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Category: Finance

  • MIL-OSI: RecycLiCo Battery Materials Mutual Termination of Taiwan Joint Venture with Zenith Chemical Corporation

    Source: GlobeNewswire (MIL-OSI)

    SURREY, British Columbia, April 29, 2025 (GLOBE NEWSWIRE) — RecycLiCo Battery Materials Inc. (“RecycLiCo” or the “Company”) (TSX.V: AMY | OTCQB: AMYZF | FSE: ID4), a pioneer in sustainable lithium-ion battery recycling and upcycling technologies, today announced that the Company and its joint venture partner Zenith Chemical Corporation (“Zenith”) have jointly determined to abandon the construction of a battery recycling facility in Taiwan and have entered into a definitive Mutual Release and Termination Agreement (the “Agreement”) to unwind their previously established joint venture Company.

    Under the terms of the Agreement, RecycLiCo will sell to Zenith its entire interest in 3,000,000 common shares of the joint venture company, RecycLiCo Zenith Battery Materials Technology Co., for gross proceeds of USD $581,114.08. As additional consideration, Zenith will return to RecycLiCo 4,000,000 RecycLiCo common shares and 6,000,000 share purchase warrants previously issued under the Agreement. RecycLiCo has retained ownership of its technology. The Agreement was executed on April 28, 2025, and will close following receipt of required regulatory approval from the Department of Investment Review in Taiwan.

    The Agreement provides for the full and final settlement of all rights and obligations between the parties relating to the joint venture. Effective as of the closing date, Zenith will assume full ownership of the joint venture and will take steps to discontinue the use of the RecycLiCo name and dissolve the joint venture company pursuant to applicable Taiwanese regulations.

    “This decision reflects a mutual recognition by both Zenith and the Company of the evolving world economic and geopolitical environment,” said Richard Sadowsky, Interim Chief Executive Officer of RecycLiCo. “Market conditions are not what they were in 2022 when the original joint venture feasibility study was conducted. There have been changes in battery material supply streams and increased capitalization costs relative to the initial projections, which were prepared during a period of elevated lithium prices. We thank our partners at Zenith for their support and collaboration.”

    “The Company remains firmly committed to its global commercialization strategy and focus on flexible, capital-efficient growth. By eliminating the capital commitments associated with the joint venture, we have significantly strengthened our cash position and extended our financial runway to nearly a decade at current spending levels. We can now direct more resources toward enhancing our scientific and technical capacity and exploiting opportunities in our core growth markets, including potential strategic investments in companies with complementary technology.“

    About RecycLiCo        

    RecycLiCo Battery Materials Inc. is a battery materials company specializing in sustainable lithium-ion battery upcycling and materials production. RecycLiCo has developed advanced technologies that efficiently recover battery-grade materials from lithium-ion batteries, addressing the global demand for environmentally friendly solutions in energy storage. With minimal processing steps and up to 99% extraction of lithium, cobalt, nickel, and manganese. RecycLiCo’s hydrometallurgical process turns lithium-ion battery waste into battery-grade cathode precursor, lithium hydroxide, and lithium carbonate for direct integration into the re- manufacturing of new lithium-ion batteries.

    For more information, please contact:
    Paola Ashton
    PRA Communications
    Telephone: 604-681-1407
    Email: pashton@pracommunications.com

    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. This news release may contain “forward-looking statements”, which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward–looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.

    The MIL Network –

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

    US Senate News:

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

    MIL OSI USA News –

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

    US Senate News:

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

    MIL OSI USA News –

  • MIL-OSI Security: Buffalo man going to prison for 20 years for sex trafficking minors

    Source: Office of United States Attorneys

    BUFFALO, N.Y. – U.S. Attorney Michael DiGiacomo announced today that Steven Gonzalez a/k/a Steven Hernandez, a/k/a Steve, a/k/a Stevie, a/k/a Unc, 48, of Buffalo, NY, who was convicted of sex trafficking by coercion, was sentenced to serve 240 months in prison by U.S. District Judge John L. Sinatra, Jr.

    Assistant U.S. Attorneys Joel L. Violanti, Caitlin M. Higgins, Joseph Tripi and Joshua Violanti, who handled the case, stated that between 2012 and March 2015, Gonzalez coerced a minor, identified as A.N., to engage in commercial sex acts. Gonzalez provided A.N. with cocaine in exchange for sex knowing that A.N. was physically addicted to cocaine. Gonzalez used A.N.’s addiction to cocaine and other drugs to keep A.N. dependent on himself and to coerce A.N. to engage in commercial sex acts with him directly.

    In addition, between 2012 and 2013, Gonzalez coerced another individual, identified as B.E., to engage in commercial sex acts. Gonzalez provided B.E. with heroin in exchange for sex, knowing that B.E. was physically addicted to heroin. Gonzalez used B.E.’s addiction to keep B.E. dependent on himself and to coerce B.E. to engage in commercial sex acts with him directly.

    The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.

    MIL Security OSI –

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

    Source: Office of United States Attorneys

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

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

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

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

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

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

    • U.S. v. Roberto Lopez, Kenia Carrillo, Lester Hedman Safont, Oreste Ruiz Linares, Honolio Navarro Caballero, Barbara Alvarez, Javier Pico, Alfredo Contrera, and Erisbel Gonzalez Gomez, Case No. 22-cr-20368; 

    • U.S. v. Nancy Bahos Serna, Case No. 23-cr-20310;

    • U.S. v. Jorge Trueba Lopez, Case No. 21-cr-20382;

    • U.S. v. Nancy Saavedra Torres, Case No. 21-cr-20225;

    • U.S. v. Giraldo Caraballo, Case No. 21-cr-20264;

    • U.S. v. Felix Martinez and Yailin Perez, Case No. 21-cr-20276;

    • U.S. v. Yoliesse Sarmiento Carrion, Case No. 22-cr-20530;

    • U.S. v. Osiel Rodriguez Furgel, Case No. 21-cr-20251; and

    • U.S. v. Leonardo Gonzalez Lopez, Case No. 23-cr-20113.

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

    Approximately 22 people were charged and convicted in the conspiracy.

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

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

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

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

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

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

    ###

    MIL Security OSI –

  • MIL-OSI United Nations: Deputy Secretary-General’s remarks at the closing of the 2025 ECOSOC Forum on Financing for Development [as prepared for delivery]

    Source: United Nations secretary general

    H.E. Mr. Bob Rae, President of ECOSOC, Excellencies, Dear Colleagues,

    As we conclude this year’s Financing for Development Forum, I will not offer a summary – but rather sound an urgent call to action, as we consider the critical decisions ahead of us in the FfD4 process.

    Tomorrow marks the beginning of the fourth preparatory committee session, followed by the second intersessional to advance negotiations on the outcome document.

    The renewed global financing framework that we are about to deliver has to meet the scale and urgency of the moment.

    Over the past two days, we have heard, again and again, that we are in the midst of a development crisis.

    At its core, exacerbated by geopolitical tensions, lies a chronic failure of the global financial system to deliver adequate, equitable, and predictable financing to those who need it most.

    Yet if we act with determination and solidarity, the Sevilla conference can mark a historic breakthrough.

    As we’ve heard, we must deliver a more effective, inclusive, and responsive financing system – one that moves resources towards clear outcomes, and delivers real results on the ground.

    This means aligning financial flows with real development gains – and ensuring they reach the communities, countries, and sectors where the needs are greatest.

    We also need to change how we think about financing.

    It cannot be fragmented.

    Financing must be a catalyst for transformation – designed to put economies onto more sustainable, equitable, and resilient pathways.

    And it should reflect the leadership and priorities of developing countries – placing them at the center of decision-making.

    Their role is not to follow, but to shape the agenda – and their future – through fair access to resources and enhanced capacity to thrive in the global economy.

    Encouragingly, the draft outcome document already points in the right direction.

    It includes proposals for expanding the role of public development banks, reducing the cost of capital, scaling up liquidity management support, and reinforcing the global financial safety net.

    It also sets out critical reforms to the international debt architecture and calls for more inclusive and representative global economic governance.

    But turning these reforms from paper to practice will require your continued leadership and engagement.

    I invite you to take part in the Sevilla Platform for Action – which brings together governments and other key stakeholders to launch high-impact initiatives aligned with the outcome of the conference.

    These efforts should be forward-looking, grounded in the UN Charter, and built around clear goals, concrete timelines, and dedicated resources.

    The submission window will open on May 1st.

    I encourage you to lead, to partner, and to mobilize.

    Let us turn commitments into coalitions – and ideas into implementation.

    Sevilla must be more than a conference.

    It must be a turning point – towards a new chapter in financing for development. Let’s seize this opportunity together.

    Thank you.

    MIL OSI United Nations News –

  • MIL-OSI USA: Warner, Colleagues Introduce Legislation to Address Housing Affordability Crisis

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner
    WASHINGTON —Today U.S. Sen. Mark R. Warner joined Sens. Todd Young (R-IN) and Maria Cantwell (D-WA) in introducing legislation to help build nearly 1.6 million new affordable homes over the next decade. The Affordable Housing Credit Improvement Act would lead to more affordable housing options for families and workers by expanding and strengthening the Low-Income Housing Tax Credit, our country’s most successful affordable housing program.
    Currently, nearly one-in-four renters, over 11 million families, spend more than half of their household income on rent, cutting into other essential expenses like child care, medication, groceries, and transportation. At the same time, over 600,000 Americans are experiencing homelessness on any given day, an increase over pre-COVID levels.
    Since its creation, the Housing Credit has built or restored more than 4 million affordable housing units, nearly 90 percent of all federally funded affordable housing during that time. Roughly nine million American households have benefitted from the credit, and the economic activity that it generated has supported 6.6 million jobs and spurred more than $746 billion in wages.
    “The Low-Income Housing Tax Credit is one of the most successful tools our country has to address the affordable housing crisis our communities are facing,” Sen. Warner said. “I’m proud to introduce bipartisan legislation to update and modernize this credit in order to build more homes, bring down costs, and tackle the growing demand for housing across the Commonwealth and the country.”
    More specifically, the Affordable Housing Credit Improvement Act would:
    Increase the number of credits available to states by 50 percent for the next two years and make the temporary 12.5 percent increase secured in 2018 permanent—which has already helped build more than 59,000 additional affordable housing units nationwide;
    Stabilize financing for workforce housing projects built using private activity bonds by decreasing the amount of private activity bonds needed to secure Housing Credit funding. As a result, projects would have to carry less debt, and more projects would be eligible to receive funding; and
    Improve the Housing Credit program to better serve veterans, victims of domestic violence, formerly homeless students, Native American communities, and rural Americans.
    Joining Sens. Warner, Young, and Cantwell in introducing this legislation are Sens. Marsha Blackburn (R-TN) and Ron Wyden (D-OR). The Affordable Housing Credit Improvement Act was also recently introduced in the House of Representatives by U.S. Reps. Darin LaHood (R-IL-16), Suzan DelBene (D-WA-01), Claudia Tenney (R-NY-24), Don Beyer (D-VA-08), Randy Feenstra (R-IA-04), and Jimmy Panetta (D-CA-19).
    The ACTION Campaign and the Affordable Housing Tax Credit Coalition endorsed the bill.
    “The reintroduction of the Affordable Housing Credit Improvement Act is a vital step toward addressing our nation’s housing crisis. Expanding the Housing Credit is the most effective way to increase the supply of affordable housing, leveraging public-private partnerships to build and preserve homes for working families, seniors, and vulnerable communities. At a time when rents are rising and supply is lagging, strengthening the Housing Credit will ensure that more Americans have access to safe, stable, and affordable housing,” said co-chairs of the ACTION Campaign Ayrianne Parks and Jennifer Schwartz. “The ACTION Campaign thanks Senators Todd Young, Maria Cantwell, Marsha Blackburn, and Ron Wyden for their leadership.”
    “The overwhelming bipartisan support for the Affordable Housing Credit Improvement Act of 2025 underscores the critical need to increase the supply of affordable rental homes,” said Affordable Housing Tax Credit Coalition Chief Executive Officer Emily Cadik. “We thank Senator Todd Young, Senator Maria Cantwell, Senator Marsha Blackburn, and Senator Ron Wyden for their leadership and the 30 bipartisan cosponsors for supporting this commonsense solution to expand and strengthen the Low-Income Housing Tax Credit, a proven, pro-growth tool with a nearly 40-year record of leveraging private investment to fill a critical need.”
    This is the latest action in Sen. Warner’s longstanding efforts to make housing more affordable for Virginians. So far this year, he has already introduced the New Markets Tax Credit Extension Act, the Rural Historic Tax Credit Improvement Act, and the Historic Tax Credit Growth and Opportunity Act – all bipartisan bills to encourage redevelopment and new construction in communities across the country. He is also the lead sponsor of the Neighborhood Homes Investment Act – which would create a new tax incentive to build and preserve more than 500,000 affordable, single-family homes over ten years – and the lead author of the Low-Income First Time Homebuyers (LIFT) Act to help qualified, first-generation homebuyers build equity in their homes by offering a 20-year mortgage for roughly the same monthly payment as a traditional 30-year loan. Warner has also joined his colleagues in sponsoring the Downpayment Toward Equity Act, which would provide federal grants to assist first-generation homebuyers with qualifying expenses toward purchasing their first home, including down payment costs, closing costs, and costs to reduce the rates of interest.
    Full text of the bill is available here.
     

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Investors and local authorities gear up as AI Growth Zone delivery gathers speed

    Source: United Kingdom – Executive Government & Departments

    Press release

    Investors and local authorities gear up as AI Growth Zone delivery gathers speed

    Investors and local authorities mobilise as the government kickstarts the next phase for rolling out AI Growth Zones.

    Investors and Local Authorities mobilise for AI Growth Zones.

    • Hotbeds of AI development – with the first based in Culham – to unlock fresh investment and new jobs as the government delivers on its Plan for Change. 
    • After more than 200 initial expressions of interest from every corner of the UK, the formal qualifying process begins.

    Thousands of high-skilled jobs and billions of pounds in fresh investment – the cornerstone of this government’s Plan for Change – are up for grabs, with preparations now in full swing to announce the first hosts of flagship AI Growth Zones this summer. 

    Investors and local authorities will descend on TechUK in London today (30th April) as the government kickstarts its formal qualifying process – giving them the opportunity to discuss their proposals and learn more about the vision for AI Growth Zones with AI Minister Feryal Clark and the Prime Minister’s AI Adviser Matt Clifford. 

    The initial Expressions of Interest (EOI) which opened earlier this year saw more than 200 responses – demonstrating the appetite from all parts of the country to take on a leading role in the UK’s AI-powered future.  

