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Category: Finance

  • MIL-OSI United Nations: Experts of the Committee against Torture Welcome Namibia’s Commitment to the Mandela and Bangkok Rules, Ask about Harmful Traditional Practices and Lengthy Pretrial Detention Periods

    Source: United Nations – Geneva

    The Committee against Torture today concluded its consideration of the third periodic report of Namibia, with Committee Experts welcoming the State’s commitment to the Nelson Mandela and Bangkok Rules, international norms on the treatment of prisoners, and raising questions about harmful traditional practices and lengthy pretrial detention periods.

    Erdogan Iscan, Country Rapporteur and Committee Expert, welcomed the commitment of the State party to complying with the Nelson Mandela Rules and the Bangkok Rules.

    Mr. Iscan raised the issue of traditional practices that were harmful to women and girls, including the ritual of Olufuko, which involved child marriage and sexual initiation rites.  Had the State party made progress in terms of awareness-raising as well as eliminating such practices?  What further steps had been taken to prevent and criminalise the practice of forced sterilisation?

    Jorge Contesse, Country Rapporteur and Committee Expert, said pretrial detention seemed to routinely exceed legal limits, with above 50 per cent of the prison population awaiting trial.  The low usage of alternatives to detention and an unaffordable bail system seemed to be contributing to the large backlog of cases of pretrial detainees.  What measures had been adopted to address these challenges?

    Introducing the report, Yvonne Dausab, Minister of Justice of Namibia and head of the delegation, said the Namibian correctional service included human rights instruments, including the Nelson Mandela Rules, in the curriculum at its Training College.  The service had undertaken measures to renovate all the country’s correctional facilities with the aim of improving the living conditions of offenders.

    Ms. Dausab said the Government continued to conduct awareness campaigns targeting traditional and religious leaders on positive gender roles and the elimination of harmful cultural practices.  The Childcare and Protection Act 2015 had measures to protect children from harmful cultural and religious practices, strictly prohibiting child marriage in all setups.

    The delegation said Olufuko had taken on a more cultural image and profile, as opposed to a platform for sexual initiation and child marriage.  That may have been the case in the past, but this had changed over the past 10 to 15 years.  Namibia had taken steps to ensure that acts of enforced sterilisation of individuals were not carried out.

    Pretrial detention could run for any time between six to 12 months, the delegation said, and courts could decide to withdraw charges before the six-month period based on available evidence.  The State party was working to strengthen community courts and establish small claims courts to address overcrowding in prisons and holding cells. Since the report was sent, there had also been parole releases and the President had pardoned some persons.

    In closing remarks, Claude Heller, Committee Chair, said that the Committee understood that the political context in Namibia was difficult.  The Committee would make efforts to provide the State party with relevant and achievable recommendations within its concluding observations.  The Committee was interested in maintaining an open dialogue with the State party through its follow-up mechanism.

    In her concluding remarks, Ms. Dausab said Namibia was committed to addressing all forms of torture and other cruel, inhuman or degrading treatment.  More needed to be done to prevent torture, including the enactment of specific legislation criminalising it.  The Committee’s recommendations would help to enhance mechanisms to prevent torture.

    The delegation of Namibia consisted of representatives from the Ministry of Justice; Ministry of Home Affairs, Immigration, Safety and Security; Namibia Correctional Service; and the Permanent Mission of Namibia to the United Nations Office at Geneva.

    The Committee will issue concluding observations on the report of Namibia at the end of its eighty-first session on 22 November.  Those, and other documents relating to the Committee’s work, including reports submitted by States parties, will be available on the session’s webpage.  Summaries of the public meetings of the Committee can be found here, and webcasts of the public meetings can be found here.

    The Committee will next meet in public on Tuesday, 5 November at 10 a.m. to begin its examination of the second periodic report of Thailand (CAT/C/THA/2).

    Report

    The Committee has before it the third periodic report of Namibia (CAT/C/NAM/3).

    Presentation of Report

    YVONNE DAUSAB, Minister of Justice of Namibia and head of the delegation, said

    Namibia had suffered a great loss at the beginning of the year when the third President, Dr. Hage Gottfried Geingob, a strong champion of human rights, passed away on 4 February 2024.  He was greatly missed.  Additionally, Namibia was currently going through a devastating drought which had impacted food security and economic development; the Government was navigating this climate-related crisis with the assistance of developmental partners. Namibia offered a sincere apology for the non-submission of the written responses to the list of issues.

    The torture bill remained under consideration following deliberations in the National Assembly.  The Convention was directly applicable and enforceable in Namibia without the ‘domestic’ legislation.  Article 144 had been used by Namibian courts which had cited United Nations Conventions in their judgments, making their provisions applicable directly in Namibia. The Namibian Constitution prohibited torture as well cruel, inhuman or degrading treatment or punishment, and the Criminal Procedure Act of 1977 criminalised murder as well as assault, including assault with intent to cause grievous bodily harm. 

    Members of the police force, correctional service and defence force accused of using excessive force were investigated under internal complaints units and those found to have acted outside the scope of what was reasonable in the circumstances were subjected to prosecution.  The Government had also been ordered to pay damages to complainants and their families in civil matters brought due to allegations of assault or use of excessive force by law enforcement officers. 

    The Namibian Constitution prohibited arbitrary arrest or detention and required that an arrested person be brought before a court within 48 hours after the arrest.  All police officials were trained and required to inform an accused person upon arrest of their rights, reasons for their arrest, and charges against them.  The Directorate of Legal Aid within the Ministry of Justice had appointed 69 in-house lawyers across the country to represent members of society who could not afford legal representation. 

    The Government had enhanced the independence of the Ombudsman by reforming the current Ombudsman Act 1990 to make provision for the Ombudsman’s Office to be established as a separate agency in the public service, with its own budget and accounting officer.  The Office of the Ombudsman had launched a training manual against torture for law enforcement agencies, and visited and inspected places of detention, police holding cells, and correctional facilities to monitor human rights compliance.

    Namibia continued to be marred by incidents of gender-based and sexual violence, including online child sexual exploitation.  The Government had developed a national plan of action on gender-based violence 2019-2023 to address the root causes and provide a well-coordinated approach to the prevention, response, monitoring and evaluation of gender-based violence initiatives.  Additionally, Namibia had established special courts for gender-based violence offences country-wide to provide a victim-friendly environment. 

    The Government continued to conduct awareness campaigns targeting traditional and religious leaders on positive gender roles and the elimination of harmful cultural practices.  Namibia had developed and implemented a national plan of action to address violence against children.  The Childcare and Protection Act 2015 had measures to protect children from harmful cultural and religious practices, strictly prohibiting child marriage in all setups. 

    The Ombudsman had been instrumental in ensuring that the Namibian police force was adequately trained on the ‘prevention of torture training manual for police officers.’ The Namibian police force also conducted ongoing workshops to train police officers on human rights.  The Namibian correctional service included human rights instruments in its curriculum, including the Nelson Mandela Rules, at the Namibian Correctional Service Training College.  The service had undertaken measures to renovate all of the country’s correctional facilities with the aim of improving the living conditions of offenders.  The implementation of the Namibian correctional service’s health policy had brought about significant changes in managing communicable diseases such as tuberculosis, HIV and hepatitis, as well as mental health support. 

    All asylum seekers went through a refugee status determination process and those who met the criteria were granted refugee status.  If an application for refugee status was unsuccessful, the applicant was advised they could appeal the decision to the Namibian Refugee Appeal Board. Namibia was implementing the national action plan on statelessness, and a national committee had been established. The review of the legislative framework, which was a key milestone, had begun. 

    The Police Act allowed police officials to be investigated for misconduct and human right violations, inclusive of torture.  Officials found guilty of acting outside the scope of their duties were subject to laid down procedures, including arraignment before a competent court. In Namibia, the State was represented by the Prosecutor General in criminal cases; therefore, the prosecution of all allegations of torture lay with the State.  Ms. Dausab concluded by stating that the Namibian Government remained committed to protecting and promoting human rights in the country. 

    Questions by Committee Experts 

    ERDOGAN ISCAN, Committee Expert and Rapporteur, said the Committee expressed its condolences for the death of Namibia’s third President earlier this year.  The State party did not reply to the list of issues adopted by the Committee and chose to submit a report in May 2021 under the traditional reporting procedure.

    The dialogue with the State party would be conducted against this background.

    Mr. Iscan called on Namibia to continue to support the treaty body system. 

    Had measures been taken to improve prison conditions in conformity with the Nelson Mandela Rules? Research indicated that the total prison population was close to 9,000 inmates, of which 54 per cent were pretrial detainees in police custody.  Occupancy level in the prison system was 75 per cent.  Could the Committee be updated on the current situation?  Could details be provided about the health policy and practice developed by the Namibian correctional service? 

    How many individuals were currently in pretrial detention?  What was the average length of pretrial detention and steps taken to reduce its use?  Could statistical data be provided on deaths in custody; investigations carried out into these deaths; and the number of police or prison staff who had been subjected to criminal or disciplinary punishment in cases involving death in custody? Had there been cases of inter-prisoner violence, and what had been measures implemented in such incidents?

    The Committee noted that corporal punishment was prohibited in schools by the Basic Education Act of 2020, but it still lacked an explicit prohibition in the home. What was the current status of the Correctional Service Act 2012 with respect to explicitly prohibiting corporal punishment following the Supreme Court’s judgment of 5 April 1991?  What steps were being taken to totally prohibit corporal punishment in all settings and develop campaigns for awareness raising?

    Could data on all complaints received by the Ombudsman and the number of complaints received by the Internal Investigation Directorate be provided?  How many of these complaints were investigated and how many resulted in disciplinary sanctions?  Had the perpetrators been punished with appropriate penalties commensurate with the gravity of the crime?  How many complaints had been received concerning sexual abuse and the exploitation of refugees by public officials or non-governmental workers at the Osire refugee camp?  Had these complaints been investigated and prosecuted and had victims obtained redress? 

    The Caprivi high treason trial ended in September 2015 and the Committee noted that about 30 persons were found guilty and sentenced to various imprisonment terms; 79 persons were found not guilty and released from custody.  Could

    information on investigations into or prosecutions of members of the Namibian police force regarding alleged acts of torture of suspected participants in the secession attempt in the Caprivi region in 1999 be provided?  What steps had been taken by the authorities to investigate reports of enforced disappearances in the context of the liberation struggle, including the disappearance of former members of the Southwest Africa People’s Organization?  Had alleged victims and their families obtained redress?

    Was the legislation on excessive use of force compatible with the Convention, as well as the basic principles on the use of force and firearms by law enforcement officials?  Were the reports of excessive use of force by law enforcement officers investigated promptly, effectively and impartially?  Were the perpetrators prosecuted and, if convicted, punished with commensurate penalties?  Were victims of violations remedied adequately?  The Committee had received allegations that members of the police force detained and sexually abused sex workers.  What was the State party’s response to these reports? 

    The Committee took note of the Joint Communication by a group of Special Procedure mandate holders, who examined the document which evaluated the “Joint Declaration by the Federal Republic of Germany and the Republic of Namibia: United in remembrance of our colonial past, united in our will to reconcile, united in our vision of the future”, dated June 2021, and developed observations in connection with international human rights law.  It was understood that follow-up negotiations were ongoing between Namibia and Germany.

    With respect to traditional practices that were harmful to women and girls, including the ritual of Olufuko, which involved child marriage and sexual initiation rites, had the State party made progress in terms of awareness-raising as well as eliminating such practices?  What further steps had been taken to prevent and criminalise the practice of forced sterilisation?  What measures were in place to ensure that all acts of violence that targeted persons on the basis of their sexual orientation or gender identity were properly and promptly investigated and prosecuted? 

    It was reported that the Supreme Court issued a ruling last year recognising the right of spouses of Namibian citizens to regularise their immigration status based on same-sex marriages.  Later, parliament passed legislation banning same-sex marriages.  If enacted, it could nullify the Supreme Court ruling.  What was the current status of this legislation? The Committee had received information that the High Court issued a decision on 21 June 2024, which declared the common law offences of sodomy and unnatural sexual offences unconstitutional. It seemed that the State party continued to criminalise same-sex relationships and the Government had lodged an appeal against this decision which was currently pending before the Supreme Court.  What was the current situation? 

    Could the State party clarify its policy, legislation and practice with respect to prisons, hospitals, schools and institutions that engaged in the care of children, older persons or persons with disabilities?  What was the legal permissibility and use of the measures such as seclusion, physical and chemical restraints, and other restrictive practices? Were net beds and cage beds used in psychiatric and social welfare institutions?  Did the Office of the Ombudsman have unrestricted access to monitor these institutions?  Had any progress been achieved in regard to protecting the human rights of older persons?

    The Committee noted the commitment of the State party to complying with the Nelson Mandela Rules and the Bangkok Rules.  Could the State party clarify its policy, legislation and practice with respect to solitary confinement?  What was the incommunicado detention regime in Namibia?  If the State party maintained this practice, under what circumstances was incommunicado detention authorised and what was the competent organ to authorise incommunicado detention?  Would the State party consider abolishing incommunicado detention? 

    Could Namibia comment on the status of the recommendation to ratify the Optional Protocol to the Convention, and other international instruments to which it was not a party?  Was there any update in this regard? 

    JORGE CONTESSE, Committee Expert and Rapporteur, said torture was currently not a specific criminal offence in Namibia and Namibian law did not expressly criminalise any other forms of cruel, inhuman or degrading treatment or punishment.  Could information be received on the status of the draft prevention of torture bill?  What amendments to the bill sought to bring it further into line with the State party’s obligations under the Convention, as previously recommended by the Committee, including provisions that criminalised the acquiescence and complicity of State officials, or officials acting in an official capacity, to acts of torture?  Were acts amounting to torture subject to a statute of limitations?  Were there any cases where Namibia had invoked the Convention directly before domestic courts? 

    What initiatives had been taken by the State party to enshrine in its legislation fundamental legal safeguards, in particular the right to have access to a lawyer, including the right to access free and effective legal aid; the right to receive a medical examination by an independent physician; the right for individuals, at the time of arrest, to be informed of their rights; the right to be brought promptly before a judge; the right to notify a person of one’s choice of one’s deprivation of liberty; and the obligation of the authorities to maintain detention registers at places of detention?  Were there any cases in which the authorities had failed to comply with these safeguards?  How many such complaints had been registered and what was their outcomes? 

    Were there any cases in which disciplinary measures were taken against officials found responsible for violations?  What complaints mechanisms were available to report violations, and how did they function in practice?  Could the State party specify the circumstances in which a right to counsel could be waived?

    The 2022 annual report of the Ombudsman described visitation and inspection of places of detention in Namibia, noting that some of the most appalling facilities had been closed.  When this happened, where were the detainees who had been held there sent?  What was the timetable for the cleaning and renovation of these facilities?  Pretrial detention seemed to routinely exceed legal limits, with above 50 per cent of the prison population awaiting trial.  In addition, the reported shortcomings in the criminal justice system, such as the significant delays between arrest and trial, the low usage of alternatives to detention, and an inaccessible and unaffordable bail system, seemed to be the contributing factors to the large backlog of cases of pretrial detainees.  What measures had been adopted to address these shortcomings and challenges?

    It was understood that the child justice bill, which had not yet been adopted, endorsed 14 years of age to be considered criminally responsible and abolished the common law presumption.  What was the status and content of the bill?  What measures were adopted to ensure that children were not detained in detention centres for adults?  The Committee understood that no legal provision authorised the Ombudsman to make unannounced visits to places of detention; would the new legislation provide the Ombudsman with such power? 

    Violence against women, including rape, domestic violence, sexual exploitation and abuse of children, and violence against women from indigenous communities, continued to be extremely high, and the root causes of such violence had not been adequately addressed.  According to the national gender-based violence baseline study, “most drivers of gender-based violence were relationship factors that were deeply entrenched within socio–cultural norms and escalated to societal level factors.” What concrete measures had the State party adopted to address these issues, including policies and plans to address ongoing challenges; the number of complaints of gender-based, domestic, or sexual violence received by the authorities; the number of investigations and prosecutions undertaken regarding gender-based, domestic or sexual violence; and the protection and support services available to victims?

    The recommendation to remove the crime of sodomy as a ground for entry refusal into Namibia remained unaddressed.  What measures would the State party adopt to address this and other pending concerns? Could data be provided on the number of asylum applications received during the period under review, the number of successful applications, and the number of asylum seekers whose applications were accepted because they had been tortured or might be tortured if returned to their country of origin? 

    What were the existing appeals mechanisms and other mechanisms in place to identify individuals in need of international protection?  What was the procedure followed when a person invoked this right? Were individuals facing expulsion informed of their right to seek asylum and appeal a deportation decision?  How many stateless persons were living in the country?  What measures were being taken by the State party to mitigate the risk of torture or ill treatment faced by stateless persons. 

    How many law enforcement officials, prison staff, military officers, investigators, judicial personnel and border guards had attended educational programmes which included instruction on the provisions of the Convention against Torture?  How were officers were trained on investigating and handling forms of prohibited ill treatment, like cruel, inhuman or degrading treatment?  To what extent was the Ombudsman responsible for training other law enforcement agencies on investigating torture claims?  What specific initiatives were in place to train officials to prevent the traumatisation of victims of torture or ill treatment.  What steps had been taken to improve methods of investigation, including training programmes on non-coercive interrogation techniques?  Had any training programmes been developed for judges, prosecutors, forensic doctors and medical personnel dealing with detained persons on detecting and documenting the physical and psychological signs of torture?

    Responses by the Delegation 

    The delegation said any international instrument that Namibia ratified became part of their system. Namibia took the work of the treaty bodies very seriously.  Namibia’s prison capacity across the country was around 5,400.  The bed capacity was around 4,700.  Since the report was sent, there had been parole releases, persons had completed their sentences, and the President had pardoned some persons. Pretrial detention could run for any time between six to 12 months.  There was no deliberate attempt on the part of the State to keep people in pretrial detention; the authorities were trying to clear them as quickly as possible to decongest prison facilities. 

    Namibia did not have inter-prison violence in the form that was premeditated, organised, or gang related.  There were isolated incidents of inter-prison fights which were dealt with quickly.  In the rare instances when these incidents occurred, the prisoners would be separated from each other.  Namibia had made a proposal to improve community service orders. 

    It was agreed that the Ombudsman needed to be extricated from the Ministry of Justice. However, there was no evidence that there had been any interference in the work of the Ombudsman.  The Ombudsman bill was ready to go before the National Assembly for Legislative Consultation, which would help with establishing the Office of the Ombudsman.  Currently in Namibia, the Ombudsman was at the level of a judge.  Whether there should be a fixed-term or the security of tenure of the Ombudsman was currently under debate.  Since his appointment, the Ombudsman had been quite vocal about his findings and his displeasure at the conditions of prisons.  The Ombudsman had unfettered access to those facilities; however, unannounced visits could be impractical.  Namibia was doing enough to ensure those institutions which had the mandate to investigate violations of human rights were able to be supported in their work. 

    There had been no prosecutions for prostitution or sex work in Namibia.  There was some fairly outdated legislation, but these laws had not been activated because the State did not feel they were consistent with the spirit of the Namibian Constitution.  Namibia was constantly working on reforming legislation which offended the values of the Constitution.

    The Joint Declaration was the result of an open and frank conversation in Namibia’s National Assembly, reflecting the gravity of the first genocide which took place in Namibia during the twentieth century. 

    Olufuko had taken on a more cultural image and profile, as opposed to a platform for sexual initiation and child marriage.  That may have been the case in the past, but this had changed over the past 10 to 15 years.  Namibia had taken steps to ensure that acts of enforced sterilisation of individuals were not carried out.  The discussion around the reform of abortion and sterilisation was ongoing.  Namibia was concerned about the number of cases of persons who identified as persons of the lesbian, gay, bisexual, transgender and intersex community, who had lost their lives.  However, the State could not say that these crimes happened specifically due to their sexual orientation.  All of those incidents of people who had been killed over the past few months were being investigated and prosecutions would take place. 

    Homosexuality in Namibia was not a crime. 

    Namibia had an excellent proposal for child justice.  The State had engaged in extensive consultation with and received feedback from the United Nations Children’s Fund.  Early next year, the child justice bill would be considered in the Assembly.  Children were kept in facilities separate from adults, and were provided with significant social support.  Gender-based violence was a concern for Namibia.  Every year, the State commemorated the 16 days of violence against women.  There was increasing collaboration between the State and civil society organizations to increase visibility.  The text and the language of legislation combatting rape had been strengthened in 2022, as had the domestic violence legislation. 

    Questions by Committee Experts 

    ERDOGAN ISCAN, Committee Expert and Rapporteur, said the Committee appreciated the fact that they had a high-level delegation here, headed by the Minister in the lead-up to the country’s elections, and wished Namibia all the best in their democratic elections.  The Committee needed information on the reflection of policy and legislation in practice, which was why statistical information was important. 

    Could the State party inform the Committee on the policies, legislation and practices on counter-terrorism measures?  It was a fundamental obligation of States to fight terrorism, while still respecting human rights and the rule of law. 

    Could information be provided on the legislative and executive measures under the state of emergency?  Did they comply with the absolute and non-derogable prohibition of torture? 

    JORGE CONTESSE, Committee Expert and Rapporteur, said it was necessary to have a specific crime which defined the contours of torture.  What were the requirements that members of parliament had, which resulted in seven years of there being no torture bill?  It seemed that the child justice bill moved down the minimum age of criminal responsibility to 12 years; how was this consistent with human rights law? 

    Responses by the Delegation

    The delegation said Namibia’s President could declare a state of emergency in situations where there were natural disasters or threats to the State.  At no time had the declaration of a state of emergency suspended the prohibition of torture or the protection of fundamental rights and freedoms.

    Persons who engaged in terrorist activities against Namibia inside or outside of the State could face life imprisonment.  Law enforcement agencies recently attended training on counterterrorism, which reinforced the obligation to protect human rights and the rule of law.

    The anti-torture bill included definitions of torture and other cruel, inhuman or degrading treatment that were in line with the Convention.  The bill included punishments of imprisonment of varying lengths for acts of torture and other cruel, inhuman or degrading treatment.

    The child justice bill had been developed after broad consultation with international partners. It set the age of criminal responsibility at 12 years, considering the domestic context.

    International human rights instruments ratified by the State were applicable directly before the courts, and the International Covenant on Civil and Political Rights had been applied in one case.

    The Refugee Recognition and Control Act called for compliance with due process regarding detention and expulsions of asylum seekers.  Asylum seekers could be represented by legal practitioners in appeals to detention and expulsion procedures.  Namibia respected the principle of non-refoulement.

    The Government was working to regularise the status of stateless persons.  Under the birth outreach programme, teams had been deployed to rural areas to facilitate birth registration.  Bills promoting civil registration, regularisation and statelessness determination were being considered in Parliament.  Namibia was exerting efforts to eradicate statelessness.

    The Namibian police had conducted investigations into alleged cases of enforced disappearance conducted by two individuals with Angolan citizenship.  These cases had been finalised.  A bill had been developed on the training of police and military officers.  Training was aligned with the Istanbul Protocol and developed skills in investigating allegations of torture and helping victims to access redress. Police officers could not question suspects before informing them of their rights.

    The Constitution prohibited corporal punishment and State legislation prohibited such punishment in school settings.  Schools were mandated to create mechanisms that allowed learners to report incidents of corporal punishment.  In August 2024, a teacher was relieved of his duties following reports of him engaging in corporal punishment of learners.  Parents and guardians needed to respect children’s right to dignity.

    The State party had established an appeal committee and set up regulations to prevent the abuse of legal aid resources.  There had been an increase in applications for legal aid this year, with the number of applications for legal aid having increased to more than 10,000.  Measures were in place to respond to this increase in applications.

    The Mental Health Act of 1973 was outdated and used language that was not consistent with the Convention on the Rights of Persons with Disabilities.  A new bill dealing with mental health had been proposed, which set regulations regarding the limited use of seclusion, coercive methods, and restraint of persons with disabilities, and promoted de-escalation techniques.  The bill called for coercive methods to be removed within two hours at most.  There was a clear prohibition of forced sterilisation of women with mental disabilities in the bill.  It was expected to be finalised next year.

    Questions by Committee Experts 

    ERDOGAN ISCAN, Committee Expert and Country Rapporteur, said that the State’s Constitution and legislation determined that statements made as a result of torture were inadmissible in a court of law.  Were there examples of court cases in which courts had found that evidence was inadmissible because it was obtained through torture?  Had there been investigations into allegations that evidence used in the Caprivi trials was obtained through torture?

    The Committee welcomed that the State party had accepted the simplified reporting procedure, which provided for improved cooperation between the State party and the Committee.  However, the State party had submitted its last report under the traditional procedure. Mr. Iscan called on the State party to submit its next report under the simplified procedure.

    The State party had failed to respond to the Committee’s previous concluding observations and the report on follow-up to concluding observations.  The Committee hoped that the State party would respond to the next concluding observations within the given timeframe.

    JORGE CONTESSE, Committee Expert and Country Rapporteur, said that the torture bill had been pending for a number of years.  The definition of torture within the proposed legislation was very good; it was identical to that of the Convention.  Were there any persons who had been specifically convicted of the crime of torture using the Convention?  It was critical that the anti-torture bill addressed the issues of the statute of limitations and universal jurisdiction.  Article eight of the bill addressed extraterritorial jurisdiction, not universal jurisdiction.

    There was a discrepancy between international human rights law and the child justice bill. What was the domestic context that prevented Namibia from setting the age of criminal responsibility at 14? 

    There was another discrepancy between Namibia’s law on refugee control and international human rights law, which defined the prohibition of non-refoulement as absolute. Why was refoulement allowed in certain circumstances?

    There was a lack of information provided by the State party on allegations of sexual assault by police officers against asylum seekers.  Asylum seekers reportedly lived in settlements with poor conditions. Could the delegation comment on these issues?

    Trafficking in persons reportedly remained prevalent in Namibia.  The rate of reported cases seemed very low, and there was limited progress in investigations and convictions for these cases, with only two convictions between 2014 and 2019.  What progress had been made in tackling trafficking in persons?

    How would the State party address challenges that prevented the Ombudsperson from making unannounced visits to places of detention?

    Another Committee Expert said unannounced inspections of places of detention were an international standard.  The State party needed to reconsider its position on this issue.  Were there time limits for pretrial detention?  It was very impressive that it had been deemed unconstitutional to implement solitary confinement.

    Responses by the Delegation

    The delegation said the State party noted the Committee’s comments regarding the simplified reporting procedure.  There were court cases in which evidence obtained through torture was deemed inadmissible.  In such cases, additional investigations were undertaken into the identified acts of torture.

    The State party also noted the Committee’s concerns and suggestions regarding the anti-torture bill.  Namibia wished to comply with international best practices regarding non-refoulement. Legislation on deportations intended to protect Namibia from external threats while respecting the principle of non-refoulement.

    All allegations of trafficking in persons were taken very seriously.  The judicial system was independent and competent, but had limited resources, which was influencing the rate at which trafficking cases were processed. The State party was exerting efforts to prevent trafficking in persons.

    Any allegations of sexual assault and crimes against the refugee community were investigated. The State party was not aware of allegations of poor conditions in asylum shelters; it would investigate any such allegations if it received them.

    Pretrial detention could be implemented for six to 12 months, and courts could decide to withdraw charges before the six-month period based on available evidence.  The State party was working to strengthen community courts and establish small claims courts to address overcrowding in prisons and holding cells.

    The delegation had taken note of the Committee’s comments regarding unannounced visits to places of detention.  There were no cases in which attempted unannounced visits had been blocked.  The State party would continue conversations on the age of criminal responsibility.

    The Constitutional Court had decided that the implementation of solitary confinement at one prison had been unconstitutional, however, the judgement had not made the implementation of solitary confinement unconstitutional in all contexts.  The imposition of solitary confinement needed to respect legal safeguards and the fundamental freedoms of those subjected to it.

    Questions by a Committee Expert 

    JORGE CONTESSE, Committee Expert and Country Rapporteur, asked if there were examples in which refugees or asylum seekers had threatened national sovereignty. What was the Refugee Control Act trying to address in this regard?  What were the reasons behind setting the age of criminal responsibility at 12?  The possibility of unannounced visits was an effective way to prevent torture and ill treatment in places of detention. Mr. Contesse called for such visits to be conducted.

    Responses by the Delegation

    The delegation said Namibia’s law on refugee control anticipated potential crimes committed by refugees and asylum seekers.  There had been no incidents thus far in which a refugee had threatened national security, but there needed to be a law in place to address such an act.  The domestic court system was sufficiently able to analyse the constitutionality of the Refugee Control Act.

    Concerns had been raised that increasing the age of criminal responsibility would make young children more likely to engage in criminal acts.  The State party noted the Committee’s discomfort regarding this legislation.

    The Ombudsperson was independent and had the opportunity to propose unannounced visits to places of detention.  It and all State actors, as well as civil society, had access to prisons in Namibia. Representatives of the African Union had written extensive reports on prison conditions, which helped the State party to improve these conditions.  Civilians had also taken the State to court concerning prison conditions.

