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Category: Finance

  • MIL-OSI USA: Cornyn Questions HHS Secretary Nominee RFK Jr. in Confirmation Hearing

    US Senate News:

    Source: United States Senator for Texas John Cornyn
    WASHINGTON – Today during the Senate Finance Committee’s hearing on the nomination of Robert F. Kennedy Jr. to serve as Secretary of the U.S. Department of Health and Human Services (HHS) under the Trump administration, U.S. Senator John Cornyn (R-TX) discussed with him the need to locate the unaccompanied migrant children who were lost in the interior U.S. under Joe Biden, improve Americans’ access to mental and behavioral health services, and strengthen the President’s Emergency Plan for AIDS Relief (PEPFAR) program after its success in the first Trump administration. Excerpts are below, and video can be found here.
    On Locating Unaccompanied Migrant Children Lost by the Biden Administration:
    CORNYN: “There were roughly 500,000 children—unaccompanied minors—that were placed with sponsors in the interior of the United States. The previous administration took the position that it was not the federal government’s responsibility once these children were placed with these sponsors.”
    “I look forward to working with you to find those children and to make sure that they’re not being abused.”
    KENNEDY: “Many of them we know have been sex trafficked, and childhood slavery, and it is a plight on America’s moral authority, and we need to find those kids.”
    On Improving Access to Mental and Behavioral Health Services:
    CORNYN: “Millions of Americans are experiencing mild to moderate mental health and substance abuse issues, yet many struggle with timely and effective access.”
    “Primary care physicians are most likely to be seeing these individuals as opposed to a specialist, and it makes it important that these individuals, primary care physicians, be trained in patient-centered care, which would strengthen the integration of behavioral health care with primary care services. Is this something that you are concerned about, something you’d be willing to work with us on in order to implement?”
    KENNEDY: “This is a priority for me.”
    “I was a heroin addict for 14 years. I’m in 42 years in recovery… I hear the many stories about denial or the barriers to access to care, and we need to improve that.”
    On Strengthening PEPFAR:
    CORNYN: “Under the first Trump administration, the number of people receiving HIV treatment in Africa through the President’s Emergency Plan for AIDS Relief, otherwise known as PEPFAR, it increased.”
    “Failure to continue this program, in my view, would risk ceding that leadership to adversaries like China… Would you work with me and my colleagues to make sure that this program continues to provide lifesaving antiviral drugs to people who are most in need?”
    KENNEDY: “I absolutely support PEPFAR, and I will happily work with you to strengthen the program.”

    MIL OSI USA News –

  • MIL-OSI USA: Schatz: Senate Must Stop RFK Jr.’s Dangerous Nomination

    US Senate News:

    Source: United States Senator for Hawaii Brian Schatz
    WASHINGTON – Ahead of confirmation hearings this week on the nomination of Robert F. Kennedy Jr. to be Secretary of the Department of Health and Human Services, U.S. Senator Brian Schatz (D-Hawai‘i) again urged his colleagues to vote no, highlighting Kennedy’s pivotal role in causing a measles outbreak in Samoa in 2019, which resulted in over 5,700 people getting infected and 83 people – mostly young children – dying.
    “The unique threat that Robert F. Kennedy Jr. poses to our country really cannot be overstated. And now it is up to us, the 100 members of the United States Senate, to deny him the opportunity to use America as one big test lab for bygone diseases,” said Senator Schatz. “I understand my Republican colleagues are facing a lot of pressure from within. But this nomination is not actually like the others. Look at what he’s done. Time and time again, he’s abandoned every physician’s first principle: Do no harm. He has caused disease. He has caused pain. He has caused death.”
    Senator Schatz continued, “The vote we’re going to be taking on this nominee is much more than your party or mine. It’s life or death. And I promise you, if this person is confirmed, it will not age well: not in a Republican primary, not in a Democratic primary, not in your family, not in your community. Nowhere will an RFK ‘aye’ vote age well. This person is going to cause disease across the United States. I urge a no vote.”
    Schatz likened Kennedy’s desire to run a “natural experiment” to see how people in Samoa would fare against the measles without protection to the Tuskegee experiment, in which the United States Public Health Service purposefully withheld treatment from men with syphilis in order to study the disease’s progression. The first person to raise the alarm about the cruelty of the experiment in 1965 was Schatz’s father, Dr. Irv Schatz.
    “I never thought that 60 years later, I’d be standing in the very body that passed legislation in response to that shameful period, arguing against confirming someone who wants to replicate that experiment at scale. That’s what RFK Jr. wants to do. He wants to use Americans as lab rats in a national experiment. And if it means bringing back the measles or the mumps or rubella or polio, so be it. That is the cost of doing business, as he sees it,” said Senator Schatz.
    A transcript of Senator Schatz’s remarks is below. Video is available here.
    If you heard your doctor say, ‘there’s no vaccine that is safe or effective.’ Or ‘there are much better candidates than HIV for what causes AIDS.’ Or ‘school shootings started happening with the introduction of Prozac and other drugs.’ If your physician said any of those things to you, you would look for a new physician.
    And yet, this week, my colleagues on the Senate Finance Committee and Health Committee are going to consider the nomination of someone who’s not only said all those things – and more. But if confirmed, he would be responsible for the health and well-being of the entire nation.
    The unique threat that Robert F. Kennedy Jr. poses to our country really cannot be overstated. And now it is up to us, the 100 members of the United States Senate, to deny him the opportunity to use America as one big test lab for bygone diseases. And I want to explain what I mean by that. He thinks that FDA trials are not enough to determine the efficacy of a vaccine. And so he’s suggesting that we use placebo in the population. What does that mean? Something might save someone’s life, and something might be essentially a sugar pill. But you don’t get to know. There are international conventions against this approach. The Tuskegee experiments conducted by the United States Public Health Service were universally rejected, and the Congress banned this approach because you cannot withhold lifesaving care from anyone.
    Now, saying crazy things doesn’t seem to be disqualifying for a nominee these days, I understand. But it’s not just that he said crazy things or holds deranged views. It’s that he has acted on them. And I want everybody to listen to what exactly happened in Samoa – not 20 years ago, not ten years ago, but in 2019. While he was chairman of the anti-vaccine group, he flew to Samoa because he sensed an opportunity to exploit people’s hesitations about taking the measles vaccine.
    People were understandably worried after an accident… involving improperly prepared vaccines killed two babies. It was a tragedy, and it was a costly mistake, but not a reason to abandon the measles vaccine altogether. But RFK sought to make people more afraid. He discouraged people from taking the vaccine because he wanted to run a “natural experiment.” To see how people fared against the disease without protection. To see how people fared against the disease without protection? This guy is up for HHS, Health and Human Services? This guy just wants to see what would happen if we didn’t give people the lifesaving protection that they need. He literally flew to the other side of the planet to turn people’s fears into a data collection opportunity.
    For some context here. Samoa is a small country and had a population of around 200,000 people at the time. People knew each other and word got around fast. A Kennedy was in town saying a thing. And so it was no small thing that this man from America, with the last name Kennedy, pretending to be a health expert, was there peddling all kinds of lies to prevent people from getting a lifesaving vaccine.
    And those lies spread fast. Vaccination rates plummeted, and within five months, Samoa had a measles outbreak. 5,700 people were infected with the measles. 83 people died. Almost all of them were children. That was the conclusion of Mr. Kennedy’s natural experiment. Children died. This isn’t some ancient history I’m digging up here. This was less than six years ago, and it is alarmingly reminiscent of one of the darkest chapters in our country’s history with the Tuskegee experiment.
    For 40 years, beginning in 1932, the United States Public Health Service ran an experiment with 600 black men in Alabama. The majority of them had syphilis, and the objective was to “observe the disease process.” And so even when penicillin became the standard of care in 1947, the men who needed that treatment, who could have been given lifesaving care, were denied penicillin. Researchers did nothing as men died and they went blind because they wanted to see how the disease would develop. A natural experiment.
    It took a young doctor, not long out of medical school, who read about the study in a medical journal and couldn’t believe his eyes. He could not understand how the United States government had come to view these poor sharecroppers as expendable, as subhuman. He thought about the Hippocratic Oath, that he and every doctor like him had sworn to. What happened to, “first, do no harm”?
    And so, not knowing what else to do, but knowing he was risking a whole lot by speaking out, he wrote to the study’s authors. And I want to read a bit of what he wrote: “I’m utterly astounded by the fact that physicians allow patients with a potentially fatal disease to remain untreated when effective therapy is available. I assume you feel that the information which is extracted from the observation of this untreated group is worth their sacrifice. If this is the case, then I suggest the United States Public Health Service and those physicians associated with it in this study need to reevaluate their moral judgments in this regard”.
    The man who wrote that letter, and was the first, and for a long time, the only person to sound the alarm about the depravity of the Tuskegee experiment was my dad, Dr. Irv Schatz. It’s one of the many reasons that he’s my hero. But I never thought that 60 years later, I’d be standing in the very body that passed legislation in response to that shameful period, arguing against confirming someone who wants to replicate that experiment at scale. That’s what RFK Jr. wants to do. He wants to use Americans as lab rats in a national experiment. And if it means bringing back the measles or the mumps or rubella or polio, so be it. That is the cost of doing business, as he sees it.
    I understand my Republican colleagues are facing a lot of pressure from within. It’s a new administration, and you want to give them deference. An executive, generally speaking, gets to have their team. But this nomination is not actually like the others, even if you don’t want to take Mr. Kennedy’s words so literally, maybe you think he’s just wondering aloud, look at his actions. Look at what he’s done. Time and time again, he’s abandoned every physician’s first principle: Do no harm. “I shall do by my patients as I would be done by. And I shall minimize suffering whenever a cure cannot be obtained.” That’s part of the oath every medical student takes at graduation before they can practice. And yet, the person nominated to lead the country’s entire health system has consistently done the exact opposite. He has caused disease. He has caused pain. He has caused death.
    And so the vote we’re going to be taking on this nominee is much more than your party or mine. It’s life or death. And I promise you, if this person is confirmed, it will not age well: not in a Republican primary, not in a Democratic primary, not in your family, not in your community. Nowhere will an RFK ‘aye’ vote age well. This person is going to cause disease across the United States. I urge a no vote.

    MIL OSI USA News –

  • MIL-OSI USA: KEY MOMENTS: In Back-to-Back Nomination Hearings, Luján Presses RFK Jr. and Howard Lutnick on their Commitment to Working for the American People

    US Senate News:

    Source: United States Senator Ben Ray Luján (D-New Mexico)

    Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.), a member of the Senate Committee on Finance and the Senate Committee on Committee on Commerce, Science, and Transportation, pressed Robert F. Kennedy Jr. and Howard Lutnick in their respective nomination hearings on their commitment to preserving programs that provide critical services for New Mexicans. Senator Luján pressed both nominees on their commitment to upholding the law and serving the American people – not being a rubber stamp for the President.

    In the nomination hearing for Robert F. Kennedy Jr. to become Secretary of Health and Human Services, Senator Luján questioned Mr. Kennedy on his understanding of the importance of Medicaid and pressed Mr. Kennedy for his commitment to protect Medicaid from cuts. Mr. Kennedy did not commit to not cutting Medicaid if asked to by the President.

    In the nomination hearing for Howard Lutnick to become Secretary of Commerce, Senator Luján questioned Mr. Lutnick on whether he would commit to not cutting funding that has been awarded to connect thousands of New Mexicans to the internet. Despite Mr. Lutnick’s acknowledgement of the importance of broadband buildout, he would not commit to maintaining crucial support for broadband.  

    Key Moments from the Nomination Hearing for Robert F. Kennedy Jr. to become Secretary of Health and Human Services:

    Watch the exchange with Robert F. Kennedy, Jr. here.

    On Medicare:

    Sen. Luján: Do you know how many babies born in this country are covered through Medicaid?

    Mr. Kennedy: I would guess, I don’t know the answer, I would guess about 30 million.

    Sen. Luján: I have it Mr. Kennedy, about 41% or 1.4 million babies, births are financed by Medicaid according to the National Center for Health Statistics.

    Sen. Luján: If President Trump asks you to cut Medicaid will you do it?

    Mr. Kennedy: It’s not up to me to cut Medicaid, it’d be up to Congress.

    Sen. Luján: Mr. Kennedy, if you don’t want to answer, I’ll move on.

    On Native American Health:

    Sen. Luján: What are you going to do when programs are eliminated to require the inclusion of Native Americans in clinical trials when it comes to life-saving medicine?

    Mr. Kennedy: I’m going to do everything I can to make sure there are Native American trials.

    Sen. Luján: Will you commit to finalizing the Congressionally mandated FDA guidance to increase clinical trial diversity?

    Mr. Kennedy: Yes.

    Sen. Luján: Will you commit to reinstating all of the pages that were eliminated and people that were fired from this administration that have this responsibility?

    Mr. Kennedy, in part: I cannot commit to that.

    On Autism Services:

    Sen. Luján: I ask unanimous consent to enter into the record and article from Autism Speaks titled “Do Vaccines Cause Autism” and I’ll note that the first sentence states “Vaccines do not cause autism.”

    Key Moments from the Nomination Hearing for Howard Lutnick to become Secretary of Commerce:

    Watch the exchange with Howard Lutnick here.

    Sen. Luján: If you’re asked to cut that program (broadband access) by the President of the United States, will you?

    Mr. Lutnick: I work for him.

    Sen. Luján: Is your response that if the president asks you to cut broadband infrastructure funding, you will do that? Is that what I just heard?

    Mr. Lutnick, in part: I work for the President of the United States, and I am here to executive his policies.

    Sen. Luján: We have a responsibility to communicate to each other for the people we work for. It’s not that you just work for Donald Trump sir, you work for the American people if you get this position.

    MIL OSI USA News –

  • MIL-Evening Report: If the government wants science to have an economic impact it has to put its money where its mouth is

    Source: The Conversation (Au and NZ) – By Nicola Gaston, Director of the MacDiarmid Institute for Advanced Materials and Nanotechnology, University of Auckland, Waipapa Taumata Rau

    jittawit21/Shutterstock

    Billed as the most significant change to the science system in 30 years, last week’s announcement of major structural changes to scientific research institutions was objectively a big deal.

    But the devil will be in the details. The proposed reforms are focused on the economic impact of the science sector and are based on the first of two reports from the Science System Advisory Group (SSAG).

    Success will depend on how they are implemented and, most of all, on the sector receiving sufficient funding.

    The government’s reforms include:

    • the merger of seven public Crown Research Institutes to create three larger Public Research Organisations (PROs)

    • the creation of a fourth new PRO focused on “advanced technology” such as artificial intelligence, synthetic biology and potentially cleantech

    • the disestablishment of Callaghan Innovation and the creation of a new agency called “Invest New Zealand” to target international investment

    • the creation of a new national intellectual property policy, meaning scientists working in PROs and in the university system are on a level playing field when it comes to commercialisation

    • the establishment of a Prime Minister’s Science, Innovation and Technology Advisory Council to provide strategic direction and oversight.

    As the reforms move forward, the government will have to answer several questions. For example, how will the expertise relating to advanced technologies, much of which currently sits within our university sector, be moved into the new PRO?

    And how will the funding model be changed as these new PROs are established?

    Long running issues

    Overall, the higher level changes are positive. Reforms have been a long time coming and are based on years of discussion within the crown research sector.

    But we need to look at the reforms in the context of the science advisory group’s first report.

    The report is strongly and deliberately focused on the potential economic impact of science and research. The authors outline how this must be supported by a properly functioning system.

    According to the authors, a lack of strategy from the highest level of government is a barrier for the sector.

    It is clear the advisory group recommends structural change (such as the PRO model). But it is also explicit that sufficient research funding is a necessary condition for these reforms to work:

    The SSAG stands firmly of the view that our parsimonious attitude to research funding is a core reason that New Zealand has become an outlier in performance on productivity growth.

    Barriers to progress

    The advisory group identified certain cultural attitudes, such as New Zealand’s “number-eight wire” thinking, as a reason the country doesn’t value research as it should. The group also strongly advocated for bipartisan agreement on funding systems and investment levels.

    The group had strongly positive things to say about research in the social sciences and mātauranga Māori through the lens of economic growth.

    There is no debate that research into Māori culture and knowledge is an obligation of the New Zealand research system and that this should be largely determined by experts in mātauranga Māori. We will be recommending a distinct funding stream in the proposed National Research Foundation.

    Unfortunately, this government’s defunding of the social sciences and humanities, announced in December, suggests it has already made its mind up on the value of these disciplines.

    Missing the bigger picture

    Reading the full report, there is the sense that while the government announcement has taken the most visible recommendations for change, it has missed the bigger picture: the need for sufficient funding to strengthen the sector as a whole and help New Zealand become internationally competitive.

    This means we need to benchmark ourselves against other countries and their economic and scientific performance. According to the report:

    The international analysis is clear: we are spending significantly less than comparable countries spend from the public purse on [research and development].

    The authors emphasise that for countries with low expenditure, improved research and development activity is especially important for GDP growth. New Zealand should take note – it is an outlier both as a low investor and a poor economic performer.

    These messages are not new.

    Steven Joyce, science minister in the National-led government between 2011 and 2016, advocated for the National Science Challenges as a way to justify increased government investment to the sector. But issues with the implementation costs effectively killed off his promise of increased funding.

    Labour’s science minister between 2022 and 2023, Ayesha Verrall, had a similar argument about needing to establish research “priorities” in order to justify increased spending. Again, it never happened.

    It is possible the current reforms will be more effective in providing justification for increased investment.

    But this time we need to put the horse before the cart by investing money in the system – one that has been underfunded for years and which has only recently seen further funding cuts and job losses.

    And this has to happen before the system absorbs the implementation costs of these reforms.

    Nicola Gaston receives funding from TEC as Director of the MacDiarmid Institute for Advanced Materials and Nanotechnology, and from the Marsden fund administered by the Royal Society Te Apārangi.

    – ref. If the government wants science to have an economic impact it has to put its money where its mouth is – https://theconversation.com/if-the-government-wants-science-to-have-an-economic-impact-it-has-to-put-its-money-where-its-mouth-is-248299

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Australia: HOGWASH ROAD, CADELL (Grass Fire)

    Source: Country Fire Service – South Australia

    CADELL

    Hogwash Bend Grass Fire

    Issued for Hogwash Bend Conservation Park near Cadell in the Riverland.

    Just after 9:00pm on Wednesday 29 January, approximately 26 CFS firefighters on 8 trucks supported by heavy machinery responded to a scrub fire which was burning in hard to access terrain.

    The fire was located 300m from the campgrounds, with wind pushing the fire in the opposite direction from campers limiting immediate risk. SA Police were on scene supporting with informing campers in the area.

    Crews remained on scene into the early hours of this morning and created a control line around the fire, which has now been extinguished. National Parks and Wildlife Services will be in attendance over the coming days to ensure the scene remains safe.

    The cause of the fire is yet to be determined and Fire Investigators will be attending.

    Roads are currently open around this incident however this may change at short notice. Continue to monitor road closures at: traffic.sa.gov.au. Emergency services may be working on and around roads in the area, and motorists are advised take care and drive to the local conditions.

    Message ID 0008064

    MIL OSI News –

  • MIL-OSI: Sound Financial Bancorp, Inc. Q4 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Jan. 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 $1.9 million for the quarter ended December 31, 2024, or $0.74 diluted earnings per share, as compared to net income of $1.2 million, or $0.45 diluted earnings per share, for the quarter ended September 30, 2024, and $1.2 million, or $0.47 diluted earnings per share, for the quarter ended December 31, 2023. 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 February 26, 2025 to stockholders of record as of the close of business on February 12, 2025.

    Comments from the President and Chief Executive Officer  
     
    “The Bank ended the year with many positives, including a 15-basis-point increase in net interest margin compared to the third quarter of 2024. This was largely due to our significant progress in reducing deposit costs, which fell by 16 basis points,” remarked Laurie Stewart, President and Chief Executive Officer. “Additionally, nonperforming loans decreased by 11.8% from the third quarter, and for the first time in more than a decade, we have no OREO,” concluded Ms. Stewart.

    “Notable progress was made in reducing funding costs during the quarter and in controlling expenses throughout the entire year. We hope to continue this momentum in 2025. Our staff across the company played an important role in these accomplishments by focusing on client relationships and increasing efficiencies through technological improvements,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

    Mr. Ochs continued, “We ended the year with the same balance sheet strategy that we used to close out 2023, which helped reduce the Bank’s asset size below $1 billion. This strategy is intended to provide the Bank with additional operational flexibility and continued cost savings in 2025.”
    Q4 2024 Financial Performance
    Total assets decreased $107.3 million or 9.7% to $993.6 million at December 31, 2024, from $1.10 billion at September 30, 2024, and decreased $1.6 million or 0.2% from $995.2 million at December 31, 2023.     Net interest income increased $347 thousand or 4.4% to $8.2 million for the quarter ended December 31, 2024, from $7.9 million for the quarter ended September 30, 2024, and increased $653 thousand or 8.6% from $7.6 million for the quarter ended December 31, 2023.
       
