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Category: Finance

  • MIL-OSI Africa: The Aid for Trade Initiative for Arab States (AfTIAS 2.0) Program Expands Regional Trade Initiatives Including Jordan Export Launchpad and Key Projects in Egypt and Algeria to Empower Small and Medium-sized Enterprises (SMEs) and Drive Economic Growth

    Source: Africa Press Organisation – English (2) – Report:

    JEDDAH, Saudi Arabia, January 28, 2025/APO Group/ —

    The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org) is proud to continue its work on the Aid for Trade Initiative for Arab States (AfTIAS 2.0), a program designed to enhance the trade capacity and competitiveness of Arab states. Building on past achievements, AfTIAS 2.0 is focused on empowering small and medium-sized enterprises (SMEs) to navigate global markets and expand intra-regional trade.

    With an emphasis on policy reform and capacity building, AfTIAS 2.0 addresses the core challenges faced by businesses across the region, fostering economic development and facilitating trade.

    The AfTIAS 2.0 program is implemented across 10 Arab countries, all of which are members of the League of Arab States. These countries are the primary beneficiaries of the program, which aims to promote economic integration and sustainable development through trade in the Arab region.

    One of the flagship initiatives under AfTIAS 2.0 is the Jordan Export Launchpad, which aims to equip Jordanian SMEs with the skills and resources to access international markets. In partnership with the Trade Facilitation Office (TFO) Canada and the Jordan Enterprise Development Corporation (JEDCO), the 13-month program offered specialized training to help export-ready businesses succeed globally. The initiative reflects AfTIAS 2.0’s commitment to fostering economic growth and creating jobs across the Arab region by enhancing the export potential of local enterprises.

    The program concluded with a graduation ceremony on October 28th, where 27 trainers received certifications. The event featured key figures, including JEDCO’s CEO, a representative from the Canadian Embassy, and TFO Canada’s Executive Director, who participated virtually.

    Another successful project under AfTIAS 2.0 is the initiative by the Arab Academy for Science, Technology, and Maritime Transport. This project established a comprehensive mechanism and database to support the shipbuilding and repair industry in Arab countries, marking a major achievement in regional collaboration. It underscores the program’s strategic focus on developing key industries to drive economic integration across the Arab world.

    Also, under AfTIAS 2.0, is Egypt’s Training is a STEP towards Exports (STEP) Project. The STEP project is a comprehensive program designed to equip Egyptian youth and SMEs with the necessary skills to successfully navigate the global export market. By providing targeted training in agricultural production and manufacturing, the program aims to enhance the competitiveness of the country’s exports and create new opportunities for economic growth. Through the program, participants will receive valuable guidance on accessing loans and funding to support their export endeavors.

    In Algeria, the AfTIAS 2.0 program is working to strengthen the agri-food and beverage sector through a project focused on improving the business environment for SMEs and enhancing institutional support. This 16-month initiative, launched in collaboration with the Ministry of Trade, ALGEX, and the International Trade Centre (ITC), seeks to bolster Algeria’s export competitiveness and contribute to the country’s achievement of the Sustainable Development Goals (SDGs).

    “Through AfTIAS 2.0, we are dedicated to enhancing the trade capabilities of SMEs in the Arab region, thus driving economic growth and promoting sustainable development,” explained Eng. Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation (ITFC). “This program exemplifies our commitment to reducing economic disparities and fostering regional market integration.”

    AfTIAS 2.0 continues to support a wide range of projects across the region, strengthening competitiveness, eliminating trade barriers, and fostering economic resilience. The program works in close partnership with key institutions, including the League of Arab States (LAS) and the United Nations Development Program (UNDP), to ensure that capacity building, infrastructure development, and institutional strengthening remain central to its goals.

    By fostering intra-regional trade and reducing reliance on imports, AfTIAS 2.0 addresses economic inequalities and promotes sustainable growth across the Arab world.

    MIL OSI Africa –

  • MIL-OSI Security: Philadelphia Woman Who Sexually Abused a One-Year-Old Girl, Manufactured and Distributed Child Pornography, Sentenced to 40 Years in Prison

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

    PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tyleeya Williams, 22, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Gerald J. Pappert to 40 years in prison and lifetime supervised release for sexually abusing and exploiting a child in her care and multiple child pornography offenses.

    In May of 2023, Williams was charged by indictment with the manufacture and attempted manufacture of child pornography, two counts of distribution of child pornography, and possession of child pornography. She pleaded guilty to all four charges in June of last year.

    As part of her guilty plea, Williams admitted that she sexually abused a one-year-old girl in her care, and that she had planned the abuse with another child sex offender with whom she was communicating online. The defendant photographed her molestation of this child and distributed those images of her abuse – which included the child’s face – via the internet. Williams also admitted that she had trafficked thousands of images and videos showing the sexual abuse of dozens of other children, sharing that material with groups of child sex offenders online.

    “Tyleeya Williams was entrusted with the care and protection of this little girl, but instead sexually abused and exploited her,” said U.S. Attorney Romero. “The defendant further victimized this child by documenting the abuse and sharing the horrific images with other sex offenders. While Williams’ 40-year sentence can’t reverse the immeasurable harm she’s done, it prevents her from harming anyone else’s child and is a measure of justice for all the innocents whose images she collected and shared. My office and the FBI will never stop working to hold accountable criminals ready and willing to hurt our children.”

    “The crimes Tyleeya Williams committed are among the most egregious the FBI investigates,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Even in the face of such horrific crimes, our office remains unwavering in our pursuit of justice against those who abuse and exploit our most vulnerable.”  

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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 projectsafechildhood.gov.

    The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Michelle Rotella.

    MIL Security OSI –

  • MIL-OSI Security: Greensboro Laboratory and Owner Agree to Pay $850,000 to Resolve Allegations of False Claims for Urine Drug Testing

    Source: Office of United States Attorneys

    GREENSBORO, N.C. – Substance Abuse Treatment Labs, located in Greensboro, and its owner, Paul Fribush, have agreed to pay $850,000 to resolve civil allegations that it violated the False Claims Act by billing North Carolina Medicaid for medically unnecessary urine drug screening tests (UDT), announced Acting U.S. Attorney Randall Galyon.

    The United States and the State of North Carolina alleged that, between January 2018 and January 2022, Substance Abuse Treatment Labs and Fribush submitted false claims for the highest level of urine drug testing to Medicaid. These claims, which reimbursed providers at the highest dollar amount for urine drug tests, were submitted to Medicaid despite clear signs that the tests were not medically necessary.

    “Protecting taxpayer dollars used to provide medical benefits to those who need it most is essential to this Office’s mission.” said Acting United States Attorney Randall Galyon. “We will continue to identify and hold accountable those providers that seek to enrich themselves off taxpayers through submitting such false claims. I am thankful for our partnership with the North Carolina Attorney General’s Office to assist us in this mission in pursuing justice on behalf of Medicaid.”

    “Submitting false claims to Medicaid undermines the program’s integrity and wastes valuable taxpayer dollars,” said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains dedicated to safeguarding the integrity of Medicare and Medicaid and protecting the people these programs serve.”

    The resolutions obtained in this matter were the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of North Carolina; the Medicaid Investigations Division of the North Carolina Attorney General’s Office; and the U.S. Department of Health and Human Services, Office of Counsel to the Inspector General. The United States was represented by Assistant United States Attorney Rebecca Mayer and Special Assistant United States Attorney Matthew Petracca.

    The claims resolved by the settlement are allegations only and there has been no determination of liability.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Mobile Man Sentenced To 37 Months For Illegally Possessing A Firearm

    Source: Office of United States Attorneys

    MOBILE, AL – Umar Abdul Waheed also known as Terry Evans, a Mobile man, has been sentenced to 37 months in federal prison for possessing a firearm as a previously convicted felon.  The sentence was imposed by United States Chief District Judge Jeffrey U. Beaverstock.

    According to court documents, in June 2024, Waheed reported to the Mobile County Community Corrections office in Mobile, Alabama. At the time he reported, Waheed had outstanding state warrants related to threats he made with a firearm to coworkers at a local construction company’s jobsite a few days prior. After Waheed was taken into custody on the outstanding warrants, officers located a firearm in the vehicle Waheed drove to Community Corrections. Waheed is a convicted felon and is prohibited from possessing a firearm.

    At sentencing, Judge Beaverstock imposed a 37-month sentence of incarceration and a 3-year term of supervised release upon Waheed’s discharge from prison.

    The Federal Bureau of Investigation investigated the case. Assistant United States Attorney Beth Stepan prosecuted the case on behalf of the United States.  

    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.
     

    MIL Security OSI –

  • MIL-OSI Security: Two Men Sentenced to Over Seven Years in Prison for Laundering Proceeds From an Elder Fraud Scheme

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

    ALEXANDRIA, Va. – Two men were sentenced to seven years and three months in prison for their roles in laundering over $6 million in elder fraud proceeds.

    According to court documents, Fei Liang, 42, of Flushing, New York, and Ziguang Li, 36, of Las Vegas, Nevada, opened bank accounts for fictitious businesses. These bank accounts were used to launder the proceeds of fraud.

    Liang’s and Li’s co-conspirators operated a nationwide “tech support” scam or other similar elder fraud scheme, in which they targeted unsuspecting victims who logged onto their computer to use one or more online services from various corporations. The conspirators falsely advised victims of purported criminal or technical issues with their accounts associated with these online services, and that to address these issues they were required to wire money to business accounts. The accounts to which the victims wired money were controlled by the conspirators.

    Money from the scam was directed to the accounts opened by Liang and Li. The accounts were then used to wire the proceeds to other members of the conspiracy, domestically and internationally.

    During a search of Li’s residence, law enforcement recovered a handwritten list of the fictitious businesses used to further the money laundering scheme, records associated with bank accounts that received victim-funded wires, and copies of documents bearing personal identifiable information (PII). Law enforcement also recovered Li’ s cellphones and computers, which contained victims’ PII, business documents, identification documents, Employer Identification Numbers, and bank account information for at least 25 different entities, including fictitious businesses that provided victim-funded transfers to Li.

    Liang pled guilty on Sept. 6, 2024, and was sentenced on Dec. 13, 2024. Li, pled guilty on Nov. 1, 2024, and was sentenced today.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Sean Ryan, Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Division; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and and Special Agent in Charge Scott Moffit, Treasury Inspector General for Tax Administration Cybercrimes Investigation Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.

    Assistant U.S. Attorney Christopher J. Hood and former Assistant U.S. Attorney Kenneth R. Simon Jr. prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-170.

    MIL Security OSI –

  • MIL-OSI USA: More Than $100M Awarded to Pro-Housing Communities

    Source: US State of New York

    January 28, 2025

    Albany, NY

    Governor Kathy Hochul today announced new investments of more than $100 million for projects located in certified Pro-Housing Communities, part of a total $123 million allocated as part of the latest round of the State’s Regional Economic Development Council initiative. Governor Hochul’s Pro-Housing Communities initiative allocates up to $650 million each year in discretionary funds for communities that pledge to modestly increase their housing supply; to date, 273 communities across New York have been certified as Pro-Housing Communities. This year, Governor Hochul is proposing an additional $110 million in funding to cover infrastructure and planning costs for Pro-Housing Communities.

    “There’s only one solution to New York’s housing affordability crisis: we’ve got to build more housing,” Governor Hochul said. “The Pro-Housing Communities initiative is delivering the incentives communities are looking for, and this latest round of grant funding will make a real difference in every region of New York. We’re proud of all the certified Pro-Housing Communities in New York and look forward to seeing their continued growth.”

    Empire State Development President, CEO and Commissioner Hope Knight said, “The Round XIV awards demonstrate how local priorities align with the state’s economic development goals – especially in our Pro-Housing Communities. The overwhelming response to the new Capital Improvement Grants program reflects how municipalities are eager to strengthen their foundations while addressing critical housing needs. Under Governor Hochul’s leadership, we continue to create new and dynamic opportunities to create jobs and generate sustainable and equitable growth throughout New York State.”

    New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Governor Hochul has been clear – municipalities who share our vision for smart housing growth will be rewarded. Through these $100 million awards announced today, Pro-Housing Communities will receive a financial boost to their efforts to upgrade infrastructure, strengthen their economies, and embark on projects that improve the quality-of-life for New Yorkers. We thank the Governor for her continued leadership and applaud our partners at the local level who are working diligently in every region of the state to find solutions to the housing shortage.”

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    Regional Economic Development Council Round XIV

    Round XIV of the Regional Council initiative further advanced Governor Hochul’s housing agenda by including a new program featuring funding earmarked for projects located in Pro-Housing Communities, as certified by Homes and Community Renewal (HCR). The Capital Improvement Grants for Pro-Housing Communities Program, administered by Empire State Development (ESD), made up to $40 million available to municipalities, counties and not-for-profits to support capital improvement and placemaking projects within Pro-Housing Communities. Due to an overwhelming response in applications and high demand, more than $55 million is being awarded to support these projects, reflecting the strong pro-housing commitment of the State’s municipalities.

    Three other programs in Round XIV were included in the Pro-Housing Community designation: ESD’s Grants and Market New York programs, and HCR’s New York Main Street program. Additionally, more than $9 million in Excelsior Jobs Program tax credits have been awarded to support the job creation and investment goals in projects located throughout the State. In the coming weeks, more than $250 million will be awarded to Pro-Housing Communities from the Downtown Revitalization Initiative, New York Forward and Mid-Hudson Momentum Programs.

    Select projects in Pro-Housing Communities from Round XIV include:

    • Capital Region – Schenectady Community Action Program – SCAP Campus: In partnership with DePaul Properties, Inc., SCAP will construct a building to house a new child care center, program space and administrative offices for its wide array of family support services, including employment services, supportive housing services and individual and family crisis intervention. The new site is in a New York State-designated child care desert and will provide new classrooms for comprehensive child care slots. The building is expected to be part of a larger mixed-use redevelopment that will create a one-of-a-kind campus in the City of Schenectady where housing, child care and family support services are co-located. ESD Grant – $4.975 million; Total Project Cost – $12.4 million.
    • Central New York – SEED Syracuse, Inc. – Chimes Building: The not-for-profit group will redevelop the Chimes Building into a mixed-use, mixed-income building. The project will create several residential units available to a mix of incomes and includes commercial space to house telecommunications tenants that serve as a fiber optic hub, providing internet access for roughly half of the City of Syracuse, including hospitals, fire departments, local businesses and residential users. ESD Grant – $1.25 million; Total Project Cost – $40.7 million.
    • Finger Lakes – Rochester Housing Authority – Fernwood Avenue Library & Mixed-Use Development: The project includes building a new branch of the Rochester Public Library System within a four-story, 80,000 square foot mixed-use building that includes affordable housing. The site will include 65 housing units with space for the new library to also provide support services, computer training and workforce development. Community Action Agencies will help coordinate and administer an integrated system of support services, creating new opportunities for success through targeted education and training efforts. The new building will be located on a Brownfield site. Capital Improvement for Pro-Housing Communities – $775,000; Total Project Cost – $4 million.
    • Long Island – Town of Riverhead – Downtown Riverfront Amphitheater: The Town will create a riverfront amphitheater and public park. Due to their location below the flood plain and increasing flood risks from climate change, the buildings will be relocated to the northern end of the property and elevated on new foundations. The southern end, with a 13-foot slope, will be converted into tiered seating with a stage and bandshell near the Peconic River. This design leverages the natural slope to protect the buildings while creating a flood barrier. The amphitheater will double as a public park, hosting activities like exercise classes, movie nights and children’s events. Capital Improvement Grant for Pro-Housing Communities – $1.4 million; Total Project Cost – $2.8 million.
    • Mid-Hudson – Habitat for Humanity of Dutchess County, Inc. – Taylor Ave. Development: Working in partnership with the City of Poughkeepsie, HFHDC will undertake the site preparation and construction of a mixed-use development that includes a child care center and housing units, with a portion of the units dedicated to senior and workforce housing. The project involves comprehensive site planning, modular townhouse designs, and the integration of necessary infrastructure such as roads, utilities and green spaces. ESD Grant – $1.6 million; Total Project Cost – $14.5 million.
    • Mohawk Valley – Municipal Housing Authority of the City of Utica (People First) – THRIVE Cornhill: This project will integrate two mixed-use buildings in the Cornhill section of Utica, offering two Community Impact Centers and several mixed-income apartments. The Impact Centers will support community-focused programs including a multipurpose gym, urban grocery, coworking space, test kitchen, entrepreneurial incubator, dance, art space and a courtyard. Capital Improvements for Pro-Housing Communities – $3 million; Total Project Cost – $17.6 million.
    • New York City – Brooklyn Navy Yard Development Corporation – Center for Planetary Health: The Center will establish a cutting-edge biotech innovation hub at Newlab in the Brooklyn Navy Yard. C4PH is purpose-built to accelerate the commercialization of non-therapeutic life sciences that can be applied to address climate change. The Center will be able to support over 30 companies, focusing on sectors like agriculture, textiles and building materials. ESD Grant – $1.6 million; Total Project Cost – $8 million.
    • North Country – Village of Massena – Raw Water Capital Project: The Village will construct a secondary raw water transmission line from the Massena Intake Dam to the water treatment plant. The new line will provide redundancy in the case of an emergency or routine maintenance, should the older main line fail. It will provide critical water service to residential, commercial, and industrial users in the Village and Town of Massena, plus Norfolk and Louisville. The line will also include new taps for the extension of raw water service to the proposed Air Products Green Hydrogen Facility. Capital Improvement Grant for Pro-Housing Communities – $2.34 million; Total Project Cost – $4.69 million.
    • Southern Tier – Village of Dryden – Water and Sewer Infrastructure Improvements: The Village will upgrade its water and sewer infrastructure as the first phase in having several hundred workforce apartments being built as Ezra Village in Tompkins County. The water improvements include extending water mains, and the sewer infrastructure upgrades include replacing several thousand feet of pipeline. Capital Improvements for Pro-Housing Communities – $1.82 million; Total Project Cost – $3.64 million.
    • Western New York – Jewish Community Center of Greater Buffalo, Inc. – Workforce Child Care Initiative: The project includes the construction of a two-story child care center on the Buffalo Niagara Medical Campus that will provide much needed service and provide specialized space for children with special needs. Partnerships within the campus like BestSelf Behavior Health and Buffalo Hearing and Speech will enable the new center to offer specialized resources and services to children in need, and a space to host these services for parents and their children. ESD Grant – $3 million; Total Project Cost – $8.2 million.

    More information on the projects awarded through the 2024 Regional Economic Development Council initiative, including a full list of awardees, is available here.

    There’s only one solution to New York’s housing affordability crisis: we’ve got to build more housing.”

    Governor Hochul

    Governor Hochul’s Housing Agenda

    Today, Governor Hochul announced that 273 municipalities have been certified as Pro-Housing Communities. The Governor is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers.

    As part of her 2025 State of the State, Governor Hochul proposed a bold plan to make owning and renting a home more affordable. The Governor proposed bolstering the Pro-Housing Community Program by investing $100 million to support critical housing infrastructure projects and providing $10.5 million technical assistance grants to help communities adopt pro-housing policies. The Governor also proposed creating the State’s first revolving loan fund to spur mixed-income rental development outside of New York City, as well as legislation to address rent-price fixing collusion by landlords, increase the effectiveness of State tax credits that support affordable housing development, and extending security deposit protections that market rate tenants currently have to rent-regulated tenants.

    Additionally, Governor Hochul proposed new steps to make homeownership more accessible and affordable to all New Yorkers, including funding for starter home development and first-time homebuyer downpayment assistance, and disincentivizing private equity firms from buying single-family and two-family homes across the State. The State of the State also proposes increased support for supportive housing that serves some of the most vulnerable New Yorkers.

    As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and relief from certain State-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on State-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners.

    In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. More than 55,000 homes have been created or preserved to date.

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    State Senator Brian Kavanagh said, “Addressing our statewide housing shortage requires that we use all the tools we have. Today’s announcement by Governor Kathy Hochul underscores our collective commitment to fostering vibrant, sustainable communities, while incentivizing localities to be open to producing more housing. I am proud to support the State budget that makes these funds available and I commend the Governor, Housing Commissioner RuthAnne Visnauskas, and their colleagues in the administration for effectively implementing and growing the Pro-Housing initiative.”

    State Senator Sean Ryan said, “New York’s housing affordability crisis is a problem we can solve, but it’s going to require creative ideas and consistent support for a wide range of programs to deal with this problem’s many causes. I thank Governor Hochul for her commitment to meeting this challenge, and I look forward to continuing to work together to implement solutions that address the unique problems facing Upstate communities.”

    Assemblymember Linda B. Rosenthal said, “Communities in every region of the state need to step up to the plate to build a more affordable New York. With the latest round of funding awarded by the Regional Economic Development Council, public housing authorities and non-profit organizations will be able to create much-needed affordable housing for those who are struggling to stay financially afloat in the Empire State. As we look toward the start of another budget season, I am once again committed to fighting for every available cent to build and preserve our state’s affordable housing stock. I applaud the Governor’s tenacity in addressing the housing crisis and her continued partnership on this critical issue.”

    Assemblymember Al Stirpe said, “Today’s announcement of ESD Round XIV grants truly benefits the Pro-Housing Communities as well as addresses critical needs throughout the state. Here in Central New York, SEED Syracuse, Inc. received funding for their project creating mixed income housing and commercial space in the City of Syracuse by redeveloping an iconic 1929 office building. Funding local projects in Pro-Housing Communities strengthens the fundamental economic base in these municipalities. Whether it is supporting child care, water infrastructure, innovative technologies, or libraries, all contribute to enhancing the daily lives of New Yorkers and the health of their neighborhoods and the region. Governor Hochul has taken the lead to address the state’s housing needs while, at the same time, reinforcing job creation and a spectrum of economic development opportunities.”

    Assemblymember Angelo Santabarbara said, “This initiative is about more than housing—it’s about creating opportunity and building a foundation for families to thrive. Growing up in the City of Schenectady, I saw how challenging it was for families like mine to get by without the resources we’re now able to provide. Investments like these in affordable housing, child care, and support services give families the tools they need to build a brighter future. I’m grateful for the collaboration and shared vision that made this possible, and I look forward to seeing how these projects transform our communities for generations to come.”

    MIL OSI USA News –

  • MIL-OSI Africa: Revisiting the Africa-Paris Declaration: Progress, Challenges and the Road Ahead for African Energy

    Source: Africa Press Organisation – English (2) – Report:

    PARIS, France, January 28, 2025/APO Group/ —

    The Africa-Paris Declaration, forged during the 2024 Invest in African Energy (IAE) Forum in Paris, was a pivotal moment in Africa’s quest for sustainable energy solutions. Aimed at strengthening the continent’s energy transition while addressing the urgent issue of energy poverty, the declaration set ambitious targets for expanding access to clean, affordable and reliable energy. With the 2025 edition of the forum approaching, now is the time to reflect on the progress made since the Africa-Paris Declaration and assess how these initiatives are shaping Africa’s energy future.

    Increased Engagement in Africa

    In the months following the declaration, international investors, development banks and private equity firms have shown a steadfast interest in the African energy market. A key milestone was the launch of the Africa Energy Bank by the African Export-Import Bank and APPO, marking the creation of a first-of-its-kind institution designed to fund and facilitate energy initiatives across the continent. Several final investment decisions were successfully closed, including Shell’s $5.5 billion Bonga North deepwater project. Additionally, strategic partnerships, including new PSCs signed by Panoro Energy in Equatorial Guinea and BW Energy in Gabon, highlight how international collaborations are accelerating energy development and creating new opportunities for exploration and production. This increased engagement is key to addressing the financing gap that has long hindered the growth of Africa’s energy sector.

    Natural gas continues to play a central role in Africa’s energy strategy as a transitional fuel. The Africa-Paris Declaration underscored its importance as a bridge between traditional energy sources and renewable energy. Over the past year, significant strides have been made in natural gas exploration and LNG exports. Notable developments include Senegal’s Greater Tortue Ahmeyim LNG reaching its first gas production, the Republic of Congo’s first LNG exports to Italy from the Congo LNG project, Nigeria’s UTM FLNG receiving its construction license, and Angola’s Sanha Lean Gas Connection project achieving first gas, among others. These initiatives are not only crucial for advancing Africa’s energy transition, but also serve as powerful drivers of economic growth by creating jobs and advancing infrastructure development.

    Meanwhile, countries like South Africa, Egypt and Morocco are at the forefront of wind and solar energy development, with momentum expected to build as they meet renewable energy targets and explore new growth opportunities. These investments are driving a shift toward cleaner, more sustainable energy in Africa, though challenges remain. High costs of renewable technologies and insufficient grid infrastructure continue to hinder expansion, underscoring the need for more investment in off-grid and mini-grid solutions.

    Investment Gaps Persist 

    Despite these advancements, Africa still faces significant investment challenges. The financing gap for large-scale energy projects remains substantial and while the private sector has become more engaged, many projects still struggle to secure the necessary capital. In particular, the cost of financing remains high due to the perceived risks associated with energy investments in Africa. This is where continued efforts to de-risk investments and foster public-private partnerships are critical to unlocking the continent’s full energy potential. Institutional capacity continues to be a challenge for many African countries. While progress has been made in improving regulatory frameworks, there is still a need for clearer policies, streamlined permitting processes and better enforcement of regulations. Governments must continue to strengthen their institutions to effectively implement energy projects and create an enabling environment for both local and international investors.

    With the IAE 2025 forum just months away, industry stakeholders have an opportunity to reflect on the progress made since the Africa-Paris Declaration and determine next steps for the continent’s energy future. The forum serves as a platform for government officials, industry leaders and financial institutions to renew commitments, share success stories and address ongoing challenges. While the road to universal energy access and a sustainable energy future is long, the declaration has set the framework for a collective effort that can lead to meaningful change. With the right investments, regulatory frameworks and political will, Africa can emerge as a global leader in energy innovation and sustainability.