    There were no examples of court cases in which findings of torture had been made, but there were cases in which crimes against humanity had been recognised.  The State party took on board the Committee’s concerns regarding the torture bill.

    Concluding Remarks 

    CLAUDE HELLER, Committee Chair, said that the Committee understood that the political context in Namibia was difficult.  It would make efforts to provide the State party with relevant and achievable recommendations within its concluding observations.  The Committee was interested in maintaining an open dialogue with the State party through its follow-up mechanism.  The dialogue had been rich and was conducted in a constructive spirit.

    YVONNE DAUSAB, Minister of Justice of Namibia and head of the delegation, said the State party had provided information on the efforts it had made to implement the Convention.  The Committee’s recommendations would help to enhance mechanisms to prevent torture. Namibia was committed to addressing all forms of torture and other cruel, inhuman or degrading treatment. More needed to be done to prevent torture, including the enactment of specific legislation criminalising it. The State party was committed to protecting the rights of its people, in consideration of the domestic context. Ms. Dausab closed by thanking the Committee and all who had contributed to the dialogue.

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CAT24.020E

    MIL OSI United Nations News –

    January 25, 2025
  • MIL-OSI USA: Neal, Koziol Highlight Rail Investments Following Latest Federal Funding Announcement

    Source: United States House of Representatives – Congressman Richard Neal (D-MA)

    Today, Congressman Richard E. Neal joined Massachusetts Department of Transportation (MassDOT) West-East Rail Director Andy Koziol to highlight the substantial federal and state investments made in Compass Rail, including West-East Rail, following the latest $36.8 million CRISI grant awarded by the Federal Railroad Administration (FRA).

    This announcement comes one year after Congressman Neal joined Governor Healey to announce a $108 million CRISI grant to support West-East Rail, the third largest award in the nation for FY2022. This funding will facilitate two additional daily round trips between Springfield and Boston and support infrastructure improvements that will increase train speeds, allowing one trip to be completed in under two hours. The Bipartisan Infrastructure Law (BIL), which was drafted in the House Ways and Means Committee under Congressman Neal’s chairmanship, marked the nation’s largest investment in infrastructure in more than six decades and more than tripled the funding for the CRISI program.

    “Throughout my career, I was steadfast in my belief that Springfield Union Station would not meet the wrecking ball. Since its reopening, the investments that have been made in passenger rail have been extraordinary. Today, we celebrate another one of those investments, one that brings us one step closer to making West-East Rail a reality,” said Congressman Neal. “I take great satisfaction knowing that Massachusetts continues to be a great benefactor of the Bipartisan Infrastructure Law, much of which was drafted in the House Ways and Means Committee under my chairmanship. With the substantial progress that has been made with West-East Rail, the Commonwealth is well positioned to pursue additional funding for years to come.”

    Promising to rehabilitate and reopen Springfield Union Station during his campaign for City Council in 1977, Congressman Neal secured more than $75 million to support the $103 million redevelopment of Springfield Union Station. The station officially reopened on June 24, 2017, a milestone that reestablished Springfield as the crossroads of New England and positioned the Commonwealth to begin ramping up investments to improve and expand passenger rail. Since then, more than $200 million has been allocated towards West-East Rail, including:

    • $11 million from MassDOT for Platform C at Springfield Union Station
    • $1.75 million from the FRA CRISI program for the Springfield Track Reconfiguration Project, with a $1.75 million match from MassDOT
    • $108 million from the FRA CRISI program for the Inland Route, with an $18 million match from MassDOT
    • $4 million from MassDOT for Palmer Station Planning and Design
    • $8 million from MassDOT for Pittsfield Track Capacity
    • $36.8 million from the FRA CRISI program for the Springfield Track Reconfiguration Project, with a $9.2 million match from MassDOT

    This does not include the $75.7 million awarded under the American Recovery and Reinvestment Act High Speed and Intercity Passenger Rail Program in 2010 to restore the Vermonter. This funding, coupled with $20 million for the West Springfield flyover anticipated in the state’s Capital Investment Plan, along with the state of good repair work that has been completed along the Knowledge Corridor, brings the total investment in Compass Rail to nearly $300 million.

    “We are grateful to Congressman Neal, other members of our congressional delegation, legislators, and local officials for helping us expand and enhance passenger rail service in Massachusetts,” said West-East Director Andy Koziol. “The Healey-Driscoll administration has been and will continue to be persistent in pursuing federal grant opportunities to support capital projects which will create a state transportation system which is equitable, resilient, and meets the needs of all communities.”

    One of 122 projects funded by the FRA, the latest award from the CRISI program totals $36.8 million. Funding will support the Springfield Track Reconfiguration Project, which is designed to increase capacity to accommodate both freight and increased passenger rail service. The project will include building new crossovers and layover tracks, upgrading platforms around Springfield Union Station, and modernizing track and signal systems. The project is being advanced by MassDOT in coordination with the Springfield Redevelopment Authority, Amtrak, CSX, and other railroads that operate in Springfield.

    “I’m thrilled to celebrate our continued progress in advancing West-East Rail,” said Director of Federal Funds and Infrastructure Quentin Palfrey. “The Healey-Driscoll administration pulling out every stop to bring home more federal funding so we can continue to achieve our transit goals. Thank you to the Biden-Harris Administration, Secretary Buttigieg, and to our outstanding Congressional delegation for making today’s award possible.”

    Springfield Union Station saw more than 2 million visitors come through its doors during FY2023, much of which can be attributed to an increase in rail passengers. Amtrak witnessed a 24% increase in ridership nationwide during FY2023, with a 29% uptick in the northeast alone. Amtrak’s New Haven-Springfield route, which includes the Valley Flyer, saw 442,028 riders, a 36% increase from FY2022, while the Vermonter saw nearly 100,000 riders, a 14.5% increase.

    ###

    MIL OSI USA News –

    January 25, 2025
  • MIL-OSI Security: Drug Trafficker Sentenced To 20 Years In Prison Following His Participation In A Fatal Shooting

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Cristian Ponce (32, Orlando) to 20 years’ imprisonment following his role in a fatal, drug-related shooting. Ponce entered a guilty plea on February 13, 2024. 

    According to court documents, on November 2, 2022, at approximately 2 p.m., a drug-related shooting occurred at the Oak Ridge Shopping Plaza in Orlando. Ponce and S.H. had arrived at the shopping plaza in a gray SUV to sell drugs to addicts who congregated there. They had cocaine and fentanyl packaged for individual sale and two loaded firearms in the vehicle. Video surveillance footage shows that when the SUV arrived in the plaza, an individual approached the front passenger side of the vehicle and Ponce gave him a small bag of cocaine. At almost the same time, E.E. and another associate approached the SUV and gunshots were fired into and from the SUV. E.E. was shot, ran a short distance, and fell to the ground. S.H. was also shot. The SUV reversed uncontrollably, flipped over, and crashed in the rear of the plaza. Ponce assisted S.H. out of the SUV and fled before law enforcement arrived. The confrontation was an alleged turf battle over who could sell drugs in the shopping plaza. Both E.E. and S.H. died from their wounds.

    During the following week, Ponce continued to sell drugs. On November 8, 2022, law enforcement observed vehicles and individuals visit Ponce’s residence for short periods of time, consistent with drug dealing. During that time Ponce also sent and received text messages to conduct his drug business.

    On November 11, 2022, at Ponce’s residence in Orlando, law enforcement executed a search warrant related to the shooting. As officers approached the residence, they observed Ponce seated in a vehicle in the driveway with co-defendant Rodney Hernandez. Ponce again had cocaine packaged for individual sale and two loaded firearms inside the vehicle.

    Hernandez previously pleaded guilty for his role in this case. He was sentenced in June 2024 to seven years in federal prison.   

    This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Lauren Stoia.

    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 –

    January 25, 2025
  • MIL-OSI Security: Beckley Man Pleads Guilty to Role in Drug Trafficking Organization

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    BECKLEY, W.Va. – Demetrius Terrell Burns, 32, of Beckley, pleaded guilty today to conspiracy to distribute methamphetamine, fentanyl and cocaine base. Burns admitted to his role in a drug trafficking organization (DTO) that distributed methamphetamine, fentanyl and cocaine base, also known as “crack,” in Beckley and elsewhere within the Southern District of West Virginia.

    According to court documents and statements made in court, in April 2024 Burns received fentanyl from a supplier in Beckley that he used to supply Tilford Joe Bradley Jr., a co-defendant. Burns admitted that on April 12, 2024, he told Bradley by phone that he had received a shipment of “raw” fentanyl. Burns further admitted that he offered to sell Bradley $1,800 worth of raw fentanyl, and they discussed adding cutting agent to the fentanyl to make a larger profit when it was sold. Burns also admitted that he knew Bradley intended to redistribute these drugs in and around the Southern District of West Virginia.

    Burns is scheduled to be sentenced on February 14, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.

    Burns is among 12 individuals indicted on charges alleging the defendants conspired to distribute methamphetamine, fentanyl, and crack within the Southern District of West Virginia from in or about June 2023 to in or about May 2024. Burns is also among four defendants who have pleaded guilty. The charges against Bradley and the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.

    United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.

    The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-90.

    ###

    MIL Security OSI –

    January 25, 2025
  • MIL-OSI Economics: A stable euro in a strong Europe | Karl Otto Pöhl Lecture to the Frankfurt Society for Trade, Industry and Science

    Source: Bundesbank

    Check against delivery.

    1 Introduction

    Ladies and gentlemen,

    Thank you very much for inviting me. It gives me great pleasure to be here with you today, and I am very honoured to be delivering the Karl Otto Pöhl Lecture.

    My congratulations on this series of lectures. Nine years ago, it premiered at the Bundesbank’s Regional Office in Hesse at the Taunusanlage in Frankfurt. Since then, various prominent people have presented their views of monetary union. Two of them will come up later on in my talk.

    But let’s stay for now with the lecture’s namesake: Karl Otto Pöhl. On 30 May 1990, he addressed the Frankfurt Society for Trade, Industry and Science as President of the Bundesbank, perhaps even standing right here at this lectern.[1]

    Times were turbulent back then: German monetary union had just been decided and needed to be implemented within the space of just a few weeks. At the same time, the Delors Report had outlined the transition to a European Economic and Monetary Union. Its first stage entered into force on 1 July 1990. Germany’s “Frankfurter Allgemeine Zeitung” newspaper wrote back then that the Bundesbank was facing two unprecedented historical challenges.

    As was his nature, Karl Otto Pöhl shied away from neither challenges nor plain speaking. He explained in no uncertain terms where the difficulties and pitfalls of the two monetary unions lay. At the same time, he left no doubt that he would strive tirelessly to ensure that they were a success. He concluded his speech back then with the words: “I am also confident that we will succeed.” This combination of plain speaking, drive and optimism were characteristic of Karl Otto Pöhl – and we could do with more of that today as we strive to overcome the current challenges.

    Karl Otto Pöhl would have turned 95 this year. We owe him a great deal. His work in the Delors Commission resonates to this day: It was under Mr Pöhl’s chairmanship that the Committee of Central Bank Governors drafted the Statute of the European Central Bank. Thus, the European Central Bank was modelled on the Bundesbank and created as an independent central bank that pursues price stability as its primary objective.

    However, Mr Pöhl was also well aware that these institutional pillars alone are not sufficient to permanently uphold a stable currency for Europe. A firm foundation is needed for the pillars to stand upon. This foundation consists of sound public finances, integrated markets and public confidence in the central bank. Then as now, it is important to strengthen this foundation so that the euro can withstand even a storm. I would now like to talk about what this means specifically in the here and now.

    2 Sound public finances in the euro area

    Let’s start with public finances – and a question: Why should they matter to us in the first place? The Eurosystem has the task of shaping monetary policy for the euro area. Fiscal policy is the Member States’ responsibility. Why then do central bankers talk so often about budget deficits, debt ratios and fiscal rules?[2]

    Our mandate provides the answer: Unsound public finances are a threat to price stability. If the debt burden grows steadily in size, people might lose confidence that the government can continue to shoulder this burden without “inflating it away”. Inflation expectations, and therefore inflation itself, could rise. And monetary policy would have to push back more vigorously to keep inflation under control. This, in turn, would come at a greater cost to the economy as a whole.

    That is why we must nip in the bud any impression that central banks are under pressure to set key interest rates lower or maintain higher bond holdings than actually warranted by monetary policy out of consideration for public finances. And that is exactly why we are such outspoken advocates of effective fiscal rules. They are intended as guardrails for sound public finances. Then monetary policy can safeguard price stability, and do so with as little cost to the aggregate economy as possible.

    Fiscal rules were included in the design of European monetary union from the outset. This was thanks, in part, to Karl Otto Pöhl. Even back in the days of the Delors Commission, he was already advocating binding budgetary rules. Mr Pöhl is also said to have been the first to introduce the idea of a 3% deficit rule.

    Since then, the rules have been amended on several occasions. The latest reform entered into force in April 2024. On paper, the earlier rules were not bad at all. In practice, however, they didn’t have the desired effect. One reason was that numerous exceptions and discretionary powers were used to excuse the many instances in which targets were missed. As a result, the majority of euro area countries have debt exceeding the reference value of 60% of GDP, with a few even well above the 100% mark.

    Against this background, the rules were redrawn. In the reform, a great deal of emphasis was placed on national ownership, the intention being to make Member States feel more bound to the thresholds. If this overhaul does indeed lead to the rules having more binding force, that would be very welcome.

    At the same time, however, the commitments must also be ambitious enough to significantly bring down high deficit and debt ratios. Given a number of vulnerabilities in the new framework, this is not a matter of course. For example, the country-specific limits are based on many assumptions, some of which extend far into the future. The spending limits are ultimately a matter of negotiation. And in practice, response times to undesirable developments will be very long.

    The first acid test is imminent. Spending limits for the first planning period are currently being agreed upon. The plans should stake out a path for high deficit and debt ratios to come down reliably. Responsibility for agreeing such plans lies with the Commission and the Council. In my opinion, Germany should act as a role model in this process. That means leading by example and committing to a path on which the rules are applied rigorously.

    Given high levels of debt in the euro area, it is important that the reformed rules work better than the old ones. As I said earlier, sound Member State finances are part of the foundation of a stable economic and monetary union.

    3 Integrated capital markets in Europe

    But they alone are not enough. In his speech back then to the Frankfurt Society for Trade, Industry and Science, Karl Otto Pöhl explained that the emerging economic and monetary union meant, first, an integration of the markets. That was the most important thing of all, he said.[3] In particular, he pointed to the increasing integration of money and capital markets following the lifting of many restrictions on the free movement of capital.

    There were, and still are, a number of reasons why it is important that European financial markets should be as integrated as possible. First, this helps ensure that monetary policy impulses have equal effect throughout the euro area. Second, in the event of an economic shock in one Member State, it makes sure that downstream costs are cushioned across the currency area. This contributes to the stability of the economy as a whole and the financial system. And third, in a deep, liquid capital market with a broad range of products, it is easier for enterprises to find the financing that suits them best. This is particularly true of start-ups and growth companies. They need access to a developed venture capital market. More private capital is also important to boost investment in the green and digital transformation of the European economy. This investment is urgently needed to strengthen the EU’s productivity and competitiveness.

    So you see, everything points to the benefits of a genuine pan-European capital market. And the EU set itself the goal of creating a capital markets union a decade ago. Unfortunately, the reality is still very different.

    Overall, progress on financial integration in the euro area is disappointing. This was the conclusion recently reached in a report by the European Central Bank. It states that “[b]oth price-based and quantity-based financial integration indicators have declined substantially over the past two years, with no sizeable increase since the inception of Economic and Monetary Union. Despite significant legislative efforts over the last decade, cross-border financial market activities and risk sharing have not grown …”.[4]

    This finding demonstrates just how big the task is. But there is also good news: We know fairly exactly where the pain points lie and can start there. Areas for action include, for example, a more vibrant securitisation market, integrated structures in financial supervision, harmonised securities legislation, and better-coordinated national insolvency and accounting rules.

    The new Commission now needs to place the pursuit of a European capital market at the very top of its list of priorities. We must make more rapid progress on this issue than we have done so far. Policymakers have mostly been united behind the abstract objectives. However, they have then too rarely found the strength to agree on concrete measures. A whole host of measures is needed to achieve the objectives. In some cases, they encroach deeply on national law. If real progress is to be made, all parties will have to pull together, i.e. the Commission, the Parliament and the Member States.

    Happily, the topic has gained fresh momentum this year. Be it the statements by the Eurogroup and the ECB Governing Council or the reports by Enrico Letta and Mario Draghi – they are all providing tailwinds. Now is the time to use them!

    The Eurosystem itself is also contributing to success in this area, particularly in terms of financial market infrastructure. For example, we are advocating for new technologies to make it easier to issue, trade and settle financial instruments. In my view, digitalisation opens up fresh opportunities to strengthen the efficiency of European financial markets, while also breaking down boundaries between national financial markets. We have far from exhausted the potential here!

    4 Public confidence in the central bank

    A Europe with integrated markets and sound public finances is a stronger Europe. It is a Europe with stronger resilience in the face of crises, even during turbulent times; a Europe that allows us to shape our future with self-assurance and on the back of our own efforts. Achieving this goes beyond the monetary policy foundation; it also involves the basis of citizens’ trust in the EU.

    The general public should be able to have as much confidence in the EU in future as they do now.[5] We, as the Eurosystem central banks, are also particularly dependent on the confidence and support of the general public.

    We act independently of politics. This independence has been deliberately granted to us for monetary policy so that we can fulfil our mandate free from political influence. We cannot simply take the public’s trust as a given. Only if the people have confidence in us will they accept the independence granted to us. This trust must be earned time and time again – by acting in accordance with our mandate and communicating transparently and comprehensibly with the public. In short: Our deeds and our words should go hand in hand.

    If people have confidence in central banks and their promise of stability, this also helps to anchor inflation expectations.[6] Well-anchored inflation expectations make it easier for the central bank to actually achieve its target. And meeting the inflation target, in turn, reinforces people’s confidence in the central bank. In this way, a virtuous circle is created – a cycle of positive events.

    The Eurosystem has repeatedly demonstrated that its promise of stability was not merely empty words. Perhaps you remember when the then ECB chief economist, Peter Praet, gave his Karl Otto Pöhl Lecture in 2017. At that time, the Eurosystem was struggling with an inflation rate that remained stubbornly below target. Mr Praet explained what the Governing Council had done to counter deflation risks that had emerged since 2014.

    Alternatively, think back to the economic environment back when Christine Lagarde spoke with you two years ago. In autumn 2022, euro area inflation had peaked, even reaching double digits for a time. Against this backdrop, the ECB President underscored the Governing Council’s determination to push inflation down to its 2% target.

    Here, too, words and deeds were aligned: by September 2023, we had raised key interest rates by a total of 450 basis points in ten steps – a move that bore fruit. The inflation rate has since fallen significantly. In September of this year, it was below 2% in the euro area – and that for the first time in over three years. Tomorrow we will get the first estimate for October. Inflation is also likely to have risen slightly again due to base effects in energy.

    Looking beyond the monthly ups and downs, it can be seen that price stability is no longer far off, but the last mile of the journey still needs to be traversed. In particular, services inflation, which has been relatively sluggish in past experience, remains high, standing at 3.9% at last count.

    The ECB Governing Council lowered key interest rates in October for the third time since June. This was appropriate in view of the somewhat more favourable inflation outlook shown by the data. Our data-dependent approach has proven its worth, particularly in view of the prevailing uncertainty. A new forecast will be available to the Governing Council in December, and that will show us whether we are still on track in terms of inflation developments. I advise you to remain cautious and not to rush into anything.

    Monetary policy needs to ensure that the inflation rate stabilises at 2% over the medium term. Adhering to our promise of stability is absolutely crucial if we are to maintain the confidence that the general public have in us, particularly in light of their inflation experiences in recent years. Accessible communication helps with this.[7]

    Karl Otto Pöhl had already come to this realisation, back in a time when central banks were, in some cases, famous (and infamous) for their secrecy. In an interview in 1988, he said: “I am thoroughly convinced that one of my main tasks is to clarify, to explain.”[8]

    Studies also suggest that people with a good financial education tend to trust central banks.[9] We therefore have a strong vested interest in improving the public’s understanding of money, currency and central banks. This is where the Bundesbank’s educational resources, such as lectures at schools, training courses for teachers, teaching materials, explanatory films and the Money Museum, come into play.

    The effects of financial education could extend even further: researchers from the European Central Bank have investigated how people with differing degrees of financial knowledge responded to the interest rate reversal in 2022 and 2023.[10] People with basic and advanced financial knowledge were surveyed over several months. It transpired that both groups expected significantly higher interest rates. However, there were differences between whether the surveyed groups deemed it better to take out loans or to make savings: those with higher financial literacy adjusted their assessments more quickly and to a considerably greater degree. The impact of the course of monetary policy on people’s behaviour therefore also depends on their financial knowledge. As a result, then, greater emphasis on financial literacy could help monetary policy measures to be translated into action on the part of the individual.

    A good general understanding of economics and finance has yet more advantages. For instance, such knowledge enables people to make better decisions about how to spend, save and invest their money. Studies show that financial knowledge has a positive impact on households’ return on investment.[11] Furthermore, it is more likely to prevent them from making expensive mistakes or falling victim to fraud.

    Financial education also affords opportunities for social advancement. It is therefore important to promote the acquisition of such knowledge in society at large. If knowledge about planning for retirement and wealth accumulation is only gleaned from one’s parental home, it is primarily those who are already in positions of privilege who will benefit. This can entrench and even exacerbate societal inequalities.[12]

    It is all the more worrying that, according to a survey carried out within the EU, an average of just over one in two individuals possesses basic financial knowledge.[13] Although Germany’s performance is above average, we still have plenty of room for improvement. The German government’s initiative aimed at strengthening financial education therefore comes as a welcome development. One component of this initiative, a national strategy for financial literacy, is currently under development. The OECD has provided valuable analyses and recommendations that create a sound basis for policy.[14]

    In any case, there is no lack of interest, especially among young people. According to an OECD study, 81% of 14 to 24-year-olds would like to learn more in school about options for retirement provision, 87% about how to handle their money and 73% about investment opportunities.[15] In addition, 78% of young people in Germany want economics to play a greater role in school.[16] A stronger focus on economic and financial topics in the school curriculum would fall on fertile ground, then.

    5 Conclusion

    The Eurosystem is well equipped to maintain stable prices in the euro area through independence and a clear mandate. But in stormy times especially, we need to be firmly anchored upon a strong foundation, comprising elements such as sound public finances, integrated markets and confidence in the central bank. This foundation must be maintained, and, where necessary, re-laid.

    First and foremost, we are, of course, required to say what we are doing and to do what we are saying. Central bankers would be well advised to adhere to this guiding principle. However, what is also clear is that we cannot guarantee the strength of the euro as a currency by acting alone; rather, politicians and society as a whole have their own parts to play. Pöhl’s contemporary Helmut Schlesinger, who recently turned 100 years old, coined the term “stability culture”.[17]

    I would like to close by citing a quote of Karl Otto Pöhl’s that holds as true today as it originally did over 40 years ago: “There is no law of nature stating that we are entitled to live on an “island of stability”. Such a privilege has to be earned through applying a durable stability policy.”[18] Indeed, this is what we in the Eurosystem are working towards on a day-to-day basis, and I am confident that we will succeed.

    Footnotes

    1. Pöhl, K. O., Rede zur deutschen und europäischen Währungsunion vor der Frankfurter Gesellschaft für Handel, Industrie und Wissenschaft, 30 May 1990. 
    2. Allard, J., M. Catenaro, J. Vidal and G. Wolswijk (2013), Central bank communication on fiscal policy, European Journal of Political Economy, Vol. 30.
    3. Pöhl, K. O., Rede zur deutschen und europäischen Währungsunion vor der Frankfurter Gesellschaft für Handel, Industrie und Wissenschaft, 30 May 1990.
    4. European Central Bank, Financial Integration and Structure in the Euro Area, June 2024.
    5. European Commission (2024), Standard Eurobarometer 101 – Spring 2024.
    6. Christelis, D., D. Georgarakos, T. Jappelli and M. van Rooij (2020), Trust in the Central Bank and Inflation Expectations, International Journal of Central Banking, Vol. 16, No 6; Mellina, S. and T. Schmidt (2018), The role of central bank knowledge and trust for the public’s inflation expectations, Deutsche Bundesbank Discussion Paper No 32/2018; Bursian, D. and E. Faia (2018), Trust in the monetary authority, Journal of Monetary Economics, Vol. 98. 
    7. Eickmeier, S. and L. Petersen (2024), Toward a holistic approach to central bank trust, Deutsche Bundesbank Discussion Paper No 27/2024.
    8. Die Macht des Wortes, interview with manager magazin on 1 June 1988.
    9. Niţoi, M. and M. Pochea (2024), Trust in the central bank, financial literacy, and personal beliefs, Journal of International Money and Finance, Vol. 143.
    10. Charalambakis, E., O. Kouvavas and P. Neves (2024), Rate hikes: How financial knowledge affects people’s reactions, The ECB Blog, 15 August 2024. 
    11. Kaiser, T. and A. Lusardi (2024), Financial literacy and financial education: An overview, CEPR Discussion Paper No 19185; Deuflhard, F., D. Georgarakos and R. Inderst (2019), Financial literacy and savings account returns, Journal of the European Economic Association, Vol. 17, No 1.
    12. Lusardi, A., P.-C. Michaud and O. S. Mitchell (2017): Optimal Financial Knowledge and Wealth Inequality, Journal of Political Economy, Vol. 125(2).
    13. Demertzis, M., L. L. Moffat, A. Lusardi and J. M. López (2024), The state of financial knowledge in the European Union, Policy Brief 04/2024, Bruegel.
    14. OECD (2024), Strengthening Financial Literacy in Germany: Proposal for a National Financial Literacy Strategy, OECD Publishing, Paris, https://doi.org/10.1787/81e95597-en.
    15. OECD (2024), Financial literacy in Germany: Supporting financial resilience and well-being, OECD Business and Finance Policy Papers, https://www.oecd.org/en/publications/financial-literacy-in-germany_c7a28393-en.html.
    16. Bertelsmann Stiftung (2024), Factsheet: Wirtschaftspolitische Interessen junger Menschen in Deutschland.
    17. Schlesinger, H., Eine europäische Währung muß genauso stabil sein wie die D-Mark, Handelsblatt, 31 December 1991.
    18. Welt am Sonntag, 12 April 1981.

    MIL OSI Economics –

    January 25, 2025
  • MIL-OSI Economics: Per Jacobsson Lecture 2024 — Ngozi Okonjo-Iweala: “Delivering on new global challenges: How can we keep multilateral coherence whilst re-imagining the multilateral trading system?”

    Source: WTO

    Headline: Per Jacobsson Lecture 2024 — Ngozi Okonjo-Iweala: “Delivering on new global challenges: How can we keep multilateral coherence whilst re-imagining the multilateral trading system?”