    AI Growth Zones will revitalize local communities by attracting billions in private investment – sparking fresh jobs at the cutting edge of AI while also securing Britain’s position as a global leader in the technology. This will give regions across the country the opportunity to play a leading role in delivering the government’s Plan for Change.

    Streamlined planning approvals mean communities will be able to get spades in the ground quicker than ever before – fast-tracking the rollout of critical infrastructure from data centres to high-capacity energy connections. 

    Potential sites identified across the country through the EOI process include former industrial areas with land and infrastructure ready for redevelopment.

    Proposals should demonstrate access to large existing power connections of at least 500MW – enough energy to power 2 million homes – or set out a clear plan for how they will get there. The qualifying process will also examine other criteria, including site readiness, and local impact.  

    Minister for AI Feryal Clark said: 

    Just like coal and steam powered our past, AI is powering the future. Our AI Growth Zones will transform areas across the UK into engines of growth and opportunity – unlocking new jobs and revitalising communities across the UK. 

    This is our Plan for Change in action, ensuring the benefits of AI are felt in every region and securing the UK’s place as a world leader in this vital technology.

    The Prime Minister’s AI Adviser Matt Clifford said:

    The UK has an extraordinary opportunity in AI, but speed is everything. Today’s launch sends a clear signal to investors and local communities that we’ve already moved into high gear.

    I’m looking forward to discussing these proposals in more detail today as we continue to work alongside investors and local authorities to deliver a once-in-a-generation opportunity.

    To mark the launch, Minister Clark and Matt Clifford are leading a series of engagements today with leading investors and MPs to outline the government’s vision, bid timelines, and qualifying criteria. 

    The first additional sites will then be announced this summer with an ambition to start getting building work underway by the end of 2025.

    DSIT media enquiries

    Email press@dsit.gov.uk

    Monday to Friday, 8:30am to 6pm 020 7215 3000

    Updates to this page

    Published 30 April 2025

    MIL OSI United Kingdom –

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

    Source: United Kingdom – Executive Government & Departments

    Press release

    Families to get more choice over home upgrades

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

    • Working families to get greater choice on upgrades to their home’s heating including new products, such as air-to-air heat pumps and heat batteries, as well as offering new heat pump purchase options.  

    • Plan to build a ‘clean power army’ receives a boost, with up to 18,000 professionals to be trained to retrofit homes, and install heat pumps, insulation, solar panels and heat networks.   

    • Comes as government invests £4.6 million in Copeland to manufacture more heat pump parts at home in the UK, supporting local jobs and boosting economic growth as part of the Plan for Change.

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

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

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

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

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

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

    Minister for Energy Consumers Miatta Fahnbulleh said:  

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

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

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

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

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

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

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

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

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

    Stakeholder reaction: 

    Charlotte Lee, CEO at the Heat Pump Association said: 

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

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

    Jambu Palaniappan, CEO at Checkatrade said: 

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

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

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

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

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

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

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

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

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

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

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

    Chris O’Shea, CEO of Centrica, said:

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

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

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

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

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

    Sando Matic, Europe President for Copeland, said:

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

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

    Notes to Editors:  

    • Options being considered to help spread the installation cost of a heat pump include:   

    • Hire purchase, giving households the option to pay for a heat pump in instalments, meaning they would own the equipment at the end of their contract.  

    • Hire purchase plus, combining paying for a heat pump in instalments with a separate contract for an energy tariff, allowing providers to simplify costs into a single monthly payment.   

    • Leasing, offering households the option to lease a heat pump for a set amount of time, like leasing a car. At the end of the contract, households would either enter into another agreement to continue leasing the heat pump, or would replace it.  

    • Further information on the Heat Pump Investment Accelerator award to Copeland can be found here: Heat Pump Investment Accelerator Competition successful projects.  

    • The Warm Homes Skills Programme will deliver up to 9,000 training places across England, providing opportunities for people to develop skills in areas including fitting solar panels and installing insulation. More details can be found here: Warm Home Skills Programme. 

    • An extra £5 million will be provided to continue the Heat Training Grant until March 2026, supporting a further 5,500 heat pump installers and 3,500 heat network professionals. The Grant has already trained over 10,650 individuals up to the end of March 2025. More details can be found here: Apply for the Heat Training Grant: discounted heat pump training. 

    • More details on the Heat Training Grant: Heat Network training can be found here: Training providers: apply to offer the Heat Training Grant for heat networks 

    • The government’s consultation on minimum energy efficiency standards for private rented sector homes can be found here: Improving the energy performance of privately rented homes: consultation document

    Updates to this page

    Published 30 April 2025

    MIL OSI United Kingdom –

  • MIL-OSI Security: McAlester Resident Sentenced To Eleven Years For Maiming In Indian Country

    Source: Office of United States Attorneys

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced Cody Ray McFadden, age 36, of McAlester, Oklahoma, was sentenced to 132 months in prison for one count of Maiming in Indian Country.

    The charge arose from an investigation by the Pittsburg County Sheriff’s Office, the Oklahoma Highway Patrol, and the Federal Bureau of Investigation.

    On December 16, 2024, McFadden pleaded guilty to the charge.  According to investigators, on July 16, 2022, McFadden invited a visitor to his residence. Once inside, McFadden beat the victim, forced the victim into a cage, and padlocked the door.  During the next 36 hours, McFadden proceeded to assault and torture the victim, threatening to kill the victim with a cross bow and intentionally striking at the victim with an axe.  The victim, who sustained a head laceration, burns, bruises, and a broken arm, managed to break free, escape through a window, and run to a neighbor’s home.  Law enforcement responding to the neighbor’s emergency call took McFadden into custody after a brief standoff.  The crime occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.

    “This defendant demonstrated a complete lack of humanity, subjecting the victim to an extended period of violence resulting in unimaginable physical and mental trauma,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater.  “The FBI and our law enforcement partners are committed to rooting out violent offenders through aggressive investigations and prosecutions.”

    “This is the stuff of nightmares, but unfortunately, it was sickeningly real,” said United States Attorney Christopher J. Wilson.  “I commend the bravery of this survivor, the quick work of law enforcement in securing an end to this horrifying ordeal, and the steadfastness of investigators and prosecutors who ensured that McFadden spends the next decade in prison answering for his ruthless crimes.”

    The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.  McFadden will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

    Assistant U.S. Attorney Joshua Satter represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: Tonawanda man going to prison for 25 years for production of child pornography

    Source: Office of United States Attorneys

    BUFFALO, N.Y. – U.S. Attorney Michael DiGiacomo announced today that Michael E. Swain, 37, of Tonawanda, NY, who was convicted of production of child pornography, was sentenced to serve 25 years in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.

    Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that between October 20 and November 1, 2021, Swain coerced five minor victims to engage in sexually explicit conduct for the purpose of producing visual depictions. Specifically, Swain communicated with a 15-year-old minor female who resided in Colorado using Discord, a social media platform. The communications included sexually graphic conversations, during which Swain requested that the minor female take sexually explicit videos and images and send them to him. In addition, Swain engaged in numerous sexual communications with the minor female from approximately 2019 to 2022, during which other sexually explicit images and videos were sent from to Swain. On February 28, 2023, the FBI executed a search warrant at Swain’s residence and seized a desktop computer tower, a laptop computer, and an external hard drive, all of which were found to contain child pornography.

    The sentencing is the result of an investigation by the Tonawanda Police Department, under the direction of Chief James Stauffiger, the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Amie Feroleto.

    # # # #

    MIL Security OSI –

  • MIL-OSI Security: Ukrainian Citizens Charged in South Florida with Illegally Voting in 2024 United States Presidential Election

    Source: Office of United States Attorneys

    MIAMI – Two Ukrainian women with no United States citizenship have been charged with unlawfully voting in the General Election for United States President during early voting in Palm Beach, Fla., on Oct. 31, 2024.

    Svitlana Demydenko (Svitlana), 53, and her daughter, Yelyzaveta Demydenko (Yelyzaveta), 22, made their initial appearances in West Palm Beach federal court today.

    According to the criminal complaint affidavit, Svitlana and Yelyzaveta entered the United States in April 2021 on nonimmigrant visas. In August 2024, while living in Florida, Svitlana and Yelyzaveta registered to vote in federal elections using a system that requires certification of United States citizenship, which neither of them had.

    On Oct. 31, 2024, and still without United States citizenship, Svitlana and Yelyzaveta voted from Palm Beach in the federal 2024 General Election, which included election of a United States President.

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Acting Special Agent in Charge Jose R. Figueroa of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), Miami Field Division; and Commissioner Mark Glass of the Florida Department of Law Enforcement (FDLE) made the announcement.

    HSI Miami Field Division and FDLE Office of Executive Investigations, Election Crime Unit investigated this case, with assistance from the Florida Department of State, Office of Election Crimes and Security; the Palm Beach County Supervisor of Elections; the U.S. Diplomatic Security Service; and the U.S. Department of Government Efficiency (DOGE). Assistant U.S. Attorney John McMillan is prosecuting the case.

    A criminal complaint is merely an accusation, and defendants are presumed innocent unless and until proven guilty.

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

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 25-mj-8216.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Olean woman arrested, charged with multiple drug and gun charges for her role in Olean drug ring

    Source: Office of United States Attorneys

    BUFFALO, N.Y. – U.S. Attorney Michael DiGiacomo announced today that Janine McKenney, 42, of Olean, NY, was arrested and charged by criminal complaint with possession with intent to distribute methamphetamine and cocaine, which carry a maximum penalty of 20 years in prison, possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum penalty of five years in prison, and a maximum of life, and being a felon in possession of a firearm, which carries a maximum penalty of 15 years in prison.

    Assistant U.S. Attorney Jeffrey E. Intravatola, who is handling the case, stated that on February 17, 2025, Erie County Sheriff’s Deputies responded to a report of a female slumped over in a vehicle at a gas station in Springville, NY. When deputies arrived, the female had departed the gas station. A short time later, they located the vehicle and conducted a traffic stop. During the traffic stop, the driver, later identified as McKenney, provided a false name to deputies. She was detained after a deputy observed a glass pipe designed for smoking crack cocaine in the. While exiting the vehicle, McKenney appeared to be attempting to conceal a suspected crack cocaine rock, which came to rest on the driver’s seat of the vehicle. During a search of the vehicle, deputies discovered a quantity of narcotics, including methamphetamine. The following day, on February 18, 2025, deputies conducted an intake search of McKenney at the Erie County Sheriff’s Office Holding Center and discovered three bags of suspected narcotics on McKenney’s person.  A subsequent search of McKenney’s cell phone various photographs of ledgers, firearms, and suspected narcotics that appear to be packaged for sale.

    Later in the evening on February 18, 2025, investigators executed a search warrant at McKenney’s Olean residence. McKenney utilized her residence while engaging in drug trafficking activities. During the search, quantities of suspected cocaine, morphine pills, and drug paraphernalia were recovered. In addition, three loaded pistols, ammunition and $2519.00 in cash was also recovered. Two of the three pistols were previously reported stolen. In November 2014, McKenney was convicted of a drug felony in New York State Court and is legally prohibited from possessing a firearm.

    The complaint is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Eric Butler, the Olean Police Department, under the direction of Chief Ron Richardson, and the New York State Police, under the direction of Amie Feroleto.

    The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.     

    # # # #

    MIL Security OSI –

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

    Source: GlobeNewswire (MIL-OSI)

    Business Highlights

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

    Financial Highlights

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

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

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

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

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

    First Quarter of 2025 Review

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

    Key Financial Results

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


    Other Financial Information

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

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

    Returning Value to Shareholders

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

    Business Outlook

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

    For the second quarter of 2025, management expects:

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

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

    Conference Call & Webcast:

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

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

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

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

    Discussion of Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

    Silicon Motion Technology Corporation
    Consolidated Statements of Income
    (in thousands, except percentages and per ADS data, unaudited)
     
      For Three Months Ended
      Mar. 31,   Dec. 31,   Mar. 31,
      2024   2024   2025
      ($)   ($)   ($)
    Net Sales 189,311   191,160   166,492
    Cost of sales 104,191   103,560   88,125
    Gross profit 85,120   87,600   78,367
    Operating expenses          
    Research & development 54,392   54,156   55,026
    Sales & marketing 6,304   7,360   7,115
    General & administrative 6,474   8,350   6,460
    Operating income 17,950   17,734   9,766
    Non-operating income (expense)          
    Interest income, net 3,066   3,768   2,929
    Foreign exchange gain, net 588   1,046   373
    Realized/Unrealized gain(loss) on investments (1,608)   956   3,296
    Subtotal 2,046   5,770   6,598
    Income before income tax 19,996   23,504   16,364
    Income tax expense (benefit) 3,980   1,935   (3,099)
    Net income 16,016   21,569   19,463
               
    Earnings per basic ADS 0.48   0.64   0.58
    Earnings per diluted ADS 0.48   0.64   0.58
               
    Margin Analysis:          
    Gross margin 45.0%   45.8%   47.1%
    Operating margin 9.5%   9.3%   5.9%
    Net margin 8.5%   11.3%   11.7%
               
    Additional Data:          
    Weighted avg. ADS equivalents 33,508   33,690   33,634
    Diluted ADS equivalents 33,701   33,814   33,827
               

        

    Silicon Motion Technology Corporation
    Reconciliation of GAAP to Non-GAAP Operating Results
    (in thousands, except percentages and per ADS data, unaudited)
       
      For Three Months Ended
      Mar. 31,   Dec. 31,   Mar. 31,
    2024   2024   2025
    ($)   ($)   ($)
    Gross profit (GAAP) 85,120   87,600   78,367
    Gross margin (GAAP) 45.0%   45.8%   47.1%
    Stock-based compensation (A) 72   162   73
    Restructuring charges –   164   –
    Gross profit (non-GAAP) 85,192   87,926   78,440
    Gross margin (non-GAAP) 45.0%   46.0%   47.1%
               
    Operating expenses (GAAP) 67,170   69,866   68,601
    Stock-based compensation (A) (3,093)   (9,585)   (4,738)
    Dispute related expenses (1,532)   (1,999)   (277)
    Operating expenses (non-GAAP) 62,545   58,282   63,586
               
    Operating profit (GAAP) 17,950   17,734   9,766
    Operating margin (GAAP) 9.5%   9.3%   5.9%
    Total adjustments to operating profit 4,697   11,910   5,088
    Operating profit (non-GAAP) 22,647   29,644   14,854
    Operating margin (non-GAAP) 12.0%   15.5%   8.9%
               
    Non-operating income (expense) (GAAP) 2,046   5,770   6,598
    Foreign exchange loss (gain), net (588)   (1,046)   (373)
    Realized/Unrealized loss (gain) on investments 1,608   (956)   (3,296)
    Non-operating income (expense) (non-GAAP) 3,066   3,768   2,929
               