    MIL OSI Africa –

  • MIL-OSI United Nations: Deputy Secretary-General Tells Africa Energy Summit Policy Coherence, Finance, Transparent Cooperation Key to ‘Illuminate the Lives of Millions’

    Source: United Nations General Assembly and Security Council

    Following are UN Deputy Secretary-General Amina Mohammed’s remarks to the panel on “Policies and Reforms for Transforming African Energy” at the Mission 300 Africa Energy Summit, in Dar es Salaam today:

    I want to start by thanking the Government of Tanzania and the African Union for its leadership, and the World Bank, the African Development Bank and the Mission 300 partners for convening this summit. 

    Mission 300 has undertaken an enormous task: to help close the energy access gap and unlock sustainable development across the continent by delivering electricity to 300 million Africans by 2030.  As we have heard, we face a stark reality:  685 million people across the continent still lack access to electricity, with the gap widening as population growth outpaces new electricity connections.

    And yet, Africa is richly endowed with natural resources vital for renewable energy technologies:  it is home to 60 per cent of the world’s best solar resources and possesses vast wind, hydro and geothermal potential.  And critical minerals mined in Africa are powering the renewables revolution around the world.

    Despite this abundance, and record global investments in renewable energies worldwide, Africa continues to be left behind and many Africans continue to lack access to clean, affordable energy.  This injustice must be urgently resolved.  Access to electricity is an essential development requirement, one that can also be the multiplier for acceleration in building a sustainable future for all.

    Providing clean energy to local communities represents a unique opportunity to improve health, widen access to education and social protection, make food systems resilient and create green jobs, e-commerce and financial services, while at the same time protecting the environment and biodiversity. 

    We have heard our distinguished speakers discuss why companies and Governments should get involved.  The business case is clear:  the falling costs of renewables and storage offer a great opportunity to deliver access to energy, energy security and sovereignty and climate resilience. 

    With the new African Continental Free Trade Area, aiming at a trade zone without barriers to the transfer of goods and services, the business opportunities will further multiply if the right policy environments — coherent and predictable — are put in place.

    As we move into discussing what policies and reforms for transforming African energy can enable millions to access energy, I would like to focus on three areas of urgent attention for policymakers.

    First, fostering policy coherence.  We are five years away from the target of our SDGs [Sustainable Development Goals], and we are not on track.  Policymakers and the international institutions need to strive to ensure sector-wide plans are coherent and aligned with the achievement of the SDGs due in 2030, while investors need robust regulatory laws in place to ensure business can operate aligned with them.

    At this Summit, Mission 300 target countries are presenting their first national energy strategies for achieving universal energy access.  These strategies need to be part of a broader plan, one that — while achieving universal energy access — needs to be aligned with the new economy-wide national climate action plans, or NDCs, consistent with 1.5°C, well before COP 30 [the 2025 United Nations Climate Change Conference] in November.

    NDCs represent a unique opportunity for all countries to align their new climate plans and energy strategies, together with addressing adaptation needs.  NDCs must coordinate the transition from fossil fuels with scaling of renewables and grid modernization and expansion, ensuring energy security and affordability.  And they must be anchored in justice — providing support for affected workers and communities.

    If done right, climate plans align with national development priorities and double as investment plans — becoming blueprints for a more sustainable and prosperous future.  The Secretary-General’s panel on critical energy transition minerals offers important principles and actionable recommendations to ensure this new era does not repeat historical patterns of exploitation.  SEforALL [Sustainable Energy for All], UN Resident Coordinators and country teams will continue to support country-level policy reforms, integrate stakeholder innovations, build institutional capacities and boost infrastructure investments across the entire clean-energy supply chain. 

    Second, mobilizing finance and support.  While private-sector investments and innovation are important, public financing remains vital — especially in modernizing grid infrastructure to expand access and integrate renewables.  Blending concessional public funds with commercial funds can help multiply renewable-energy investments in developing countries.  We must work to strengthen the health of Africa’s public finances and tackle unsustainable debt burdens that are crowding out essential public investments.

    The fourth International Conference on Financing for Development, that will take place in July to underpin the needs for long-term concessional finance, and the 1.3 trillion roadmap, agreed in Baku, that needs to be delivered by COP 30 in Brazil, must provide investments to scale up, among others, the energy transition.

    Third, enhancing transparent international cooperation.  International investments and cross-border partnerships hold the key to delivering electricity projects at a massive scale.  Institutions must be strengthened to operate in complex regulatory environments, with multiple actors across jurisdictions.

    Public-private partnerships need to be subject to stable and transparent public procurement rules throughout the whole project cycle — rules that prioritize long-term sustainability and allow for mutually beneficial contractual relationships.  Transparency and accountability should be a hallmark of Mission 300 and set a new standard for cooperation across the continent. 

    As we start the five-year countdown to delivering on the Sustainable Development Goals, and mark the ten-year anniversary of the Paris Agreement, let us work together to illuminate the lives of millions, power the industries of tomorrow and ensure that no one is left behind in the race to deliver universal clean energy, climate resilience and economic prosperity.

    MIL OSI United Nations News –

  • MIL-OSI USA: Governor Stein Announces Pratt & Whitney Will Expand Manufacturing Operations in Asheville

    Source: US State of North Carolina

    Headline: Governor Stein Announces Pratt & Whitney Will Expand Manufacturing Operations in Asheville

    Governor Stein Announces Pratt & Whitney Will Expand Manufacturing Operations in Asheville
    bwood

    Raleigh, NC

    Today, Governor Stein announced that Pratt & Whitney, an RTX business (NYSE: RTX), will expand its turbine airfoil manufacturing plant in Buncombe County, a significant vote of confidence in western North Carolina. The company’s expansion project will create 325 additional jobs and includes an additional investment of $285 million in Asheville.  

    “Western North Carolina’s economy took it on the chin after Hurricane Helene, yet still it remains an incredible place to work and do business,” said Governor Josh Stein. “Pratt & Whitney clearly sees the opportunities in North Carolina and the strength of our highly skilled workforce. We look forward to welcoming them here.” 

    Pratt & Whitney is a world leader in the design, manufacture, and service of aircraft engines and auxiliary power units.  More than 17,000 customers operating in more than 200 countries and territories use Pratt & Whitney engines, with more than 90,000 engines currently in service.  The company’s Asheville facility, first announced in October 2020, produces high-tech turbine airfoils, an important component in aircraft jet engines.  The company’s new project will expand its production capacity to meet growing customer demand.

    “Pratt & Whitney’s continued investment in Asheville is critical to meet the growing demand for our products, such as the GTF for the A320family and the F135 for the F-35 Lightning II,” said Asheville General Manager for Pratt & Whitney Dan Field. “We would like to thank the state, Buncombe County and Governor Stein for their support on this project. This latest round of investment allows us to add critical process elements for the manufacture of turbine airfoils and increase the overall delivery output of this facility, enabling us to deliver on our customer commitments while creating hundreds of new jobs in the Asheville community.” 

    “The aviation industry is a key driver of North Carolina’s economic success and Pratt & Whitney’s decision strengthens our aerospace ecosystem substantially,” said Commerce Secretary Lee Lilley.  “We will continue to invest in support systems, like our community colleges and universities, that help employers like Pratt & Whitney succeed in our state—and bolster Western NC’s economy.”

    The North Carolina Department of Commerce led the state’s support for the company during its site evaluation and decision-making process.

    The average salary for the new positions will be $62,413, compared with an average wage in Buncombe County of $55,416.  The new positions will bring an annual payroll impact to the community of more than $20 million per year. 

    The company’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by nearly $2.1 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and the capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $4,202,250, spread over 12 years. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. 

    The project’s projected return on investment of public dollars is 317 per cent, meaning for every dollar of potential cost, the state receives $4.17 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.  

    Because Pratt & Whitney chose to expand in Buncombe County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $1,400,750 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Buncombe, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state. 

    “Many local, regional, and state organizations have worked hard to bring this new economic development project to Buncombe County, all while working diligently through the many details of storm recovery,” said Representative Eric Ager. “We look forward to seeing Pratt & Whitney continue to thrive in our great community.” 

    Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Departments of Revenue and Transportation, N.C. Commerce’s Division of Workforce Solutions, the Office of Congressman Chuck Edwards, the Golden LEAF Foundation, Duke Energy, Asheville-Buncombe Technical Community College, Biltmore Farms, Buncombe County, the City of Asheville, and the Economic Development Coalition of Asheville and Buncombe County.  

    Jan 28, 2025

    MIL OSI USA News –

  • MIL-OSI Security: Fort Belvoir woman pleads guilty to brutally beating her 10-year-old child

    Source: Office of United States Attorneys

    ALEXANDRIA, Va. – A Fort Belvoir woman pled guilty yesterday to assault with a dangerous weapon; assault by striking, beating, and wounding; and cruelty to children.

    According to court documents, on Oct. 8, 2024, China Ashley Charles, 38, was enraged at her 10-year-old child because his bedroom was messy. She struck him with a chair, dresser drawers, a hot iron, a charging wire, a hairbrush, and a large serving spoon. She attempted to strike his face with the iron, but he blocked it with his hands.  When Charles hit the child with the charging wire, his finger was cut and began bleeding.

    Charles tried to hide her crime by making the child sit in a cold bath and splashing cold water on his face.

    The child dropped onto the roof from his second-floor bedroom and then jumped down from the roof and fled. He was recovered by police with substantial bruises, abrasions, a knot on the back of his head, and a cut and bleeding finger. The child was transported to the emergency room at Fort Belvoir Community Hospital by ambulance.

    Law enforcement recovered numerous items from China’s residence, including the iron, chair, hairbrush, spoon, multiple dresser drawers, and a sweater and a shirt with “I’M ON PUNISHMENT” written on them in black marker. Several of these items appeared to have blood on them, and further examination confirmed that the child’s blood was located on the iron and at least one dresser drawer.  The child’s sister reported that China had been beating him for the past four years.

    Charles is scheduled to be sentenced on May 9 and faces up to 16 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Jake Cameron, Special Agent in Charge of the Washington Field Office, Department of the Army Criminal Investigation Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.

    Assistant U.S. Attorneys April N. Russo and Marc J. Birnbaum and Special Assistant U.S. Attorney Claire M. Horrell are prosecuting the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-248.

    MIL Security OSI –

  • MIL-OSI USA: Crapo Supports Bessent for Treasury Secretary

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo
    Washington, D.C.–The United States Senate today confirmed Scott Bessent to serve as Secretary of the U.S. Department of the Treasury by a bipartisan vote of 68-29.  In a speech on the Senate floor, U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) highlighted Mr. Bessent’s qualifications and urged colleagues to support his nomination. 
    “Mr. Bessent is committed to restoring the prosperity and opportunity experienced under President Trump’s leadership,” Crapo said.  “I look forward to working closely with him to ensure we extend the policies that benefitted Americans of every income bracket and enabled families and businesses to get ahead.  If qualifications–and, I might add, character–are one’s test for supporting a nominee, voting to confirm Mr. Bessent is one of the easiest votes we could ever take.” 
    Mr. Bessent’s nomination was previously reported favorably out of the Senate Finance Committee by a bipartisan vote of 16 to 11. 

    Read Senator Crapo’s full remarks below:
    “I rise today to urge my colleagues to vote in favor of the confirmation of Mr. Scott Bessent, who has been nominated to serve as Secretary of the Treasury.
    “Over the weekend, the Senate voted with broad bipartisan support to advance Mr. Bessent’s nomination.  In fact, fifteen of my Democrat colleagues joined Republicans in advancing Mr. Bessent’s nomination.
    “Despite Mr. Bessent’s prolific experience and qualifications—which cannot be disputed—a few detractors frame their policy preferences as if these are compliance issues with respect to his taxes. 
    “Let me be clear: Mr. Bessent followed all applicable laws and met the Committee’s longstanding and rigorous diligence standard.  The Finance Committee has the most rigorous standard of vetting nominees of any committee in the Congress, including looking at their past tax returns and having tax experts come in and evaluate their tax returns with us.
    “His diligence matched that which has applied to nominees in previous administrations. 
    “Contrary to what you have heard, he provided extensive supporting material for all of the attacks on him, including more than 3,000 pages worth, and he and his staff spent countless hours with Republican and Democrat Senate Finance Committee members and staff going over all of these allegations and all of these claimed failures to pay taxes.  
    “He’s gone further by not only divesting all of his business ties, which is no small task, but by publicly committing that if there is any change in the law in the future on these policy arguments, that he would comply with those changes in the law.
    “Let me state this again, as clearly as it can be said, Scott Bessent paid his taxes.
    “I’ve heard it said twice on this floor that he did not pay his taxes.  Experts have gone over his tax returns, and he has complied with standard, prevailing interpretations of the tax code every time.
    “The issue here is that the IRS wants to change the interpretation of the tax code, but the IRS doesn’t get to decide what our tax code says.  Congress does, and Congress has not made the changes that the IRS wants to see.
    “Even in the face of that, arguing that he should have done what the IRS wanted him to do, in fact, they didn’t even say they wanted him to do it, they said it to other taxpayers, and other taxpayers have taken the IRS to court over this issue.  Mr. Bessent has said, if the IRS prevails and changes the tax code–the interpretation of the tax code–he will comply.
    “But the argument that he has not complied with long standing tax policy and interpretation is false, and I don’t know anybody who could go through a more rigorous standard than what we put him through in the Finance Committee.
    “As for the nominee, Mr. Bessent has worked for the last three decades as one of the sharpest minds in the global finance industry.  He has decades of academic, professional and leadership experience relevant to the position of Treasury Secretary.  
    “His performance at the Committee was stellar.  His background and training are tailor-made for this role, and he has the demeanor and character to be an effective Secretary.
    “Mr. Bessent is committed to restoring the prosperity and opportunity experienced under President Trump’s leadership. 
    “This includes ensuring that we avert an over-$4-trillion tax hike on the American people if the Trump tax cuts are allowed to expire, which he rightly described at his nomination hearing as a pass/fail exercise. 
    “There should be no question that we will extend these tax cuts.
    “I’ve also heard it argued on this floor here today that this is just a tax cut for rich billionaires.  The reality is that the vast majority of the tax cut goes to everyday people–to people making less than $400,000 a year.
    “The vast majority of those tax cuts go to people in the lower-and-middle income tax brackets. The tax cuts that we are talking about gave tax cuts to every single solitary income cohort in the tax code, and the greatest tax cuts went to those in the lower- and middle-income categories.
    “It would be terrible if we did not extend these tax cuts, and yet, Mr. Bessent is attacked for saying he supports extending these tax cuts.  It doesn’t make sense.  
    “I look forward to working closely with him to ensure we extend the policies that benefitted Americans of every income bracket and enabled families and businesses to get ahead.
    “I should also say that under this tax policy, when it was passed, the richest in America paid a greater percentage of the overall tax burden than they had before.  Yet he is attacked for wanting to extend these tax cuts that will hammer every single tax paying American if they are allowed to expire
    “If qualifications–and I might add, character–are one’s test for supporting a nominee, voting to confirm Mr. Bessent is one of the easiest we could ever take. 
    “In previous congresses, many of my Republican colleagues and I have voted for candidates we considered to be qualified to serve as Treasury Secretary, even when they were nominated by Democratic presidents and we disagreed with many of their policy positions.  
    “Mr. Bessent’s candidacy ought to enjoy similar bipartisan support and I encourage my colleagues on both sides of the aisle to join with me in confirming his nomination.
    “He is the right person for this job, and I commend President Trump in making such an excellent selection.”

    MIL OSI USA News –

  • MIL-OSI USA: Senator Marshall Joins Fox Business The Bottom Line: We Have a New Sheriff in Town

    US Senate News:

    Source: United States Senator for Kansas Roger Marshall

    Washington, D.C. – U.S. Senator Roger Marshall, M.D. joined Fox Business’ The Bottom Line to discuss President Trump’s America First foreign policy strategy and the Senate confirming Scott Bessent as Secretary of the Department of Treasury.
    Senator Marshall sits on the Senate Finance Committee, met with Bessent ahead of his confirmation hearing, and voted yes to confirm him as Treasury Secretary. The Senator strongly believes that Bessent is the right leader to revive America’s economy.
    You may click HERE or on the image above to watch Senator Marshall’s full interview.
    Highlights from Senator Marshall’s interview include: 
    On President Trump’s proposed tariffs on Colombia:
    “This whole week’s been nothing but shock and awe. It’s been a blitzkrieg for Donald Trump. It’s been a long time since we’ve seen a leader like this, so this sends a clear message to all the leaders – don’t mess with the United States right now, that we have a new sheriff in charge.”
    “What was impressive was the speed this came out. In years past, this would take weeks for a policy to develop. There’s President Trump between swings saying, enough of this – Colombia, take back your criminals. So indeed, a new sheriff in town.”
    On Scott Bessent passing Senate confirmation to become the next Secretary of the Treasury:
    “Of course, I voted yes, and it went through with flying colors, 68 to 29. Scott Bessent is approved to be your next Secretary of the Treasury. Scott’s going to do a great job. He’s going to bring some South Carolina common sense to everything here. He was raised in a small town, but yet he’s financially brilliant, so I think he’ll be part of the solution as we work forward on the legislation and balancing our budget.”

    MIL OSI USA News –

  • MIL-OSI Security: Ocala Man Sentenced To 15 Years In Federal Prison For Attempting To Meet A Minor To Engage In Sexual Activity

    Source: Office of United States Attorneys

    Ocala, Florida – United District Judge Thomas P. Barber has sentenced Rickey Lee Miller, Jr. (45, Ocala) to 15 years in federal prison, followed by a life term of supervised release, for attempting to entice a minor to engage in sexual activity. Miller entered a guilty plea on September 6, 2024.

    According to court documents, on July 27, 2024, a detective from the Marion County Sheriff’s Office posed as a 15-year-old girl on an online messaging platform. Miller contacted the undercover detective’s account and initially asked if she wanted to “hang out.” Miller then engaged in a sexually explicit conversation with the detective. During that conversation, Miller asked the detective if she would be interested in having “some fun” with Miller and a female friend. He also asked, “[W]ill you tell my friend your 18[?] I really don’t want her to know your real age.” When Miller subsequently drove to a predetermined location with his friend to meet with the minor for sex, he was arrested by law enforcement. The cellphone located in Miller’s vehicle was confirmed to be the phone communicating with the undercover detective. 

    “Attempting to entice a minor into harmful activity is a serious crime, and this prosecution underscores our unwavering commitment to protecting the most vulnerable members of our community,” said Homeland Security Investigations (HSI) Orlando assistant Special Agent in Charge David Pezzutti. “Alongside our partners at the Marion County Sheriff’s Office, the Ocala Police Department, the Florida Department of Law Enforcement, and the Chiefland Police Department, we will work tirelessly to hold offenders accountable and ensure that our children are safe from those who seek to exploit them.”

    This case was investigated by the Marion County Sheriff’s Office, the Ocala Police Department, the Florida Department of Law Enforcement, the Chiefland Police Department, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.

    This case was brought as 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 the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI: Oricidin Launches Groundbreaking Dental Gel for Long-Term Periodontitis Treatment

    Source: GlobeNewswire (MIL-OSI)

    BEVERLY HILLS, California, Jan. 28, 2025 (GLOBE NEWSWIRE) — Orocidin A/S, a subsidiary of Nordicus Partners Corporation (OTCQB: NORD) (“Nordicus” or the “Company”), a financial consulting company specializing in supporting Nordic and U.S. life sciences companies in establishing themselves in the U.S. market, has developed a novel, proprietary dental gel that represents a significant breakthrough in the long-term treatment of periodontitis.

    This innovative low-viscosity gel, featuring a unique active ingredient, offers an effective and convenient solution for long-term management of this widespread oral health condition. The gel is applied by dentists using a syringe and flushing cannula to deliver the treatment directly into dental pockets. Upon contact with oral cavity moisture, the gel forms a semi-solid, bioadhesive crystalline matrix. This structure enables the slow and localized release of the active peptide, ensuring sustained treatment efficacy over time.

    The formulation leverages an optimized ratio of triglycerides, monoglycerides, and water. When exposed to water naturally present in the oral cavity, the gel rapidly forms a semi-solid bioadhesive crystalline matrix, enabling the slow, localized release of the active peptide for effective, long-term treatment of periodontitis. All components are biocompatible and FDA-approved for oral use, ensuring safety and effectiveness for patients.

    “Oricidin’s innovative dental gel represents a significant advancement in the treatment of periodontitis,” said Allan Wehnert, Founder and CEO of Orocidin. “By combining cutting-edge science with patient-centered design, we aim to improve both outcomes and the overall dental care experience,”.

    For further information, contact:

    Mr. Henrik Rouf
    Chief Executive Officer
    Phone +1 310 666 0750
    Email hr@nordicuspartners.com

    Investor Relations
    Jonathan Paterson
    Harbor Access Investor Relations
    Jonathan.Paterson@Harbor-Access.com
    Tel +1 475 477 9401

    About Nordicus Partners Corporation

    Nordicus Partners Corporation is the only U.S. publicly traded business accelerator and holding company for Nordic life sciences companies. Leveraging decades of combined management experience in domestic and global corporate sectors, Nordicus excels in corporate finance activities including business and market development, growth strategies, talent acquisition, partnership building, capital raising, and facilitating company acquisitions and sales. In 2024, Nordicus acquired 100% of Orocidin A/S, a Danish preclinical-stage biotech company developing next-generation therapies for periodontitis and 100% of Bio-Convert ApS, a Danish preclinical-stage biotech company dedicated to revolutionizing the treatment of oral leukoplakia. For more information about Nordicus, please visit: www.nordicuspartners.com, and follow us on LinkedIn, X, Threads and BlueSky.

    Cautionary Note Regarding Forward-Looking Statements:

    This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There may be events in the future, however, that we are not able to predict accurately or control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 

            

    The MIL Network –

  • MIL-OSI: Summit State Bank Reports Fourth Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SANTA ROSA, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported a net loss of $6,605,000, or $0.98 loss per diluted share for the fourth quarter ended December 31, 2024, compared to net income of $1,901,000, or $0.28 per diluted share for the fourth quarter ended December 31, 2023. The current quarter’s results were impacted by expenses including a $6,646,000 provision for credit losses on loans and a $4,119,000 one-time non-cash impairment charge to write off the remaining balance of goodwill. The Bank has taken significant charge offs and provisions for credit losses in the fourth quarter of 2024 as a proactive step towards resolving its problem loans. The goodwill impairment was a result of the Bank’s stock price trading below book value and is a non-cash charge that does not impact the Bank’s cash flows, liquidity, or regulatory capital. The Bank ended the year with improved regulatory capital ratios and is focused on expanding net interest margin in 2025.

    For the year ended December 31, 2024, the Bank reported a net loss of $3,656,000, or $0.54 loss per diluted share compared to net income of $10,822,000, or $1.62 per diluted share for the year ended December 31, 2023. The 2024 net income loss was primarily attributable to annual provision for credit losses on loans totaling $7,958,000 and a one-time non-cash goodwill impairment expense of $4,119,000.

    Pre-tax, pre-provision net income before goodwill1 was $2,994,000 for the quarter ended December 31, 2024, compared to $2,122,000, $1,267,000, $1,955,000 and $2,643,000 for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively. “At the beginning of 2024, the Bank was negatively impacted by the ongoing strains that the high-interest rate environment put on our funding costs,” said Brian Reed, President and CEO. “By the fourth quarter of 2024, the Bank’s core operating results improved due to a lower cost of funds and improved noninterest income.”

    “The Bank continues to focus on maintaining strong capital levels and did that effectively in 2024 by strategically managing the balance sheet and suspending cash dividends.
    As such, the Board determined it will also suspend cash dividends in the first quarter of 2025 so that we can build capital, increase liquidity, and position the Bank to create long-term value for our shareholders.”

    “The largest negative impact on the Bank’s performance in 2024 was a result of the heightened level of non-performing assets,” said Reed. “We have been aggressively pursuing solutions to these problem loans and have reduced our non performing loans by $9,160,000 in the fourth quarter of 2024. We anticipate non performing loans will be further reduced by $18,187,000 in the first half of 2025 as a result of loan payoffs from the sale of collateral that is currently under contract to be sold.”

    “We are headed into 2025 feeling positive about our prospects subsequent to our significant progress in resolving problem loans. We continue to maintain our well capitalized status and sufficient liquidity after having realized successive quarters of improved net operating income results,” concluded Reed.

    Fourth Quarter 2024 Financial Highlights (at or for the three months ended December 31, 2024)

    • The Bank’s Tier 1 Leverage ratio increased to 8.92% at December 31, 2024 compared to 8.85% at December 31, 2023. This ratio remains above the minimum of 5% required to be considered “well-capitalized” for regulatory capital purposes.
    • The Bank has implemented numerous operating cost saving initiatives including an 8% reduction in force.
    • The Bank’s annualized loss on average assets and annualized loss on average equity for the fourth quarter of 2024 was 2.39% and 25.94%, respectively. The pre-tax, pre-provision return on average assets before goodwill1 and pre-tax, pre-provision return on average equity before goodwill1 in the fourth quarter would have been 1.08% and 11.76%, respectively.
    • Net income was a loss of $6,605,000 for the fourth quarter of 2024. Pre-tax, pre-provision net income before goodwill1 was $2,994,000 for the fourth quarter of 2024 compared to $2,122,000, $1,267,000, $1,955,000 and $2,643,000 for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively.
    • Collateral relating to two of the non performing loans is in contract to sell in the first half of 2025 and the expected proceeds represent 65% or $18,010,000 of the remaining $27,754,000 of non performing loans.
    • The allowance for credit losses to total loans was 1.50% after charging off $8,343,000 and recording a $6,646,000 provision for credit losses to replenish reserves on December 31, 2024.
    • The Bank maintained strong total liquidity of $435,409,000, or 40.8% of total assets as of December 31, 2024. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of $111,471,000 or 10.4% of total assets, plus available borrowing capacity of $323,938,000 or 30.3% of total assets.
    • The Bank has been strategically managing its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. The Bank has been successful in reducing the size of its balance sheet as noted below:
      • Net loans decreased $33,627,000 to $904,999,000 at December 31, 2024, compared to $938,626,000 one year earlier and decreased $12,368,000 compared to $917,367,000 three months earlier.
      • Total deposits decreased 5% to $962,562,000 at December 31, 2024, compared to $1,009,693,000 at December 31, 2023, and decreased 4% when compared to the prior quarter end of $1,002,770,000.
    • Book value was $13.61 per share, compared to $14.40 per share a year ago and $14.85 in the preceding quarter.

