    Contact
    Katherine Moradiellos
    561-631-8739
    kmoradiellos@ecncapitalcorp.com

    The MIL Network –

  • MIL-OSI: Willis Lease Finance Corporation Announces Timing of First Quarter 2025 Earnings and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    COCONUT CREEK, Fla., April 22, 2025 (GLOBE NEWSWIRE) — Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC”) plans to announce its financial results for the first quarter of 2025 on Tuesday, May 6, 2025.

    WLFC plans to hold a conference call led by members of WLFC’s executive management team on Tuesday, May 6, 2025, at 10:00 a.m. Eastern Daylight Time to discuss its first quarter 2025 results. Individuals wishing to participate in the conference call should dial: US and Canada (800) 289-0459, International +1 (646) 828-8082, wait for the conference operator and provide the operator with the Conference ID 578662. The conference call may also be accessed by registering via the following link: https://event.webcasts.com/starthere.jsp?ei=1716437&tp_key=f56060bee8. A digital replay will be available two hours after the completion of the conference call. To access the replay, please visit our website at www.wlfc.global under the Investor Relations section for details.

    A copy of this press release will be posted to the Investor Relations section of the Company’s website, www.wlfc.global, prior to the call.

    Willis Lease Finance Corporation

    Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair, and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.

    CONTACT: Scott B. Flaherty
      Executive Vice President & Chief Financial Officer
      sflaherty@willislease.com
      561.413.0112

    The MIL Network –

  • MIL-OSI: XploraDEX Commences 7-Day Token Distribution as $XPL Presale Remains Open for Early Adopters

    Source: GlobeNewswire (MIL-OSI)

    ZURICH, April 22, 2025 (GLOBE NEWSWIRE) — The long-awaited $XPL token distribution has officially begun, signaling a pivotal moment in the XploraDEX journey as the platform transitions from presale to active deployment. For the next 7 days, early investors will receive their tokens, while new participants still have a final opportunity to join the presale and secure their stake in the first AI-powered DEX on XRPL.

    As token allocations begin hitting wallets, the energy in the community is electric. After weeks of anticipation and record-breaking wallet signups, XploraDEX is delivering on its roadmap—starting with the real-time distribution of $XPL to thousands of early supporters around the world.

    Join $XPL Presale

    Unlike other presales that delay activation, XploraDEX is going live during its token distribution window. Investors can still enter at presale pricing while rewards, staking, and onboarding processes roll out. It’s a unique dual-phase designed to offer latecomers one last chance to secure $XPL before listings go public.

    What’s happening now:

    • $XPL tokens are being distributed across all eligible wallets
    • The final 7-day presale window is live and counting down
    • Staking modules and governance onboarding will activate post-distribution
    • A curated batch of users will preview AI trading dashboards

    Participate in $XPL Presale

    With a huge number of $XPL allocation already claimed, this week represents the final chance for investors to join XploraDEX before the price adjusts to market-driven dynamics on decentralized exchanges. Once the presale ends, the open trading era begins—at a premium.

    Why now is the time to act:

    • First access to smart AI trading tools and staking rewards
    • Lowest token price before public listings
    • Governance power to shape the protocol’s direction
    • Priority launchpad entry for future token projects built on XRPL

    Purchase $XPL Tokens

    The XploraDEX ecosystem is built on speed, intelligence, and community. With its AI-driven infrastructure, the platform is poised to give XRPL traders a smarter, faster, and more data-rich trading experience than ever before.

    This is not just the next chapter for XploraDEX—it’s the ignition. The next 7 days will define who enters early and who enters late. And in DeFi, timing is everything.

    Secure Your $XPL Tokens Before the Presale Closes: https://sale.xploradex.io

    Live Updates on Launch: Website | $XPL Token Presale | X | Telegram

    Contact:
    Oliver Muller
    oliver@xploradex.io
    contact@xploradex.io

    Disclaimer: This press release is provided by the XploraDEX. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice.

    Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of capital. It is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector—including cryptocurrency, NFTs, and mining—complete accuracy cannot always be guaranteed.

    Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release. In the event of any legal claims or charges against this article, we accept no liability or responsibility.

    Legal Disclaimer: This media platform provides the content of this article on an “as-is” basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7e7224d5-c160-4dee-9236-a27e1da8dda9

    The MIL Network –

  • MIL-Evening Report: These 3 climate misinformation campaigns are operating during the election run-up. Here’s how to spot them

    Source: The Conversation (Au and NZ) – By Alfie Chadwick, PhD Candidate, Monash Climate Change Communication Research Hub, Monash University

    Australia’s climate and energy wars are at the forefront of the federal election campaign as the major parties outline vastly different plans to reduce greenhouse gas emissions and tackle soaring power prices.

    Meanwhile, misinformation about climate change has permeated public debate during the campaign, feeding false and misleading claims about renewable energy, gas and global warming.

    This is a dangerous situation. In Australia and globally, rampant misinformation has for decades slowed climate action – creating doubt, hindering decision-making and undermining public support for solutions.

    Here, we explain the history of climate misinformation in Australia and identify three prominent campaigns operating now. We also outline how Australians can protect themselves from misinformation as they head to the polls.

    Misinformation vs disinformation

    Misinformation is defined as false information spread unintentionally. It is distinct from disinformation, which is deliberately created to mislead.

    However, proving intent to mislead can be challenging. So, the term misinformation is often used as a general term to describe misleading content, while the term disinformation is reserved for cases where intent is proven.

    Disinformation is typically part of a coordinated
    campaign     to influence public opinion. Such campaigns can be run by corporate interests, political groups, lobbying organisations or individuals.

    Once released, these false narratives may be picked up by others, who pass them on and create misinformation.

    Climate change misinformation in Australia

    In the 1980s and 1990s, Australia’s emissions-reduction targets were among the most ambitious in the world.

    At the time, about 60 companies were responsible for one-third of Australia’s greenhouse gas emissions. The government’s plan included measures to ensure these companies remained competitive while reducing their climate impact.

    Despite this, Australia’s resource industry began a concerted media campaign to oppose any binding emissions-reduction actions, claiming it would ruin the economy by making Australian businesses uncompetitive.

    This narrative persisted even when modelling repeatedly showed climate policies would have minimal economic impacts. The industry arguments eventually found their way into government policy.

    Momentum against climate action was also fuelled by a vocal group of climate change-denying individuals and organisations, often backed by multinational fossil fuel companies. These deniers variously claimed climate change wasn’t happening, it was caused by natural cycles, or wasn’t that a serious threat.

    These narratives were further exacerbated by false balance in media coverage, whereby news outlets, in an effort to appear neutral, often placed climate scientists alongside contrarians, giving the impression that the science was still unclear.

    Together, this created an environment in Australia where climate action was seen as either too economically damaging or simply unnecessary.

    What’s happening in the federal election campaign?

    Climate misinformation has been circulating in the following forms during this federal election campaign.

    1. Trumpet of Patriots

    Clive Palmer’s Trumpet of Patriots party ran an advertisement that claimed to expose “ the truth about climate change”. It featured a clip from a 2004 documentary, in which a scientist discusses data suggesting temperatures in Greenland were not rising. The scientist in the clip has since said his comments are now outdated.

    The type of misinformation is cherry-picking – presenting one scientific measurement at odds with the overwhelming scientific consensus.

    Google removed the ad after it was flagged as misleading, but only after it received 1.9 million views.

    2. Responsible Future Illawarra

    The Responsible Future campaign opposes wind turbines on various grounds, including cost, foreign ownership, power prices, effects on views and fishing, and potential ecological damage.

    Scientific evidence indicates offshore wind farms are relatively safe for marine life and cause less harm than boats and fishing gear. Some studies also suggest the infrastructure can create new habitat for marine life.