    Net income (GAAP) 16,016   21,569   19,463
    Total pre-tax impact of non-GAAP adjustments 5,717   9,908   1,419
    Income tax impact of non-GAAP adjustments (147)   (2,049)   (610)
    Net income (non-GAAP) 21,586   29,428   20,272
               
    Earnings per diluted ADS (GAAP) $0.48   $0.64   $0.58
    Earnings per diluted ADS (non-GAAP) $0.64   $0.87   $0.60
               
    Shares used in computing earnings per diluted ADS (GAAP) 33,701   33,814   33,827
    Non-GAAP adjustments 26   181   20
    Shares used in computing earnings per diluted ADS (non-GAAP) 33,727   33,995   33,847
               
    (A)Excludes stock-based compensation as follows:          
    Cost of sales 72   162   73
    Research & development 2,143   6,670   3,003
    Sales & marketing 347   978   862
    General & administrative 603   1,937   873
               
    Silicon Motion Technology Corporation
    Consolidated Balance Sheet
    (In thousands, unaudited)
               
      Mar. 31,   Dec. 31,   Mar. 31,
      2024   2024   2025
      ($)   ($)   ($)
    Cash and cash equivalents 294,814   276,068   275,140
    Accounts receivable (net) 186,154   233,744   206,693
    Inventories 253,316   199,229   180,903
    Refundable deposits – current 49,610   54,645   53,015
    Prepaid expenses and other current assets 17,944   31,187   32,102
    Total current assets 801,838   794,873   747,853
    Long-term investments 15,489   17,326   20,636
    Property and equipment (net) 174,420   188,398   193,603
    Other assets 32,529   30,739   29,310
    Total assets 1,024,276   1,031,336   991,402
               
    Accounts payable 64,810   17,773   23,048
    Income tax payable 10,702   13,107   14,782
    Accrued expenses and other current liabilities 135,425   168,624   130,277
    Total current liabilities 210,937   199,504   168,107
    Other liabilities 59,883   59,548   50,968
    Total liabilities 270,820   259,052   219,075
    Shareholders’ equity 753,456   772,284   772,327
    Total liabilities & shareholders’ equity 1,024,276   1,031,336   991,402
               
    Silicon Motion Technology Corporation
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
       
      For Three Months Ended
      Mar. 31,   Dec. 31,   Mar. 31,
      2024   2024   2025
      ($)   ($)   ($)
    Net income 16,016   21,569   19,463
    Depreciation & amortization 5,608   7,256   7,225
    Stock-based compensation 3,165   9,747   4,811
    Investment losses (gain) & disposals 1,608   (956)   (3,309)
    Changes in operating assets and liabilities (18,586)   (43,774)   22,082
    Net cash provided by (used in) operating activities 7,811   (6,158)   50,272
               
    Purchase of property & equipment (10,749)   (10,836)   (11,661)
    Proceeds from disposal of properties –   3   13
    Purchase of long-term investments –   (4,173)   –
    Disposal of long-term investments –   4,432   –
    Net cash provided by (used in) investing activities (10,749)   (10,574)   (11,648)
               
    Dividend payments (16,808)   (16,814)   (16,956)
    Share repurchases –   –   (24,291)
    Net cash used in financing activities (16,808)   (16,814)   (41,247)
               
    Net increase (decrease) in cash, cash equivalents & restricted cash (19,746)   (33,546)   (2,623)
    Effect of foreign exchange changes 35   (717)   37
    Cash, cash equivalents & restricted cash—beginning of period 368,990   368,596   334,333
    Cash, cash equivalents & restricted cash—end of period 349,279   334,333   331,747
               

    About Silicon Motion:

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

    First Quarter 2025 Financial Highlights (Unaudited)

    • Net income of $4.5 million and diluted earnings per share of $0.31
    • Net revenue(1)of $17.4 million, an increase of 31.4% compared to the first quarter of 2024
    • SBA Lending and Commercial Banking loan originations of $133.0 million, compared to $136.6 million for the first quarter of 2024
    • Gain on sale of loans of $2.5 million on loans sold of $68.7 million, compared to gain on sale of loans of $2.1 million on loans sold of $68.6 million for the first quarter of 2024
    • Credit card charge transactions of $105.6 million and net interchange fees of $2.0 million, compared to $1.1 million and $20 thousand, respectively, for the first quarter of 2024
    • Non-interest expenses include legal, professional, and audit fees from registration on Forms S-1 and S-1A, which total approximately $1.1 million to date
    • Net interest margin of 4.47%
    • Total deposit growth of $189.0 million, or 23.4% compared to March 31, 2024
    • Total on-balance sheet guaranteed loans of $245.6 million, compared to $263.5 million as of March 31, 2024
    • Non-performing assets, excluding guaranteed portions, of $5.7 million, representing 0.48% of total assets

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

    Registration Statement on Form S-1

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

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

    Financial Results

    Income Statement

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

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

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

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

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

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

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

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

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

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

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

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

    Balance Sheet

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

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

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

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

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

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

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

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

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

    Asset Quality

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

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

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

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

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

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

    Other Financial Highlights

    SBA Lending and Commercial Banking

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

    Gaming FinTech

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

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

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

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

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

    Non-Voting Equity Investment in BankCard Services, LLC

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

    Earnings Call

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

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

    • ZOOM Conference ID 826 3030 7240
    • Passcode: 549549

    Joining by ZOOM Conference (audio only):

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

    Joining by Telephone

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

    Click here to learn more about GBank Financial Holdings Inc.

    Notice Regarding Disclosures and Forward-Looking Statements

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

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

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

    FIRST QUARTER 2025 FINANCIAL RESULTS (UNAUDITED)

    Quarter Highlights:
    Net Income Earnings per
    diluted share    		 Net revenue(1) Net interest margin On-balance sheet guaranteed loans Book value per common share
    $4.5 million $0.31 $17.4 million 4.47% $245.6 million $10.27
    CEO COMMENTARY:
    “Our results reflect a continuation of strong earnings, with Company revenues absorbing elevated one-time costs, including SEC related audit, accounting, and legal expenses, which have now totaled approximately $1.1 million to date,” stated T. Ryan Sullivan, President/CEO
    LINKED QUARTER BASIS QTD YEAR-OVER-YEAR
    FINANCIAL HIGHLIGHTS:
    • Net income of $4.5 million and earnings per diluted share of $0.31, compared to $5.2 million and $0.37, respectively
    • Net interest income of $11.9 million, an increase of 0.9%, or $105 thousand
    • Net income of $4.5 million and earnings per diluted share of $0.31, compared to $3.7 million and $0.29, respectively
    • Net interest income of $11.9 million, an increase of 10.1%, or $1.1 million
    • Gain on sale of loans of $2.5 million, a decrease of 36.5%, or $1.5 million
    • Gain on sale of loans of $2.5 million, an increase of 21.8%, or $454 thousand
    • Noninterest income of $5.5 million, a decrease of 5.2%, or $301 thousand
    • Noninterest income of $5.5 million, an increase of 127.2%, or $3.1 million
    • Net revenue(1) of $17.4 million, a decrease of 1.1%, or $196 thousand
    • Net revenue(1) of $17.4 million, an increase of 31.4%, or $4.2 million
    • Noninterest expense of $10.9 million, an increase of 12.2%, or $1.2 million
    • Noninterest expense of $10.9 million, an increase of 30.2%, or $2.5 million
    FINANCIAL POSITION RESULTS:
    • On-balance sheet guaranteed loans of $245.6 million, an increase of 5.0%, or $11.6 million
    • On-balance sheet guaranteed loans of $245.6 million, a decrease of 6.8%, or $18.0 million
    • Total deposits of $996.0 million, an increase of 6.5%, or $60.9 million
    • Total deposits of $996.0 million, an increase of 23.4%, or $189.0 million
    • Stockholders’ equity of $146.6 million, an increase of 4.2%, or $5.9 million
    • Stockholders’ equity of $146.6 million, an increase of 42.9%, or $44.0 million
    LOANS AND ASSET QUALITY:
    • Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 1.26%
    • Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.43%
    • Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 0.64%
    • Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.16%
    • ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.48%
    • ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.38%
    KEY PERFORMANCE METRICS:
    • Net interest margin decreased to 4.47%, compared to 4.53%
    • Net interest margin decreased to 4.47%, compared to 4.85%
    • Loan originations of $133.0 million, an increase of 10.9%, or $13.0 million
    • Loan originations of $133.0 million, a decrease of 2.7%, or $3.6 million
    • Return on average assets and equity was 1.61% and 12.59%, compared to 1.93% and 15.13%, respectively
    • Return on average assets and equity was 1.61% and 12.59%, compared to 1.59% and 14.67%, respectively
    • Book value per share of $10.27, an increase of 4.1% from $9.87
    • Book value per share of $10.27, an increase of 28.4% from $8.00
    GBank Financial Holdings Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited)
                                       
                          Linked Quarter   Quarter YOY
                          3/31/25 vs. 12/31/24   3/31/25 vs. 3/31/24
    ($’s in 000, except per share data) Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024   $ Var   % Var   $ Var   % Var
    Assets                                  
    Cash and Due From Banks $ 6,701     $ 9,262     $ 5,798     $ 5,409     $ 8,334     $ (2,561 )   -27.6 %   $ (1,633 )   -19.6 %
    Interest-Bearing Deposits With Other Financial Institutions   140,270       114,860       65,160       82,749       45,844       25,410     22.1 %     94,426     206.0 %
    Total Cash and Cash Equivalents   146,971       124,122       70,958       88,158       54,178       22,849     18.4 %     92,793     171.3 %
                                       
    Investment Securities:                                  
    Available For Sale, at Fair Value   71,468       65,609       39,381       2,330       2,588       5,859     8.9 %     68,880     2661.5 %
    Held to Maturity, at Amortized Cost   39,903       40,569       46,043       56,520       86,999       (666 )   -1.6 %     (47,096 )   -54.1 %
                                       
    Loans Held For Sale   41,313       32,649       68,317       40,489       44,901       8,664     26.5 %     (3,588 )   -8.0 %
    Loans, Net of Deferred Fees and Costs:                                  
    Commercial and Industrial   56,885       64,000       53,490       50,498       46,863       (7,115 )   -11.1 %     10,022     21.4 %
    Commercial Real Estate – Non-owner Occupied   672,379       630,551       607,864       583,463       546,408       41,828     6.6 %     125,971     23.1 %
    Commercial Real Estate – Owner Occupied   81,768       88,802       86,785       106,595       110,065       (7,034 )   -7.9 %     (28,297 )   -25.7 %
    Construction and Land Development   3,201       2,934       2,161       529       386       267     9.1 %     2,815     729.3 %
    Multifamily   19,011       17,374       17,398       17,420       17,037       1,637     9.4 %     1,974     11.6 %
    Residential   7,619       10,584       12,025       13,443       12,281       (2,965 )   -28.0 %     (4,662 )   -38.0 %
    Consumer   2,502       1,713       1,276       909       549       789     46.1 %     1,953     355.7 %
    Total Loans, Net of Deferred Fees and Costs   843,365       815,958       780,999       772,857       733,589       27,407     3.4 %     109,776     15.0 %
    Less: Allowance for Credit Losses   (8,997 )     (9,114 )     (7,934 )     (7,342 )     (7,088 )     117     -1.3 %     (1,909 )   26.9 %
    Total Net Loans   834,368       806,844       773,065       765,515       726,501       27,524     3.4 %     107,867     14.8 %
                                       
    Loan Servicing Asset   9,231       8,976       8,046       7,698       7,124       255     2.8 %     2,107     29.6 %
    Restricted Investment in Bank Stock   4,652       4,652       4,652       4,652       3,222       –     0.0 %     1,430     44.4 %
    All Other Assets   42,106       38,943       37,540       43,992       37,937       3,163     8.1 %     4,169     11.0 %
    Total Assets $ 1,190,012     $ 1,122,364     $ 1,048,002     $ 1,009,354     $ 963,450     $ 67,648     6.0 %   $ 226,562     23.5 %
    Liabilities                                  
    Non-Interest Bearing Demand $ 242,650     $ 239,672     $ 229,875     $ 220,438     $ 216,307     $ 2,978     1.2 %   $ 26,343     12.2 %
    Interest Bearing Demand   62,035       68,132       65,623       65,120       63,740       (6,097 )   -8.9 %     (1,705 )   -2.7 %
    Savings and Money Market   280,056       256,724       244,091       222,115       199,549       23,332     9.1 %     80,507     40.3 %
    Certificates of Deposit   411,201       370,552       343,931       332,695       327,326       40,649     11.0 %     83,875     25.6 %
    Total Deposits   995,942       935,080       883,520       840,368       806,922       60,862     6.5 %     189,020     23.4 %
                                       
    Short-Term Borrowings   –       –       –       12,000       10,000       –     0.0 %     (10,000 )   -100.0 %
    Subordinated Debt   26,107       26,088       26,070       26,051       26,032       19     0.1 %     75     0.3 %
    Operating Lease Liability   6,299       4,839       5,032       5,221       5,409       1,460     30.2 %     890     16.5 %
    Other Liabilities   15,048       15,657       16,997       14,769       12,521       (609 )   -3.9 %     2,527     20.2 %
    Total Liabilities   1,043,396       981,664       931,619       898,409       860,884       61,732     6.3 %     182,512     21.2 %
                                       
    Equity                                  
    Common Stock   1       1       1       1       1       –     0.0 %     –     0.0 %
    Additional Paid-in Capital   78,718       77,571       57,287       56,966       53,322       1,147     1.5 %     25,396     47.6 %
    Retained Earnings   68,906       64,437       59,192       54,177       49,501       4,469     6.9 %     19,405     39.2 %
    Accumulated Other Comprehensive Loss   (1,009 )     (1,309 )     (97 )     (199 )     (258 )     300     -22.9 %     (751 )   291.1 %
    Total Stockholders’ Equity   146,616       140,700       116,383       110,945       102,566       5,916     4.2 %     44,050     42.9 %
    Total Liabilities & Stockholders’ Equity $ 1,190,012     $ 1,122,364     $ 1,048,002     $ 1,009,354     $ 963,450     $ 67,648     6.0 %   $ 226,562     23.5 %
                                       
    Book Value Per Common Share $ 10.27     $ 9.87     $ 8.91     $ 8.49     $ 8.00     $ 0.40     4.1 %   $ 2.27     28.4 %
                                       
    GBank Financial Holdings Inc.
    Condensed Consolidated Income Statements
    (Unaudited)
                       