        Net interest margin (“NIM”), annualized, was 3.13% for the quarter ended December 31, 2024, compared to 2.98% for the quarter ended September 30, 2024 and 3.04% for the quarter ended December 31, 2023.
    Loans held-for-portfolio decreased $1.6 million or 0.2% to $900.2 million at December 31, 2024, compared to $901.7 million at September 30, 2024, and increased $5.7 million or 0.6% from $894.5 million at December 31, 2023.    
        A $14 thousand provision for credit losses was recorded for the quarter ended December 31, 2024, compared to an $8 thousand provision and a $27 thousand release of provision for credit losses for the quarters ended September 30, 2024 and December 31, 2023, respectively. At December 31, 2024, the allowance for credit losses on loans to total loans outstanding was 0.94%, compared to 0.95% at September 30, 2024 and 0.98% December 31, 2023.
    Total deposits decreased $92.4 million or 9.9% to $837.8 million at December 31, 2024, from $930.2 million at September 30, 2024, and increased $11.3 million or 1.4% from $826.5 million at December 31, 2023. Noninterest-bearing deposits increased $2.8 million or 2.2% to $132.5 million at December 31, 2024 compared to $129.7 million at September 30, 2024, and increased $5.8 million or 4.6% compared to $126.7 million at December 31, 2023.    
        Total noninterest income decreased $75 thousand or 6.1% to $1.2 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and increased $94 thousand or 8.8% compared to the quarter ended December 31, 2023.
    The loans-to-deposits ratio was 108% at December 31, 2024, compared to 97% at September 30, 2024 and 108% at December 31, 2023.    
        Total noninterest expense decreased $621 thousand or 8.1% to $7.1 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and decreased $248 thousand or 3.4% compared to the quarter ended December 31, 2023.
    Total nonperforming loans decreased $998 thousand or 11.8% to $7.5 million at December 31, 2024, from $8.5 million at September 30, 2024, and increased $3.9 million or 110.7% from $3.6 million at December 31, 2023. Nonperforming loans to total loans was 0.83% and the allowance for credit losses on loans to total nonperforming loans was 113.46% at December 31, 2024.    
        The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at December 31, 2024.
           

    Operating Results

    Net interest income increased $347 thousand, or 4.4%, to $8.2 million for the quarter ended December 31, 2024, compared to $7.9 million for the quarter ended September 30, 2024, and increased $653 thousand, or 8.6%, from $7.6 million for the quarter ended December 31, 2023.The increase from the prior quarter was primarily the result of lower funding costs and an increase in average yield on loans receivable and investments, partially offset by a decrease in the average balance and yield on interest-bearing cash. The increase in net interest income compared to the same quarter one year ago was primarily due to a higher average yield on interest-earning assets, particularly loans receivable and investments, and an increase in the average balances of both loans receivable and interest-bearing cash, partially offset by a lower average yield on interest-bearing cash and higher funding costs.

    Interest income decreased $102 thousand, or 0.7%, to $14.7 million for the quarter ended December 31, 2024, compared to $14.8 million for the quarter ended September 30, 2024, and increased $1.4 million, or 10.5%, from $13.3 million for the quarter ended December 31, 2023. The decrease from the prior quarter was primarily due to a lower average balance of interest-bearing cash, and a 59 basis point decline in the average yield on interest-bearing cash, offset by a seven basis point increase in the average loan yield and a 16 basis point increase in the average yield on investments. The increase in interest income compared to the same quarter last year was due primarily to higher average balances of loans and interest-bearing cash, a 37 basis point increase in the average yield on loans, and a 43 basis point increase in the average yield on investments, partially offset by a decline in the average balance of investments and a 59 basis point decline in the average yield on interest-bearing cash.

    Interest income on loans increased $194 thousand, or 1.5%, to $13.1 million for the quarter ended December 31, 2024, compared to $12.9 million for the quarter ended September 30, 2024, and increased $1.0 million, or 8.6%, from $12.0 million for the quarter ended December 31, 2023. The average balance of total loans was $900.8 million for the quarter ended December 31, 2024, up from $898.6 million for the quarter ended September 30, 2024 and $884.7 million for the quarter ended December 31, 2023. The average yield on total loans was 5.77% for the quarter ended December 31, 2024, up from 5.70% for the quarter ended September 30, 2024 and 5.40% for the quarter ended December 31, 2023. The increase in the average loan yield during the current quarter, compared to both the prior quarter and the fourth quarter of 2023, 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 prior quarters. The increase in the average balance during the current quarter compared to the prior quarter was primarily due to growth in commercial and multifamily loans, manufactured housing loans and floating home loans. This was partially offset by a decline in construction and land loans and commercial business loans. The average balances for one-to-four family loans, home equity loans, and other consumer loans remained relatively flat from the third quarter of 2024. The increase in the average balance of loans during the current quarter compared to the fourth quarter of 2023 was primarily due to loan growth across all categories, except for one-to-four family loans, construction and land loans, commercial business loans, and other consumer loans, with the largest decrease being in construction and land loans.

    Interest income on investments was $132 thousand for both the quarters ended December 31, 2024 and September 30, 2024, and $129 thousand for the quarter ended December 31, 2023. Interest income on interest-bearing cash decreased $296 thousand to $1.5 million for the quarter ended December 31, 2024, compared to $1.8 million for the quarter ended September 30, 2024, and increased $359 thousand from $1.2 million for the quarter ended December 31, 2023. The decrease from the prior quarter was due to decreases in the average yield and average balance of interest-bearing cash. The increase from the same quarter in the prior year was a result of a higher average balance, partially offset by a lower average yield.

    Interest expense decreased $449 thousand, or 6.4%, to $6.5 million for the quarter ended December 31, 2024, from $7.0 million for the quarter ended September 30, 2024, and increased $746 thousand, or 12.9%, from $5.8 million for the quarter ended December 31, 2023. The decrease in interest expense during the current quarter from the prior quarter was primarily the result of average balance decreases of $3.8 million in demand and NOW accounts, $2.3 million in certificate accounts and $9.5 million in FHLB advances, as well as lower average rates paid on all categories of interest-bearing deposits, partially offset by a $10.2 million increase in the average balance of savings and money market accounts. The increase in interest expense during the current quarter from the same quarter a year ago was primarily the result of a $91.9 million increase in the average balance of savings and money market accounts and a $1.3 million increase in the average balance of certificate accounts, as well as higher average rates paid on savings and money market accounts. This was partially offset by a $25.3 million decrease in the average balance of demand and NOW accounts and a $9.6 million decrease in the average balance of FHLB advances. The average cost of deposits was 2.58% for the quarter ended December 31, 2024, down from 2.74% for the quarter ended September 30, 2024 and up from 2.38% for the quarter ended December 31, 2023. The average cost of FHLB advances was 4.31% for the quarter ended December 31, 2024, down from 4.32% for the quarter ended September 30, 2024, and up from 4.26% for the quarter ended December 31, 2023.

    NIM (annualized) was 3.13% for the quarter ended December 31, 2024, up from 2.98% for the quarter ended September 30, 2024 and 3.04% for the quarter ended December 31, 2023. The increase in NIM from the prior quarter was the result of lower cost of funding, partially offset by a decrease in interest income on interest-earning assets. The increase in NIM from the quarter one year ago was primarily due to an increase in interest income on interest-earning assets, driven by the higher average balance in loans and interest-bearing cash and a higher yield earned on loans and investments, partially offset by a higher average balance of and cost of savings and money market accounts.

    A provision for credit losses of $14 thousand was recorded 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. This compared to a provision for credit losses of $8 thousand for the quarter ended September 30, 2024, consisting of a provision for credit losses on loans of $106 thousand and a release of provision for credit losses on unfunded loan commitments of $98 thousand, and a release of provision for credit losses of $27 thousand for the quarter ended December 31, 2023, consisting of a provision for credit losses on loans of $337 thousand and a release of the provision for credit losses on unfunded loan commitments of $364 thousand. The increase in the provision for credit losses for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 resulted primarily from an additional qualitative adjustment related to our loan review, additional enhancements to the loss model related to how we adjust for the qualitative component, including the utilization of a scorecard to drive managements analysis, and growth in our unfunded construction loan portfolio, which has a higher loss rate than our other loan portfolios. These increases were offset by lower reserves in both our floating home sub-segment of other consumer loans within our quantitative analysis and in our qualitative analysis related to market conditions and value of underlying collateral, as economic conditions have improved. Expected loss estimates consider various factors, such as market conditions, borrower-specific information, projected delinquencies, and the impact of economic conditions on borrowers’ ability to repay.

    Noninterest income decreased $75 thousand, or 6.1%, to $1.2 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and increased $94 thousand, or 8.8%, compared to the quarter ended December 31, 2023. The decrease from the prior quarter was primarily related to a $24 thousand downward adjustment in fair value of mortgage servicing rights and a $59 thousand decrease in earnings from bank-owned life insurance (“BOLI”), both influenced by fluctuating market interest rates. These decreases were partially offset by an increase of $13 thousand in net gain on sale of loans due to higher sales volume in the fourth quarter of 2024, and a $7 thousand increase in gain on disposal of assets due to insurance claims exceeding the book value on the replacement of stolen laptops in the second quarter of 2024. The increase in noninterest income from the same quarter of 2023 was primarily due an $43 thousand increase in service charges and fee income primarily due to increases in late fees on loans, higher interchange income and income related to a new, multi-year agreement with our credit card provider that was effective in 2024, a late fee on one commercial loan and higher specialty deposit fees due to fewer reversals of fees in 2024, a $173 thousand increase in the fair value adjustment on mortgage servicing rights due to changes in prepayment speeds, servicing costs, and discount rate, and a $7 thousand increase in gain on disposal of assets as noted above. These increases were partially offset by a $95 thousand decrease in earnings on BOLI due to market rate fluctuations, and a $23 thousand decrease in net gain on sale of loans due to fewer loans sold, and an $11 thousand decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than we are replacing the loans. Loans sold during the quarter ended December 31, 2024, totaled $3.5 million, compared to $2.4 million and $4.5 million of loans sold during the quarters ended September 30, 2024 and December 31, 2023, respectively.

    Noninterest expense decreased $621 thousand, or 8.1%, to $7.1 million for the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024, and decreased $248 thousand, or 3.4%, from the quarter ended December 31, 2023. The decrease from the quarter ended September 30, 2024 was primarily a result of lower salaries and benefits and operations expenses, partially offset by higher data processing expense. Salaries and benefits decreased $549 thousand primarily due to lower incentive compensation, lower retirement plan expense due to fluctuating market rates, lower medical expense due to higher medical costs during the third quarter of 2024, and lower salaries expense, as well as higher deferred salaries due to higher loan production. Operations expense decreased $211 thousand primarily due to a reversal of state and local tax expense related to higher estimated tax payments made than actual tax due, and lower operational losses in the current quarter as the prior quarter included the charge-off of a fraudulently obtained loan. This was partially offset by an $165 thousand increase in data processing expenses, reflecting new technology implementation costs. Compared to same quarter in 2023, the decrease in noninterest expense was primarily due to lower operations expenses, occupancy expenses and data processing expenses, which were partially offset by a $118 thousand increase in salaries and benefits costs. Operations expenses decreased due to reduction in loan originations costs, office expenses, operational losses, charitable contributions and state and local taxes, partially offset by higher professional fees primarily related to costs for future FDIC Improvement Act implementation. Data processing expenses decreased due to lower costs related to our core processor, while occupancy expenses decreased primarily due to fully amortized leasehold improvements. The increase in salaries and benefits compared to the same quarter last year reflected higher incentive compensation, lower deferred salaries, higher medical expenses due primarily to a change in insurance providers, and a higher contribution to our employee stock ownership plan due to the increase in value of our stock in 2024. This was partially offset by lower retirement plan expenses due to fluctuating market rates and lower salaries from a restructuring of positions at the end of 2023.

    Balance Sheet Review, Capital Management and Credit Quality

    Assets at December 31, 2024 totaled $993.6 million, down from $1.10 billion at September 30, 2024 and $995.22 million at December 31, 2023. The decrease in total assets from September 30, 2024 was primarily due to decreases in cash and cash equivalents and loans held-for-portfolio. The decrease from one year ago was primarily a result of lower balances of cash and cash equivalents and investment securities, offset by an increase in loans held-for-portfolio.

    Cash and cash equivalents decreased $105.3 million, or 70.7%, to $43.6 million at December 31, 2024, compared to $148.9 million at September 30, 2024, and decreased $6.0 million, or 12.2%, from $49.7 million at December 31, 2023. The decrease from the prior quarter was primarily due to higher deposit withdrawals, as well as the strategic decision to sell reciprocal deposits at the end of the year. Cash and cash equivalents decreased from one year ago primarily due to the increase in loans held-for-portfolio and the payoff of one FHLB borrowing, partially offset by an increase in deposits.

    Investment securities decreased $251 thousand, or 2.5%, to $9.9 million at December 31, 2024, compared to $10.2 million at September 30, 2024, and decreased $533 thousand, or 5.1%, from $10.5 million at December 31, 2023. Held-to-maturity securities totaled $2.1 million at both December 31, 2024 and September 30, 2024, and totaled $2.2 million at December 31, 2023. Available-for-sale securities totaled $7.8 million at December 31, 2024, compared to $8.0 million at September 30, 2024 and $8.3 million at December 31, 2023.

    Loans held-for-portfolio were $900.2 million at December 31, 2024, compared to $901.7 million at September 30, 2024 and $894.5 million at December 31, 2023.

    Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, decreased $1.1 million, or 12.9%, to $7.5 million at December 31, 2024, from $8.6 million at September 30, 2024 and increased $3.4 million, or 81.3%, from $4.1 million at December 31, 2023. The decrease in NPAs from September 30, 2024 was primarily due to the payoff of seven loans totaling $1.2 million, one loan totaling $76 thousand returning to accrual status, and sale of one other real estate owned property for $115 thousand for a small net gain on sale, partially offset by the addition of seven loans totaling $326 thousand to nonaccrual. The increase in NPAs from one year ago was primarily due to the placement of an additional $9.3 million of loans on nonaccrual status, which included a $3.7 million matured commercial real estate loan where the borrower is in the process of securing financing from another lender, and a $2.4 million floating home loan, all of which are well secured. These additions were partially offset by payoffs totaling $4.2 million, the return of $784 thousand of loans to accrual status, charge-offs of $142 thousand, the sale of two other real estate owned properties for $685 thousand, and normal loan payments.

    NPAs to total assets were 0.75%, 0.78% and 0.42% at December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The allowance for credit losses on loans to total loans outstanding was 0.94% at December 31, 2024, compared to 0.95% at September 30, 2024 and 0.98% at December 31, 2023. Net loan charge-offs for the fourth quarter of 2024 totaled $13 thousand, compared to $14 thousand for the third quarter of 2024, and $15 thousand for the fourth quarter of 2023.

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

      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Nonperforming Loans:                  
    One-to-four family $ 537     $ 745     $ 822     $ 835     $ 1,108  
    Home equity loans   298       338       342       83       84  
    Commercial and multifamily   3,734       4,719       5,161       4,747       —  
    Construction and land   24       25       28       29       —  
    Manufactured homes   521       230       136       166       228  
    Floating homes   2,363       2,377       2,417       3,192       —  
    Commercial business   11       23       —       —       2,135  
    Other consumer   3       32       3       1       1  
    Total nonperforming loans   7,491       8,489       8,909       9,053       3,556  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       575       575  
    Manufactured homes   —       115       115       115       —  
    Total OREO and repossessed assets   —       115       115       690       575  
    Total NPAs $ 7,491     $ 8,604     $ 9,024     $ 9,743     $ 4,131  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   7.3 %     8.7 %     9.1 %     8.5 %     26.9 %
    Home equity loans   4.0       3.9       3.8       0.9       2.0  
    Commercial and multifamily   49.8       54.8       57.2       48.7       —  
    Construction and land   0.3       0.3       0.3       0.3       —  
    Manufactured homes   7.0       2.7       1.5       1.7       5.5  
    Floating homes   31.5       27.6       26.8       32.8       —  
    Commercial business   0.1       0.3       —       —       51.7  
    Other consumer   —       0.4       —       —       —  
    Total nonperforming loans   100.0       98.7       98.7       92.9       86.1  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       5.9       13.9  
    Manufactured homes   —       1.3       1.3       1.2       —  
    Total OREO and repossessed assets   —       1.3       1.3       7.1       13.9  
    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:
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Allowance for Credit Losses on Loans                  
    Balance at beginning of period $ 8,585     $ 8,493     $ 8,598     $ 8,760     $ 8,438  
    (Release of) provision for credit losses during the period   (73 )     106       (88 )     (106 )     337  
    Net charge-offs during the period   (13 )     (14 )     (17 )     (56 )     (15 )
    Balance at end of period $ 8,499     $ 8,585     $ 8,493     $ 8,598     $ 8,760  
    Allowance for Credit Losses on Unfunded Loan Commitments                  
    Balance at beginning of period $ 147     $ 245     $ 266     $ 193     $ 557  
    Provision for (release of) provision for credit losses during the period   87       (98 )     (21 )     73       (364 )
    Balance at end of period   234       147       245       266       193  
    Allowance for Credit Losses $ 8,733     $ 8,732     $ 8,738     $ 8,864     $ 8,953  
    Allowance for credit losses on loans to total loans   0.94 %     0.95 %     0.96 %     0.96 %     0.98 %
    Allowance for credit losses to total loans   0.97 %     0.97 %     0.98 %     0.99 %     1.00 %
    Allowance for credit losses on loans to total nonperforming loans   113.46 %     101.13 %     95.33 %     94.97 %     246.34 %
    Allowance for credit losses to total nonperforming loans   116.58 %     102.86 %     98.08 %     97.91 %     251.77 %

    Total deposits decreased $92.4 million, or 9.9%, to $837.8 million at December 31, 2024, from $930.2 million at September 30, 2024 and increased $11.3 million, or 1.4%, from $826.5 million at December 31, 2023. The decrease 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 depositor relationship as part of our strategic decision to decrease our overall cost of funds. Noninterest-bearing deposits increased $2.8 million, or 2.2%, to $132.5 million at December 31, 2024, compared to $129.7 million at September 30, 2024 and increased $5.8 million, or 4.6%, from $126.7 million at December 31, 2023. Noninterest-bearing deposits represented 15.8%, 14.0% and 15.3% of total deposits at December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    FHLB advances totaled $25.0 million at December 31, 2024, compared to $40.0 million at both September 30, 2024, and December 31, 2023. The decrease from both prior dated was due to the repayment of a $15.0 million FHLB advance that matured in November 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 December 31, 2024 had maturities ranging from early 2026 through early 2028. Subordinated notes, net totaled $11.8 million at each of December 31, 2024, September 30, 2024 and December 31, 2023.