    However, a general lack of research into offshore wind and marine life has created uncertainty that groups such as Responsible Future Illawarra can exploit.

    It has cited statements by Sea Shepherd Australia to argue offshore wind farms damage marine life – however Sea Shepherd said its comments were misrepresented.

    The group also appears to have deliberately spread disinformation. This includes citing a purported research paper saying offshore wind turbines would kill up to 400 whales per year, when the paper does not exist.

    3. Australians for Natural Gas

    Australians for Natural Gas is a pro-gas group set up by the head of a gas company, which presents itself as a grassroots organisation. Its advertising campaign promotes natural gas as a necessary part of Australia’s fuel mix, and stresses its contribution to jobs and the economy.

    The ad campaign implicitly suggests climate action – in this case, a shift to renewable energy – is harmful to the economy, livelihoods and energy security. According to Meta’s Ad Library, these adds have already been seen more than 1.1 million times.

    Gas is needed in Australia’s current energy mix. But analysis shows it could be phased out almost entirely if renewable energy and storage was sufficiently increased and business and home electrification continues to rise.

    And of course, failing to tackle climate change will cause substantial harm across Australia’s economy.

    How to identify misinformation

    As the federal election approaches, climate misinformation and disinformation is likely to proliferate further. So how do we distinguish fact from fiction?

    One way is through “pre-bunking” – familiarising yourself with common claims made by climate change deniers to fortify yourself against misinformation

    Sources such as Skeptical Science offer in-depth analyses of specific claims.

    The SIFT method is another valuable tool. It comprises four steps:

    • Stop
    • Investigate the source
    • Find better coverage
    • Trace claims, quotes and media to their original sources.

    As the threat of climate change grows, a flow of accurate information is vital to garnering public and political support for vital policy change.

    Alfie Chadwick is a recipient of an Australian Government Research Training Program (RTP) Scholarship.

    Libby Lester receives funding from the Australian Research Council.

    – ref. These 3 climate misinformation campaigns are operating during the election run-up. Here’s how to spot them – https://theconversation.com/these-3-climate-misinformation-campaigns-are-operating-during-the-election-run-up-heres-how-to-spot-them-253441

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Security: Statement Of United States Attorney Jay Clayton

    Source: Office of United States Attorneys

    I am honored to serve as United States Attorney for the Southern District of New York, alongside the women and men of the U.S. Attorney’s Office, an institution synonymous with excellence and integrity.  I would like to thank President Trump and Attorney General Bondi for this remarkable opportunity.  Along with the talented prosecutors of this Office and our law enforcement partners, I look forward to protecting public safety, combatting fraud, particularly on the elderly and most vulnerable, ensuring the integrity of our financial system, and defending our national security. Finally, I want to thank Acting United States Attorney Matthew Podolsky for his leadership and service.

    MIL Security OSI –

  • MIL-OSI USA: Statement from Governor Phil Scott Regarding Migrant Workers Apprehended in Franklin County

    Source: US State of Vermont

    Montpelier, Vt. – Governor Phil Scott today issued the following statement:

    “Earlier today, my team became aware of migrant workers in Franklin County who were apprehended by Border Patrol agents yesterday. We are continuing to collect information to better understand the circumstances and facts.

    “I have long been clear: migrant workers are an essential part of our communities. They are our neighbors and friends, have kids in our schools, shop at our businesses, and play an important role in our economy and workforce. 

    “It’s far past time for Congress and the President to pass comprehensive immigration reform that would allow pathways to citizenship and greater opportunities for law abiding, hardworking individuals to earn a living in our state, rather than being forced to live in the shadows. Vermont will continue to be a welcoming place for those who are seeking a better life and greater opportunities. It’s time for the federal government to put politics aside and truly make America the envy of the world once again.”

    ###

    MIL OSI USA News –