      Three Months Ended
    ($’s in 000, except per share data) Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
    Interest Income                  
    Loans $ 16,836     $ 17,231     $ 17,347     $ 16,360     $ 15,330  
    Deposits With Other Financial Institutions   1,192       1,099       1,367       1,165       972  
    Investment Securities   1,281       1,177       924       868       1,014  
    Other Interest Bearing Balances   100       103       102       96       74  
    Total Interest Income   19,409       19,610       19,740       18,489       17,390  
                       
    Interest Expense                  
    Deposits   7,230       7,535       7,194       6,848       6,198  
    Short-term Borrowings and Subordinated Debt   285       286       287       293       390  
    Total Interest Expense   7,515       7,821       7,481       7,141       6,588  
                       
    Net Interest Income   11,894       11,789       12,259       11,348       10,802  
    Provision for Credit Losses – Loans   (710 )     (1,337 )     (570 )     (283 )     –  
    Provision for Credit Losses – Unfunded Commitments   (11 )     (13 )     (8 )     (12 )     (20 )
    Net Interest Income after Provision for Credit Losses   11,173       10,439       11,681       11,053       10,782  
                       
    Other Income                  
    Gain on Sales of Loans   2,537       3,998       2,838       3,163       2,083  
    Loan Servicing Income   703       597       566       534       60  
    Service Charges and Fees   56       54       48       41       41  
    Net Interchange Fees   2,003       947       284       146       20  
    Other Income   164       168       166       282       201  
    Total Other Income   5,463       5,764       3,902       4,166       2,405  
                       
    Noninterest Expenses                  
    Salaries and Employee Benefits   6,400       5,813       5,495       5,752       5,290  
    Occupancy Expenses   392       398       404       417       447  
    Other Expenses   4,115       3,509       3,156       2,963       2,637  
    Total Noninterest Expenses   10,907       9,720       9,055       9,132       8,374  
                       
    Income Before Provision For Income Taxes   5,729       6,483       6,528       6,087       4,813  
    Provision For Income Taxes   (1,224 )     (1,239 )     (1,513 )     (1,411 )     (1,112 )
    Net Income Before Equity Investment Loss   4,505       5,244       5,015       4,676       3,701  
    Net Loss Attributable to Equity Investment   (35 )     –       –       –       –  
    Net Income $ 4,470     $ 5,244     $ 5,015     $ 4,676     $ 3,701  
                       
    Earnings Per Share $ 0.31     $ 0.37     $ 0.38     $ 0.36     $ 0.29  
    Earnings Per Share (Diluted) $ 0.31     $ 0.37     $ 0.38     $ 0.36     $ 0.29  
                       
    GBank Financial Holdings Inc.
    Average Balances, Rates, and Interest Income and Expense
    (Unaudited)
                                               
              For the Three Months Ended
              March 31, 2025   December 31, 2024   March 31, 2024
    (Dollars in thousands)   Average       Yield/   Average       Yield/   Average       Yield/
              Balance   Interest   Rate(2)   Balance   Interest   Rate(2)   Balance   Interest   Rate(2)
    ASSETS:                                    
      Interest Bearing Deposits   $ 102,628   $ 1,192   4.71 %   $ 85,424   $ 1,099   5.12 %   $ 66,100   $ 972   5.91 %
      Investment Securities:                                    
        Taxable     105,222     1,281   4.94 %     98,712     1,177   4.74 %     98,084     1,014   4.16 %
      Loans and Loans Held For Sale     866,690     16,836   7.88 %     846,583     17,231   8.10 %     727,786     15,330   8.47 %
      Restricted Investment in Bank Stock     4,652     100   8.72 %     4,652     103   8.81 %     3,222     74   9.24 %
        Total Earning Assets     1,079,192     19,409   7.29 %     1,035,371     19,610   7.53 %     895,192     17,390   7.81 %
                                               
      Cash and Due From Banks     6,216             5,938             5,935        
      Other Assets     39,177             38,753             33,602        
          Total Assets   $ 1,124,585           $ 1,080,062           $ 934,729        
                                               
    LIABILITIES & SHAREHOLDERS’ EQUITY                                    
      Deposits:                                    
        Interest-bearing Demand   $ 65,693   $ 355   2.19 %   $ 64,453   $ 385   2.38 %   $ 65,303   $ 393   2.42 %
        Money Market and Savings     264,085     2,411   3.70 %     255,068     2,496   3.89 %     186,372     1,759   3.80 %
        Certificates of Deposit     385,704     4,464   4.69 %     359,285     4,654   5.15 %     309,221     4,046   5.26 %
          Total Interest-Bearing Deposits     715,482     7,230   4.10 %     678,806     7,535   4.42 %     560,896     6,198   4.44 %
                                               
      Short-Term Borrowings     –     –   0.00 %     2     –   0.00 %     7,583     104   5.52 %
      Subordinated Debt     26,095     285   4.43 %     26,076     286   4.36 %     26,021     286   4.42 %
          Total Interest-Bearing Liabilities     741,577     7,515   4.11 %     704,884     7,821   4.41 %     594,500     6,588   4.46 %
                                               
      Noninterest-bearing Deposits     218,874             214,880             220,767        
      Other Liabilities     20,139             22,403             18,003        
      Shareholders’ Equity     143,995             137,895             101,459        
          Total Liabilities & Shareholders’ Equity   $ 1,124,585           $ 1,080,062           $ 934,729        
                                               
      Net Interest Income       $ 11,894           $ 11,789           $ 10,802    
                                               
      Total Yield on Earning Assets           7.29 %           7.53 %           7.81 %
      Cost on Interest-Bearing Liabilities           4.11 %           4.41 %           4.46 %
      Average Interest Spread           3.18 %           3.12 %           3.35 %
      Net Interest Margin           4.47 %           4.53 %           4.85 %
      Net Interest Margin (Bank Only)           4.58 %           4.64 %           4.98 %
    GBank Financial Holdings Inc.
    Additional Financial Information
    (Unaudited)
                         
        Three Months Ended
    ($’s in 000, except per share data)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
                         
    Key Performance Metrics                    
    Return on Average Assets-Net Income (2)     1.61 %     1.93 %     1.96 %     1.90 %     1.59 %
    Return on Average Stockholders’ Equity(2)     12.59 %     15.13 %     17.29 %     17.59 %     14.67 %
    Efficiency Ratio     62.84 %     55.38 %     56.03 %     58.86 %     63.41 %
    Net Interest Margin(2)     4.47 %     4.53 %     5.00 %     4.82 %     4.85 %
    Net Revenue(1)   $ 17,357     $ 17,553     $ 16,161     $ 15,514     $ 13,207  
    Common Equity / Assets     12.3 %     12.5 %     11.1 %     11.0 %     10.6 %
    Tier 1 Leverage Ratio – Bank     14.23 %     12.90 %     13.08 %     12.88 %     13.03 %
                         
    Selected Loan Metrics                    
    Guaranteed Portion of Loans Held for Sale   $ 41,313     $ 32,649     $ 68,317     $ 40,489     $ 44,901  
    Guaranteed Portion of Loans Held for Investment     204,239       201,267       203,027       215,382       218,619  
    Total Guaranteed Loans     245,552       233,916       271,344       255,871       263,520  
    Guaranteed Loans as a Percent of Loans(1)     24.2 %     24.7 %     26.0 %     27.9 %     29.8 %
                         
    Asset Quality                    
    Total nonaccrual loans   $ 19,220     $ 14,128     $ 5,381     $ 6,470     $ 6,096  
    Loans past due 90 days and still accruing     1,153       40       27       1,142       33  
    Other real estate owned     –       –       –       –       –  
    Total non-performing assets     20,373       14,168       5,408       7,612       6,129  
    Non-performing assets: guaranteed portion     14,687       9,321       3,838       5,396       4,572  
    Non-performing assets: non-guaranteed portion     5,686       4,847       1,570       2,216       1,557  
                         
    Non-performing assets to total assets     1.71 %     1.26 %     0.52 %     0.75 %     0.64 %
    Non-performing assets, excluding guaranteed, to total assets(1)     0.48 %     0.43 %     0.15 %     0.22 %     0.16 %
    Net charge-offs (recoveries)   $ 828     $ 157     $ (22 )   $ 29     $ –  
                         
    Loans past due 30-89 days and accruing   $ 14,853     $ 11,822     $ 12,390     $ 1,054     $ 3,428  
    Loans past due 30-89 days and accruing: guaranteed portion   $ 11,915     $ 8,713     $ 8,535     $ –     $ 1,028  
    Loans past due 30-89 days and accruing: non-guaranteed portion   $ 2,938     $ 3,109     $ 3,855     $ 1,054     $ 2,400  
                         
    Allowance for Credit Losses (ACL)   $ 8,997     $ 9,114     $ 7,934     $ 7,342     $ 7,088  
    Nonaccrual loans   $ 19,220     $ 14,128     $ 5,381     $ 6,470     $ 6,096  
    ACL to nonaccrual loans     47 %     65 %     147 %     113 %     116 %
    ACL to nonaccrual loans, excluding guaranteed(1)     168 %     190 %     514 %     130 %     465 %
    ACL to loans     1.07 %     1.12 %     1.02 %     0.95 %     0.97 %
    ACL to loans, excluding guaranteed(1)     1.41 %     1.48 %     1.37 %     1.32 %     1.38 %
                         
    Book Value                    
    Stockholders’ Equity   $ 146,616     $ 140,700     $ 116,383     $ 110,945     $ 102,566  
    Common shares outstanding     14,271       14,252       13,067       13,061       12,824  
    Book value per common share   $ 10.27     $ 9.87     $ 8.91     $ 8.49     $ 8.00  
    Employees – FTE     175       169       159       155       150  
    GBank Financial Holdings Inc.
    Reconciliation of Non-GAAP Financial Measures
    (Unaudited)
                         
        Three Months Ended
    ($’s in 000, except per share data)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
                         
    Net Revenue(3)                    
    Net Interest Income   $ 11,894     $ 11,789     $ 12,259     $ 11,348     $ 10,802  
    Non-Interest Income     5,463       5,764       3,902       4,166       2,405  
    Net Revenue   $ 17,357     $ 17,553     $ 16,161     $ 15,514     $ 13,207  
                         
    Guaranteed Loans as a Percent of Loans(4)                    
    SBA and USDA Guaranteed Loans   $ 204,239     $ 201,267     $ 203,027     $ 215,382     $ 218,619  
    Loans, Net of Deferred Fees and Costs     843,365       815,958       780,999       772,857       733,589  
    Guaranteed Loans as a % of Loans     24.2 %     24.7 %     26.0 %     27.9 %     29.8 %
                         
    Non-performing assets, excluding guaranteed, to total assets(4)                    
    Non-performing assets   $ 20,373     $ 14,168     $ 5,408     $ 7,612     $ 6,129  
    Less: SBA and USDA guaranteed portions of non-performing assets     14,687       9,321       3,838       5,396       4,572  
    Non-performing assets, excluding guaranteed portions     5,686       4,847       1,570       2,216       1,557  
    Total assets     1,190,012       1,122,364       1,048,002       1,009,354       963,450  
    Non-performing assets, excluding guaranteed, to total assets     0.48 %     0.43 %     0.15 %     0.22 %     0.16 %
                         
    Allowance for credit losses (ACL) to nonaccrual loans, excluding guaranteed(4)                
    Nonaccrual loans   $ 19,220     $ 14,128     $ 5,381     $ 6,470     $ 6,096  
    Less: SBA and USDA guaranteed portions of nonaccrual loans     13,859       9,321       3,838       833       4,572  
    Nonaccrual loans, excluding guaranteed portions     5,361       4,807       1,543       5,637       1,524  
    ACL to nonaccrual loans, excluding guaranteed     168 %     190 %     514 %     130 %     465 %
                         
    ACL to loans, excluding guaranteed(4)                    
    Loans, net of deferred fees and costs   $ 843,365     $ 815,958     $ 780,999     $ 772,857     $ 733,589  
    Less: SBA and USDA guaranteed portions of loans     204,239       201,267       203,027       215,382       218,619  
    Loans, excluding guaranteed     639,126       614,691       577,972       557,475       514,970  
    ACL to loans, excluding guaranteed     1.41 %     1.48 %     1.37 %     1.32 %     1.38 %
      (1)  See Reconciliation of Non-GAAP Financial Measures      
      (2) Ratios are annualized on an actual/actual basis          
      (3) We believe this non-GAAP measurement presents trends in income generation of the Company.     
      (4) We believe these non-GAAP measurements provide useful metrics regarding the at-risk assets of the Company.      

    The MIL Network –

  • MIL-OSI: iRhythm Technologies to Present at the Bank of America Securities 2025 Health Care Conference

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, April 29, 2025 (GLOBE NEWSWIRE) — iRhythm Technologies, Inc. (NASDAQ:IRTC), a leading digital health care company focused on creating trusted solutions that detect, prevent, and predict disease, today announced the company will be participating in the upcoming Bank of America Securities 2025 Health Care Conference.

    iRhythm’s management is scheduled to present on Tuesday, May 13, 2025, 3:40 p.m. Pacific Time/6:40 p.m. Eastern Time. Interested parties may access a live and archived webcast of the presentation on the “Events & Presentations” section of the company’s investor website at investors.irhythmtech.com.

    About iRhythm Technologies, Inc.
    iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all.

    Investor Contact
    Stephanie Zhadkevich
    investors@irhythmtech.com

    Media Contact
    Kassandra Perry
    irhythm@highwirepr.com

    The MIL Network –

  • MIL-OSI New Zealand: Man sentenced after Operation Barber cuts at West Coast drug supply

    Source: New Zealand Police (National News)

    Attributable to Detective Constable Mat Wood:

    Police acknowledge the sentencing handed down in the Christchurch District Court this week in relation to the supply of drugs on the West Coast.

    Leo Smith, aged 22, was on Tuesday (29 April) sentenced to 10 months home detention.

    Operation Barber started in 2023 after Police received information relating to the supply of class B drugs across the wider region.

    Smith was identified as a person of interest, and Police conducted search warrants on 8 March 2024 at two addresses he was connected to.

    Police located and seized drugs, instruments, and cash, as well as his mobile devices.

    The operation has been hugely successful thanks to the dedication of the West Coast Tactical Crime Unit who were greatly assisted over the last 18 months by Christchurch Criminal Investigations Branch.

    As a result of our investigations, we have been able to uncover a number of associates working with Smith.

    Several other people were involved in the supply chain and supplying class A-C illicit drugs across the Greymouth and Canterbury regions.

    These offenders were unidentified previously, with little to no criminal history. They have now been convicted and more than $90,000 in cash has been forfeited across the wider operation.

    Police will continue to hold people to account who are supplying drugs and causing harm to our community.