    Excellencies, Dear Raghu, Minouche, Maury, ladies and gentlemen, friends,
    Thank you. What an honor to follow in the footsteps of previous Per Jacobsson lecturers – all the more so in this 80th anniversary year of the Bretton Woods Conference.
    We are living in troubled times – something Per Jacobsson knew well. So far as trade is concerned, the times are not only troubled, they are tense. Trade is sometimes blamed and scapegoated for poor outcomes that really derive from macroeconomic, technology, or social policy, for which trade is not responsible.
    Trade policies and tools are being deployed not just to solve trade-related problems, but also to try to address security and geopolitical concerns.
    As unilateral measures or threats thereof become increasingly widespread, trade policy has been getting more restrictive. In recent months, the US, the EU, Turkey, and Canada have introduced new tariffs and countervailing duties on Chinese electric vehicles and other products, including steel. China has countered with WTO disputes and measures against EU products such as dairy, pork, and brandy. 
    These are among the over 130 new trade-restricting measures recorded by the WTO Secretariat since the start of this year. This number represents an 8% increase to the stockpile of over 1600 restrictive measures introduced between 2009 and 2023, which as of last year were already affecting over 10% of world goods trade. In addition, WTO members initiated 210 trade remedy investigations in the first half of 2024 – nearly as many as in all of 2023. While not all will culminate in the imposition of duties, investigations have a well-documented chilling effect on trade. And I haven’t even mentioned subsidies yet. 
    Frictions are manifesting as trade disputes. Six of the eight WTO disputes initiated this year deal with green technologies, particularly electric vehicles.
    I hope we are not on a path that leads back to the sort of economic disorder that came before Bretton Woods – disorder that was followed by political extremism and war.
    It was precisely to avoid a repeat of such circumstances that the multilateral economic institutions were created. My concern today is that we have forgotten this lesson – that we have forgotten the good these institutions have done.
    Walking away from the legacy of Bretton Woods, including the trading system, would diminish the world’s ability – collectively and at the national level – to respond to problems affecting people’s lives and opportunities.
    I will argue that there is a better path forward: re-imagining the global trading system and the rest of the multilateral economic architecture to help us meet the technological, environmental, social and geopolitical challenges of our time. To succeed, its various components must work in concert – an idea we have come to call ‘coherence’.
    In the 1940s, the overall thrust of coherence was that trade, reconstruction financing, and monetary policymaking need to be in harmony with each other, and anchored in institutions and rules across countries, to promote growth, prosperity, and peace.
    Today, delivering lasting improvements to people’s lives and livelihoods requires us to solve problems of the global commons.
    The notion of coherence across different policy areas would have made sense to Per Jacobsson. His convictions about sound money, and its importance for durable growth and recovery, were shaped by his own experiences. As a young man he saw the collapse of global economic integration amid the First World War. From his position at the League of Nations in the 1920s, he witnessed the failed attempts by leading economies to establish effective international coordination on global finance and trade – a memory that echoes uncomfortably today.
    We know what happened when the downturn came at the end of the decade. Vicious circles emerged: of falling output, deflation, banking and financial crises, trade protectionism and retaliation, and exchange rate chaos. Countries retreated into increasingly isolated economic blocs.
    The experience of those years was seared into the consciousness of the officials who gathered in Bretton Woods in July 1944. US Treasury Secretary Henry Morgenthau opened the conference by looking back at what he called “the great economic tragedy of our time.” I quote “We saw currency disorders develop and spread from land to land, destroying the basis for international trade and international investment and even international faith. In their wake, we saw unemployment and wretchedness — idle tools, wasted wealth. We saw their victims fall prey, in places, to demagogues and dictators. We saw bewilderment and bitterness become the breeders of fascism and, finally, of war.”
    What Bretton Woods delivered
    The genius of Bretton Woods was that it turned the vicious circles of the 1930s into virtuous ones, by recognizing that macro-financial stability, reconstruction and development, and trade went hand-in-hand.
    Instead of beggar-thy-neighbor policies, countries would treat trade, monetary issues, and even domestic macro-economic policies as matters of common interest.
    Instead of excessively rigid or chaotically fluctuating currencies, there would be orderly, rules-based management of exchange rates and balance of payments problems.
    Instead of underinvestment, there would be long-term financing for reconstruction and expanding productive capacity.
    Instead of quantitative restrictions, prohibitive tariffs, and bilateral clearing, there would be a coordinated lowering of trade barriers, and freedom to undertake international payments and current account transactions.
    The idea of coherence across policy fields, with trade as a unifying theme, was baked into the system from day one. Promoting the “balanced growth of international trade” is written into the founding mandates of both the IMF and the World Bank – not as an end in itself, but as a means to higher employment, productivity, and incomes.
    The trade leg of the stool, alongside the Bank and the IMF, was supposed to be the International Trade Organization, but it ran aground in the US Congress. A parallel negotiating process in 1947 produced the General Agreement on Tariffs and Trade, which was nominally temporary and did not require Congressional ratification. Successive rounds of GATT negotiations substantially reduced barriers to trade. The growing number of “contracting parties” used the GATT to resolve and avoid trade disputes. By the 1960s, global trade was growing faster than output.
    The decades that followed Bretton Woods and the Marshall Plan delivered a breathtaking recovery from the devastation of the Second World War.
    Strong growth in the 1950s and 1960s saw per capita incomes in Western Europe and Japan begin to converge with those in the United States.
    Major European currencies achieved full convertibility in 1958, when Per Jacobsson was leading the IMF.
    These gains, however, were largely confined to industrialized countries.
    Most newly independent developing countries continued to lose ground in relative terms, as they struggled with declining terms of trade for their commodities.
    But a handful of poor economies in East Asia started trying to use increasingly open external markets to pursue export-led development.
    Discordance and reinvention: the 1970s and 1980s
    Coherence gave way to discordance in the 1970s, with the oil shocks, stagflation, the advent of floating exchange rates, and a wave of emerging market debt crises.
    By the mid-1980s, the success of the so-called Asian tigers had become a compelling example, inspiring many developing country governments to pivot from inward-oriented to export-oriented development strategies.
    At the international level, growing frustration with ad hoc protectionism and “à la carte” approaches to GATT strictures created demand for more rules-based trade cooperation.
    The Uruguay Round negotiations from 1986 to 1994 broadened the reach of multilateral trade rules to cover services and intellectual property, filled longstanding gaps with respect to agriculture and textiles, and unwound much of the protectionism that had emerged in the preceding years.
    The nominally provisional GATT was transformed into the World Trade Organization, with a binding dispute resolution mechanism that enhanced the predictability offered by its expanded rulebook.
    The preamble to the Marrakesh Agreement establishing the WTO opened up new vistas for the organization, defining its purpose as using trade not just to raise living standards and create jobs but to advance sustainable development – thus introducing environmental concerns that were absent in the 1940s.
    1990 to 2020: A “golden period of economic development”, but clouds on the horizon
    The Uruguay Round and the end of the Cold War would mark a second era of coherence and virtuous circles across the trading system, the World Bank, and the IMF. And this time, the benefits were spread much more widely across countries and people.
    The WTO became an anchor for outward-oriented economic reforms in many emerging markets and developing economies.
    Increasingly open and predictable trade became a stronger driver of development, productivity, specialization and scale.
    Better macro-financial policies bolstered growth – and trade performance – in many emerging markets and developing countries. So did improved human capital and physical infrastructure.
    Trade and modern supply chains became powerful sources of disinflationary pressures.
    Market-oriented reforms in China, Eastern Europe, India and other developing economies brought them into the increasingly global division of labor. Trade boomed, incomes rose, and poverty plummeted.
    Between 1995 and 2022, as low- and middle-income economies nearly doubled their share in global exports from 16 to 32%, the share of their populations subsisting on less than US$2.15 per day fell from 40% to under 11%. Over 1.5 billion people were lifted out of extreme poverty.
    Since 1995, per capita incomes in low- and middle-income countries have nearly tripled, and global per capita income increased by approximately 65 percent.
    For the first time since the industrial revolution two centuries earlier, per capita incomes in rich and poor countries began to converge.
    Gains for poor countries did not come at the expense of rich ones. Examining the United States since 1950, researchers at the Peterson Institute for International Economics (PIIE) have shown that international trade boosted the economy by the equivalent of $2.6 trillion in 2022, or about 10% of GDP. The gains from trade would be even larger for small, open advanced economies.
    In a Foreign Affairs piece this year, Dev Patel, Justin Sandefur, and Arvind Subramanian called the years between 1990 and the start of COVID-19 pandemic in 2020, I quote, “history’s most golden period of economic development”.   They argue that the rapid increase in trading opportunities was “perhaps the most important enabler” of convergence.
    Research from our new World Trade Report backs them up: the pace of income convergence of low- and middle-income economies is strikingly correlated with their participation in global trade, as measured by a size-adjusted ratio of trade to GDP. Our simulations suggest falling trade costs account for as much as one-third of the convergence.
    To be clear, the period was not golden for everyone. Developing countries with lower trade participation or greater commodity-dependence – mostly in Africa, Latin America and the Caribbean, and the Middle East – lagged on convergence. And in some rich countries, many people felt left behind, and their frustration started to fuel a political backlash against trade.
    Multilateral rule-making on trade began to falter, with the failure of the Doha Round of WTO negotiations.
    Nevertheless, in 2008 and 2009, when the world economy faced its worst financial crisis since the 1930s, the system worked.
    International markets stayed broadly open. The rules and norms of the multilateral trading system helped governments contain protectionist pressures.
    Alongside fiscal and monetary support, trade was a powerful shock absorber. Crisis-hit countries could rely on predictable market access elsewhere to absorb their excess supply, preventing growth and development from getting derailed.
    The WTO, the World Bank, and the IMF also worked together productively on the macro-micro policy nexus.
    For instance, when trade finance dried up during the credit crunch, despite being extremely low-risk, the three institutions joined hands to encourage G20 members and international financial institutions to step in with a $250 billion support package.
    Since the financial crisis, the multilateral trading system, with the WTO at its core, has continued to deliver economic benefits, despite rising geopolitical tensions and tariffs between the US and China, the disabling of the Appellate Body, and the failure to reach agreements in long-running negotiations such as those on agriculture. Global trade kept reaching new highs through the 2010s, and over 75% of global goods trade continued – and continues today – to operate on core WTO tariff terms.
    When COVID-19 hit in 2020, the norms and rules of the multilateral trading system mostly did their job again. Trust in trade was damaged by initial missteps, as governments enacted export restrictions on medical supplies and vaccines. But governments generally refrained from widespread protectionism, allowing food and other essentials to flow across borders to where they were needed. Goods trade rebounded strongly from the lockdowns and was soon setting new records. Cross-border supply chains churned out products needed to fight the pandemic, from face masks to vaccines. Trade in digitally-delivered services boomed, propelled by the same technologies that allowed so many of us to work from home.
    Goods and especially services trade are now well above pre-COVID levels.  Last year, global trade was worth a near-record $30.5 trillion, in a $105-trillion world economy.
    Re-imagining the Multilateral Trading System with coherence
    As we saw at the outset, however, these successes did not forestall the challenges we now face in global trade. While trade has been largely resilient, signs of fragmentation are now visible.
    So it’s not difficult to imagine a return of vicious circles – trade restrictions, efficiency losses, slower growth, higher prices, costs imposed by extreme weather and food insecurity, and public frustration and anger.
    Allowing the vicious circles to take hold and the world to fragment into isolated trading blocs would be costly. The WTO has estimated longer term global GDP losses in the order of 5% were the world to fragment into two like-minded trading blocs. IMF estimates are in the order 7%. We cannot afford this!
    And that is why we need to re-imagine the multilateral trading system to solve modern challenges and address modern vulnerabilities.
    This means re-imagining coherence as well. Trade alone was insufficient in 1944, and trade alone is insufficient to build the more secure, sustainable, and inclusive world we want today.  The way forward for trade will increasingly be about “WTO and” – trade in tandem with other issues, and policies that support the original vision of coherence and do not misuse trade tools, for coercion, as a weapon, or to undermine competition.
    Our unfinished business from 1944 was elegantly illustrated by a recent blog post from IMF chief economist Pierre-Olivier Gourinchas and his team.
    They showed that China’s growing and contentious trade surplus, and the US’s widening trade deficit, are the result of domestic macro-economic forces, rather than the product of trade and industrial policies.
    “Homegrown surpluses and deficits call for homegrown solutions,” they argued, suggesting demand-boosting measures in China and fiscal consolidation in the US.
    As for concerns over industrial policy, they said the right response was to strengthen WTO rules, not to restrict trade.
    They cited the WTO’s recent China Trade Policy Review which showed new data of billions of dollars in subsidies going to manufacturing. Urging China to be more transparent about its subsidies.
    The blog shows the coherence mandate in action but it also illustrates how even today, the global trading system is paying a price for shortcomings of macro-economic policy.
    As Sylvia Ostry, one of my predecessors at this podium, said in 1987, “Trade policy is no substitute for macro policy.”
    Let’s now turn to the new trade agenda, and look at three areas where future prospects for people and the planet require trade to be re-imagined, and complemented by other policy levers pulling in the same direction.
    First, the environmental agenda, above all climate change and getting to net zero by mid-century.
    Trade is indispensable to deploy low-carbon technologies globally. Trade lets countries share the burden of developing new green tech. Scale economies and competitive pressures associated with trade help drive down unit costs, making it possible for renewables to undercut fossil fuel energy.
    Trade also allows us to leverage ‘green comparative advantage’, a concept that our chief economist, Ralph Ossa, has done much to advance. The idea is straightforward: just as individuals and countries can reap economic gains by specializing in what they are relatively good at, the world can reap environmental gains if countries specialize in what they are relatively green at.
    If countries with abundant clean energy can produce more energy-intensive goods and services, while importing energy-light products from places where clean energy is scarce, and vice versa, global emissions fall much more than they would have absent that trade. And in fact research from the University of Zurich  suggests that as much as one-third of global emissions reductions could come from this kind of specialization linked to green comparative advantage.
    As Ricardo Hausmann at Harvard has observed, fossil fuels are cheap to transport, but wind and solar energy are not. This makes parts of Africa, Central Asia, and Latin America with high green energy potential attractive destinations for investment in energy-intensive industries, including the production of green hydrogen.
    Global cooperation on internalizing carbon costs would incentivize greener sourcing everywhere. Nevertheless, we are already seeing moves in the right direction as in Kenya, which has attracted a billion-dollar investment to build a geothermal-powered low-carbon data center.
    Parenthetically, a similar dynamic exists for water, provided it is valued correctly. A recent report of the Global Commission on the Economics of Water, which I co-chair, shows that with trade one can also promote the notion of a hydrological comparative advantage. Trade can help mitigate water scarcity by allowing countries with abundant hydrological resources to specialize in producing water-intensive products for export to water-scarce nations.  Such virtual water trade offers agricultural export opportunities, for example, to those regions including countries in Africa with under-utilized ground water resources and land.
    But just as environmental policy coordination could accelerate climate action, policy fragmentation could weaken it.  There is a genuine risk that trade frictions associated with carbon pricing, green subsidies, and other climate policies will escalate into trade restrictions and retaliation, harming emissions reduction as well as trade.
    We should seek to pre-empt such frictions and disputes by establishing shared frameworks for trade and climate policy. The goal would be to maximize emissions reduction and green innovation, while minimizing negative spillovers, trade tensions, and wasted public resources on subsidy races that most countries may not even afford to participate in.
    To this end, the WTO Secretariat is coordinating a carbon pricing task force comprised of the IMF, World Bank, OECD, UNCTAD, and UNFCCC, where we are working to develop shared carbon metrics and ultimately a global carbon pricing framework against which we can benchmark national policies to aid interoperability of approaches. We have also joined hands with the IMF, the OECD, and the World Bank to explore approaches to enhance greater transparency with respect to subsidies. And we are working with the steel industry to help them promote interoperability in decarbonization standards, reducing transaction costs and facilitating trade and investment in green steel.
    Reforming the over $1.2 trillion in direct global annual fossil fuel subsidies, the $630 billion in trade-distorting agricultural support, and the $22 billion in harmful fisheries subsidies (which the WTO Fisheries Subsidies Agreement is delivering) should be a no-brainer. Some of the resources freed up could be repurposed to support green innovation and a just transition for poor countries.
    The second set of opportunities for the Multilateral Trading System deals with diversifying and decentralizing supply chains – and doing so in a manner that brings in countries and communities that remain on the margins of the global division of labor.
    More diversified global production networks would enhance supply security in an increasingly shock-prone world, while extending the benefits of trade to places and people that have not shared adequately in them. Greater diversification would also help lower the geopolitical temperature around supply chain relationships, by making them harder for any single country to weaponize.
    As the pandemic and the war in Ukraine made abundantly clear, overconcentration makes supply chains vulnerable in a crisis.
    The advent of COVID-19, concentrated minds on the fact that 80% of world vaccine exports came from only ten countries. This meant export restrictions in a few of them severely disrupted global access to vaccines – especially to Africa, which relied on imports for 99% of its jabs.
    Decentralizing value chains and building up pharmaceutical production capacity in Africa and other developing country regions for instance would make the global supply base more resilient in the event of future pandemics, whilst more closely integrating these regions in to world trade, and making them part of a more prosperous and healthy world.
    Critical minerals is another sector where there are major opportunities to mitigate concerns about overconcentration in mining and especially processing, while stimulating growth in developing countries. 
    Exports of minerals critical for the low-carbon transition, like lithium, cobalt, nickel, and rare earths, have grown rapidly to reach USD 320 billion in value in 2022, and are set to increase much more in the years ahead. Africa, for example, represents 40% of estimated global reserves of cobalt, manganese, and platinum; and 12% of world exports of critical minerals, but only 3.8% of exports of processed minerals.
    By investing in processing these minerals within the regions including in Central Asia and Latin America where they are found, we can promote value addition and job creation while removing supply bottlenecks that currently threaten to hold back the low-carbon transition.
    Furthermore, to the extent that this process is powered by green hydrogen and other kinds of clean energy, it would harness the green comparative advantage I mentioned earlier and thereby help the developing regions increase their share in world trade.
    It would be green growth and green trade – the ‘re-globalization’ we want.
    Finally, there are areas where cross-border commerce is flourishing, but where new rules are necessary to foster predictability and lower barriers to entry for smaller businesses and developing economies.
    The fastest growing segment of international trade is in services delivered across borders via computer networks. Trade in digitally-delivered services – everything from streaming video to remote consulting – has quadrupled since 2005, reaching $4.25 trillion in value last year. These services have become an increasingly important driver of growth and job creation.
    The commercialization of artificial intelligence promises to further accelerate digital trade. A forthcoming WTO report describes how AI could reduce trade and transaction costs, improve supply chain logistics, and shift countries’ comparative advantages.
    I always say the future of trade is digital, but the future of protectionism could be as well. Imports of digital services could become as contentious as manufactured imports have, or more so – inviting digital barriers that are even simpler to put in place than their counterparts for trade in physical goods.
    Putting in place some basic rules for digital trade would reduce the risks of such reversals. The 90-odd members participating in plurilateral e-commerce negotiations at the WTO are now looking to conclude a first phase agreement on a series of practical measures to facilitate digital trade, from common rules for e-signatures and payments, to paperless trading, and consumer protection. Tougher issues like cross-border data flows – a critical element in AI – will be dealt with in a second phase of negotiations.
    Delivering on this agenda for the future will involve strengthening all of the WTO’s functions: monitoring and transparency, negotiations, and dispute settlement.
    With respect to our dispute settlement system, we are working to reform it. The reform process has wide buy-in, and talks are advancing, including on issues like appeal review and accessibility to ensure that developing countries can use the system. There are delicate issues here around how national security exceptions will be handled – it is going to take work!
    We will need to negotiate and implement new rules in important areas like the environment. Some members are showing the way: New Zealand, Costa Rica, Switzerland, and Iceland recently agreed to liberalize trade in a list of hundreds of environmental goods, and they are trying to get others to join.
    We are working on getting an Agreement on Investment Facilitation for Development, negotiated by three-quarters of our membership, into the WTO rulebook. This agreement will help developing economies attract FDI by simplifying investment-related procedures and sweeping away red tape.
    We will also need to review existing rules to make them fit for purpose. Instead of members doing an end run around our Agreement on Subsidies and Countervailing Measures to introduce industrial policies, it would be better to update that agreement. It actually dates back to 1994 – seven years before China joined the WTO,  [a time when climate concerns were barely on the radar screen, and the conventional wisdom was that state-owned enterprises were a fading relic of a bygone era]. Members could decide to create space for subsidizing the green transition. Shared ground rules would help minimize negative spillovers and related trade tensions, while maximizing efficiency in the use of public resources. 
    Excellencies, ladies, and gentlemen. Let me now conclude.
    As I said at the start, these are tense times for trade. There are political dynamics outside our control. But we can treat the challenges we face as opportunities to re-imagine the global trading system.
    We can build global resilience whilst making the system more supportive of inclusive growth and environmental sustainability.
    We can make existing trade rules more fit for purpose rather than go around or against them and we can make new rules fit for the time.
    We can help developing countries left behind by the recent wave of global economic integration.
    We can have interdependence without overdependence.
    While nothing is ever easy at the WTO, we are moving in the right direction. We will manage what we can manage. Control what we can control. But we will need your help.
    Over the past eight decades, the multilateral economic architecture, including the trading system, has delivered a great deal for the world. We have reinvented it before. We can do so again, for people and planet.
    Nelson Mandela once wrote that “after climbing a great hill, one only finds that there are many more hills to climb.” I ask you, let’s climb these hills together.
    Thank you.

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    MIL OSI Economics –

    January 25, 2025
  • MIL-OSI USA: Senate Public Safety Chairman John Albers, Majority Leader Steve Gooch Demand Border Security Action Following Murder of Minelys Zoe Rodriguez-Ramirez

    Source: US State of Georgia

    ATLANTA (October 31, 2024) — Senate Committee on Public Safety Chairman, Sen. John Albers (R–Roswell) and Senate Majority Leader Sen. Steve Gooch (R–Dahlonega) today issued statements following the tragic murder of Minelys Zoe Rodriguez-Ramirez, whose body was recovered last week after her disappearance from Cornelia, Georgia.

    Sen. Albers expressed his thoughts regarding the events leading to Rodriguez-Ramirez’s death, drawing a strong connection to a lack of border security and urging immediate federal action:

    “It is with profound sadness and frustration that we mourn the senseless murder of Minelys Zoe Rodriguez-Ramirez. Known as ‘Mimi’ to her friends, 25-year-old Rodriguez-Ramirez worked hard to build a life here in Georgia. She was last seen on October 22, 2024, at a Walmart in Cornelia, and her body was tragically found a week later. She leaves behind a grieving family, including a 9-year-old daughter.

    Mimi was a legal immigrant from Puerto Rico who followed every step of the process to live and work in the United States. She secured employment with Mt. Vernon Hills, Inc. and tirelessly supported her daughter, mother and fiancé. She did everything right, yet her life was cut short because of our federal government’s repeated failure to protect its own citizens.

    The suspected murderer, Angel DeJesus Rivera-Sanches, an illegal immigrant who had no right to be here, was apprehended in Atlanta as he tried to flee back to Mexico. He has been charged with kidnapping in connection to her disappearance.

    Once again, our open-border policies have claimed another innocent life on American soil, right here in Georgia. I commend the swift work of the Habersham Sheriff’s Office, the Georgia Bureau of Investigation, and all agencies involved in apprehending this suspect. My colleagues in the Senate and I will remain unwavering in our commitment to securing our state and nation. Earlier this year, we acted decisively with House Bill 1105, the Georgia Criminal Alien Track and Report Act, which I proudly carried in the Senate and was signed into law by Governor Brian Kemp.

    How many more lives must be lost due to the open-border policies in Washington, D.C.? The administration’s failure to address this issue impacts families here in Georgia and across the United States. Earlier this year, our community mourned the tragic death of Laken Riley, a resident of my district, and now we mourn Mimi Rodriguez-Ramirez. These were preventable tragedies, and we will not forget them. Say their names.”

    Senate Majority Leader Steve Gooch echoed Sen. Albers’ sentiments, calling for immediate and stronger federal action on border control to prevent such tragedies in the future:

    “The murder of Minelys Zoe Rodriguez-Ramirez, so close to my district, is a tragedy that should prompt us all to question how much longer we will put our own people at risk due to Washington’s failure to secure our borders. Mimi followed the law, worked hard and raised a family here, yet her life was stolen by an illegal alien who had no right to be in this country. Enough is enough. We must protect our families, uphold the dignity of those who respect our laws and restore the security that every community deserves.”

    # # # #

    Sen. John Albers serves as Chairman of the Senate Committee on Public Safety. He represents the 56th Senate District which includes portions of Cherokee, Cobb and North Fulton counties. He may be reached at his office at 404.463.8055 or by email at john.albers@senate.ga.gov.

    Sen. Steve Gooch serves as Senate Majority Leader. He represents the 51st Senate District which includes Dawson, Fannin, Gilmer, Lumpkin, Union and Pickens counties and a portion of White County. He may be reached at 404.656.7872 or via email at steve.gooch@senate.ga.gov.

    For all media inquiries, please reach out to SenatePressInquiries@senate.ga.gov.

    MIL OSI USA News –

    January 25, 2025
  • MIL-OSI: Eos Energy Achieves Second Set of Performance Milestones Related to Cerberus Strategic Investment

    Source: GlobeNewswire (MIL-OSI)

    TURTLE CREEK, Pa., Oct. 31, 2024 (GLOBE NEWSWIRE) — Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos” or the “Company”), a leading provider of safe, scalable, efficient, and sustainable zinc-based long duration energy storage systems, today announced the successful achievement of all four of the second performance milestones previously agreed upon between Eos and an affiliate of Cerberus Capital Management LP (“Cerberus”) as part of Cerberus’s strategic investment in the Company. Achieving these performance milestones enables the Company to draw an additional $65 million from the Delayed Draw Term Loan.

    About Eos Energy Enterprises

    Eos Energy Enterprises, Inc. is accelerating the shift to clean energy with positively ingenious solutions that transform how the world stores power. Our breakthrough Znyth™ aqueous zinc battery was designed to overcome the limitations of conventional lithium-ion technology. It is safe, scalable, efficient, sustainable, manufactured in the U.S., and the core of our innovative systems that today provides utility, industrial, and commercial customers with a proven, reliable energy storage alternative for 3 to 12-hour applications. Eos was founded in 2008 and is headquartered in Edison, New Jersey. For more information about Eos (NASDAQ: EOSE), visit eose.com.

    Contacts        
    Investors:     ir@eose.com
    Media:          media@eose.com

    Forward Looking Statements

    Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our expected revenue, contribution margins, orders backlog and opportunity pipeline for the fiscal year ended December 31, 2024, our path to profitability and strategic outlook, the tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act of 2022, the delayed draw term loan, milestones thereunder and the anticipated use of proceeds therefrom, statements regarding our ability to secure final approval of a loan from the Department of Energy LPO, or our anticipated use of proceeds from any loan facility provided by the US Department of Energy, statements that refer to outlook, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected.

    Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to achieve the operational milestones on the delayed draw term loan; our ability to raise financing in the future, including the discretionary revolving facility from Cerberus; risks associated with the credit agreement with Cerberus, including risks of default, dilution of outstanding Common Stock, consequences for failure to meet milestones and contractual lockup of shares; our customers’ ability to secure project financing; the amount of final tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act, uncertainties around our ability to meet the applicable conditions precedent and secure final approval of a loan, in a timely manner or at all from the Department of Energy, Loan Programs Office, or the timing of funding and the final size of any loan that is approved; the possibility of a government shutdown while we work to meet the applicable conditions precedent and finalize loan documents with the U.S. Department of Energy Loan Programs Office or while we await notice of a decision regarding the issuance of a loan from the Department Energy Loan Programs Office; our ability to continue to develop efficient manufacturing processes to scale and to forecast related costs and efficiencies accurately; fluctuations in our revenue and operating results; competition from existing or new competitors; our ability to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to the U.S. trade environment; risks resulting from the impact of global pandemics, including the novel coronavirus, Covid-19; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to the adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; the possibility that Eos may be adversely affected by other economic, business, and/or competitive factors; other factors beyond our control; risks related to adverse changes in general economic conditions; and other risks and uncertainties.

    The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in the Company’s most recent filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that the Company makes with the Securities and Exchange Commission from time to time. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.

    Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

    The MIL Network –

    January 25, 2025
  • MIL-OSI: Silvercrest Asset Management Group Inc. Reports Q3 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) — Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter ended September 30, 2024.

    Business Update

    Supportive markets and improving economic conditions helped Silvercrest’s assets under management (“AUM”) growth during the third quarter, pointing to improved top-line revenue. The firm also saw improved business development results and will report a robust pipeline of new business opportunities. A persistent trend of the market’s recovery since 2022 has been the narrow leadership of Large Cap Growth equities. We noted during our second quarter earnings call that, despite progress in the market, Large Cap Value and Small Cap stocks, had actually declined during that quarter. We have been pleased to see broader company market participation throughout the third quarter and an increase in equities across the market cap spectrum, which benefits Silvercrest’s diversified wealth management business as well as our exposure to the small cap institutional business. The increases during the quarter bode well for future revenue. We are optimistic about securing significant organic net flows over the next two quarters.

    Silvercrest’s discretionary AUM increased $1.0 billion during the quarter to $22.6 billion, primarily due to rising markets. This net increase in discretionary AUM – which drives revenue – represents a 5% increase since the second quarter and a year-over-year increase of 10% since the third quarter of 2023. New client accounts and relationships increased during the quarter, led by new Silvercrest Small Cap Opportunity mandates. While we report discretionary outflows during the third quarter, the outflows were revenue neutral to the firm. Overall, total asset flows and market increases were a net positive for the firm and should drive an increase in fourth-quarter revenue. Total AUM at the end of the third quarter was $35.1 billion. Total AUM increased year-over-year from the third quarter of 2023, up 13%. Despite these increases, Silvercrest has been investing in the future growth of the business, which has resulted in higher total compensation and which we have adjusted for on a quarterly basis. As a result, while top-line revenue has increased, most metrics of the business are down due to these higher expenses.

    Silvercrest’s pipeline of new institutional business opportunities increased during the third quarter by 20% and now stands at $1.2 billion. Importantly, the firm’s pipeline does not yet include potential mandates for our new Global Equity strategy which has a high capacity for significant inflows. Over the past two quarters, we have worked to build the infrastructure to support the team and strategy while undertaking business development. We are optimistic about near-term positive AUM flows and resulting revenue increases to result from the pipeline.

    I have consistently mentioned that Silvercrest has never had more business opportunities underway. We have made and will make investments to drive future growth in the business. We expect to make more hires to complement our outstanding professional team and to drive future growth. Silvercrest continues to accrue a higher interim percentage of revenue for compensation for this purpose, and, as mentioned, we will continue to adjust compensation levels to match these important investments in the business and will keep you informed of our plans and the progress of these investments.