    Stockholders’ equity totaled $103.7 million at December 31, 2024, an increase of $1.4 million, or 1.4%, from $102.2 million at September 30, 2024, and an increase of $3.0 million, or 3.0%, from $100.7 million at December 31, 2023. The increase in stockholders’ equity from September 30, 2024 was primarily the result of $1.9 million of net income earned during the current quarter, $98 thousand in share-based compensation, and $19 thousand in common stock options exercised, partially offset by a $122 thousand increase in accumulated other comprehensive loss, net of tax and the payment of $486 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 imposition of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sector; 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
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Interest income   $ 14,736     $ 14,838   $ 14,039     $ 13,760     $ 13,337  
    Interest expense     6,516       6,965     6,591       6,300       5,770  
    Net interest income     8,220       7,873     7,448       7,460       7,567  
    Provision for (release of) credit losses     14       8     (109 )     (33 )     (27 )
    Net interest income after provision for (release of) credit losses     8,206       7,865     7,557       7,493       7,594  
    Noninterest income:                    
    Service charges and fee income     619       628     761       612       576  
    Earnings on bank-owned life insurance     127       186     134       177       222  
    Mortgage servicing income     277       280     279       282       288  
    Fair value adjustment on mortgage servicing rights     77       101     (116 )     (65 )     (96 )
    Net gain on sale of loans     53       40     74       90       76  
    Other income     7       —     30       —       —  
    Total noninterest income     1,160       1,235     1,162       1,096       1,066  
    Noninterest expense:                    
    Salaries and benefits     3,920       4,469     4,658       4,543       3,802  
    Operations     1,329       1,540     1,569       1,457       1,537  
    Regulatory assessments     189       189     220       189       198  
    Occupancy     409       414     397       444       458  
    Data processing     1,232       1,067     910       1,017       1,311  
    Net (gain) loss on OREO and repossessed assets     (21 )     —     (17 )     6       —  
    Total noninterest expense     7,058       7,679     7,737       7,656       7,306  
    Income before provision for income taxes     2,308       1,421     982       933       1,354  
    Provision for income taxes     389       267     187       163       143  
    Net income   $ 1,919     $ 1,154   $ 795     $ 770     $ 1,211  
    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)
         
        For theYear Ended December 31
          2024       2023  
    Interest income   $ 57,374     $ 50,609  
    Interest expense     26,372       16,759  
    Net interest income     31,002       33,850  
    (Release of) provision for credit losses     (120 )     (273 )
    Net interest income after (release of) provision for credit losses     31,122       34,123  
    Noninterest income:        
    Service charges and fee income     2,620       2,527  
    Earnings on bank-owned life insurance     625       1,179  
    Mortgage servicing income     1,118       1,179  
    Fair value adjustment on mortgage servicing rights     (4 )     (219 )
    Net gain on sale of loans     258       340  
    Other income     38       —  
    Total noninterest income     4,655       5,006  
    Noninterest expense:        
    Salaries and benefits     17,590       17,135  
    Operations     5,894       6,095  
    Regulatory assessments     787       688  
    Occupancy     1,665       1,810  
    Data processing     4,226       4,388  
    Net (gain) loss on OREO and repossessed assets     (31 )     13  
    Total noninterest expense     30,131       30,129  
    Income before provision for income taxes     5,646       9,000  
    Provision for income taxes     1,006       1,561  
    Net income   $ 4,640     $ 7,439  
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    ASSETS                    
    Cash and cash equivalents   $ 43,641     $ 148,930     $ 135,111     $ 137,977     $ 49,690  
    Available-for-sale securities, at fair value     7,790       8,032       7,996       8,115       8,287  
    Held-to-maturity securities, at amortized cost     2,130       2,139       2,147       2,157       2,166  
    Loans held-for-sale     487       65       257       351       603  
    Loans held-for-portfolio     900,171       901,733       889,274       897,877       894,478  
    Allowance for credit losses – loans     (8,499 )     (8,585 )     (8,493 )     (8,598 )     (8,760 )
    Total loans held-for-portfolio, net     891,672       893,148       880,781       889,279       885,718  
    Accrued interest receivable     3,471       3,705       3,413       3,617       3,452  
    Bank-owned life insurance, net     22,490       22,363       22,172       22,037       21,860  
    Other real estate owned (“OREO”) and other repossessed assets, net     —       115       115       690       575  
    Mortgage servicing rights, at fair value     4,769       4,665       4,540       4,612       4,632  
    Federal Home Loan Bank (“FHLB”) stock, at cost     1,730       2,405       2,406       2,406       2,396  
    Premises and equipment, net     4,697       4,807       4,906       6,685       5,240  
    Right-of-use assets     3,725       3,779       4,020       4,259       4,496  
    Other assets     7,031       6,777       6,995       4,500       6,106  
    TOTAL ASSETS   $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221  
    LIABILITIES                    
    Interest-bearing deposits   $ 705,267     $ 800,480     $ 781,854     $ 788,217     $ 699,813  
    Noninterest-bearing deposits     132,532       129,717       124,915       128,666       126,726  
    Total deposits     837,799       930,197       906,769       916,883       826,539  
    Borrowings     25,000       40,000       40,000       40,000       40,000  
    Accrued interest payable     765       908       760       719       817  
    Lease liabilities     4,013       4,079       4,328       4,576       4,821  
    Other liabilities     9,371       9,711       9,105       9,578       9,563  
    Advance payments from borrowers for taxes and insurance     1,260       2,047       812       2,209       1,110  
    Subordinated notes, net     11,759       11,749       11,738       11,728       11,717  
    TOTAL LIABILITIES     889,967       998,691       973,512       985,693       894,567  
    STOCKHOLDERS’ EQUITY:                    
    Common stock     25       25       25       25       25  
    Additional paid-in capital     28,413       28,296       28,198       28,110       27,990  
    Retained earnings     76,272       74,840       74,173       73,907       73,627  
    Accumulated other comprehensive loss, net of tax     (1,044 )     (922 )     (1,049 )     (1,050 )     (988 )
    TOTAL STOCKHOLDERS’ EQUITY     103,666       102,239       101,347       100,992       100,654  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221  
    KEY FINANCIAL RATIOS
    (unaudited)
        For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Annualized return on average assets   0.70 %   0.42 %   0.30 %   0.29 %   0.46 %
    Annualized return on average equity   7.40 %   4.50 %   3.17 %   3.06 %   4.78 %
    Annualized net interest margin(1)   3.13 %   2.98 %   2.92 %   2.95 %   3.04 %
    Annualized efficiency ratio(2)   75.25 %   84.31 %   89.86 %   89.48 %   84.63 %

    (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
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
    Basic earnings per share   $ 0.75   $ 0.45   $ 0.31   $ 0.30   $ 0.47
    Diluted earnings per share   $ 0.74   $ 0.45   $ 0.31   $ 0.30   $ 0.47
    Weighted-average basic shares outstanding     2,547,210     2,544,233     2,540,538     2,539,213     2,542,175
    Weighted-average diluted shares outstanding     2,578,771     2,569,368     2,559,015     2,556,958     2,560,656
    Common shares outstanding at period-end     2,564,907     2,564,095     2,557,284     2,558,546     2,549,427
    Book value per share   $ 40.42   $ 39.87   $ 39.63   $ 39.47   $ 39.48

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

    The following tables present, 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
      December 31, 2024   September 30, 2024   December 31, 2023
      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 $ 900,832     $ 13,070   5.77 %   $ 898,570     $ 12,876   5.70 %   $ 884,677     $ 12,033   5.40 %
    Interest-earning cash   130,412       1,534   4.68 %     138,240       1,830   5.27 %     88,401       1,175   5.27 %
    Investments   13,263       132   3.96 %     13,806       132   3.80 %     14,479       129   3.53 %
    Total interest-earning assets $ 1,044,507       14,736   5.61 %     1,050,616     $ 14,838   5.62 %   $ 987,557       13,337   5.36 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 350,495       2,476   2.81 %   $ 340,281       2,688   3.14 %   $ 258,583       1,586   2.43 %
    Demand and NOW accounts   144,470       128   0.35 %     148,252       151   0.41 %     169,816       149   0.35 %
    Certificate accounts   301,293       3,413   4.51 %     303,632       3,524   4.62 %     300,042       3,436   4.54 %
    Subordinated notes   11,756       168   5.69 %     11,745       168   5.69 %     11,714       168   5.69 %
    Borrowings   30,546       331   4.31 %     40,000       434   4.32 %     40,109       431   4.26 %
    Total interest-bearing liabilities $ 838,560       6,516   3.09 %   $ 843,910       6,965   3.28 %   $ 780,264       5,770   2.93 %
    Net interest income/spread     $ 8,220   2.52 %       $ 7,873   2.34 %       $ 7,567   2.42 %
    Net interest margin         3.13 %           2.98 %           3.04 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             124 %             127 %        
    Noninterest-bearing deposits $ 130,476             $ 132,762             $ 134,857          
    Total deposits   926,734     $ 6,017   2.58 %     924,927     $ 6,363   2.74 %     863,298     $ 5,171   2.38 %
    Total funding(1)   969,036       6,516   2.68 %     976,672       6,965   2.84 %     915,121       5,770   2.50 %

    (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.

      Year Ended
      December 31, 2024   December 31, 2023
      Average
    Outstanding Balance    		   Interest Earned/Paid   Yield/Rate   Average
    Outstanding Balance    		   Interest Earned/Paid   Yield/Rate
    Interest-Earning Assets:                      
    Loans receivable $ 896,690     $ 50,499   5.63 %   $ 870,227     $ 46,470   5.34 %
    Interest-earning cash   124,259       6,367   5.12 %     74,708       3,621   4.85 %
    Investments   12,468       508   4.07 %     13,661       518   3.79 %
    Total interest-earning assets $ 1,033,417       57,374   5.55 %   $ 958,596       50,609   5.28 %
    Interest-Bearing Liabilities:                      
    Savings and money market accounts $ 319,314       9,145   2.86 %   $ 194,810       2,783   1.43 %
    Demand and NOW accounts   151,528       568   0.37 %     204,922       736   0.36 %
    Certificate accounts   309,441       14,363   4.64 %     280,238       10,617   3.79 %
    Subordinated notes   11,740       672   5.72 %     11,698       672   5.74 %
    Borrowings   37,623       1,624   4.32 %     43,977       1,951   4.44 %
    Total interest-bearing liabilities $ 829,646       26,372   3.18 %   $ 735,645       16,759   2.28 %
    Net interest income/spread     $ 31,002   2.37 %       $ 33,850   3.00 %
    Net interest margin         3.00 %           3.53 %
                           
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             130 %        
    Noninterest-bearing deposits $ 131,141             $ 154,448          
    Total deposits   911,424     $ 24,076   2.64 %     834,418     $ 14,136   1.69 %
    Total funding(1)   960,787       26,372   2.74 %     890,093       16,759   1.88 %

    (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)
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Real estate loans:                    
    One-to-four family   $ 269,684     $ 271,702     $ 268,488     $ 279,213     $ 279,448  
    Home equity     26,686       25,199       26,185       24,380       23,073  
    Commercial and multifamily     371,516       358,587       342,632       324,483       315,280  
    Construction and land     73,077       85,724       96,962       111,726       126,758  
    Total real estate loans     740,963       741,212       734,267       739,802       744,559  
    Consumer Loans:                    
    Manufactured homes     41,128       40,371       38,953       37,583       36,193  
    Floating homes     86,411       86,155       81,622       84,237       75,108  
    Other consumer     17,720       18,266       18,422       18,847       19,612  
    Total consumer loans     145,259       144,792       138,997       140,667       130,913  
    Commercial business loans     15,605       17,481       17,860       19,075       20,688  
    Total loans     901,827       903,485       891,124       899,544       896,160  
    Less:                    
    Premiums     718       736       754       808       829  
    Deferred fees, net     (2,374 )     (2,488 )     (2,604 )     (2,475 )     (2,511 )
    Allowance for credit losses – loans     (8,499 )     (8,585 )     (8,493 )     (8,598 )     (8,760 )
    Total loans held-for-portfolio, net   $ 891,672     $ 893,148     $ 880,781     $ 889,279     $ 885,718  
    DEPOSITS
    (Dollars in thousands, unaudited)
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Noninterest-bearing demand   $ 132,532   $ 129,717   $ 124,915   $ 128,666   $ 126,726
    Interest-bearing demand     142,126     148,740     152,829     159,178     168,346
    Savings     61,252     61,455     63,368     65,723     69,461
    Money market(1)     206,067     285,655     253,873     241,976     154,044
    Certificates     295,822     304,630     311,784     321,340     307,962
    Total deposits   $ 837,799   $ 930,197   $ 906,769   $ 916,883   $ 826,539

    (1)   Includes $5.0 million of brokered deposits at December 31, 2023. 

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)
        At or For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Total nonperforming loans   $ 7,491     $ 8,489     $ 8,909     $ 9,053     $ 3,556  
    OREO and other repossessed assets     —       115       115       690       575  
    Total nonperforming assets   $ 7,491     $ 8,604     $ 9,024     $ 9,743     $ 4,131  
    Net charge-offs during the quarter   $ (13 )   $ (14 )   $ (17 )   $ (56 )   $ (15 )
    Provision for (release of) credit losses during the quarter     14       8       (109 )     (33 )     (27 )
    Allowance for credit losses – loans     8,499       8,585       8,493       8,598       8,760  
    Allowance for credit losses – loans to total loans     0.94 %     0.95 %     0.96 %     0.96 %     0.98 %
    Allowance for credit losses – loans to total nonperforming loans     113.46 %     101.13 %     95.33 %     94.97 %     246.34 %
    Nonperforming loans to total loans     0.83 %     0.94 %     1.00 %     1.01 %     0.40 %
    Nonperforming assets to total assets     0.75 %     0.78 %     0.84 %     0.90 %     0.42 %
    OTHER STATISTICS
    (Dollars in thousands, unaudited)
        At or For the Quarter Ended
        December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
                         
    Total loans to total deposits     107.64 %     97.13 %     98.27 %     98.11 %     108.42 %
    Noninterest-bearing deposits to total deposits     15.82 %     13.95 %     13.78 %     14.03 %     15.33 %
                         
    Average total assets for the quarter   $ 1,089,067     $ 1,095,404     $ 1,070,579     $ 1,062,036     $ 1,033,985  
    Average total equity for the quarter   $ 103,181     $ 102,059     $ 100,961     $ 101,292     $ 100,612  

    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: Rochester Man Pleads Guilty for His Role in $250 Million Feeding Our Future Fraud Scheme

    Source: Office of United States Attorneys

    MINNEAPOLIS – A Rochester man pleaded guilty for his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, from approximately October 2020 through January 2022, Sharmake Jama, 37, knowingly participated in a scheme to defraud a federal child nutrition program designed to provide free meals to children in need. Rather than feed children, the defendants took advantage of the COVID-19 pandemic—and the resulting program changes—to enrich themselves by fraudulently misappropriating millions of dollars in federal child nutrition program funds.

    According to court documents, in September 2020, Jama and Aimee Bock applied for Jama’s Brava Restaurant to be enrolled in the Federal Child Nutrition Program under the sponsorship of Bock’s non-profit, Feeding Our Future. Jama enrolled in the Federal Child Nutrition Program after he first prepared application paperwork at the direction of Salim Said, the co-owner of Safari Restaurant in Minneapolis, which was another business involved in the scheme to defraud the food program.

    From late 2020 through 2021, Jama and other conspirators claimed Brava Restaurant was serving approximately 2,000 to 3,000 daily breakfasts and lunches to children, for which they fraudulently claimed and received millions of dollars in federal child nutrition program funds. To accomplish his scheme, Jama and his co-conspirators submitted fake attendance rosters purporting to list the names of children who purportedly received their food at sites. These rosters were fraudulent in that the names on them were fake or did not correctly reflect the number of children that were fed.

    According to his plea agreement entered today, Jama claimed Brava Restaurant had served more than 1.7 million meals in Rochester as part of the Federal Child Nutrition Program in a little over one year, a number substantially higher than the actual number of meals served. Based on these fraudulent claims, Feeding Our Future paid out over $5.3 million in federal child nutrition program reimbursements for meals purportedly served to children by the defendant and his co-conspirators. Jama knew his receipt of such funds was fraudulent because he and other conspirators intentionally submitted inflated meal counts. Jama’s Brava Restaurant ultimately received $4.3 million directly from Feeding Our Future and over $900,000 from Safari Restaurant, co-owned by Salim Said.

    As part of their scheme, Jama and his conspirators coordinated the establishment of shell companies through which they received and dispersed funds from the federal child nutrition program. Specifically, on January 7, 2021, Salim Said paid to register six different shell companies with the state of Minnesota for Jama and others. Salim Said paid to register Mumu LLC for Jama. In 2021, Jama deposited at least $872,230—almost all of which was misappropriated Federal Child Nutrition Program funds—into his Mumu LLC bank accounts.

    Jama used federal child nutrition funds to pay for personal expenditures unrelated to feeding children, including at least $88,000 for a 2021 GMC Sierra 3500 Denali 4WD Crew Cab truck and over $500,000 toward real estate in Rochester, Minnesota, and Rosemount, Minnesota.

    Jama pleaded guilty today in U.S. District Court before Chief Judge Patrick J. Schiltz to one count of wire fraud and one count of money laundering. His sentencing hearing will be scheduled at a later date.

    The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

    Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, and Harry M. Jacobs are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

    MIL Security OSI –

  • MIL-OSI Security: Illinois Man Pleads Guilty to Immigration Crime

    Source: Office of United States Attorneys

    BECKLEY, W.Va. – Joseph Sanchez, 33, of Fairbury, Illinois, pleaded guilty today to participating in an immigration marriage fraud conspiracy.

    According to court documents and statements made in court, in or around August 2021, Sanchez was living in Greenbrier County, West Virginia. A foreign national who worked at a convenience store near Sanchez’s residence offered to pay Sanchez if he found a woman willing to marry the foreign national so he could obtain lawful permanent resident status, commonly known as a Green Card. Sanchez ultimately agreed to the request in exchange for $10,000 in cash. The understanding was that $5,000 would be paid upon the marriage being final, and another $5,000 would be paid once the foreign national received his Green Card.

    Sanchez arranged to have his sister-in-law marry the foreign national. Sanchez told his sister-in-law about the purpose of the arrangement and the financial benefits associated with it. The sister-in-law had only occasionally interacted with the foreign national, as a customer at his convenience store. The sister-in-law and Sanchez had no social connections to the foreign national beyond frequenting the convenience store.

    In September 2021, Sanchez’s sister-in-law and the foreign national were married in White Sulphur Springs. In March 2023, Sanchez traveled with the sister-in-law and the foreign national to Pittsburgh, Pennsylvania. The purpose of the trip was for the sister-in-law and the foreign national to attend an interview with U.S. immigration officials to trick those officials into believing the marriage was entered into in good faith and that the relationship between the sister-in-law and the foreign national was genuine. The scheme was unsuccessful, and the foreign national’s application was denied.

    Sanchez is scheduled to be sentenced on May 30, 2025, and faces a maximum penalty of five years in prison, up to three years of supervised release, and a $250,000 fine.

    United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Services (USCIS).

    United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-198.

    ###

     

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Secures Sentences for Two Santa Fe Men for Fentanyl and Methamphetamine Trafficking

    Source: Office of United States Attorneys

    ALBUQUERQUE – Two Santa Fe men were sentenced to federal prison for their roles in a fentanyl and methamphetamine trafficking operation that utilized social media to advertise and distribute drugs.

    According to court documents, the Santa Fe Police Department (SFPD) and the FBI began investigating a fentanyl-based drug-trafficking organization in the fall of 2020. During the investigation, officers uncovered the defendants, Mario Guizar-Anchondo and Werni Lopez-Perez, social media activity advertising the sale of fentanyl and methamphetamine.

    In December 2021, SFPD officers encountered Guizar-Anchondo and Lopez-Perez twice.

    • December 4, 2021: SFPD responded to a report of suspected drug activity involving Lopez-Perez in a white Ford F-150 truck. A search of the vehicle resulted in the discovery of a loaded firearm, over $18,000 in cash, 635 grams of methamphetamine, 40 grams of fentanyl pills, and drug paraphernalia.
    • December 30, 2021: SFPD officers stopped the same Ford F-150 truck, this time driven by Guizar-Anchondo with Lopez-Perez as the passenger. A search of the vehicle, authorized by federal and state warrants, revealed approximately 1,730 grams of methamphetamine, 32,000 fentanyl pills, five loaded firearms, and additional drug paraphernalia.

    Despite the ongoing investigation, Guizar-Anchondo and Lopez-Perez continued to advertise fentanyl pills for sale on social media platforms. These posts depicted baggies of fentanyl pills similar to those recovered from the vehicle.

    Lopez-Perez and Guizar-Anchondo both pled guilty to one count each of possession with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime. Lopez-Perez was sentenced to 80 months in prison, while Guizar-Anchondo was sentenced to 108 months.

    Upon their release from prison, Lopez-Perez and Guizar-Anchondo will be subject to 3 years of supervised release.

    There is no parole in the federal system.

    U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Santa Fe Police Department. The United States Attorney’s Office is prosecuting the case.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Boone County Man Sentenced to Prison for Child Pornography Crime

    Source: Office of United States Attorneys

    CHARLESTON, W.Va. – Trenton Alan Cremeans, 24, of Seth, was sentenced today to three years and six months in prison, to be followed by 20 years of supervised release, for possession of prepubescent child pornography. Cremeans must also register as a sex offender.

    According to court documents and statements made in court, on January 17, 2024, Cremeans possessed child pornography on his cell phone. When combined with child pornography also possessed in his Snapchat accounts, Cremeans possessed a total of approximately 373 images and 31 videos of child pornography. These images and videos included depictions of prepubescent minors engaged in sexually explicit conduct, and some of the images depicted sadistic and masochistic abuse. Cremeans further admitted that he downloaded these images and videos online, and used his cell phone to search online for child pornography and related information by using specific search terms, including terms that specifically sought child pornography depicting infants and toddlers.

    United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).

    Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case.

    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 U.S. Attorneys’ 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.justice.gov/psc.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-41.

    ###

     

    MIL Security OSI –

  • MIL-OSI Security: Helena man admits conspiracy to distribute large quantities of meth, fentanyl

    Source: Office of United States Attorneys

    GREAT FALLS — A Helena man accused of trafficking large quantities of methamphetamine and fentanyl he received from suppliers in California and Oregon admitted to a conspiracy charge today, U.S. Attorney Jesse Laslovich said.

    The defendant, Charles Clifford Hamlin, 61, pleaded guilty to conspiracy to distribute and to possess with intent to distribute controlled substances. Hamlin faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.

    Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for June 5. Hamlin was detained pending further proceedings.

    In a plea agreement filed in the case, the parties agreed that Hamlin would serve a sentence within a stipulated range of 15 years to 20 years in prison.

    In court documents, the government alleged that the Missouri River Drug Task Force and United States Postal Service began investigating Hamlin after they intercepted a package intended for Hamlin in August 2021. The package contained approximately three pounds of meth. Over the next several years, investigators spoke with numerous sources who identified Hamlin as a large-scale narcotics distributor. Two sources worked with Hamlin to bring meth from California to Montana, and one source went to Oregon to obtain meth for Hamlin to distribute. The sources stated the deliveries to Hamlin ranged from between one pound to three pounds.

    Another source told investigators about receiving ounces of meth and “rolls” of fentanyl pills regularly from Hamlin. Hamlin received deliveries every two and one-half weeks from a source in Oregon. Each delivery was approximately seven pounds of meth, 4,000 to 7,000 fentanyl pills, two ounces of cocaine and two ounces of heroin.

    In December 2023, law enforcement conducted a traffic stop on Hamlin and his truck was searched based on a suspected probation violation. Officers located approximately 18 grams of meth in his gas tank flap. Investigators also made controlled buys of meth and fentanyl pills from Hamlin. In February 2024, law enforcement stopped an individual in Powell County, and the person had nine pounds of meth and 6,200 fentanyl pills. Approximately six pounds of the meth was destined for Hamlin.

    The U.S. Attorney’s Office is prosecuting the case. The Missouri River Drug Task Force, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Helena Police Department, Lewis and Clark County Sheriff’s Office, Montana Division of Criminal Investigation, Drug Enforcement Administration and Montana Highway Patrol conducted the investigation.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

    XXX

    MIL Security OSI –

  • MIL-OSI Australia: Arrest – Domestic violence – MacDonnell Region

    Source: Northern Territory Police and Fire Services

    The Northern Territory Police Force have arrested a 35-year-old man in relation to a domestic violence incident that occurred in Amoonguna this morning.