    If you have concerns about illegal drug use in your community, please call 111 if there is an immediate public safety risk, or contact us via 105 online, or by phone, to make a report.

    You can also report information anonymously to Crime Stoppers on 0800 555 111.

    ENDS

    Issued by the Police Media Centre

    MIL OSI New Zealand News –

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

    Source: GlobalData

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

    Posted in Business Fundamentals

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

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

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

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

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

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

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

    MIL OSI Economics –

  • MIL-OSI USA: Warren Warns Walgreens Buyout by Private Equity May Lead to Pharmacy Closures, Lost Jobs in Massachusetts, Limit Access to Medication

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    April 29, 2025
    Warren seeks assurances from Sycamore Partners that its heavily-leveraged, debt-fueled acquisition of Walgreens will not lead to layoffs, store closures
    After private equity looted Steward Health Care hospitals, Warren concerned that Walgreens could be next: “These private equity buyouts of companies facing financial hardship…frequently lead to worse outcomes for employees and consumers.”
    Text of Letter (PDF)
    Washington D.C. – U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, wrote to private equity firm Sycamore Partners (Sycamore) regarding concerns that the firm’s proposed acquisition of retail pharmacy chain Walgreens may cost hardworking Massachusetts residents their jobs and create difficulties for patients who need access to lifesaving medications. 
    Sycamore’s multi-billion-dollar takeover of Walgreens has been touted as an attempt to keep the struggling retail pharmacy chain alive. However, private equity buyouts have a record of running already-struggling companies into the ground and producing devastating consequences for workers and communities, as witnessed by private equity’s looting of Steward Health Care, which resulted in two shuttered hospitals in Massachusetts. 
    “My primary concern is that Sycamore’s acquisition of Walgreens may lead to restructuring of the company that results in layoffs and pharmacy closures in the Commonwealth,” said Senator Warren. 
    Walgreens has already announced plans to close nine locations across Massachusetts, in addition to the six stores closed in the state within the past year. Many of the shuttered Walgreens stores are located in vulnerable communities, leaving thousands of residents without reliable pharmacy access. 
    Sycamore has a troubling history of leading the companies it acquires into bankruptcy, further harming already-struggling communities. 
    “These private equity buyouts…frequently lead to worse outcomes for employees and consumers: private equity firms sell off assets and close locations, employees lose their jobs, and consumers lose access to essential goods and services,” wrote Senator Warren.
    A review by the Private Equity Stakeholder Project (PESP) revealed that the Walgreens buyout will be heavily leveraged with debt, heightening the risk of bankruptcy and threatening the availability of critical services to customers and patients.
    “These are deeply troubling conclusions, suggesting that yet another private equity firm might leverage a failing health care chain to turn a profit at the expense of Massachusetts’ patients, providers, and taxpayers,” wrote Senator Warren.
    Millions of customers across the United States rely on Walgreens for primary care, essential medications, and household items, and if the Walgreens-Sycamore deal leads to even more store closures, customers could be left in “pharmacy deserts” without access to necessities.  
    “I seek assurances that Sycamore’s buyout of Walgreens will not damage the company further, and will not cost hardworking Americans their jobs or create difficulties for patients who need access to lifesaving medications,” concluded Senator Warren.
    Senator Warren requested a response identifying the impact Sycamore’s acquisition of Walgreens will have on workers and communities by May 13, 2025.
    Senator Warren has repeatedly called out the harms of private equity ownership on health care costs and quality of care and has fought to prevent companies from taking advantage of the bankruptcy system:
    In February 2025, Senator Warren questioned private equity executive Stephen Feinberg, President of Cerberus Capital Management and nominee for Deputy Secretary of Defense, on his actions to enrich himself and his investors at the expense of Steward Health Care patients and workers.
    In October 2024, Senator Warren led colleagues in reintroducing the Stop Wall Street Looting Act, comprehensive legislation to fundamentally reform the private equity industry and level the playing field by forcing private investment firms to take responsibility for the outcomes of companies they take over, empowering workers and protecting investors. This reintroduction comes after private equity firm Cerberus looted Steward Health Care, leaving hospitals, patients, and workers hanging out to dry.
    In September 2024, Senators Warren and Markey (D-Mass.), alongside Representatives Auchincloss and Lynch, sent a letter to RHG raising concerns over its proposed acquisition of Steward Health Care’s physician group, Stewardship Health.
    In September 2024, Senator Warren urged the IRS to crack down on Real Estate Investment Trusts (REITs) squeezing the health care industry.
    In August 2024, Senators Warren and Markey requested information from private equity firm Apollo Global Management (Apollo) on the company’s role in Steward’s bankruptcy, and urged Apollo to work in good faith to facilitate the sale of Steward’s Massachusetts hospitals. 
    In July 2024, Senators Warren and Markey wrote to Medical Properties Trust and Macquarie Infrastructure Partners, owners of Steward’s eight Massachusetts hospitals, urging them to offer lease concessions to keep the hospitals open and viable.
    In June 2024, Senator Warren, Representative Chu, and Representative Nadler urged CMS to increase oversight of artificial intelligence (AI) and algorithmic software tools used to guide coverage decisions in Medicare Advantage (MA) plans, citing the NaviHealth scandal as cause for concern. 
    In June 2024, Senators Warren and Markey introduced the Corporate Crimes Against Health Care Act of 2024 to root out corporate greed and private equity abuse in the health care system, specifically preventing what happened with Steward from happening again. 
    In June 2024, Senator Warren wrote to the DOJ, FTC, and HHS calling out high health care costs due to vertically-integrated insurers, private equity companies, and pharmaceutical companies that are driving health care consolidation.
    In June 2024, Senators Warren, Brown (D-Ohio), and Markey wrote to the Director of the U.S. Trustee Program (USTP), calling for USTP to move to appoint a Chapter 11 trustee to run the company in place of Steward’s current management, and to monitor the hospitals’ bankruptcy proceedings to protect patients and local communities. 
    In May 2024, Senator Warren sent a letter to the U.S. Department of Health and Human Services and the U.S. Centers for Medicare & Medicaid Services, urging them to support communities and health care providers affected by the crisis caused by Steward’s financial mismanagement.
    In April 2024, Senators Warren and Senator Markey (D-Mass.) sent a letter to six private credit funds that are holders of Steward’s debt, asking them a series of questions about their loans and calling on them to offer loan modifications that could potentially help keep the hospitals afloat.
    In April 2024, Senators Warren and Markey called out Medical Properties Trust and Macquarie Infrastructure Partners for exploiting Steward Hospitals, and urged them to help keep the hospitals open. 
    In April 2024, Senators Warren, Markey, and the rest of the MA delegation urged the FTC and DOJ to closely scrutinize UnitedHealth Group’s proposed acquisition of Steward Health Care’s physician group, Stewardship Health.
    In April 2024, Senator Warren delivered remarks at a Senate hearing in Boston titled, “When Health Care Becomes Wealth Care: How Corporate Greed Puts Patient Care and Health Workers at Risk,” which centered on Steward Health Care’s Massachusetts hospitals.
    In April 2024, Senators Warren and Ed Markey (D-Mass.) called out private equity firm Cerberus Capital Management (Cerberus) for its role in creating Steward Health Care’s financial challenges, following Cerberus’s reply to the Massachusetts congressional delegation’s February 2024 probe. 
    In February 2024, Senator Warren slammed UnitedHealth Group for leveraging NaviHealth’s unregulated artificial intelligence algorithm to unlawfully deny health care to seniors with severe injuries.
    In March 2024, Senator Warren released a statement about Steward’s plan to sell its physician group Stewardship Health to UnitedHealth Group’s subsidiary Optum.
    In March 2024, Senators Warren and Markey sent a letter  to Steward CEO and Chairman Dr. Ralph de la Torre, calling on him to testify at a congressional hearing in Boston.
    In March 2024, Senators Warren and Markey sent a letter to Dr. de la Torre, blasting him for years of financial mismanagement, private equity schemes, and executive profiteering that have led to Steward Health Care’s financial crisis.
    In February 2024, Senators Warren and Markey, along with all nine members of the Massachusetts congressional delegation, sent a letter to Cerberus seeking answers from the private equity firm for its role in creating the current financial challenges at Steward hospitals.
    In January 2024, Senator Warren released a statement about Steward’s financial situation and allegations of patient neglect at Steward facilities.
    In January 2024, Senator Warren led the Massachusetts congressional delegation in a letter to the CEO of Steward Health Care pressing the company to brief them on Steward’s financial position, the status of their Massachusetts facilities, and their plans to ensure the communities they serve are not abandoned. 

    MIL OSI USA News –

  • MIL-OSI Security: Former USDA Program Director Pleads Guilty in $400,000 Kickback Scheme

    Source: Office of United States Attorneys

    WASHINGTON – Kirk Perry, 60, a former United States Department of Agriculture (USDA) program director, pleaded guilty today in connection with a kickback scheme in which he and his nephew, Jamarea Grant, 31, of Cleveland, Ohio, conspired to bill the government nearly $400,000 for work that Grant did not actually perform.  

    The plea was announced by U.S. Attorney Edward R. Martin Jr. and Acting Inspector General Janet M. Sorensen of the U.S. Department of Agriculture Office of Inspector General.

    Perry, of Lorain, Ohio, pleaded guilty before U.S. District Court Judge Colleen Kollar-Kotelly to conspiracy to commit money, property, and honest services wire fraud. Grant previously pleaded guilty on Nov. 27, 2024, to the same charge. Judge Kollar-Kotelly will determine any sentences for Perry and Grant after considering the U.S. Sentencing Guidelines and other statutory factors. Perry is scheduled to be sentenced on Dec. 4, 2025. Grant’s sentencing is pending.

    In pleading guilty, Perry and Grant admitted that, from August 2015 through November 2022, Perry, who at the time was serving as a USDA Program Director, arranged for Grant to be hired by two companies under contract with the USDA Office for Civil Rights. Grant reported directly to Perry, who also approved the invoices billing for Grant’s time, and the two of them conspired to bill the government for work that Grant did not perform.

    Grant received nearly $400,000 for work he did not do. Perry also had access to Grant’s bank account. As part of the criminal scheme Perry transferred approximately $125,000 of the USDA payments from Grant’s account to his own account.

    This case was investigated by the USDA Office of Inspector General Sensitive Investigations Office. The matter is being prosecuted by Assistant U.S. Attorneys Brian P. Kelly and Maeghan Mikorski.

    24cr223

    MIL Security OSI –

  • MIL-OSI: Lake Shore Bancorp, Inc. Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    DUNKIRK, N.Y., April 29, 2025 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), reported unaudited net income of $1.1 million, or $0.19 per diluted share, for the first quarter of 2025 compared to net income of $1.0 million, or $0.17 per diluted share, for the first quarter of 2024. The Company’s financial performance for the first quarter of 2025 was positively impacted by an increase in net interest income along with a decrease in non-interest expenses because of efforts to optimize operating expenses while continuing to reduce its reliance on wholesale Federal Home Loan Bank of New York (“FHLBNY”) funding by $6.3 million.

    “Given the ongoing economic uncertainty, I am pleased with our first quarter 2025 performance,” stated Kim C. Liddell, President, CEO, and Director. “We continue to focus efforts on improving the efficiency of our core operations while maintaining a disciplined approach to balance sheet management.”

    First Quarter 2025 Financial Highlights:

    • Net income increased to $1.1 million during the first quarter of 2025, an increase of $43,000, or 4.2%, when compared to the first quarter of 2024. Net income was positively impacted by an increase in net interest income of $332,000, or 6.5%, when compared to the first quarter of 2024;
    • Net interest margin increased to 3.49% during the first quarter of 2025, an increase of 18 basis points when compared to net interest margin of 3.31% during the fourth quarter of 2024 and an increase of 39 basis points when compared to net interest margin of 3.10% during the first quarter of 2024;
    • Reduced reliance on wholesale funding by repaying $6.3 million of FHLBNY borrowings during the first quarter of 2025;
    • At March 31, 2025 and December 31, 2024, the Company’s percentage of uninsured deposits to total deposits was 11.8% and 13.5%, respectively;
    • Book value per share increased 0.4% to $15.74 per share at March 31, 2025 as compared to $15.67 per share at December 31, 2024; and
    • The Bank’s capital position remains “well capitalized” with a Tier 1 Leverage ratio of 14.31% and a Total Risk-Based Capital ratio of 18.67% at March 31, 2025.

    Net Interest Income

    Net interest income for the first quarter of 2025 increased by $124,000, or 2.3%, to $5.5 million as compared to $5.3 million for the fourth quarter of 2024 and increased $332,000, or 6.5%, as compared to $5.1 million for the first quarter of 2024. Net interest margin and interest rate spread were 3.49% and 2.94%, respectively, for the first quarter of 2025 as compared to 3.31% and 2.72%, respectively, for the fourth quarter of 2024 and 3.10% and 2.55%, respectively, for the first quarter of 2024.

    Interest income for the first quarter of 2025 was $8.4 million, a decrease of $223,000, or 2.6%, compared to $8.6 million for the fourth quarter of 2024, and a decrease of $242,000, or 2.8%, compared to $8.6 million for the first quarter of 2024.

    The decrease in interest income from the prior quarter was primarily due to a decrease in the average balance of interest-earning assets of $18.0 million, or 2.8%. Interest earned on interest-earning deposits decreased by $265,000, or 53.1%, due to a 63 basis points decrease in average yield and a $19.8 million decrease in the average balance of interest-earning deposits during the first quarter of 2025 as compared to the prior quarter.

    The decrease in interest income from the prior year quarter was primarily due to a decrease in the average balance of interest-earning assets of $35.0 million, or 5.3%. The decrease was partially offset by a 14 basis points increase in the average yield on interest-earning assets. During the first quarter of 2025 as compared to the same period in 2024, there was a $364,000 decrease in interest earned on interest-earning deposits due to a decrease in the average balance and yield of interest-earning deposits of $20.5 million, or 46.5%, and 146 basis points, respectively. Additionally, during the first quarter of 2025 as compared to the same period in 2024, there was a $44,000 decrease in interest earned on securities due to a decrease in the average balance and yield of securities of $3.9 million, or 6.4%, and 11 basis points, respectively. These decreases were partially offset by a $166,000 increase in interest income on loans due to a 22 basis points increase in the average yield on loans.

    Interest expense for the first quarter of 2025 was $2.9 million, a decrease of $347,000, or 10.7%, from the fourth quarter of 2024, and a decrease of $574,000, or 16.5%, from $3.5 million for the first quarter of 2024.