    We continue to see substantial new opportunities globally for a firm with our high-quality capabilities, coupled with superior client service. 

    On October 30, 2024, the Company’s Board of Directors approved a quarterly dividend of $0.20 per share of Class A common stock.  The dividend will be paid on or about December 20, 2024 to stockholders of record as of the close of business on December 13, 2024.

    Third Quarter 2024 Highlights

    • Total Assets Under Management (“AUM”) of $35.1 billion, inclusive of discretionary AUM of $22.6 billion and non-discretionary AUM of $12.5 billion at September 30, 2024.
    • Revenue of $30.4 million.
    • U.S. Generally Accepted Accounting Principles (“GAAP”) consolidated net income and net income attributable to Silvercrest of $3.7 million and $2.3 million, respectively. 
    • Basic and diluted net income per share of $0.24.
    • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)1 of $6.3 million.
    • Adjusted net income1 of $3.8 million.
    • Adjusted basic and diluted earnings per share1, 2 of $0.27 and $0.26, respectively.

    The table below presents a comparison of certain GAAP and non-GAAP (“Adjusted”) financial measures and AUM.

        For the Three Months
    Ended September 30,
        For the Nine Months
    Ended September 30,
     
    (in thousands except as indicated)   2024     2023     2024     2023  
    Revenue   $ 30,424     $ 29,704     $ 91,689     $ 88,868  
    Income before other income (expense), net   $ 4,457     $ 6,519     $ 15,670     $ 19,788  
    Net income   $ 3,730     $ 5,380     $ 13,025     $ 15,825  
    Net income margin     12.3 %     18.1 %     14.2 %     17.8 %
    Net income attributable to Silvercrest   $ 2,252     $ 3,216     $ 7,917     $ 9,505  
    Net income per basic share   $ 0.24     $ 0.34     $ 0.83     $ 1.01  
    Net income per diluted share   $ 0.24     $ 0.34     $ 0.83     $ 1.00  
    Adjusted EBITDA1   $ 6,346     $ 8,000     $ 21,031     $ 24,297  
    Adjusted EBITDA Margin1     20.9 %     26.9 %     22.9 %     27.3 %
    Adjusted net income1   $ 3,801     $ 5,136     $ 12,921     $ 15,055  
    Adjusted basic earnings per share1, 2   $ 0.27     $ 0.37     $ 0.93     $ 1.08  
    Adjusted diluted earnings per share1, 2   $ 0.26     $ 0.36     $ 0.89     $ 1.05  
    Assets under management at period end (billions)   $ 35.1     $ 31.2     $ 35.1     $ 31.2  
    Average assets under management (billions)3   $ 34.2     $ 31.6     $ 34.3     $ 30.1  

    _________________

    1 Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibits 2 and 3.
    2 Adjusted basic and diluted earnings per share measures for the three and nine months ended September 30, 2024 are based on the number of shares of Class A common stock and Class B common stock outstanding as of September 30, 2024. Adjusted diluted earnings per share are further based on the addition of unvested restricted stock units, and non-qualified stock options to the extent dilutive at the end of the reporting period.
    3 We have computed average AUM by averaging AUM at the beginning of the applicable period and AUM at the end of the applicable period.
       

    AUM at $35.1 Billion

    Silvercrest’s discretionary assets under management increased by $2.1 billion, or 10.2%, to $22.6 billion at September 30, 2024, from $20.5 billion at September 30, 2023. The increase was attributable to market appreciation of $4.1 billion partially offset by net client outflows of $2.0 billion. Silvercrest’s total AUM increased by $3.9 billion, or 12.5%, to $35.1 billion at September 30, 2024, from $31.2 billion at September 30, 2023. The increase was attributable to market appreciation of $5.7 billion partially offset by net client outflows of $1.8 billion. 

    Silvercrest’s discretionary assets under management increased by $1.0 billion, or 4.6%, to $22.6 billion at September 30, 2024, from $21.6 billion at June 30, 2024. The increase was attributable to market appreciation of $1.3 billion and net client outflows of $0.3 billion. Silvercrest’s total AUM increased by $1.7 billion, or 5.1%, to $35.1 billion at September 30, 2024, from $33.4 billion at June 30, 2024. The increase was attributable to market appreciation of $1.9 billion and net client outflows of $0.2 billion.

    Third Quarter 2024 vs. Third Quarter 2023

    Revenue increased by $0.7 million, or 2.4%, to $30.4 million for the three months ended September 30, 2024, from $29.7 million for the three months ended September 30, 2023. This increase was driven by market appreciation partially offset by net client outflows.

    Total expenses increased by $2.8 million, or 12.0%, to $26.0 million for the three months ended September 30, 2024, from $23.2 million for the three months ended September 30, 2023. Compensation and benefits expense increased by $1.9 million, or 11.4%, to $18.6 million for the three months ended September 30, 2024, from $16.7 million for the three months ended September 30, 2023. The increase was primarily attributable to increases in the accrual for bonuses of $0.7 million, severance expense of $0.2 million, equity-based compensation of $0.2 million and salaries and benefits of $0.8 million primarily as a result of merit-based increases.  General and administrative expenses increased by $0.9 million, or 13.4%, to $7.4 million for the three months ended September 30, 2024, from $6.5 million for the three months ended September 30, 2023. This was primarily attributable to increases in occupancy and related costs of $0.1 million, professional fees of $0.2 million, portfolio and systems expense of $0.3 million and trade errors of $0.3 million.

    Consolidated net income was $3.7 million or 12.3% of revenue for the three months ended September 30, 2024, as compared to consolidated net income of $5.4 million or 18.1% of revenue for the same period in the prior year. Net income attributable to Silvercrest was $2.3 million, or $0.24 per basic share and diluted share for the three months ended September 30, 2024. Our Adjusted Net Income1 was $3.8 million, or $0.27 per adjusted basic share1, 2 and $0.26 per adjusted diluted share1, 2 for the three months ended September 30, 2024.

    Adjusted EBITDA1 was $6.3 million, or 20.9% of revenue for the three months ended September 30, 2024, as compared to $8.0 million or 26.9% of revenue for the same period in the prior year.

    Nine Months Ended September 30, 2024 vs. Nine Months Ended September 30, 2023

    Revenue increased by $2.8 million, or 3.2%, to $91.7 million for the nine months ended September 30, 2024, from $88.9 million for the nine months ended September 30, 2023. This increase was driven by market appreciation partially offset by net client outflows.

    Total expenses increased by $6.9 million, or 10.0%, to $76.0 million for the nine months ended September 30, 2024, from $69.1 million for the nine months ended September 30, 2023. Compensation and benefits expense increased by $4.8 million, or 9.6%, to $54.8 million for the nine months ended September 30, 2024, from $50.0 million for the nine months ended September 30, 2023. The increase was primarily attributable to increases in the accrual for bonuses of $3.0 million, severance expense of $0.2 million, equity-based compensation of $0.3 million and salaries and benefits of $1.3 million primarily as a result of merit-based increases.  General and administrative expenses increased by $2.1 million, or 11.1%, to $21.3 million for the nine months ended September 30, 2024, from $19.1 million for the nine months ended September 30, 2023. This was primarily attributable to increases in travel and entertainment expenses of $0.2 million, occupancy and related costs of $0.2 million, professional fees of $0.6 million, portfolio and systems expenses of $0.4 million, recruiting expenses of $0.3 million, trade errors of $0.3 million and depreciation and amortization expense of $0.1 million.

    Consolidated net income was $13.0 million or 14.2% of revenue for the nine months ended September 30, 2024, as compared to consolidated net income of $15.8 million or 17.8% of revenue for the same period in the prior year.  Net income attributable to Silvercrest was $7.9 million, or $0.83 per basic share and diluted share for the nine months ended September 30, 2024.  Our Adjusted Net Income1 was $12.9 million, or $0.93 per adjusted basic share1, 2 and $0.89 per adjusted diluted share1, 2 for the nine months ended September 30, 2024.

    Adjusted EBITDA1 was $21.0 million or 22.9% of revenue for the nine months ended September 30, 2024, as compared to $24.3 million or 27.3% of revenue for the same period in the prior year.

    Liquidity and Capital Resources

    Cash and cash equivalents were $58.1 million at September 30, 2024, compared to $70.3 million at December 31, 2023.  As of September 30, 2024, there was nothing outstanding under our term loan or under our revolving credit facility with City National Bank. 

    Silvercrest’s total equity was $84.6 million at September 30, 2024.  We had 9,503,410 shares of Class A common stock outstanding and 4,406,295 shares of Class B common stock outstanding at September 30, 2024.

    Non-GAAP Financial Measures

    To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with GAAP with Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures of earnings.  These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

    • EBITDA represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization.
    • We define Adjusted EBITDA as EBITDA without giving effect to the Delaware franchise tax, professional fees associated with acquisitions or financing transactions, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense.  We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings of the Company, taking into account earnings attributable to both Class A and Class B stockholders.  
    • Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA Margin, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring profitability of the Company, taking into account profitability attributable to both Class A and Class B stockholders.
    • Adjusted Net Income represents recurring net income without giving effect to professional fees associated with acquisitions or financing transactions, losses on forgiveness of notes receivable from our principals, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. Furthermore, Adjusted Net Income includes income tax expense assuming a blended corporate rate of 26%.  We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Net Income, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring income of the Company, taking into account income attributable to both Class A and Class B stockholders. 
    • Adjusted Earnings Per Share represents Adjusted Net Income divided by the actual Class A and Class B shares outstanding as of the end of the reporting period for basic Adjusted Earnings Per Share, and to the extent dilutive, we add unvested restricted stock units and non-qualified stock options to the total shares outstanding to compute diluted Adjusted Earnings Per Share. As a result of our structure, which includes a non-controlling interest, we believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Earnings Per Share, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings per share of the Company as a whole as opposed to being limited to our Class A common stock.

    Conference Call

    The Company will host a conference call on November 1, 2024, at 8:30 am (Eastern Time) to discuss these results. Hosting the call will be Richard R. Hough III, Chief Executive Officer, and President and Scott A. Gerard, Chief Financial Officer. Listeners may access the call by dialing 1-844-836-8743 or for international listeners the call may be accessed by dialing 1-412-317-5723.  A live, listen-only webcast will also be available via the investor relations section of www.silvercrestgroup.com.  An archived replay of the call will be available after the completion of the live call on the Investor Relations page of the Silvercrest website at http://ir.silvercrestgroup.com/.

    Forward-Looking Statements and Other Disclosures

    This release contains, and from time to time our management may make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to risks, uncertainties and assumptions. These statements are only predictions based on our current expectations and projections about future events. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those indicated by such forward-looking statements include, but are not limited to: incurrence of net losses; fluctuations in quarterly and annual results; adverse economic or market conditions; our expectations with respect to future levels of assets under management, inflows and outflows; our ability to retain clients; our ability to maintain our fee structure; our particular choices with regard to investment strategies employed; our ability to hire and retain qualified investment professionals; the cost of complying with current and future regulation coupled with the cost of defending ourselves from related investigations or litigation; failure of our operational safeguards against breaches in data security, privacy, conflicts of interest or employee misconduct; our expected tax rate; our expectations with respect to deferred tax assets, adverse economic or market conditions; incurrence of net losses; adverse effects of management focusing on implementation of a growth strategy; failure to develop and maintain the Silvercrest brand; and other factors disclosed under “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023, which is accessible on the U.S. Securities and Exchange Commission’s website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

    About Silvercrest

    Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser. With offices in New York, Boston, Virginia, New Jersey, California and Wisconsin, Silvercrest provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors.

    Silvercrest Asset Management Group Inc.

    Contact: Richard Hough
    212-649-0601
    rhough@silvercrestgroup.com

    Exhibit 1

    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
      Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     2024     2023  
                           
    Revenue                      
    Management and advisory fees $ 29,380     $ 28,425     $ 88,445     $ 85,445  
    Family office services   1,044       1,279       3,244       3,423  
    Total revenue   30,424       29,704       91,689       88,868  
    Expenses                      
    Compensation and benefits   18,598       16,691       54,760       49,945  
    General and administrative   7,369       6,494       21,259       19,135  
    Total expenses   25,967       23,185       76,019       69,080  
    Income before other (expense) income, net   4,457       6,519       15,670       19,788  
    Other (expense) income, net                      
    Other (expense) income, net   10       (37 )     25       31  
    Interest income   374       376       1,010       421  
    Interest expense   (15 )     (86 )     (95 )     (314 )
    Total other (expense) income, net   369       253       940       138  
    Income before provision for income taxes   4,826       6,772       16,610       19,926  
    Provision for income taxes   (1,096 )     (1,392 )     (3,585 )     (4,101 )
    Net income   3,730       5,380       13,025       15,825  
    Less: net income attributable to non-controlling interests   (1,478 )     (2,164 )     (5,108 )     (6,320 )
    Net income attributable to Silvercrest $ 2,252     $ 3,216     $ 7,917     $ 9,505  
    Net income per share:                      
    Basic $ 0.24     $ 0.34     $ 0.83     $ 1.01  
    Diluted $ 0.24     $ 0.34     $ 0.83     $ 1.00  
    Weighted average shares outstanding:                      
    Basic   9,541,407       9,354,747       9,510,495       9,452,576  
    Diluted   9,579,172       9,378,479       9,547,659       9,478,090  
                                   

    Exhibit 2

    Silvercrest Asset Management Group Inc.
    Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted EBITDA Measure
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
    Adjusted EBITDA Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     2024     2023  
    Reconciliation of non-GAAP financial measure:                      
    Net income $ 3,730     $ 5,380     $ 13,025     $ 15,825  
    Provision for income taxes   1,096       1,392       3,585       4,101  
    Delaware Franchise Tax   50       50       150       150  
    Interest expense   15       86       95       314  
    Interest income   (374 )     (376 )     (1,010 )     (421 )
    Depreciation and amortization   1,034       996       3,111       3,012  
    Equity-based compensation   535       353       1,374       1,047  
    Other adjustments (A)   260       119       701       269  
    Adjusted EBITDA $ 6,346     $ 8,000     $ 21,031     $ 24,297  
    Adjusted EBITDA Margin   20.9 %     26.9 %     22.9 %     27.3 %
                                   

    (A)  Other adjustments consist of the following:

      Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     2024     2023  
    Acquisition costs (a) $ —     $ —     $ —     $ 5  
    Severance   193       —       253       19  
    Other (b)   67       119       448       245  
    Total other adjustments $ 260     $ 119     $ 701     $ 269  
                                   
    (a) For the nine months ended September 30, 2023, represents professional fees of $5 related to the acquisition of Cortina.
       
    (b) For the three months ended September30, 2024, represents an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, data conversion costs of $14 and software implementation costs of $5.  For the nine months ended September 30, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of $12, an ASC 842 rent adjustment of $144 related to the amortization of property lease incentives, sign on bonuses paid to certain employees of $188, professional fees of $26 related to a transfer pricing project, legal fees of $46, data conversion costs of $14 and software implementation costs of $18.  For the three months ended September 30, 2023, represents an adjustment to the fair value of the tax receivable agreement of $40, an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, $23 related to moving costs and software implementation costs of $8.  For the nine months ended September 30, 2023, represents an adjustment to the fair value of the tax receivable agreement of $40, an ASC 842 rent adjustment of $144 related to the amortization of property lease incentives, $35 related to moving costs, software implementation costs of $28 and a fair value adjustment to the Cortina contingent purchase price consideration of ($2). 

    Exhibit 3

    Silvercrest Asset Management Group Inc.
    Reconciliation of GAAP to non-GAAP (“Adjusted”)
    Adjusted Net Income and Adjusted Earnings Per Share Measures
    (Unaudited and in thousands, except per share amounts or as noted)
     
    Adjusted Net Income and Adjusted Earnings Per Share Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     2024     2023  
    Reconciliation of non-GAAP financial measure:                      
    Net income $ 3,730     $ 5,380     $ 13,025     $ 15,825  
    Consolidated GAAP Provision for income taxes   1,096       1,392       3,585       4,101  
    Delaware Franchise Tax   50       50       150       150  
    Other adjustments (A)   260       119       701       269  
    Adjusted earnings before provision for income taxes   5,136       6,941       17,461       20,345  
    Adjusted provision for income taxes:                      
    Adjusted provision for income taxes (26% assumed tax rate)   (1,335 )     (1,805 )     (4,540 )     (5,290 )
                           
    Adjusted net income $ 3,801     $ 5,136     $ 12,921     $ 15,055  
                           
    GAAP net income per share (B):                      
    Basic $ 0.24     $ 0.34     $ 0.83     $ 1.01  
    Diluted $ 0.24     $ 0.34     $ 0.83     $ 1.00  
                           
    Adjusted earnings per share/unit (B):                      
    Basic $ 0.27     $ 0.37     $ 0.93     $ 1.08  
    Diluted $ 0.26     $ 0.36     $ 0.89     $ 1.05  
                           
    Shares/units outstanding:                      
    Basic Class A shares outstanding   9,503       9,342       9,503       9,342  
    Basic Class B shares/units outstanding   4,406       4,545       4,406       4,545  
    Total basic shares/units outstanding   13,909       13,887       13,909       13,887  
                           
    Diluted Class A shares outstanding (C)   9,541       9,366       9,541       9,366  
    Diluted Class B shares/units outstanding (D)   5,001       4,956       5,001       4,956  
    Total diluted shares/units outstanding   14,542       14,322       14,542       14,322  
                                   
    (A) See A in Exhibit 2.
       
    (B) GAAP earnings per share is strictly attributable to Class A stockholders.  Adjusted earnings per share takes into account earnings attributable to both Class A and Class B stockholders. 
       
    (C) Includes 37,109 and 23,732 unvested restricted stock units at September 30, 2024 and 2023, respectively.
       
    (D) Includes 228,117 and 264,037 unvested restricted stock units at September 30, 2024 and 2023, respectively, and 366,293 and 147,506 unvested non-qualified options at September 30, 2024 and 2023, respectively.

    Exhibit 4

    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Financial Condition
    (Unaudited and in thousands)
     
     
      September 30,
    2024
        December 31,
    2023
     
    Assets          
    Cash and cash equivalents $ 58,103     $ 70,301  
    Investments   219       219  
    Receivables, net   12,833       9,526  
    Due from Silvercrest Funds   860       558  
    Furniture, equipment and leasehold improvements, net   7,458       7,422  
    Goodwill   63,675       63,675  
    Operating lease assets   16,290       19,612  
    Finance lease assets   237       330  
    Intangible assets, net   17,216       18,933  
    Deferred tax asset—tax receivable agreement   3,749       5,034  
    Prepaid expenses and other assets   3,530       3,964  
    Total assets $ 184,170     $ 199,574  
    Liabilities and Equity          
    Accounts payable and accrued expenses $ 1,718     $ 1,990  
    Accrued compensation   27,238       37,371  
    Borrowings under credit facility   —       2,719  
    Operating lease liabilities   22,668       26,277  
    Finance lease liabilities   245       336  
    Deferred tax and other liabilities   9,423       9,071  
    Total liabilities   61,292       77,764  
    Commitments and Contingencies          
    Equity          
    Preferred Stock, par value $0.01, 10,000,000 shares authorized; none issued and outstanding   —       —  
    Class A Common Stock, par value $0.01, 50,000,000 shares authorized; 10,394,542 and 9,503,410 issued and outstanding, respectively, as of September 30, 2024; 10,287,452 and 9,478,997 issued and outstanding, respectively, as of December 31, 2023   104       103  
    Class B Common Stock, par value $0.01, 25,000,000 shares authorized; 4,406,295 and 4,431,105 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively   43       43  
    Additional Paid-In Capital   56,643       55,809  
    Treasury Stock, at cost, 891,132 shares as of September 30, 2024 and 808,455 as of December 31, 2023   (16,421 )     (15,057 )
    Accumulated other comprehensive income (loss)   (19 )     (12 )
    Retained earnings   44,227       41,851  
    Total Silvercrest Asset Management Group Inc.’s equity   84,577       82,737  
    Non-controlling interests   38,301       39,073  
    Total equity   122,878       121,810  
    Total liabilities and equity $ 184,170     $ 199,574  
                   

    Exhibit 5

    Silvercrest Asset Management Group Inc.
    Total Assets Under Management
    (Unaudited and in billions)
     
    Total Assets Under Management:
     
      Three Months Ended
    September 30,
        % Change from
    September 30,
     
      2024     2023     2023  
    Beginning assets under management $ 33.4     $ 31.9       4.7 %
                     
    Gross client inflows   1.1       0.6       83.3 %
    Gross client outflows   (1.3 )     (0.8 )     62.5 %
    Net client flows   (0.2 )     (0.2 )     0.0 %
                     
    Market appreciation/(depreciation)   1.9       (0.5 )   NM  
    Ending assets under management $ 35.1     $ 31.2       12.5 %
                           
      Nine Months Ended
    September 30,
        % Change from
    September 30,
     
      2024     2023     2023  
    Beginning assets under management $ 33.3     $ 28.9       15.2 %
                     
    Gross client inflows   2.9       4.5       -35.6 %
    Gross client outflows   (4.4 )     (3.5 )     25.7 %
    Net client flows   (1.5 )     1.0       -250.0 %
                     
    Market appreciation   3.3       1.3       153.8 %
    Ending assets under management $ 35.1     $ 31.2       12.5 %
     

    NM = Not Meaningful

    Exhibit 6

    Silvercrest Asset Management Group Inc.
    Discretionary Assets Under Management
    (Unaudited and in billions)
     
    Discretionary Assets Under Management:
     
      Three Months Ended
    September 30,
        % Change from
    September 30,
     
      2024     2023     2023  
    Beginning assets under management $ 21.6     $ 21.5       0.5 %
                     
    Gross client inflows   0.8       0.4       100.0 %
    Gross client outflows   (1.1 )     (0.6 )     83.3 %
    Net client flows   (0.3 )     (0.2 )     50.0 %
                     
    Market appreciation/(depreciation)   1.3       (0.8 )     -262.5 %
    Ending assets under management $ 22.6     $ 20.5       10.2 %
     
      Nine Months Ended
    September 30,
        % Change from
    September 30,
     
      2024     2023     2023  
    Beginning assets under management $ 21.9     $ 20.9       4.8 %
                     
    Gross client inflows   2.1       2.3       -8.7 %
    Gross client outflows   (3.7 )     (3.0 )     23.3 %
    Net client flows   (1.6 )     (0.7 )     128.6 %
                     
    Market appreciation   2.3       0.3     NM  
    Ending assets under management $ 22.6     $ 20.5       10.2 %
     

    NM = Not Meaningful

    Exhibit 7

    Silvercrest Asset Management Group Inc.
    Non-Discretionary Assets Under Management
    (Unaudited and in billions)
     
    Non-Discretionary Assets Under Management:
     
      Three Months Ended
    September 30,
        % Change from
    September 30,
     
      2024     2023     2023  
    Beginning assets under management $ 11.8     $ 10.4       13.5 %
                     
    Gross client inflows   0.3       0.2       50.0 %
    Gross client outflows   (0.2 )     (0.2 )     0.0 %
    Net client flows   0.1       —        
                     
    Market appreciation   0.6       0.3       100.0 %
    Ending assets under management $ 12.5     $ 10.7       16.8 %
                           
      Nine Months Ended
    September 30,
        % Change from
    September 30,
     
      2024     2023     2023  
    Beginning assets under management $ 11.4     $ 8.0       42.5 %
                     
    Gross client inflows   0.8       2.2       -63.6 %
    Gross client outflows   (0.7 )     (0.5 )     40.0 %
    Net client flows   0.1       1.7       -94.1 %
                     
    Market appreciation   1.0       1.0       0.0 %
    Ending assets under management $ 12.5     $ 10.7       16.8 %
                           

    Exhibit 8

    Silvercrest Asset Management Group Inc.
    Assets Under Management
    (Unaudited and in billions)
     
      Three Months Ended
    September 30,
     
      2024     2023  
    Total AUM as of June 30, $ 33.430     $ 31.924  
    Discretionary AUM:          
    Total Discretionary AUM as of June 30, $ 21.646     $ 21.500  
    New client accounts/assets (1)   0.076       0.054  
    Closed accounts (2)   (0.042 )     (0.015 )
    Net cash inflow/(outflow) (3)   (0.308 )     (0.286 )
    Non-discretionary to Discretionary AUM (4)   (0.004 )     0.008  
    Market (depreciation)/appreciation   1.271       (0.799 )
    Change to Discretionary AUM   0.993       (1.038 )
    Total Discretionary AUM at September 30,   22.639       20.462  
    Change to Non-Discretionary AUM (5)   0.665       0.301  
    Total AUM as of September 30, $ 35.088     $ 31.187  
                   
      Nine Months Ended
    September 30,
     
      2024     2023  
    Total AUM as of January 1, $ 33.281     $ 28.905  
    Discretionary AUM:          
    Total Discretionary AUM as of January 1, $ 21.885     $ 20.851  
    New client accounts/assets (1)   0.179       0.151  
    Closed accounts (2)   (0.516 )     (0.100 )
    Net cash inflow/(outflow) (3)   (1.256 )     (0.793 )
    Non-discretionary to Discretionary AUM (4)   (0.006 )     (0.030 )
    Market appreciation   2.353       0.383  
    Change to Discretionary AUM   0.754       (0.389 )
    Total Discretionary AUM at September 30,   22.639       20.462  
    Change to Non-Discretionary AUM (5)   1.053       2.671  
    Total AUM as of September 30, $ 35.088     $ 31.187  
                   
    (1) Represents new account flows from both new and existing client relationships.
    (2) Represents closed accounts of existing client relationships and those that terminated.
    (3) Represents periodic cash flows related to existing accounts.
    (4) Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM.
    (5) Represents the net change to Non-Discretionary AUM.

    Exhibit 9

    Silvercrest Asset Management Group Inc.
    Equity Investment Strategy Composite Performance 1, 2
    As of September 30, 2024
    (Unaudited)
     
    PROPRIETARY EQUITY PERFORMANCE 1, 2 ANNUALIZED PERFORMANCE
      INCEPTION   1-YEAR   3-YEAR   5-YEAR   7-YEAR   INCEPTION
    Large Cap Value Composite 4/1/02   31.1   9.6   12.5   12.0   9.9
    Russell 1000 Value Index     27.8   9.0   10.7   9.5   8.1
                           
    Small Cap Value Composite 4/1/02   26.7   7.3   10.6   7.8   10.5
    Russell 2000 Value Index     25.9   3.8   9.3   6.6   8.0
                           
    Smid Cap Value Composite 10/1/05   27.9   5.1   9.1   7.5   9.6
    Russell 2500 Value Index     26.6   6.1   10.0   7.8   7.9
                           
    Multi Cap Value Composite 7/1/02   27.6   5.7   10.2   9.2   9.7
    Russell 3000 Value Index     27.6   8.7   10.6   9.3   8.6
                           
    Equity Income Composite 12/1/03   24.8   7.4   8.5   8.8   11.0
    Russell 3000 Value Index     27.6   8.7   10.6   9.3   8.7
                           
    Focused Value Composite 9/1/04   23.6   1.9   6.4   6.1   9.4
    Russell 3000 Value Index     27.6   8.7   10.6   9.3   8.5
                           
    Small Cap Opportunity Composite 7/1/04   25.9   4.7   12.0   10.8   11.1
    Russell 2000 Index     26.8   1.8   9.4   7.4   8.2
                           
    Small Cap Growth Composite 7/1/04   18.9   -5.2   12.0   10.9   10.4
    Russell 2000 Growth Index     27.7   -0.4   8.8   7.6   8.5
                           
    Smid Cap Growth Composite 1/1/06   24.3   -5.8   13.0   12.9   10.7
    Russell 2500 Growth Index     25.2   -0.7   9.7   9.4   9.5
                           
    1 Returns are based upon a time weighted rate of return of various fully discretionary equity portfolios with similar investment objectives, strategies and policies and other relevant criteria managed by Silvercrest Asset Management Group LLC (“SAMG LLC”), a subsidiary of Silvercrest. Performance results are gross of fees and net of commission charges. An investor’s actual return will be reduced by the advisory fees and any other expenses it may incur in the management of the investment advisory account. SAMG LLC’s standard advisory fees are described in Part 2 of its Form ADV. Actual fees and expenses will vary depending on a variety of factors, including the size of a particular account. Returns greater than one year are shown as annualized compounded returns and include gains and accrued income and reinvestment of distributions. Past performance is no guarantee of future results. This piece contains no recommendations to buy or sell securities or a solicitation of an offer to buy or sell securities or investment services or adopt any investment position. This piece is not intended to constitute investment advice and is based upon conditions in place during the period noted. Market and economic views are subject to change without notice and may be untimely when presented here. Readers are advised not to infer or assume that any securities, sectors or markets described were or will be profitable. SAMG LLC is an independent investment advisory and financial services firm created to meet the investment and administrative needs of individuals with substantial assets and select institutional investors. SAMG LLC claims compliance with the Global Investment Performance Standards (GIPS®).
       