    Operating Results

    For the fourth quarter of 2024, the annualized loss on average assets was 2.39% and the annualized loss on average equity was 25.94%. This compared to an annualized return on average assets of 0.67% and an annualized return on average equity of 8.02%, respectively, for the fourth quarter of 2023. These ratios were negatively impacted during the fourth quarter of 2024 by a credit loss provision and one-time goodwill impairment. Without the impact from these items, the pre-tax, pre-provision return on average assets before goodwill1 and the pre-tax, pre-provision return on average equity before goodwill1 would have been 1.08% and 11.76%, respectively, for the three months ended December 31, 2024.

    For the year ended 2024, the loss on average assets was 0.37% and the loss on average equity was 3.69%. This compares to the return on average assets of 0.95% and return on average equity of 11.56%, respectively, for the year ended 2023.

    The Bank’s net interest margin was 2.88% in the fourth quarter of 2024 compared to its lowest quarterly net interest margin this year of 2.71% which occurred in the second and third quarters of 2024. The current net interest margin is also higher compared to the fourth quarter of 2023 of 2.85%. This was primarily attributable to the cost of deposits decreasing in the fourth quarter of 2024 to 2.87% compared to 3.05% during the preceding quarter. “We are starting to see an improvement in cost of funds in response to the Federal Reserve rate decreases. As CDs mature, we expect to see continued improvement in deposit pricing in the near future,” said Reed. “In addition, loan yields have started to improve as our existing loans have started to reprice.”

    Interest and dividend income decreased 1.0% to $14,935,000 in the fourth quarter of 2024 compared to $15,036,000 in the fourth quarter of 2023. The decrease in interest income is attributable to a $182,000 decrease in interest on investment securities and a $137,000 decrease in interest on deposits with banks offset by an increase of $214,000 in interest and fees on loans.

    Noninterest income increased in the fourth quarter of 2024 to $1,373,000 compared to $297,000 in the fourth quarter of 2023. The increase is primarily attributed to the Bank recognizing $857,000 in gains on sales of SBA guaranteed loan balances in the fourth quarter of 2024 compared to no gains on sales of SBA guaranteed loan balances in the fourth quarter of 2023.

    Operating expenses increased in the fourth quarter of 2024 to $10,200,000 compared to $5,483,000 in the fourth quarter of 2023. The increase is primarily due to a one-time non-cash impairment charge of $4,119,000 to write off the remaining balance of goodwill. In addition, the Bank recorded a $443,000 loss related to an external check fraud event during the fourth quarter of 2024. The Bank has filed an insurance claim related to this fraud loss and may be partially reimbursed by insurance at a later date.

    “We remain focused on enhancing revenue generation and driving significant cost efficiencies to improving our operational effectiveness. To date we have leveraged existing staff and technologies to reduce third-party expenses, eliminated raises and bonuses, reduced employee benefits Bank-wide, and reduced director fees.”

    Balance Sheet Review

    During 2024, the Bank strategically managed its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. As a result of the efforts, net loans decreased 4% to $904,999,000 and total deposits also decreased 5% to $962,562,000 as of December 31, 2024 compared to December 31, 2023.

    Net loans were $904,999,000 at December 31, 2024 compared to $938,626,000 at December 31, 2023, and decreased 1% compared to September 30, 2024. The Bank’s largest loan types are commercial real estate loans which make up 78% of the portfolio, “secured by farmland” totaling 9% of the portfolio, and 7% in commercial and industrial loans. Of the commercial real estate total, approximately 34% or $231,000,000 is owner occupied and the remaining 66% or $451,000,000 is non-owner occupied. The Bank’s entire loan portfolio is well diversified between industries including office space which totals $116,400,000.

    Total deposits were $962,562,000 at December 31, 2024 compared to $1,009,693,000 at December 31, 2023, and decreased 4% compared to the prior quarter end. At December 31, 2024, noninterest bearing demand deposit accounts decreased 8% compared to a year ago and represented 19% of total deposits; savings, NOW and money market accounts decreased 9% compared to a year ago and represented 49% of total deposits, and CDs increased 4% compared to a year ago and comprised 32% of total deposits.

    Shareholders’ equity was $92,261,000 at December 31, 2024, compared to $100,662,000 three months earlier and $97,678,000 a year earlier. The decrease in shareholders’ equity compared to a year ago was due to a reduction in retained earnings. At December 31, 2024 book value was $13.61 per share, compared to $14.85 three months earlier, and $14.40 at December 31, 2023.

    The Bank’s Tier 1 Leverage ratio continues to exceed the minimum of 5% necessary to be categorized as “well-capitalized” for regulatory capital purposes. The Tier-1 leverage ratio at the end of 2024 was 8.92%, an increase compared to 8.85% at the end of 2023.

    Credit Quality

    “Our primary focus remains on managing asset quality and reducing portfolio risk,” said Reed. “To that end we charged off loans of $8,343,000 and recorded a $6,646,000 provision for credit losses to replenish reserves during the fourth quarter of 2024. Three credits represent 94% or $26,040,000 of our non performing loans and are “secured by farmland” which have been hit hard by the current environment. The bank holds a small portion of its total loans in this industry and actively monitors the performance of these loans. Collateral relating to two of these three non performing loans is in contract to sell in the first half of 2025 and represents 65% or $18,010,000 of the non performing portfolio. The remaining non performing loans are being reserved at current appraisal value less selling cost.”

    Non performing assets were $32,884,000, or 3.08% of total assets, at December 31, 2024. This compared to $41,971,000 in non performing assets at September 30, 2024, and $44,206,000 in non performing assets at December 31, 2023. Non performing assets include $5,130,000 for one other real estate owned loan at December 31, 2024 and September 30, 2024, compared to no other real estate owned loans at December 31, 2023.

    There were $8,343,000 in net charge-offs during the three months ended December 31, 2024, compared to no charge-offs during the three months ended September 30, 2024 and net recoveries of $9,000 during the three months ended December 31, 2023.

    For the fourth quarter of 2024, consistent with factors within the allowance for credit losses model, the Bank recorded a $6,646,000 provision for credit loss expense for loans, a $8,000 provision for credit losses for unfunded loan commitments and a $2,000 reversal of credit losses on investments. This compared to a $31,000 reversal of credit loss expense on loans, a $65,000 reversal of credit losses on unfunded loan commitments and a $31,000 provision for credit losses on investments in the fourth quarter of 2023.

    The allowance for credit losses to total loans was 1.50% on December 31, 2024, and 1.60% on December 31, 2023. The decrease is due to $9,690,000 in loan charge-offs offset with a provision for credit losses on loans of $7,958,000 and $91,000 reversal of credit losses on unfunded loan commitments recorded during the year ended December 31, 2024.

    About Summit State Bank

    Founded in 1982 and headquartered in Sonoma County, Summit State Bank is an award-winning community bank serving the North Bay. The Bank serves small businesses, nonprofits and the community, with total assets of $1.1 billion and total equity of $92 million as of December 31, 2024. The Bank has built its reputation over the past 40 years by specializing in providing exceptional customer service and customized financial solutions to aid in the success of its customers.

    Summit State Bank is committed to embracing the diverse backgrounds, cultures and talents of its employees to create high performance and support the evolving needs of its customers and community it serves. Through the engagement of its team, Summit State Bank has received many esteemed awards including: Top Performing Community Bank by American Banker, Best Places to Work in the North Bay and Diversity in Business by North Bay Business Journal, Corporate Philanthropy Award by the San Francisco Business Times, and Hall of Fame by North Bay Biz Magazine. Summit State Bank’s stock is traded on the Nasdaq Global Market under the symbol SSBI. Further information can be found at www.summitstatebank.com.

    Cautionary Note Regarding Preliminary Financial Results and Forward-looking Statements

    The financial results in this release are preliminary and unaudited. Final audited financial results and other disclosures will be reported in Summit State Bank’s annual report on Form 10-K for the period ended December 31, 2024 and may differ materially from the results and disclosures in this release due to, among other things, the completion of final review procedures, the occurrence of subsequent events or the discovery of additional information.

    Except for historical information, the statements contained in this release, are forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are non-historical statements regarding management’s expectations and beliefs about the Bank’s future financial performance and financial condition and trends in its business and markets. Words such as “expects,” “anticipates,” “believes,” “estimates” and similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Examples of forward-looking statements include but are not limited to statements regarding future operating results, operating improvements, loans sales and resolutions, cost savings, insurance recoveries and dividends. The forward-looking statements in this release are based on current information and on assumptions about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Bank’s control. As a result of those risks and uncertainties, the Bank’s actual future results and outcomes could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this release. Those risks and uncertainties include, but are not limited to, the risk of incurring credit losses; the quality and quantity of deposits; the market for deposits, adverse developments in the financial services industry and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of the Bank’s liquidity; fluctuations in interest rates; governmental regulation and supervision; the risk that the Bank will not maintain growth at historic rates or at all; general economic conditions, either nationally or locally in the areas in which the Bank conducts its business; risks associated with changes in interest rates, which could adversely affect future operating results; the risk that customers or counterparties may not performance in accordance with the terms of credit documents or other agreements due a decline in credit worthiness, business conditions or other reasons;; adverse conditions in real estate markets; and the inherent uncertainty of expectations regarding litigation, insurance claims and the performance or resolution of loans. Additional information regarding these and other risks and uncertainties to which the Bank’s business and future financial performance are subject is contained in the Bank’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and other documents the Bank files with the FDIC from time to time. Readers should not place undue reliance on the forward-looking statements, which reflect management’s views only as of the date of this release. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

    1Non-GAAP Financial Measures

    This release contains non-GAAP (Generally Accepted Accounting Principles) financial measures in addition to the results presented in accordance with GAAP. These Non-GAAP financial measures include pre-tax, pre-provision net operating income before goodwill, pre-tax, pre-provision return on average assets before goodwill (“ROAA”), and pre-tax, pre-provision return on average equity (“ROAE”) before goodwill. We believe the presentation of these non-GAAP financial measures, provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our history results and those of our peers.

    Not all companies use identical calculations or the same definitions of pre-tax, pre-provision net operating income before goodwill, pre-tax, pre-provision ROAA before goodwill and pre-tax, pre-provision ROAE before goodwill, so the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. These non-GAAP financial measures should be taken together with the corresponding GAAP measure and should not be considered a substitute for the GAAP measure. Reconciliations of the most directly comparable GAAP measures to these non-GAAP financial measurements are presented below.

    Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908

                         
        Three Months Ended
                         
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
        (In thousands)
    Reconciliation of non-GAAP pre-tax, pre-provision income net of goodwill                
                         
    Net (loss) income   $ (6,605 )   $ 626     $ 928     $ 1,395     $ 1,901  
    Excluding provision for (reversal of) credit losses   6,652       1,294       (16 )     (85 )     (65 )
    Excluding (reversal of) provision for income taxes   (1,172 )     202       355       645       807  
    Pre-tax, pre-provision income (non-GAAP) $ (1,125 )   $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                         
    Excluding goodwill impairment     4,119       –       –       –       –  
    Pre-tax, pre-provision income net of goodwill (non-GAAP) $ 2,994     $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                       
                         
                         
        Three Months Ended
                         
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
        (In thousands)
    Reconciliation of non-GAAP return on average assets                  
                         
    Average assets   $ 1,098,890     $ 1,098,469     $ 1,078,700     $ 1,087,960     $ 1,123,057  
    (Loss) return on average assets (1)     -2.39%       0.23%       0.35%       0.51%       0.67%  
                         
    Net (loss) income   $ (6,605 )   $ 626     $ 928     $ 1,395     $ 1,901  
    Excluding provision for (reversal of) credit losses   6,652       1,294       (16 )     (85 )     (65 )
    Excluding (reversal of) provision for income taxes   (1,172 )     202       355       645       807  
    Pre-tax, pre-provision income (non-GAAP) $ (1,125 )   $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                         
    Excluding goodwill impairment     4,119       –       –       –       –  
    Pre-tax, pre-provision income net of goodwill (non-GAAP) $ 2,994     $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                         
    Adjusted return on average assets (non-GAAP) (1)   1.08%       0.77%       0.47%       0.72%       0.93%  
                         
    (1) Annualized.                
                         
        Three Months Ended
                         
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
        (In thousands)
    Reconciliation of non-GAAP return on average shareholders’ equity                
                         
    Average shareholders’ equity   $ 101,313     $ 99,962     $ 97,548     $ 97,471     $ 94,096  
    (Loss) return on average shareholders’ equity (1)   -25.94%       2.48%       3.82%       5.74%       8.02%  
                         
    Net (loss) income   $ (6,605 )   $ 626     $ 928     $ 1,395     $ 1,901  
    Excluding provision for (reversal of) credit losses   6,652       1,294       (16 )     (85 )     (65 )
    Excluding (reversal of) provision for income taxes   (1,172 )     202       355       645       807  
    Pre-tax, pre-provision income (non-GAAP) $ (1,125 )   $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                         
    Excluding goodwill impairment     4,119       –       –       –       –  
    Pre-tax, pre-provision income net of goodwill (non-GAAP) $ 2,994     $ 2,122     $ 1,267     $ 1,955     $ 2,643  
                         
    Adjusted return on average shareholders’ equity (non-GAAP) (1)   11.76%       8.42%       5.21%       8.04%       11.14%  
                         
    (1) Annualized.                
                     
                   
    SUMMIT STATE BANK
    STATEMENTS OF INCOME
    (In thousands except earnings per share data)
                   
      Three Months Ended   Year Ended
      December 31, 2024   December 31, 2023   December 31, 2024   December 31, 2023
      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                   
    Interest and dividend income:              
    Interest and fees on loans $ 13,623     $ 13,409     $ 53,574     $ 52,560  
    Interest on deposits with banks   655       792       2,060       4,410  
    Interest on investment securities   530       712       2,614       2,855  
    Dividends on FHLB stock   127       123       514       416  
    Total interest and dividend income   14,935       15,036       58,762       60,241  
    Interest expense:              
    Deposits   7,099       7,113       28,495       24,227  
    Federal Home Loan Bank advances   6       –       337       177  
    Junior subordinated debt   128       94       454       375  
    Total interest expense   7,233       7,207       29,286       24,779  
    Net interest income before provision for credit losses   7,702       7,829       29,476       35,462  
    Provision for (reversal of) credit losses on loans   6,646       (31 )     7,958       342  
    Provision for (reversal of) credit losses on unfunded loan commitments   8       (65 )     (91 )     (68 )
    (Reversal of) provision for credit losses on investments   (2 )     31       (22 )     58  
    Net interest income after provision for (reversal of) credit              
    losses, unfunded loan commitments and investments   1,050       7,894       21,631       35,130  
    Non-interest income:              
    Service charges on deposit accounts   225       219       926       872  
    Rental income   61       54       241       193  
    Net gain on loan sales   857       –       2,114       2,481  
    Net gain on securities   6       –       6       –  
    FHLB prepayment fee   –       –       –       1,024  
    Other income   224       24       865       631  
    Total non-interest income   1,373       297       4,152       5,201  
    Non-interest expense:              
    Salaries and employee benefits   3,429       3,044       15,639       15,399  
    Occupancy and equipment   413       386       1,761       1,713  
    Goodwill impairment   4,119       –       4,119       –  
    Other expenses   2,239       2,053       7,889       7,938  
    Total non-interest expense   10,200       5,483       29,408       25,050  
    (Loss) income before provision for income taxes   (7,777 )     2,708       (3,625 )     15,281  
    (Reversal of) provision for income taxes   (1,172 )     807       31       4,459  
    Net (loss) income $ (6,605 )   $ 1,901     $ (3,656 )   $ 10,822  
                   
    Basic (loss) earnings per common share $ (0.98 )   $ 0.28     $ (0.54 )   $ 1.62  
    Diluted (loss) earnings per common share $ (0.98 )   $ 0.28     $ (0.54 )   $ 1.62  
                   
    Basic weighted average shares of common stock outstanding   6,719       6,698       6,714       6,695  
    Diluted weighted average shares of common stock outstanding   6,719       6,698       6,714       6,698  
                                   
    SUMMIT STATE BANK  
    BALANCE SHEETS  
    (In thousands except share data)  
             
      December 31, 2024   December 31, 2023  
      (Unaudited)   (Unaudited)  
             
    ASSETS        
             
    Cash and due from banks $ 51,403   $ 57,789  
    Total cash and cash equivalents   51,403     57,789  
             
    Investment securities:        
    Available-for-sale, less allowance for credit losses of $36 and $58        
    (at fair value; amortized cost of $80,887 in 2024 and $97,034 in 2023)   68,228     84,546  
             
    Loans, less allowance for credit losses of $13,769 in 2024 and $15,221 in 2023   904,999     938,626  
    Bank premises and equipment, net   5,155     5,316  
    Investment in Federal Home Loan Bank (FHLB) stock, at cost   5,889     5,541  
    Goodwill   –     4,119  
    Other real estate owned   5,130     –  
    Affordable housing tax credit investments   7,484     8,405  
    Accrued interest receivable and other assets   19,269     18,166  
             
    Total assets $ 1,067,557   $ 1,122,508  
             
    LIABILITIES AND        
    SHAREHOLDERS’ EQUITY        
             
    Deposits:        
    Demand – non interest-bearing $ 185,756   $ 201,909  
    Demand – interest-bearing   193,355     244,748  
    Savings   47,235     54,352  
    Money market   226,879     212,278  
    Time deposits that meet or exceed the FDIC insurance limit   70,717     63,159  
    Other time deposits   238,620     233,247  
    Total deposits   962,562     1,009,693  
             
    FHLB advances   –     –  
    Junior subordinated debt, net   5,935     5,920  
    Affordable housing commitment   583     4,094  
    Accrued interest payable and other liabilities   6,216     5,123  
             
    Total liabilities   975,296     1,024,830  
             
    Total shareholders’ equity   92,261     97,678  
             
    Total liabilities and shareholders’ equity $ 1,067,557   $ 1,122,508  
             
     
    Financial Summary
    (In thousands except per share data)
                     
        As of and for the   As of and for the
        Three Months Ended   Year Ended
        December 31, 2024   December 31, 2023   December 31, 2024   December 31, 2023
        (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
    Statement of Income Data:                
    Net interest income   $ 7,702     $ 7,829     $ 29,476     $ 35,462  
    Provision for (reversal of) credit losses on loans     6,646       (31 )     7,958       342  
    Provision for (reversal of) credit losses on unfunded loan commitments   8       (65 )     (91 )     (68 )
    (Reversal of) provision for credit losses on investments     (2 )     31       (22 )     58  
    Non-interest income     1,373       297       4,152       5,201  
    Non-interest expense     10,200       5,483       29,408       25,050  
    (Reversal of) provision for income taxes     (1,172 )     807       31       4,459  
    Net (loss) income   $ (6,605 )   $ 1,901     $ (3,656 )   $ 10,822  
                     
    Selected per Common Share Data:                
    Basic earnings per common share   $ (0.98 )   $ 0.28     $ (0.54 )   $ 1.62  
    Diluted earnings per common share   $ (0.98 )   $ 0.28     $ (0.54 )   $ 1.62  
    Dividend per share   $ –     $ 0.12     $ 0.28     $ 0.48  
    Book value per common share (1)   $ 13.61     $ 14.40     $ 13.61     $ 14.40  
                     
    Selected Balance Sheet Data:                
    Assets   $ 1,067,557     $ 1,122,508     $ 1,067,557     $ 1,122,508  
    Loans, net     904,999       938,626       904,999       938,626  
    Deposits     962,562       1,009,693       962,562       1,009,693  
    Average assets     1,098,890       1,123,057       1,091,047       1,142,790  
    Average earning assets     1,064,872       1,089,808       1,058,766       1,110,801  
    Average shareholders’ equity     101,313       94,096       99,082       93,621  
    Nonperforming loans     27,754       44,206       27,754       44,206  
    Other real estate owned     5,130       –       –       –  
    Total nonperforming assets     32,884       44,206       32,884       44,206  
                     
    Selected Ratios:                
    (Loss) return on average assets (2)     -2.39 %     0.67 %     -0.34 %     0.95 %
    (Loss) return on average shareholders’ equity (2)     -25.94 %     8.02 %     -3.69 %     11.56 %
    Efficiency ratio (3)     112.47 %     67.47 %     87.47 %     61.60 %
    Net interest margin (2)     2.88 %     2.85 %     2.78 %     3.19 %
    Common equity tier 1 capital ratio     10.19 %     9.90 %     10.19 %     9.90 %
    Tier 1 capital ratio     10.19 %     9.90 %     10.19 %     9.90 %
    Total capital ratio     11.94 %     11.75 %     11.94 %     11.75 %
    Tier 1 leverage ratio     8.92 %     8.85 %     8.92 %     8.85 %
    Common dividend payout ratio (4)     0.00 %     42.63 %     -51.81 %     30.05 %
    Average shareholders’ equity to average assets     9.22 %     8.38 %     9.08 %     8.19 %
    Nonperforming loans to total loans     3.02 %     4.63 %     3.02 %     4.63 %
    Nonperforming assets to total assets     3.08 %     3.94 %     3.08 %     3.94 %
    Allowance for credit losses to total loans     1.50 %     1.60 %     1.50 %     1.60 %
    Allowance for credit losses to nonperforming loans     49.61 %     34.43 %     49.61 %     34.43 %
             
    (1) Total shareholders’ equity divided by total common shares outstanding.        
    (2) Annualized.        
    (3) Non-interest expenses to net interest and non-interest income, net of securities gains.            
    (4) Common dividends divided by net (loss) income available for common shareholders.        
             

    The MIL Network –

  • MIL-OSI Africa: Sonils Eyes Regional Growth, Steps Up as Champion Sponsor for Congo Energy & Investment Forum (CEIF) 2025

    Source: Africa Press Organisation – English (2) – Report:

    BRAZZAVILLE, Congo (Republic of the), January 28, 2025/APO Group/ —

    Angolan logistics provider Sonils has joined the upcoming Congo Energy & Investment Forum (CEIF) 2025 – taking place in Brazzaville from March 24-26 – as a Champion Sponsor. The inaugural CEIF conference will convene industry leaders, policymakers and stakeholders to explore investment opportunities and advancements within the Republic of Congo’s burgeoning energy sector.

    Sonils, which serves as the integrated logistics and services arm of Angola’s state-owned Sonangol, supports the country’s primary onshore oil and gas supply bases. The company provides support to Angola’s oil and gas industry through the provision of facilities and areas allocated for the management of the country’s offshore operations.

    The inaugural Congo Energy & Investment Forum, set for March 24-26, 2025, in Brazzaville, under the patronage of President Denis Sassou Nguesso and supported by the Ministry of Hydrocarbons and Société Nationale des Pétroles du Congo, will bring together international investors and local stakeholders to explore national and regional energy and infrastructure opportunities. The event will explore the latest gas-to-power projects and provide updates on ongoing expansions across the country.

    Sonils has a history of supporting regional oil production through services related to cargo handling, engineering and the development of specialized oil and gas facilities. By leveraging its established infrastructure and industry knowledge, the company is well-positioned to play a pivotal role in supporting the Congo’s energy sector growth.

    Having exported its first LNG cargo in February 2024 and with aims to double its crude oil production within the next three years, the Congo is well-positioned to leverage Sonils’ expertise in logistics and infrastructure development. The company’s experience in managing large-scale logistics operations can assist the Congo in efficiently handling increased production volumes and expanding its export capabilities.

    MIL OSI Africa –

  • MIL-OSI Security: North Battleford — Battlefords RCMP seek public’s help locating male wanted for aggravated assault

    Source: Royal Canadian Mounted Police

    On January 24, 2025 at approximately 9 p.m., Battlefords RCMP received a report of a serious assault at a residence on 18th Avenue in North Battleford.

    Officers immediately responded. Investigation determined an altercation occurred between two adult males. One stabbed the other, who was taken to hospital with injuries described as serious in nature.

    The suspect then fled the scene of the assault. It was determined he was on court-ordered conditions, including a curfew that was electronically monitored, and orders not to possess a knife.

    As a result of continued investigation, 25-year-old Keaton Nicotine from North Battleford is charged with:

    – one count, aggravated assault, Section 268(2), Criminal Code;

    – one count, uttering threats, Section 264.1(1)(a), Criminal Code; and

    – one count, fail to comply with release order condition, Section 145(5)(a), Criminal Code.

    A warrant has been issued for his arrest and Battlefords RCMP are actively working to locate him.

    Officers ask members of the public to report all sightings of Keaton Nicotine and information on his whereabouts.

    Keaton Nicotine is described as approximately 6′ tall and 180 lbs. He has brown hair and brown eyes.

    If you see him, do not approach him. Call Battlefords RCMP by dialling 310-RCMP. Information can also be submitted anonymously by contacting Saskatchewan Crime Stoppers at 1-800-222-TIPS (8477) or www.saskcrimestoppers.com.

    MIL Security OSI –

  • MIL-OSI Security: BATON ROUGE WOMAN SENTENCED TO 13 MONTHS IN FEDERAL PRISON FOR COVID-19 FRAUD

    Source: Office of United States Attorneys

    United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Gernesia Williams, 47, of Baton Rouge, to 13 months in federal prison following her conviction for knowing conversion of government funds. The Court further sentenced Williams to serve three years of supervised release following her term of imprisonment and ordered her to pay $110,030.47 in restitution.

    According to admissions made as part of her guilty plea, between approximately April 2020 and January 2023, Williams knowingly converted more than $100,000 in loan proceeds she obtained as part of the U.S. Small Business Administration’s COVID-19 Economic Injury Disaster Loan (“EIDL”) program for her own use. As a condition to obtaining the loans, she promised to use the proceeds solely as working capital to alleviate economic injury caused by the COVID-19 pandemic. Nevertheless, Williams misspent at least $110,030.47 of the loan proceeds on herself and others, including more than $30,000 on jewelry and more than $20,000 on a destination wedding in Florida. 

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

    This matter was investigated by the Federal Bureau of Investigation and the U.S. Treasury Inspector General for Tax Administration, and was prosecuted by Assistant United States Attorney Ben Wallace. 