    The decrease in interest expense when compared to the previous quarter was primarily due to a 21 basis points decrease in the average interest rate paid on interest-bearing liabilities and a $14.1 million, or 2.8%, decrease in the average balance of interest-bearing liabilities. During the first quarter of 2025 as compared to the previous quarter, interest expense on deposits decreased by $301,000, or 9.6%, due to a $9.7 million decrease in the average balance of deposits and a 20 basis points decrease in the average interest rate paid on deposit accounts. The decrease in the average interest rate paid on deposit accounts was primarily due to the decrease in market interest rates and time deposit repricing. Average interest-bearing deposit balances were $477.8 million, a 2.0% decrease during the first quarter of 2025 when compared to the previous quarter due to a decrease in the average balance of all deposit categories. Interest expense on borrowed funds and other interest-bearing liabilities decreased by $46,000 primarily due to a $4.4 million, or 41.4%, decrease in the average balance of borrowed funds and other interest-bearing liabilities due to the repayment of $6.3 million of our FHLBNY borrowings during the first quarter of 2025.

    The decrease in interest expense when compared to the prior year quarter was primarily due to a 25 basis points decrease in average interest rate paid on interest-bearing liabilities and a $39.9 million, or 7.6%, decrease in the average balance of interest-bearing liabilities. During the first quarter of 2025 as compared to the same period in 2024, interest expense on deposits decreased by $402,000, or 12.4%, due to a 24 basis points decrease in the average interest rate paid on deposit accounts and a $16.6 million, or 3.4%, decrease in the average balance of deposits. The decrease in the average interest rate paid on deposit accounts was primarily due to the decrease in market interest rates and time deposit repricing. Average interest-bearing deposit balances decreased 3.4% during the first quarter of 2025 from the first quarter of 2024 due to a decrease in all deposit categories except money market accounts. During the first quarter of 2025, interest expense on borrowed funds and other interest-bearing liabilities decreased by $172,000, or 74.1%, compared to the first quarter of 2024, primarily due to a $23.3 million, or 78.9%, decrease in average borrowed funds and other interest-bearing liabilities outstanding due to the repayment of $25.0 million of FHLBNY borrowings during 2024 and $6.3 million during the first quarter of 2025.

    Non-Interest Income

    Non-interest income was $724,000 for the first quarter of 2025, a decrease of $344,000, or 32.2%, as compared to $1.1 million for the fourth quarter of 2024, and an increase of $17,000, or 2.4%, as compared to $707,000 for the first quarter of 2024. The decrease from the prior quarter was primarily due to a $139,000 decrease in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter of 2024, a $135,000 decrease in earnings on bank-owned life insurance during the first quarter of 2025 as the result of the recognition of a death benefit in the fourth quarter of 2024, and a decrease of $31,000 in service charges and fees. The increase from the prior year quarter was primarily due to a $35,000 increase in unrealized gain on equity securities and a $22,000 increase in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter of 2024.

    Non-Interest Expense

    Non-interest expense was $4.9 million for the first quarter of 2025, a decrease of $397,000, or 7.5%, as compared to $5.3 million for the fourth quarter of 2024, and a decrease of $117,000, or 2.3%, as compared to $5.0 million for the first quarter of 2024. The decrease from the prior quarter was primarily due to a decrease in salaries and employee benefits expense of $382,000, or 11.6%, along with a decrease in professional services expense of $50,000, or 13.7%. The decrease from the first quarter of 2024 was primarily related to a decrease in FDIC insurance of $207,000, or 74.2%.

    Income Tax Expense

    Income tax expense was $206,000 for the first quarter of 2025, a decrease of $72,000, or 25.9%, as compared to $278,000 for the fourth quarter of 2024, and an increase of $23,000, or 12.6%, as compared to $183,000 for the first quarter of 2024. The decrease in income tax expense from the prior quarter was primarily related to the decrease in pre-tax income earned during the current quarter, partially offset by an increase in the effective tax rate during the first quarter of 2025. The increase in income tax expense from the prior year quarter was due to an increase in pre-tax income earned during the current quarter along with an increase in the effective tax rate in the first quarter of 2025. The effective tax rate was 16.3% for the first quarter of 2025 as compared to 15.9% for the fourth quarter of 2024 and 15.3% for the first quarter of 2024.

    Credit Quality

    The Company’s allowance for credit losses on loans was $5.2 million as of March 31, 2025 as compared to $5.1 million as of December 31, 2024. The Company’s allowance for credit losses on unfunded commitments was $323,000 as of March 31, 2025 as compared to $314,000 as of December 31, 2024. Non-performing assets as a percent of total assets decreased to 0.50% at March 31, 2025 as compared to 0.55% at December 31, 2024, primarily due to a decrease in non-performing assets of $332,000, or 8.7%. On March 26, 2025, one commercial relationship with two loans representing a total amortized cost of $1.2 million on non-accrual status was sold at foreclosure. Subject to customary foreclosure proceedings, the Bank expects the sale to close during the second quarter of this year. The Company’s allowance for credit losses on loans as a percent of loans at amortized cost was 0.93% at March 31, 2025 and December 31, 2024.

    The Company recorded a provision for credit losses of $48,000 for the first quarter of 2025, of which $39,000 related to the loan portfolio and $9,000 related to the reserve for unfunded commitments.

    The increase in the allowance for credit losses on loans and unfunded commitments and the corresponding provision for credit losses recognized during the first quarter of 2025 was the result of an increase to the quantitative estimated loss calculation inclusive of forecasted economic trends, primarily related to the mortgage loan pools, including residential mortgages and commercial real estate mortgages.

    Balance Sheet Summary

    Total assets at March 31, 2025 were $689.0 million, a $3.5 million increase, or 0.5%, as compared to $685.5 million at December 31, 2024. Cash and cash equivalents decreased by $2.7 million, or 8.2%, from $33.1 million at December 31, 2024 to $30.4 million at March 31, 2025. The decrease in cash and cash equivalents was primarily due to an increase in loans receivable, net of $7.0 million, or 1.3%, and a decrease in long-term debt due to the repayment of FHLBNY borrowings of $6.3 million in the first quarter of 2025. These decreases were partially offset by an increase in total deposits of $9.8 million, or 1.7%. Securities available for sale were $55.8 million at March 31, 2025 as compared to $56.5 million at December 31, 2024 which decrease was primarily due to repayments during the first quarter of 2025. Net loans receivable at March 31, 2025 and December 31, 2024 were $551.6 million and $544.6 million, respectively. Total deposits at March 31, 2025 were $582.7 million, an increase of $9.8 million, or 1.7%, compared to $573.0 million at December 31, 2024. Total borrowings decreased to $4.0 million at March 31, 2025, a decrease of $6.3 million, or 61.0%, as compared to $10.3 million as of December 31, 2024.

    Stockholders’ equity at March 31, 2025 was $90.7 million, a $794,000, or 0.9%, increase as compared to $89.9 million at December 31, 2024. The increase in stockholders’ equity was primarily attributed to $1.1 million in net income earned during the first quarter of 2025.
      
    About Lake Shore
      
    Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the mid-tier holding company of Lake Shore Savings Bank, a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. The Company’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about the Company is available at www.lakeshoresavings.com.

    Safe-Harbor

    This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, tariffs, unanticipated changes in our liquidity position, climate change, public health issues, geopolitical conflict, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized.

    Source: Lake Shore Bancorp, Inc.
    Category: Financial

    Investor Relations/Media Contact
    Kim C. Liddell
    President, CEO, and Director
    Lake Shore Bancorp, Inc.
    31 East Fourth Street
    Dunkirk, New York 14048
    (716) 366-4070 ext. 1012

    Selected Financial Condition Data

        March 31,     December 31,  
        2025     2024  
        (Unaudited)  
        (Dollars in thousands)  
                 
    Total assets $ 688,996   $ 685,504  
    Cash and cash equivalents   30,428     33,131  
    Securities, at fair value   55,801     56,495  
    Loans receivable, net   551,640     544,620  
    Deposits   582,730     572,978  
    Long-term debt   4,000     10,250  
    Stockholders’ equity   90,662     89,868  

    Statements of Income

        Three Months Ended  
        March 31,  
        2025     2024  
      (Unaudited)  
      (Dollars in thousands, except per share amounts)  
    Interest income $ 8,367   $ 8,609  
    Interest expense   2,902     3,476  
    Net interest income   5,465     5,133  
    Provision (credit) for credit losses   48     (352 )
    Net interest income after provision (credit) for credit losses   5,417     5,485  
    Total non-interest income   724     707  
    Total non-interest expense   4,878     4,995  
    Income before income taxes   1,263     1,197  
    Income tax expense   206     183  
    Net income $ 1,057   $ 1,014  
    Basic and diluted earnings per share $ 0.19   $ 0.17  
                 
    Selected Financial Ratios            
    Return on average assets(1)   0.62 %   0.57 %
    Return on average equity(1)   4.65 %   4.69 %
    Average interest-earning assets to average interest-bearing liabilities   129.52 %   126.33 %
    Interest rate spread(1)   2.94 %   2.55 %
    Net interest margin(1)   3.49 %   3.10 %
    Efficiency ratio   78.82 %   85.53 %

    (1) Annualized.

    Average Balance Sheets, Interest, and Rates (Quarterly Comparison)

        For the Three Months Ended     For the Three Months Ended  
        March 31, 2025     March 31, 2024  
        Average   Interest Income/   Yield/     Average   Interest Income/   Yield/  
        Balance   Expense   Rate(2)     Balance   Expense   Rate(2)  
        (Unaudited)  
        (Dollars in thousands)  
    Interest-earning assets:                                    
    Interest-earning deposits & federal funds sold   $ 23,562   $ 234   3.97 %   $ 44,038   $ 598   5.43 %
    Securities(1)     57,804     381   2.64 %     61,728     425   2.75 %
    Loans, including fees     545,561     7,752   5.68 %     556,151     7,586   5.46 %
    Total interest-earning assets     626,927     8,367   5.34 %     661,917     8,609   5.20 %
    Other assets     51,656                 50,866            
    Total assets   $ 678,583               $ 712,783            
                                         
    Interest-bearing liabilities                                    
    Demand & NOW accounts   $ 62,784   $ 15   0.10 %   $ 69,753   $ 17   0.10 %
    Money market accounts     152,680     867   2.27 %     139,794     966   2.76 %
    Savings accounts     53,541     9   0.07 %     62,684     11   0.07 %
    Time deposits     208,804     1,951   3.74 %     222,179     2,250   4.05 %
    Borrowed funds & other interest-bearing liabilities     6,237     60   3.85 %     29,556     232   3.14 %
    Total interest-bearing liabilities     484,046     2,902   2.40 %     523,966     3,476   2.65 %
    Other non-interest bearing liabilities     103,593                 102,299            
    Stockholders’ equity     90,944                 86,518            
    Total liabilities & stockholders’ equity   $ 678,583               $ 712,783            
    Net interest income         $ 5,465               $ 5,133      
    Interest rate spread               2.94 %               2.55 %
    Net interest margin               3.49 %               3.10 %

    (1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 3.04% and 3.13% for the three months ended March 31, 2025 and 2024, respectively. Yields above are not presented on a tax equivalent basis.
    (2) Annualized.

    Average Balance Sheets, Interest, and Rates (Prior Quarter Comparison)

        For the Three Months Ended     For the Three Months Ended  
        March 31, 2025     December 31, 2024  
        Average   Interest Income/   Yield/     Average   Interest Income/   Yield/  
        Balance   Expense   Rate(2)     Balance   Expense   Rate(2)  
        (Dollars in thousands)  
    Interest-earning assets:                                    
    Interest-earning deposits & federal funds sold   $ 23,562   $ 234   3.97 %   $ 43,366   $ 499   4.60 %
    Securities(1)     57,804     381   2.64 %     61,137     388   2.54 %
    Loans, including fees     545,561     7,752   5.68 %     540,376     7,703   5.70 %
    Total interest-earning assets     626,927     8,367   5.34 %     644,879     8,590   5.33 %
    Other assets     51,656                 49,207            
    Total assets   $ 678,583               $ 694,086            
                                         
    Interest-bearing liabilities                                    
    Demand & NOW accounts   $ 62,784   $ 15   0.10 %   $ 64,465   $ 15   0.09 %
    Money market accounts     152,680     867   2.27 %     153,407     912   2.38 %
    Savings accounts     53,541     9   0.07 %     55,451     9   0.06 %
    Time deposits     208,804     1,951   3.74 %     214,150     2,207   4.12 %
    Borrowed funds & other interest-bearing liabilities     6,237     60   3.85 %     10,641     106   3.98 %
    Total interest-bearing liabilities     484,046     2,902   2.40 %     498,114     3,249   2.61 %
    Other non-interest bearing liabilities     103,593                 105,881            
    Stockholders’ equity     90,944                 90,091            
    Total liabilities & stockholders’ equity   $ 678,583               $ 694,086            
    Net interest income         $ 5,465               $ 5,341      
    Interest rate spread               2.94 %               2.72 %
    Net interest margin               3.49 %               3.31 %

    (1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 3.04% and 2.91% for the three months ended March 31, 2025 and December 31, 2024, respectively. Yields above are not presented on a tax equivalent basis.
    (2) Annualized.