    Around 5:30am, police received reports that a 36-year-old woman had been stabbed by her partner within the community.

    Police and St John Ambulance attended the scene and the woman was conveyed to Alice Springs Hospital in a stable condition with a laceration to her head.

    The 35-year-old man was arrested at the scene and remains in custody, expected to be charged later today.

    Investigations are ongoing and police urge anyone with information to call police on 131 444 and quote reference P25029595 . Anonymous reports can also be made through Crime Stoppers on 1800 333 000.

    Support services for those affected by domestic or family violence are available, including 1800RESPECT (1800 737 732) and Lifeline (13 11 14).

    MIL OSI News –

  • MIL-OSI: Enovix to Release Fourth Quarter and Full Year 2024 Financial Results on February 19, 2025

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Jan. 29, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, today announced it will release financial results for the fourth quarter and full year 2024 on Wednesday, February 19, 2025, after the close of the market.

    Enovix will hold a live video call at 2:00 PM PT / 5:00 PM ET on February 19, 2025, to discuss the company’s business updates, key milestones, and financial results. To join the call, participants must use the following link to register: https://enovix-q4-2024.open-exchange.net/. This link will also be available via the Investor Relations section of Enovix’s website at https://ir.enovix.com. Investors may also submit questions on the registration page that they would like addressed on the call by Enovix management.

    An archived version of the call will be available on the Enovix investor website for one year at https://ir.enovix.com.

    About Enovix

    Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to the vehicle you drive, needs a better battery. Enovix partners with OEMs worldwide to usher in a new era of user experiences. Our innovative, materials-agnostic approach to building a higher performing battery without compromising safety keeps us flexible and on the cutting-edge of battery technology innovation.

    Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia. For more information visit www.enovix.com and follow us on LinkedIn.

    For media and investor inquiries, please contact:

    Enovix Corporation

    Robert Lahey

    Email: ir@enovix.com

    The MIL Network –

  • MIL-OSI New Zealand: Insurance Sector – ICNZ welcomes Govt’s Climate Adaptation response

    Source: Insurance Council of NZ

    The Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) has welcomed the Government’s commitment to introduce legislation to Parliament this year on a Climate Adaptation framework and prepare New Zealanders for the impact of climate change on lives, property and communities.
    “New Zealanders need certainty about the way natural hazard risks from climate change are going to be managed and Government leadership in this critical area is welcome,” ICNZ Chief Executive Kris Faafoi said
    The Government was responding to the Finance and Expenditure Select Committee’s Inquiry into Climate Adaptation released in October last year.
    “The Government has acknowledged that a significant proportion of New Zealanders live in areas susceptible to increasing natural hazard risk and that the prospect of more frequent and severe weather events may impact the stability of our housing, finance and insurance markets.
    “The insurance industry is keen to continue to contribute to the policy formation to keep protecting communities and customers. As the Government has noted, an implementation plan will be required that all sectors can buy into and is achievable.
    “New Zealand is a risky country, and we are committed to finding solutions that reduce our exposure to natural hazard risks by avoiding building in dumb places and by investing in infrastructure that protects communities as well as better preparing for recovery from future natural disasters.
    “We also support the government’s goal of a cross-party solution to ensure New Zealand’s approach is enduring. Adapting to climate change requires a long-term political commitment as reinsurers and insurers need long-term policy and investment certainty for some of the likely actions and investments required to safeguard Kiwis and minimise the insurance protection gap.
    “We commend the Government for taking this approach. When Climate Change Minister Simon Watts and insurers met with reinsurers in London last year, they told us that they have confidence in New Zealand’s plan and that being proactive and having consistent policy settings would help keep reinsurance available for New Zealand.
    “While there is work already underway to prepare for a changing climate, we need to work with haste on this issue to keep all of New Zealand protected from the worst effects of future events.
    “Research shows every dollar invested in adaptation brings substantial economic benefits..By addressing these risks now, New Zealand can avoid the higher costs associated with future climate-related disasters,” Kris Faafoi said.

    MIL OSI New Zealand News –

  • MIL-OSI: Hampton Financial Corporation Announces 1st Quarter Results

    Source: GlobeNewswire (MIL-OSI)

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

    TORONTO, Jan. 29, 2025 (GLOBE NEWSWIRE) — Hampton Financial Corporation (“Hampton” or the “Company”, TSXV:HFC) today announced its financial results for the 1st quarter ended November 30th, 2024.

    First Quarter ended November 30th, 2024.

    IFRS results highlights:

    • Q1 Revenue of $3,133,000; an increase of 80% year-over-year
    • Q1 Net Loss of $(799,000) or $(0.01) per share;

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

    • Q1 Adjusted Net Loss of $(505,000) or $(0.01) per share;
    • Q1 EBITDA of $240,000 vs $(249,000) in the comparative quarter last year

    Summary of Corporate Developments:

    Our 1st quarter results reflect the continued challenging environment across the Capital markets industry. Rising interest rates and global uncertainty continue to delay many corporate finance and broader financial decisions on the part of issuers. 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 prorate and Capital Markets businesses. Our acquisition of Oxygen Working Capital in early 2024 has been integrated and we continue to explore opportunities to expand the landing book.

    “The first quarter results continue to demonstrate the industry-wide challenges faced during the fall of 2024. 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 months ended November 30, 2024, can be accessed on SEDAR+ at www.sedar.com.

    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 Security: Ohio Man Sentenced for Methamphetamine Trafficking

    Source: Office of United States Attorneys

    WHEELING, WEST VIRGINIA – David Lamont Hicks, age 48, of Steubenville, Ohio, was sentenced today to 81 months in federal prison for the distribution of methamphetamine. 

    According to court documents and statements made in court, as part of a drug investigation, officers searched an apartment on Wheeling Island. Hicks fled the apartment on foot and was arrested. Investigators seized methamphetamine and drug paraphernalia. Hicks has prior convictions for aggravated robbery, drug trafficking, and attempted burglary.

    Hicks will serve three years of supervised release following his prison sentence.

    Assistant U.S. Attorney Carly Nogay prosecuted the case on behalf of the government.

    The Ohio Valley Drug Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.   

    U.S. District Judge John Preston Bailey presided.

    MIL Security OSI –

  • MIL-OSI Security: Federal Grand Jury Indicts Man for Allegedly Attempting To Extort Money From Chicago Restaurateur

    Source: Office of United States Attorneys

    CHICAGO — A federal grand jury has indicted a man for allegedly threatening and assaulting a Chicago restaurateur to collect a debt the man claimed he was owed.

    An indictment returned Monday in U.S. District Court in Chicago charges JAWAD FAKROUNE, also known as “Angelino Escobar” or “Anjelino Escobar,” 45, of Morocco, with extortion.  Arraignment is scheduled for Feb. 5, 2025, at 10:30 a.m., before U.S. District Judge Manish S. Shah.

    In 2023 and 2024, Fakroune privately loaned approximately $405,000 to the restaurateur to start a new restaurant in the Lincoln Park neighborhood of Chicago, according to a criminal complaint previously filed in the case. The restaurateur repaid a portion of the loan, but in November 2024 Fakroune and the restaurateur engaged in a dispute regarding the amount of money still owed, the complaint states. On the evening of Nov. 25, 2024, Fakroune went to the restaurant, threatened the restaurateur over the manner and nature of the repayments, and claimed that $1.5 million was still owed, the complaint states.  Fakroune then choked, kicked, and punched the restaurateur, while continuing to demand money and threatening the restaurateur’s life and the lives of his family members, the complaint states.

    The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office.  The government is represented by Assistant U.S. Attorneys Sean Hennessy and Richard M. Rothblatt.

    The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

    MIL Security OSI –

  • MIL-OSI Security: Brooklyn Man Charged with Sexual Exploitation of a Child

    Source: Office of United States Attorneys

    Earlier today, an indictment was unsealed charging Ramel Warner with sexual exploitation of a child.  The defendant was arrested this morning and arraigned before Magistrate Judge Vera M. Scanlon. He was detained pending trial.

    John J. Durham, United States Attorney for the Eastern District of New York, and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.

    “As alleged, while babysitting a seven-year-old boy, the defendant horrifically abused him, filmed the acts and subsequently distributed it on the dark web,” stated United States Attorney Durham.  “Our Office will continue to work tirelessly with our law enforcement partners to bring to justice anyone who abuses children.”

    Mr. Durham expressed his appreciation to the New York City Police Department for their assistance on the case.

    “Ramel Warner is alleged to have used his access to a young child, while babysitting him at his own home, to film himself sexually assaulting the child. Warner’s alleged actions are unconscionable, and we believe there may be more victims. We ask anyone with information regarding his actions to please come forward, so that we can further investigate and aid his victims.  The FBI is committed to ensuring the safety of children and holding their abusers accountable in the criminal justice system,” stated FBI Assistant Director in Charge Dennehy.

    As set forth in court filings, in approximately 2022, the defendant raped the young son of a family friend in the child’s own home when he was supposed to be babysitting him.  The defendant recorded six videos of his sexual abuse of the child, one of which was over four minutes long.  The videos the defendant created depict him anally penetrating the child and performing oral sex on him.  Those videos were subsequently distributed on the dark web.

    The government believes the defendant has worked at afterschool programs in Brooklyn public schools, including a dance group for minor children operating out of a Brooklyn middle school. Anyone with information about sexual exploitation by the defendant should contact the FBI at RWarnerCase@fbi.gov.

    This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by United States Attorneys’ Offices, 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 https://www.justice.gov/psc.

    The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a minimum sentence of 15 years and a maximum sentence of 30 years.

    The government’s case is being prosecuted by the Office’s General Crimes Section.  Assistant United States Attorney Vincent Chiappini is in charge of the prosecution.

    The Defendant:

    Ramel Warner
    Age: 23
    Brooklyn, New York

    E.D.N.Y. Docket No. 25-CR-32

    MIL Security OSI –

  • MIL-OSI Security: Grand Jury Returns Seven Indictments

    Source: Office of United States Attorneys

    MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation, and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.

    LAS VEGAS MAN CHARGED WITH COCAINE TRAFFICKING AND ILLEGAL FIREARMS POSSESSION

    Enrique Rodriquez possessed over 5 kilograms of cocaine

    Enrique Rodriguez, 41, Las Vegas, Nevada, is charged with distributing cocaine, possessing cocaine intended for distribution, possessing a firearm as a felon, and possessing a firearm in furtherance of a drug trafficking crime. The indictment alleges that on June 6, 2024, Rodriguez distributed 500 grams or more of cocaine. The indictment also alleges that on January 16, 2025, Rodriquez possessed 5 kilograms or more of cocaine intended for distribution, illegally possessed a firearm as a felon, and possessed the firearm to further a drug trafficking crime. 

    If convicted, Rodriguez faces a mandatory minimum penalty of 5 years in prison and a maximum penalty of 40 years in prison for the count charging distribution of over 500 grams of cocaine. The count involving 5 kilograms or more of cocaine carries a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison. The felon in possession charge carries a maximum penalty of 15 years in prison. The charge of possessing a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of 5 years in prison and a maximum penalty of life.

    The charges against Rodriguez are the result of an investigation conducted by the Drug Enforcement Administration in Madison and Milwaukee, the Federal Bureau of Investigation, the ATF Madison Crime Gun Task Force, Wisconsin Department of Justice Division of Criminal Investigation, the Dane County Sheriff’s Office, and the Madison Police Department. The ATF Madison Crime Gun Task Force consists of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. Assistant U.S. Attorney Steven P. Anderson is handling the case.

    MARSHALL MAN CHARGED WITH DRUG AND GUN CRIMES

    Deontrae C. McIntosh, 21, Marshall, Wisconsin, is charged with distributing cocaine, heroin, and fentanyl; possessing cocaine and fentanyl intended for distribution; possessing a firearm and ammunition as a felon; and possessing a firearm in connection with a drug trafficking crime.

    The indictment alleges that McIntosh distributed cocaine on September 23, 2024, and on September 27, 2024. The indictment alleges that McIntosh distributed cocaine and heroin on October 4, 2024. The indictment further alleges that on November 6, 2024, McIntosh distributed cocaine and fentanyl, possessed cocaine and fentanyl intended for distribution, and possessed a loaded Glock 23, 40 caliber semi-automatic handgun as a felon and in furtherance of a drug trafficking crime. 

    If convicted, McIntosh faces a maximum penalty of 20 years in prison on each drug charge. The felon in possession charge carries a maximum penalty of 15 years in prison. If convicted of possessing a firearm in furtherance of a drug trafficking crime, McIntosh faces a penalty of not less than 5 years in prison with a maximum of life in prison.

    The charges against McIntosh are the result of an investigation conducted by the Dane County Narcotics Task Force and the ATF Madison Crime Gun Task Force. U.S. Attorney Timothy M. O’Shea is handling the case.

    CHIPPEWA FALLS MAN CHARGED WITH TRAFFICKING METHAMPHETAMINE AND FENTANYL

    Jason Barnard, 39, Chippewa Falls, Wisconsin, is charged with distributing methamphetamine and fentanyl and with possessing methamphetamine and fentanyl intended for distribution. The indictment alleges that on October 6, 2024, Barnard distributed a mixture of fentanyl and methamphetamine. The indictment further alleges that Barnard distributed 50 grams or more of methamphetamine. Finally, the indictment alleges that on December 6, 2024, Barnard possessed 500 grams or more of methamphetamine and 40 grams or more of fentanyl, all intended for distribution.

    If convicted of the charge involving 50 grams or more of methamphetamine or 40 grams or more of fentanyl, Barnard faces a minimum penalty of 5 years in prison and a maximum penalty of 40 years in prison. If convicted of the charge involving 500 grams or more of methamphetamine, Barnard faces a minimum penalty of 10 years and a maximum penalty of life in prison. The other distribution charge carries a maximum penalty of 20 years in prison.

    The charges against Barnard are the result of an investigation conducted by the West Central Drug Enforcement Task Force, Wisconsin Department of Justice Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney Robert Anderson is handling the case.

    WAUSAU MAN CHARGED WITH COCAINE TRAFFICKING AND ILLEGALLY POSSESSING FIREARMS

    Johntay L. Johnson, 39, Wausau, Wisconsin, is charged with maintaining a drug involved premise, distributing cocaine, and possessing firearms as a felon. The indictment alleges that between December 19, 2023, and November 21, 2024, Johnson used his residence in Wausau to store, manufacture, and distribute illegal drugs. The indictment further alleges that Johnson distributed cocaine on nine occasions in 2024 and possessed three firearms as a felon on September 10, 2024.

    If convicted of the drug counts, Johnson faces a maximum penalty of 20 years in prison on each count. If convicted of the felon in possession count, Johnson faces a maximum penalty of 15 years in prison. 

    The charges against Johnson were the result of an investigation conducted by the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of agents from the FBI, Wisconsin State Patrol, Wisconsin Department of Criminal Investigation, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Mountain Bay Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program. Assistant U.S. Attorney Steven P. Anderson is handling the case.

    SUN PRAIRIE MAN CHARGED WITH ILLEGALLY POSSESSING FIREARM AND AMMUNITION

    Cashius Carter, 20, Sun Prairie, Wisconsin, is charged with possessing a firearm and ammunition as a felon. The indictment alleges that Carter possessed a loaded Glock 9mm handgun and Federal 9mm ammunition between June 21, 2024, and September 26, 2024.  

    If convicted, Carter faces a maximum penalty of 15 years in prison.

    The charge against him is the result of an investigation conducted by the Fitchburg Police Department and the ATF Madison Crime Gun Task Force. Assistant U.S. Attorney Corey Stephan is handling the case.

    FITCHBURG MAN CHARGED WITH ILLEGALLY POSSESSING FIREARM

    Malcolm Whiteside, 29, Fitchburg, Wisconsin, is charged with possessing a firearm as a felon. The indictment alleges that Whiteside possessed a loaded Glock Model 27 pistol on August 12, 2024. 

    If convicted, Whiteside faces a maximum penalty of 15 years in prison.

    The charge against Whiteside is the result of an investigation conducted by the Monona Police Department, Madison Police Department, Wisconsin State Patrol, and the ATF Madison Crime Gun Task Force. Assistant U.S. Attorney Chadwick M. Elgersma is handling the case.

    MADISON MAN CHARGED WITH DRUG CRIMES

    Gregory P. Robinson, 41, Madison, Wisconsin, is charged with distributing cocaine, possessing cocaine and fentanyl intended for distribution, and maintaining a drug trafficking place. The indictment alleges that Robinson distributed cocaine on four occasions in June 2024. The indictment also alleges that on June 25, 2024, Robinson possessed cocaine, 400 grams or more of a mixture containing fentanyl and cocaine, and 40 grams or more of fentanyl, all intended for distribution. Finally, the indictment alleges that Robinson maintained a drug trafficking place from June 13, 2024, to June 25,2024.

    If convicted of the charge involving 400 grams or more, Robinson faces a minimum penalty of 10 years in prison and a maximum of life in prison. If convicted of the charge involving 40 grams or more, Robinson faces a minimum penalty of 5 years and a maximum penalty of 40 years in prison. The distribution charges, the possession of cocaine charge, and the maintaining a drug trafficking place charge all carry maximum penalties of 20 years in prison.

    The charges against Robinson are the result of an investigation conducted by the Dane County Narcotics Task Force, the Madison Police Department, and the ATF Madison Crime Gun Task Force. Assistant U.S. Attorney Colleen Lennon is handling the case.

    CHIPPEWA FALLS MAN CHARGED WITH TRAFFICKING METHAMPHETAMINE

    Leroy T. McNamara, 61, Chippewa Falls, Wisconsin, is charged with distributing methamphetamine. The indictment alleges that McNamera distributed 50 grams or more of methamphetamine on July 8, 2024, and July 24, 2024.

    If convicted, McNamara faces a mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison on each charge.

    The charges against McNamara are the result of an investigation conducted by the West Central Drug Task Force and the Chippewa County Sheriff’s Office. Assistant U.S. Attorney Megan Stelljes is handling the case.

    MIL Security OSI –

  • MIL-OSI Security: Multi-Convicted Felon Sentenced to More Than Five Years in Federal Prison for Illegally Possessing Ammunition

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    LOS ANGELES – A Los Angeles-area man with multiple prior felony convictions has been sentenced to 63 months in federal prison for illegally possessing ammunition during an incident last year in which pointed a firearm at a victim and also threatened to shoot the victim’s dog, the Justice Department announced today.

    Edward Conway, 47, who was a transient at the time of the offense, was sentenced Monday afternoon by United States District Judge Percy Anderson. Conway pleaded guilty in October 2024 to one count of being a felon in possession of ammunition.

    According to court documents, on February 25, 2024, Conway held a gun to the head of his ex-girlfriend’s cousin, demanding that the victim get Conway’s ex-girlfriend on the phone. Conway also threatened to shoot the man’s dog if he didn’t cooperate.

    During the incident, Conway pointed to a camera on the man’s house and demanded that the victim turn the camera off. When the victim told Conway he was unable to do so, Conway fired his gun at the camera, pushed his gun into the victim’s back and pinned him to a car while continuing to threaten him.

    When Conway shot toward the camera, a child was taking shelter from the commotion in a house adjacent to where Conway fired the gun, prosecutors wrote in a sentencing memorandum. Investigators recovered a 9mm caliber shell casing from the scene.

    After shooting at the camera, Conway fled the scene on foot, but he was later arrested by officers with the Los Angeles Police Department.

    Earlier that same day, Conway harassed and strangled his ex-girlfriend outside of a grocery store in Los Angeles, then proceeded to throw her car keys onto a neighboring apartment, preventing her from escaping him, according to the sentencing memo.  As a result of this conduct, Conway was convicted of felony domestic violence and sentenced to 60 days in custody.

    Conway is not legally permitted to possess ammunition because of his criminal history, which includes felony convictions in Los Angeles Superior Court for second-degree robbery, being a felon in possession of a firearm, and assault with a deadly weapon.

    The FBI and the Los Angeles Police Department investigated this matter. 

    Assistant United States Attorney Mirelle N. Raza of the General Crimes Section prosecuted this case.

    MIL Security OSI –

  • MIL-OSI: NVIDIA Sets Conference Call for Fourth-Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., Jan. 29, 2025 (GLOBE NEWSWIRE) — NVIDIA will host a conference call on Wednesday, February 26, at 2 p.m. PT (5 p.m. ET) to discuss its financial results for the fourth quarter and fiscal year 2025, which ended January 26, 2025.

    The call will be webcast live (in listen-only mode) on investor.nvidia.com. The company’s prepared remarks will be followed by a Q&A session, which will be limited to questions from financial analysts and institutional investors.

    Ahead of the call, NVIDIA will provide written commentary on its fourth-quarter results from its chief financial officer, Colette Kress. This material will be posted to investor.nvidia.com immediately after the company’s results are publicly announced at approximately 1:20 p.m. PT.

    The webcast will be recorded and available for replay until the company’s conference call to discuss financial results for its first quarter of fiscal year 2026.

    About NVIDIA
    NVIDIA (NASDAQ: NVDA) is the world leader in accelerated computing.

    For further information, contact:
    Investor Relations
    NVIDIA Corporation
    ir@nvidia.com     		 Corporate Communications
    NVIDIA Corporation
    press@nvidia.com
       

    © 2025 NVIDIA Corporation. All rights reserved. NVIDIA and the NVIDIA logo are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries.