    MIL Security OSI –

  • MIL-OSI: Jeremy Michael Joins Guggenheim Securities to Expand Energy Investment Banking Practice

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) — Guggenheim Securities, the investment banking and capital markets division of Guggenheim Partners, announced today that Jeremy Michael has joined the firm’s Energy, Power & Energy Transition investment banking business as a Senior Managing Director.

    Mr. Michael brings more than two decades of investment banking experience to Guggenheim with a focus on upstream, midstream, and downstream energy. He joins the firm from Barclays where he served as Global Head of Natural Resources Investment Banking advising industry-leading companies and leading sector-defining transactions.

    “We are pleased to welcome Jeremy to Guggenheim,” said Mark Van Lith, CEO of Guggenheim Securities. “Jeremy is a leading advisor in the energy sector and will play an important role as we continue to build our energy and power franchises. We look forward to his success at the firm.”

    Mr. Michael earned his B.A. from Vanderbilt University.

    About Guggenheim Securities

    Guggenheim Securities is the investment banking and capital markets business of Guggenheim Partners, a global investment and advisory firm. Guggenheim Securities offers services that fall into four broad categories: Advisory, Financing, Sales and Trading, and Research. Guggenheim Securities is headquartered in New York, with additional offices in Atlanta, Boston, Chicago, Houston, London, Menlo Park, and San Francisco. For more information, please visit GuggenheimSecurities.com, follow us on LinkedIn or contact us at GSinfo@GuggenheimPartners.com or 212.518.9200.

    About Guggenheim Partners

    Guggenheim Partners is a diversified financial services firm that delivers value to its clients through two primary businesses: Guggenheim Investments, a premier global asset manager and investment advisor, and Guggenheim Securities, a leading investment banking and capital markets business. Guggenheim’s professionals are based in offices around the world, and our commitment is to deliver long-term results with excellence and integrity while advancing the strategic interests of our clients. Learn more at GuggenheimPartners.com, and follow us on LinkedIn and Twitter @GuggenheimPtnrs.

    Media Contact

    Steven Lee
    Guggenheim Securities
    212.293.2811
    Steven.Lee@guggenheimpartners.com

    The MIL Network –

  • MIL-OSI Security: Airdrie — Airdrie RCMP search warrant leads to drug seizure

    Source: Royal Canadian Mounted Police

    On Nov. 28, 2024, the Airdrie RCMP Crime Reduction Unit paired up with the RCMP Special Investigation Sections, RCMP Emergency Response Team and Calgary Police Tactical Team, and executed a Controlled Drugs and Substances Act (CDSA) search warrant. The search warrant was for two residences located in the Temple and Huntington Hills neighbourhoods of Calgary.

    As a result of the investigation, police seized the following:

    • Canadian currency as proceeds of crime
    • Unstamped tobacco cigarettes
    • Suspected controlled substances including:
      • fentanyl, fentanyl pills, methamphetamine, powder and crack cocaine

    In addition, police located an illegal cannabis grow operation where 265 cannabis plants in various stages of growth were seized.

    A 52-year-old individual, a resident of Calgary, has been charged with the following offences:

    • Possession for the purpose of trafficking (x3)
    • Cultivate more than four cannabis plants
    • Selling tobacco products
    • Fraud under $5000 (defrauding the Government of Alberta for tobacco tax)
    • Possession of proceeds of crime over $5000
    • Theft of electricity

    The individual was taken before a justice of the peace and was released on a release order with conditions. The individual is scheduled to appear in court on Jan. 8, 2025, at the Calgary Courts Centre in Calgary, Alberta.

    MIL Security OSI –

  • MIL-OSI Africa: International Islamic Trade Finance Corporation (ITFC) Launches New Environmental and Social Policy to Drive Sustainable Trade

    Source: Africa Press Organisation – English (2) – Report:

    JEDDAH, Saudi Arabia, January 28, 2025/APO Group/ —

    The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), member of the Islamic Development Bank Group (IsDB), unveiled its new Environmental and Social (ES) policy. This policy reinforces ITFC’s commitment to embedding sustainable practices across its trade finance operations, recognizing the essential role trade finance and trade development can play in mitigating climate change and promoting social equity.  

    ITFC’s member countries are among the most vulnerable to climate change, social challenges, and economic inequality. This ongoing climate crisis requires  urgent action. With trade being responsible for 20-30% of global CO₂ emissions, ITFC is aligning its operations with international frameworks such as the Paris Agreement and the United Nations Sustainable Development Goals (SDGs) to make trading greener in its markets of operations. By championing responsible and inclusive trade finance, ITFC aims to reduce its carbon footprint while supporting its member countries in achieving sustainable economic growth. 

    This new ES policy is focused on 5 key areas: 

    • Environmental Action. ITFC is proactively incorporating green practices throughout every aspect of its operations and work environment. By prioritizing digitization, implementing paperless solutions, and enhancing energy efficiency, we aim to lead by example in embracing environmentally responsible initiatives and  demonstrating our commitment to sustainability.  

    • Sustainable and Inclusive Trade Finance. ITFC aims to increase its share of financing in goods and services that promote sustainability. By prioritizing sectors that strengthen resilience, such as sustainable agriculture, financial inclusion, and eco-friendly supply chains, ITFC is contributing to sustainable and inclusive growth in our member countries. 

    • Empowering for Sustainable Impact. Through capacity-building programs and technical assistance, ITFC will help businesses and governments reduce climate risks, advance social inclusion, and access green financing opportunities. 

    • Innovative Treasury Solutions. ITFC is dedicated to increasing investment in Shariah-compliant sustainable financial instruments, including exploring the issuance of green Sukuk to bolster climate-resilient trade and development for ITFC member countries.  

    • Credible Assessment and Disclosure. ITFC is committed to adopting best practices to embed environmental and social considerations in its transactions and projects. We aim to transparently disclose our ES performance, adhering to international best practices, promote accountability and build trust with our stakeholders. 

    On this note, Eng. Hani Salem Sonbol, CEO ITFC stated: “Our work in some of the world’s most climate-vulnerable regions have given us firsthand insight into the reality of climate change. From rural landscapes to urban centers, we are witnessing the effects of an accelerating environmental shift and as we remain true to our commitment to powering sustainable growth, it has become imperative for the Corporation to fully streamline and operationalize its new direction towards sustainability and climate change.” 

    ITFC’s new environmental and social policy reflects its vision to foster economic growth that is both inclusive and sustainable, setting a new standard for trade finance institutions globally. ITFC remains committed to fostering intra-OIC trade, enhancing member countries’ capacities to adopt green energy solutions. 

    MIL OSI Africa –

  • MIL-OSI: Coastal Financial Corporation Announces Fourth Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    EVERETT, Wash., Jan. 28, 2025 (GLOBE NEWSWIRE) — Coastal Financial Corporation (Nasdaq: CCB) (the “Company”, “Coastal”, “we”, “our”, or “us”), the holding company for Coastal Community Bank (the “Bank”), through which it operates a community-focused bank with an industry leading banking as a service (“BaaS”) segment, today reported unaudited financial results for the quarter ended December 31, 2024, including net income of $13.4 million, or $0.94 per diluted common share, compared to $13.5 million, or $0.97 per diluted common share, for the three months ended September 30, 2024 and $45.2 million, or $3.26 per diluted common share, for the year ended December 31, 2024, compared to $44.6 million, or $3.27 per diluted common share for the year ended December 31, 2023.

    Management Discussion of the Quarter and Full-year Results

    “2024 was highlighted by the completion of our $98.0 million capital raise during the fourth quarter, which we will utilize to support growth of the Bank including in our CCBX segment,” said CEO Eric Sprink. “We saw high quality net loan growth of $67.7 million despite selling $845.5 million in loans during the fourth quarter, and our CCBX program fee income continued to increase which was up 56.9% for full-year 2024 relative to the prior year. We continue to invest heavily in CCBX to support future growth, and we are pleased to have three letters of intent (“LOI”) signed going into 2025 with an active pipeline.”

    Key Points for Fourth Quarter and Our Go-Forward Strategy

    • Completed Capital Raise Allows CCBX Growth to Continue. During the fourth quarter of 2024, we completed a $98.0 million common equity raise, which was priced at $71.00/share. Proceeds will be used for general corporate purposes and to support growth of the Bank including in our CCBX segment. As of December 31, 2024 we had three signed LOIs and continue to have an active pipeline for 2025. The growth in common-equity tier 1 and total risk-based capital to 12.04% and 14.67%, respectively, includes the benefit of the capital raise.
    • Strong Annual Growth in CCBX Program Fees. Total BaaS program fee income was $25.6 million for the year ended December 31, 2024, an increase of $9.3 million, or 56.9%, from the year ended December 31, 2023, and is representative of growth in partner transaction activity and expanded product offerings within our CCBX operating segment. Trends in CCBX noninterest income were also positive during the quarter, with total program fees of $8.2 million for the three months ended December 31, 2024, an increase of $1.8 million, or 27.6%, from the three months ended September 30, 2024.
    • Investments for Growth Continues. Total non-interest expense of $64.2 million was down $1.4 million, or 2.1%, as compared to $65.6 million in the third quarter of 2024, mainly driven by lower BaaS loan expense, partially offset by higher salaries and employee benefits, point of sale expense, and legal and professional expenses. As we increase the number of new CCBX partners and programs launching in 2025, we expect that expenses will tend to be front-loaded with a focus on compliance and operational risk before any new program reaches significant revenues.
    • Off Balance Sheet Activity Update. During the fourth quarter of 2024, we sold $845.5 million of loans, the majority of which were credit card receivables, and swept $273.2 million of deposits off balance-sheet. We are able to retain a portion of the fee income on these sold credit card loans. As of December 31, 2024 there were 182,449 credit cards with fee earning potential, an increase of 101,023 compared to the quarter ended September 30, 2024 and an increase of 172,400 from December 31, 2023.
    • Continued Monitoring of CCBX Risk. We remain fully indemnified against fraud and 98.7% indemnified against credit risk with our CCBX partners as of year-end of 2024.

    Fourth Quarter 2024 Financial Highlights

    The tables below outline some of our key operating metrics.

      Three Months Ended
    (Dollars in thousands, except share and per share data; unaudited) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Income Statement Data:                  
    Interest and dividend income $ 96,587     $ 105,079     $ 97,487     $ 90,472     $ 88,243  
    Interest expense   30,071       32,892       31,250       29,536       28,586  
    Net interest income   66,516       72,187       66,237       60,936       59,657  
    Provision for credit losses   61,867       70,257       62,325       83,158       60,789  
    Net interest (expense)/ income after provision for credit losses   4,649       1,930       3,912       (22,222 )     (1,132 )
    Noninterest income   76,756       80,068       69,918       86,955       64,694  
    Noninterest expense   64,206       65,616       58,809       56,018       51,703  
    Provision for income tax   3,832       2,926       3,425       1,915       2,847  
    Net income   13,367       13,456       11,596       6,800       9,012  
                       
      As of and for the Three Month Period
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Balance Sheet Data:                  
    Cash and cash equivalents $ 452,513     $ 484,026     $ 487,245     $ 515,128     $ 483,128  
    Investment securities   47,321       48,620       49,213       50,090       150,364  
    Loans held for sale   20,600       7,565       —       797       —  
    Loans receivable   3,486,565       3,418,832       3,326,460       3,199,554       3,026,092  
    Allowance for credit losses   (176,994 )     (170,263 )     (147,914 )     (139,258 )     (116,958 )
    Total assets   4,121,208       4,065,821       3,961,546       3,865,258       3,753,366  
    Interest bearing deposits   3,057,808       3,047,861       2,949,643       2,888,867       2,735,161  
    Noninterest bearing deposits   527,524       579,427       593,789       574,112       625,202  
    Core deposits (1)   3,123,434       3,190,869       3,528,339       3,447,864       3,342,004  
    Total deposits   3,585,332       3,627,288       3,543,432       3,462,979       3,360,363  
    Total borrowings   47,884       47,847       47,810       47,771       47,734  
    Total shareholders’ equity   438,704       331,930       316,693       303,709       294,978  
                       
    Share and Per Share Data (2):                  
    Earnings per share – basic $ 0.97     $ 1.00     $ 0.86     $ 0.51     $ 0.68  
    Earnings per share – diluted $ 0.94     $ 0.97     $ 0.84     $ 0.50     $ 0.66  
    Dividends per share   —       —       —       —       —  
    Book value per share (3) $ 29.37     $ 24.51     $ 23.54     $ 22.65     $ 22.17  
    Tangible book value per share (4) $ 29.37     $ 24.51     $ 23.54     $ 22.65     $ 22.17  
    Weighted avg outstanding shares – basic   13,828,605       13,447,066       13,412,667       13,340,997       13,286,828  
    Weighted avg outstanding shares – diluted   14,268,229       13,822,270       13,736,508       13,676,917       13,676,513  
    Shares outstanding at end of period   14,935,298       13,543,282       13,453,805       13,407,320       13,304,339  
    Stock options outstanding at end of period   186,354       198,370       286,119       309,069       354,969  

    See footnotes that follow the tables below

      As of and for the Three Month Period
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Credit Quality Data:                  
    Nonperforming assets (5) to total assets   1.52 %     1.63 %     1.34 %     1.42 %     1.43 %
    Nonperforming assets (5) to loans receivable and OREO   1.80 %     1.94 %     1.60 %     1.71 %     1.78 %
    Nonperforming loans (5) to total loans receivable   1.80 %     1.94 %     1.60 %     1.71 %     1.78 %
    Allowance for credit losses to nonperforming loans   282.5 %     256.5 %     278.1 %     253.8 %     217.2 %
    Allowance for credit losses to total loans receivable   5.08 %     4.98 %     4.45 %     4.35 %     3.86 %
    Gross charge-offs $ 61,585     $ 53,305     $ 55,207     $ 58,994     $ 47,652  
    Gross recoveries $ 5,646     $ 4,069     $ 1,973     $ 1,776     $ 2,781  
    Net charge-offs to average loans (6)   6.51 %     5.65 %     6.57 %     7.34 %     5.92 %
                       
    Capital Ratios:                  
    Company                  
    Tier 1 leverage capital   10.78 %     8.40 %     8.31 %     8.24 %     8.10 %
    Common equity Tier 1 risk-based capital   12.04 %     9.24 %     9.03 %     8.98 %     9.10 %
    Tier 1 risk-based capital   12.14 %     9.34 %     9.13 %     9.08 %     9.20 %
    Total risk-based capital   14.67 %     11.89 %     11.70 %     11.70 %     11.87 %
    Bank                  
    Tier 1 leverage capital   10.64 %     9.29 %     9.24 %     9.19 %     9.06 %
    Common equity Tier 1 risk-based capital   11.99 %     10.34 %     10.15 %     10.14 %     10.30 %
    Tier 1 risk-based capital   11.99 %     10.34 %     10.15 %     10.14 %     10.30 %
    Total risk-based capital   13.28 %     11.63 %     11.44 %     11.43 %     11.58 %

    (1) Core deposits are defined as all deposits excluding brokered and time deposits.
    (2) Share and per share amounts are based on total actual or average common shares outstanding, as applicable.
    (3) We calculate book value per share as total shareholders’ equity at the end of the relevant period divided by the outstanding number of our common shares at the end of each period.
    (4) Tangible book value per share is a non-GAAP financial measure. We calculate tangible book value per share as total shareholders’ equity at the end of the relevant period, less goodwill and other intangible assets, divided by the outstanding number of our common shares at the end of each period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets as of any of the dates indicated. As a result, tangible book value per share is the same as book value per share as of each of the dates indicated.
    (5) Nonperforming assets and nonperforming loans include loans 90+ days past due and accruing interest.
    (6) Annualized calculations.

    Key Performance Ratios

    Return on average assets (“ROA”) was 1.30% for the quarter ended December 31, 2024 compared to 1.34% and 0.97% for the quarters ended September 30, 2024 and December 31, 2023, respectively.  ROA for the quarter ended December 31, 2024, decreased 0.04% and increased 0.33% compared to September 30, 2024 and December 31, 2023, respectively. Noninterest expenses were lower for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 largely due to a decrease in BaaS loan expense, which is directly related to the amount of interest earned on CCBX loans, and higher than the quarter ended December 31, 2023 largely due to an increase in salaries and employee benefits, data processing and software licenses, legal and professional expenses and point of sale expenses, all of which are related to the growth of Company and investments in technology and risk management.

    Yield on earning assets and yield on loans receivable decreased 1.14% and 0.99%, respectively, for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024. This decrease is due to a combination of factors. We continue to refine our credit approach with partners, widening the scope of loans that we are moving to nonaccrual, which decreased loan interest income in the quarter ended December 31, 2024 as compared to prior quarters. Average loans receivable as of December 31, 2024 decreased $45.4 million compared to September 30, 2024 as we continue to sell CCBX loans as part of our on-going strategy to manage the loan portfolio and credit quality. New loans are being booked with enhanced credit standards, which typically results in a lower interest rate than some of the higher risk loans that have paid off or we have chosen to sell.

    The following table shows the Company’s key performance ratios for the periods indicated.  

        Three Months Ended   Twelve Months Ended
    (unaudited)   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
                                 
    Return on average assets (1)   1.30%   1.34%   1.21%   0.73%   0.97%   1.15%   1.28%
    Return on average equity (1)   14.90%   16.67%   15.22%   9.21%   12.35%   14.11%   16.41%
    Yield on earnings assets (1)   9.65%   10.79%   10.49%   10.07%   9.77%   10.25%   9.82%
    Yield on loans receivable (1)   10.44%   11.43%   11.23%   10.85%   10.71%   10.99%   10.60%
    Cost of funds (1)   3.24%   3.62%   3.60%   3.52%   3.39%   3.49%   2.91%
    Cost of deposits (1)   3.21%   3.59%   3.58%   3.49%   3.36%   3.46%   2.87%
    Net interest margin (1)   6.65%   7.41%   7.13%   6.78%   6.61%   6.99%   7.10%
    Noninterest expense to average assets (1)   6.23%   6.54%   6.14%   6.04%   5.56%   6.24%   5.90%
    Noninterest income to average assets (1)   7.45%   7.98%   7.30%   9.38%   6.95%   8.00%   5.97%
    Efficiency ratio   44.81%   43.10%   43.19%   37.88%   41.58%   42.21%   45.92%
    Loans receivable to deposits (2)   97.82%   94.46%   93.88%   92.42%   90.05%   97.8%   90.1%

    (1) Annualized calculations shown for quarterly periods presented.
    (2) Includes loans held for sale.

    Management Outlook; CEO Eric Sprink

    “As we look forward to 2025, our strategy involves selectively expanding our current base of CCBX partners while continuing to invest in and enhance our technology and risk management infrastructure. This will enable us to support the next phase of growth within CCBX more efficiently. Additionally, we are focused on growing noninterest income through increased transaction activity and new product offerings with our established partners. We plan to continue selling credit card loans while retaining a portion of the fee income for our role in processing transactions, which offers an additional source of noninterest income without adding on-balance-sheet risk. We believe that by increasing noninterest income, we can mitigate the uncertainties associated with fluctuating interest rates and provide a more stable income stream in the future.” said CEO Eric Sprink.

    Coastal Financial Corporation Overview

    The Company has one main subsidiary, the Bank which consists of three segments: CCBX, the community bank and treasury & administration.  The CCBX segment includes all of our BaaS activities, the community bank segment includes all community banking activities, and the treasury & administration segment includes treasury management, overall administration and all other aspects of the Company.  

    CCBX Performance Update

    Our CCBX segment continues to evolve, and we have 24 relationships, at varying stages, including three signed letters of intent as of December 31, 2024.  We continue to refine the criteria for CCBX partnerships, exploring relationships with larger more established partners, with experienced management teams, existing customer bases and strong financial positions and will continue to exit relationships where it makes sense for us to do so.

    As we explore relationships with new partners we plan to continue expanding product offerings with our existing CCBX partners. As we become more proficient in the BaaS space we aim to cultivate new relationships that align with our long-term goals. We believe that a strategy of adding new partnerships and launching new products with existing partners positions us to reach a wide and established customer base with a modest increase in regulatory risk given that we have already vetted existing partners and have an operational history. Increases in partner activity/transaction counts is positively impacting noninterest income and we expect that trend to continue as products launched earlier in the year gain traction. We plan to continue selling loans as part of our strategy to balance partner and lending limits, and manage the loan portfolio and credit quality. We retain a portion of the fee income for our role in processing transactions on sold credit card balances, and plan to continue this strategy to provide an on-going and passive revenue stream with no on balance sheet risk.

    The following table illustrates the activity and evolution in CCBX relationships for the periods presented.

      As of
    (unaudited) December 31,
    2024    		 September 30,
    2024    		 December 31,
    2023
    Active 19 19 19
    Friends and family / testing 1 1 1
    Implementation / onboarding 1 1 1
    Signed letters of intent 3 1 0
    Wind down – active but preparing to exit relationship 0 0 0
    Total CCBX relationships 24 22 21
           

    CCBX loans increased $82.3 million, or 5.4%, to $1.60 billion despite selling $845.5 million loans during the three months ended December 31, 2024. In accordance with the program agreement for one partner, effective April 1, 2024, the portion of the CCBX portfolio that we are responsible for losses on decreased from 10% to 5%. At December 31, 2024 the portion of this portfolio for which we are responsible represented $20.6 million in loans.

    The following table details the CCBX loan portfolio:

    CCBX   As of
        December 31, 2024   September 30, 2024   December 31, 2023
    (dollars in thousands; unaudited)   Balance   % to Total   Balance   % to Total   Balance   % to Total
    Commercial and industrial loans:                        
    Capital call lines   $ 109,017     6.8 %   $ 103,924     6.8 %   $ 87,494     7.3 %
    All other commercial & industrial loans     33,961     2.1       36,494     2.4       54,298     4.5  
    Real estate loans:                        
    Residential real estate loans     267,707     16.7       265,402     17.5       238,035     19.9  
    Consumer and other loans:                        
    Credit cards     528,554     33.0       633,691     41.6       505,837     42.3  
    Other consumer and other loans     664,780     41.4       482,228     31.7       310,574     26.0  
    Gross CCBX loans receivable     1,604,019     100.0 %     1,521,739     100.0 %     1,196,238     100.0 %
    Net deferred origination (fees) costs     (442 )         (447 )         (300 )    
    Loans receivable   $ 1,603,577         $ 1,521,292         $ 1,195,938      
    Loan Yield – CCBX (1)(2)     15.28 %         17.35 %         17.36 %    
                             

    (1) CCBX yield does not include the impact of BaaS loan expense.  BaaS loan expense represents the amount paid or payable to partners for credit enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
    (2) Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

    The increase in CCBX loans in the quarter ended December 31, 2024, includes an increase of $77.4 million or 6.9%, in consumer and other loans, an increase of $5.1 million, or 4.9%, in capital call lines as a result of normal balance fluctuations and business activities, and an increase of $2.3 million, or 0.9%, in residential real estate loans. We continue to monitor and manage the CCBX loan portfolio, and sold $845.5 million in CCBX loans during the quarter ended December 31, 2024 compared to sales of $423.7 million in the quarter ended September 30, 2024. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio and generate off balance sheet fee income.

    CCBX loan yield decreased 2.06% for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 as a result of our widening the scope of loans that we are moving to nonaccrual, which decreased loan interest income in the quarter ended December 31, 2024. Also contributing to the decrease are lower interest rates on new CCBX loans, which are replacing higher risk and higher rate loans that have paid off or were sold as part of our strategy to manage the loan portfolio and credit quality. The recent decrease in the Fed funds interest rate further contributed to the change.

    The following chart show the growth in credit card accounts that we are able to generate fee income from. This includes accounts with balances, which are included in our loan totals, and accounts that have been sold and have no corresponding balance in our loan totals, but that we are still able to generate fee income on.

    The following table details the CCBX deposit portfolio:

    CCBX   As of
        December 31, 2024   September 30, 2024   December 31, 2023
    (dollars in thousands; unaudited)   Balance   % to Total   Balance   % to Total   Balance   % to Total
    Demand, noninterest bearing   $ 55,686     2.7 %   $ 60,655     2.9 %   $ 63,630     3.4 %
    Interest bearing demand and
    money market    		     1,958,459     94.9       1,991,858     94.6       1,794,168     96.3  
    Savings     5,710     0.3       5,204     0.3       4,964     0.3  
    Total core deposits     2,019,855     97.9       2,057,717     97.8       1,862,762     100.0  
    Other deposits     44,233     2.1       47,046     2.2       —     —  
    Total CCBX deposits   $ 2,064,088     100.0 %   $ 2,104,763     100.0 %   $ 1,862,762     100.0 %
    Cost of deposits (1)     4.19 %         4.82 %         4.90 %    

    (1)  Cost of deposits is annualized for the three months ended for each period presented.

    CCBX deposits decreased $40.7 million, or 1.9%, in the three months ended December 31, 2024 to $2.06 billion as a result of normal balance fluctuations. This excludes the $273.2 million in CCBX deposits that were transferred off balance sheet for increased Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and sweep purposes, compared to $214.5 million for the quarter ended September 30, 2024. Amounts in excess of FDIC insurance coverage are transferred, using a third party facilitator/vendor sweep product, to participating financial institutions.

    Community Bank Performance Update

    In the quarter ended December 31, 2024, the community bank saw net loans decrease $14.6 million, or 0.8%, to $1.88 billion.

    The following table details the Community Bank loan portfolio:

    Community Bank   As of
        December 31, 2024   September 30, 2024   December 31, 2023
    (dollars in thousands; unaudited)   Balance   % to Total   Balance   % to Total   Balance   % to Total
    Commercial and industrial loans   $ 150,395     8.0 %   $ 152,161     8.0 %   $ 149,502     8.2 %
    Real estate loans:                        
    Construction, land and land development loans     148,198     7.8       163,051     8.6       157,100     8.5  
    Residential real estate loans     202,064     10.7       212,467     11.2       225,391     12.3  
    Commercial real estate loans     1,374,801     72.8       1,362,452     71.5       1,303,533     70.9  
    Consumer and other loans:                        
    Other consumer and other loans     13,542     0.7       14,173     0.7       1,628     0.1  
    Gross Community Bank loans receivable     1,889,000     100.0 %     1,904,304     100.0 %     1,837,154     100.0 %
    Net deferred origination fees     (6,012 )         (6,764 )         (7,000 )    
    Loans receivable   $ 1,882,988         $ 1,897,540         $ 1,830,154      
    Loan Yield(1)     6.53 %         6.64 %         6.32 %    

    (1) Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

    Community bank loans decreased $14.9 million in construction, land and land development loans, decreased $1.8 million in commercial and industrial loans and decreased $631,000 in consumer and other loans, and were partially offset by an increase in commercial real estate loans of $12.3 million during the quarter ended December 31, 2024.