    2 The market indices used to compare to the performance of Silvercrest’s strategies are as follows:
       
      The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 largest companies in the Russell 3000. The Russell 1000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
       
      The Russell 2000 Index is a capitalization-weighted, unmanaged index that measures the 2000 smallest companies in the Russell 3000. The Russell 2000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
       
      The Russell 2500 Index is a capitalization-weighted, unmanaged index that measures the 2500 smallest companies in the Russell 3000. The Russell 2500 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
       
      The Russell 3000 Value Index is a capitalization-weighted, unmanaged index that measures those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth.

    The MIL Network –

    January 25, 2025
  • MIL-OSI: Asure Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports Third Quarter Revenues of $29.3 Million

    Recurring Revenues Grew 20% Versus Prior Year Third Quarter

    AUSTIN, Texas, Oct. 31, 2024 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the third quarter ended September 30, 2024.

    Third Quarter 2024 Financial Highlights

    • Revenue of $29.3 million, nearly unchanged versus the same period of the prior year
    • Revenue (excluding ERTC revenue) of $29.2 million, up 20% from $24.4 million versus the same period of the prior year
    • Recurring revenue of $28.6 million, up 20% year over year. Recurring revenue was 98% of total revenue versus 81% the same period of the prior year
    • Net loss of $3.9 million versus a net loss of $2.2 million during the same period of the prior year 
    • EBITDA(1) of $2.2  million versus $3.0 million during the same period of the prior year  
    • Adjusted EBITDA(1) of $5.4 million versus $6.2 million during the same period of the prior year 
    • Gross profit of $19.7 million versus $21.3 million during the same period of the prior year  
    • Non-GAAP gross profit(1) of $21.4 million (Non-GAAP gross margin(1) of 73%) versus $22.4 million (and 76% during the same period of the  prior year) 

    Nine Months 2024 Financial Highlights

    • Revenue of $89.0 million down 4% versus the first nine months of prior year
    • Revenue (excluding ERTC revenue) of $87.4 million up 15% from $75.7 million in the first nine months of prior year
    • Recurring revenue (excluding ERTC revenue) of $86.0 million up 16% from $74.4 million in the first nine months of prior year
    • Net loss of $8.6 million versus a net loss of $5.6 million the first nine months of prior year
    • EBITDA(1) of $8.0 million versus $13.2 million the first nine months of prior year
    • Adjusted EBITDA(1) of $16.3 million versus $20.5 million the first nine months of prior year
    • Gross profit of $61.2 million versus $67.7 million during the first nine months of the prior year  
    • Non-GAAP gross profit(1) of $65.6 million (Non-GAAP gross margin(1) of 74%) versus $71.5 million (and 77% during the first nine months of the prior year) 

    _______________
    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 4 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Recent Business Highlights

    • Payroll Tax Management Expansion: Asure’s Payroll Tax Management product gained significant momentum, going live with additional Workday and SAP clients during the third quarter. Key sales wins include one of America’s largest grocery chains and a nationally known HCM system integrator who assists large enterprises with Workday, SAP, and Oracle HCM implementations. These enterprise bookings have grown our backlog and still represent additional product and professional services opportunities.
    • HCM Architectural Milestone: Employee self-service capabilities have been decoupled from disparate payroll platforms and modularized as a single API-based service. This enhancement improves scalability and stability of the end-to-end HCM suite and further consolidates our technical footprint to a more flexible service-oriented architecture.
    • Entering Beta of New AI Agent: More than a chatbot, this new Generative-AI Agent handles inquiries related to payroll and payroll taxes takes secure action on behalf of the user. Through dynamic, interactive sessions, the AI Agent will answer questions and take actions on HR requests including time off requests, demographic changes, or changes to W-4 allowances.
    • Leadership Recognition: Asure Chairman and CEO, Pat Goepel, was named Austin Business Journal’s Best CEO of a Public Company for 2024, recognizing his leadership and commitment to Asure’s growth and success.
    • New financial services product to launch November 2024: Asure is introducing AsurePay™, an innovative financial solution offering working Americans a comprehensive online banking alternative. AsurePay™ combines features such as debit card access, fee-free ATM withdrawals, and paycheck advances through a unique interest-bearing banking solution, designed to improve employee engagement, while also improving overall employer efficiency. This solution is easily accessible through an intuitive mobile app.

    Management Commentary

    Asure Chairman and CEO, Pat Goepel, stated, “Our third quarter performance reflects strong, continued growth, with recurring revenue up 20% year-over-year. We’ve made great strides in transitioning to a more valuable revenue model, with 98% of our revenues now recurring, compared to 81% in the same quarter last year. Additionally, new bookings were up 141% year-over-year. Our backlog has grown significantly — over 35% from Q2 2024 and over 250% from Q3 2023. While large enterprise tax product deals have contributed to our success, their pace of implementation can vary. That said, we remain confident in our ability to maintain this positive trajectory.”

    Goepel continued, “We’re seeing strong demand for our Payroll Tax Management product, we’re introducing new solutions, upgrading our technology, and making strategic acquisitions. Earlier in the year, we faced the challenge of replacing ERTC revenue, but those headwinds have now dissipated as we close out 2024 and this change in the composition of our revenues offers us strong momentum going into 2025. We are optimistic about the opportunities ahead for both the remainder of this year and into next year.”

    Fourth Quarter 2024 and Full Year 2025 Revenue Guidance Ranges

    The Company is providing the following guidance for the fourth quarter 2024 based on the Company’s year-to-date results and recent business trends. Management is initiating full year 2025 guidance to a range of $134M-$138M which does not include revenue from potential future acquisitions.

    Guidance for 2024

    Guidance Range   Q4-2024   FY-2024  
    Revenue $ 30M – 32M $ 119M -121M  
    Adjusted EBITDA(1) $ 6M -7M   18% -19%  
               

    Guidance for 2025 

    Guidance Range   FY-2025  
    Revenue $ 134M – 138M  
    Adjusted EBITDA(1)   23% – 24%  
           

    Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way that management does.

    Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

    Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

    Management’s projections are based on management’s current beliefs and assumptions about the Company’s business, and the industry and markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2024 and 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 6 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.

    Conference Call Details

    Asure management will host a conference call on Thursday, October 31, 2024, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

    About Asure Software, Inc.

    Asure Software (Nasdaq: ASUR) is a leading provider of Human Capital Management (“HCM”) software solutions. We help small and mid-sized companies grow by assisting them in building better teams with skills to stay compliant with ever-changing federal, state, and local tax jurisdictions and labor laws, and better allocate cash so they can spend their financial capital on growing their business rather than back-office overhead expenses. Asure’s Human Capital Management suite, named AsureHCM®, includes cloud-based Payroll, Tax Services, and Time & Attendance software and Asure Marketplace™ as well as human resources (“HR”) services ranging from HR projects to completely outsourcing payroll and HR staff. We also offer these products and services through our network of reseller partners. Visit us at asuresoftware.com.

    Non-GAAP and Adjusted Financial Measures

    This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

    Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

    Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

    Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

    Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

    EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

    Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

    Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than motivating or rewarding operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

    Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

    Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

    Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

    Income Taxes. The Company excludes income taxes, both at the federal and state levels.

    One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

    Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

    Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

    Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

    Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

    Use of Forward-Looking Statements

    This press release contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements we make regarding our operating performance, future results of operations and financial position, revenue growth, earnings or other projections. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

    The risks and uncertainties referred to above include—but are not limited to—the expiration of major revenue streams such as Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims; risks associated with breaches of the Company’s security measures; risks associated with the Company’s rate of growth and anticipated revenue run rate, including impact of the current economic environment; the Company’s ability to convert deferred revenue and unbilled deferred revenue into revenue and cash flow, and ability to maintain continued growth of deferred revenue and unbilled deferred revenue; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; the Company’s ability to continue to release, gain customer acceptance of and provide support for new and improved versions of the Company’s services; successful customer deployment and utilization of the Company’s existing and future services; interruptions to supply chains and extended shut down of businesses; issues in the use of artificial intelligence in our HCM products and services; political unrest, including the current conflict between Russia and Ukraine and the ongoing conflict involving Israel in the Middle East; reductions in employment and an increase in business failures, specifically among our clients; possible fluctuations in the Company’s financial and operating results; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; technological developments; the nature of the Company’s business model; interest rates; competition; various financial aspects of the Company’s subscription model; impairment of intangible assets; interruptions or delays in the Company’s services or the Company’s Web hosting; access to additional capital; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; volatility and weakness in bank and capital markets; factors affecting the Company’s deferred tax assets and ability to value and utilize them; volatility and low trading volume of our common stock; collection of receivables; and general developments in the economy, financial markets, credit markets and the impact of current and future accounting pronouncements and other financial reporting standards. Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2024, and its quarterly reports on Form 10-Q filed with the SEC on August 1, 2024, and October 31, 2024.

    The forward-looking statements, including the financial guidance 2024 and 2025 outlooks, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based.

    © 2024 Asure Software, Inc. All rights reserved.

    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
    (Unaudited)
     
      September 30, 2024   December 31, 2023
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 11,248     $ 30,317  
    Accounts receivable, net of allowance for credit losses of $6,150 and $4,787 at September 30, 2024 and December 31, 2023, respectively   17,233       14,202  
    Inventory   233       155  
    Prepaid expenses and other current assets   4,586       3,471  
    Total current assets before funds held for clients   33,300       48,145  
    Funds held for clients   193,589       219,075  
    Total current assets   226,889       267,220  
    Property and equipment, net   18,490       14,517  
    Goodwill   94,724       86,011  
    Intangible assets, net   73,429       62,082  
    Operating lease assets, net   4,401       4,991  
    Other assets, net   10,176       9,047  
    Total assets $ 428,109     $ 443,868  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Current portion of notes payable $ —     $ 27  
    Accounts payable   1,317       2,570  
    Accrued compensation and benefits   4,277       6,519  
    Operating lease liabilities, current   1,600       1,490  
    Other accrued liabilities   8,287       3,862  
    Deferred revenue   3,029       6,853  
    Total current liabilities before client fund obligations   18,510       21,321  
    Client fund obligations   193,951       220,019  
    Total current liabilities   212,461       241,340  
    Long-term liabilities:      
    Deferred revenue   2,276       16  
    Deferred tax liability   2,116       1,728  
    Notes payable, net of current portion   7,506       4,282  
    Operating lease liabilities, noncurrent   3,832       4,638  
    Other liabilities   765       209  
    Total long-term liabilities   16,495       10,873  
    Total liabilities   228,956       252,213  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding   —       —  
    Common stock, $0.01 par value; 44,000 shares authorized; 26,540 and 25,382 shares issued, 26,540 and 24,998 shares outstanding at September 30, 2024 and December 31, 2023, respectively   265       254  
    Treasury stock at cost, zero(1) and 384 shares at September 30, 2024 and December 31, 2023, respectively   —       (5,017 )
    Additional paid-in capital   502,920       487,973  
    Accumulated deficit   (304,022 )     (290,440 )
    Accumulated other comprehensive loss   (10 )     (1,115 )
    Total stockholders’ equity   199,153       191,655  
    Total liabilities and stockholders’ equity $ 428,109     $ 443,868  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Condensed Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
        2024       2023       2024       2023  
                   
    Revenue:              
    Recurring $ 28,626     $ 23,833     $ 85,950     $ 74,749  
    Professional services, hardware and other   678       5,501       3,050       18,069  
    Total revenue   29,304       29,334       89,000       92,818  
    Cost of sales   9,600       8,054       27,821       25,120  
    Gross profit   19,704       21,280       61,179       67,698  
    Operating expenses:              
    Sales and marketing   6,680       6,597       21,371       22,312  
    General and administrative   10,378       9,294       30,559       29,586  
    Research and development   1,973       1,803       5,704       5,107  
    Amortization of intangible assets   4,295       3,333       11,790       9,929  
    Total operating expenses   23,326       21,027       69,424       66,934  
    (Loss) income from operations   (3,622 )     253       (8,245 )     764  
    Interest income   165       437       762       1,015  
    Interest expense   (274 )     (1,219 )     (662 )     (5,336 )
    Loss on extinguishment of debt   —       (1,517 )     —       (1,517 )
    Other (expense) income, net   —       (283 )     10       (291 )
    Loss from operations before income taxes   (3,731 )     (2,329 )     (8,135 )     (5,365 )
    Income tax expense (benefit)   170       (123 )     434       267  
    Net loss   (3,901 )     (2,206 )     (8,569 )     (5,632 )
    Other comprehensive loss:              
    Unrealized income (loss) on marketable securities   1,340       (201 )     1,105       (213 )
    Comprehensive loss $ (2,561 )   $ (2,407 )   $ (7,464 )   $ (5,845 )
                   
    Basic and diluted loss per share              
    Basic $ (0.15 )   $ (0.10 )   $ (0.33 )   $ (0.27 )
    Diluted $ (0.15 )   $ (0.10 )   $ (0.33 )   $ (0.27 )
                   
    Weighted average basic and diluted shares              
    Basic   26,429       22,591       25,870       21,204  
    Diluted   26,429       22,591       25,870       21,204  
                                   
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
    (Unaudited)
     
      Nine Months Ended September 30,
        2024       2023  
           
    Cash flows from operating activities:      
    Net loss $ (8,569 )   $ (5,632 )
    Adjustments to reconcile loss to net cash (used) in provided by operations:      
    Depreciation and amortization   16,200       14,243  
    Amortization of operating lease assets   1,025       1,129  
    Amortization of debt financing costs and discount   531       548  
    Non-cash interest expense   —       1,471  
    Net accretion of discounts on available-for-sale securities   (273 )     (63 )
    Provision for expected losses   111       2,004  
    Provision for deferred income taxes   388       111  
    Loss on extinguishment of debt   —       1,208  
    Net realized gains on sales of available-for-sale securities   (1,929 )     (1,645 )
    Share-based compensation   4,981       4,170  
    Loss on disposals of long-term assets   —       132  
    Change in fair value of contingent purchase consideration   —       175  
    Changes in operating assets and liabilities:      
    Accounts receivable   (3,142 )     (5,014 )
    Inventory   (78 )     159  
    Prepaid expenses and other assets   (1,656 )     4,031  
    Operating lease right-of-use assets   —       473  
    Accounts payable   (1,253 )     (498 )
    Accrued expenses and other long-term obligations   (1,052 )     918  
    Operating lease liabilities   (1,139 )     (895 )
    Deferred revenue   (4,539 )     (5,190 )
    Net cash (used) in provided by operating activities   (394 )     11,835  
    Cash flows from investing activities:      
    Acquisition of intangible asset   (12,397 )     (697 )
    Purchases of property and equipment   (546 )     (1,365 )
    Software capitalization costs   (7,677 )     (5,029 )
    Purchases of available-for-sale securities   (10,914 )     (21,513 )
    Proceeds from sales and maturities of available-for-sale securities   13,325       10,428  
    Net cash used in investing activities   (18,209 )     (18,176 )
    Cash flows from financing activities:      
    Payments of notes payable   (420 )     (35,627 )
    Debt extinguishment costs   —       (468 )
    Payments made on amounts due for the acquisition of intangible assets   (658 )     —  
    Net proceeds from issuance of common stock   902       45,986  
    Capital raise fees   (47 )     (258 )
    Net change in client fund obligations   (26,068 )     (31,033 )
    Net cash used in financing activities   (26,291 )     (21,400 )
    Net decrease in cash and cash equivalents   (44,894 )     (27,741 )
    Cash and cash equivalents, beginning of period   177,622       164,042  
    Cash and cash equivalents, end of period $ 132,728     $ 136,301  
                   
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
    (Unaudited)
     
      Nine Months Ended September 30,
        2024       2023  
           
    Reconciliation of cash and cash equivalents to the Condensed Consolidated Balance Sheets
    Cash and cash equivalents $ 11,248     $ 32,787  
    Cash and cash equivalents included in funds held for clients   121,480       103,514  
    Total cash and cash equivalents $ 132,728     $ 136,301  
           
    Supplemental information:      
    Cash paid for interest $ —     $ 3,140  
    Cash paid for income taxes $ 15     $ 532  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 6,918     $ 332  
    Notes payable issued for acquisitions $ 3,138     $ —  
    Shares issued for acquisitions $ 9,125     $ 2,543  
                   
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
     
    (in thousands) Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Q4-22
    Revenue(1) $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064   $ 29,292  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018   $ 24,400   $ 21,139  
    Gross Margin   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %   73.8 %   72.2 %
                     
    Share-based Compensation   44     43     40     32     28     46     31     34  
    Depreciation   1,232     1,145     1,110     921     984     1,309     1,009     871  
    Amortization – intangibles   50     50     50     50     50     50     268     298  
    One-time expenses                
    Settlements, penalties & interest   2     3     —     (6 )   8     —     4     3  
    Acquisition and transaction costs   367     264     39     —     —     —     —     —  
    Non-GAAP Gross Profit $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423   $ 25,712   $ 22,345  
    Non-GAAP Gross Margin   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %   77.8 %   76.3 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515   $ 7,200   $ 6,022  
                     
    Share-based Compensation   269     237     243     180     210     149     124     93  
    Depreciation   1     —     1     1     —     —     —     —  
    One-time expenses                
    Settlements, penalties & interest   (5 )   5     18     6     30     4     11     —  
    Acquisition and transaction costs   68     37     11     —     —     —     —     —  
    Other non-recurring expenses   —     —     —     —     —     180     —     —  
    Non-GAAP Sales and Marketing Expense $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182   $ 7,065   $ 5,929  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336   $ 9,956   $ 9,720  
                     
    Share-based Compensation   1,187     1,122     1,535     980     936     1,298     1,142     641  
    Depreciation   264     256     251     225     200     234     210     168  
    One-time expenses                
    Settlements, penalties & interest   377     304     98     284     101     432     102     34  
    Acquisition and transaction costs   371     245     57     51     —     —     —     —  
    Other non-recurring expenses   253     —     86     53     —     453     —     —  
    Non-GAAP General and Administrative Expense $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919   $ 8,502   $ 8,877  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325   $ 1,979   $ 1,627  
                     
    Share-based Compensation   90     86     85     69     76     89     40     70  
    One-time expenses                
    Settlements, penalties & interest   —     27     31     —     —     —     —     25  
    Acquisition and transaction costs   195     369     147     —     —     —     —     —  
    Non-GAAP Research and Development Expense $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236   $ 1,939   $ 1,532  
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
    (unaudited)
     
    (in thousands) Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Q4-22
    Revenue(1) $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064   $ 29,292  
                     
    GAAP Net (Loss) Income to Adjusted EBITDA
    GAAP Net (Loss) Income $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 ) $ 339   $ (1,056 )
                     
    Interest expense, net   109     (53 )   (156 )   (24 )   782     1,593     1,944     1,429  
    Income taxes   170     231     33     (158 )   (123 )   627     (237 )   (94 )
    Depreciation   1,497     1,402     1,361     1,148     1,185     1,542     1,219     1,039  
    Amortization – intangibles   4,345     4,096     3,499     3,743     3,384     3,343     3,570     3,648  
    EBITDA $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340   $ 6,835   $ 4,966  
    EBITDA Margin   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %   20.7 %   17.0 %
                     
    Share-based Compensation   1,591     1,488     1,902     1,260     1,251     1,582     1,337     838  
    One Time Expenses                
    Settlements, penalties & interest   375     339     147     283     140     436     117     62  
    Acquisition and transaction costs   1,001     914     254     51     —     —     —     —  
    Other non-recurring expenses   253     —     86     53     —     633     —     —  
    Other (expense) income, net   —     —     (10 )   1     1,800     93     (83 )   139  
    Adjusted EBITDA $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084   $ 8,206   $ 6,005  
    Adjusted EBITDA Margin   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %   24.8 %   20.5 %
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    Investor Relations Contact
    Patrick McKillop
    Vice President, Investor Relations
    617-335-5058
    patrick.mckillop@asuresoftware.com

    The MIL Network –

    January 25, 2025
  • MIL-OSI: Inuvo to Host Third Quarter 2024 Financial Results Conference Call on Friday, November 8th at 8:30 A.M. EST

    Source: GlobeNewswire (MIL-OSI)

    LITTLE ROCK, Ark., Oct. 31, 2024 (GLOBE NEWSWIRE) — Inuvo, Inc. (NYSE American: INUV), provider of the first generative artificial intelligence (AI) advertiser solution made specifically for brands and agencies, will host a conference call on Friday, November 8, 2024, at 8:30 AM Eastern Standard Time to discuss its financial results and provide a business update for the for the third quarter ended September 30, 2024.

    Conference Call Details: 
    Date: Friday, November 8, 2024
    Time: 8:30 a.m. Eastern Standard Time 
    Toll-free Dial-in Number: 1-800-717-1738
    International Dial-in Number: 1- 646-307-1865
    Conference ID: 1131160
    Webcast Link: HERE

    A telephone replay will be available through Friday, November 22, 2024. To access the replay, please dial 1- 844-512-2921 (domestic) or 1- 412-317-6671 (international). At the system prompt, please enter the code 1131160 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

    About Inuvo

    Inuvo®, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. To learn more, visit www.inuvo.com.

    Safe Harbor / Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Inuvo’s quarter-end financial close process and preparation of financial statements for the quarter that are subject to risks and uncertainties that could cause results to be materially different than expectations. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Inuvo, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed on February 29, 2024, and our other filings with the SEC. Additionally, forward looking statements are subject to certain risks, trends, and uncertainties including the continued impact of Covid-19 on Inuvo’s business and operations. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. The information which appears on our websites and our social media platforms is not part of this press release.

    Inuvo Company Contact:
    Wally Ruiz
    Chief Financial Officer
    Tel (501) 205-8397
    wallace.ruiz@inuvo.com

    Investor Relations :
    David Waldman / Natalya Rudman
    Crescendo Communications, LLC
    Tel: (212) 671-1020
    inuv@crescendo-ir.com   

    The MIL Network –

    January 25, 2025
  • MIL-OSI: SuRo Capital Corp. to Report Third Quarter 2024 Financial Results on Thursday, November 7, 2024

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) — SuRo Capital Corp. (“SuRo Capital”) (Nasdaq: SSSS) today announced that it will report its financial results for the quarter ended September 30, 2024 after the close of the U.S. market on Thursday, November 7, 2024.

    Management will hold a conference call and webcast for investors at 2:00 p.m. PT (5:00 p.m. ET). The conference call access number for U.S. participants is 866-580-3963, and the conference call access number for participants outside the U.S. is +1 786-697-3501. The conference ID number for both access numbers is 9289675. Additionally, interested parties can listen to a live webcast of the call from the “Investor Relations” section of SuRo Capital’s website at www.surocap.com. An archived replay of the webcast will also be available for 12 months following the live presentation.

    A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on November 14, 2024 by dialing 866-583-1035 (U.S.) or +44 (0) 20 3451 9993 (International) and using conference ID number 9289675.

    About SuRo Capital Corp.

    SuRo Capital Corp. (Nasdaq: SSSS) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. The fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. SuRo Capital is headquartered in New York, NY and has offices in San Francisco, CA. Connect with the company on X, LinkedIn, and at www.surocap.com.

    Contact

    SuRo Capital Corp.
    (212) 931-6331
    IR@surocap.com

    The MIL Network –

    January 25, 2025
  • MIL-OSI: Fidus Investment Corporation Announces Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Board of Directors Declared Total Dividends of $0.61 per Share for Fourth Quarter 2024

    Base Dividend of $0.43 and Supplemental Dividend of $0.18 Per Share

    EVANSTON, Ill., Oct. 31, 2024 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the third quarter ended September 30, 2024.

    Third Quarter 2024 Financial Highlights

    • Total investment income of $38.4 million
    • Net investment income of $21.4 million, or $0.64 per share
    • Adjusted net investment income of $20.4 million, or $0.61 per share(1)
    • Invested $65.9 million in debt and equity securities, including three new portfolio companies
    • Received proceeds from repayments and realizations of $50.8 million
    • Paid total dividends of $0.57 per share: regular quarterly dividend of $0.43 and a supplemental dividend of $0.14 per share on September 26, 2024
    • Net asset value (“NAV”) of $658.8 million, or $19.42 per share, as of September 30, 2024
    • Estimated spillover income (or taxable income in excess of distributions) as of September 30, 2024 of $43.1 million, or $1.27 per share

    Management Commentary

    “For the third quarter, our debt investments generated a 8.4% increase in interest income year-over-year. We continued to carefully grow total assets under management while maintaining a healthy portfolio structured to deliver recurring income and the potential for enhanced returns from the monetization of equity investments. We expect investment activity to remain at reasonable levels for the rest of the year, providing us opportunities to advance our long-term goals of generating attractive risk-adjusted returns for our shareholders, preserving capital and growing NAV over time,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation.    

    (1)    Supplemental information regarding adjusted net investment income:

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure.  This measure is provided in addition to, but not as a substitute for, net investment income.  Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses.  The management agreement with our investment adviser provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses.  In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate.  As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.

    Third Quarter 2024 Financial Results

    The following table provides a summary of our operating results for the three months ended September 30, 2024, as compared to the same period in 2023 (dollars in thousands, except per share data):

                             
        Three Months Ended September 30,              
        2024     2023     $ Change     % Change  
    Interest income   $ 31,857     $ 28,313     $ 3,544       12.5 %
    Payment-in-kind interest income     1,851       2,789       (938 )     (33.6 %)
    Dividend income     1,384       262       1,122       428.2 %
    Fee income     2,693       2,255       438       19.4 %
    Interest on idle funds     597       566       31       5.5 %
    Total investment income   $ 38,382     $ 34,185     $ 4,197       12.3 %
                             
    Net investment income   $ 21,411     $ 16,660     $ 4,751       28.5 %
    Net investment income per share   $ 0.64     $ 0.63     $ 0.01       1.6 %
                             
    Adjusted net investment income (1)   $ 20,424     $ 18,188     $ 2,236       12.3 %
    Adjusted net investment income per share (1)   $ 0.61     $ 0.68     $ (0.07 )     (10.3 %)
                             
    Net increase  (decrease) in net assets resulting from operations   $ 16,477     $ 24,299     $ (7,822 )     (32.2 %)
    Net increase (decrease) in net assets resulting from operations per share   $ 0.49     $ 0.91     $ (0.42 )     (46.2 %)

    The $4.2 million increase in total investment income for the three months ended September 30, 2024, as compared to the same period in 2023, was primarily attributable to (i) a $2.6 million increase in total interest income (which includes payment-in-kind interest income) resulting from an increase in average debt investment balances outstanding, partially offset by a decrease in weighted average yield on debt investment balances outstanding, (ii) a $1.1 million increase in dividend income due to an increase in distributions received from equity investments and (iii) a $0.4 million increase in fee income resulting from an increase in amendment fees.

    For the three months ended September 30, 2024, total expenses, including the base management fee waiver and income tax provision, were $17.0 million, a decrease of $0.5 million, or (3.2%) from the $17.5 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended September 30, 2023. The decrease was primarily attributable to (i) a $2.5 million decrease in capital gains incentive fee accrued, partially offset by (ii) a $0.7 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $0.6 million increase in the income incentive fee, and (iv) a $0.6 million increase in income tax provision (benefit).

    Net investment income increased by $4.7 million, or 28.5%, to $21.4 million during the three months ended September 30, 2024 as compared to the same period in 2023, as a result of the $4.2 million increase in total investment income and the $0.5 million decrease in total expenses, including base management fee waiver and income tax provision. Adjusted net investment income,(1) which excludes the capital gains incentive fee accrual, was $0.61 per share compared to $0.68 per share in the prior year.

    For the three months ended September 30, 2024, the total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, was $(0.4) million, as compared to total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, of $9.7 million for the same period in 2023.

    Portfolio and Investment Activities

    As of September 30, 2024, the fair value of our investment portfolio totaled $1,090.7 million and consisted of 85 active portfolio companies and five portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 101.5% of the related cost basis as of September 30, 2024. As of September 30, 2024, the debt investments of 49 portfolio companies bore interest at a variable rate, which represented $702.0 million, or 73.2%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of September 30, 2024, our average active portfolio company investment at amortized cost was $12.6 million, which excludes investments in five portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 13.8% as of September 30, 2024. The weighted average yield was computed using the effective interest rates for debt investments at cost as of September 30, 2024, including the accretion of original issue discounts and loan origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing.

    Third quarter 2024 investment activity included the following new portfolio company investment:

    • Jumo Health, Inc., a developer of creative, patient-centric educational solutions that improve health literacy to accelerate clinical trial enrollment and increase participant retention. Fidus invested $6.0 million in first lien debt and $0.8 million in preferred equity.
    • Thrust Flight LLC, a provider of professional flight training services. Fidus invested $9.8 million in first lien debt, $1.1 million in common equity and made additional commitments up to $2.6 million in first lien debt.
    • InductiveHealth Informatics, LLC, a leading provider of disease and syndromic surveillance solutions for health agencies. Fidus invested $20.0 million in first lien debt and $0.4 million in preferred equity.