    The MIL Network –

  • MIL-OSI USA: Senator Coons, colleagues introduce bipartisan legislation to support firefighters with service-related cancers

    US Senate News:

    Source: United States Senator for Delaware Christopher Coons

    WASHINGTON – U.S. Senators Chris Coons (D-Del.), Amy Klobuchar (D-Minn.) and Kevin Cramer (R-N.D.) reintroduced the Honoring Our Fallen Heroes Act. This bipartisan legislation, which passed unanimously out of the Senate Judiciary Committee last year, would expand federal support for the families of firefighters and other first responders who pass away or become permanently disabled from service-related cancers. The Public Safety Officer Benefits (PSOB) program—which provides benefits to first responders injured in the line of duty and to their families—currently extends protection to first responders suffering from a narrow list of injuries and illnesses. This bill would expand PSOB coverage to more first responders and their families.

    “Firefighters face many life-threatening health risks. Not all of them move as swiftly as a heart attack, but families are no less deserving of benefits if they lose their loved ones to cancers they were exposed to the line of duty,” said Senator Coons. “We need to close this loophole in the PSOB program so that the families of firefighters and first responders who lost their lives due to service-related cancers or face severe disabilities receive the benefits they deserve.”

    “As we are seeing in California and throughout the country, our firefighters put their lives on the line every day to keep us safe, often exposing themselves to carcinogens that can have lethal long-term effects. It’s unacceptable that firefighters who succumb to cancer from work-related exposure or become permanently and totally disabled don’t receive the same treatment as others who die in the line of duty,” said Senator Klobuchar. “Our bipartisan legislation will honor the memory and sacrifice of St. Paul Fire Department Captain Mike Paidar and so many others who risk their lives in service of their communities.”

    “Our first responders epitomize courage and selfless sacrifice, confronting both the immediate perils of their duty and lingering health risks associated with their service,” said Senator Cramer. “The exposure to dangerous carcinogens happens on our behalf. When these heroes make the ultimate sacrifice, their families should not bear these burdens alone.”

    The Honoring our Fallen Heroes Act would expand access to federal support for the families of firefighters and first responders who pass away from cancer caused by carcinogenic exposure during their service. The bill would also extend disability benefits in cases where these first responders become permanently and totally disabled due to cancer.

    This legislation was introduced in honor of Michael Paidar, a fire captain who died in 2020 of an aggressive form of Acute Myeloid Leukemia. In 2021, after strong advocacy from the Paidar family, the Minnesota Department of Public Safety awarded line-of-duty benefits to Captain Paidar’s widow, Julie. This was the first time that Minnesota’s state PSOB program provided a firefighter’s family with benefits for cancer incurred in the line of duty. The Honoring Our Fallen Heroes Act would ensure that firefighters and other first responders across the country are eligible to receive similar benefits under the federal PSOB program. 

    In addition to Senators Coons, Klobuchar, and Cramer, this bill is also co-sponsored by Senators Alex Padilla (D-Calif.), Adam Schiff (D-Calif.), Jim Banks (R-Ind.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Richard Blumenthal (D-Conn.), John Cornyn (R-Texas), Ted Cruz (R-Texas), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), John Fetterman (D-Pa.), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), Mazie Hirono (D-Hawaii), John Hoeven (R-N.D.), Jim Justice (R-W.Va.), Mark Kelly (D-Ariz.), Ed Markey (D-Mass.), Mike Rounds (R-S.D.), Jeanne Shaheen (D-N.H.), Tim Sheehy (R-Mont.), Tina Smith (D-Minn.), Mark Warner (D-Va.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.), and Ron Wyden (D-Ore.).

    The legislation is endorsed by the International Association of Fire Fighters (IAFF), Association of State Criminal Investigative Agencies (ASCIA), Congressional Fire Services Institute (CFSI), Federal Law Enforcement Officers Association (FLEOA), Fraternal Order of Police (FOP), International Association of Fire Chiefs (IAFC), Major County Sheriffs of America (MCSA), Metropolitan Fire Chiefs Association (Metro Chiefs), National Association of Police Organizations (NAPO), National Fallen Firefighters Foundation (NFFF), National Fire Protection Association (NFPA), National Narcotics Officers’ Associations Coalition (NNOAC), National Volunteer Fire Council (NVFC), and the Sergeants Benevolent Association of the NYPD. 

    A full list of endorsement quotes is available here.

    Senator Coons has long-advocated for firefighters and first responders’ health, benefits, safety, and well-being. He worked to pass the bipartisan Fire Grants and Safety Act, which was signed into law by President Biden in 2023, and helps local fire departments access funding for training, personnel, and equipment—all of which are especially in demand from small and volunteer fire departments. He also cosponsored the Protecting America’s First Responders Act, which was signed into law in 2021, and improved the PSOB program by allowing benefit amounts to be calculated based on the date of the award and account for cost of living increases. In 2022, he introduced the Fighting Post-Traumatic Stress Disorder Act, a bipartisan bill to promote mental health programs for America’s first responders, who often face long-term effects from providing life-saving services in moments of crisis.

    MIL OSI USA News –

  • MIL-OSI: United Fire Group, Inc. Announces Its 2024 Fourth Quarter Earnings Call

    Source: GlobeNewswire (MIL-OSI)

    CEDAR RAPIDS, Iowa, Jan. 29, 2025 (GLOBE NEWSWIRE) — United Fire Group, Inc. (Nasdaq: UFCS) (the “Company”, “UFG”, “we”, or “our”) announced today that its 2024 fourth quarter earnings results will be released after the market closes on Tuesday, February 11, 2025. An earnings call will be held on Wednesday, February 12, 2025 at 9:00 a.m. central time to allow securities analysts, shareholders and other interested parties the opportunity to hear management discuss the Company’s 2024 fourth quarter results.

    Teleconference: Dial-in information for the call is toll-free 1-844-492-3723 (international 1-412-542-4184). Participants should request to join the United Fire Group call. The event will be archived and available for digital replay through February 19, 2025. The replay access information is toll-free 1-877-344-7529 (international 1-412-317-0088); access code no. 4765665.

    Webcast: A webcast of the teleconference can be accessed at the Company’s investor relations page at https://ir.ufginsurance.com/event/ or https://event.choruscall.com/mediaframe/webcast.html?webcastid=j4u0yn8Q. The archived audio webcast will be available for one year.

    Transcript: A transcript of the teleconference will be available on the Company’s website soon after the completion of the teleconference.

    About UFG:

    Founded in 1946 as United Fire & Casualty Company, UFG, through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance.

    The company is licensed as a property and casualty insurer in all 50 states and the District of Columbia, and is represented by approximately 1,000 independent agencies. A.M. Best Company assigns a rating of “A-” (Excellent) for members of the United Fire & Casualty Group.

    For more information about UFG visit www.ufginsurance.com.

    Contact: Investor Relations at IR@unitedfiregroup.com.

    The MIL Network –

  • MIL-OSI: Banco Itaú Chile Schedules Fourth Quarter 2024 Financial Results, Conference Call and Webcast

    Source: GlobeNewswire (MIL-OSI)

    SANTIAGO, Chile, Jan. 29, 2025 (GLOBE NEWSWIRE) — BANCO ITAÚ CHILE (SSE: ITAUCL) announced today that it will release its results for the fourth quarter ended December 31, 2024, before the market opens in Santiago, on February 28, 2025.

    On Monday, March 3, 2025, at 11:00 A.M. Santiago time (9:00 A.M. ET), the Company’s management team will host a conference call to discuss the financial results. The call will be hosted by André Gailey, CEO; Claudia Labbé Montevecchi, Head of IR and Chief Sustainability Officer; and Matías Valenzuela Barrenechea, Head of FP&A, Capital and IR.

    Conference Call Details:

    Online registration: https://registrations.events/direct/Q4I6136278

    All participants must pre-register using this link to join the conference call. Upon registering, each participant will be provided with details to connect to the call and a registrant ID.

    Webcast:

    The webcast will be available through the following link:

    https://events.q4inc.com/attendee/846439085

    Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. Following the event, the event will be available in the same link.

    Telephone and Virtual Q&A session:

    The Q&A session will be available for participants connected through the conference call and through the webcast, where attendees will be allowed to type in their questions – we will read and answer selected questions verbally.

    Investor Relations – Itaú Chile

    IR@itau.cl / ir.itau.cl

    The MIL Network –

  • MIL-OSI: UPDATE – United Kingdom Investment Trusts

    Source: GlobeNewswire (MIL-OSI)

    GREENWICH, Conn., Jan. 29, 2025 (GLOBE NEWSWIRE) — Closed-End – David Schachter, Senior Vice President of Gabelli Funds, will travel to the United Kingdom to visit selected investment trusts.

    With over 40 years of experience exclusively with retail, long term, closed-end fund investors, Mr. Schachter, a most senior and experienced veteran of the U.S. Closed-End Fund industry, is also Vice President of The GAMCO Natural Resources, Gold & Income Trust (GNT), which trades on the NYSE.

    During the 19th century, capital was raised through closed-end funds. These funds helped build the railroads, which linked the American continent from sea to sea and led to the nation’s economic success.

    Today, in the early 21st century, closed-end funds are being threatened for elimination by hedged activists for short-term and short-sighted value extraction.

    “Closed-end funds are a metaphor for long-term, patient capital, but they also represent freedom for investors who, in a sector where mass redemptions could force portfolio managers to sell, is an essential ability to those who may not want to be herded into selling.”

    Mr. Schachter plans to visit the Gabelli office as well as the Association of Investment Companies (AIC) and speak with interested U.K. investors.

    Financial professionals and investors are invited to contact Mr. Schachter directly at (914) 921-5057.

    Gabelli Funds, LLC is the adviser to thirteen closed-end funds which trade on the NYSE: Gabelli Equity Trust (GAB), Gabelli Convertible & Income Securities Fund (GCV), Gabelli Multimedia Trust (GGT), Gabelli Utility Trust (GUT), Gabelli Dividend & Income Trust (GDV), Gabelli Global Utility & Income Trust (GLU), GAMCO Global Gold Natural Resources & Income Trust (GGN), The GDL Fund (GDL), Gabelli Healthcare & WellnessRX Trust (GRX), GAMCO Natural Resources, Gold & Income Trust (GNT), Gabelli Global Small and Mid-Cap Value Trust (GGZ), Bancroft Fund (BCV) and Ellsworth Growth & Income Fund (ECF). As of December 31, 2024, the thirteen Gabelli closed-end funds had total assets of $7.3 billion.

    Investors should carefully consider the investment objectives, risks, charges, and expenses of a Fund before investing. For more information regarding the Funds, call:

    David Schachter
    (914) 921-5057
    dschachter@gabelli.com

    A Fund’s NAV per share will fluctuate with changes in the market value of the Fund’s portfolio securities. Stocks are subject to market, economic, and business risks that cause their prices to fluctuate. Investors acquire shares of the Fund on a securities exchange at market value, which fluctuates according to the dynamics of supply and demand. When Fund shares are sold, they may be worth more or less than their original cost. Consequently, you can lose money by investing in a Fund.

    The MIL Network –

  • MIL-OSI: Dundee Corporation Announces Acquisition of Shares of Odyssey Resources Limited

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 29, 2025 (GLOBE NEWSWIRE) — In accordance with regulatory requirements, Dundee Corporation (TSX: DC.A) (“Dundee”) announces that its wholly owned subsidiary, Dundee Resources Limited, has acquired 2,000,000 common shares of Odyssey Resources Limited (the “Issuer”) at the price of C$0.05 per share for aggregate consideration of C$100,000 pursuant to a non-brokered private placement.

    Immediately prior to the acquisition of securities described in this news release, Dundee and its affiliates owned 11,366,136 common shares of the Issuer representing an approximate 31.37% interest in the Issuer on an undiluted basis. Immediately following the transaction that triggered the requirement to file this news release, Dundee and its affiliates own or control an aggregate of 13,366,136 common shares representing an approximate 34.96% interest in the Issuer on an undiluted basis.

    Dundee acquired the securities of the Issuer for investment purposes only. Dundee intends to review, on a continuous basis, various factors related to its investment, including (but not limited to) the price and availability of the securities of the Issuer, subsequent developments affecting the Issuer or its business, and the general market and economic conditions. Based upon these and other factors, Dundee may decide to purchase additional securities of the Issuer or may decide in the future to sell all or part of its investment.

    This news release is being issued in accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the filing of an early warning report. The early warning report respecting the acquisition will be filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedarplus.ca under the Issuer’s profile. To obtain a copy of the early warning report filed by Dundee, please contact:

    Dundee Corporation
    Legal Department
    80 Richmond Street West, Suite 2000
    Toronto, Ontario M5H 2A4
    Tel: (416) 365-5172

    ABOUT DUNDEE CORPORATION

    Dundee Corporation is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol “DC.A”. Through its operating subsidiaries, Dundee Corporation is an active investor focused on delivering long-term, sustainable value as a trusted partner in the mining sector with more than 30 years of experience making accretive mining investments.

    FOR FURTHER INFORMATION PLEASE CONTACT:

    Investor and Media Relations
    T: (416) 864-3584
    E: ir@dundeecorporation.com

    The MIL Network –

  • MIL-OSI: National Fuel Reports First Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    WILLIAMSVILLE, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) — National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the first quarter of its 2025 fiscal year.

    FISCAL 2025 FIRST QUARTER SUMMARY

    • GAAP net income of $45.0 million (or $0.49 per share), which includes $104.6 million in non-cash, after-tax impairment charges in the Exploration & Production segment, compared to GAAP net income of $133.0 million (or $1.44 per share) in the prior year.
    • Adjusted operating results of $151.9 million (or $1.66 per share), an increase of 14%, or $16.7 million ($0.20 per share), compared to the prior year. See non-GAAP reconciliation on page 2.
    • Pipeline & Storage segment net income increased $8.4 million, or 35%, compared to the prior year, primarily due to the settlement of the Supply Corporation rate case, which led to increased rates effective February 1, 2024.
    • Utility segment net income increased $5.9 million, or 22%, compared to the prior year driven by a three-year settlement of a rate proceeding in the Company’s New York jurisdiction, which led to increased rates starting October 1, 2024.
    • E&P segment adjusted operating results increased $2.6 million, or 5%, compared to the prior year, supported by hedging-related gains, which more than offset the $0.08 per MMBtu decrease in the weighted average natural gas price compared to the prior year.
    • The Company repurchased $34 million of common stock during the quarter, which brings the total amount repurchased to $99 million, or 1.7 million shares, under the $200 million share buyback program, authorized in March 2024.
    • The Company is increasing its guidance for fiscal 2025 adjusted earnings per share to a range of $6.50 to $7.00 as a result of higher forecasted natural gas prices and ongoing improvements in the outlook for each segment.

    MANAGEMENT COMMENTS

    David P. Bauer, President and CEO of National Fuel Gas Company, stated: “Fiscal 2025 is off to a great start for National Fuel, with each business contributing to our strong consolidated adjusted operating results.

    “In our regulated segments, we are delivering on our long-term growth outlook, with adjusted earnings per share in the quarter increasing approximately 30% compared to the prior year. The recent approval of our rate case settlement in our New York utility jurisdiction, which extends through 2027, combined with the ongoing benefits from ratemaking activity in our Pennsylvania utility territory and at Supply Corporation, gives us further confidence in our 7% to 10% earnings growth projections over the next three years. Furthermore, our integrated upstream and gathering operations in the Eastern Development Area (“EDA”) continue to exceed expectations, with the combination of strong operational execution and our highly-prolific assets. This differentiated ability to drive capital efficiency improvements alongside a rising price outlook for natural gas positions these businesses to deliver strong results in the coming years. We expect that these tailwinds will contribute to rising free cash flow across the system and deliver significant value to National Fuel shareholders.”

    RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

           
      Three Months Ended
      December 31,
    (in thousands except per share amounts) 2024   2023
    Reported GAAP Earnings $ 44,986     $ 133,020  
    Items impacting comparability:      
    Impairment of assets (E&P)   141,802       —  
    Tax impact of impairment of assets   (37,169 )     —  
    Unrealized (gain) loss on derivative asset (E&P)   349       4,198  
    Tax impact of unrealized (gain) loss on derivative asset   (94 )     (1,151 )
    Unrealized (gain) loss on other investments (Corporate / All Other)   2,617       (1,049 )
    Tax impact of unrealized (gain) loss on other investments   (550 )     220  
    Adjusted Operating Results $ 151,941     $ 135,238  
           
    Reported GAAP Earnings Per Share $ 0.49     $ 1.44  
    Items impacting comparability:      
    Impairment of assets, net of tax (E&P)   1.14       —  
    Unrealized (gain) loss on derivative asset, net of tax (E&P)   —       0.03  
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)   0.02       (0.01 )
    Rounding   0.01       —  
    Adjusted Operating Results Per Share $ 1.66     $ 1.46  
                   

    FISCAL 2025 GUIDANCE UPDATE

    National Fuel is increasing its guidance for fiscal 2025 adjusted earnings per share, which are now expected to be within a range of $6.50 to $7.00. This updated range incorporates better than expected results in the first quarter along with the anticipated impact of higher natural gas prices and higher production in the Exploration and Production segment for the remainder of the fiscal year. The Company is now assuming NYMEX natural gas prices will average $3.50 per MMBtu for the remaining nine months of fiscal 2025, an increase of $0.70 from the $2.80 per MMBtu assumed in previous guidance. This updated natural gas price projection approximates the current NYMEX forward curve at this time, however; given the continued volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted operating results guidance range:

    NYMEX Assumption 
    Remaining 9 months 
    ($/MMBtu)    		 Fiscal 2025 
    Adjusted Earnings 
    Per Share Sensitivities
    $3.00 $6.15 – $6.65
    $3.50 $6.50 – $7.00
    $4.00 $6.90 – $7.40

    The Company’s production guidance for fiscal 2025 is now expected to be in the range of 410 to 425 Bcfe, an increase of 7.5 Bcfe, or 2%, at the midpoint compared to previous guidance. The revised production guidance is principally a result of ongoing improvements in Seneca’s well results and additional operational efficiencies in the highly prolific EDA. This is also expected to result in increased Gathering segment revenue, relative to the Company’s prior projections, and as a result the Company has increased the midpoint of its guidance range by $5 million. While the Company’s guidance does not incorporate any future price-related curtailments, with 87% of its projected fiscal 2025 production linked to firm sales contracts, Seneca has limited exposure to in-basin markets. Further, 71% of expected production for the balance of the fiscal year is either matched by a financial hedge, including a combination of swaps and no-cost collars, or was entered into at a fixed price, both of which provide price certainty for that production.

    Additionally, as a result of operational improvements, the Company is revising Seneca’s capital expenditure guidance range downward to $495 million to $515 million, or $505 million at the midpoint, which is a $5 million decrease from the midpoint of the Company’s previous guidance.

    The Company’s other fiscal 2025 guidance assumptions remain largely unchanged and are detailed in the table on page 7.

    DISCUSSION OF FIRST QUARTER RESULTS BY SEGMENT

    The following earnings discussion of each operating segment for the quarter ended December 31, 2024 is summarized in a tabular form on pages 8 and 9 of this report. It may be helpful to refer to those tables while reviewing this discussion.

    Note that management defines adjusted operating results as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

    Upstream Business

    Exploration and Production Segment

    The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.

      Three Months Ended
      December 31,
    (in thousands) 2024   2023   Variance
    GAAP Earnings $ (46,777 )   $ 52,483   $ (99,260 )
    Impairment of assets, net of tax   104,633       —     104,633  
    Unrealized (gain) loss on derivative asset, net of tax   255       3,047     (2,792 )
    Adjusted Operating Results $ 58,111     $ 55,530   $ 2,581  
               
    Adjusted EBITDA $ 156,645     $ 159,970   $ (3,325 )
                         

    Seneca’s first quarter GAAP earnings decreased $99.3 million versus the prior year. This was driven by non-cash, pre-tax impairment charges of $141.8 million ($104.6 million after-tax), the majority of which is related to a “ceiling test” impairment which required Seneca to write-down the book value of its reserves under the full cost method of accounting. For purposes of the ceiling test, the 12-month average of first day of the month pricing for NYMEX natural gas for the period ended December 31, 2024 was $2.13 per MMBtu.

    Excluding impairments, as well as the net impact of unrealized losses related to reductions in the fair value of contingent consideration received in connection with the June 2022 divestiture of Seneca’s California assets (see table above), Seneca’s adjusted operating results increased $2.6 million primarily due to higher realized natural gas prices after the impact of hedging and lower per unit operating expenses, partially offset by lower natural gas production.

    During the first quarter, Seneca produced 97.7 Bcf of natural gas, a decrease of 3.0 Bcf, or 3%, from the prior year. Compared to the preceding fourth quarter of fiscal 2024, production in the first quarter is higher by 5.8 Bcf, or 6%. Early in the quarter, Seneca curtailed approximately 1 Bcf of production due to low in-basin pricing. Production in the quarter was lower than the prior year largely due to the timing of turn in line dates for new wells between fiscal years.

    Seneca’s average realized natural gas price, after the impact of hedging and transportation costs, was $2.53 per Mcf, an increase of $0.02 per Mcf from the prior year. Seneca recorded hedging gains of $29.7 million, or an uplift of $0.30 per Mcf, during the quarter, which more than offset a $0.08 per Mcf decrease in pre-hedge natural gas price realizations versus the prior year.