    The following table details the community bank deposit portfolio:

    Community Bank   As of
        December 31, 2024   September 30, 2024   December 31, 2023
    (dollars in thousands; unaudited)   Balance   % to Total   Balance   % to Total   Balance   % to Total
    Demand, noninterest bearing   $ 471,838     31.0 %   $ 518,772     34.1 %   $ 561,572     37.5 %
    Interest bearing demand and money market     570,625     37.5       552,108     36.3       846,072     56.5  
    Savings     61,116     4.0       62,272     4.1       71,598     4.8  
    Total core deposits     1,103,579     72.5       1,133,152     74.5       1,479,242     98.8  
    Other deposits     400,118     26.3       373,681     24.5       1     0.0  
    Time deposits less than $100,000     5,920     0.4       6,305     0.4       8,109     0.5  
    Time deposits $100,000 and over     11,627     0.8       9,387     0.6       10,249     0.7  
    Total Community Bank deposits   $ 1,521,244     100.0 %   $ 1,522,525     100.0 %   $ 1,497,601     100.0 %
    Cost of deposits(1)     1.86 %         1.92 %         1.57 %    

    (1) Cost of deposits is annualized for the three months ended for each period presented.

    Community bank deposits decreased $1.3 million, or 0.1%, during the three months ended December 31, 2024 to $1.52 billion as result of normal balance fluctuations. The community bank segment includes noninterest bearing deposits of $471.8 million, or 31.0%, of total community bank deposits, resulting in a cost of deposits of 1.86%, which compared to 1.92% for the quarter ended September 30, 2024, largely due to the decreases in the Fed funds rate late in the third quarter and during the fourth quarter of 2024. The cost of community bank deposits are projected to decline further as the Fed funds rate had a decrease of 0.25%, which occurred in December 2024 and the full quarterly effect of that decrease will not be recognized until the first quarter of 2025.

    Net Interest Income and Margin Discussion

    Net interest income was $66.5 million for the quarter ended December 31, 2024, a decrease of $5.7 million, or 7.9%, from $72.2 million for the quarter ended September 30, 2024, and an increase of $6.9 million, or 11.5%, from $59.7 million for the quarter ended December 31, 2023. The decrease in net interest income compared to September 30, 2024, was a result of a decrease in average loans receivable as a result of selling $845.5 million in CCBX loans during the quarter ended December 31, 2024, the recent decrease in the Fed funds interest rate, and continued enhancements to our partner credit practices that resulted in a reduction of interest income on loans. The increase in net interest income compared to December 31, 2023 was largely related to increased yield on loans resulting from higher interest rates and growth in higher yielding loans, partially offset by an increase in cost of funds relating to higher interest rates and growth in interest bearing deposits.  

    Net interest margin was 6.65% for the three months ended December 31, 2024, compared to 7.41% for the three months ended September 30, 2024, largely due to lower loan yield. Net interest margin, net of BaaS loan expense, (A reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release.) was 4.16% for the three months ended December 31, 2024, compared to 4.06% for the three months ended September 30, 2024. Net interest margin was 6.61% for the three months ended December 31, 2023. The increase in net interest margin for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely due to an increase in loan yield, partially offset by higher interest rates on interest bearing deposits. Interest and fees on loans receivable decreased $9.9 million, or 9.9%, to $89.7 million for the three months ended December 31, 2024, compared to $99.6 million for the three months ended September 30, 2024, as a result of loan sales and a decrease in the Fed funds interest rate. Additionally, as we continue to refine our credit approach with partners, we are widening the scope of loans that we are moving to nonaccrual which decreased interest income in the quarter ended December 31, 2024 and lowered loan yield and net interest margin; however this also decreased BaaS loan expense (which is in noninterest expense) resulting in no impact to net income. Interest and fees on loans receivable increased $8.6 million, or 10.5%, compared to $81.2 million for the three months ended December 31, 2023, due to an increase in outstanding balances and higher interest rates. Net interest margin, net of Baas loan expense (A reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release.) increased 0.10% for the three months ended December 31, 2024, compared to the three months ended September 30, 2024 and increased 0.25% compared the three months ended December 31, 2023.

    The following tables illustrate how net interest margin and loan yield is affected by BaaS loan expense:

    Consolidated   As of and for the Three Months Ended As of and for the Twelve
    Months Ended
    (dollars in thousands; unaudited)   December 31
    2024    		   September 30
    2024    		   December 31
    2023    		 December 31
    2024    		   December 31
    2023
    Net interest margin, net of BaaS loan expense:              
    Net interest margin (1)     6.65 %     7.41 %     6.61 %   6.99 %     7.10 %
    Earning assets     3,980,078       3,875,911       3,581,772     3,802,275       3,364,406  
    Net interest income (GAAP)     66,516       72,187       59,657     265,876       238,727  
    Less: BaaS loan expense     (24,859 )     (32,612 )     (24,310 )   (111,384 )     (86,900 )
    Net interest income, net of BaaS loan expense(2)   $ 41,657     $ 39,575     $ 35,347   $ 154,492     $ 151,827  
    Net interest margin, net of BaaS loan expense (1)(2)     4.16 %     4.06 %     3.92 %   4.06 %     4.51 %
    Loan income net of BaaS loan expense divided by average loans:         
    Loan yield (GAAP)(1)     10.44 %     11.43 %     10.71 %   10.99 %     10.60 %
    Total average loans receivable   $ 3,419,476     $ 3,464,871     $ 3,007,289   $ 3,320,582     $ 2,936,908  
    Interest and earned fee income on loans (GAAP)     89,714       99,590       81,159     364,869       311,441  
    BaaS loan expense     (24,859 )     (32,612 )     (24,310 )   (111,384 )     (86,900 )
    Net loan income(2)   $ 64,855     $ 66,978     $ 56,849   $ 253,485     $ 224,541  
    Loan income, net of BaaS loan expense, divided by average loans (1)(2)     7.55 %     7.69 %     7.50 %   7.63 %     7.65 %

    (1) Annualized calculations shown for periods presented.
    (2) A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

    Average investment securities decreased $820,000 to $48.2 million compared to the three months ended September 30, 2024 and decreased $101.5 million compared to the three months ended December 31, 2023 as a result of principal paydowns and maturing securities.

    Cost of funds was 3.24% for the quarter ended December 31, 2024, a decrease of 38 basis points from the quarter ended September 30, 2024 and a decrease of 16 basis points from the quarter ended December 31, 2023. Cost of deposits for the quarter ended December 31, 2024 was 3.21%, compared to 3.59% for the quarter ended September 30, 2024, and 3.36% for the quarter ended December 31, 2023. The decreased cost of funds and deposits compared to September 30, 2024 and December 31, 2023 was largely due to the recent reductions in the Fed funds rate.

    The following table summarizes the average yield on loans receivable and cost of deposits:

      For the Three Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023
      Yield on
    Loans (2)    		   Cost of
    Deposits (2)    		   Yield on
    Loans (2)    		   Cost of
    Deposits (2)    		   Yield on
    Loans (2)    		   Cost of
    Deposits (2)
    Community Bank 6.53%   1.86%   6.64%   1.92%   6.32%   1.57%
    CCBX (1) 15.28%   4.19%   17.35%   4.82%   17.36%   4.90%
    Consolidated 10.44%   3.21%   11.43%   3.59%   10.71%   3.36%

    (1) Annualized calculations for periods shown for credit and fraud enhancements and originating & servicing CCBX loans.  To determine Net BaaS loan income earned from CCBX loan relationships, the Company takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income which can be compared to interest income on the Company’s community bank loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
    (2) Annualized calculations for periods shown.

    The following table illustrates how BaaS loan interest income is affected by BaaS loan expense resulting in net BaaS loan income and the associated yield:

        For the Three Months Ended
        December 31, 2024   September 30, 2024   December 31, 2023
    (dollars in thousands, unaudited)   Income /
    Expense    		   Income /
    expense divided
    by average
    CCBX loans     (2)    		   Income /
    Expense    		   Income /
    expense divided
    by average
    CCBX loans    (2)    		   Income /
    Expense    		   Income /
    expense divided
    by average
    CCBX loans     (2)
    BaaS loan interest income   $ 58,671   15.28%   $ 67,692   17.35 %   $ 52,327   17.36%
    Less: BaaS loan expense     24,859   6.48%     32,612   8.36 %     24,310   8.06%
    Net BaaS loan income (1)   $ 33,812   8.81%   $ 35,080   8.99 %   $ 28,017   9.30%
    Average BaaS Loans(3)   $ 1,527,178       $ 1,552,443       $ 1,196,137    

    (1) A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
    (2) Annualized calculations shown for quarterly periods presented.
    (3) Includes loans held for sale.

    Noninterest Income Discussion

    Noninterest income was $76.8 million for the three months ended December 31, 2024, a decrease of $3.3 million from $80.1 million for the three months ended September 30, 2024, and an increase of $12.1 million from $64.7 million for the three months ended December 31, 2023. The decrease in noninterest income for the quarter ended December 31, 2024 as compared to the quarter ended September 30, 2024 was primarily due to a decrease of $3.3 million in total BaaS income. The $3.3 million decrease in total BaaS income included an $8.0 million decrease in BaaS credit enhancements related to the provision for credit losses, partially offset by a a $3.0 million increase in BaaS fraud enhancements and an increase of $1.8 million in BaaS program income. The $1.8 million increase in BaaS program income is largely due to higher reimbursement of expenses as well as an increase in transaction fees and interchange fees, our primary BaaS source for recurring fee income, as well as higher reimbursement of expenses (see “Appendix B” for more information on the accounting for BaaS allowance for credit losses and credit and fraud enhancements).

    The $12.1 million increase in noninterest income over the quarter ended December 31, 2023 was primarily due to a $7.9 million increase in BaaS credit and fraud enhancements and an increase of $3.8 million in BaaS program income.

    Noninterest Expense Discussion
    Total noninterest expense decreased $1.4 million to $64.2 million for the three months ended December 31, 2024, compared to $65.6 million for the three months ended September 30, 2024, and increased $12.5 million from $51.7 million for the three months ended December 31, 2023. The decrease in noninterest expense for the quarter ended December 31, 2024, as compared to the quarter ended September 30, 2024, was primarily due to a $4.8 million decrease in BaaS expense from a $7.8 million decrease in BaaS loan expense, partially offset by a $3.0 million increase in BaaS fraud expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, and originating & servicing CCBX loans. BaaS fraud expense represents non-credit fraud losses on partner’s customer loan and deposit accounts. A portion of this expense is realized during the quarter in which the loss occurs, and a portion is estimated based on historical or other information from our partners. Other variances that partially offset the net decrease in noninterest expense include an increase of $1.4 million in point of sale expenses as a result of increased partner transaction activity, an increase of $893,000 in salaries and employee benefits and an increase of $1.0 million in legal and professional fees as part of our continued investments in technology and risk management.

    The increase in noninterest expenses for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023 was largely due to an increase of $4.8 million in BaaS partner expense primarily from a $4.3 million increase in BaaS fraud expense, a $549,000 increase in BaaS loan expense, a $2.0 million increase in legal and professional expenses, a $1.8 million increase in point of sale expenses, a $1.5 million increase in salary and employee benefits, and a $1.2 million increase in data processing and software licenses due to enhancements in technology.

    Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and all reimbursement of expenses from our CCBX partner in noninterest income. The following table reflects the portion of noninterest expenses that are reimbursed by partners to assist the understanding of how the increases in noninterest expense are related to expenses incurred for and reimbursed by CCBX partners:

        Three Months Ended
        December 31,   September 30,   December 31,
    (dollars in thousands; unaudited)   2024   2024   2023
    Total noninterest expense (GAAP)   $ 64,206   $ 65,616   $ 51,703
    Less: BaaS loan expense     24,859     32,612     24,310
    Less: BaaS fraud expense     5,043     2,084     779
    Less: Reimbursement of expenses (Baas)     3,468     1,843     1,076
    Noninterest expense, net of Baas loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) (1)   $ 30,836   $ 29,077   $ 25,538

    (1) A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

    Provision for Income Taxes

    The provision for income taxes was $3.8 million for the three months ended December 31, 2024, $2.9 million for the three months ended September 30, 2024 and $2.8 million for the fourth quarter of 2023.  The income tax provision was higher for the three months ended December 31, 2024 compared to the quarter ended September 30, 2024 as a result of the deductibility of certain equity awards which reduced tax expense during the quarter ended September 30, 2024 compared to the quarter ended December 31, 2024 despite net income being higher fairly even, and higher than the quarter ended December 31, 2023, primarily due to higher net income compared to that quarter, partially offset by the deductibility of certain equity awards.

    The Company is subject to various state taxes that are assessed as CCBX activities and employees expand into other states, which has increased the overall tax rate used in calculating the provision for income taxes in the current and future periods. The Company uses a federal statutory tax rate of 21.0% as a basis for calculating provision for federal income taxes and 2.63% for calculating the provision for state income taxes.

    Financial Condition Overview

    Total assets increased $55.4 million, or 1.4%, to $4.12 billion at December 31, 2024 compared to $4.07 billion at September 30, 2024.  The increase is primarily due to stronger loan growth, partially offset by lower cash balances. Total loans receivable increased $67.7 million to $3.49 billion at December 31, 2024, from $3.42 billion at September 30, 2024.

    As of December 31, 2024, the Company had the capacity to borrow up to a total of $642.1 million from the Federal Reserve Bank discount window and Federal Home Loan Bank, and an additional $50.0 million from a correspondent bank. There were no borrowings outstanding on these lines as of December 31, 2024.

    The Company completed a $98.0 million capital raise during the quarter ended December 31, 2024. After contributing $50.0 million to the Bank, the Company had a cash balance of $47.7 million as of December 31, 2024, which is retained for general operating purposes, including debt repayment, and for funding $480,000 in commitments to bank technology investment funds.  

    Uninsured deposits were $543.0 million as of December 31, 2024, compared to $542.2 million as of September 30, 2024.

    Total shareholders’ equity as of December 31, 2024 increased $106.8 million since September 30, 2024.  The increase in shareholders’ equity was primarily due to an increase of $93.4 million in common stock outstanding as a result of the aforementioned capital raise and, to a lessor extent, equity awards exercised during the three months ended December 31, 2024 combined with $13.4 million in net earnings.

    The Company and the Bank remained well capitalized at December 31, 2024, as summarized in the following table.

    (unaudited)   Coastal Community
    Bank    		   Coastal Financial
    Corporation    		   Minimum Well
    Capitalized Ratios
    under Prompt
    Corrective Action     (1)
    Tier 1 Leverage Capital (to average assets)   10.64%   10.78%   5.00%
    Common Equity Tier 1 Capital (to risk-weighted assets)   11.99%   12.04%   6.50%
    Tier 1 Capital (to risk-weighted assets)   11.99%   12.14%   8.00%
    Total Capital (to risk-weighted assets)   13.28%   14.67%   10.00%

    (1) Presents the minimum capital ratios for an insured depository institution, such as the Bank, to be considered well capitalized under the Prompt Corrective Action framework. The minimum requirements for the Company to be considered well capitalized under Regulation Y include to maintain, on a consolidated basis, a total risk-based capital ratio of 10.0 percent or greater and a tier 1 risk-based capital ratio of 6.0 percent or greater.

    Asset Quality

    The total allowance for credit losses was $177.0 million and 5.08% of loans receivable at December 31, 2024 compared to $170.3 million and 4.98% at September 30, 2024 and $117.0 million and 3.86% at December 31, 2023. The allowance for credit loss allocated to the CCBX portfolio was $158.1 million and 9.86% of CCBX loans receivable at December 31, 2024, with $18.9 million of allowance for credit loss allocated to the community bank or 1.00% of total community bank loans receivable.

    The following table details the allocation of the allowance for credit loss as of the period indicated:

        As of December 31, 2024   As of September 30, 2024   As of December 31, 2023
    (dollars in thousands; unaudited)   Community
    Bank    		   CCBX   Total   Community
    Bank    		   CCBX   Total   Community
    Bank    		   CCBX   Total
    Loans receivable   $ 1,882,988     $ 1,603,577     $ 3,486,565     $ 1,897,540     $ 1,521,292     $ 3,418,832     $ 1,830,154     $ 1,195,938     $ 3,026,092  
    Allowance for credit losses     (18,924 )     (158,070 )     (176,994 )     (20,132 )     (150,131 )     (170,263 )     (21,595 )     (95,363 )     (116,958 )
    Allowance for credit losses to total loans receivable     1.00 %     9.86 %     5.08 %     1.06 %     9.87 %     4.98 %     1.18 %     7.97 %     3.86 %
                                                                             

    Net charge-offs totaled $55.9 million for the quarter ended December 31, 2024, compared to $49.2 million for the quarter ended September 30, 2024 and $44.9 million for the quarter ended December 31, 2023. Net charge-offs as a percent of average loans increased to 6.51% for the quarter ended December 31, 2024 compared to 5.65% for the quarter ended September 30, 2024. CCBX partner agreements provide for a credit enhancement that covers the net-charge-offs on CCBX loans and negative deposit accounts by indemnifying or reimbursing incurred losses, except in accordance with the program agreement for one partner where the Company was responsible for credit losses on approximately 5% of a $324.6 million loan portfolio. At December 31, 2024, our portion of this portfolio represented $20.6 million in loans. Net charge-offs for this $20.6 million in loans were $1.1 million for the three months ended December 31, 2024, compared to $1.1 million for the three months ended September 30, 2024 and $1.5 million for the three months ended December 31, 2023.

    The following table details net charge-offs for the community bank and CCBX for the period indicated:

        Three Months Ended
        December 31, 2024   September 30, 2024   December 31, 2023
    (dollars in thousands; unaudited)   Community
    Bank    		   CCBX   Total   Community
    Bank    		   CCBX   Total   Community
    Bank    		   CCBX   Total
    Gross charge-offs   $ 139     $ 61,446     $ 61,585     $ 398     $ 52,907     $ 53,305     $ 2     $ 47,650     $ 47,652  
    Gross recoveries     (3 )     (5,643 )     (5,646 )     (3 )     (4,066 )     (4,069 )     (4 )     (2,777 )     (2,781 )
    Net charge-offs   $ 136     $ 55,803     $ 55,939     $ 395     $ 48,841     $ 49,236     $ (2 )   $ 44,873     $ 44,871  
    Net charge-offs to average loans (1)     0.03 %     14.54 %     6.51 %     0.08 %     12.52 %     5.65 %     0.00 %     14.88 %     5.92 %

    (1) Annualized calculations shown for periods presented.

    During the quarter ended December 31, 2024, a $63.7 million provision for credit losses was recorded for CCBX partner loans, compared to the $72.1 million provision for credit losses was recorded for CCBX partner loans for the quarter ended September 30, 2024, the provision was based on management’s analysis, bringing the CCBX allowance for credit losses to $158.1 million at December 31, 2024 compared to $150.1 million at September 30, 2024. The increase in the allowance is due to the addition of new loans, partially offset by loan sales. CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses. Agreements with our CCBX partners provide for a credit enhancement which protects the Bank by indemnifying or reimbursing incurred losses.

    In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans and reclassified negative deposit accounts. When the provision for CCBX credit losses and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements). Expected losses are recorded in the allowance for credit losses. The credit enhancement asset is relieved when credit enhancement recoveries are received from the CCBX partner. If our partner is unable to fulfill their contracted obligations then the Bank could be exposed to additional credit losses. Management regularly evaluates and manages this counterparty risk.

    The factors used in management’s analysis for community bank credit losses indicated that a provision recapture of $1.1 million and was needed for the quarter ended December 31, 2024 compared to a provision recapture of $519,000 and provision of $277,000 for the quarters ended September 30, 2024 and December 31, 2023, respectively. The recapture in the current period was due to the decrease in the community bank loan portfolio combined with an improvement in the forward look, which is driven by the future projected unemployment and GDP curves, which flattened since last quarter, lessening the impact of this factor.

    The following table details the provision expense/(recapture) for the community bank and CCBX for the period indicated:

        Three Months Ended
    (dollars in thousands; unaudited)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Community bank   $ (1,071 )   $ (519 )   $ 277
    CCBX     63,741       72,104       60,467
    Total provision expense   $ 62,670     $ 71,585     $ 60,744

    A recapture for unfunded commitments of $803,000 was recorded for the quarter ended December 31, 2024 as a result of a decrease in the overall available balance combined with an improvement in the reserve rates.

    At December 31, 2024, our nonperforming assets were $62.7 million, or 1.52%, of total assets, compared to $66.4 million, or 1.63%, of total assets, at September 30, 2024, and $53.8 million, or 1.43%, of total assets, at December 31, 2023. These ratios are impacted by nonperforming CCBX loans that are covered by CCBX partner credit enhancements. As of December 31, 2024, $60.8 million of the $62.6 million in nonperforming CCBX loans were covered by CCBX partner credit enhancements described above.

    Nonperforming assets decreased $3.7 million during the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024. This change is due to a decrease in CCBX and community bank nonaccrual loans. Community bank nonperforming loans decreased $1.0 million from September 30, 2024 to $100,000 as of December 31, 2024, and CCBX nonperforming loans decreased $2.7 million to $62.6 million from September 30, 2024. The decrease in CCBX nonperforming loans is due to an decrease of $570,000 in nonaccrual loans from September 30, 2024 to $19.5 million. Some CCBX partners have a collection practice that places certain loans on nonaccrual status to improve collectability. $17.2 million of these loans are less than 90 days past due as of December 31, 2024. Additionally, there was a $2.2 million decrease in CCBX loans that are past due 90 days or more and still accruing interest. As a result of the type of loans (primarily consumer loans) originated through our CCBX partners we anticipate that balances 90 days past due or more and still accruing will generally increase as those loan portfolios grow. Installment/closed-end and revolving/open-end consumer loans originated through CCBX lending partners will continue to accrue interest until 120 and 180 days past due, respectively and are reported as substandard, 90 days or more days past due and still accruing. There were no repossessed assets or other real estate owned at December 31, 2024. Our nonperforming loans to loans receivable ratio was 1.80% at December 31, 2024, compared to 1.94% at September 30, 2024, and 1.78% at December 31, 2023.

    For the quarter ended December 31, 2024, there were $136,000 community bank net charge-offs and $55.8 million in net charge-offs were recorded on CCBX loans. These CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses.

    The following table details the Company’s nonperforming assets for the periods indicated.

    Consolidated As of
    (dollars in thousands; unaudited) December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Nonaccrual loans:          
    Commercial and industrial loans $ 334     $ 531     $ —  
    Real estate loans:          
    Residential real estate   —       44       170  
    Commercial real estate   —       831       7,145  
    Consumer and other loans:          
    Credit cards   10,262       7,987       —  
    Other consumer and other loans   8,967       11,713       —  
    Total nonaccrual loans   19,563       21,106       7,315  
    Accruing loans past due 90 days or more:          
    Commercial & industrial loans   1,006       1,566       2,086  
    Real estate loans:          
    Residential real estate loans   2,608       3,025       1,115  
    Consumer and other loans:          
    Credit cards   34,490       34,562       34,835  
    Other consumer and other loans   4,989       6,111       8,488  
    Total accruing loans past due 90 days or more   43,093       45,264       46,524  
    Total nonperforming loans   62,656       66,370       53,839  
    Real estate owned   —       —       —  
    Repossessed assets   —       —       —  
    Total nonperforming assets $ 62,656     $ 66,370     $ 53,839  
    Total nonaccrual loans to loans receivable   0.56 %     0.62 %     0.24 %
    Total nonperforming loans to loans receivable   1.80 %     1.94 %     1.78 %
    Total nonperforming assets to total assets   1.52 %     1.63 %     1.43 %
                           

    The following tables detail the CCBX and community bank nonperforming assets which are included in the total nonperforming assets table above.

    CCBX As of
    (dollars in thousands; unaudited) December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Nonaccrual loans:          
    Commercial and industrial loans:          
    All other commercial & industrial loans $ 234     $ 333     $ —  
    Consumer and other loans:          
    Credit cards   10,262       7,987       —  
    Other consumer and other loans   8,967       11,713       —  
    Total nonaccrual loans   19,463       20,033       —  
    Accruing loans past due 90 days or more:          
    Commercial & industrial loans   1,006       1,566       2,086  
    Real estate loans:          
    Residential real estate loans   2,608       3,025       1,115  
    Consumer and other loans:          
    Credit cards   34,490       34,562       34,835  
    Other consumer and other loans   4,989       6,111       8,488  
    Total accruing loans past due 90 days or more   43,093       45,264       46,524  
    Total nonperforming loans   62,556       65,297       46,524  
    Other real estate owned   —       —       —  
    Repossessed assets   —       —       —  
    Total nonperforming assets $ 62,556     $ 65,297     $ 46,524  
    Total CCBX nonperforming assets to total consolidated assets   1.52 %     1.61 %     1.24 %
    Community Bank As of
    (dollars in thousands; unaudited) December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Nonaccrual loans:          
    Commercial and industrial loans $ 100   $ 198     $ —  
    Real estate:          
    Residential real estate   —     44       170  
    Commercial real estate   —     831       7,145  
    Total nonaccrual loans   100     1,073       7,315  
    Accruing loans past due 90 days or more:          
    Total accruing loans past due 90 days or more   —     —       —  
    Total nonperforming loans   100     1,073       7,315  
    Other real estate owned   —     —       —  
    Repossessed assets   —     —       —  
    Total nonperforming assets $ 100   $ 1,073     $ 7,315  
    Total community bank nonperforming assets to total consolidated assets < 0.01%     0.03 %     0.19 %
                       

    About Coastal Financial

    Coastal Financial Corporation (Nasdaq: CCB) (the “Company”), is an Everett, Washington based bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC.  The $4.12 billion Bank provides service through 14 branches in Snohomish, Island, and King Counties, the Internet and its mobile banking application.  The Bank provides banking as a service to broker-dealers, digital financial service providers, companies and brands that want to provide financial services to their customers through the Bank’s CCBX segment.  To learn more about the Company visit www.coastalbank.com.