    Selected Quarterly Financial Data

        As of or For the Three Months Ended  
        March 31, 2025     December 31, 2024     September 30, 2024     June 30, 2024     March 31, 2024  
        (Unaudited)  
        (Dollars in thousands, except per share amounts)  
    Selected Financial Condition Data:                              
    Total assets   $ 688,996     $ 685,504     $ 697,596     $ 711,042     $ 717,582  
    Cash and cash equivalents     30,428       33,131       49,981       60,987       54,953  
    Securities, at fair value     55,801       56,495       58,782       57,309       58,682  
    Loans receivable, net     551,640       544,620       539,005       544,337       555,455  
    Deposits     582,730       572,978       587,563       589,395       594,704  
    Long-term debt     4,000       10,250       10,250       23,250       25,250  
    Stockholders’ equity     90,662       89,868       89,877       86,932       86,510  
                                   
    Condensed Statements of Income:                              
    Interest income   $ 8,367     $ 8,590     $ 8,851     $ 8,754     $ 8,609  
    Interest expense     2,902       3,249       3,468       3,548       3,476  
    Net interest income     5,465       5,341       5,383       5,206       5,133  
    Provision (credit) for credit losses     48       (613 )     (229 )     (285 )     (352 )
    Net interest income after provision (credit) for credit losses     5,417       5,954       5,612       5,491       5,485  
    Total non-interest income     724       1,068       791       738       707  
    Total non-interest expense     4,878       5,275       4,813       4,897       4,995  
    Income before income taxes     1,263       1,747       1,590       1,332       1,197  
    Income tax expense     206       278       258       216       183  
    Net income   $ 1,057     $ 1,469     $ 1,332     $ 1,116     $ 1,014  
    Basic and diluted earnings per share   $ 0.19     $ 0.26     $ 0.24     $ 0.19     $ 0.17  
                                   
    Selected Financial Ratios:                              
    Return on average assets(1)     0.62 %     0.85 %     0.76 %     0.63 %     0.57 %
    Return on average equity(1)     4.65 %     6.52 %     6.03 %     5.19 %     4.69 %
    Average interest-earning assets to average interest-bearing liabilities     129.52 %     129.46 %     128.81 %     127.00 %     126.33 %
    Interest rate spread(1)     2.94 %     2.72 %     2.67 %     2.56 %     2.55 %
    Net interest margin(1)     3.49 %     3.31 %     3.28 %     3.14 %     3.10 %
    Efficiency ratio     78.82 %     82.30 %     77.96 %     82.39 %     85.53 %
                                   
    Asset Quality Ratios:                              
    Non-performing loans as a percent of loans at amortized cost     0.62 %     0.69 %     0.74 %     0.73 %     0.71 %
    Non-performing assets as a percent of total assets     0.50 %     0.55 %     0.57 %     0.56 %     0.55 %
    Allowance for credit losses on loans as a percent of loans at amortized cost     0.93 %     0.93 %     1.01 %     1.08 %     1.12 %
    Allowance for credit losses on loans as a percent of non-performing loans     148.89 %     134.91 %     137.03 %     148.20 %     157.62 %
                                   
    Share Information:                              
    Common stock, number of shares outstanding     5,760,272       5,735,226       5,737,036       5,737,036       5,684,784  
    Treasury stock, number of shares held     1,076,242       1,101,288       1,099,478       1,099,478       1,151,730  
    Book value per share   $ 15.74     $ 15.67     $ 15.67     $ 15.15     $ 15.22  
    Tier 1 leverage ratio     14.31 %     13.83 %     13.37 %     13.02 %     12.87 %
    Total risk-based capital ratio     18.67 %     18.79 %     18.85 %     18.64 %     18.13 %

    (1) Annualized

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

     

    Q1 2025 Financial Performance
    Total assets increased $75.6 million or 7.6% to $1.07 billion at March 31, 2025, from $993.6 million at December 31, 2024, and decreased $17.5 million or 1.6% from $1.09 billion at March 31, 2024.     Net interest income decreased $149 thousand or 1.8% to $8.1 million for the quarter ended March 31, 2025, from $8.2 million for the quarter ended December 31, 2024, and increased $611 thousand or 8.2% from $7.5 million for the quarter ended March 31, 2024.
           
    Loans held-for-portfolio decreased $13.9 million or 1.5% to $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024, and decreased $11.7 million or 1.3% from $897.9 million at March 31, 2024.      Net interest margin (“NIM”), annualized, was 3.25% for the quarter ended March 31, 2025, compared to 3.13% for the quarter ended December 31, 2024 and 2.95% for the quarter ended March 31, 2024.
           
    Total deposits increased $72.5 million or 8.7% to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024, and decreased $6.5 million or 0.7% from $916.9 million at March 31, 2024. Noninterest-bearing deposits decreased $5.8 million or 4.4% to $126.7 million at March 31, 2025 compared to $132.5 million at December 31, 2024, and decreased $2.0 million or 1.5% compared to $128.7 million at March 31, 2024.      A $203 thousand release of provision for credit losses was recorded for the quarter ended March 31, 2025, compared to a $14 thousand provision and a $33 thousand release of provision for credit losses for the quarters ended December 31, 2024 and March 31, 2024, respectively. At March 31, 2025, the allowance for credit losses on loans to total loans outstanding was 0.95%, compared to 0.94% at December 31, 2024 and 0.96% at March 31, 2024.
           
    The loans-to-deposits ratio was 98% at March 31, 2025, compared to 108% at December 31, 2024 and 98% at March 31, 2024.      Total noninterest income decreased $62 thousand or 5.3% to $1.1 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and was virtually unchanged compared to the quarter ended March 31, 2024.
           
    Total nonperforming loans increased $2.2 million or 28.9% to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024, and increased $600 thousand or 6.6% from $9.1 million at March 31, 2024. Nonperforming loans to total loans was 1.09% and the allowance for credit losses on loans to total nonperforming loans was 86.95% at March 31, 2025.      Total noninterest expense increased $856 thousand or 12.1% to $7.9 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and increased $258 thousand or 3.4% compared to the quarter ended March 31, 2024.
           
           The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at March 31, 2025.

    Operating Results

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

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

    Q1 2025 vs Q4 2024

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

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

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

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

    Q1 2025 vs Q1 2024

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

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

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

    Noninterest Income

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

    Q1 2025 vs Q4 2024

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

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

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

    Q1 2025 vs Q1 2024

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

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

    Noninterest Expense

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

    Q1 2025 vs Q4 2024

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

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

    Q1 2025 vs Q1 2024

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

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

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

    Balance Sheet Review, Capital Management and Credit Quality

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

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

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

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

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

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

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

      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Nonperforming Loans:                  
    One-to-four family $ 762     $ 537     $ 745     $ 822     $ 835  
    Home equity loans   368       298       338       342       83  
    Commercial and multifamily   5,627       3,734       4,719       5,161       4,747  
    Construction and land   22       24       25       28       29  
    Manufactured homes   501       521       230       136       166  
    Floating homes   2,363       2,363       2,377       2,417       3,192  
    Commercial business   —       11       23       —       —  
    Other consumer   10       3       32       3       1  
    Total nonperforming loans   9,653       7,491       8,489       8,909       9,053  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       —       575  
    Manufactured homes   41       —       115       115       115  
    Total OREO and repossessed assets   41       —       115       115       690  
    Total NPAs $ 9,694     $ 7,491     $ 8,604     $ 9,024     $ 9,743  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   7.9 %     7.3 %     8.7 %     9.1 %     8.5 %
    Home equity loans   3.8       4.0       3.9       3.8       0.9  
    Commercial and multifamily   58.0       49.8       54.8       57.2       48.7  
    Construction and land   0.2       0.3       0.3       0.3       0.3  
    Manufactured homes   5.2       7.0       2.7       1.5       1.7  
    Floating homes   24.4       31.5       27.6       26.8       32.8  
    Commercial business   —       0.1       0.3       —       —  
    Other consumer   0.1       —       0.4       —       —  
    Total nonperforming loans   99.6       100.0       98.7       98.7       92.9  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       —       5.9  
    Manufactured homes   0.4       —       1.3       1.3       1.2  
    Total OREO and repossessed assets   0.4       —       1.3       1.3       7.1  
    Total NPAs   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
     

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

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

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

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

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

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

    Forward-Looking Statements Disclaimer

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

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

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

    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)

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

    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)

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

    KEY FINANCIAL RATIOS
    (unaudited)

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

    PER COMMON SHARE DATA
    (unaudited)

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

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

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

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
      Average Outstanding Balance   Interest Earned/Paid   Yield/Rate   Average Outstanding Balance   Interest Earned/Paid   Yield/Rate   Average Outstanding Balance   Interest Earned/Paid   Yield/Rate
    Interest-Earning Assets:                                  
    Loans receivable $ 896,822     $ 12,588   5.69 %   $ 900,832     $ 13,070   5.77 %   $ 895,430     $ 12,233   5.49 %
    Interest-earning cash   95,999       1,010   4.27 %     130,412       1,534   4.68 %     107,361       1,416   5.30 %
    Investments   12,924       108   3.39 %     13,263       132   3.96 %     14,038       111   3.18 %
    Total interest-earning assets $ 1,005,745       13,706   5.53 %     1,044,507     $ 14,736   5.61 %   $ 1,016,829       13,760   5.44 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 335,419       2,058   2.49 %   $ 350,495       2,476   2.81 %   $ 284,455       1,866   2.64 %
    Demand and NOW accounts   140,905       108   0.31 %     144,470       128   0.35 %     159,762       141   0.35 %
    Certificate accounts   289,960       3,039   4.25 %     301,293       3,413   4.51 %     315,495       3,696   4.71 %
    Subordinated notes   11,766       168   5.79 %     11,756       168   5.69 %     11,724       168   5.76 %
    Borrowings   25,000       262   4.25 %     30,546       331   4.31 %     40,000       429   4.31 %
    Total interest-bearing liabilities $ 803,050       5,635   2.85 %   $ 838,560       6,516   3.09 %   $ 811,436       6,300   3.12 %
    Net interest income/spread     $ 8,071   2.68 %       $ 8,220   2.52 %       $ 7,460   2.32 %
    Net interest margin         3.25 %           3.13 %           2.95 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             125 %             125 %        
    Noninterest-bearing deposits $ 126,215             $ 130,476             $ 132,438          
    Total deposits   892,499     $ 5,205   2.37 %     926,734     $ 6,017   2.58 %     892,150     $ 5,703   2.57 %
    Total funding (1)   929,265       5,635   2.46 %     969,036       6,516   2.68 %     943,874       6,300   2.68 %
    (1) Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
       

    LOANS
    (Dollars in thousands, unaudited)

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

    DEPOSITS
    (Dollars in thousands, unaudited)

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

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)

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

    OTHER STATISTICS
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                         
    Total loans to total deposits     97.53 %     107.64 %     97.13 %     98.27 %     98.11 %
    Noninterest-bearing deposits to total deposits     13.92 %     15.82 %     13.95 %     13.78 %     14.03 %
                         
    Average total assets for the quarter   $ 1,051,135     $ 1,089,067     $ 1,095,404     $ 1,070,579     $ 1,062,036  
    Average total equity for the quarter   $ 104,543     $ 103,181     $ 102,059     $ 100,961     $ 101,292  
                                             

    Contact

    Financial:
    Wes Ochs  
    Executive Vice President/CFO
    (206) 436-8587  
       
    Media:
    Laurie Stewart  
    President/CEO
    (206) 436-1495  
       

    The MIL Network –

  • MIL-OSI Security: Hammond Man Sentenced for Receipt of Materials Involving Sexual Exploitation of Minors

    Source: Office of United States Attorneys

    NEW ORLEANS, LA – Acting U.S. Attorney Michael M. Simpson announced that JOSEPH AUTHEMENT (“AUTHEMENT”), age 25, of Hammond, LA, was sentenced on April 16, 2025, for Receipt of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1). 

    According to court documents, on March 11, 2024, Homeland Security Investigations (“HSI”)  obtained a federal search warrant to seize AUTHEMENT’s Apple iPhone.  On March 12, 2024, HSI special agents (“SA”) located AUTHEMENT at his residence in Hammond, LA.  The agents seized AUTHEMENT’s iPhone and located images and videos depicting the sexual exploitation of minors on that phone.  SAs later determined AUTHEMENT used a messaging application to download and purchase child sex abuse materials.

    United States District Judge Jane Triche Milazzo sentenced AUTHEMENT to sixty (60) months imprisonment, supervised release for (10) ten years upon release from imprisonment and payment of a $100 mandatory special assessment fee.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. 

    The U.S. Attorney’s Office would like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations, and the Rio Grande Valley Child Exploitation Investigations Task Force.  The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.

    MIL Security OSI –

  • MIL-OSI Security: Jury Convicts Florida Man For Stealing $10.9 Million From Medicare

    Source: Office of United States Attorneys

    Tampa, FL – United States Attorney Gregory W. Kehoe announces that a federal jury has found Lino Mallari Gutierrez, a/k/a “Joe Gutierrez,” (age, Palm City) guilty of conspiracy to commit health care and wire fraud, conspiracy to violate the federal anti-kickback statute, five substantive counts of health care fraud, and four substantive counts of payment of kickbacks in connection with a heath care program. After the jury verdict, the Court remanded Gutierrez into custody. Gutierrez faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for July 24, 2025.  Gutierrez was indicted on August 22, 2023.

    According to testimony and evidence presented at trial, Gutierrez and his co-conspirators, including Jonathan Rouffe, owned and operated two durable medical equipment (DME) companies that collectively billed Medicare more than $10.9 million for medically unnecessary DME, of which more than $5 million was paid to Gutierrez and his co-conspirators. Gutierrez and his co-conspirators paid kickbacks to marketing companies in exchange for signed doctors’ orders for unnecessary braces, which Gutierrez and the co-conspirators then used to bill Medicare. The marketing companies used call centers to solicit Medicare patients and telemedicine companies to procure prescriptions for unnecessary braces for these patients. Gutierrez and Rouffe concealed their role in the scheme by putting the DME companies in the names of straw owners.

    As part of the conspiracy to commit health care and wire fraud, Gutierrez also filed false records with his employer and a private regulatory organization to conceal his involvement in the DME companies. Gutierrez and Rouffe were in the process of establishing four more DME companies with additional straw owners—including Gutierrez’s mother and two of Gutierrez’s friends—when the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI) identified the DME fraud through a national operation, which began in the Middle District of Florida, and through which dozens of co-conspirators were identified, charged, and convicted. Prior to law enforcement action, Gutierrez and Rouffe had already taken multiple steps to use these additional DME companies to bill Medicare for additional fraudulent claims. After learning of law enforcement action, Gutierrez moved Medicare proceeds from his account into other bank accounts under his control.

    Rouffe previously pled guilty to conspiracy to commit health care fraud. He was sentenced to four years in prison for his role in the fraud scheme.

    This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jennifer Peresie and Trial Attorney Margaret Mortimer of the Department of Justice Criminal Division’s Fraud Section.

    MIL Security OSI –

  • MIL-OSI: Hampton Financial Corporation Announces 2nd Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

    TORONTO, April 29, 2025 (GLOBE NEWSWIRE) — Hampton Financial Corporation (“Hampton” or the “Company”, TSXV: HFC) today announced its financial results for the 2nd quarter ended February 28th, 2025.

    Second Quarter ended February 28th, 2025.

    IFRS results highlights:

    –  Q2 Revenue of $2,854,000; an increase of 53% year-over-year
    –  Q2 Net Loss of $(1,312,000) or $(0.02) per share;

    Fiscal results (IFRS results adjusted for non-cash Items) highlights:

    –  Q2 Adjusted Net Loss of $(421,000) or $(0.01) per share;
    –  Q2 EBITDA of $(690,000) vs $(441,000) in the comparative quarter last year

    Summary of Corporate Developments:

    Our 2nd quarter results reflect some improvement which is being felt across across the Capital Markets industry. Corporate finance transactions have improved slightly over the first half of our fiscal year but are still well below 2023 levels. While 2025 is showing some signs of improvement, the year ahead for our core business remains unclear. That said we intend to move ahead with a number of initiatives to further expand our business portfolio, while growing our existing Wealth Management, Commercial Lending and Capital Markets businesses.