    On a per unit basis, first quarter Lease Operating Expense (“LOE”) was $0.67 per Mcf, consistent with the prior year. LOE included $55.0 million ($0.56 per Mcf) for gathering and compression services from the Company’s Gathering segment to connect Seneca’s production to sales points along interstate pipelines. General and Administrative Expense (“G&A”) was $0.20 per Mcf, an increase of $0.02 per Mcf compared to the prior year driven by the combination of higher personnel costs and modestly lower production. Depreciation, Depletion and Amortization Expense (“DD&A”) was $0.65 per Mcf, a decrease of $0.06 per Mcf from the prior year largely due to ceiling test impairments recorded in the third and fourth quarters of fiscal 2024 that lowered Seneca’s full cost pool depletable base.

    Midstream Businesses

    Pipeline and Storage Segment

    The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

      Three Months Ended
      December 31,
    (in thousands) 2024   2023   Variance
    GAAP Earnings $ 32,454   $ 24,055   $ 8,399
               
    Adjusted EBITDA $ 70,953   $ 59,142   $ 11,811
                     

    The Pipeline and Storage segment’s first quarter GAAP earnings increased $8.4 million versus the prior year primarily due to higher operating revenues, partly offset by higher operation and maintenance (“O&M”) expense.

    The increase in operating revenues of $12.2 million, or 13%, was primarily attributable to an increase in Supply Corporation’s transportation and storage rates effective February 1, 2024, in accordance with its rate settlement, which was approved in fiscal 2024. O&M expense increased $1.1 million primarily due to higher pipeline integrity and labor-related costs.

    Gathering Segment

    The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system.

      Three Months Ended
      December 31,
    (in thousands) 2024   2023   Variance
    GAAP Earnings $ 27,145   $ 28,825   $ (1,680 )
               
    Adjusted EBITDA $ 51,936   $ 53,061   $ (1,125 )
                       

    The Gathering segment’s first quarter GAAP earnings decreased $1.7 million versus the prior year due to lower operating revenues and higher DD&A expense.

    Operating revenues decreased $1.5 million, or 2%, primarily due to a decrease in throughput from Seneca. DD&A expense increased $1.1 million primarily due to higher average depreciable plant in service compared to the prior year.

    Downstream Business

    Utility Segment

    The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

      Three Months Ended
      December 31,
    (in thousands) 2024   2023   Variance
    GAAP Earnings $ 32,499   $ 26,551   $ 5,948
               
    Adjusted EBITDA $ 60,665   $ 53,366   $ 7,299
                     

    The Utility segment’s first quarter GAAP earnings increased $5.9 million, or 22%, primarily as a result of the implementation of the recent rate case order in the Utility’s New York jurisdiction.

    For the quarter, customer margin (operating revenues less purchased gas sold) increased $9.1 million, primarily due to the aforementioned rate case in Distribution Corporation’s New York jurisdiction, for which a settlement became effective October 1, 2024. Other income, which was also impacted by the rate settlement, increased $4.0 million. This was in large part due to the recognition of non-service pension and post-retirement benefit income that is offset with a corresponding reduction in new base rates and as a result, has no effect on net income.

    O&M expense increased by $1.6 million, primarily driven by higher personnel costs, partially offset by a reduction related to amortizations of certain regulatory assets as a result of the New York rate settlement. DD&A expense increased $0.8 million primarily due to higher average depreciable plant in service compared to the prior year. Interest expense increased $2.3 million primarily due to a higher average amount of net borrowings.

    Corporate and All Other

    The Company’s operations that are included in Corporate and All Other generated a combined net loss of $0.3 million in the current-year first quarter, which was $1.4 million lower than combined earnings of $1.1 million in the prior-year first quarter. The reduction in earnings during the quarter was primarily driven by unrealized losses recorded on investment securities that fund non-qualified retirement benefit plans.

    EARNINGS TELECONFERENCE

    A conference call to discuss the results will be held on Thursday, January 30, 2025, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, February 6, 2025. To access the replay, dial 1-866-813-9403 and provide Access Code 245940.

    National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

    Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: impairments under the SEC’s full cost ceiling test for natural gas reserves; changes in the price of natural gas; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; the Company’s ability to complete strategic transactions; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES 

    GUIDANCE SUMMARY

    As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2025. Additional details on the Company’s forecast assumptions and business segment guidance are outlined in the table below.

    The revised adjusted earnings per share guidance range excludes certain items that impacted the comparability of adjusted operating results during the three months ended December 31, 2024, including: (1) the after tax impairment of assets, which reduced earnings by $1.14 per share; (2) after-tax unrealized losses on a derivative asset, which reduced earnings by less than $0.01 per share; and (3) after-tax unrealized losses on other investments, which reduced earnings by $0.02 per share. While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the nine months ending September 30, 2025, the amounts of these and other potential adjustments and charges, including ceiling test impairments, are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

      Previous FY 2025 Guidance   Updated FY 2025 Guidance
           
    Consolidated Adjusted Earnings per Share $5.50 to $6.00   $6.50 to $7.00
    Consolidated Effective Tax Rate ~ 24.5 – 25%   ~ 25%
           
    Capital Expenditures(Millions)      
    Exploration and Production $495 – $525   $495 – $515
    Pipeline and Storage $130 – $150   $130 – $150
    Gathering $95 – $110   $95 – $110
    Utility $165 – $185   $165 – $185
    Consolidated Capital Expenditures $885 – $970   $885 – $960
           
    Exploration and Production Segment Guidance      
           
    Commodity Price Assumptions*      
    NYMEX natural gas price $2.80 /MMBtu   $3.50 /MMBtu
    Appalachian basin spot price $2.00 /MMBtu   $2.90 /MMBtu
           
    Realized natural gas prices, after hedging ($/Mcf) $2.47 – $2.51   $2.77 – $2.81
           
    Production (Bcf) 400 to 420   410 to 425
           
    E&P Operating Costs($/Mcf)      
    LOE $0.68 – $0.70   $0.68 – $0.70
    G&A $0.18 – $0.19   $0.18 – $0.19
    DD&A $0.65 – $0.69   $0.63 – $0.67
           
    Other Business Segment Guidance(Millions)      
    Gathering Segment Revenues $245 – $255   $250 – $260
    Pipeline and Storage Segment Revenues $415 – $435   $415 – $435
           

    * Commodity price assumptions are for the remaining nine months of the fiscal year.

    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    QUARTER ENDED DECEMBER 31, 2024
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
    (Thousands of Dollars) Production   Storage   Gathering   Utility   All Other   Consolidated*
                           
    First quarter 2024 GAAP earnings $ 52,483     $ 24,055     $ 28,825     $ 26,551     $ 1,106     $ 133,020  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset   4,198                       4,198  
    Tax impact of unrealized (gain) loss on derivative asset   (1,151 )                     (1,151 )
    Unrealized (gain) loss on other investments                   (1,049 )     (1,049 )
    Tax impact of unrealized (gain) loss on other investments                   220       220  
    First quarter 2024 adjusted operating results   55,530       24,055       28,825       26,551       277       135,238  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   (6,016 )                     (6,016 )
    Higher (lower) realized natural gas prices, after hedging   1,885                       1,885  
    Midstream Revenues                      
    Higher (lower) operating revenues       9,637       (1,151 )             8,486  
    Downstream Margins***                      
    Impact of usage and weather               (325 )         (325 )
    Impact of new rates in New York               7,865           7,865  
    Operating Expenses                      
    Lower (higher) lease operating and transportation expenses   1,133                       1,133  
    Lower (higher) operating expenses       (856 )         (1,244 )         (2,100 )
    Lower (higher) depreciation / depletion   6,842           (835 )     (624 )         5,383  
    Other Income (Expense)                      
    Higher (lower) other income   (1,680 )             3,176       1,686       3,182  
    (Higher) lower interest expense               (1,785 )         (1,785 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (8 )     (488 )     443       (584 )     205       (432 )
    All other / rounding   425       106       (137 )     (531 )     (436 )     (573 )
    First quarter 2025 adjusted operating results   58,111       32,454       27,145       32,499       1,732       151,941  
    Items impacting comparability:                      
    Impairment of assets   (141,802 )                     (141,802 )
    Tax impact of impairment of assets   37,169                       37,169  
    Unrealized gain (loss) on derivative asset   (349 )                     (349 )
    Tax impact of unrealized gain (loss) on derivative asset   94                       94  
    Unrealized gain (loss) on other investments                   (2,617 )     (2,617 )
    Tax impact of unrealized gain (loss) on other investments                   550       550  
    First quarter 2025 GAAP earnings $ (46,777 )   $ 32,454     $ 27,145     $ 32,499     $ (335 )   $ 44,986  
                           
    * Amounts do not reflect intercompany eliminations.           
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
     
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    QUARTER ENDED DECEMBER 31, 2024
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
      Production   Storage   Gathering   Utility   All Other   Consolidated*
                           
    First quarter 2024 GAAP earnings per share $ 0.57     $ 0.26     $ 0.31     $ 0.29     $ 0.01     $ 1.44  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset, net of tax   0.03                       0.03  
    Unrealized (gain) loss on other investments, net of tax                   (0.01 )     (0.01 )
    First quarter 2024 adjusted operating results per share   0.60       0.26       0.31       0.29       —       1.46  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   (0.07 )                     (0.07 )
    Higher (lower) realized natural gas prices, after hedging   0.02                       0.02  
    Midstream Revenues                      
    Higher (lower) operating revenues       0.11       (0.01 )             0.10  
    Downstream Margins***                      
    Impact of usage and weather               —           —  
    Impact of new rates in New York               0.09           0.09  
    Operating Expenses                      
    Lower (higher) lease operating and transportation expenses   0.01                       0.01  
    Lower (higher) operating expenses       (0.01 )         (0.01 )         (0.02 )
    Lower (higher) depreciation / depletion   0.08           (0.01 )     (0.01 )         0.06  
    Other Income (Expense)                      
    Higher (lower) other income   (0.02 )             0.03       0.02       0.03  
    (Higher) lower interest expense               (0.02 )         (0.02 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   —       (0.01 )     —       (0.01 )     —       (0.02 )
    All other / rounding   0.02       —       0.01       —       (0.01 )     0.02  
    First quarter 2025 adjusted operating results per share   0.64       0.35       0.30       0.36       0.01       1.66  
    Items impacting comparability:                      
    Impairment of assets, net of tax   (1.14 )                     (1.14 )
    Unrealized gain (loss) on derivative asset, net of tax   —                       —  
    Unrealized gain (loss) on other investments, net of tax                   (0.02 )     (0.02 )
    Rounding   (0.01 )                     (0.01 )
    First quarter 2025 GAAP earnings per share $ (0.51 )   $ 0.35     $ 0.30     $ 0.36     $ (0.01 )   $ 0.49  
                           
    * Amounts do not reflect intercompany eliminations.           
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
     
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
           
    (Thousands of Dollars, except per share amounts)      
      Three Months Ended
      December 31,
      (Unaudited)
    SUMMARY OF OPERATIONS 2024   2023
    Operating Revenues:      
    Utility Revenues $ 228,424     $ 201,920  
    Exploration and Production and Other Revenues   248,860       254,019  
    Pipeline and Storage and Gathering Revenues   72,198       69,422  
        549,482       525,361  
    Operating Expenses:      
    Purchased Gas   65,337       56,552  
    Operation and Maintenance:      
    Utility   55,244       53,705  
    Exploration and Production and Other   33,541       34,826  
    Pipeline and Storage and Gathering   35,941       34,962  
    Property, Franchise and Other Taxes   22,056       22,416  
    Depreciation, Depletion and Amortization   109,370       115,790  
    Impairment of Assets   141,802       —  
        463,291       318,251  
           
    Operating Income   86,191       207,110  
           
    Other Income (Expense):      
    Other Income (Deductions)   7,720       3,732  
    Interest Expense on Long-Term Debt   (33,362 )     (28,462 )
    Other Interest Expense   (4,381 )     (6,273 )
           
    Income Before Income Taxes   56,168       176,107  
           
    Income Tax Expense   11,182       43,087  
           
    Net Income Available for Common Stock $ 44,986     $ 133,020  
           
    Earnings Per Common Share      
    Basic $ 0.50     $ 1.45  
    Diluted $ 0.49     $ 1.44  
           
    Weighted Average Common Shares:      
    Used in Basic Calculation   90,777,446       91,910,244  
    Used in Diluted Calculation   91,434,741       92,442,145  
                   
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)
       
      December 31,   September 30,
    (Thousands of Dollars) 2024   2024
    ASSETS      
    Property, Plant and Equipment $ 14,675,281     $ 14,524,798  
    Less – Accumulated Depreciation, Depletion and Amortization   7,393,477       7,185,593  
    Net Property, Plant and Equipment   7,281,804       7,339,205  
    Current Assets:      
    Cash and Temporary Cash Investments   48,694       38,222  
    Receivables – Net   202,821       127,222  
    Unbilled Revenue   57,117       15,521  
    Gas Stored Underground   24,725       35,055  
    Materials and Supplies – at average cost   47,820       47,670  
    Other Current Assets   83,435       92,229  
    Total Current Assets   464,612       355,919  
    Other Assets:      
    Recoverable Future Taxes   83,740       80,084  
    Unamortized Debt Expense   5,206       5,604  
    Other Regulatory Assets   106,386       108,022  
    Deferred Charges   68,952       69,662  
    Other Investments   71,493       81,705  
    Goodwill   5,476       5,476  
    Prepaid Pension and Post-Retirement Benefit Costs   185,224       180,230  
    Fair Value of Derivative Financial Instruments   20,695       87,905  
    Other   7,860       5,958  
    Total Other Assets   555,032       624,646  
    Total Assets $ 8,301,448     $ 8,319,770  
    CAPITALIZATION AND LIABILITIES      
    Capitalization:      
    Comprehensive Shareholders’ Equity      
    Common Stock, $1 Par Value Authorized – 200,000,000 Shares; Issued and      
    Outstanding – 90,612,955 Shares and 91,005,993 Shares, Respectively $ 90,613     $ 91,006  
    Paid in Capital   1,039,705       1,045,487  
    Earnings Reinvested in the Business   1,698,648       1,727,326  
    Accumulated Other Comprehensive Loss   (76,153 )     (15,476 )
    Total Comprehensive Shareholders’ Equity   2,752,813       2,848,343  
    Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs   2,189,421       2,188,243  
    Total Capitalization   4,942,234       5,036,586  
    Current and Accrued Liabilities:      
    Notes Payable to Banks and Commercial Paper   200,000       90,700  
    Current Portion of Long-Term Debt   500,000       500,000  
    Accounts Payable   120,991       165,068  
    Amounts Payable to Customers   42,587       42,720  
    Dividends Payable   46,671       46,872  
    Interest Payable on Long-Term Debt   44,376       27,247  
    Customer Advances   15,295       19,373  
    Customer Security Deposits   36,091       36,265  
    Other Accruals and Current Liabilities   172,409       162,903  
    Fair Value of Derivative Financial Instruments   20,893       4,744  
    Total Current and Accrued Liabilities   1,199,313       1,095,892  
    Other Liabilities:      
    Deferred Income Taxes   1,089,394       1,111,165  
    Taxes Refundable to Customers   303,344       305,645  
    Cost of Removal Regulatory Liability   296,660       292,477  
    Other Regulatory Liabilities   147,561       151,452  
    Other Post-Retirement Liabilities   3,476       3,511  
    Asset Retirement Obligations   199,310       203,006  
    Other Liabilities   120,156       120,036  
    Total Other Liabilities   2,159,901       2,187,292  
    Commitments and Contingencies   —       —  
    Total Capitalization and Liabilities $ 8,301,448     $ 8,319,770  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
      Three Months Ended
      December 31,
    (Thousands of Dollars) 2024   2023
           
    Operating Activities:      
    Net Income Available for Common Stock $ 44,986     $ 133,020  
    Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:      
    Impairment of Assets   141,802       —  
    Depreciation, Depletion and Amortization   109,370       115,790  
    Deferred Income Taxes   (5,385 )     38,362  
    Stock-Based Compensation   4,705       4,660  
    Other   7,146       8,041  
    Change in:      
    Receivables and Unbilled Revenue   (115,165 )     (58,459 )
    Gas Stored Underground and Materials and Supplies   10,180       6,915  
    Other Current Assets   8,814       892  
    Accounts Payable   9,703       (3,355 )
    Amounts Payable to Customers   (133 )     1,013  
    Customer Advances   (4,078 )     2,083  
    Customer Security Deposits   (174 )     2,079  
    Other Accruals and Current Liabilities   21,266       28,612  
    Other Assets   (3,892 )     (6,306 )
    Other Liabilities   (9,057 )     (2,403 )
    Net Cash Provided by Operating Activities $ 220,088     $ 270,944  
           
    Investing Activities:      
    Capital Expenditures $ (240,427 )   $ (246,938 )
    Other   5,878       (920 )
    Net Cash Used in Investing Activities $ (234,549 )   $ (247,858 )
           
    Financing Activities:      
    Changes in Notes Payable to Banks and Commercial Paper   109,300       12,500  
    Shares Repurchased Under Repurchase Plan   (33,524 )     —  
    Dividends Paid on Common Stock   (46,872 )     (45,451 )
    Net Repurchases of Common Stock Under Stock and Benefit Plans   (3,971 )     (3,897 )
    Net Cash Provided by (Used in) Financing Activities $ 24,933     $ (36,848 )
           
    Net Increase (Decrease) in Cash and Cash Equivalents   10,472       (13,762 )
    Cash and Cash Equivalents at Beginning of Period   38,222       55,447  
    Cash and Cash Equivalents at December 31 $ 48,694     $ 41,685  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
               
    UPSTREAM BUSINESS
               
               
      Three Months Ended
    (Thousands of Dollars, except per share amounts) December 31,
    EXPLORATION AND PRODUCTION SEGMENT 2024   2023   Variance
    Total Operating Revenues $ 248,860     $ 254,019     $ (5,159 )
    Operating Expenses:          
    Operation and Maintenance:          
    General and Administrative Expense   19,326       17,793       1,533  
    Lease Operating and Transportation Expense   65,640       67,074       (1,434 )
    All Other Operation and Maintenance Expense   3,867       5,544       (1,677 )
    Property, Franchise and Other Taxes   3,382       3,638       (256 )
    Depreciation, Depletion and Amortization   63,304       71,965       (8,661 )
    Impairment of Assets   141,802       —       141,802  
        297,321       166,014       131,307  
               
    Operating Income (Loss)   (48,461 )     88,005       (136,466 )
               
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Credit   37       100       (63 )
    Interest and Other Income (Deductions)   272       (1,513 )     1,785  
    Interest Expense   (15,200 )     (15,268 )     68  
    Income (Loss) Before Income Taxes   (63,352 )     71,324       (134,676 )
    Income Tax Expense (Benefit)   (16,575 )     18,841       (35,416 )
    Net Income (Loss) $ (46,777 )   $ 52,483     $ (99,260 )
    Net Income (Loss) Per Share (Diluted) $ (0.51 )   $ 0.57     $ (1.08 )
               
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
               
    MIDSTREAM BUSINESSES
               
      Three Months Ended
    (Thousands of Dollars, except per share amounts) December 31,
    PIPELINE AND STORAGE SEGMENT 2024   2023   Variance
    Revenues from External Customers $ 68,750     $ 64,826     $ 3,924  
    Intersegment Revenues   37,862       29,587       8,275  
    Total Operating Revenues   106,612       94,413       12,199  
    Operating Expenses:          
    Purchased Gas   (42 )     601       (643 )
    Operation and Maintenance   27,034       25,950       1,084  
    Property, Franchise and Other Taxes   8,667       8,720       (53 )
    Depreciation, Depletion and Amortization   18,585       18,213       372  
        54,244       53,484       760  
               
    Operating Income   52,368       40,929       11,439  
               
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Credit   952       1,257       (305 )
    Interest and Other Income   2,040       1,931       109  
    Interest Expense   (11,729 )     (11,725 )     (4 )
    Income Before Income Taxes   43,631       32,392       11,239  
    Income Tax Expense   11,177       8,337       2,840  
    Net Income $ 32,454     $ 24,055     $ 8,399  
    Net Income Per Share (Diluted) $ 0.35     $ 0.26     $ 0.09  
               
               
      Three Months Ended
      December 31,
    GATHERING SEGMENT 2024   2023   Variance
    Revenues from External Customers $ 3,448     $ 4,596     $ (1,148 )
    Intersegment Revenues   57,683       57,992       (309 )
    Total Operating Revenues   61,131       62,588       (1,457 )
    Operating Expenses:          
    Operation and Maintenance   9,429       9,504       (75 )
    Property, Franchise and Other Taxes   (234 )     23       (257 )
    Depreciation, Depletion and Amortization   10,515       9,458       1,057  
        19,710       18,985       725  
               
    Operating Income   41,421       43,603       (2,182 )
               
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Credit   —       9       (9 )
    Interest and Other Income   58       73       (15 )
    Interest Expense   (4,210 )     (3,729 )     (481 )
    Income Before Income Taxes   37,269       39,956       (2,687 )
    Income Tax Expense   10,124       11,131       (1,007 )
    Net Income $ 27,145     $ 28,825     $ (1,680 )
    Net Income Per Share (Diluted) $ 0.30     $ 0.31     $ (0.01 )
               
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
               
    DOWNSTREAM BUSINESS
               
               
      Three Months Ended
    (Thousands of Dollars, except per share amounts) December 31,
    UTILITY SEGMENT 2024   2023   Variance
    Revenues from External Customers $ 228,424     $ 201,920     $ 26,504  
    Intersegment Revenues   85       87       (2 )
    Total Operating Revenues   228,509       202,007       26,502  
    Operating Expenses:          
    Purchased Gas   101,473       84,051       17,422  
    Operation and Maintenance   56,260       54,684       1,576  
    Property, Franchise and Other Taxes   10,111       9,906       205  
    Depreciation, Depletion and Amortization   16,827       16,037       790  
        184,671       164,678       19,993  
               