    CCB-ER

    Contact

    Eric Sprink, Chief Executive Officer, (425) 357-3659
    Joel Edwards, Executive Vice President & Chief Financial Officer, (425) 357-3687

    Forward-Looking Statements

    This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the risks and uncertainties discussed under “Risk Factors” in our Annual Report on Form 10-K for the most recent period filed and in any of our subsequent filings with the Securities and Exchange Commission.

    If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.

    COASTAL FINANCIAL CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (Dollars in thousands; unaudited)

    ASSETS
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Cash and due from banks $ 36,533     $ 45,327     $ 59,995     $ 32,790     $ 31,345  
    Interest earning deposits with other banks   415,980       438,699       427,250       482,338       451,783  
    Investment securities, available for sale, at fair value   35       38       39       41       99,504  
    Investment securities, held to maturity, at amortized cost   47,286       48,582       49,174       50,049       50,860  
    Other investments   10,800       10,757       10,664       10,583       10,227  
    Loans held for sale   20,600       7,565       —       797       —  
    Loans receivable   3,486,565       3,418,832       3,326,460       3,199,554       3,026,092  
    Allowance for credit losses   (176,994 )     (170,263 )     (147,914 )     (139,258 )     (116,958 )
    Total loans receivable, net   3,309,571       3,248,569       3,178,546       3,060,296       2,909,134  
    CCBX credit enhancement asset   181,890       167,251       143,485       137,276       107,921  
    CCBX receivable   14,138       16,060       11,520       10,369       9,088  
    Premises and equipment, net   27,431       25,833       24,526       22,995       22,090  
    Lease right-of-use assets   5,219       5,427       5,635       5,756       5,932  
    Accrued interest receivable   21,104       23,664       23,617       24,681       26,819  
    Bank-owned life insurance, net   13,375       13,255       13,132       12,991       12,870  
    Deferred tax asset, net   3,600       3,083       2,221       2,221       3,806  
    Other assets   13,646       11,711       11,742       12,075       11,987  
    Total assets $ 4,121,208     $ 4,065,821     $ 3,961,546     $ 3,865,258     $ 3,753,366  
                       
    LIABILITIES AND SHAREHOLDERS’ EQUITY
    LIABILITIES                  
    Deposits $ 3,585,332     $ 3,627,288     $ 3,543,432     $ 3,462,979     $ 3,360,363  
    Subordinated debt, net   44,293       44,256       44,219       44,181       44,144  
    Junior subordinated debentures, net   3,591       3,591       3,591       3,590       3,590  
    Deferred compensation   332       369       405       442       479  
    Accrued interest payable   962       1,070       999       1,061       892  
    Lease liabilities   5,398       5,609       5,821       5,946       6,124  
    CCBX payable   29,171       39,188       34,536       33,095       33,651  
    Other liabilities   13,425       12,520       11,850       10,255       9,145  
    Total liabilities   3,682,504       3,733,891       3,644,853       3,561,549       3,458,388  
    SHAREHOLDERS’ EQUITY                  
    Common Stock   228,177       134,769       132,989       131,601       130,136  
    Retained earnings   210,529       197,162       183,706       172,110       165,311  
    Accumulated other comprehensive loss, net of tax   (2 )     (1 )     (2 )     (2 )     (469 )
    Total shareholders’ equity   438,704       331,930       316,693       303,709       294,978  
    Total liabilities and shareholders’ equity $ 4,121,208     $ 4,065,821     $ 3,961,546     $ 3,865,258     $ 3,753,366  

    COASTAL FINANCIAL CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Dollars in thousands, except per share amounts; unaudited)

      Three Months Ended
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    INTEREST AND DIVIDEND INCOME                  
    Interest and fees on loans $ 89,714   $ 99,590   $ 90,944     $ 84,621     $ 81,159  
    Interest on interest earning deposits with other banks   6,021     4,781     5,683       4,780       5,687  
    Interest on investment securities   661     675     686       1,034       1,225  
    Dividends on other investments   191     33     174       37       172  
    Total interest income   96,587     105,079     97,487       90,472       88,243  
    INTEREST EXPENSE                  
    Interest on deposits   29,404     32,083     30,578       28,867       27,916  
    Interest on borrowed funds   667     809     672       669       670  
    Total interest expense   30,071     32,892     31,250       29,536       28,586  
    Net interest income   66,516     72,187     66,237       60,936       59,657  
    PROVISION FOR CREDIT LOSSES   61,867     70,257     62,325       83,158       60,789  
    Net interest income/(expense) after provision for credit losses   4,649     1,930     3,912       (22,222 )     (1,132 )
    NONINTEREST INCOME                  
    Service charges and fees   932     952     946       908       957  
    Loan referral fees   —     —     —       168       —  
    Unrealized gain (loss) on equity securities, net   1     2     9       15       80  
    Other income   473     486     257       308       60  
    Noninterest income, excluding BaaS program income and BaaS indemnification income   1,406     1,440     1,212       1,399       1,097  
    Servicing and other BaaS fees   1,043     1,044     1,525       1,131       1,015  
    Transaction fees   1,783     1,696     1,309       1,122       1,006  
    Interchange fees   1,916     1,853     1,625       1,539       1,272  
    Reimbursement of expenses   3,468     1,843     1,637       1,033       1,076  
    BaaS program income   8,210     6,436     6,096       4,825       4,369  
    BaaS credit enhancements   62,097     70,108     60,826       79,808       58,449  
    BaaS fraud enhancements   5,043     2,084     1,784       923       779  
    BaaS indemnification income   67,140     72,192     62,610       80,731       59,228  
    Total noninterest income   76,756     80,068     69,918       86,955       64,694  
    NONINTEREST EXPENSE                  
    Salaries and employee benefits   17,994     17,101     17,005       17,984       16,490  
    Occupancy   958     964     985       1,029       976  
    Data processing and software licenses   4,010     4,297     3,625       3,381       2,781  
    Legal and professional expenses   4,606     3,597     3,631       3,672       2,649  
    Point of sale expense   2,745     1,351     852       869       899  
    Excise taxes   778     762     (706 )     320       449  
    Federal Deposit Insurance Corporation (“FDIC”) assessments   750     740     690       683       665  
    Director and staff expenses   683     559     470       400       478  
    Marketing   28     67     14       53       138  
    Other expense   1,752     1,482     1,383       1,867       1,089  
    Noninterest expense, excluding BaaS loan and BaaS fraud expense   34,304     30,920     27,949       30,258       26,614  
    BaaS loan expense   24,859     32,612     29,076       24,837       24,310  
    BaaS fraud expense   5,043     2,084     1,784       923       779  
    BaaS loan and fraud expense   29,902     34,696     30,860       25,760       25,089  
    Total noninterest expense   64,206     65,616     58,809       56,018       51,703  
    Income before provision for income taxes   17,199     16,382     15,021       8,715       11,859  
    PROVISION FOR INCOME TAXES   3,832     2,926     3,425       1,915       2,847  
    NET INCOME $ 13,367   $ 13,456   $ 11,596     $ 6,800     $ 9,012  
    Basic earnings per common share $ 0.97   $ 1.00   $ 0.86     $ 0.51     $ 0.68  
    Diluted earnings per common share $ 0.94   $ 0.97   $ 0.84     $ 0.50     $ 0.66  
    Weighted average number of common shares outstanding:                  
    Basic   13,828,605     13,447,066     13,412,667       13,340,997       13,286,828  
    Diluted   14,268,229     13,822,270     13,736,508       13,676,917       13,676,513  

    COASTAL FINANCIAL CORPORATION
    AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
    (Dollars in thousands; unaudited)

      For the Three Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023
      Average
    Balance    		   Interest &
    Dividends    		   Yield /
    Cost (1)    		   Average
    Balance    		   Interest &
    Dividends    		   Yield /
    Cost (1)    		   Average
    Balance    		   Interest &
    Dividends    		   Yield /
    Cost (1)
    Assets                                  
    Interest earning assets:                                  
    Interest earning deposits with other banks $ 501,654     $ 6,021   4.77 %   $ 350,915     $ 4,781   5.42 %   $ 413,127     $ 5,687   5.46 %
    Investment securities, available for sale (2)   39       —   —       40       —   —       100,204       546   2.16  
    Investment securities, held to maturity (2)   48,126       661   5.46       48,945       675   5.49       49,469       679   5.45  
    Other investments   10,783       191   7.05       11,140       33   1.18       11,683       172   5.84  
    Loans receivable (3)   3,419,476       89,714   10.44       3,464,871       99,590   11.43       3,007,289       81,159   10.71  
    Total interest earning assets   3,980,078       96,587   9.65       3,875,911       105,079   10.79       3,581,772       88,243   9.77  
    Noninterest earning assets:                                  
    Allowance for credit losses   (156,687 )             (151,292 )             (95,391 )        
    Other noninterest earning assets   277,922               268,903               204,052          
    Total assets $ 4,101,313             $ 3,993,522             $ 3,690,433          
                                       
    Liabilities and Shareholders’ Equity                                  
    Interest bearing liabilities:                                  
    Interest bearing deposits $ 3,068,357     $ 29,404   3.81 %   $ 2,966,527     $ 32,083   4.30 %   $ 2,660,235     $ 27,916   4.16 %
    FHLB advances and other borrowings   —       1   —       9,717       140   5.73       3       —   —  
    Subordinated debt   44,272       599   5.38       44,234       598   5.38       44,121       598   5.38  
    Junior subordinated debentures   3,591       67   7.42       3,591       71   7.87       3,590       72   7.96  
    Total interest bearing liabilities   3,116,220       30,071   3.84       3,024,069       32,892   4.33       2,707,949       28,586   4.19  
    Noninterest bearing deposits   577,453               588,178               640,424          
    Other liabilities   50,824               60,101               52,450          
    Total shareholders’ equity   356,816               321,174               289,612          
    Total liabilities and shareholders’ equity $ 4,101,313             $ 3,993,522             $ 3,690,435          
    Net interest income     $ 66,516           $ 72,187           $ 59,657    
    Interest rate spread         5.82 %           6.46 %           5.59 %
    Net interest margin (4)         6.65 %           7.41 %           6.61 %

    (1) Yields and costs are annualized.
    (2) For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
    (3) Includes loans held for sale and nonaccrual loans.
    (4) Net interest margin represents net interest income divided by the average total interest earning assets.

    COASTAL FINANCIAL CORPORATION
    SELECTED AVERAGE BALANCES, YIELDS, AND RATES – BY SEGMENT – QUARTERLY
    (Dollars in thousands; unaudited)

      For the Three Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023
    (dollars in thousands, unaudited) Average
    Balance    		   Interest &
    Dividends    		   Yield /
    Cost (1)    		   Average
    Balance    		   Interest &
    Dividends    		   Yield /
    Cost (1)    		   Average
    Balance    		   Interest &
    Dividends    		   Yield /
    Cost (1)
    Community Bank                                  
    Assets                                  
    Interest earning assets:                                  
    Loans receivable (2) $ 1,892,298   $ 31,043   6.53 %   $ 1,912,428   $ 31,898   6.64 %   $ 1,811,152   $ 28,832   6.32 %
    Total interest earning assets   1,892,298     31,043   6.53       1,912,428     31,898   6.64       1,811,152     28,832   6.32  
    Liabilities                                  
    Interest bearing liabilities:                                
    Interest bearing deposits   1,029,346     7,161   2.77 %     982,280     7,264   2.94 %     951,148     6,090   2.54 %
    Intrabank liability   357,442     4,290   4.77       406,641     5,540   5.42       275,995     3,799   5.46  
    Total interest bearing liabilities   1,386,788     11,451   3.28       1,388,921     12,804   3.67       1,227,143     9,889   3.20  
    Noninterest bearing deposits   505,510             523,507             584,009        
    Net interest income     $ 19,592           $ 19,094           $ 18,943    
    Net interest margin(3)         4.12 %           3.97 %           4.15 %
                                       
    CCBX                                  
    Assets                                  
    Interest earning assets:                                  
    Loans receivable (2)(4) $ 1,527,178   $ 58,671   15.28 %   $ 1,552,443   $ 67,692   17.35 %   $ 1,196,137   $ 52,327   17.36 %
    Intrabank asset   583,776     7,007   4.78       496,475     6,764   5.42       569,365     7,837   5.46  
    Total interest earning assets   2,110,954     65,678   12.38       2,048,918     74,456   14.46       1,765,502     60,164   13.52  
    Liabilities                                  
    Interest bearing liabilities:                            
    Interest bearing deposits   2,039,011     22,243   4.34 %     1,984,247     24,819   4.98 %     1,709,087     21,826   5.07 %
    Total interest bearing liabilities   2,039,011     22,243   4.34       1,984,247     24,819   4.98       1,709,087     21,826   5.07  
    Noninterest bearing deposits   71,943             64,671             56,415        
    Net interest income     $ 43,435           $ 49,637           $ 38,338    
    Net interest margin(3)         8.19 %           9.64 %           8.62 %
    Net interest margin, net of Baas loan expense (5)         3.50 %           3.31 %           3.15 %
      For the Three Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023
    (dollars in thousands, unaudited) Average
    Balance    		   Interest &
    Dividends    		   Yield /
    Cost (1)    		   Average
    Balance    		   Interest &
    Dividends    		   Yield /
    Cost (1)    		   Average
    Balance    		   Interest &
    Dividends    		   Yield /
    Cost (1)
    Treasury & Administration                            
    Assets                                  
    Interest earning assets:                                  
    Interest earning deposits with other banks $ 501,654   $ 6,021   4.77 %   $ 350,915   $ 4,781   5.42 %   $ 413,127   $ 5,687   5.46 %
    Investment securities, available for sale (6)   39     —   —       40     —   —       100,204     546   2.16  
    Investment securities, held to maturity (6)   48,126     661   5.46       48,945     675   5.49       49,469     679   5.45  
    Other investments   10,783     191   7.05       11,140     33   1.18       11,683     172   5.84  
    Total interest earning assets   560,602     6,873   4.88 %     411,040 —   5,489   5.31 %     574,483     7,084   4.89 %
    Liabilities                                  
    Interest bearing liabilities:                                  
    FHLB advances and borrowings $ —   $ 1   — %     9,717     140   5.73 %     3     —   — %
    Subordinated debt   44,272     599   5.38 %     44,234     598   5.38 %     44,121     598   5.38 %
    Junior subordinated debentures   3,591     67   7.42       3,591     71   7.87       3,590     72   7.96  
    Intrabank liability, net (7)   226,334     2,717   4.78       89,834     1,224   5.42       293,370     4,038   5.46  
    Total interest bearing liabilities   274,197     3,384   4.91       147,376     2,033   5.49       341,084     4,708   5.48  
    Net interest income     $ 3,489           $ 3,456           $ 2,376    
    Net interest margin(3)         2.48 %           3.34 %           1.64 %

    (1) Yields and costs are annualized.
    (2) Includes loans held for sale and nonaccrual loans.
    (3) Net interest margin represents net interest income divided by the average total interest earning assets.
    (4) CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
    (5) Net interest margin, net of BaaS loan expense, includes the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release.
    (6) For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
    (7) Intrabank assets and liabilities are consolidated for period calculations and presented as intrabank asset, net or intrabank liability, net in the table above.

    Non-GAAP Financial Measures

    The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.

    However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.

    The following non-GAAP measures are presented to illustrate the impact of BaaS loan expense on net loan income and yield on loans and CCBX loans and the impact of BaaS loan expense on net interest income and net interest margin.

    Loan income, net of BaaS loan expense, divided by average loans, is a non-GAAP measure that includes the impact BaaS loan expense on loan income and the yield on loans. The most directly comparable GAAP measure is yield on loans.

    Net BaaS loan income divided by average CCBX loans is a non-GAAP measure that includes the impact BaaS loan expense on net BaaS loan income and the yield on CCBX loans. The most directly comparable GAAP measure is yield on CCBX loans.

    Net interest income, net of BaaS loan expense, is a non-GAAP measure that includes the impact BaaS loan expense on net interest income. The most directly comparable GAAP measure is net interest income.

    CCBX net interest margin, net of BaaS loan expense, is a non-GAAP measure that includes the impact of BaaS loan expense on net interest rate margin. The most directly comparable GAAP measure is CCBX net interest margin.

    Reconciliations of the GAAP and non-GAAP measures are presented below.

    CCBX   As of and for the Three Months Ended As of and for the Twelve Months Ended
    (dollars in thousands; unaudited)   December 31
    2024    		   September 30
    2024    		   December 31
    2023    		 December 31
    2024    		   December 31
    2023
    Net BaaS loan income divided by average CCBX loans:      
    CCBX loan yield (GAAP)(1)     15.28 %     17.35 %     17.36 %   16.89 %     16.89 %
    Total average CCBX loans receivable   $ 1,527,178     $ 1,552,443     $ 1,196,137   $ 1,427,571     $ 1,210,413  
    Interest and earned fee income on CCBX loans (GAAP)     58,671       67,692       52,327     241,134       204,458  
    BaaS loan expense     (24,859 )     (32,612 )     (24,310 )   (111,384 )     (86,900 )
    Net BaaS loan income   $ 33,812     $ 35,080     $ 28,017   $ 129,750     $ 117,558  
    Net BaaS loan income divided by average CCBX loans (1)     8.81 %     8.99 %     9.30 %   9.09 %     9.71 %
    CCBX net interest margin, net of BaaS loan expense:              
    CCBX net interest margin (1)     8.19 %     9.64 %     8.62 %   8.87 %     9.65 %
    CCBX earning assets     2,110,954       2,048,918       1,765,502     1,999,695       1,574,334  
    Net interest income (GAAP)     43,435       49,637       38,338     177,320       151,883  
    Less: BaaS loan expense     (24,859 )     (32,612 )     (24,310 )   (111,384 )     (86,900 )
    Net interest income, net of BaaS loan expense   $ 18,576     $ 17,025     $ 14,028   $ 65,936     $ 64,983  
    CCBX net interest margin, net of BaaS loan expense (1)     3.50 %     3.31 %     3.15 %   3.30 %     4.13 %
    Consolidated   As of and for the Three Months Ended As of and for the Twelve Months Ended
    (dollars in thousands; unaudited)   December 31
    2024    		   September 30
    2024    		   December 31
    2023    		 December 31
    2024    		   December 31
    2023
    Net interest margin, net of BaaS loan expense:              
    Net interest margin (1)     6.65 %     7.41 %     6.61 %   6.99 %     7.10 %
    Earning assets     3,980,078       3,875,911       3,581,772     3,802,275       3,364,406  
    Net interest income (GAAP)     66,516       72,187       59,657     265,876       238,727  
    Less: BaaS loan expense     (24,859 )     (32,612 )     (24,310 )   (111,384 )     (86,900 )
    Net interest income, net of BaaS loan expense   $ 41,657     $ 39,575     $ 35,347   $ 154,492     $ 151,827  
    Net interest margin, net of BaaS loan expense (1)     4.16 %     4.06 %     3.92 %   4.06 %     4.51 %
    Loan income net of BaaS loan expense divided by average loans:          
    Loan yield (GAAP)(1)     10.44 %     11.43 %     10.71 %   10.99 %     10.60 %
    Total average loans receivable   $ 3,419,476     $ 3,464,871     $ 3,007,289   $ 3,320,582     $ 2,936,908  
    Interest and earned fee income on loans (GAAP)     89,714       99,590       81,159     364,869       311,441  
    BaaS loan expense     (24,859 )     (32,612 )     (24,310 )   (111,384 )     (86,900 )
    Net loan income   $ 64,855     $ 66,978     $ 56,849   $ 253,485     $ 224,541  
    Loan income, net of BaaS loan expense, divided by average loans (1)     7.55 %     7.69 %     7.50 %   7.63 %     7.65 %

    (1) Annualized calculations for periods presented.

    The following non-GAAP measure is presented to illustrate the impact of BaaS loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) on noninterest expense. The most comparable GAAP measure is noninterest expense.

        As of and for the Three Months Ended
    (dollars in thousands, unaudited)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Noninterest expense, net of reimbursement of expenses (BaaS)
    Noninterest expense (GAAP)   $ 64,206   $ 65,616   $ 51,703
    Less: BaaS loan expense     24,859     32,612     24,310
    Less: BaaS fraud expense     5,043     2,084     779
    Less: Reimbursement of expenses     3,468     1,843     1,076
    Noninterest expense, net of BaaS loan expense, BaaS fraud expense and reimbursement of expenses   $ 30,836   $ 29,077   $ 25,538


    APPENDIX A –
    As of December 31, 2024

    Industry Concentration

    We have a diversified loan portfolio, representing a wide variety of industries. Our major categories of loans are commercial real estate, consumer and other loans, residential real estate, commercial and industrial, and construction, land and land development loans. Together they represent $3.49 billion in outstanding loan balances. When combined with $1.96 billion in unused commitments the total of these categories is $5.46 billion.

    Commercial real estate loans represent the largest segment of our loans, comprising 39.4% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $34.2 million, and the combined total in commercial real estate loans represents $1.41 billion, or 25.8% of our total outstanding loans and loan commitments.

    The following table summarizes our loan commitment by industry for our commercial real estate portfolio as of December 31, 2024:

    (dollars in thousands; unaudited)   Outstanding
    Balance    		   Available
    Loan
    Commitments    		   Total
    Outstanding
    Balance &
    Available
    Commitment    		   % of Total
    Loans
    (Outstanding
    Balance &
    Available
    Commitment)    		   Average Loan
    Balance    		   Number of
    Loans
    Apartments   $ 405,561   $ 4,953   $ 410,514   7.5 %   $ 3,937   103
    Hotel/Motel     154,691     68     154,759   2.8       6,726   23
    Convenience Store     139,735     575     140,310   2.6       2,329   60
    Office     122,897     7,687     130,584   2.4       1,366   90
    Retail     103,312     414     103,726   1.9       993   104
    Warehouse     103,130     —     103,130   1.9       1,748   59
    Mixed use     91,607     5,365     96,972   1.8       1,160   79
    Mini Storage     80,837     10,183     91,020   1.7       3,674   22
    Strip Mall     43,894     —     43,894   0.8       6,271   7
    Manufacturing     37,617     1,200     38,817   0.7       1,297   29
    Groups < 0.70% of total     91,520     3,777     95,297   1.7       1,173   78
    Total   $ 1,374,801   $ 34,222   $ 1,409,023   25.8 %   $ 2,102   654
                                       

    Consumer loans comprise 34.6% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $735.8 million, and the combined total in consumer and other loans represents $1.94 billion, or 35.6% of our total outstanding loans and loan commitments. As illustrated in the table below, our CCBX partners bring in a large number of mostly smaller dollar loans, resulting in an average consumer loan balance of just $1,000. CCBX consumer loans are underwritten to CCBX credit standards and underwriting of these loans is regularly tested, including quarterly testing for partners with portfolio balances greater than $10.0 million.

    The following table summarizes our loan commitment by industry for our consumer and other loan portfolio as of December 31, 2024:

    (dollars in thousands; unaudited)   Outstanding
    Balance    		   Available
    Loan
    Commitments     (1)    		   Total
    Outstanding
    Balance &
    Available
    Commitment     (1)    		   % of Total
     Loans
    (Outstanding
    Balance &
    Available
    Commitment)    		   Average Loan
    Balance    		   Number of
    Loans
    CCBX consumer loans
    Credit cards   $ 528,554   $ 717,198   $ 1,245,752   22.8 %   $ 1.8   301,799
    Installment loans     656,797     15,806     672,603   12.3       1.0   690,596
    Lines of credit     722     1     723   0.0       1.4   524
    Other loans     7,261     —     7,261   0.1       —   163,026
    Community bank consumer loans
    Installment loans     1,917     2     1,919   0.1       68.5   28
    Lines of credit     181     344     525   0.0       5.7   32
    Other loans     11,444     2,400     13,844   0.3       30.6   374
    Total   $ 1,206,876   $ 735,751   $ 1,942,627   35.6 %   $ 1.0   1,156,379

    (1)  Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

    Residential real estate loans comprise 13.4% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $499.5 million, and the combined total in residential real estate loans represents $969.3 million, or 17.8% of our total outstanding loans and loan commitments.

    The following table summarizes our loan commitment by industry for our residential real estate loan portfolio as of December 31, 2024:

    (dollars in thousands; unaudited)   Outstanding
    Balance    		   Available
    Loan
    Commitments     (1)    		   Total
    Outstanding
    Balance &
    Available
    Commitment     (1)    		   % of Total 
    Loans
    (Outstanding
    Balance &
    Available
    Commitment)    		   Average Loan
    Balance    		   Number of
    Loans
    CCBX residential real estate loans
    Home equity line of credit   $ 267,707   $ 453,369   $ 721,076   13.2 %   $ 27   10,092
    Community bank residential real estate loans
    Closed end, secured by first liens     165,433     2,080     167,513   3.1       537   308
    Home equity line of credit     25,506     43,102     68,608   1.3       109   234
    Closed end, second liens     11,125     965     12,090   0.2       371   30
    Total   $ 469,771   $ 499,516   $ 969,287   17.8 %   $ 44   10,664

    (1) Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

    Commercial and industrial loans comprise 8.4% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $645.5 million, and the combined total in commercial and industrial loans represents $938.9 million, or 17.2% of our total outstanding loans and loan commitments. Included in commercial and industrial loans is $109.0 million in outstanding capital call lines, with an additional $550.9 million in available loan commitments which is limited to a $350.0 million portfolio maximum. Capital call lines are provided to venture capital firms through one of our CCBX BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every capital call line.