    “The second quarter results continue to demonstrate the industry-wide challenges faced during the fall of 2024, but we are beginning to see some selective improvements. Capital Markets activities have started to improve as interest rates have stabilized, so we are hopeful for a stronger second half of the year. We remain optimistic for the balance of the fiscal year,” said Hampton Executive Chairman & CEO Peter Deeb.

    Copies of Hampton’s unaudited interim financial statements and its Management’s Discussion & Analysis for the three and six months ended February 28, 2025, can be accessed on SEDAR+ at www.sedar.com.

    Supplementary to the Company’s February 21, 2025 press release announcing the reinvestment of debenture redemption proceeds, the purchase by Peter Deeb of the 255,050 subordinate voting shares of the Company constitutes a ‘related party transaction’ as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders In Special Transactions (“MI 61-101”) but is exempt from the shareholder approval and formal valuation requirements under MI 61-101 as the fair market value of the securities issued was less than 25% of the Company’s market capitalization.

    About Hampton Financial Corporation

    Hampton is a unique private equity firm that seeks to build shareholder value through long-term strategic investments.

    Through its wholly-owned subsidiary, Hampton Securities Limited (“HSL”), Hampton is actively engaged in family office, wealth management, institutional services and capital markets activities. HSL is a full-service investment dealer, regulated by CIRO and registered in Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, Northwest Territories, Ontario, and Quebec. In addition, the Company, through HSL, provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on recognized securities exchanges in Canada and abroad and HSL’s Corporate Finance Group provides early stage, growing companies the capital, they need to create value for investors. HSL continues to develop its Wealth Management, Advisory Team and Principal-Agent programs which offers to the industry’s most experienced wealth managers a unique and flexible operating platform that provides additional freedom, financial support, and tax effectiveness as they build and manage their professional practice.

    Through its wholly-owned subsidiary, Oxygen Working Capital (“OWC”) the company offers factoring and other commercial financing services to clients across Canada.

    The Company is exploring opportunities to diversify its sources of revenue by way of strategic investments in both complimentary business and non-core sectors that can leverage the expertise of its Board and the diverse experience of its management team.

    For more information, please contact:

    Olga Juravlev
    Chief Financial Officer
    Hampton Financial Corporation
    (416) 862-8701

    Or

    Peter M. Deeb
    Executive Chairman & CEO
    Hampton Financial Corporation
    (416) 862-8651

    The TSXV has in no way approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

    No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States or to a U.S. person absent registration or pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States.

    Forward-Looking Statements

    This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “should”, “hopeful”, “recovery”, “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project” or similar words, including negatives thereof, suggesting future outcomes.

    Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors beyond the Company’s ability to predict or control which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein. Forward-looking statements are not a guarantee of future performance. Although the Company believes that any forward-looking statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such statements, there can be no assurance that any such forward-looking statements will prove to be accurate. Actual results may vary, and vary materially, from those expressed or implied by the forward-looking statements herein. Accordingly, readers are advised to rely on their own evaluation of the risks and uncertainties inherent in forward-looking statements herein and should not place undue reliance upon such forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Any forward-looking statements herein are made only as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

    The MIL Network –

  • MIL-OSI: CLIMATEROCK ANNOUNCES REVISED MONTHLY SPONSOR CONTRIBUTION OF $0.04 PER SHARE TO TRUST ACCOUNT FOR PROPOSED EXTENSION

    Source: GlobeNewswire (MIL-OSI)

    London, April 29, 2025 (GLOBE NEWSWIRE) — ClimateRock (“ClimateRock” or the “Company”) (OTC: “CLRCF”, “CLRCUF”, “CLRWF”) announced today that, in connection with the Company’s upcoming extraordinary general meeting of shareholders (the “Special Meeting”) to consider and approve an extension of time for the Company to consummate an initial business combination from May 2, 2025 to November 2, 2025 (the “Extension”), U.N. SDG Support LLC (the “Sponsor”) or its designees have agreed to revise their intended contribution to support the Extension, such that they will contribute to the Company as a loan an aggregate of $0.04 for each Class A ordinary share that was sold in the Company’s initial public offering (the “Public Share”) that is not redeemed, for each calendar month (commencing on May 2, 2025 and on the 1st day of each subsequent month) until November 2, 2025 (each, an “Extension Period”), or portion thereof, that is needed to complete an initial business combination (the “Contribution”). For example, if the Company takes until November 2, 2025 to complete its initial business combination, which would represent six calendar months, the Sponsor or its designees would make aggregate Contributions resulting in a redemption amount of approximately $12.34 per unredeemed share, in comparison to the current redemption amount of approximately $12.10 per share.

    Each Contribution will be deposited in the trust account within seven calendar days from the beginning of each Extension Period (or portion thereof), and any Contribution is conditioned upon the implementation of the Extension. No Contribution will occur if the Extension is not approved or is not completed. The amount of each Contribution will not bear interest and will be repayable by the Company to the Sponsor or its designees upon consummation of its initial business combination. The Company will have the sole discretion whether to continue extending for additional calendar months until November 2, 2025. If the Company opts not to utilize any remaining portion of the Extension Period, then the Company will liquidate and dissolve promptly in accordance with its charter, and its Sponsor’s obligation to make additional contributions will terminate.

    In connection with the above announcement of the Contribution to be made by the Sponsor or its designees if the Extension is approved, the deadline for holders of the Company’s Class A ordinary shares issued in the Company’s initial public offering to submit their shares for redemption in connection with the Extension, is being extended to 10:00 a.m., Eastern time, on Wednesday, April 30, 2025.

    In addition, the Company agreed to waive its right to withdraw up to $50,000 of interest accrued on the Company’s trust account to pay dissolution expenses, should the Company ultimately liquidate prior to an initial business combination. As a result, the Company will not withdraw up to $50,000 of interest, as permitted by its charter, for such dissolution expenses upon liquidation. If the Extension is approved by shareholders and implemented by the Company, all interest then-accrued will be held in the trust account and will be released to public shareholders upon the earliest to occur of (i) the redemption of the Public Shares in connection with a vote seeking to amend the provisions of the Company’s charter, (ii) the completion of the Company’s initial business combination and (iii) the redemption of 100% of the Public Shares if the Company is unable to complete its initial business combination by November 2, 2025 or such earlier date as determined by the Company’s board of directors.

    About ClimateRock

    ClimateRock is a special purpose acquisition company led by Chairman, Charles Ratelband, and CEO, Per Regnarsson, and is incorporated as a Cayman Islands exempted company for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses in any industry or geographic location, but it is focused on acquiring a target within the sustainable energy industry in the Organization for Economic Co-operation and Development countries, including climate change, environment, renewable energy and emerging, clean technologies. For more information, please visit Driving The Energy Transition – ClimateRock (climate-rock.com).

    Forward-Looking Statements

    This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. These forward-looking statements and factors that may cause such differences include, without limitation, uncertainties relating to the Company’s shareholder approval of the Extension, its inability to complete an initial business combination within the required time period or, and other risks and uncertainties indicated from time to time in filings with the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 under the heading “Risk Factors” and in other reports the Company has filed, or to be filed, with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

    Participants in the Solicitation

    ClimateRock and its directors, executive officers, other members of management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies from the securityholders of the Company in favor of the approval of the Extension Proposal. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of the Company’s directors and officers in the Company’s definitive proxy statement filed with the SEC on April 17, 2025 (as may be amended, the “Proxy Statement”), which may be obtained free of charge from the sources indicated above.

    No Offer or Solicitation

    This press release s shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Extension. This communication shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act or an exemption therefrom.

    Additional Information and Where to Find It

    ClimateRock urges investors, shareholders and other interested persons to read the Proxy Statement as well as other documents filed by the Company with the SEC, because these documents will contain important information about the Company and the Extension. Shareholders may obtain copies of the Proxy Statement, without charge, at the SEC’s website at www.sec.gov or by directing a request to: Advantage Proxy, Inc., P.O. Box 10904, Yakima, WA 98909, Attn: Karen Smith.

    INVESTOR RELATIONS CONTACT

    ClimateRock
    Phone number: +44 208 050 7820
    Email: info@climate-rock.com 

    The MIL Network –

  • MIL-OSI Security: New Britain Man Sentenced to 43 Months in Federal Prison for Trafficking Narcotic Pills

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that ERIK PETERSEN, 44, of New Britain, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 43 months of imprisonment, followed by three years of supervised release, for trafficking narcotic pills.

    According to court documents and statements made in court, in May 2023, members of the DEA New Haven Tactical Diversion Squad began investigating suspicious packages that were being delivered to the Newington residence of Petersen’s brother, Kyle Petersen.  At the time, Kyle Petersen was on federal supervised release following a federal conviction in 2017 involving the trafficking of fentanyl and prescription pills.  During the investigation, a court-authorized search of a package mailed to Kyle Petersen contained more than 400 grams of pills containing Protonitazene, a synthetic opioid typically more potent than fentanyl.  The investigation revealed that Kyle Petersen had received approximately 34 similar packages mailed from the same source in Michigan, and also received approximately 46 packages from California and Oregon suspected to contain multiple pounds of marijuana.  Investigators also made controlled purchases of counterfeit Percocet pills containing fentanyl from Erik Petersen.

    Kyle and Erik Petersen were arrested on federal criminal complaints on April 3, 2024.  On that date, a search of Kyle Petersen’s residence revealed more than a kilogram of counterfeit Adderall pills containing methamphetamine, counterfeit oxycodone pills containing fentanyl, counterfeit Xanax pills, a large quantity of Protonitazene, approximately 40 grams of cocaine, and $76,650 in cash.

    Erik Petersen has been detained since his arrest.  On December 19, 2024, he pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, cocaine, fentanyl, Bromazolam, and Protonitazene.

    Kyle Petersen has pleaded guilty and is detained while awaiting sentencing.

    This matter is being investigated by the DEA New Haven Tactical Diversion Squad, with the assistance of the U.S. Postal Inspection Service and the New Britain and Newington Police Departments.  The Tactical Diversion Squad is composed of personnel from the DEA, the Connecticut State Police, and the Bristol, Hamden, West Haven, Fairfield, Seymour, and Glastonbury Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.

    MIL Security OSI –

  • MIL-OSI: Urgently Announces First Quarter 2025 Earnings Release Date and Conference Call; Participation in Upcoming Investor Conferences

    Source: GlobeNewswire (MIL-OSI)

    VIENNA, Va., April 29, 2025 (GLOBE NEWSWIRE) — Urgent.ly, Inc. (Nasdaq: ULY) (“Urgently”), a U.S.-based leading provider of digital roadside and mobility assistance technology and services, today announced the date for the release of its first quarter 2025 financial results and its participation in upcoming investor conferences.

    First Quarter 2025 Earnings

    Urgently will host a conference call on Tuesday, May 13, 2025, at 5:00 p.m. Eastern Time to discuss its financial results for the first quarter ended March 31, 2025. Financial results will be issued in a press release prior to the call.

    Those wishing to participate via webcast should access the call through Urgently’s Investor Relations website at https://investors.geturgently.com. Those wishing to participate via telephone may dial in at 1-877-317-6789 (USA) or 1-412-317-6789 (International). The replay will be available via webcast through Urgently’s Investor Relations website.

    Upcoming Investor Conferences

    During the first quarter of 2025, executive management will participate in the following upcoming investor conferences:

    • The Sidoti Micro-Cap Virtual Investor Conference on May 21, 2025. Matt Booth, Chief Executive Officer of Urgently, and Tim Huffmyer, Chief Financial Officer of Urgently, are scheduled to present at 10:45 a.m. Eastern Time and will host one-on-one and small group investor meetings throughout the day.
    • The Jefferies Automotive Aftermarket Private and Public Conference at the InterContinental New York Barclay in New York, New York on May 22, 2025. Matt Booth and Harrison Russell, Senior Vice President of Partnerships of Urgently, will host one-on-one and small group investor meetings throughout the day.

    A live webcast and archived replay of conference presentation will be available on the Urgently Investor Relations website at https://investors.geturgently.com/.

    About Urgently

    Urgently is focused on helping everyone move safely, without disruption, by safeguarding drivers, promptly assisting their journey, and employing technology to proactively avert possible issues. The company’s digitally native software platform combines location-based services, real-time data, AI and machine-to-machine communication to power roadside assistance solutions for leading brands across automotive, insurance, telematics and other transportation-focused verticals. Urgently fulfills the demand for connected roadside assistance services, enabling its partners to deliver exceptional user experiences that drive high customer satisfaction and loyalty, by delivering innovative, transparent and exceptional connected mobility assistance experiences on a global scale. For more information, visit www.geturgently.com.

    For media and investment inquiries, please contact:
    Press: media@geturgently.com
    Investor Relations: investorrelations@geturgently.com

    The MIL Network –

  • MIL-OSI USA: Acting Chairman Pham Statement on OIG Investigation of Telework Violations

    Source: US Commodity Futures Trading Commission

    Acting Chairman Pham Statement on OIG Investigation of Telework Violations | CFTC

    /PressRoom/SpeechesTestimony/phamstatement042925
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    April 29, 2025

    WASHINGTON, D.C. – Commodity Futures Trading Commission Acting Chairman Caroline D. Pham issued the following statement on the CFTC Office of Inspector General (OIG) Investigation into Allegations of Telework Violations by a CFTC employee:
    “While I’m disturbed by the many accounts of serious misconduct by former union leadership in this report—including a lengthy scheme to defraud the American taxpayer over many years that previous management failed to address appropriately—I’m relieved that the OIG was able to promptly shine a light on these matters to ensure accountability,” Acting Chairman Pham said. “My team became aware of an administrative review of these matters upon taking office in January and immediately asked the OIG to take the lead to avoid any conflicts and ensure independence. The OIG substantiated multiple allegations of wrongdoing, some of which involved criminal violations of law. I’m particularly troubled by the many false statements made under oath to the OIG, and I applaud the diligent work of the investigators to sort out fact from fiction.”

    -CFTC-

    MIL OSI USA News –

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

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

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

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

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



    Read more:
    Game change Canadian election: Mark Carney leads Liberals to their fourth consecutive win

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

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

    Stabilize and strengthen the national economy

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

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



    Read more:
    U.S. tariffs are about to trigger the greatest trade diversion the world has ever seen

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

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

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

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

    Streamlining natural resource projects

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

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

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

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

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

    Boost Canada’s productivity through innovation

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

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



    Read more:
    Canada is lagging in innovation, and that’s a problem for funding the programs we care about

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

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

    Dealing with U.S. tariffs

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

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

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

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

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

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

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

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

    MIL OSI – Global Reports –