    Operating Income   43,838       37,329       6,509  
               
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Credit   5,871       470       5,401  
    Interest and Other Income   528       1,911       (1,383 )
    Interest Expense   (10,716 )     (8,457 )     (2,259 )
    Income Before Income Taxes   39,521       31,253       8,268  
    Income Tax Expense   7,022       4,702       2,320  
    Net Income $ 32,499     $ 26,551     $ 5,948  
    Net Income Per Share (Diluted) $ 0.36     $ 0.29     $ 0.07  
               
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
               
      Three Months Ended
    (Thousands of Dollars, except per share amounts) December 31,
    ALL OTHER 2024   2023   Variance
    Total Operating Revenues $ —     $ —     $ —  
    Operating Expenses:          
    Operation and Maintenance   —       —       —  
        —       —       —  
               
    Operating Income   —       —       —  
    Other Income (Expense):          
    Interest and Other Income (Deductions)   (136 )     (77 )     (59 )
    Interest Expense   (116 )     (81 )     (35 )
    Loss before Income Taxes   (252 )     (158 )     (94 )
    Income Tax Benefit   (59 )     (37 )     (22 )
    Net Loss $ (193 )   $ (121 )   $ (72 )
    Net Loss Per Share (Diluted) $ —     $ —     $ —  
       
      Three Months Ended
      December 31,
    CORPORATE 2024   2023   Variance
    Revenues from External Customers $ —     $ —     $ —  
    Intersegment Revenues   1,341       1,285       56  
    Total Operating Revenues   1,341       1,285       56  
    Operating Expenses:          
    Operation and Maintenance   4,047       3,795       252  
    Property, Franchise and Other Taxes   130       129       1  
    Depreciation, Depletion and Amortization   139       117       22  
        4,316       4,041       275  
               
    Operating Loss   (2,975 )     (2,756 )     (219 )
    Other Income (Expense):          
    Non-Service Pension and Post-Retirement Benefit Costs   (212 )     (387 )     175  
    Interest and Other Income   41,061       41,030       31  
    Interest Expense on Long-Term Debt   (33,362 )     (28,462 )     (4,900 )
    Other Interest Expense   (5,161 )     (8,085 )     2,924  
    Income (Loss) before Income Taxes   (649 )     1,340       (1,989 )
    Income Tax Expense (Benefit)   (507 )     113       (620 )
    Net Income (Loss) $ (142 )   $ 1,227     $ (1,369 )
    Net Income (Loss) Per Share (Diluted) $ (0.01 )   $ 0.01     $ (0.02 )
               
               
      Three Months Ended
      December 31,
    INTERSEGMENT ELIMINATIONS 2024   2023   Variance
    Intersegment Revenues $ (96,971 )   $ (88,951 )   $ (8,020 )
    Operating Expenses:          
    Purchased Gas   (36,094 )     (28,100 )     (7,994 )
    Operation and Maintenance   (60,877 )     (60,851 )     (26 )
        (96,971 )     (88,951 )     (8,020 )
    Operating Income   —       —       —  
    Other Income (Expense):          
    Interest and Other Deductions   (42,751 )     (41,072 )     (1,679 )
    Interest Expense   42,751       41,072       1,679  
    Net Income $ —     $ —     $ —  
    Net Income Per Share (Diluted) $ —     $ —     $ —  
                           
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    SEGMENT INFORMATION (Continued)
    (Thousands of Dollars)
               
      Three Months Ended
      December 31,
      (Unaudited)
              Increase
      2024   2023   (Decrease)
               
    Capital Expenditures:          
    Exploration and Production $ 122,602 (1)(2) $ 160,957 (3)(4) $ (38,355 )
    Pipeline and Storage   19,792 (1)(2)   24,554 (3)(4)   (4,762 )
    Gathering   13,027 (1)(2)   19,569 (3)(4)   (6,542 )
    Utility   36,430 (1)(2)   30,510 (3)(4)   5,920  
    Total Reportable Segments   191,851     235,590     (43,739 )
    All Other   —     —     —  
    Corporate   204     61     143  
    Total Capital Expenditures $ 192,055   $ 235,651   $ (43,596 )
                       

     

    (1) Capital expenditures for the quarter ended December 31, 2024, include accounts payable and accrued liabilities related to capital expenditures of $56.3 million, $4.4 million, $6.0 million, and $4.9 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at December 31, 2024, since they represent non-cash investing activities at that date.
       
    (2) Capital expenditures for the quarter ended December 31, 2024, exclude capital expenditures of $63.3 million, $14.4 million, $21.7 million and $20.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2024 and paid during the quarter ended December 31, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2024, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at December 31, 2024.
       
    (3) Capital expenditures for the quarter ended December 31, 2023, include accounts payable and accrued liabilities related to capital expenditures of $74.9 million, $5.5 million, $11.1 million, and $6.4 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at December 31, 2023, since they represented non-cash investing activities at that date.
       
    (4) Capital expenditures for the quarter ended December 31, 2023, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2023 and paid during the quarter ended December 31, 2023. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at December 31, 2023.
       
    DEGREE DAYS                  
                  Percent Colder
                  (Warmer) Than:
    Three Months Ended December 31, Normal   2024   2023   Normal (1)   Last Year (1)
    Buffalo, NY 2,253   1,884   1,858   (16.4)   1.4
    Erie, PA 1,894   1,697   1,664   (10.4)   2.0
                       
    (1) Percents compare actual 2024 degree days to normal degree days and actual 2024 degree days to actual 2023 degree days.
                       
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
    EXPLORATION AND PRODUCTION INFORMATION
               
               
      Three Months Ended
      December 31,
              Increase
      2024   2023   (Decrease)
               
    Gas Production/Prices:          
    Production (MMcf)          
    Appalachia   97,717     100,757     (3,040 )
               
    Average Prices (Per Mcf)          
    Weighted Average $ 2.23   $ 2.31   $ (0.08 )
    Weighted Average after Hedging   2.53     2.51     0.02  
               
    Selected Operating Performance Statistics:          
    General and Administrative Expense per Mcf (1) $ 0.20   $ 0.18   $ 0.02  
    Lease Operating and Transportation Expense per Mcf (1)(2) $ 0.67   $ 0.67   $ —  
    Depreciation, Depletion and Amortization per Mcf (1) $ 0.65   $ 0.71   $ (0.06 )
               
    (1)  Refer to page 13 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
     
    (2)  Amounts include transportation expense of $0.57 and $0.56 per Mcf for the three months ended December 31, 2024 and December 31, 2023, respectively.
               
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
               
               
               
    Pipeline and Storage Throughput – (millions of cubic feet – MMcf)
               
      Three Months Ended
      December 31,
              Increase
      2024   2023   (Decrease)
    Firm Transportation – Affiliated 31,870   31,495   375  
    Firm Transportation – Non-Affiliated 171,012   168,606   2,406  
    Interruptible Transportation 62   118   (56 )
      202,944   200,219   2,725  
               
    Gathering Volume – (MMcf)          
      Three Months Ended
      December 31,
              Increase
      2024   2023   (Decrease)
    Gathered Volume 120,961   124,261   (3,300 )
               
               
    Utility Throughput – (MMcf)          
      Three Months Ended
      December 31,
              Increase
      2024   2023   (Decrease)
    Retail Sales:          
    Residential Sales 18,476   17,982   494  
    Commercial Sales 2,919   2,800   119  
    Industrial Sales 199   138   61  
      21,594   20,920   674  
    Transportation 16,942   17,528   (586 )
      38,536   38,448   88  
               

    NATIONAL FUEL GAS COMPANY 
    AND SUBSIDIARIES 
    NON-GAAP FINANCIAL MEASURES

    In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted operating results, adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.

    Management defines adjusted operating results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel’s reported GAAP earnings to adjusted operating results for the three months ended December 31, 2024 and 2023:

      Three Months Ended
      December 31,
    (in thousands except per share amounts) 2024   2023
    Reported GAAP Earnings $ 44,986     $ 133,020  
    Items impacting comparability:      
    Impairment of assets (E&P)   141,802       —  
    Tax impact of impairment of assets   (37,169 )     —  
    Unrealized (gain) loss on derivative asset (E&P)   349       4,198  
    Tax impact of unrealized (gain) loss on derivative asset   (94 )     (1,151 )
    Unrealized (gain) loss on other investments (Corporate / All Other)   2,617       (1,049 )
    Tax impact of unrealized (gain) loss on other investments   (550 )     220  
    Adjusted Operating Results $ 151,941     $ 135,238  
           
    Reported GAAP Earnings Per Share $ 0.49     $ 1.44  
    Items impacting comparability:      
    Impairment of assets, net of tax (E&P)   1.14       —  
    Unrealized (gain) loss on derivative asset, net of tax (E&P)   —       0.03  
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)   0.02       (0.01 )
    Rounding   0.01       —  
    Adjusted Operating Results Per Share $ 1.66     $ 1.46  
                   

    Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel’s reported GAAP earnings to adjusted EBITDA for the three months ended December 31, 2024 and 2023:

      Three Months Ended
      December 31,
    (in thousands) 2024   2023
    Reported GAAP Earnings $ 44,986     $ 133,020  
    Depreciation, Depletion and Amortization   109,370       115,790  
    Other (Income) Deductions   (7,720 )     (3,732 )
    Interest Expense   37,743       34,735  
    Income Taxes   11,182       43,087  
    Impairment of Assets   141,802       —  
    Adjusted EBITDA $ 337,363     $ 322,900  
           
    Adjusted EBITDA by Segment      
    Pipeline and Storage Adjusted EBITDA $ 70,953     $ 59,142  
    Gathering Adjusted EBITDA   51,936       53,061  
    Total Midstream Businesses Adjusted EBITDA   122,889       112,203  
    Exploration and Production Adjusted EBITDA   156,645       159,970  
    Utility Adjusted EBITDA   60,665       53,366  
    Corporate and All Other Adjusted EBITDA   (2,836 )     (2,639 )
    Total Adjusted EBITDA $ 337,363     $ 322,900  
                   
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES
    SEGMENT ADJUSTED EBITDA
       
      Three Months Ended
      December 31,
    (in thousands) 2024   2023
    Exploration and Production Segment      
    Reported GAAP Earnings $ (46,777 )   $ 52,483  
    Depreciation, Depletion and Amortization   63,304       71,965  
    Other (Income) Deductions   (309 )     1,413  
    Interest Expense   15,200       15,268  
    Income Taxes   (16,575 )     18,841  
    Impairment of Assets   141,802       —  
    Adjusted EBITDA $ 156,645     $ 159,970  
           
    Pipeline and Storage Segment      
    Reported GAAP Earnings $ 32,454     $ 24,055  
    Depreciation, Depletion and Amortization   18,585       18,213  
    Other (Income) Deductions   (2,992 )     (3,188 )
    Interest Expense   11,729       11,725  
    Income Taxes   11,177       8,337  
    Adjusted EBITDA $ 70,953     $ 59,142  
           
    Gathering Segment      
    Reported GAAP Earnings $ 27,145     $ 28,825  
    Depreciation, Depletion and Amortization   10,515       9,458  
    Other (Income) Deductions   (58 )     (82 )
    Interest Expense   4,210       3,729  
    Income Taxes   10,124       11,131  
    Adjusted EBITDA $ 51,936     $ 53,061  
           
    Utility Segment      
    Reported GAAP Earnings $ 32,499     $ 26,551  
    Depreciation, Depletion and Amortization   16,827       16,037  
    Other (Income) Deductions   (6,399 )     (2,381 )
    Interest Expense   10,716       8,457  
    Income Taxes   7,022       4,702  
    Adjusted EBITDA $ 60,665     $ 53,366  
           
    Corporate and All Other      
    Reported GAAP Earnings $ (335 )   $ 1,106  
    Depreciation, Depletion and Amortization   139       117  
    Other (Income) Deductions   2,038       506  
    Interest Expense   (4,112 )     (4,444 )
    Income Taxes   (566 )     76  
    Adjusted EBITDA $ (2,836 )   $ (2,639 )
                   

    Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.

    The MIL Network –

  • MIL-OSI USA: At Hearing, Warren Slams RFK Jr. for Dangerous Conflicts of Interest, Profiting From Anti-Vaccine Conspiracies

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    January 29, 2025
    Kennedy answers raise fresh questions about his ethics agreement
    Kennedy could profit from anti-vaccine lawsuits he can influence as Health Secretary 
    Warren: “Kennedy can kill off access to vaccines and make millions of dollars while he does it…Kids might die, but Robert Kennedy will keep cashing in.”
    Round 1 Questioning (YouTube) | Round 2 Questioning (YouTube)
    Washington, D.C. – At a hearing of the Senate Finance Committee, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs and member of the Senate Finance Committee, questioned Mr. Robert F. Kennedy Jr., nominee for Secretary of Health and Human Services (HHS), about his dangerous conflicts of interest and record of profiting from anti-vaccine conspiracies. 
    Mr. Kennedy has made nearly $2.5 million in referral fees from the law firm Wisner Baum, in connection with lawsuits against vaccine makers. Mr. Kennedy receives a 10% contingency fee in these cases if the plaintiffs win, and his ethics agreement indicates he will continue to receive these payments even if he is confirmed as HHS Secretary. However, during his confirmation hearing, Mr. Kennedy initially appeared to agree to not accept any compensation from lawsuits against drug companies while serving as HHS Secretary, stating, “Well, I will certainly commit to that while I’m Secretary.” He then backtracked and did not clearly commit to ending this arrangement — through which he can profit off of anti-vaccine lawsuits even if he is confirmed as HHS Secretary. 
    If Mr. Kennedy does maintain his financial stake in anti-vaccine lawsuits, he will have a serious conflict of interest. Senator Warren highlighted seven ways Mr. Kennedy could benefit financially from anti-vaccine lawsuits and increase his payouts, including: 
    Publishing anti-vaccine conspiracies on government letterhead to influence juries;
    Appointing anti-vaccine people to the CDC vaccine panel;
    Opening vaccine manufacturers to lawsuits by removing vaccines from special compensation programs;
    Making more injuries eligible for compensation even with no causal evidence;
    Change vaccine court processes to make it easier to bring junk lawsuits to get vaccines pulled from the market; and 
    Turn over FDA data to his connections at law firm Wisner Baum, for their use in lawsuits. 
    Senator Warren also asked Mr. Kennedy if he would take responsibility for more than 80 deaths in Samoa after Mr. Kennedy spread anti-vaccine conspiracies in the country. Mr. Kennedy refused to take responsibility. 
    Transcript: Hearing to consider the nomination of Robert F. Kennedy, Jr., of California, to be Secretary of Health and Human ServicesSenate Committee on Finance January 29, 2025
    Senator Elizabeth Warren: Thank you, Mr. Chairman. Mr. Kennedy, I want to start with something that I think you and I agree on: Big Pharma has too much power in Washington. You’ve said that, President Trump asked you to, “clean up corruption and conflicts.” Sounds great. You’ve said you will “slam shut the revolving door” between government agencies and the companies they regulate. That also sounds great.
    So here’s an easy question: will you commit that when you leave this job, you will not accept compensation from a drug company, a medical device company, a hospital system, or a health insurer for at least four years—including as a lobbyist or board member? 
    Mr. Robert F. Kennedy, Jr., nominee for Secretary of Health and Human Services: Can you just repeat the last part of the question? Can I commit to what?
    Senator Warren: Sure, you’re not going to take money from drug companies in any way shape or form?
    Mr. Kennedy: Who? Me? 
    Senator Warren: Yes. You. 
    Mr. Kennedy: I’m happy to commit to that.
    Senator Warren: Good, that’s what I figured. I said, it’s an easy question to start with. And I think you’re right on this question – 
    Mr. Kennedy: I don’t think any of them want to give me any money, by the way.
    Senator Warren: Let’s keep going. You are right to say yes because every American has the right to know that every decision you make as our number one health officer is to help them—not to make money for yourself in the future.
    So, I want to talk more about money. I’m looking at your paperwork right now. In the past two years, you’ve raked in $2.5 million from a law firm called Wisner Baum. You go online, you do commercials to encourage people to sign up with Wisner Baum to join lawsuits against vaccine makers. And for everyone who signs up, you personally get paid, and if they win their case, you get 10% of what they win. So, if you bring in someone who gets $10 million, you walk away with a million dollars. 
    Now, you just said that you want the American people to know that you cannot be bought, your decisions won’t depend on how much money you could make in the future, you won’t go work for a drug company after you leave HHS. But you and I both know there’s another way to make money. 
    So, Mr. Kennedy, will you also agree that you also won’t take any compensation from any lawsuits against drug companies while you are Secretary and for four years afterwards?
    Mr. Kennedy: Well, I will certainly commit to that while I’m Secretary. But I do want to clarify something because you make me sound like a shill. I put together that case. I did the science day presentation to the judge on that case to get it into court, the docket hearing – 
    Senator Warren: Mr. Kennedy, it’s just a really simple question. You’ve taken in $2.5 million, I want to know if you will commit right now that not only will you not go to work for drug companies, you won’t go to work suing the drug companies and taking your rake out of that while you are Secretary and for four years after.
    Mr. Kennedy: I will commit to not taking any fees from drug companies while I’m Secretary. I –  
    Senator Warren: No, I’m asking about fees from suing drug companies. Will you agree not to do that?
    Mr. Kennedy: You are asking me to not sue drug companies, and I’m not going to agree to that – 
    Senator Warren: No. You can sue drug companies as much as you want. 
    Mr. Kennedy: I am not going to agree to not sue drug companies or anybody.
    Senator Warren: So, let’s do a quick count here of how, as Secretary of HHS, if you get confirmed, you could influence every one of those lawsuits. Well, let me start the list.
    You could publish your anti-vaccine conspiracies, but this time on U.S. government letterhead – something a jury might be impressed by. 
    Mr. Kennedy: I don’t understand that.
    Senator Warren: You could appoint people to the CDC vaccine panel who share your anti-vax views and let them do your dirty work.  
    You could tell the CDC vaccine panel to remove a particular vaccine from the vaccine schedule.
    You could remove vaccines from special compensation programs, which would open up manufacturers to mass torts.
    You could make more injuries eligible for compensation even if there’s no causal evidence. 
    You could change vaccine court processes to make it easier to bring junk lawsuits.
    You could turn over FDA data to your friends at the law firm, and they could use it however it benefitted them.
    You could change vaccine labelling.
    You could change vaccine information rules. 
    You could change which claims are compensated in the vaccine injury compensation program. 
    There’s a lot of ways you can influence those future lawsuits and pending lawsuits while you are Secretary of HHS, and I’m asking you to commit right now that you will not take a financial stake in every one of those lawsuits so that what you do as Secretary will also benefit you financially down the line.
    Mr. Kennedy: I will comply with all the ethical guidelines. 
    Senator Warren: That’s not the question. You and I—you have said repeatedly—
    Mr. Kennedy: You are asking me—Senator, you’re asking me not to sue vaccine—pharmaceutical companies.
    Senator Warren: No, I am not. My question is: stop enriching yourself.
    Look, no one should be fooled here. As Secretary of HHS, Robert Kennedy will have the power to undercut vaccines and vaccine manufacturing across our country. And for all his talk about “follow the science” and his promise that he won’t interfere with those of us who want to vaccinate our kids, the bottom line is the same: Kennedy can kill off access to vaccines and make millions of dollars while he does it. 
    Kids might die, but Robert Kennedy can keep cashing in. 
    Mr. Kennedy: Senator, I support vaccines, I will—I support the childhood schedule, I will do that. The only thing I want is good science, and that’s it.
    Senator Warren: How about then saying you won’t make money off what you do as Secretary of HHS?
    Chair Mike Crapo: Before we go to Senator Tillis, I think it would be important for me to make it very clear that Mr. Kennedy has gone through the same Office of Government Ethics process as every single other nominee in the Finance Committee this year and in previous administrations. In addition to listing his assets, including the items that you’ve identified, he has signed an ethics letter that has been reviewed by the Office of Government Ethics concerning any possible conflict in light of its functions and the nominee’s proposed duties. And we have a letter from the Office of Government Ethics that he has complied completely with all applicable laws and regulations governing conflicts of interest.
    Senator Warren: Mr. Chairman, point of information here: have we had a single nominee come through who’s made two and a half million dollars off suing one of the entities that it would be regulating and plans to keep getting a take of every lawsuit in the future? Have we had that before?
    Chair Crapo: I haven’t reviewed the past documentation of every other nominee’s financial interests, and so no. But I know that every single time we get a nominee, their financial interests are attacked. That’s why we have the Office of Government Ethics. That’s why they’ve reviewed everything that’s in his record, and that’s why he has even—I think, and I don’t know that I want to ask him to get into it—but he has listed his assets and has gone through a discussion of the responsibilities under our ethics laws and is complied with all of those requirements.
    Round 2
    Senator Warren: Thank you, Mr. Chairman. Mr. Kennedy, I want to ask about your role in a 2019 measles outbreak in Samoa. In July 2018, two children died immediately after receiving a measles vaccine that nurses had mistakenly mixed with a muscle relaxant. The nurses get charged with manslaughter, but the vaccination rates go down. 
    I asked you about this in my office. You told me flatly that your visit to Samoa had nothing to do with vaccinations. We now know that’s not true. I have the documentation. You met with the Prime Minister, you talked about vaccinations. You met with an anti-vaccine influencer who described the meeting as “profoundly monumental for this movement.” 
    So what happens? Vaccinations go down. There’s a measles outbreak, and children start dying, but you double down. You didn’t give up just four days after the Prime Minister declared a state of emergency. 16 people already dead. You sent a letter to him promoting the idea that the children had died not from measles but from a “defective vaccine.” You launched the idea that a measles vaccine caused these deaths. 
    You are a very influential man. In fact, you are called the leader of the disinformation dozen. UNICEF and WHO, the World Health Organization, investigated this. They say the claims are false. It is not biologically possible what you claimed, and yet, ultimately, more than 70 people died because they didn’t get vaccines. 
    So my question is, do you accept even a scintilla, just even a sliver of responsibility for the drop in vaccinations and the subsequent deaths of more than 70 people? Anything you’d do differently?
    Mr. Kennedy: No, absolutely not. After the—there were two incidents in which children died in 2015 and again in 2018. 2015, it was from the measles vaccine. That’s what the New Zealand General Hospital found. The government of Samoa banned the measles vaccine after 2018. I arrived in July of the next year, after the ban had been in place for a year, and the measles—
    Senator Warren: Mr. Chairman, understanding that you wanted to hold this to a minute, and then I don’t get to present all the facts and documentation I’ve got. How about if we just decide to make entries for the record on exactly what the record shows about Mr. Kennedy’s participation? And I think he’s answered the yes or no question. He takes no responsibility. 
    Chair Crapo: Senator Warren, we will do that. And Mr. Kennedy, and to all the senators, every senator knows that following this hearing, they will be able to ask you questions off the record, and you will be able to put answers back onto the record. So please give that answer. I apologize that we’re shutting you off for giving a full response right now.