    The following table summarizes our loan commitment by industry for our commercial and industrial loan portfolio as of December 31, 2024:

    (dollars in thousands; unaudited)   Outstanding
    Balance    		   Available
    Loan
    Commitments     (1)    		   Total
    Outstanding
    Balance &
    Available
    Commitment     (1)    		   % of Total
    Loans
    (Outstanding
    Balance &
    Available
    Commitment)    		   Average Loan
    Balance    		   Number of
    Loans
    Consolidated C&I loans
    Capital Call Lines   $ 109,017   $ 550,948   $ 659,965   12.1 %   $ 808   135
    Construction/Contractor Services     24,367     36,343     60,710   1.1       121   202
    Financial Institutions     48,648     —     48,648   0.9       4,054   12
    Retail     28,533     5,664     34,197   0.6       14   2,052
    Manufacturing     5,604     4,581     10,185   0.2       147   38
    Medical / Dental / Other Care     7,074     2,641     9,715   0.2       544   13
    Groups < 0.20% of total     70,130     45,360     115,490   2.1       55   1,275
    Total   $ 293,373   $ 645,537   $ 938,910   17.2 %   $ 79   3,727

    (1)  Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

    Construction, land and land development loans comprise 4.2% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $47.8 million, and the combined total in construction, land and land development loans represents $196.0 million, or 3.6% of our total outstanding loans and loan commitments.

    The following table details our loan commitment for our construction, land and land development portfolio as of December 31, 2024:

    (dollars in thousands; unaudited)   Outstanding
    Balance    		   Available
    Loan
    Commitments    		   Total
    Outstanding
    Balance &
    Available
    Commitment    		   % of Total
    Loans
    (Outstanding
    Balance &
    Available
    Commitment)    		   Average Loan
    Balance    		   Number of
    Loans
    Commercial construction   $ 83,216   $ 30,500   $ 113,716   2.1 %   $ 6,935   12
    Residential construction     40,940     10,873     51,813   0.9       2,408   17
    Developed land loans     8,305     456     8,761   0.2       489   17
    Undeveloped land loans     8,665     4,816     13,481   0.2       619   14
    Land development     7,072     1,157     8,229   0.2       643   11
    Total   $ 148,198   $ 47,802   $ 196,000   3.6 %   $ 2,087   71
                                       

    Exposure and risk in our construction, land and land development portfolio is declining compared to previous periods as indicated in the following table:

        Outstanding Balance as of
    (dollars in thousands; unaudited)   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Commercial construction   $ 83,216   $ 97,792   $ 110,372   $ 102,099   $ 81,489
    Residential construction     40,940     35,822     34,652     28,751     34,213
    Undeveloped land loans     8,665     8,606     8,372     8,190     7,890
    Developed land loans     8,305     14,863     13,954     14,307     20,515
    Land development     7,072     5,968     5,714     7,515     12,993
    Total   $ 148,198   $ 163,051   $ 173,064   $ 160,862   $ 157,100
                                   

    Commitments to extend credit total $1.96 billion at December 31, 2024,   however we do not anticipate our customers using the $1.96 billion that is showing as available due to CCBX partner and portfolio limits.

    The following table presents outstanding commitments to extend credit as of December 31, 2024:

    Consolidated    
    (dollars in thousands; unaudited)   As of December 31, 2024
    Commitments to extend credit:    
    Commercial and industrial loans   $ 94,589
    Commercial and industrial loans – capital call lines     550,948
    Construction – commercial real estate loans     36,873
    Construction – residential real estate loans     10,929
    Residential real estate loans     499,516
    Commercial real estate loans     34,222
    Credit cards     717,198
    Consumer and other loans     18,553
    Total commitments to extend credit   $ 1,962,828
           

    We have individual CCBX partner portfolio limits with our each of our partners to manage loan concentration risk, liquidity risk, and counter-party partner risk. For example, as of December 31, 2024, capital call lines outstanding balance totaled $109.0 million, and while commitments totaled $550.9 million, the commitments are limited to a maximum of $350.0 million by agreement with the partner. If a CCBX partner goes over their individual limit, it would be a breach of their contract and the Bank may impose penalties and would have the choice to fund the loan.

    See the table below for CCBX portfolio maximums and related available commitments:

    CCBX                
    (dollars in thousands; unaudited)   Balance   Percent of CCBX
    loans receivable    		 Available
    Commitments     (1)    		   Maximum Portfolio
    Size    		 Cash
    Reserve/Pledge
    Account Amount     (2)
    Commercial and industrial loans:            
    Capital call lines   $ 109,017     6.8 % $ 550,948   $ 350,000 $ —
    All other commercial & industrial loans     33,961     2.1     19,104     480,000   834
    Real estate loans:                
    Home equity lines of credit (3)     267,707     16.7     453,369     375,000   36,241
    Consumer and other loans:            
    Credit cards – cash secured     211         —       —
    Credit cards – unsecured     528,343         717,198       26,742
    Credit cards – total     528,554     33.0     717,198     807,484   26,742
    Installment loans – cash secured     127,014         15,806       —
    Installment loans – unsecured     529,783         —       5,332
    Installment loans – total     656,797     40.9     15,806     1,787,118   5,332
    Other consumer and other loans     7,983     0.5     1     5,398   196
    Gross CCBX loans receivable     1,604,019     100.0 %   1,756,426     3,805,000 $ 69,345
    Net deferred origination fees     (442 )            
    Loans receivable   $ 1,603,577              

    (1) Remaining commitment available, net of outstanding balance.
    (2) Balances are as of January 8, 2025.
    (3) These home equity lines of credit are secured by residential real estate and are accessed by using a credit card, but are classified as 1-4 family residential properties per regulatory guidelines.

    APPENDIX B –
    As of December 31, 2024

    CCBX – BaaS Reporting Information

    During the quarter ended December 31, 2024, $62.1 million was recorded in BaaS credit enhancements related to the provision for credit losses – loans and reserve for unfunded commitments for CCBX partner loans and negative deposit accounts. Agreements with our CCBX partners provide for a credit enhancement provided by the partner which protects the Bank by indemnifying or reimbursing incurred losses. In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans, unfunded commitments and negative deposit accounts. When the provision for credit losses – loans and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements) in recognition of the CCBX partner legal commitment to indemnify or reimburse losses. The credit enhancement asset is relieved as credit enhancement payments and recoveries are received from the CCBX partner or taken from the partner’s cash reserve account. Agreements with our CCBX partners also provide protection to the Bank from fraud by indemnifying or reimbursing incurred fraud losses. BaaS fraud includes noncredit fraud losses on loans and deposits originated through partners. Fraud losses are recorded when incurred as losses in noninterest expense, and the enhancement received from the CCBX partner is recorded in noninterest income, resulting in a net impact of zero to the income statement. Many CCBX partners also pledge a cash reserve account at the Bank which the Bank can collect from when losses occur that is then replenished by the partner on a regular interval. Although agreements with our CCBX partners provide for credit enhancements that provide protection to the Bank from credit and fraud losses by indemnifying or reimbursing incurred credit and fraud losses, if our partner is unable to fulfill their contracted obligation then the bank would be exposed to additional loan and deposit losses if the cash flows on the loans were not sufficient to fund the reimbursement of loan losses, as a result of this counterparty risk. If a CCBX partner does not replenish their cash reserve account the Bank may consider an alternative plan for funding the cash reserve. This may involve the possibility of adjusting the funding amounts or timelines to better align with the partner’s specific situation. If a mutually agreeable funding plan is not agreed to, the Bank could declare the agreement in default, take over servicing and cease paying the partner for servicing the loan and providing credit enhancements. The Bank would evaluate any remaining credit enhancement asset from the CCBX partner in the event the partner failed to determine if a write-off is appropriate. If a write-off occurs, the Bank would retain the full yield and any fee income on the loan portfolio going forward, and our BaaS loan expense would decrease once default occurred and payments to the CCBX partner were stopped.

    The Bank records contractual interest earned from the borrower on CCBX partner loans in interest income, adjusted for origination costs which are paid or payable to the CCBX partner. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating & servicing CCBX loans. To determine net revenue (Net BaaS loan income) earned from CCBX loan relationships, the Bank takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income (A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.) which can be compared to interest income on the Company’s community bank loans.

    The following table illustrates how CCBX partner loan income and expenses are recorded in the financial statements:

    Loan income and related loan expense   Three Months Ended
    (dollars in thousands; unaudited)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Yield on loans (1)     15.28 %     17.35 %     17.36 %
    BaaS loan interest income   $ 58,671     $ 67,692     $ 52,327  
    Less: BaaS loan expense     24,859       32,612       24,310  
    Net BaaS loan income (2)   $ 33,812     $ 35,080     $ 28,017  
    Net BaaS loan income divided by average BaaS loans (1)(2)     8.81 %     8.99 %     9.30 %

    (1) Annualized calculation for quarterly periods shown.
    (2) A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.

    A decrease in average CCBX loans receivable resulted in decreased interest income on CCBX loans during the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024. The decrease in average CCBX loans receivable was primarily due to loan sales in the CCBX loan portfolio as part of our strategy to optimize the CCBX loan portfolio and strengthen our balance sheet through originating higher quality new loans and enhanced credit standards. These higher quality loans also have lower stated rates and expected losses. As a result, our yield on loans and our BaaS loan expense decrease by similar amounts. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio and generate off balance sheet fee income. Growth in CCBX loans and deposits has resulted in increases in interest income and expense for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023.

    The following tables are a summary of the interest components, direct fees, and expenses of BaaS for the periods indicated and are not inclusive of all income and expense related to BaaS.

    Interest income   Three Months Ended
    (dollars in thousands; unaudited)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Loan interest income   $ 58,671   $ 67,692   $ 52,327
    Total BaaS interest income   $ 58,671   $ 67,692   $ 52,327
    Interest expense   Three Months Ended
    (dollars in thousands; unaudited)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    BaaS interest expense   $ 22,243   $ 24,819   $ 21,826
    Total BaaS interest expense   $ 22,243   $ 24,819   $ 21,826
    BaaS income   Three Months Ended
    (dollars in thousands; unaudited)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    BaaS program income:            
    Servicing and other BaaS fees   $ 1,043   $ 1,044   $ 1,015
    Transaction fees     1,783     1,696     1,006
    Interchange fees     1,916     1,853     1,272
    Reimbursement of expenses     3,468     1,843     1,076
    BaaS program income     8,210     6,436     4,369
    BaaS indemnification income:            
    BaaS credit enhancements     62,097     70,108     58,449
    BaaS fraud enhancements     5,043     2,084     779
    BaaS indemnification income     67,140     72,192     59,228
    Total noninterest BaaS income   $ 75,350   $ 78,628   $ 63,597

    Servicing and other BaaS fees decreased $1,000 in the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 while transaction fees and interchange fees increased $87,000 and $63,000, respectively. We expect servicing and other BaaS fees to decrease and transaction and interchange fees to increase as partner activity grows and contracted minimum fees are replaced with recurring fees and then exceed those minimum fees. Increases in BaaS reimbursement of fees offsets increases in noninterest expense from BaaS expenses covered by CCBX partners.

    BaaS loan and fraud expense:   Three Months Ended
    (dollars in thousands; unaudited)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    BaaS loan expense   $ 24,859   $ 32,612   $ 24,310
    BaaS fraud expense     5,043     2,084     779
    Total BaaS loan and fraud expense   $ 29,902   $ 34,696   $ 25,089

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/20c5a089-a44b-483e-acb5-fccbbe07fc10

    The MIL Network –

  • MIL-OSI: Golar LNG Limited – Q4 2024 results presentation

    Source: GlobeNewswire (MIL-OSI)

    Golar LNG’s 4th Quarter 2024 results will be released before the NASDAQ opens on Thursday, February 27, 2025. In connection with this a webcast presentation will be held at 1:00 P.M (London Time) on Thursday February 27, 2025. The presentation will be available to download from the Investor Relations section at www.golarlng.com

    We recommend that participants join the conference call via the listen-only live webcast link provided. Sell-side analysts interested in raising a question during the Q&A session that will immediately follow the presentation should access the event via the conference call by clicking on this link. We recommend connecting 10 minutes prior to the call start. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

    a. Listen-only live webcast link
    Go to the Investors, Results Centre section at www.golarlng.com and click on the link to “Webcast”. To listen to the conference call from the web, you need to have a sound card on your computer, but no special plug ins are required to access the webcast.  There is a “Help” link available on the webcast pages for anyone who may have issues accessing.

    b. Teleconference

    Conference call participants should register to obtain their dial in and passcode details. This process eliminates wait times when joining the call.

    When you log in, you can either dial in using the provided numbers and your unique PIN, or select the “Call me” option and type in your phone number to be instantly connected to the call. Use the following link to register.

    Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

    If you are not able to listen at the time of the call, you can assess a replay of the event audio for a limited time on www.golarlng.com (Investors, Results Centre).

    This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

    The MIL Network –

  • MIL-OSI: Wintrust Financial Corporation Completes Integration with LPL Platform

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Jan. 28, 2025 (GLOBE NEWSWIRE) — LPL Financial LLC, a subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA), today announced that Wintrust Financial Corporation (Nasdaq: WTFC) has transitioned support of the wealth management business of Wintrust Investments and certain private client business at Great Lakes Advisors (collectively “Wintrust”) to LPL Financial and its Institution Services platform.     

    “This strategic relationship with LPL Financial is a significant step forward for Wintrust and our mission to provide exceptional wealth management advice and superior service to our clients across the country,” said Tom Zidar, Chairman and Chief Executive Officer at Wintrust Wealth Management. “By leveraging LPL’s enhanced platform, we will deliver a more streamlined and personalized experience to our clients and a more intuitive, integrated experience for our advisors.”   

    “Wintrust’s advisors now have the capabilities, technology and centralized support to differentiate their service offering and grow their practices,” said Christopher Cassidy, Senior Vice President, Head of Institution Business Development at LPL. “This strategic relationship reflects the value LPL brings to help financial institutions scale their wealth management businesses and deliver personalized experiences for their clients.”    

    LPL and Wintrust Financial Corporation signed an agreement in February 2024. On January 25, about $15 billion of brokerage and advisory assets were onboarded to LPL. The remaining $1 billion of assets are expected to onboard over the next several months.   

    About Wintrust    

    Wintrust is a financial holding company with approximately $64.9 billion in assets whose common stock is traded on the NASDAQ Global Select Market. Guided by its “Different Approach, Better Results®” philosophy, Wintrust offers the sophisticated resources of a large bank while providing a community banking experience to each customer. Wintrust operates more than 200 retail banking locations through 16 community bank subsidiaries in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas. In addition, Wintrust operates various non-bank business units, providing residential mortgage origination, wealth management, commercial and life insurance premium financing, short-term accounts receivable financing/outsourced administrative services to the temporary staffing services industry, and qualified intermediary services for tax-deferred exchanges.  

    About LPL Financial   

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

    Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker dealer, member FINRA/SIPC.  

    LPL Financial and its affiliated companies provide financial services only from the United States. LPL Financial and Wintrust are not affiliated.  

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

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

    Forward-Looking Statements  

    Certain of the statements included in this release, such as those regarding the expected onboarding of assets associated with the strategic relationship and the benefits anticipated of the relationship, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on current expectations and beliefs concerning future developments and their potential effects upon Wintrust, LPL or both. In particular, no assurance can be provided that the assets reported as serviced by financial advisors affiliated with Wintrust will translate into assets serviced by LPL or that the benefits that are expected to accrue to Wintrust, LPL and advisors as a result of the strategic relationship will materialize. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, and there are certain important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements. Important factors that could cause or contribute to such differences include: difficulties or delays of LPL in transitioning advisors affiliated with Wintrust, or in onboarding Wintrust’s clients and businesses or transitioning their assets from Wintrust’s current third-party custodian to LPL; the inability of LPL to sustain revenue and earnings growth or to fully realize revenue or expense synergies or the other expected benefits of the transaction, which depend in part on LPL’s success in onboarding assets currently served by Wintrust’s advisors; disruptions to Wintrust’s or LPL’s businesses due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with financial advisors and clients, employees, other business partners or governmental entities; the inability of LPL or Wintrust to implement onboarding plans; the choice by clients of Wintrust-affiliated advisors not to open brokerage and/or advisory accounts at LPL; changes in general economic and financial market conditions, including retail investor sentiment; fluctuations in the value of assets under custody; and the effects of competition in the financial services industry, including competitors’ success in recruiting Wintrust-affiliated advisors. Certain additional important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements can be found in the “Risk Factors” and “Forward Looking Statements” (in the case of Wintrust) or the “Risk Factors” and “Special Note Regarding Forward-Looking Statements” (in the case of LPL) sections included in each of Wintrust’s and LPL’s most recent Annual Report on Form 10-K. Except as required by law, Wintrust and LPL do not undertake to update any particular forward-looking statement included in this document as a result of developments occurring after the date of this press release.   

    Contacts   

    LPL Media Relations   
    media.relations@lplfinancial.com   
    (704) 996-1840

    LPL Investor Relations   
    investor.relations@lplfinancial.com   

    Wintrust  
    David A. Dykstra 
    Vice Chairman & Chief Operating Officer 
    (847) 939-9000 

    Tracking: 686437 

    The MIL Network –

  • MIL-OSI: Verity and Landus Announce Agreement to Track and Verify Sustainable Agriculture Attributes at Soybean Facility

    Source: GlobeNewswire (MIL-OSI)

    ENGLEWOOD, Colo., Jan. 28, 2025 (GLOBE NEWSWIRE) — Verity Holdings, LLC (“Verity”), a subsidiary of Gevo, Inc. (NASDAQ: GEVO), and Landus are pleased to announce a new agreement aimed at unlocking added value for farmers through sustainability premiums via export markets. This collaboration leverages Verity’s advanced platform to track and verify the attributes of agricultural products, enabling Landus to document and assign value metrics for soybeans processed at its soybean facility in Ralston, Iowa.

    This farmer-centric agreement reinforces Verity and Landus’ commitment to expanding opportunities in international markets for sustainably certified products, such as those derived from regeneratively grown soybeans and corn. By streamlining the certification and data-verification process, the partnership aims to deliver measurable premiums to farmers meeting program requirements while incentivizing processors to adopt efficiency-enhancing systems that drive long-term sustainable outcomes.

    “Landus and Verity will work together to capture and verify key attribute data that drives value throughout the supply chain,” said Paul Bloom, Chief Business Officer for Gevo. “As a leader in the industry, Landus recognizes the importance of collecting trustworthy, verifiable data to document agriculture attributes and connect them to finished products through the supply chain. Farmers and customers are realizing the power of collaboration across the supply chain to drive meaningful and scalable impact.”

    As part of this partnership, Landus and Verity plan to expand data-verification efforts to additional Landus facilities and pilot innovative market solutions. By sharing regular progress updates, they remain committed to building trust and transparency with farmer-owners and stakeholders.

    “Our focus on quality, a unique soybean supply chain, and our commitment to creating value-added opportunities for farmer-owners have always set us apart,” said Craig Mouchka, Director of Strategic Partnerships and Sustainability at Landus. “Verity equips us with the tools to maximize sustainability premiums through export markets while fulfilling our promise to deliver innovative solutions and new opportunities for our farmer-owners.”

    Farmer-owners interested in participating in sustainability initiatives or learning more about market premiums can contact their local Landus representative.

    “We are partnering with organizations that prioritize scalable solutions and sustainable agriculture done right,” said Bloom. “Landus and Verity are demonstrating the value of collaboration from field to finished product, ensuring that sustainability premiums benefit farmers, processors, and their customers alike—particularly in the growing export markets for differentiated agricultural goods.”

    About Gevo
    Gevo’s mission is to convert renewable energy and biogenic carbon into sustainable fuels and chemicals with a net zero or better carbon footprint. Gevo’s innovative technology can be used to make a variety of products, including sustainable aviation fuel (“SAF”), motor fuels, chemicals, and other materials. Gevo’s business model includes developing, financing, and operating production facilities for these renewable fuels and other products. It currently runs one of the largest dairy-based renewable natural gas (“RNG”) facilities in the United States. It also owns the world’s first production facility for specialty alcohol-to-jet (“ATJ”) fuels and chemicals. Gevo emphasizes the importance of sustainability by tracking and verifying the carbon footprint of its business systems through its Verity subsidiary.
    For more information, see www.gevo.com.

    About Verity
    Verity is at the forefront of creating the ability to track, verify, and empirically value carbon intensity across the full carbon lifecycle. Verity Holdings, LLC is a wholly owned subsidiary of Gevo, Inc. For more information, see www.veritytracking.com.

    About Landus
    Landus is a forward-thinking agriculture solutions company that keeps the farmer at the center of every decision it makes. The company connects thousands of farmer-owners with the world through grain, agronomy, and distribution, deploying traditional and nontraditional methods fueled by innovation and sustainability. Landus’ businesses touch 34 states and 16 countries. To learn more about Landus, and the company’s commitment to solving critical issues for the farmer of tomorrow, please visit landus.ag.

    Forward Looking Statement
    Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Verity’s technology and platform, the commercial benefits of using the Verity platform, and the attributes of Verity’s platform, the value of sustainability premiums and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

    Media Contact
    Heather Manuel
    VP, Stakeholder Engagement & Partnerships
    PR@gevo.com

    Kaylie Tighe
    Communications Manager
    Kaylie.tighe@trailrunnerint.com

    IR Contact
    Eric Frey
    VP, Finance & Strategy
    IR@Gevo.com

    The MIL Network –

  • MIL-OSI: Exela Technologies Announces Strategic Partnership with Michael Page

    Source: GlobeNewswire (MIL-OSI)

    IRVING, Texas, Jan. 28, 2025 (GLOBE NEWSWIRE) — Exela Technologies, Inc. (“Exela” or the “Company”) (OTC: XELA, XELAP), a global business process automation (BPA) leader, has announced a strategic partnership between its Finance and Accounting Outsourcing (FAO) Business Unit and Michael Page, a leading recruitment firm specializing in leadership hiring for large enterprises.

    Michael Page, through this partnership, plans to expand Exela’s successful Center of Excellence across various corporate functions, including Finance Shared Services, by deploying Build-Operate-Transfer, Captive, and Business Processes as a Service to their enterprise customers. This collaboration is expected to further strengthen Exela’s position as a trusted partner for delivering tailored, scalable financial solutions.

    “Partnering with Michael Page opens up exciting new avenues for us,” said Sandeep Sapru, President, APAC, Exela Technologies. “This collaboration allows us to bring our deep expertise in finance outsourcing to a wider global audience, helping enterprise clients streamline operations, drive efficiency, and enhance financial outcomes.”

    The partnership reflects a rigorous, strategic process showcasing Exela’s expertise in consulting and executing BOT and captive models. Michael Page’s confidence in Exela was bolstered by the success of its Shared Services Center (SSC) and Full-Service Play (FSP) model, demonstrating Exela’s ability to meet the unique needs of enterprise clients.

    “India continues to be a hub of exceptional talent, with enterprises seeking innovative solutions to optimize their operations and drive strategic growth,” said Anshul Lodha, Managing Director of Michael Page India. “Our partnership with Exela Technologies combines our deep expertise in leadership recruitment with their proven capabilities in finance outsourcing, enabling us to deliver tailored solutions that meet the evolving needs of the Indian business landscape. Together, we are well-positioned to help organizations in India and beyond build resilient, high-performing teams that drive long-term success.”

    As Exela enters FY25, the partnership underscores its commitment to driving growth, innovation, and impactful collaborations that redefine finance outsourcing and shared services.

    About Exela

    Exela Technologies is a business process automation (BPA) leader, leveraging a global footprint and proprietary technology to provide digital transformation solutions enhancing quality, productivity, and end-user experience. With decades of experience operating mission-critical processes, Exela serves a growing roster of more than 4,000 customers throughout 50 countries, including over 60% of the Fortune® 100. Utilizing foundational technologies spanning information management, workflow automation, and integrated communications, Exela’s software and services include multi-industry, departmental solution suites addressing finance and accounting, human capital management, and legal management, as well as industry-specific solutions for banking, healthcare, insurance, and the public sector. Through cloud-enabled platforms, built on a configurable stack of automation modules, and approximately 15,000 employees operating in 21 countries, Exela rapidly deploys integrated technology and operations as an end-to-end digital journey partner.

    To automatically receive Exela financial news by email, please visit the Exela Investor Relations website, http://investors.exelatech.com/, and subscribe to Email Alerts.

    Forward-Looking Statements

    Certain statements included in this press release are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “may”, “should”, “would”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “seem”, “seek”, “continue”, “future”, “will”, “expect”, “outlook” or other similar words, phrases or expressions. These forward-looking statements include statements regarding our industry, future events, estimated or anticipated future results and benefits, future opportunities for Exela, and other statements that are not historical facts. These statements are based on the current expectations of Exela management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties, and those discussed under the heading “Risk Factors” in our Annual Report and in subsequent filings with the U.S. Securities and Exchange Commission (“SEC”). In addition, forward-looking statements provide expectations, plans or forecasts of future events and views as of the date of this communication. Exela anticipates that subsequent events and developments will cause assessments to change. These forward-looking statements should not be relied upon as representing Exela’s assessments as of any date subsequent to the date of this press release.

    For more Exela news, commentary, and industry perspectives, visit:

    Website: https://investors.exelatech.com/
    X: @ExelaTech
    LinkedIn: /exela-technologies
    Facebook: @exelatechnologies
    Instagram: @exelatechnologies

    Investor and/or Media Contacts:

    ir@exelatech.com

    Source: Exela Technologies, Inc.