    Liquidity and Capital Resources

    As of September 30, 2024, we had $54.4 million in cash and cash equivalents and $100.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). For the three months ended September 30, 2024, we received net proceeds of $14.1 million from the equity at-the-market program (the “ATM Program”). As of September 30, 2024, we had SBA debentures outstanding of $175.0 million, $125.0 million outstanding of our 4.75% notes due January 2026 (the “January 2026 Notes”) and $125.0 million outstanding of our 3.50% notes due November 2026 (the “November 2026 Notes” and collectively with the January 2026 Notes the “Notes”). As of September 30, 2024, the weighted average interest rate on total debt outstanding was 4.6%.

    Fourth Quarter 2024 Dividends Totaling $0.61 Per Share Declared

    On October 28, 2024, our board of directors declared a base dividend of $0.43 per share and a supplemental dividend of $0.18 per share for the fourth quarter. The dividends will be payable on December 27, 2024, to stockholders of record as of December 17, 2024.

    When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under GAAP due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2024 taxable income, as well as the tax attributes for 2024 dividends, will be made after the close of the 2024 tax year.  The final tax attributes for 2024 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

    Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

    Subsequent Events

    On October 1, 2024, we invested $6.3 million in first lien debt and common equity in Estex Manufacturing Company, LLC, a branded manufacturer of sewn products used in the utility, airline / aerospace, sports, and military end markets.

    On October 11, 2024, we exited our debt investment in US Fertility Enterprises, LLC. We received payment in full of $15.2 million on our subordinated debt, which included a prepayment fee.

    On October 24, 2024, we exited our debt investment in Sonicwall US Holdings, Inc. We received payment of $3.3 million on our second lien debt, resulting in a realized loss of $0.1 million.

    On October 25, 2024, we invested $14.8 million in first lien debt and common equity in Axis Medical Technologies LLC (dba Movemedical), a leading provider of last-mile supply chain software solutions to medical device OEMs.

    Third Quarter 2024 Financial Results Conference Call

    Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, November 1, 2024. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.

    A live webcast of the conference call will be available at http://investor.fdus.com/news-events/events-presentations.  Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.

    ABOUT FIDUS INVESTMENT CORPORATION

    Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

    Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and was licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC).

    FORWARD-LOOKING STATEMENTS

    This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain, including, but not limited to, statements about the future performance and financial condition of the Company, the prospects of our existing and prospective portfolio companies, the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives, and the timing, form and amount of any distributions or supplemental dividends in the future. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, such as changes in the financial and lending markets, the impact of the general economy (including an economic downturn or recession), and the impact of interest rate volatility; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors related to changes in the markets in which the Company invests, changes in the financial, capital, and lending markets, and other factors described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.

        FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Assets and Liabilities
    (in thousands, except shares and per share data)
        
     
        September 30,     December 31,  
        2024     2023  
    ASSETS                
    Investments, at fair value:                
       Control investments (cost: $6,832 and $6,832, respectively)   $   —     $   —  
       Affiliate investments (cost: $48,019 and $46,485, respectively)       85,827         83,876  
       Non-control/non-affiliate investments (cost: $1,019,953 and $883,312, respectively)       1,004,848         874,030  
    Total investments, at fair value (cost: $1,074,804 and $936,629, respectively)       1,090,675         957,906  
    Cash and cash equivalents       54,443         119,131  
    Interest receivable       14,317         11,965  
    Prepaid expenses and other assets       1,618         1,896  
    Total assets   $   1,161,053     $   1,090,898  
    LIABILITIES                
    SBA debentures, net of deferred financing costs   $   170,472      $   204,472  
    Notes, net of deferred financing costs       248,081         247,243  
    Borrowings under Credit Facility, net of deferred financing costs       38,853         (1,082 )
    Secured borrowings       14,025         15,880  
    Accrued interest and fees payable       3,544         5,924  
    Base management fee payable, net of base management fee waiver – due to affiliate       4,784         4,151  
    Income incentive fee payable – due to affiliate       5,059         4,570  
    Capital gains incentive fee payable – due to affiliate       14,914         17,509  
    Administration fee payable and other, net – due to affiliate       619         789  
    Taxes payable       751         1,227  
    Accounts payable and other liabilities       1,190         741  
    Total liabilities   $   502,292      $   501,424  
    Commitments and contingencies                
    NET ASSETS                
    Common stock, $0.001 par value (100,000,000 shares authorized, 33,914,652 and 30,438,979 shares                
    issued and outstanding at September 30, 2024 and December 31, 2023, respectively)   $   34      $   31  
    Additional paid-in capital       572,159         504,298  
    Total distributable earnings       86,568         85,145  
    Total net assets       658,761         589,474  
    Total liabilities and net assets   $   1,161,053      $   1,090,898  
    Net asset value per common share   $   19.42      $   19.37  
    FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Operations (unaudited)
    (in thousands, except shares and per share data)


     
        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    Investment Income:                        
    Interest income                        
    Control investments   $ —     $ —     $ —     $ —  
    Affiliate investments     870       1,011       2,603       3,168  
    Non-control/non-affiliate investments     30,987       27,302       88,899       77,268  
    Total interest income     31,857       28,313       91,502       80,436  
    Payment-in-kind interest income                        
    Control investments     —       —       —       —  
    Affiliate investments     —       —       —       —  
    Non-control/non-affiliate investments     1,851       2,789       5,745       4,661  
    Total payment-in-kind interest income     1,851       2,789       5,745       4,661  
    Dividend income                        
    Control investments     —       —       —       —  
    Affiliate investments     1,328       (1 )     1,830       519  
    Non-control/non-affiliate investments     56       263       308       431  
    Total dividend income     1,384       262       2,138       950  
    Fee income                        
    Control investments     —       —       —       —  
    Affiliate investments     5       5       15       60  
    Non-control/non-affiliate investments     2,688       2,250       6,559       5,868  
    Total fee income     2,693       2,255       6,574       5,928  
    Interest on idle funds     597       566       2,738       1,824  
    Total investment income     38,382       34,185       108,697       93,799  
    Expenses:                        
    Interest and financing expenses     6,026       5,985       18,100       16,761  
    Base management fee     4,848       4,161       13,986       12,066  
    Incentive fee – income     5,059       4,478       14,072       11,959  
    Incentive fee (reversal) – capital gains     (987 )     1,528       942       507  
    Administrative service expenses     688       581       1,894       1,672  
    Professional fees     567       587       2,469       2,044  
    Other general and administrative expenses     266       269       764       773  
    Total expenses before base management fee waiver     16,467       17,589       52,227       45,782  
    Base management fee waiver     (64 )     (72 )     (200 )     (216 )
    Total expenses, net of base management fee waiver     16,403       17,517       52,027       45,566  
    Net investment income before income taxes     21,979       16,668       56,670       48,233  
    Income tax provision (benefit)     568       8       682       66  
    Net investment income     21,411       16,660       55,988       48,167  
    Net realized and unrealized gains (losses) on investments:                        
    Net realized gains (losses):                        
    Control investments     —       —       —       (11,458 )
    Affiliate investments     —       1       —       100  
    Non-control/non-affiliate investments     (366 )     9,749       12,161       15,625  
    Total net realized gain (loss) on investments     (366 )     9,750       12,161       4,267  
    Income tax (provision) benefit from realized gains on investments     —       (31 )     (1,523 )     (1,569 )
    Net change in unrealized appreciation (depreciation):                        
    Control investments     —       —       —       11,083  
    Affiliate investments     2,075       (4,507 )     417       (9,109 )
    Non-control/non-affiliate investments     (6,643 )     2,450       (5,823 )     (2,113 )
    Total net change in unrealized appreciation (depreciation) on investments     (4,568 )     (2,057 )     (5,406 )     (139 )
    Net gain (loss) on investments     (4,934 )     7,662       5,232       2,559  
    Realized losses on extinguishment of debt     —       (23 )     (521 )     (23 )
    Net increase (decrease) in net assets resulting from operations   $ 16,477     $ 24,299     $ 60,699     $ 50,703  
    Per common share data:                        
    Net investment income per share-basic and diluted   $ 0.64     $ 0.63     $ 1.74     $ 1.89  
    Net increase in net assets resulting from operations per share — basic and diluted   $ 0.49     $ 0.91     $ 1.89     $ 1.99  
    Dividends declared per share   $ 0.57     $ 0.72     $ 1.81     $ 2.08  
    Weighted average number of shares outstanding — basic and diluted     33,380,480       26,618,973       32,138,865       25,490,379  

    Schedule 1

    Supplemental Information Regarding Adjusted Net Investment Income

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure.  This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses.  The management agreement with our investment advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years.  In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate.  As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three and nine months ended September 30, 2024 and 2023.

              ($ in thousands)     ($ in thousands)  
              Three Months Ended     Nine Months Ended  
              September 30,     September 30,  
              (unaudited)     (unaudited)  
              2024     2023     2024     2023  
    Net investment income         $ 21,411     $ 16,660     $ 55,988     $ 48,167  
    Capital gains incentive fee expense (reversal)           (987 )     1,528       942       507  
    Adjusted net investment income (1)         $ 20,424     $ 18,188     $ 56,930     $ 48,674  
              (Per share)     (Per share)  
              Three Months Ended     Nine Months Ended  
              September 30,     September 30,  
              (unaudited)     (unaudited)  
              2024     2023     2024     2023  
    Net investment income         $ 0.64     $ 0.63     $ 1.74     $ 1.89  
    Capital gains incentive fee expense (reversal)           (0.03 )     0.05       0.03       0.02  
    Adjusted net investment income (1)         $ 0.61     $ 0.68     $ 1.77     $ 1.91  
    (1 ) Adjusted net investment income per share amounts are calculated as adjusted net investment income dividend by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.
    Company Contact: Investor Relations Contact:
    Shelby E. Sherard Jody Burfening
    Chief Financial Officer LHA
    (847) 859-3940 (212) 838-3777
    ssherard@fidusinv.com jburfening@lhai.com

    The MIL Network –

    January 25, 2025
  • MIL-OSI: Bimini Capital Management Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    VERO BEACH, Fla., Oct. 31, 2024 (GLOBE NEWSWIRE) — Bimini Capital Management, Inc. (OTCQB: BMNM), (“Bimini Capital,” “Bimini,” or the “Company”), today announced results of operations for the three-month period ended September 30, 2024.

    Third Quarter 2024 Highlights

    • Net income of $0.3 million, or $0.03 per common share
    • Book value per share of $0.83
    • Company to discuss results on Friday, November 1, 2024, at 10:00 AM ET

    Management Commentary

    Commenting on the third quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, “The long-awaited impacts of tight monetary policy orchestrated by the Federal Reserve appear to have finally had the desired impacts on inflation and the imbalances in the labor market. Inflation is closing in on the Fed’s 2% target and hiring and wage growth are slowing while the unemployment rate has steadily risen. In contrast, growth in the economy and consumer spending have remained robust throughout. In late September the Fed reduced the overnight funding rate by 50 basis points, and the market anticipated it was the first of many such cuts.  Unfortunately, the non-farm payroll report for September 2024, released in early October, as well as the latest readings on inflation and consumer spending, imply the economy may not be weakening so much after-all. If this proves to be the case the magnitude and urgency of additional rate cuts by the Fed may differ with those market expectations mentioned above.

    “Orchid Island Capital reported net income for the third quarter 2024 of $17.3 million and its shareholders equity increased from $555.9 million to $656.0 million. As a result, Bimini’s advisory service revenues of approximately $3.3 million represented a 4% increase over the second quarter. The growth in Orchid’s capital base during the third quarter would translate into higher quarterly revenues – all else equal – for a full quarter. As mentioned above, if the Fed’s easing cycle proves to be brief and the economy remains resilient, capital raising opportunities for Orchid may not materialize in the near term.

    “The investment portfolio generated net interest income of $0.3 million inclusive of dividends on our shares of Orchid Island. Mark to market gains and losses on our MBS portfolio, hedge positions and shares of Orchid netted to income of $0.4 million. The Company – inclusive of both the advisory services segment and the investment portfolio segment, recorded net income before taxes for the quarter of $0.8 million versus a net loss before taxes of $0.2 million for the second quarter of 2024.”

    Details of Third Quarter 2024 Results of Operations

    The Company reported net income of $0.3 million for the three-month period ended September 30, 2024. Advisory service revenue for the quarter was $3.3 million. We recorded interest and dividend income of $1.7 million and interest expense on repurchase agreements of $1.4 million and on long-term debt of $0.6 million. We recorded an unrealized $0.1 million mark to market loss on our shares of Orchid common stock, net unrealized gains of $2.5 million on our MBS portfolio and net losses of $2.0 million on our derivative holdings. The results for the quarter also included operating expenses of $2.6 million and an income tax provision of $0.5 million.

    Management of Orchid Island Capital, Inc.

    Orchid is managed and advised by Bimini. As Manager, Bimini is responsible for administering Orchid’s business activities and day-to-day operations. Pursuant to the terms of the management agreement, Bimini Advisors provides Orchid with its management team, including its officers, along with appropriate support personnel. Bimini also maintains a common stock investment in Orchid which is accounted for under the fair value option, with changes in fair value recorded in the statement of operations for the current period. For the three months ended September 30, 2024, Bimini’s statement of operations included a fair value adjustment of $(0.1) million and dividends of $0.2 million from its investment in Orchid’s common stock. Also, during the three months ended September 30, 2024, Bimini recorded $3.3 million in advisory services revenue for managing Orchid’s portfolio consisting of $2.4 million of management fees, $0.6 million in overhead reimbursement and $0.2 million in repurchase, clearing and administrative fees.

    Book Value Per Share

    The Company’s Book Value Per Share on September 30, 2024 was $0.83. The Company computes Book Value Per Share by dividing total stockholders’ equity by the total number of shares outstanding of the Company’s Class A Common Stock. At September 30, 2024, the Company’s stockholders’ equity was $8.3 million, with 10,005,457 Class A Common shares outstanding.

    Capital Allocation and Return on Invested Capital

    The Company allocates capital between two MBS sub-portfolios, the pass-through MBS portfolio (“PT MBS”) and the structured MBS portfolio, consisting of interest only (“IO”) and inverse interest-only (“IIO”) securities. The table below details the changes to the respective sub-portfolios during the quarter.

       
    Portfolio Activity for the Quarter
                Structured Security Portfolio        
                    Inverse                
        Pass   Interest   Interest                
        Through   Only   Only                
        Portfolio   Securities   Securities   Sub-total   Total
    Market Value – June 30, 2024   $ 83,960,741     $ 2,450,477     $ 3,501     $ 2,453,978     $ 86,414,719  
    Securities purchased     31,715,015       –       –       –       31,715,015  
    Return of investment     n/a       (84,011 )     (162 )     (84,173 )     (84,173 )
    Pay-downs     (2,097,231 )     n/a       n/a       n/a       (2,097,231 )
    Discount accreted due to pay-downs     16,953       n/a       n/a       n/a       16,953  
    Mark to market gains     2,453,793       4,468       5,106       9,574       2,463,367  
    Market Value – September 30, 2024   $ 116,049,271     $ 2,370,934     $ 8,445     $ 2,379,379     $ 118,428,650  
                                             

    The tables below present the allocation of capital between the respective portfolios at September 30, 2024 and June 30, 2024, and the return on invested capital for each sub-portfolio for the three-month period ended September 30, 2024. Capital allocation is defined as the sum of the market value of securities held, less associated repurchase agreement borrowings, plus cash and cash equivalents and restricted cash associated with repurchase agreements. Capital allocated to non-portfolio assets is not included in the calculation.

       
    Capital Allocation
                Structured Security Portfolio        
                    Inverse                
        Pass   Interest   Interest                
        Through   Only   Only                
        Portfolio   Securities   Securities   Sub-total   Total
    September 30, 2024                                        
    Market value   $ 116,049,271     $ 2,370,934     $ 8,445     $ 2,379,379     $ 118,428,650  
    Cash equivalents and restricted cash     5,706,502       –       –       –       5,706,502  
    Repurchase agreement obligations     (113,022,999 )     –       –       –       (113,022,999 )
    Total(1)   $ 8,732,774     $ 2,370,934     $ 8,445     $ 2,379,379     $ 11,112,153  
    % of Total     78.6 %     21.3 %     0.1 %     21.4 %     100.0 %
    June 30, 2024                                        
    Market value   $ 83,960,741     $ 2,450,477     $ 3,501     $ 2,453,978     $ 86,414,719  
    Cash equivalents and restricted cash     6,223,538       –       –       –       6,223,538  
    Repurchase agreement obligations     (82,875,999 )     –       –       –       (82,875,999 )
    Total(1)   $ 7,308,280     $ 2,450,477     $ 3,501     $ 2,453,978     $ 9,762,258  
    % of Total     74.9 %     25.1 %     0.0 %     25.1 %     100.0 %
                                             

    The returns on invested capital in the PT MBS and structured MBS portfolios were approximately 7.5% and 2.1%, respectively, for the three months ended September 30, 2024. The combined portfolio generated a return on invested capital of approximately 6.2%.

       
    Returns for the Quarter Ended September 30, 2024
                Structured Security Portfolio        
                    Inverse                
        Pass   Interest   Interest                
        Through   Only   Only                
        Portfolio   Securities   Securities   Sub-total   Total
    Interest income (expense) (net of repo cost)   $ 71,254     $ 40,897     $ (15 )   $ 40,882     $ 112,136  
    Realized and unrealized gains     2,470,746       4,468       5,106       9,574       2,480,320  
    Hedge losses     (1,991,315 )     n/a       n/a       n/a       (1,991,315 )
    Total Return   $ 550,685     $ 45,365     $ 5,091     $ 50,456     $ 601,141  
    Beginning capital allocation   $ 7,308,280     $ 2,450,477     $ 3,501     $ 2,453,978     $ 9,762,258  
    Return on invested capital for the quarter(1)     7.5 %     1.9 %     145.4 %     2.1 %     6.2 %
    (1)   Calculated by dividing the Total Return by the Beginning Capital Allocation, expressed as a percentage.
         

    Prepayments

    For the third quarter of 2024, the Company received approximately $2.2 million in scheduled and unscheduled principal repayments and prepayments, which equated to a 3-month constant prepayment rate (“CPR”) of approximately 6.3% for the third quarter of 2024. Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

                 
        PT   Structured    
        MBS Sub-   MBS Sub-   Total
    Three Months Ended   Portfolio   Portfolio   Portfolio
    September 30, 2024   6.3   6.7   6.3
    June 30, 2024   10.9   5.5   10.0
    March 31, 2024   18.0   9.2   16.5
    December 31, 2023   8.9   4.6   8.0
    September 30, 2023   4.3   6.6   4.8
    June 30, 2023   8.0   13.0   9.6
    March 31, 2023   2.4   10.3   5.0
                 

    Portfolio

    The following tables summarize the MBS portfolio as of September 30, 2024 and December 31, 2023:

    ($ in thousands)                                    
                                Weighted    
                Percentage           Average    
                of   Weighted   Maturity    
        Fair   Entire   Average   in   Longest
    Asset Category   Value   Portfolio   Coupon   Months   Maturity
    September 30, 2024                                    
    Fixed Rate MBS   $ 116,050       98.0 %     5.61 %     342     1-Apr-54
    Structured MBS     2,379       2.0 %     2.85 %     283     15-May-51
    Total MBS Portfolio   $ 118,429       100.0 %     5.24 %     341     1-Apr-54
    December 31, 2023                                    
    Fixed Rate MBS   $ 90,181       97.3 %     6.00 %     343     1-Nov-53
    Structured MBS     2,550       2.7 %     2.84 %     290     15-May-51
    Total MBS Portfolio   $ 92,731       100.0 %     5.44 %     341     1-Nov-53
    ($ in thousands)                                
        September 30, 2024   December 31, 2023
                Percentage of           Percentage of
    Agency   Fair Value   Entire Portfolio   Fair Value   Entire Portfolio
    Fannie Mae   $ 35,338       29.8 %   $ 38,204       41.2 %
    Freddie Mac     83,091       70.2 %     54,527       58.8 %
    Total Portfolio   $ 118,429       100.0 %   $ 92,731       100.0 %
        September 30, 2024   December 31, 2023
    Weighted Average Pass Through Purchase Price   $ 102.99     $ 104.43  
    Weighted Average Structured Purchase Price   $ 4.48     $ 4.48  
    Weighted Average Pass Through Current Price   $ 102.06     $ 101.55  
    Weighted Average Structured Current Price   $ 13.68     $ 13.46  
    Effective Duration(1)     2.627       2.508  
    (1)   Effective duration is the approximate percentage change in price for a 100 basis point change in rates. An effective duration of 2.627 indicates that an interest rate increase of 1.0% would be expected to cause a 2.627% decrease in the value of the MBS in the Company’s investment portfolio at September 30, 2024. An effective duration of 2.508 indicates that an interest rate increase of 1.0% would be expected to cause a 2.508% decrease in the value of the MBS in the Company’s investment portfolio at December 31, 2023. These figures include the structured securities in the portfolio but not the effect of the Company’s hedges. Effective duration quotes for individual investments are obtained from The Yield Book, Inc.
         

    Financing and Liquidity

    As of September 30, 2024, the Company had outstanding repurchase obligations of approximately $113.0 million with a net weighted average borrowing rate of 5.20%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $118.8 million. At September 30, 2024, the Company’s liquidity was approximately $4.7 million, consisting of unpledged MBS and cash and cash equivalents.

    We may pledge more of our structured MBS as part of a repurchase agreement funding but retain cash in lieu of acquiring additional assets. In this way, we can, at a modest cost, retain higher levels of cash on hand and decrease the likelihood we will have to sell assets in a distressed market in order to raise cash. Below is a list of outstanding borrowings under repurchase obligations at September 30, 2024.

    ($ in thousands)                                
    Repurchase Agreement Obligations
                        Weighted   Weighted
        Total           Average   Average
        Outstanding   % of   Borrowing   Maturity
    Counterparty   Balances   Total   Rate   (in Days)
    Marex Capital Markets Inc.   $ 26,185       23.2 %     5.21 %     17  
    Mirae Asset Securities (USA) Inc.     20,016       17.7 %     5.25 %     18  
    DV Securities, LLC Repo     19,930       17.6 %     5.06 %     28  
    Clear Street LLC     17,894       15.8 %     5.31 %     33  
    South Street Securities, LLC     17,126       15.2 %     5.03 %     24  
    Mitsubishi UFJ Securities, Inc.     11,872       10.5 %     5.37 %     25  
        $ 113,023       100.0 %     5.20 %     24  
    (1)   Equal to the fair value of securities sold (including accrued interest receivable) and cash posted as collateral, if any, minus the sum of repurchase agreement liabilities, accrued interest payable and securities posted by the counterparty (if any).
         

    Summarized Consolidated Financial Statements

    The following is a summarized presentation of the unaudited consolidated balance sheets as of September 30, 2024, and December 31, 2023, and the unaudited consolidated statements of operations for the nine and three months ended September 30, 2024 and 2023. Amounts presented are subject to change.

     
    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED BALANCE SHEETS
    (Unaudited – Amounts Subject to Change)
                 
        September 30, 2024   December 31, 2023
    ASSETS                
    Mortgage-backed securities   $ 118,428,650     $ 92,730,852  
    Cash equivalents and restricted cash     5,706,502       4,470,286  
    Orchid Island Capital, Inc. common stock, at fair value     4,677,763       4,797,269  
    Accrued interest receivable     572,506       488,660  
    Deferred tax assets, net     17,995,449       19,047,680  
    Other assets     4,251,713       4,063,267  
    Total Assets   $ 151,632,583     $ 125,598,014  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    Repurchase agreements   $ 113,022,999     $ 86,906,999  
    Long-term debt     27,373,739       27,394,417  
    Other liabilities     2,912,616       3,168,857  
    Total Liabilities     143,309,354       117,470,273  
    Stockholders’ equity     8,323,229       8,127,741  
    Total Liabilities and Stockholders’ Equity   $ 151,632,583     $ 125,598,014  
    Class A Common Shares outstanding     10,005,457       10,005,457  
    Book value per share   $ 0.83     $ 0.81  
                     
     
    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited – Amounts Subject to Change)
                 
        Nine Months Ended September 30,   Three Months Ended September 30,
        2024   2023   2024   2023
    Advisory services   $ 9,396,828     $ 10,518,862     $ 3,300,512     $ 3,620,002  
    Interest and dividend income     4,781,408       2,781,763       1,690,252       1,111,659  
    Interest expense     (5,558,657 )     (3,624,861 )     (1,980,863 )     (1,441,371 )
    Net revenues     8,619,579       9,675,764       3,009,901       3,290,290  
    Other income (expense)     1,067,454       (2,466,795 )     420,726       (2,360,590 )
    Expenses     8,439,314       6,657,293       2,627,343       2,105,424  
    Net income (loss) before income tax provision (benefit)     1,247,719       551,676       803,284       (1,175,724 )
    Income tax provision (benefit)     1,052,231       (320,596 )     547,059       (757,016 )
    Net income (loss)   $ 195,488     $ 872,272     $ 256,225     $ (418,708 )
                                     
    Basic and Diluted Net (Loss) Income Per Share of:                                
    CLASS A COMMON STOCK   $ 0.02     $ 0.09     $ 0.03     $ (0.04 )
    CLASS B COMMON STOCK   $ 0.02     $ 0.09     $ 0.03     $ (0.04 )
        Three Months Ended September 30,
    Key Balance Sheet Metrics   2024   2023
    Average MBS(1)   $ 102,421,681     $ 74,315,815  
    Average repurchase agreements(1)     97,949,499       71,055,794  
    Average stockholders’ equity(1)     8,195,116       13,199,138  
                     
    Key Performance Metrics                
    Average yield on MBS(2)     5.80 %     4.51 %
    Average cost of funds(2)     5.61 %     4.68 %
    Average economic cost of funds(3)     5.75 %     4.74 %
    Average interest rate spread(4)     0.19 %     (0.17 )%
    Average economic interest rate spread(5)     0.05 %     (0.23 )%
    (1)   Average MBS, repurchase agreements and stockholders’ equity balances are calculated using two data points, the beginning and ending balances.
    (2)   Portfolio yields and costs of funds are calculated based on the average balances of the underlying investment portfolio/repurchase agreement balances and are annualized for the quarterly periods presented.
    (3)   Represents interest cost of our borrowings and the effect of derivative agreements attributed to the period related to hedging activities, divided by average repurchase agreements.
    (4)   Average interest rate spread is calculated by subtracting average cost of funds from average yield on MBS.
    (5)   Average economic interest rate spread is calculated by subtracting average economic cost of funds from average yield on MBS.
         

    About Bimini Capital Management, Inc.

    Bimini Capital Management, Inc. invests primarily in, but is not limited to investing in, residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Its objective is to earn returns on the spread between the yield on its assets and its costs, including the interest expense on the funds it borrows. In addition, Bimini generates a significant portion of its revenue serving as the manager of the MBS portfolio of, and providing certain repurchase agreement trading, clearing and administrative services to, Orchid Island Capital, Inc.

    Forward Looking Statements

    Statements herein relating to matters that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Bimini Capital Management, Inc.’s filings with the Securities and Exchange Commission, including Bimini Capital Management, Inc.’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Bimini Capital Management, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements.

    Earnings Conference Call Details

    An earnings conference call and live audio webcast will be hosted Friday, November 1, 2024, at 10:00 AM ET. Participants can register and receive dial-in information at https://register.vevent.com/register/BI909b06944b334b3e8e769108f5807eab. A live audio webcast of the conference call can be accessed at https://edge.media-server.com/mmc/p/qzvibaf6 or via the investor relations section of the Company’s website at https://ir.biminicapital.com. An audio archive of the webcast will be available for 30 days after the call.

    The MIL Network –

    January 25, 2025
  • MIL-OSI: Enstar Completes Loss Portfolio Transfer With QBE

    Source: GlobeNewswire (MIL-OSI)

    HAMILTON, Bermuda, Oct. 31, 2024 (GLOBE NEWSWIRE) — Enstar Group Limited (NASDAQ: ESGR) announced today that one of its wholly-owned subsidiaries has closed a previously announced ground-up loss portfolio transfer transaction with subsidiaries of QBE Insurance Group Limited (“QBE”) to reinsure a portfolio of US commercial liability and workers’ compensation business, largely underwritten on recently discontinued programs.

    Under the reinsurance agreement, QBE ceded net reserves of approximately $376 million, and Enstar’s subsidiary provided approximately $175 million of cover in excess of the ceded reserves.

    Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.

    About Enstar

    Enstar is a NASDAQ-listed leading global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. A market leader in completing legacy acquisitions, Enstar has acquired 120 companies and portfolios since its formation in 2001. For further information about Enstar, see www.enstargroup.com.