    MIL OSI USA News –

  • MIL-OSI Economics: Microsoft Cloud and AI strength drives second quarter results

    Source: Microsoft

    Headline: Microsoft Cloud and AI strength drives second quarter results

    Microsoft Cloud and AI Strength Drives Second Quarter Results

    REDMOND, Wash. — January 29, 2025 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2024, as compared to the corresponding period of last fiscal year:

    ·        Revenue was $69.6 billion and increased 12%

    ·        Operating income was $31.7 billion and increased 17% (up 16% in constant currency)

    ·        Net income was $24.1 billion and increased 10%

    ·        Diluted earnings per share was $3.23 and increased 10%

    “We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead,” said Satya Nadella, chairman and chief executive officer of Microsoft. “Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.”

    “This quarter Microsoft Cloud revenue was $40.9 billion, up 21% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. ”We remain committed to balancing operational discipline with continued investments in our cloud and AI infrastructure.”

    Business Highlights

    Revenue in Productivity and Business Processes was $29.4 billion and increased 14% (up 13% in constant currency), with the following business highlights:

    ·        Microsoft 365 Commercial products and cloud services revenue increased 15% driven by Microsoft 365 Commercial cloud revenue growth of 16% (up 15% in constant currency)

    ·        Microsoft 365 Consumer products and cloud services revenue increased 8% driven by Microsoft 365 Consumer cloud revenue growth of 8%

    ·        LinkedIn revenue increased 9%

    ·        Dynamics products and cloud services revenue increased 15% (up 14% in constant currency) driven by Dynamics 365 revenue growth of 19% (up 18% in constant currency)

    Revenue in Intelligent Cloud was $25.5 billion and increased 19%, with the following business highlights:

    ·        Server products and cloud services revenue increased 21% driven by Azure and other cloud services revenue growth of 31%

    Revenue in More Personal Computing was $14.7 billion and was relatively unchanged, with the following business highlights:

    ·        Windows OEM and Devices revenue increased 4%

    ·        Xbox content and services revenue increased 2%

    ·        Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 20% in constant currency)

    Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases in the second quarter of fiscal year 2025.

    Business Outlook

    Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

    Quarterly Highlights, Product Releases, and Enhancements 

    Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

    Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

    Environmental, Social, and Governance (ESG)

    To learn more about Microsoft’s corporate governance and our environmental and social practices, please visit our investor relations Board and ESG website and reporting at Microsoft.com/transparency. 

    Webcast Details

    Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Brett Iversen, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on January 29, 2026.

    Constant Currency

    Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

    Financial Performance Constant Currency Reconciliation

     

    Three Months Ended December 31,

     ($ in millions, except per share amounts)

    Revenue

    Operating Income

    Net Income

    Diluted Earnings per Share

    2023 As Reported (GAAP)

    $62,020

    $27,032

    $21,870

    $2.93

    2024 As Reported (GAAP)

    $69,632

    $31,653

    $24,108

    $3.23

    Percentage Change Y/Y (GAAP)

    12%

    17%

    10%

    10%

    Constant Currency Impact

    $171

    $206

    $14

    $0.00

    Percentage Change Y/Y Constant Currency

    12%

    16%

    10%

    10%

     

    Segment Revenue Constant Currency Reconciliation

     

    Three Months Ended December 31,

     ($ in millions)

    Productivity and Business Processes

    Intelligent Cloud

    More Personal Computing

    2023 As Reported (GAAP)

    $25,854

    $21,525

    $14,641

    2024 As Reported (GAAP)

    $29,437

    $25,544

    $14,651

    Percentage Change Y/Y (GAAP)

    14%

    19%

    0%

    Constant Currency Impact

    $142

    $(22)

    $51

    Percentage Change Y/Y Constant Currency

    13%

    19%

    0%

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

    Selected Product and Service Revenue Constant Currency Reconciliation        

     

    Three Months Ended December 31, 2024

    Percentage Change Y/Y (GAAP)

    Constant Currency Impact

    Percentage Change Y/Y Constant Currency

    Microsoft Cloud

    21%

    0%

    21%

    Microsoft 365 Commercial products and cloud services

    15%

    0%

    15%

    Microsoft 365 Commercial cloud

    16%

    (1)%

    15%

    Microsoft 365 Consumer products and cloud services

    8%

    0%

    8%

    Microsoft 365 Consumer cloud

    8%

    0%

    8%

    LinkedIn

    9%

    0%

    9%

    Dynamics products and cloud services

    15%

    (1)%

    14%

    Dynamics 365

    19%

    (1)%

    18%

    Server products and cloud services

    21%

    0%

    21%

    Azure and other cloud services

    31%

    0%

    31%

    Windows OEM and Devices

    4%

    0%

    4%

    Xbox content and services

    2%

    0%

    2%

    Search and news advertising excluding traffic acquisition costs

    21%

    (1)%

    20%

     

    About Microsoft

    Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

    Forward-Looking Statements

    Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

    ·        intense competition in all of our markets that may adversely affect our results of operations;

    ·        focus on cloud-based and AI services presenting execution and competitive risks;

    ·        significant investments in products and services that may not achieve expected returns;

    ·        acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;

    ·        impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

    ·        cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

    ·        disclosure and misuse of personal data that could cause liability and harm to our reputation;

    ·        the possibility that we may not be able to protect information stored in our products and services from use by others;

    ·        abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;

    ·        products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

    ·        issues about the use of AI in our offerings that may result in reputational or competitive harm, or legal liability;

    ·        excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

    ·        supply or quality problems;

    ·        government enforcement under competition laws and new market regulation may limit how we design and market our products;

    ·        potential consequences of trade and anti-corruption laws;

    ·        potential consequences of existing and increasing legal and regulatory requirements;

    ·        laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;

    ·        claims against us that may result in adverse outcomes in legal disputes;

    ·        uncertainties relating to our business with government customers;

    ·        additional tax liabilities;

    ·        sustainability regulations and expectations that may expose us to increased costs and legal and reputational risk;

    ·        an inability to protect and utilize our intellectual property may harm our business and operating results;

    ·        claims that Microsoft has infringed the intellectual property rights of others;

    ·        damage to our reputation or our brands that may harm our business and results of operations;

    ·        adverse economic or market conditions that may harm our business;

    ·        catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business;

    ·        exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange; and

    ·        the dependence of our business on our ability to attract and retain talented employees.

    For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

    All information in this release is as of December 31, 2024. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

    For more information, press only:

    Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

    For more information, financial analysts and investors only:

    Brett Iversen, Vice President, Investor Relations, (425) 706-4400

    Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.


     

    MICROSOFT CORPORATION

    INCOME STATEMENTS

    (In millions, except per share amounts) (Unaudited)

    Three Months Ended

     December 31,

    Six Months Ended

     December 31,

     

    2024

     

    2023

     

    2024

     

    2023

    Revenue:

    Product

     $16,219

     $18,941

     $31,491

     $34,476

    Service and other

    53,413

     

    43,079

     

    103,726

     

    84,061

    Total revenue

    69,632

     

    62,020

     

    135,217

     

    118,537

    Cost of revenue:

    Product

    3,856

    5,964

    7,150

    9,495

    Service and other

    17,943

     

    13,659

     

    34,748

     

    26,430

    Total cost of revenue

    21,799

     

    19,623

     

    41,898

     

    35,925

    Gross margin

    47,833

    42,397

    93,319

    82,612

    Research and development

    7,917

    7,142

    15,461

    13,801

    Sales and marketing

    6,440

    6,246

    12,157

    11,433

    General and administrative

    1,823

    1,977

    3,496

    3,451

    Operating income

    31,653

     

    27,032

     

    62,205

     

    53,927

    Other expense, net

    (2,288)

     

    (506)

     

    (2,571)

     

    (117)

    Income before income taxes

    29,365

    26,526

    59,634

    53,810

    Provision for income taxes

    5,257

     

    4,656

     

    10,859

     

    9,649

    Net income

     $24,108

     

     $21,870

     

     $48,775

     

     $44,161

    Earnings per share:

    Basic

     $3.24

     $2.94

     $6.56

     $5.94

    Diluted

     $3.23

     $2.93

     $6.53

     $5.92

    Weighted average shares outstanding:

    Basic

    7,435

    7,432

    7,434

    7,431

    Diluted

    7,468

     

    7,468

     

    7,469

     

    7,465

     


     

    COMPREHENSIVE INCOME STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     December 31,

    Six Months Ended

     December 31,

     

    2024

     

    2023

     

    2024

     

    2023

    Net income

     $24,108

     

     $21,870

     

     $48,775

     

     $44,161

    Other comprehensive income (loss), net of tax:

    Net change related to derivatives

    34

    (3)

    24

    18

    Net change related to investments

    (434)

    1,331

    680

    1,071

    Translation adjustments and other

    (1,034)

     

    660

     

    (730)

     

    305

    Other comprehensive income (loss)

    (1,434)

     

    1,988

     

    (26)

     

    1,394

    Comprehensive income

     $22,674

     

     $23,858

     

     $48,749

     

     $45,555

     


     

    BALANCE SHEETS

    (In millions) (Unaudited)

     

    December 31,

    2024

    June 30,

     2024

    Assets

    Current assets:

    Cash and cash equivalents

     $17,482

     $18,315

    Short-term investments

    54,073

    57,228

    Total cash, cash equivalents, and short-term investments

    71,555

    75,543

    Accounts receivable, net of allowance for doubtful accounts of $662 and $830

    48,188

    56,924

    Inventories

    909

    1,246

    Other current assets

    26,428

    26,021

    Total current assets

    147,080

    159,734

    Property and equipment, net of accumulated depreciation of $82,820 and $76,421

    166,902

    135,591

    Operating lease right-of-use assets

    22,816

    18,961

    Equity and other investments

    15,581

    14,600

    Goodwill

    119,191

    119,220

    Intangible assets, net

    25,385

    27,597

    Other long-term assets

    36,943

    36,460

    Total assets

     $533,898

     $512,163

    Liabilities and stockholders’ equity

    Current liabilities:

    Accounts payable

     $22,608

     $21,996

    Short-term debt

    0

    6,693

    Current portion of long-term debt

    5,248

    2,249

    Accrued compensation

    9,176

    12,564

    Short-term income taxes

    6,056

    5,017

    Short-term unearned revenue

    45,508

    57,582

    Other current liabilities

    20,286

    19,185

    Total current liabilities

    108,882

    125,286

    Long-term debt

    39,722

    42,688

    Long-term income taxes

    24,389

    27,931

    Long-term unearned revenue

    2,537

    2,602

    Deferred income taxes

    2,513

    2,618

    Operating lease liabilities

    17,254

    15,497

    Other long-term liabilities

    35,906

    27,064

    Total liabilities

    231,203

    243,686

    Commitments and contingencies

    Stockholders’ equity:

    Common stock and paid-in capital – shares authorized 24,000; outstanding 7,435 and 7,434

    104,829

    100,923

    Retained earnings

    203,482

    173,144

    Accumulated other comprehensive loss

    (5,616)

    (5,590)

    Total stockholders’ equity

    302,695

    268,477

    Total liabilities and stockholders’ equity

     $533,898

     $512,163

     


     

    CASH FLOWS STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     December 31,

    Six Months Ended

     December 31,

     

    2024

     

    2023

     

    2024

     

    2023

    Operations

    Net income

     $24,108

     $21,870

     $48,775

     $44,161

    Adjustments to reconcile net income to net cash from operations:

    Depreciation, amortization, and other

    6,827

    5,959

    14,210

    9,880

    Stock-based compensation expense

    3,089

    2,828

    5,921

    5,335

    Net recognized losses on investments and derivatives

    976

    198

    851

    212

    Deferred income taxes

    (1,158)

    (1,702)

    (2,591)

    (2,270)

    Changes in operating assets and liabilities:

    Accounts receivable

    (5,978)

    (2,951)

    8,059

    8,083

    Inventories

    711

    1,474

    338

    969

    Other current assets

    (353)

    725

    (435)

    (71)

    Other long-term assets

    (1,089)

    (1,427)

    (2,850)

    (3,440)

    Accounts payable

    958

    (2,521)

    42

    (1,307)

    Unearned revenue

    (6,338)

    (5,538)

    (11,891)

    (9,664)

    Income taxes

    (3,395)

    (1,554)

    (2,379)

    (129)

    Other current liabilities

    3,217

    1,518

    (2,262)

    (2,588)

    Other long-term liabilities

    716

     

    (26)

     

    683

     

    265

    Net cash from operations

    22,291

     

    18,853

     

    56,471

     

    49,436

    Financing

    Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net

    0

    (8,490)

    (5,746)

    10,202

    Proceeds from issuance of debt

    0

    10,773

    0

    17,846

    Repayments of debt

    0

    (2,916)

    (966)

    (4,416)

    Common stock issued

    256

    261

    962

    946

    Common stock repurchased

    (4,986)

    (4,000)

    (9,093)

    (8,831)

    Common stock cash dividends paid

    (6,170)

    (5,574)

    (11,744)

    (10,625)

    Other, net

    (343)

     

    (201)

     

    (1,232)

     

    (508)

    Net cash from (used in) financing

    (11,243)

     

    (10,147)

     

    (27,819)

     

    4,614

    Investing

    Additions to property and equipment

    (15,804)

    (9,735)

    (30,727)

    (19,652)

    Acquisition of companies, net of cash acquired, and purchases of intangible and other assets

    (1,405)

    (65,029)

    (3,254)

    (66,215)

    Purchases of investments

    (2,050)

    (4,258)

    (3,670)

    (12,718)

    Maturities of investments

    2,604

    4,150

    4,740

    19,868

    Sales of investments

    2,559

    1,600

    4,527

    6,930

    Other, net

    (16)

    1,347

    (929)

    365

    Net cash used in investing

    (14,112)

     

    (71,925)

     

    (29,313)

     

    (71,422)

    Effect of foreign exchange rates on cash and cash equivalents

    (294)

     

    72

     

    (172)

     

    (27)

    Net change in cash and cash equivalents

    (3,358)

    (63,147)

    (833)

    (17,399)

    Cash and cash equivalents, beginning of period

    20,840

     

    80,452

     

    18,315

     

    34,704

    Cash and cash equivalents, end of period

     $17,482

     

     $17,305

     

     $17,482

     

     $17,305

     


     

    SEGMENT REVENUE AND OPERATING INCOME

    (In millions) (Unaudited)

     

    Three Months Ended

     December 31,

     

    Six Months Ended

     December 31,

     

     

     

    2024

     

    2023

     

    2024

     

    2023

    Revenue

     

     

     

     

     

     

     

    Productivity and Business Processes

     $29,437

     

     $25,854

     

     $57,754

     

     $51,080

    Intelligent Cloud

    25,544

     

    21,525

     

    49,636

     

    41,538

    More Personal Computing

    14,651

     

    14,641

     

    27,827

     

    25,919

    Total

     $69,632

     

     $62,020

     

     $135,217

     

     $118,537

    Operating Income

     

     

     

     

     

     

     

    Productivity and Business Processes

     $16,885

     

     $14,515

     

     $33,401

     

     $28,812

    Intelligent Cloud

    10,851

     

    9,555

     

    21,354

     

    18,463

    More Personal Computing

    3,917

     

    2,962

     

    7,450

     

    6,652

    Total

     $31,653

     

     $27,032

     

     $62,205

     

     $53,927

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

     

    MIL OSI Economics –

  • MIL-OSI Submissions: OPEC Fund delivers record US$2.3 billion in development finance in 2024

    Source: OPEC Fund for International Development (the OPEC Fund)

    Highlights in the 49th year of operation included:

    • Lending growth: 35 percent increase y-o-y to US$2.3 billion
    • Triple agriculture and food security investments
    • Climate Action Plan delivery ahead of target
    • Bond placements: US$500 million in January 2024
    • Advancing partnerships: A co-financing agreement with the World Bank Group; MoUs with IFAD, FONPLATA; Country Framework Agreements with Uzbekistan, Kazakhstan, Turkmenistan.

    January 29, 2025: The OPEC Fund for International Development achieved a record US$2.3 billion in new commitments in 2024 — a 35 percent increase year-on-year. These commitments, distributed across 70 projects worldwide, are combating climate change, improving global food security, advancing the energy transition and fostering sustainable economic and social development.

    OPEC Fund President Abdulhamid Alkhalifa said: “In 2024, the OPEC Fund set a new benchmark in delivering impactful development finance to tackle global priorities. Our record commitments not only reflect our capacity to boost climate action and social resilience but also the strength of our cooperation with countries and development partners such as the World Bank and the Arab Coordination Group. As we approach our 50th anniversary, thanks to the strong support from our member countries and capital market investors, we are well positioned to maximize impact and create lasting benefits for communities worldwide.”

    In 2024, the OPEC Fund’s financing supported projects across the Middle East and North Africa & Europe and Central Asia (39 percent of total commitments), Sub-Saharan Africa (34 percent), Asia and the Pacific (13 percent) as well as Latin America & the Caribbean (11 percent). The remaining 3 percent of financing was provided to support regional and global projects. The funds were delivered through a range of financial instruments in public and private sector lending, trade finance and grants operations.

    The largest segment of last year’s funding was policy-based lending (19 percent), supporting government-led sustainable development programs and policy implementation in countries such as Armenia (US$50 million), Cote D’Ivoire (US$60 million), Jordan (US$100 million), Montenegro (US$50 million) , Morocco (US$100 million),  Sri Lanka (US$50 million) and Uzbekistan (US$70 million). 

    Significant delivery to support global food security and climate action:

    Compared to 2023, the OPEC Fund tripled its commitments to the agriculture sector, in line with its strategic priority to boost global food security. The OPEC Fund provided US$261 million in financing to promote agricultural sustainability in Benin (US$26 million), Eswatini (US$20 million), Honduras (US$15 million), Lesotho (US$20 million), Malawi (US$20 million), Rwanda (US$20 million), Tanzania (US$50 million) and Türkiye (US$50 million).

    In 2024, the OPEC Fund delivered on its Climate Action Plan ahead of target. Aligned with this strategy, renewable energy projects constituted nearly 40 percent of the institution’s energy sector commitments last year. These included the Begana and Gamri hydro project in Bhutan (US$50 million), the Suez wind farm in Egypt (US$30 million), the Rogun hydropower project in Tajikistan (US$25 million) and a 42 MW wind farm in Uganda (US$16.5 million). Additional energy investments targeted improved transmission and connectivity in the Dominican Republic (two US$60 million loans) and Mauritania (US$40 million), as well as expanded energy access in Uzbekistan (US$37.5 million), all contributing to Sustainable Development Goal 7 – Clean and Affordable Energy.

    Boosting sustainable and climate resilient infrastructure, significant funding (12 percent) was delivered to enhance connectivity in the transport sector. Major projects included investments in Madagascar (US$30 million), Oman (US$180 million), Paraguay (US$50 million), Senegal (US$38 million), Tanzania (US$41 million)  and Uganda (US$30 million).

    In the financial sector, the OPEC Fund allocated more than US$270 million to partner with governments and local banks for on-lending to small and medium-sized enterprises, driving job creation and enhancing access to finance in Armenia, Bangladesh, Bosnia and Herzegovina, the Dominican Republic, Nepal, Paraguay and Uzbekistan. Another US$375 million in trade finance supported the movement of critical commodities and goods, including agricultural products, to and from developing economies.

    In 2024, the OPEC Fund strengthened partnerships with key institutions, including the African Development Bank (AfDB), Arab Coordination Group (ACG), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB); signed a co-financing agreement with the World Bank Group and MoUs with the International Fund for Agricultural Development (IFAD) and FONPLATA. The OPEC Fund also signed Country Framework Agreements with Uzbekistan, Kazakhstan, Turkmenistan aiming to further deepen the institution’s impact in the Central Asia region.

    About the OPEC Fund

    The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$29 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.

    MIL OSI – Submitted News –