    The MIL Network –

  • MIL-OSI: The Trade Anything Vision: Unlocking Instant Liquidity and Infinite Markets on dYdX in 2025

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) — The dYdX Foundation reflects on 2024 achievements, including $270B+ in trading volume, 175 markets, and $79M+ USDC in MegaVault, while highlighting the 2025 roadmap.
    The dYdX Foundation (“the Foundation”), an organization focused on supporting and growing the dYdX protocol ecosystem, today released the 2024 dYdX Ecosystem Report and highlighted dYdX Trading’s 2025 software roadmap built around the ecosystem’s “Trade Anything” vision. The report showcases a notable year of growth for dYdX, with $270B in trading volume, pushing the total cumulative volume to $1.46T since 2021. The Unlimited upgrade, launched in November 2024, proved to be a significant catalyst for the protocol, introducing MegaVault, a liquidity tool that surpassed $79M USDC in TVL to support the over 175 markets available on dYdX, many of which have been added through the new instant market listings feature. 
    The traction behind decentralized trading, especially within perpetual markets, continues to project favorably in 2025 and beyond. Up 132% to $1.5T in 2024, the total perp DEX volumes skyrocketed – dYdX’s 2024 trading volume alone would’ve amounted to over one-third of the entire industry’s volume in 2023, and the exchange has remained at the forefront of what is projected to be one of the fastest growing sectors in the space in 2025. This momentum is reflected in the dYdX community with the number of DYDX holders increasing by 290% to 53,000 in 2024. To remain at the cutting edge of the market, dYdX is going all-in on its “Trade Anything” vision, seeking to empower users to trade thousands of markets with instant liquidity through the growth and evolution of MegaVault.  
    “dYdX is breaking barriers to enable a permissionless future where any asset can be traded instantly with immediate liquidity. In 2024, we saw transformative growth driven by our community, through upgrades, DAO proposals, grants, and the Affiliate Program. We’re carrying this momentum into 2025” said Charles d’Haussy, CEO of the dYdX Foundation.
    The launch of dYdX Unlimited in November 2024 introduced innovative features like Instant Market Listings and MegaVault, unlocking hundreds of new markets. Over 150 have already been launched permissionless by the dYdX community, including the pioneering Trump prediction market perpetual ahead of the U.S. election, as well as perps on FX markets like the Turkish Lira and the Euro. In just six weeks, MegaVault reached a TVL of over $70M with an APR exceeding 40%, showcasing a strong product-market fit. As MegaVault continues to mature, liquidity across all markets will continue to improve, solidifying dYdX as DeFi’s pro trading platform for markets of all sizes. 
    According to the team, looking ahead, the community can anticipate instant deposits, an enhanced mobile UX, and various onboarding upgrades, all geared to onboard a slew of new traders entering the space in the new year. Trading enhancements, including permissioned keys and optimized execution speeds, are set to go live imminently. 
    “With institutional and retail interest continuing to evolve, we’re confident that dYdX is positioned as the go-to-market option for derivatives trading, catering to investors of all levels. Alongside the community, we’re excited about the enhancements coming to the protocol in 2025 to make the trading experience on dYdX best-in-market in terms of simplicity and efficiency”, added d’Haussy.
    On the governance front, the number of DYDX holders increased by 290% to 53,000 in 2024, adding more voices to shape the future of the ecosystem. With the launch of a revamped Trading Rewards Program allowing traders to gain back a portion of the fees they pay in the form of rewards distributed in $DYDX, traders received over $63 million in rewards and incentives (excluding staking rewards), including instant rewards paid out by the protocol and the monthly Chaos Labs incentive program.
    Looking ahead to 2025, trading rewards will continue at the protocol level, with an additional $1.5 million allocated for the monthly Chaos Labs incentive program. The DAO will focus on infrastructure optimization, comprehensive documentation, and quality assurance as key priorities in 2025.
    To review the full report, users can visit here. 
    About dYdX Foundation
    The dYdX Foundation‘s purpose is to support and grow the dYdX protocol ecosystem by enabling communities, developers, and decentralized governance.
    The dYdX Chain software is open-source software to be used or implemented by any party in accordance with the applicable license. At no time should the dYdX Chain or its software be deemed to be a product or service provided or made available in any way by the dYdX Foundation. Interactions with the dYdX Chain software or any implementation thereof are permissionless and disintermediated, subject to the terms of the applicable licenses and code. Users who interact with the dYdX Chain software (or any implementations thereof) will not be interacting with the dYdX Foundation in any way whatsoever.
    The dYdX Foundation does not make any representations, warranties, or covenants in connection with the dYdX Chain software (or any implementations and/or components thereof), including (without limitation) with regard to their technical properties or performance, as well as their actual or potential usefulness or suitability for any particular purpose. Nothing in this post should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act by anyone. The dYdX Foundation makes no recommendation as to how to vote on any proposal in dYdX governance or to take any action whatsoever. The dYdX community is sovereign to make decisions freely and at its sole discretion, in accordance with the governance rules, principles, and mechanisms adopted by the dYdX DAO. The dYdX Foundation does not participate in governance decisions to be made by the dYdX community, including, without limitation, by voting on governance proposals. The dYdX Foundation makes no guarantees and is under no obligation to undertake any of the activities contemplated herein.
    Nothing in this post should be considered as financial, investment or any other advice. Crypto-assets can be highly volatile and trading crypto-assets involves risk of loss, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be adequate for retail investors. Do your own research and due diligence before engaging in any activity involving crypto-assets. 
    Media Contact 
    M Group Strategic Communications (on behalf of dYdX Foundation)
    dydx@mgroupsc.com

    Contact

    Dillon Arace
    darace@mgroupsc.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1a75c40a-28bc-405e-afbe-b7d34a9df4b5

     

    The MIL Network –

  • MIL-OSI: DMG Blockchain Solutions Inc. Announces Systemic Trust’s Registration as a Digital Asset Trust Company

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, Jan. 28, 2025 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a leading independent data center technology and blockchain solutions provider, has received registration for its wholly owned subsidiary, Alberta-based, Systemic Trust Company (“Systemic Trust” or “STC”), to operate as a special purpose trust company under the Loan and Trust Corporations Act (Alberta) with Alberta’s Treasury Board and Finance (“ATBF”).

    Lawrence Truong, CEO of Systemic Trust, remarked, “We are grateful to our parent company, DMG, for its unwavering support throughout this process and for providing the capital needed to operate as a Qualified Custodian. We extend our thanks to our regulators for their efforts and guidance, which made the licensing process so efficient. Receiving our certificate of registration marks a significant milestone that will enable us to increase the adoption of blockchain technology and build trust in the Canadian cryptocurrency ecosystem by offering a highly secure, independent custody solution. Alberta’s pragmatic, open-for-business attitude attracts talent, innovation and fintech companies like Systemic Trust to establish its headquarters in the province. We are proud to be part of Alberta’s vibrant and growing technology sector. With crypto-friendly regulatory changes underway beyond our borders, our team is preparing for what we believe will be greater adoption of our services in Canada.”

    Nate Horner, President of Treasury Board and Minister of Finance, remarked, “The registration of Systemic Trust Company marks another exciting milestone for Alberta’s growing financial services sector, giving investors more options to secure cryptocurrency. Alberta continues to lead the way in driving innovation and creating the ideal environment for forward-thinking companies to thrive. With the support of our financial services concierge, innovative businesses can efficiently navigate regulations and establish themselves in the province. By fostering growth in this dynamic sector, we are attracting investments, creating new opportunities for Albertans and building a stronger, more innovative economy.”

    Sheldon Bennett, DMG’s CEO, added, “This milestone is an important achievement towards realizing the full potential of DMG’s Core+ software and services strategy. We are proud of the team at Systemic Trust for successfully navigating the complexities of delivering the licensing for this prudentially regulated business and grateful for our shareholders’ support. Systemic Trust is proud to be the only Canadian Qualified Custodian to leverage Fireblocks’ industry-leading wallet infrastructure. Recognized globally as the foremost institutional-grade wallet platform, Fireblocks has managed over 250 million wallets and secured the transfer of more than $6 trillion in digital assets. This collaboration positions Systemic Trust as the trusted choice for Canadian institutions seeking a secure, compliant and scalable digital asset custody solution.”

    About Alberta’s Treasury Board and Finance

    Alberta’s Treasury Board and Finance (“ATBF”) is a key ministry within the Government of Alberta, Canada, responsible for overseeing the province’s financial and economic affairs. In addition to its roles in budget planning, financial management and economic analysis, ATBF regulates various financial sectors, including loan and trust corporations operating within Alberta. ATBF’s regulatory framework for loan and trust corporations is established under the Loan and Trust Corporations Act. This legislation sets out the requirements for registration, operation and supervision of these entities to ensure their soundness and the protection of consumers. ATBF’s regulatory activities authorize the registration of special purpose trusts under the Loan and Trust Corporations Act, enabling them to serve as a Qualified Custodian for digital assets. Through such regulatory oversight, ATBF aims to maintain the integrity and stability of Alberta’s financial system, fostering a secure environment for both financial institutions and consumers.

    About DMG Blockchain Solutions Inc.

    DMG is a publicly traded and vertically integrated blockchain and data center technology company that manages, operates and develops end-to-end digital solutions to monetize the digital asset and artificial intelligence compute ecosystems. Systemic Trust Company, a wholly owned subsidiary of DMG, is an integral component of DMG’s carbon neutral Bitcoin ecosystem, which enables financial institutions to move bitcoin in a sustainable and regulatory compliant manner.

    For additional information about DMG Blockchain Solutions and its initiatives, please visit www.dmgblockchain.com. Follow @dmgblockchain on X, LinkedIn and Facebook, and subscribe to the DMG YouTube channel to stay updated with the latest developments and insights.

    For further information, please contact:

    On behalf of the Board of Directors,

    Sheldon Bennett, CEO & Director
    Tel: +1 (778) 300-5406
    Email: investors@dmgblockchain.com
    Web: www.dmgblockchain.com

    For Investor Relations:
    investors@dmgblockchain.com

    For Media Inquiries:
    Chantelle Borrelli
    Head of Communications
    chantelle@dmgblockchain.com

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

    Cautionary Note Regarding Forward-Looking Information

    This news release contains forward-looking information or statements based on current expectations. Forward-looking statements contained in this news release include statements regarding DMG’s strategies and plans, the development of Systemic Trust and the expected outcomes and benefits, delivering products that enable the monetization of bitcoin transactions, developing and executing on the Company’s products and services, increasing self-mining, the launch of products and services, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information.

    Future changes in the Bitcoin network-wide mining difficulty rate or Bitcoin hash rate may materially affect the future performance of DMG’s production of bitcoin, and future operating results could also be materially affected by the price of bitcoin and an increase in hash rate mining difficulty.

    Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, market and other conditions, volatility in the trading price of the common shares of the Company, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company’s financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoins; security threats, including a loss/theft of DMG’s bitcoins; DMG’s relationships with its customers, distributors and business partners; the inability to add more power to DMG’s facilities; DMG’s ability to successfully define, design and release new products in a timely manner that meet customers’ needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to secure sufficient capital to complete its business plans, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties, and assumptions, you should not place undue reliance on these forward-looking statements. The securities of DMG are considered highly speculative due to the nature of DMG’s business. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on www.sedarplus.ca. In addition, DMG’s past financial performance may not be a reliable indicator of future performance.

    Factors that could cause actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, the impact of viruses and diseases on the Company’s ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology generally, failure to develop new and innovative products, litigation, adverse weather or climate events, increase in operating costs, increase in equipment and labor costs, equipment failures, decrease in the price of bitcoin, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of or statements made by third parties in respect of the matters discussed above.

    The MIL Network –

  • MIL-OSI: Harel and Amitim to Acquire 44% of a Partnership Holding a Cluster of Enlight Projects Comprising 69 MW Solar Generation and 448 MWh of Energy Storage Capacity

    Source: GlobeNewswire (MIL-OSI)

    The transaction is based on a valuation of $114 million for the entire Cluster, comprised of a $102 million base and an additional $12 million in deferred consideration upon fulfillment of the conditions of its payment

    Enlight will recognize a profit of $94 million upon fulfillment of the conditions of the deferred consideration, and will continue to operate and develop projects in the Cluster

    The partnership provides Harel and Amitim exposure to renewable energy infrastructure, with the potential for high returns and financial strength over time, while diversifying their investment portfolios and reinforcing their commitment to positive impacts on the Israeli economy and environment

    TEL AVIV, Israel, Jan. 28, 2025 (GLOBE NEWSWIRE) — Enlight Renewable Energy (“Enlight”, or the “Company”, NASDAQ: ENLT, TASE: ENLT.TA), a leading renewable energy platform, announces the signing of an agreement to sell 44% of a partnership (the “Partnership”), which holds the Sunlight cluster of Israeli renewable energy projects to Harel Insurance Investments & Financial Services Ltd. and Amitim Senior Pension Funds (the “Investors”, “the Sale Agreement”), who will acquire a 25% and 19% stake respectively.

    The Investors will purchase 44% of the Partnership for a total investment of $50 million1 in cash, of which $45 million will be paid upfront, and $5 million will be deferred consideration to be paid by the Investors upon fulfillment of certain conditions set forth in the Sale Agreement. Upon completion of the transaction, which is expected to occur during the first quarter of 2025, the Company will cease to consolidate the financial results of the Partnership in its financial statements, and will accordingly recognize a profit of $94 million.

    The Sunlight Cluster consists of operational and pre-construction projects totaling 69 MW of solar generation and 448 MWh of energy storage capacity, and accounts for 5% of the capacity of Enlight’s total portfolio in Israel and 1% of the capacity of Enlight’s total global portfolio2. The Investors will acquire 44% of the Limited Partner rights in the Partnership and a wholly-owned subsidiary of the Company will act as the General Partner in the Partnership. Completion of the transaction is contingent upon obtaining approval of the Israeli Competition Authority.

    In conjunction with the Sale Agreement, the parties have entered into a number of additional commercial arrangements:

    1. The parties commit to future investments in projects under construction.
     
    2. The Company will have the exclusive right to purchase all the electricity produced by the Cluster under a 20-year availability agreement whose commercial terms were set between the parties.
     
    3. The Company’s commitment to the duration and minimal level of holdings in the Limited Partnership.
     
    4. The right of the Investors to mandate the sale of 50% of the Company’s holdings in the General Partner to a third party and terminate the management agreements with the Company.
     

    More financial information regarding the Sale Agreement can be found here.

    The Herzog Fox & Neeman law firm and the Giza Singer Even consulting firm advised the Company on the transaction. The Piron law firm advised both Harel and Amitim, and the Escola consulting firm advised Amitim on the transaction.

    1 Amounts in U.S. dollars are calculated based on a U.S. dollar to Israeli Shekel conversion rate of 1 to 3.71, as reported in the Company’s financial statements for the period ending September 30, 2024.

    2 Enlight’s global projects consist of 19.2 GW of generation and 31.8 GWh of energy storage capacity, located in Israel, Europe, and the United States, and allocated into Mature, Advanced Development, and Development portfolios.

    Itzik Tawill, Deputy Director of the Investment Department and Director of the credit and real estate division at Harel, commented, “Harel selects its investments with thoroughness and professionalism, and is proud to continue investing in green energy and infrastructure in Israel. Our cooperation with leading companies such as Enlight diversify our investment portfolio in a stable sector, providing our fund members with attractive and long-term financial performance along with a positive environmental impact.”

    Nir Gavish, Head of Investments at Amitim Senior Pension Funds, commented, “The Sunlight transaction is a direct implementation of our strategy to invest in infrastructure assets in Israel, and in particular in renewable energy, with a commitment to delivering optimal returns for our fund members over time. Amitim has a long-standing relationship with Enlight, and we are pleased to deepen our collaboration with this investment.”

    Gilad Yaavetz, CEO of Enlight, commented, “We are very proud to extend our long-standing partnership with Harel and Amitim, some of Israel’s leading institutional investors, in the innovative field of integrated solar generation and energy storage facilities. The projects generate clean electricity at a competitive price, and the production will be sold by Enlight Enterprise, the Company’s supplier unit, to some of the most prestigious consumers in Israel.

    “We are proud of the asset value implied by the transaction, which reflects the quality of the projects and energy management system we have developed at Enlight. The transaction highlights the competitive advantage that the Company has in optimizing and establishing attractive funding sources to deliver on our significant growth plan.”

    About Enlight Renewable Energy

    Founded in 2008, Enlight is a global leader in initiating, developing, financing, setting up and operating renewable energy projects on a global scale. Enlight operates across the three largest renewable energy sectors today: solar, wind and energy storage. As a global company, Enlight operates in the United States, Israel and 9 countries throughout Europe. Enlight is currently a dual public company, with no controlling interest, that has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT).TA) and the U.S. Nasdaq Stock Exchange where it was successfully issued in 2023 (NASDAQ: ENLT).

    About Harel

    Harel Insurance Investments & Financial Services Ltd is the largest insurance and finance group in Israel, operating in a variety of insurance, asset management and credit fields, with 90 years of experience. Assets under management amounted to approximately ILS 490 billion and premiums amounted to approximately NIS 31.2 billion in the first nine months of 2024. The transaction was led on behalf of Harel by Itzik Taweel, director of the credit and real estate division, and Inesa Laron, manager of the project and infrastructure financing department.

    About Amitim Senior Pension Funds

    Amitim Senior Pension Funds, managed by Ephi Senderov, is one of the largest institutional investors in Israel, managing approximately ILS 350 billion of assets in Israel and abroad through a variety of investment strategies. The transaction was led on behalf of Amitim by Ziv Frenkel, head of the credit division, and Roni Horvitz, credit manager. In recent years, Amitim’s credit division has led and participated in transactions worth billions of Shekels in the infrastructure sector in general and in the energy sector in particular.

    Investor Contact

    Yonah Weisz
    Director IR
    investors@enlightenergy.co.il

    Erica Mannion or Mike Funari
    Sapphire Investor Relations, LLC
    +1 617 542 6180
    investors@enlightenergy.co.il

    Cautionary Note Regarding Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s expectations relating to the Project, the PPA and the related interconnection agreement and lease option, and the completion timeline for the Project, are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects; availability of, and access to, interconnection facilities and transmission systems; our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits; construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors; our suppliers’ ability and willingness to perform both existing and future obligations; competition from traditional and renewable energy companies in developing renewable energy projects; potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire; offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks; various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues; the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions; our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected; government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production; electricity price volatility, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards; our dependence on certain operational projects for a substantial portion of our cash flows; our ability to continue to grow our portfolio of projects through successful acquisitions; changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies; our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business; our ability to retain and attract key personnel; our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure; our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war; changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects; the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy; our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, tariffs, sanctions, export controls and anti-bribery and anti-corruption laws; our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations; our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects; limitations on our management rights and operational flexibility due to our use of tax equity arrangements; potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects; our ability to comply with tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future; the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares; various risks related to our incorporation and location in Israel; the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) and our other documents filed with or furnished to the SEC.

    These statements reflect management’s current expectations regarding future events and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as may be required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

    The MIL Network –

  • MIL-OSI Economics: François Villeroy de Galhau: For a high speed and safe journey into the financial future

    Source: Bank for International Settlements

    Ladies and gentlemen,
    It is a great pleasure to welcome you to this high-level conference organised by the Banque de France on speed and innovation, and how they could be disruptive for financial markets and market infrastructures. Let me thank Emmanuelle Assouan and her teams for setting up this event. I would also like to extend my warm thanks to all participants from industry, public authorities and central banks who will give their views during three roundtables today, including my colleagues and friends Andrea Maechler, Piero Cipollone and Naoto Shimoda.

    It is a première for a Banque de France conference to be held here at the Cinémathèque française, which is definitely an excellent venue for our theme of today: we are here in the place where speed is made art. As you know, cinema was invented in France by the Lumière brothers in the late 19th century. During the projection in 1896 of one of their very first movies, The arrival of a train at La Ciotat station, the audience was so overwhelmed by the moving image of a train coming directly at them that people ran away. But we do not fear speed anymore, on the contrary: it has become a key success factor in financial markets and market infrastructures, yielding high benefits. Transactions and their settlement have already become dramatically swifter over the last decades – notably in France, which was at the forefront in dematerialising securities – and will continue gathering speed. I will first elaborate on the reasons why, in a fast-moving environment, resilience must be preserved in order to ensure financial stability (I). Our public-private partnership has to evolve, with a view to enhancing cross-border payments and the holistic project of creating a shared ledger (II). 

    I. A fast-moving financial system whose resilience must be preserved in order to ensure financial stability

    Markets are undergoing structural changes, all driven by increased speed aimed at achieving higher efficiency. Automation and high-frequency trading are driving a rise in daily trading volumes; new participants have emerged, and incumbents have evolved. Nowadays, robots and algorithms are unlocking new possibilities, while artificial intelligence offers the promise of value added in trading, customer relationships and investment decisions. From photography to digital movies, from local theatres to global web platforms, cinematography has gone through technological revolutions over the years. However, whether it’s in cinema or finance, speed is not a goal per se. The social utility of certain accelerations such as high-frequency trading remains to be seen, and they carry risks. We must reflect on new guardrails to protect against possible increased market volatility – and even potential flash crashes caused by poorly coordinated algorithms that can amplify massive sell-offs.
     
    Post-market processes are keeping pace with this acceleration in trading: settlement is getting ever faster. A few years ago, implementing T+2 (i.e. ensuring settlement within two days of transaction execution) was a major step forward for all players, as enshrined in the European CSDR regulation.i Nowadays we are once again aiming for more ambitious targets, with an objective of T+1 in Europe in 2027 – as has already been the case in the United States, Canada and Mexico since end-May last year. Interestingly, across the Atlantic, this evolution was driven by market players, who saw in the shortening of the settlement cycle an opportunity to further reduce liquidity, counterparty and operational risks. The American experience also shows that T+1 yields direct financial benefits, in particular a significant lowering of CCP margins. T+1 therefore received overall support in ESMA’s and the Commission’s public consultations. I trust that we are all well aware of the operational requirements and challenges to be met:ii  preparatory work must start now, with the adaptation of IT systems and further automation of processes. It is also important to coordinate with the United Kingdom and Switzerland, and to pay due attention to the consequences in terms of shorter cut-offs – notably for FX transactions.
     
    The tokenisation of assets is obviously another groundswell movement, which could further enhance the straight-through processing of trade and post-trade activities, and paves the way for yet another acceleration with a widespread implementation of T+0. It has the potential to generate even greater savings both for the financial industry and end-users. To date, the nascent DLTiii  finance has used new forms of commercial bank money as settlement assets, such as tokenised deposits or so-called stablecoins. As experience has shown in the last few years, they are far from immune, and Europe has made the right step by adopting the MiCA regulation. Failing to regulate crypto-assets and non-banks today would merely sow the seeds for tomorrow’s financial crisis.
     
    Beyond these regulatory issues, it has become more and more apparent that we currently lack the anchor provided by central bank money, which drastically reduces counterparty and liquidity risks, and crucially ensures the finality of payments. A wholesale central bank digital currency would ensure convertibility between tokenised assets, exactly as central banks currently ensure convertibility between commercial bank monies, allowing for delivery-versus-payment and payment-versus-payment. In short, tokenised central bank money would provide a “safety pivot”, and serve as a reliable basis of trust on which these new technologies could realise their full potential.

    II. A step further with the interlinking of fast-payment systems and a European shared ledger to meet the challenges of transition and growth

     
    Central banks must therefore keep up with these developments,iv  in order to explore the potential of DLT and foster innovation while preserving the anchoring role of central bank money. Building among others on the Banque de France’s pioneering experiments between 2020 and 2023,v  the Eurosystem conducted a series of new experiments on wholesale CBDC between April and November 2024,vi  with the active involvement of the Banque de France, Banca d’Italia and Bundesbank as solution providers. We witnessed active industry participation in the Eurosystem experiments, and I would like to take the opportunity to pay tribute to your strong commitment – which, I believe, also reflects the growing awareness of the need for a safe settlement asset.
     
    Together, we successfully tested numerous and very diverse use cases, ranging from primary issues to cross-currency payments, repos, margin calls and asset management, to give a few examples. Actual settlement was even tested for the lifecycle management of securities and secondary market transactions. With this ambitious programme, we have further delivered on our learning-by-doing approach, which is of the essence. As announced, the Eurosystem will draw lessons from the exploratory work, including on how to facilitate the provision of central bank money settlement for wholesale asset transactions on DLT platforms. Clearly, it is in the interest of both European commercial banks and the public sector to work together towards a tokenised European framework: money is and will remain a public-private partnership, which has to evolve.
     
    As regards cross-border payments, the Eurosystem has launched initiatives to help improve them, including exploratory work on linking TIPS with other fast-payment systems such as UPI in India. We thereby support the G20 roadmap for creating a faster, cheaper, more transparent and accessible global payments ecosystem, while ensuring secure and reliable instant payments. The G20 roadmap also foresees, in the longer term, the use of tokenisation to further enhance cross-border payments.
     
    We now need to bring all these advances together to create a global motion picture, in a holistic manner. Here, the idea of a “unified ledger” put forward by the BISvii  looks like more than a promising technology: a rallying concept, or even a utopia. This next-generation market infrastructure would take one day in the future the shape of a shared, seamless and programmable platform that integrates central bank money, commercial bank money and tokenised financial assets – which would call for redefined and improved public-private partnerships. Accordingly, in April 2024 the BIS launched Project Agorá,viii  to explore the tokenisation of cross-border payments to improve the existing correspondent banking model. This major project brings together seven central banks worldwide, including the Banque de France which represents the Eurosystem, and a large group of private financial firms. But a first and necessary step towards such a global infrastructure should be to build regional shared ledgers – one of which would be European.
     
    A European shared ledger could prove an efficient means to overcome European market fragmentation and current inefficiencies, by facilitating the provision of seamlessly connected services across Europe. It would therefore act as a catalyst for a Savings and Investments Union, and provide tools such as green bonds and securities to finance the green transition, at a time where we have to mobilise Europe’s private savings surplus of more than EUR 300 billion a year. In short, it would be an important lever for achieving our climate but also digital transformations, which are among our main challenges; it would also help Europe to gain in both size – by unifying its single market – and speed. Achieving this ambitious vision requires moving forward step by step, in a phased approach. Rather than replacing existing infrastructures which have already helped to reduce fragmentation in Europe – like the harmonised settlement system T2S –, this new shared infrastructure would tackle markets which still rely on manual processes and lack standardisation, such as OTC markets and unlisted stocks. A crucial first step will be to make central bank money available on this infrastructure: this makes it all the more important to offer a wholesale CBDC solution in the short term to prepare this long term target.

    Let me conclude with Billy Wilder, the director of Some like it hot. He once gave this sound piece of advice: “If you have a problem with the third act, the real problem is in the first act.” This leads me to a twofold conclusion: first, that it is the right time to engage in the design and experimentation of market infrastructures of the future; second, that fast-paced transformations should not be at the expense of past achievements in financial stability, and increase risks. Central bank money must remain the settlement asset at the core of the financial system, whether tokenised or not. Under this condition, our common technological breakthroughs could contribute to meeting our major challenges. Thank you for your attention. 

    MIL OSI Economics –