    Contact:

    For Enstar:

    For Investors: Matthew Kirk (investor.relations@enstargroup.com)

    For Media: Jenna Kerr (communications@enstargroup.com)

    Contact: Enstar Communications
    Telephone: +1 (441) 292-3645

    The MIL Network –

    January 25, 2025
  • MIL-OSI: Progress Completes Acquisition of ShareFile

    Source: GlobeNewswire (MIL-OSI)

    ShareFile’s AI-powered, document-centric collaboration platform expands Progress’ industry-leading product portfolio and marks a major milestone in the company’s Total Growth Strategy

    BURLINGTON, Mass., Oct. 31, 2024 (GLOBE NEWSWIRE) — Progress (Nasdaq: PRGS), the trusted provider of AI-powered infrastructure software, today announced the completion of the acquisition of ShareFile, a business unit of Cloud Software Group, Inc., providing a SaaS-native, AI-powered, document-centric collaboration platform, focusing on industry segments including business and professional services, financial services, industrial and healthcare.

    “This acquisition marks the latest major milestone in Progress’ Total Growth Strategy, which is built on three pillars: Invest and Innovate, Acquire and Integrate and Drive Customer Success. The addition of ShareFile significantly enhances our product capabilities, benefiting our customers and meaningfully expanding the customer base we serve,” said Yogesh Gupta, CEO of Progress. “We are thrilled to welcome ShareFile customers and employees to the Progress community and look forward to a bright future with ShareFile now part of Progress.”

    Progress products help organizations to develop, deploy and manage responsible AI-powered applications and experiences. ShareFile fits strategically with Progress’ Digital Experience portfolio to enable customers to deliver more efficient and effective client and team collaboration, while simplifying the sharing of documents and prioritizing security.

    As previously announced, Progress acquired ShareFile for a purchase price of $875 million, funded with a combination of cash and Progress’ existing revolving credit facility. ShareFile is expected to add more than $240M in annual revenue and more than 86,000 customers to Progress.

    About Progress 
    Progress (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and experiences with agility and ease. Customers get a trusted provider in Progress, with the products, expertise and vision they need to succeed. Over 4 million developers and technologists at hundreds of thousands of enterprises depend on Progress. Learn more at www.progress.com. 
      
    Note Regarding Forward-Looking Statements
    This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements with words like “believe,” “may,” “could,” “would,” “might,” “should,” “expect,” “intend,” “plan,” “target,” “anticipate” and “continue,” the negative of these words, other terms of similar meaning or the use of future dates. Risks, uncertainties and other important factors that could cause actual results to differ from those expressed or implied in the forward-looking statements include: uncertainties as to the effects of disruption from the acquisition of ShareFile (i.e., making it more difficult to maintain relationships with employees, licensees, other business partners or governmental entities); other business effects, including the effects of industry, economic or political conditions outside of Progress’ or ShareFile’s control; transaction costs; actual or contingent liabilities; uncertainties as to whether anticipated synergies will be realized; and uncertainties as to whether ShareFile’s business will be successfully integrated with Progress’ business. For further information regarding risks and uncertainties associated with Progress’ business, please refer to Progress’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended November 30, 2023. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

    The MIL Network –

    January 25, 2025
  • MIL-OSI Security: Two sent to prison for roles in cartel-linked human smuggling scheme

    Source: Office of United States Attorneys

    LAREDO, Texas – Two individuals have been sentenced to prison for their roles in an extensive human smuggling conspiracy involving Cartel del Noreste (CDN), announced U.S. Attorney Alamdar S. Hamdani. 

    Laredo resident Francisco Suarez, 20, and Luis Daniel Segura Guzman, 26, a Mexican citizen residing in Laredo. Suarez pleaded guilty Dec. 20, 2023, and Jan. 18, respectively.    

    U.S. District Judge Diana Saldaña has now imposed a 33-month term of imprisonment for Suarez, while Segura received 30 months. Both must serve three years of supervised release following their sentences. Not a U.S. citizen, Guzman is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that Suarez and Segura were a part of Los Fantasmas, a gang and alien smuggling organization who works hand-in-hand with Mexican cartels. Judge Saldaña imposed sentencing enhancements that held each responsible for smuggling at least 100 aliens or more. The court commented that both were “committed to this lifestyle” and noted the importance of imposing a sentence that would deter them from becoming involved in this conduct in the future.  

    Another co-conspirator Bernardo Aniceto Garza, 27, Laredo, also pleaded guilty and is set for sentencing Nov. 4.  

    “Cartel del Noreste, a Mexican cartel, is known for engaging in ruthless acts of violence and extortion to support its drug trafficking operations, and in recent years it has added human smuggling to its list of illicit money-making operations, with Facebook and social media becoming invaluable tools to facilitate its new venture,” said Hamdani. “CDN uses these platforms to recruit, coordinate and expand its criminal operations, reaching broader audiences, while putting countless lives at risk. For years, Suarez and Guzman used Facebook to exploit and profit from vulnerable individuals while also evading detection, but thanks to the efforts of my office, those days are now over.”

    On Aug. 23, 2023, authorities discovered a Facebook post that appeared to be advertising transportation services for undocumented aliens via sleeper cabs of tractor trailers. The investigation revealed Segura coordinated the transportation of three undocumented aliens for approximately $8,000 and arranged for a Garza to make the pickup in Laredo that afternoon.

    Authorities were able to apprehend Garza and found two women and a 15-year-old minor inside a parked tractor. All were citizens of Mexico and El Salvador and illegally present in the United States. Law enforcement also discovered a firearm inside the vehicle Garza was driving.   

    On Sept. 16, 2023, authorities encountered Segura in Laredo. He admitted the CDN had recruited him in Mexico to smuggle aliens and that he worked with Suarez to do so. Law enforcement located a cell phone in Segura’s possession that was still logged into the Facebook account used to advertise and coordinate the August smuggling event.  

    Suarez was acting as a scout in a separate smuggling attempt Sept. 19, 2023, when law enforcement arrested him. He admitted he worked for Garza and had provided him with the three migrants authorities caught Garza transporting. The investigation also identified Suarez as a stash house operator responsible for harboring undocumented individuals. 

    An analysis of Segura’s phone revealed his involvement in the smuggling of at least 133 undocumented individuals. Historical data and messages traced Segura’s smuggling activities back to May 2020. The phone also contained detailed information, including photographs and identifying information of suspected migrants, screenshots of smuggling routes and deposit receipts for payments tied to smuggling services. 

    Authorities found similar information on Suarez’s cell phone which included photos of approximately 300 unique individuals illegally smuggled across the border, including children, dating back to September 2022. 

    The men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. 

    Homeland Security Investigations, Laredo Police Department and Border Patrol conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation with the assistance of Customs and Border Protection Air and Marine Operations and the Texas Department of Public Safety. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. 

    This sentencing is also the result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. attorneys’ offices along the southwest border including the Southern District of California, districts of Arizona and New Mexico and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, and supported by the Office of Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, Drug Enforcement Adminstration and other partners. To date, JTFA’s work has resulted in over 325 domestic and international arrests of leaders, organizers and significant facilitators of human smuggling, more than 270 U.S. convictions, more than 210 significant jail sentences imposed and forfeitures of substantial assets.

    Assistant U.S. Attorney and JTFA detailee Jennifer Day prosecuted this case.

    MIL Security OSI –

    January 25, 2025
  • MIL-OSI Security: Broken Bow Resident Sentenced To Four Years For Child Abuse

    Source: Office of United States Attorneys

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kaira Leigh Wilson, age 35, of Broken Bow, Oklahoma, was sentenced to 48 months in prison for one count of Child Abuse in Indian Country.

    The charges arose from an investigation by the Federal Bureau of Investigation and the Idabel Police Department.

    On January 11, 2024, Wilson, was found guilty by a federal jury at trial of the charge.  According to investigators, on March 12, 2020, law enforcement responding to a 911 call at an Idabel residence discovered an unresponsive 6-month-old infant.  EMS responders began life-saving measures and rushed the infant to the hospital for acute respiratory failure.  Medical professionals successfully resuscitated and stabilized the infant.  Medical scans revealed fresh injuries consistent with non-accidental trauma, including a subdural hematoma and extensive retinal hemorrhages.  The infant also sustained vision loss in one eye.  A subsequent investigation revealed that prior to the 911 call, a witness in the residence observed Wilson throw the infant against a wall.

    The crime occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.

    “I commend the work of the first responders and medical staff in diagnosing and treating the defenseless victim and want to thank the investigators for tirelessly working to determine how the injuries were inflicted,” said United States Attorney Christopher J. Wilson.  “I also applaud the Assistant United States Attorneys who effectively presented the case at trial and compassionately advocated for the victim and the victim’s family at the sentencing hearing.  We recognize the discretion of the Court in sentencing and respect the decision.”

    The Honorable John C. Coughenour, Senior U.S. District Judge in the United States District Court for the Western District of Washington, sitting by assignment, presided over the hearing in Muskogee.  Wilson will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

    Assistant U.S. Attorneys Morgan Muzljakovich and Sarah McAmis represented the United States.

    MIL Security OSI –

    January 25, 2025
  • MIL-OSI Security: Rapid City Man Arraigned on Federal Charges Following Arrest for Large Scale Distribution and Possession of Child Pornography

    Source: Office of United States Attorneys

    RAPID CITY – United States Attorney Alison J. Ramsdell announced that the United States has brought federal charges against a Rapid City, South Dakota, man for Distribution of Child Pornography and Possession of Child Pornography.

    Lewis Patterson III, age 39, was arraigned before U.S. Magistrate Judge Daneta Wollmann on October 30, 2024. Patterson pleaded not guilty to the Criminal Complaint.

    If convicted of distributing child pornography, Patterson faces a mandatory minimum of five years up to 20 years in prison, and a fine of up $250,000. He faces a mandatory minimum of five years up to life of supervised release. Restitution is mandatory. Patterson also faces up to 10 years in prison if convicted of possessing child pornography.

    The charges are merely accusations and Patterson is presumed innocent until and unless proven guilty.

    Law enforcement’s initial investigation has established that since at least March of 2024, Patterson personally distributed hundreds of thousands of images and videos of children being sexually abused across multiple internet-based applications, platforms, and encrypted messaging services. Patterson also utilized artificial intelligence and cryptocurrency to profit from his child pornography distribution scheme.  

    “The frequency with which criminals target and sexually exploit children is terrifying,” said U.S. Attorney Alison J. Ramsdell. “We are fortunate to have federal, state, and local law enforcement agencies that regularly collaborate through the Internet Crimes Against Children Taskforce to expose this nefarious activity. The U.S. Attorney’s Office will continue to prioritize the federal prosecution of anyone looking to use the Internet to exploit children.”

    In response to the arrest, South Dakota Attorney General Marty Jackley stated, “Cooperation by law enforcement resulted in this successful investigation. As Attorney General, I will continue to use every tool available to protect children and hold accountable those harming children.”

    The investigation is being led by the South Dakota Internet Crimes Against Children Task Force, consisting of members of the South Dakota Division of Criminal Investigation, Rapid City Police Department, and the Pennington County Sheriff’s office, partnered with Homeland Security Investigations. Assistant U.S. Attorney Heather Knox is prosecuting the case. 

    Patterson was detained following his arraignment and is in the custody of the U.S. Marshals Service. A detention hearing is scheduled for November 1, 2024, at 10:00 a.m.

     

    MIL Security OSI –

    January 25, 2025
  • MIL-OSI Russia: IMF Releases the 2024 Financial Access Survey Results

    Source: IMF – News in Russian

    October 30, 2024

    Washington, DC: The International Monetary Fund (IMF) released the results of the 2024 Financial Access Survey (FAS), marking the 15th anniversary of the FAS. The report “FAS: 2024 Highlights,” published along with the data release, summarizes the key trends on access to and usage of financial services over the past few years. Established in 2009, the FAS has played a crucial role in providing essential data to develop and evaluate financial inclusion policies, a topic of key relevance for the IMF, as it fosters broader economic participation, reduces inequalities, promotes inclusive growth, and aids in achieving the Sustainable Development Goals (SDGs). The FAS stands as the most comprehensive annual supply-side database on financial inclusion, boasting nearly complete global coverage. It covers 192 economies, featuring 121 series and 70 normalized indicators for global comparison. The FAS dataset spans from 2004 to 2023, and it continues to evolve in line with financial innovations such as the provision of digital financial services and the increasing demand for gender-disaggregated data.

    Digital Financial Services Continue to Make Gains

    There has been a substantial increase in the usage of non-traditional financial services, including mobile and internet banking, with mobile money being particularly important in Sub-Saharan Africa. Yet, usage of traditional financial services remains essential in many economies. For example, from 2013 to 2019, deposit accounts per 100 adults increased by over 40% in emerging and developing Europe and Sub-Saharan Africa. The growth of digital financial services has also led to an increase in non-traditional access points, such as retail and mobile money agents, while traditional access methods like ATMs and bank branches have seen a decline, especially since the COVID-19 pandemic (Figure).

    Traditional and Non-traditional Access Points in Recent Years (2019 to 2023)

    (Number of Access Points Per 100,000 Adults)

     

    Source: Financial Access Survey and IMF staff calculations.

    Notes: These charts show the weighted average by region for economies whose data are available for 2019–2023. Country coverage differs across indicators depending on data availability. While three economies from Latin America and the Caribbean (El Salvador, Colombia, and Haiti) report data on number of registered mobile money agents, none provide data for all five years covered in this chart and are therefore not included.

    Microfinance Institutions Have Continued Supporting Economically Marginalized Groups

    Financing by microfinance institutions has shown resilience amid recent economic shocks. In various economies, borrowing from microfinance institutions increased, as indicated by the growth in the number of accounts and outstanding loans. While commercial banks usually provide larger loan amounts, microfinance institutions serve a broader client base, as evidenced by the larger number of loan accounts compared to those at commercial banks.

    Challenges in Narrowing Gender Gaps Remain 

    Despite the benefits of incorporating women into the financial system, substantial gender gaps in the usage of financial services persist. These gaps are particularly evident in the usage of deposit and loan accounts. Globally, women’s outstanding deposit amounts as percentage of men’s stand at 64 percent, while their outstanding loan balances account for only 46 percent of men’s. In terms of regional differences, advanced economies demonstrate a more gender-equal financial inclusion compared to emerging economies. Among the latter, emerging and developing Europe and Latin America and the Caribbean show relatively higher gender equality.

    Lending to SMEs Declined

    Data from FAS indicate a decrease in the outstanding amounts of SME loans from 2021 to 2023 in most economies that reported this information. Although several supportive policies were introduced during the COVID-19 Pandemic, subsequent developments, including tighter financial conditions and geopolitical tensions, may have contributed to the decline in SME loans.

    Additional Enhancements to the FAS are Being Tested

    To ensure the FAS data remain vital for informing financial inclusion policy, a pilot exercise is underway to assess the potential for enhancing the FAS. This includes incorporating additional gender disaggregation, information on new fintech services, and important factors such as loan pricing and risks, especially for underserved populations.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pemba Sherpa

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/30/pr-24400-imf-releases-the-2024-financial-access-survey-results

    MIL OSI

    MIL OSI Russia News –

    January 25, 2025
  • MIL-OSI: Sound Financial Bancorp, Inc. Q3 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Oct. 30, 2024 (GLOBE NEWSWIRE) — Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.2 million for the quarter ended September 30, 2024, or $0.45 diluted earnings per share, as compared to net income of $795 thousand, or $0.31 diluted earnings per share, for the quarter ended June 30, 2024, and $1.2 million, or $0.45 diluted earnings per share, for the quarter ended September 30, 2023. The Company also announced today that its Board of Directors declared a cash dividend on common stock of $0.19 per share, payable on November 26, 2024 to stockholders of record as of the close of business on November 12, 2024.

    Comments from the President and Chief Executive Officer

    “For the first time in our history, loans surpassed $900 million, and we continued to grow deposits. These production improvements came as we held operating expenses steady, demonstrating our ability to grow the Bank efficiently,” remarked Laurie Stewart, President and Chief Executive Officer. “We also completed a major upgrade to our online banking services and have received positive feedback on this from our clients,” concluded Ms. Stewart.

    “Net income increased 45% from the prior quarter primarily due to the improvement in our net interest margin, which was driven by the repricing and origination of new loans at higher market rates. At the same time, funding costs increased at a slower pace, as the majority of our deposits had already been repriced. We also made progress in transitioning time deposits to savings and money market accounts, which typically carry lower rates and provide more flexibility for future repricing,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

    Mr. Ochs continued, “As always, we remain focused on maintaining strong asset quality. Non-performing loans decreased from the prior quarter-end and we are actively utilizing available remedies to address the remaining problem loans.”

    Q3 2024 Financial Performance
    Total assets increased $26.1 million or 2.4% to $1.10 billion at September 30, 2024, from $1.07 billion at June 30, 2024, and increased $70.8 million or 6.9% from $1.03 billion at September 30, 2023.     Net interest income increased $425 thousand or 5.7% to $7.9 million for the quarter ended September 30, 2024, from $7.4 million for the quarter ended June 30, 2024, and decreased $295 thousand or 3.6% from $8.2 million for the quarter ended September 30, 2023.
       
        Net interest margin (“NIM”), annualized, was 2.98% for the quarter ended September 30, 2024, compared to 2.92% for the quarter ended June 30, 2024 and 3.38% for the quarter ended September 30, 2023.
    Loans held-for-portfolio increased $12.5 million or 1.4% to $901.7 million at September 30, 2024, compared to $889.3 million at June 30, 2024, and increased $26.3 million or 3.0% from $875.4 million at September 30, 2023.    
        An $8 thousand provision for credit losses was recorded for the quarter ended September 30, 2024, compared to a $109 thousand and a $75 thousand release of provision for credit losses for the quarters ended June 30, 2024 and September 30, 2023, respectively. At September 30, 2024, the allowance for credit losses on loans to total loans outstanding was 0.95%, compared to 0.96% at both June 30, 2024 and September 30, 2023.
    Total deposits increased $23.4 million or 2.6% to $930.2 million at September 30, 2024, from $906.8 million at June 30, 2024, and increased $69.3 million or 8.1% from $860.9 million at September 30, 2023. Noninterest-bearing deposits increased $4.8 million or 3.8% to $129.7 million at September 30, 2024 compared to $124.9 million at June 30, 2024, and decreased $24.2 million or 15.7% compared to $153.9 million at September 30, 2023.    
        Total noninterest income increased $73 thousand or 6.3% to $1.2 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and increased $154 thousand or 14.2% compared to the quarter ended September 30, 2023.
    The loans-to-deposits ratio was 97% at September 30, 2024, compared to 98% at June 30, 2024 and 102% at September 30, 2023.    
        Total noninterest expense decreased $58 thousand or 0.7% to $7.7 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and decreased $31 thousand or 0.4% from compared to the quarter ended September 30, 2023.
    Total nonperforming loans decreased $420 thousand or 4.7% to $8.5 million at September 30, 2024, from $8.9 million at June 30, 2024, and increased $6.7 million or 381.8% from $1.8 million at September 30, 2023. Nonperforming loans to total loans was 0.94% and the allowance for credit losses on loans to total nonperforming loans was 101.13% at September 30, 2024.    
        The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at September 30, 2024.
           
             

    Operating Results

    Net interest income increased $425 thousand, or 5.7%, to $7.9 million for the quarter ended September 30, 2024, compared to $7.4 million for the quarter ended June 30, 2024, and decreased $295 thousand, or 3.6%, from $8.2 million for the quarter ended September 30, 2023.The increase from the prior quarter was primarily due to a higher average yield on interest-earning assets, particularly loans receivable, and an increase in the average balances of both loans receivable and interest-earning cash. This was partially offset by a more modest rise in the cost of funds, as higher cost earnings interest-bearing deposits decreased by the end of the third quarter of 2024, limiting the growth in funding costs compared to the prior quarter. The decrease in net interest income compared to the same quarter one year ago was primarily due to higher funding costs, specifically, increased rates on and balances of money market and certificate accounts, partially offset by an increase in the average yield earned on interest-earning assets.

    Interest income increased $799 thousand, or 5.7%, to $14.8 million for the quarter ended September 30, 2024, compared to $14.0 million for the quarter ended June 30, 2024, and increased $2.2 million, or 17.0%, from $12.7 million for the quarter ended September 30, 2023. The increase from the prior quarter was primarily due to a higher average balance of loans and interest-bearing cash, along with a 14 basis point increase in the average loan yield, reflecting higher rates on newly originated loans and upward adjustments to rates on existing variable rate loans. The increase in interest income compared to the same quarter last year was due primarily to higher average balances of loans and interest-bearing cash, a 41 basis point increase in the average yield on loans, a 20 basis point increase in the average yield on interest-bearing cash, and a seven basis point increase in the average yield on investments, partially offset by a decline in the average balance of investments.

    Interest income on loans increased $556 thousand, or 4.5%, to $12.9 million for the quarter ended September 30, 2024, compared to $12.3 million for the quarter ended June 30, 2024, and increased $1.4 million, or 11.9%, from $11.5 million for the quarter ended September 30, 2023. The average balance of total loans was $898.6 million for the quarter ended September 30, 2024, up from $891.9 million for the quarter ended June 30, 2024 and $862.4 million for the quarter ended September 30, 2023. The average yield on total loans was 5.70% for the quarter ended September 30, 2024, up from 5.56% for the quarter ended June 30, 2024 and 5.29% for the quarter ended September 30, 2023. The increase in the average loan yield during the current quarter, compared to both the prior quarter and the third quarter of 2023, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the third quarter of 2023. The increase in the average balance during the current quarter compared to the prior quarter was primarily due to growth in commercial and multifamily loans, manufactured housing loans and consumer loans, with the growth in consumer loans coming primarily from floating home loans. This was partially offset by a decline in construction and land loans. The average balances for commercial business loans and one-to-four family loans remained relatively flat from the second quarter of 2024. The increase in the average balance of loans during the current quarter compared to the third quarter of 2023 was primarily due to loan growth across all categories, except for one-to-four family loans, construction and land loans, and commercial business loans, with the largest decrease being in construction and land loans.

    Interest income on investments was $132 thousand for the quarter ended September 30, 2024, compared to $133 thousand for the quarter ended June 30, 2024, and $139 thousand for the quarter ended September 30, 2023. Interest income on interest-bearing cash increased $244 thousand to $1.8 million for the quarter ended September 30, 2024, compared to $1.6 million for the quarter ended June 30, 2024, and increased $788 thousand from $1.0 million for the quarter ended September 30, 2023. These increases were due to higher average balances of interest-bearing cash, with the increase from the same quarter in the prior year also resulting from a higher average yield.

    Interest expense increased $374 thousand, or 5.7%, to $7.0 million for the quarter ended September 30, 2024, from $6.6 million for the quarter ended June 30, 2024, and increased $2.4 million, or 54.2%, from $4.5 million for the quarter ended September 30, 2023. The increase in interest expense during the current quarter from the prior quarter was primarily the result of a $38.8 million increase in the average balance of savings and money market accounts, as well as higher average rates paid on these accounts, partially offset by a $13.9 million decrease in the average balance of certificate accounts. The increase in interest expense during the current quarter from the comparable period a year ago was primarily the result of a $9.8 million increase in the average balance of certificate accounts and a $148.1 million increase in the average balance of savings and money market accounts, as well as higher average rates paid on all interest-bearing deposits. This was partially offset by a $46.3 million decrease in the average balance of demand and NOW accounts and a $2.8 million decrease in the average balance of FHLB advances. The average cost of deposits was 2.74% for the quarter ended September 30, 2024, up from 2.67% for the quarter ended June 30, 2024 and 1.85% for the quarter ended September 30, 2023. The average cost of FHLB advances was 4.32% for both the quarters ended September 30, 2024 and June 30, 2024, and down from 4.38% for the quarter ended September 30, 2023.

    NIM (annualized) was 2.98% for the quarter ended September 30, 2024, up from 2.92% for the quarter ended June 30, 2024 and down from 3.38% for the quarter ended September 30, 2023. The increase in NIM from the prior quarter was result of an increase in interest income on interest-earning assets, partially offset by an increase in the cost of funding. The decrease in NIM from the quarter one year ago was primarily due to the cost of funding increasing at a faster pace than the yield earned on interest-earning assets, driven by the higher average balance of higher costing money market and certificate accounts.

    A provision for credit losses of $8 thousand was recorded for the quarter ended September 30, 2024, consisting of a provision for credit losses on loans of $106 thousand and a release of provision for credit losses on unfunded loan commitments of $98 thousand. This compared to a release of provision for credit losses of $109 thousand for the quarter ended June 30, 2024, consisting of a release of provision for credit losses on loans of $88 thousand and a release of provision for credit losses on unfunded loan commitments of $21 thousand, and a provision for credit losses of $75 thousand for the quarter ended September 30, 2023, consisting of a provision for credit losses on loans of $224 thousand and a release of the provision for credit losses on unfunded loan commitments of$149 thousand. The increase in the provision for credit losses for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 resulted primarily from growth in the loan portfolio and higher quantitative loss rates, which were influenced by a forecast of higher unemployment, and enhancements to the loss model, including an additional qualitative adjustment related to loan review. These adjustments were partially offset by decline in the balance of the construction loan portfolio, which typically has higher loss rates, and a decrease in the qualitative risk adjustment for construction loans as projects were completed and market conditions improved. Expected loss estimates consider various factors, such as market conditions, borrower -specific information, projected delinquencies, and the impact of economic conditions on borrowers’ ability to repay.

    Noninterest income increased $73 thousand, or 6.3%, to $1.2 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and increased $154 thousand, or 14.2%, compared to the quarter ended September 30, 2023. The increase from the prior quarter was primarily related to a $217 thousand upward adjustment in fair value of mortgage servicing rights and a $52 thousand increase in earnings from bank-owned life insurance (“BOLI”), both influenced by fluctuating market interest rates. These gains were partially offset by a $133 thousand decrease in service charges and fee income, which was elevated in the prior quarter due to the recovery of potential future lost fee income due to vendor error. Additionally, there was a $34 thousand decrease in net gain on sale of loans, due to lower sales volume, and a $30 thousand decrease in gain on disposal of assets due to insurance claims on the loss of fully depreciated assets in second quarter of 2024. The increase in noninterest income from the comparable period in 2023 was primarily due to an $98 thousand increase in earnings on BOLI due to market rate fluctuations, and an $179 thousand increase in the fair value adjustment on mortgage servicing rights due to changes in prepayment speeds, servicing costs, and discount rate. These increases were partially offset by a $72 thousand decrease in service charges and fee income primarily due to a volume incentive paid by Mastercard in 2023, a $36 thousand decrease in net gain on sale of loans for reason similar to those noted above, and a decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than we are replacing the loans. Additionally, mortgage servicing income decreased by $15 thousand compared to the third quarter of 2023. Loans sold during the quarter ended September 30, 2024, totaled $2.4 million, compared to $4.0 million and $4.4 million of loans sold during the quarters ended June 30, 2024 and September 30, 2023, respectively.

    Noninterest expense decreased $58 thousand, or 0.7%, to $7.7 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and decreased $31 thousand, or 0.4%, from the quarter ended September 30, 2023. The decrease from the quarter ended June 30, 2024 was primarily a result of lower a $189 thousand decrease in salaries and benefits, primarily due to lower incentive compensation accruals. This was partially offset by an $157 thousand increase in data processing expenses, largely due to a vendor reimbursement received in the previous quarter for software implementation costs. Additionally, regulatory assessments declined $31 thousand due to a lower accrual for exam costs. Compared to same quarter in 2023, the decrease in noninterest expense was primarily due to lower operations, data processing, and occupancy expenses, which were partially offset by a $321 thousand increase in salaries and benefits. Operations expenses decreased due to reduction in loan originations costs, office expenses, marketing costs, legal fees, and charitable contributions, partially offset by an operational loss from a fraudulently obtained loan charged off in the third quarter of 2024. Data processing expenses decreased due to one-time costs related to new technology implemented in 2023, while occupancy expenses decreased primarily due fully amortized leasehold improvements. The increase in salaries and benefits compared to the third quarter of 2023 reflected higher incentive compensation, medical expenses, retirement plan costs, and directors’ fees (due to the addition of a new director), partially offset by lower salaries from a restructuring of positions at the end of 2023.

    Balance Sheet Review, Capital Management and Credit Quality

    Assets at September 30, 2024 totaled $1.10 billion, an increase from $1.07 billion at June 30, 2024 and $1.03 billion at September 30, 2023. The increase in total assets from June 30, 2024 and one year ago was primarily due to an increase in cash and cash equivalents and in loans held-for-portfolio.

    Cash and cash equivalents increased $13.8 million, or 10.2%, to $148.9 million at September 30, 2024, compared to $135.1 million at June 30, 2024, and increased $47.0 million, or 46.2%, from $101.9 million at September 30, 2023. The increase from the prior quarter and from one year ago was primarily due to the increase in deposits exceeding the increase in loans held-for-portfolio.

    Investment securities increased $28 thousand, or 0.3%, to $10.2 million at September 30, 2024, compared to $10.1 million at June 30, 2024, and increased $17 thousand, or 0.2%, from $10.2 million at September 30, 2023. Held-to-maturity securities totaled $2.1 million at both September 30, 2024 and June 30, 2024, and totaled $2.2 million at September 30, 2023. Available-for-sale securities totaled $8.0 million at September 30, 2024, June 30, 2024 and September 30, 2023.

    Loans held-for-portfolio were $901.7 million at September 30, 2024, compared to $889.3 million at June 30, 2024 and $875.4 million at September 30, 2023. The increase from to June 30, 2024, primarily resulted from growth in one-to-four family home loans, commercial and multifamily loans, as well as manufactured home and floating home loans, partially offset by decreases in construction and land loans and home equity loans. The increase in one-to-four family home loans was primarily due to new originations exceeding prepayments during the quarter, while the increase in commercial and multifamily loans primarily resulted from conversion of construction projects to permanent financing. The increase in manufactured home loans and floating home loans relates to continued strong demand for this type of financing in our market. The decrease in construction and land loans was primarily due to project completions and reduced demand caused by higher interest rates, which limited new financing opportunities. The decrease in home equity loans reflected normal payment fluctuations. Compared to September 30, 2024, the overall increase in loans held-for-portfolio was due to sustained strong loan demand and slower prepayment activity, with increases primarily related to commercial and multifamily loans, home equity loans, manufactured home loans and floating home loans.

    Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, decreased $420 thousand, or 4.7%, to $8.6 million at September 30, 2024, from $9.0 million at June 30, 2024 and increased $6.3 million, or 268.2%, from $2.3 million at September 30, 2023. The decrease in NPAs from June 30, 2024 was primarily due to the payoff of three loans totaling $175 thousand and one loan totaling $421 thousand returning to accrual status, partially offset by the addition of eight loans totaling $260 thousand to nonaccrual. The increase in NPAs from one year ago was primarily due to the placement of an additional $7.7 million of loans on nonaccrual status, which included a $3.7 million matured commercial real estate loan where the borrower is in the process of securing financing from another lender, a $2.4 million floating home loan, and a $985 thousand commercial real estate loan, all of which are well secured, and one manufactured home loan of $115 thousand that was repossessed in the first quarter of 2024. These additions were partially offset by the payoff of seven loans totaling $877 thousand, and normal payment amortization.

    NPAs to total assets were 0.78%, 0.84% and 0.23% at September 30, 2024, June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans to total loans outstanding was 0.95% at September 30, 2024, compared to 0.96% at both June 30, 2024 and September 30, 2023. Net loan charge-offs for the third quarter of 2024 totaled $14 thousand, compared to $17 thousand for the second quarter of 2023, and $3 thousand for the third quarter of 2023.

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

      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Nonperforming Loans:                  
    One-to-four family $ 745     $ 822     $ 835     $ 1,108     $ 1,137  
    Home equity loans   338       342       83       84       86  
    Commercial and multifamily   4,719       5,161       4,747       —       306  
    Construction and land   25       28       29       —       78  
    Manufactured homes   230       136       166       228       151  
    Floating homes   2,377       2,417       3,192       —       —  
    Commercial business   23       —       —       2,135       —  
    Other consumer   32       3       1       1       4  
    Total nonperforming loans   8,489       8,909       9,053       3,556       1,762  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       575       575       575  
    Manufactured homes   115       115       115       —       —  
    Total OREO and repossessed assets   115       115       690       575       575  
    Total NPAs $ 8,604     $ 9,024     $ 9,743     $ 4,131     $ 2,337  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   8.7 %     9.1 %     8.5 %     26.9 %     48.7 %
    Home equity loans   3.9       3.8       0.9       2.0       3.7  
    Commercial and multifamily   54.8       57.2       48.7       —       13.1  
    Construction and land   0.3       0.3       0.3       —       3.3  
    Manufactured homes   2.7       1.5       1.7       5.5       6.4  
    Floating homes   27.6       26.8       32.8       —       —  
    Commercial business   0.3       —       —       51.7       —  
    Other consumer   0.4       —       —       —       0.2  
    Total nonperforming loans   98.7       98.7       92.9       86.1       75.4  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       5.9       13.9       24.6  
    Manufactured homes   1.3       1.3       1.2       —       —  
    Total OREO and repossessed assets   1.3       1.3       7.1       13.9       24.6  
    Total NPAs   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
     

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

      At or For the Quarter Ended:
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Allowance for Credit Losses on Loans                  
    Balance at beginning of period $ 8,493     $ 8,598     $ 8,760     $ 8,438     $ 8,217  
    (Release of) Provision for credit losses during the period   106       (88 )     (106 )     337       224  
    Net charge-offs during the period   (14 )     (17 )     (56 )     (15 )     (3 )
    Balance at end of period $ 8,585     $ 8,493     $ 8,598     $ 8,760     $ 8,438  
    Allowance for Credit Losses on Unfunded Loan Commitments                  
    Balance at beginning of period $ 245     $ 266     $ 193     $ 557     $ 706  
    (Release of) Provision for credit   (98 )     (21 )     73       (364 )     (149 )
    Balance at end of period   147       245       266       193       557  
    Allowance for Credit Losses $ 8,732     $ 8,738     $ 8,864     $ 8,953     $ 8,995  
    Allowance for credit losses on loans to total loans   0.95 %     0.96 %     0.96 %     0.98 %     0.96 %
    Allowance for credit losses to total loans   0.97 %     0.98 %     0.99 %     1.00 %     1.03 %
    Allowance for credit losses on loans to total nonperforming loans   101.13 %     95.33 %     94.97 %     246.34 %     478.89 %
    Allowance for credit losses to total nonperforming loans   102.86 %     98.08 %     97.91 %     251.77 %     510.50 %
     

    Deposits increased $23.4 million, or 2.6%, to $930.2 million at September 30, 2024, from $906.8 million at June 30, 2024 and increased $69.3 million, or 8.1%, from $860.9 million at September 30, 2023. The increase in deposits compared to the prior quarter-end was primarily a result of an increase of $17.0 million related to one new depositor relationship, as well as a $5.3 million increase in related party money market deposits. Compared to a year ago, the increase was primarily a result of an increase in certificate accounts and money market accounts, including $50.2 million of related party deposits, which helped fund organic loan growth. These increases were partially offset by decreases in noninterest-bearing and interest-bearing demand accounts and savings accounts, as interest rate sensitive clients shifted funds from lower-cost deposits, such as noninterest-bearing deposits, into higher rate money market and time deposits. Noninterest-bearing deposits increased $4.8 million, or 3.8%, to $129.7 million at September 30, 2024, compared to $124.9 million at June 30, 2024 and decreased $24.2 million, or 15.7%, from $153.9 million at September 30, 2023. Noninterest-bearing deposits represented 14.0%, 13.8% and 17.9% of total deposits at September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

    FHLB advances totaled $40.0 million at each of September 30, 2024, June 30, 2024, and September 30, 2023. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at September 30, 2024 had maturities ranging from late 2024 through early 2028. Subordinated notes, net totaled $11.7 million at each of September 30, 2024, June 30, 2024 and September 30, 2023.

    Stockholders’ equity totaled $102.2 million at September 30, 2024, an increase of $892 thousand, or 0.9%, from $101.3 million at June 30, 2024, and an increase of $2.0 million, or 2.0%, from $100.2 million at September 30, 2023. The increase in stockholders’ equity from June 30, 2024 was primarily the result of $1.2 million of net income earned during the current quarter and a $127 thousand decrease in accumulated other comprehensive loss, net of tax, partially offset by the payment of $487 thousand in cash dividends to the Company’s stockholders.

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

    Forward-Looking Statements Disclaimer

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

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

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


    CONSOLIDATED INCOME STATEMENTS

    (Dollars in thousands, unaudited)

        For the Quarter Ended
        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Interest income   $ 14,838   $ 14,039     $ 13,760     $ 13,337     $ 12,686  
    Interest expense     6,965     6,591       6,300       5,770       4,518  
    Net interest income     7,873     7,448       7,460       7,567       8,168  
    Provision for (release of) credit losses     8     (109 )     (33 )     (27 )     75  
    Net interest income after provision for (release of) credit losses     7,865     7,557       7,493       7,594       8,093  
    Noninterest income:                    
    Service charges and fee income     628     761       612       576       700  
    Earnings on bank-owned life insurance     186     134       177       222       88  
    Mortgage servicing income     280     279       282       288       295  
    Fair value adjustment on mortgage servicing rights     101     (116 )     (65 )     (96 )     (78 )
    Net gain on sale of loans     40     74       90       76       76  
    Other income     —     30       —       —       —  
    Total noninterest income     1,235     1,162       1,096       1,066       1,081  
    Noninterest expense:                    
    Salaries and benefits     4,469     4,658       4,543       3,802       4,148  
    Operations     1,540     1,569       1,457       1,537       1,625  
    Regulatory assessments     189     220       189       198       183  
    Occupancy     414     397       444       458       458  
    Data processing     1,067     910       1,017       1,311       1,296  
    Net (gain) loss on OREO and repossessed assets     —     (17 )     6       —       —  
    Total noninterest expense     7,679     7,737       7,656       7,306       7,710  
    Income before provision for income taxes     1,421     982       933       1,354       1,464  
    Provision for income taxes     267     187       163       143       295  
    Net income   $ 1,154   $ 795     $ 770     $ 1,211     $ 1,169  
     

    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)

        For the Nine Months Ended September 30
          2024       2023  
    Interest income   $ 42,638     $ 37,273  
    Interest expense     19,856       10,990  
    Net interest income     22,782       26,283  
    (Release of) provision for credit losses     (134 )     (246 )
    Net interest income after (release of) provision for credit losses     22,916       26,529  
    Noninterest income:        
    Service charges and fee income     2,001       1,951  
    Earnings on bank-owned life insurance     498       957  
    Mortgage servicing income     841       891  
    Fair value adjustment on mortgage servicing rights     (81 )     (123 )
    Net gain on sale of loans     205       264  
    Other income     30       —  
    Total noninterest income     3,494       3,940  
    Noninterest expense:        
    Salaries and benefits     13,670       13,333  
    Operations     4,566       4,557  
    Regulatory assessments     598       490  
    Occupancy     1,255       1,352  
    Data processing     2,995       3,077  
    Net (gain) loss on OREO and repossessed assets     (10 )     13  
    Total noninterest expense     23,074       22,822  
    Income before provision for income taxes     3,336       7,647  
    Provision for income taxes     617       1,419  
    Net income   $ 2,719     $ 6,228  
     

    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)

        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    ASSETS                    
    Cash and cash equivalents   $ 148,930     $ 135,111     $ 137,977     $ 49,690     $ 101,890  
    Available-for-sale securities, at fair value     8,032       7,996       8,115       8,287       7,980  
    Held-to-maturity securities, at amortized cost     2,139       2,147       2,157       2,166       2,174  
    Loans held-for-sale     65       257       351       603       1,153  
    Loans held-for-portfolio     901,733       889,274       897,877       894,478       875,434  
    Allowance for credit losses – loans     (8,585 )     (8,493 )     (8,598 )     (8,760 )     (8,438 )
    Total loans held-for-portfolio, net     893,148       880,781       889,279       885,718       866,996  
    Accrued interest receivable     3,705       3,413       3,617       3,452       3,415  
    Bank-owned life insurance, net     22,363       22,172       22,037       21,860       21,638  
    Other real estate owned (“OREO”) and other repossessed assets, net     115       115       690       575       575  
    Mortgage servicing rights, at fair value     4,665       4,540       4,612       4,632       4,681  
    Federal Home Loan Bank (“FHLB”) stock, at cost     2,405       2,406       2,406       2,396       2,783  
    Premises and equipment, net     4,807       4,906       6,685       5,240       5,204  
    Right-of-use assets     3,779       4,020       4,259       4,496       4,732  
    Other assets     6,777       6,995       4,500       6,106       6,955  
    TOTAL ASSETS   $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221     $ 1,030,176  
    LIABILITIES                    
    Interest-bearing deposits   $ 800,480     $ 781,854     $ 788,217     $ 699,813     $ 706,954  
    Noninterest-bearing deposits     129,717       124,915       128,666       126,726       153,921  
    Total deposits     930,197       906,769       916,883       826,539       860,875  
    Borrowings     40,000       40,000       40,000       40,000       40,000  
    Accrued interest payable     908       760       719       817       588  
    Lease liabilities     4,079       4,328       4,576       4,821       5,065  
    Other liabilities     9,711       9,105       9,578       9,563       9,794  
    Advance payments from borrowers for taxes and insurance     2,047       812       2,209       1,110       1,909  
    Subordinated notes, net     11,749       11,738       11,728       11,717       11,707  
    TOTAL LIABILITIES     998,691       973,512       985,693       894,567       929,938  
    STOCKHOLDERS’ EQUITY:                    
    Common stock     25       25       25       25       25  
    Additional paid-in capital     28,296       28,198       28,110       27,990       28,112  
    Retained earnings     74,840       74,173       73,907       73,627       73,438  
    Accumulated other comprehensive loss, net of tax     (922 )     (1,049 )     (1,050 )     (988 )     (1,337 )
    TOTAL STOCKHOLDERS’ EQUITY     102,239       101,347       100,992       100,654       100,238  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221     $ 1,030,176  
     

    KEY FINANCIAL RATIOS
    (unaudited)

        For the Quarter Ended
        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Annualized return on average assets     0.42 %     0.30 %     0.29 %     0.46 %     0.46 %
    Annualized return on average equity     4.50 %     3.17 %     3.06 %     4.78 %     4.60 %
    Annualized net interest margin(1)     2.98 %     2.92 %     2.95 %     3.04 %     3.38 %
    Annualized efficiency ratio(2)     84.31 %     89.86 %     89.48 %     84.63 %     83.36 %
    (1)   Net interest income divided by average interest earning assets.
    (2)   Noninterest expense divided by total revenue (net interest income and noninterest income).
     

    PER COMMON SHARE DATA
    (unaudited)

        At or For the Quarter Ended
        September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    Basic earnings per share   $ 0.45     $ 0.31     $ 0.30     $ 0.47     $ 0.45  
    Diluted earnings per share   $ 0.45     $ 0.31     $ 0.30     $ 0.47     $ 0.45  
    Weighted-average basic shares outstanding     2,544,233       2,540,538       2,539,213       2,542,175       2,553,773  
    Weighted-average diluted shares outstanding     2,569,368       2,559,015       2,556,958       2,560,656       2,571,808  
    Common shares outstanding at period-end     2,564,095       2,557,284       2,558,546       2,549,427       2,568,054  
    Book value per share   $ 39.87     $ 39.63     $ 39.47     $ 39.48     $ 39.03  
     

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

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

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average
    Outstanding
    Balance
      Interest
    Earned/
    Paid
      Yield/Rate   Average Outstanding Balance   Interest
    Earned/
    Paid
      Yield/Rate   Average Outstanding Balance   Interest
    Earned/
    Paid
      Yield/Rate
    Interest-Earning Assets:                                  
    Loans receivable $ 898,570     $ 12,876   5.70 %   $ 891,863     $ 12,320   5.56 %   $ 862,397     $ 11,505   5.29 %
    Interest-earning cash   138,240       1,830   5.27 %     120,804       1,586   5.28 %     81,616       1,042   5.07 %
    Investments   13,806       132   3.80 %     13,935       133   3.84 %     14,793       139   3.73 %
    Total interest-earning assets $ 1,050,616       14,838   5.62 %     1,026,602     $ 14,039   5.50 %   $ 958,806       12,686   5.25 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 340,281       2,688   3.14 %   $ 301,454       2,115   2.82 %   $ 192,214       720   1.49 %
    Demand and NOW accounts   148,252       151   0.41 %     153,739       148   0.39 %     194,561       173   0.35 %
    Certificate accounts   303,632       3,524   4.62 %     317,496       3,731   4.73 %     293,820       2,984   4.03 %
    Subordinated notes   11,745       168   5.69 %     11,735       168   5.76 %     11,703       168   5.70 %
    Borrowings   40,000       434   4.32 %     40,000       429   4.31 %     42,815       473   4.38 %
    Total interest-bearing liabilities $ 843,910       6,965   3.28 %   $ 824,424       6,591   3.22 %   $ 735,113       4,518   2.44 %
    Net interest income/spread     $ 7,873   2.34 %       $ 7,448   2.28 %       $ 8,168   2.81 %
    Net interest margin         2.98 %           2.92 %           3.38 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   124 %             125 %             130 %        
    Noninterest-bearing deposits $ 132,762             $ 128,878             $ 151,298          
    Total deposits   924,927     $ 6,363   2.74 %     901,567     $ 5,994   2.67 %     831,893     $ 3,877   1.85 %
    Total funding (1)   976,672       6,965   2.84 %     953,302       6,591   2.78 %     886,411       4,518   2.02 %
    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
     
      Nine Months Ended
      September 30, 2024   September 30, 2023
      Average
    Outstanding
    Balance
      Interest
    Earned/
    Paid
      Yield/Rate   Average
    Outstanding
    Balance
      Interest
    Earned/
    Paid
      Yield/Rate
    Interest-Earning Assets:                      
    Loans receivable $ 895,300     $ 37,429   5.58 %   $ 865,357     $ 34,437   5.32 %
    Interest-earning cash   122,194       4,832   5.28 %     70,094       2,447   4.67 %
    Investments   12,607       377   3.99 %     13,962       389   3.73 %
    Total interest-earning assets $ 1,030,101       42,638   5.53 %   $ 949,413       37,273   5.25 %
    Interest-Bearing Liabilities:                      
    Savings and money market accounts $ 308,845       6,669   2.88 %   $ 173,319       1,197   0.92 %
    Demand and NOW accounts   153,897       440   0.38 %     216,753       587   0.36 %
    Certificate accounts   312,176       10,950   4.69 %     273,564       7,182   3.51 %
    Subordinated notes   11,735       504   5.74 %     11,693       504   5.76 %
    Borrowings   40,000       1,293   4.32 %     45,280       1,520   4.49 %
    Total interest-bearing liabilities $ 826,653       19,856   3.21 %   $ 720,609       10,990   2.04 %
    Net interest income/spread     $ 22,782   2.32 %       $ 26,283   3.21 %
    Net interest margin         2.95 %           3.70 %
                           
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             132 %        
    Noninterest-bearing deposits $ 131,365             $ 161,051          
    Total deposits   906,283     $ 18,059   2.66 %     824,687     $ 8,966   1.45 %
    Total funding (1)   958,018       19,856   2.77 %     881,660       10,990   1.67 %
    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
     

    LOANS
    (Dollars in thousands, unaudited)

        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Real estate loans:                    
    One-to-four family   $ 271,702     $ 268,488     $ 279,213     $ 279,448     $ 280,556  
    Home equity     25,199       26,185       24,380       23,073       21,313  
    Commercial and multifamily     358,587       342,632       324,483       315,280       304,252  
    Construction and land     85,724       96,962       111,726       126,758       118,619  
    Total real estate loans     741,212       734,267       739,802       744,559       724,740  
    Consumer Loans:                    
    Manufactured homes     40,371       38,953       37,583       36,193       34,652  
    Floating homes     86,155       81,622       84,237       75,108       73,716  
    Other consumer     18,266       18,422       18,847       19,612       18,710  
    Total consumer loans     144,792       138,997       140,667       130,913       127,078  
    Commercial business loans     17,481       17,860       19,075       20,688       25,033  
    Total loans     903,485       891,124       899,544       896,160       876,851  
    Less:                    
    Premiums     736       754       808       829       850  
    Deferred fees, net     (2,488 )     (2,604 )     (2,475 )     (2,511 )     (2,267 )
    Allowance for credit losses – loans     (8,585 )     (8,493 )     (8,598 )     (8,760 )     (8,438 )
    Total loans held-for-portfolio, net   $ 893,148     $ 880,781     $ 889,279     $ 885,718     $ 866,996  
     

    DEPOSITS
    (Dollars in thousands, unaudited)

        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Noninterest-bearing demand   $ 129,717     $ 124,915     $ 128,666     $ 126,726     $ 153,921  
    Interest-bearing demand     148,740       152,829       159,178       168,346       185,441  
    Savings     61,455       63,368       65,723       69,461       76,729  
    Money market(1)     285,655       253,873       241,976       154,044       143,558  
    Certificates     304,630       311,784       321,340       307,962       301,226  
    Total deposits   $ 930,197     $ 906,769     $ 916,883     $ 826,539     $ 860,875  
    (1)   Includes $5.0 million of brokered deposits at December 31, 2023.
     

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Total nonperforming loans   $ 8,489     $ 8,909     $ 9,053     $ 3,556     $ 1,762  
    OREO and other repossessed assets     115       115       690       575       575  
    Total nonperforming assets   $ 8,604     $ 9,024     $ 9,743     $ 4,131     $ 2,337  
    Net charge-offs during the quarter   $ (14 )   $ (17 )   $ (56 )   $ (15 )   $ (3 )
    Provision for (release of) credit losses during the quarter     8       (109 )     (33 )     (27 )     75  
    Allowance for credit losses – loans     8,585       8,493       8,598       8,760       8,438  
    Allowance for credit losses – loans to total loans     0.95 %     0.96 %     0.96 %     0.98 %     0.96 %
    Allowance for credit losses – loans to total nonperforming loans     101.13 %     95.33 %     94.97 %     246.34 %     478.89 %
    Nonperforming loans to total loans     0.94 %     1.00 %     1.01 %     0.40 %     0.20 %
    Nonperforming assets to total assets     0.78 %     0.84 %     0.90 %     0.42 %     0.23 %
     

    OTHER STATISTICS
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
                         
    Total loans to total deposits     97.13 %     98.27 %     98.11 %     108.42 %     101.86 %
    Noninterest-bearing deposits to total deposits     13.95 %     13.78 %     14.03 %     15.33 %     17.88 %
                         
    Average total assets for the quarter   $ 1,095,404     $ 1,070,579     $ 1,062,036     $ 1,033,985     $ 1,005,223  
    Average total equity for the quarter   $ 102,059     $ 100,961     $ 101,292     $ 100,612     $ 100,927  
                                             

    Contact

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

    The MIL Network –

    January 25, 2025
  • MIL-OSI Economics: IMF Releases the 2024 Financial Access Survey Results

    Source: International Monetary Fund

    October 30, 2024

    Washington, DC: The International Monetary Fund (IMF) released the results of the 2024 Financial Access Survey (FAS), marking the 15th anniversary of the FAS. The report “FAS: 2024 Highlights,” published along with the data release, summarizes the key trends on access to and usage of financial services over the past few years. Established in 2009, the FAS has played a crucial role in providing essential data to develop and evaluate financial inclusion policies, a topic of key relevance for the IMF, as it fosters broader economic participation, reduces inequalities, promotes inclusive growth, and aids in achieving the Sustainable Development Goals (SDGs). The FAS stands as the most comprehensive annual supply-side database on financial inclusion, boasting nearly complete global coverage. It covers 192 economies, featuring 121 series and 70 normalized indicators for global comparison. The FAS dataset spans from 2004 to 2023, and it continues to evolve in line with financial innovations such as the provision of digital financial services and the increasing demand for gender-disaggregated data.

    Digital Financial Services Continue to Make Gains

    There has been a substantial increase in the usage of non-traditional financial services, including mobile and internet banking, with mobile money being particularly important in Sub-Saharan Africa. Yet, usage of traditional financial services remains essential in many economies. For example, from 2013 to 2019, deposit accounts per 100 adults increased by over 40% in emerging and developing Europe and Sub-Saharan Africa. The growth of digital financial services has also led to an increase in non-traditional access points, such as retail and mobile money agents, while traditional access methods like ATMs and bank branches have seen a decline, especially since the COVID-19 pandemic (Figure).

    Traditional and Non-traditional Access Points in Recent Years (2019 to 2023)

    (Number of Access Points Per 100,000 Adults)

     

    Source: Financial Access Survey and IMF staff calculations.

    Notes: These charts show the weighted average by region for economies whose data are available for 2019–2023. Country coverage differs across indicators depending on data availability. While three economies from Latin America and the Caribbean (El Salvador, Colombia, and Haiti) report data on number of registered mobile money agents, none provide data for all five years covered in this chart and are therefore not included.

    Microfinance Institutions Have Continued Supporting Economically Marginalized Groups

    Financing by microfinance institutions has shown resilience amid recent economic shocks. In various economies, borrowing from microfinance institutions increased, as indicated by the growth in the number of accounts and outstanding loans. While commercial banks usually provide larger loan amounts, microfinance institutions serve a broader client base, as evidenced by the larger number of loan accounts compared to those at commercial banks.

    Challenges in Narrowing Gender Gaps Remain 

    Despite the benefits of incorporating women into the financial system, substantial gender gaps in the usage of financial services persist. These gaps are particularly evident in the usage of deposit and loan accounts. Globally, women’s outstanding deposit amounts as percentage of men’s stand at 64 percent, while their outstanding loan balances account for only 46 percent of men’s. In terms of regional differences, advanced economies demonstrate a more gender-equal financial inclusion compared to emerging economies. Among the latter, emerging and developing Europe and Latin America and the Caribbean show relatively higher gender equality.

    Lending to SMEs Declined

    Data from FAS indicate a decrease in the outstanding amounts of SME loans from 2021 to 2023 in most economies that reported this information. Although several supportive policies were introduced during the COVID-19 Pandemic, subsequent developments, including tighter financial conditions and geopolitical tensions, may have contributed to the decline in SME loans.

    Additional Enhancements to the FAS are Being Tested

    To ensure the FAS data remain vital for informing financial inclusion policy, a pilot exercise is underway to assess the potential for enhancing the FAS. This includes incorporating additional gender disaggregation, information on new fintech services, and important factors such as loan pricing and risks, especially for underserved populations.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pemba Sherpa

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

    @IMFSpokesperson

    MIL OSI Economics –

    January 25, 2025
  • MIL-OSI United Kingdom: Government ends miners’ pension injustice

    Source: United Kingdom – Government Statements

    Historic injustice reversed as 112,000 former coalminers finally have £1.5 billion from their pension scheme transferred to them, boosting their pensions.

    • Historic injustice reversed as 112,000 former coalminers finally have £1.5 billion from their pension scheme transferred to them, boosting their pensions by 32% 

    • Government delivers longstanding campaign ask from ex-pit workers, alongside new review to also ensure mineworkers receive a fair pension for years to come 

    • Energy Secretary pays tribute to the “mineworkers who powered our country” and the campaigners who fought for justice over many years 

    Over 100,000 former mineworkers will receive £1.5 billion of money that was kept from their pensions, overturning an historic injustice and ensuring fair payouts for years to come. 

    Following the announcement in yesterday’s budget, Energy Secretary Ed Miliband confirmed that the move will mean a 32% boost to the annual pensions of 112,000 former mineworkers – an average increase of £29 per week for each member. 

    The investment reserve fund was set up using profits from the scheme in 1992, to provide a buffer in case the Mineworkers’ Pension Scheme went into deficit. This money was due to be returned to government in 2029.  

    Former mineworkers and their families have fought for justice for many years. In a landmark decision, the fund – now worth £1.5 billion – will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.  

    When British Coal was privatised in 1994, the government also agreed to take half of any profits generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation. 

    The scheme has continued to produce strong returns and the government has never paid any funds into it. Therefore, the government is also delivering on its commitment to review this agreement to ensure former miners and their families get a fairer deal in the years ahead, with next steps set out in the coming months. 

    Energy Secretary Ed Miliband said: 

    We owe the mining communities who powered this country a debt of gratitude.  

    For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families. 

    Today, that scandal ends, and the money is rightfully transferred to the miners. I pay tribute to the campaigners who have fought for justice- today is their victory.

    Minister for Industry Sarah Jones said: 

    Miners powered our industries and our homes for decades. That’s why we have to right the wrong that has denied them the decent pension they deserved. 

    We are handing over the £1.5 billion that for years has sat in the reserve fund unused at times when people needed it most. This will end an historic injustice and will ensure members of the scheme see an average increase of £29 per week added to their pay – an increase of 32%.

    Gary Saunders, Chair of the Trustees of the Mineworker’ Pension Scheme, said: 

    As a Trustee board we are delighted we will be able to put more money in our members’ pockets. We are also grateful to the many members and MPs who have shown support of the Scheme on this matter over the years.

    Allen Young, Pensioner Representative Trustee for the North East of England and Overseas members, said: 

    The government’s decision to make good on this part of its manifesto commitment in respect of the Scheme is a very positive development for our members. The Trustees will use the Investment Reserve to increase our members’ pensions and we will be writing to all members with the good news very shortly.

    The trustees are responsible for deciding how the £1.5 billion fund is distributed amongst their 112,000 members and are now working at speed to deliver the bonus into pension pay packets from November this year. 

    This announcement follows urgent action already taken toward the government’s clean energy superpower mission, helping to boost energy independence and create jobs. In just three months this includes lifting the ban on onshore wind, setting up Great British Energy and announcing a partnership with The Crown Estate to accelerate offshore wind projects, approving four major solar farms, launching the Clean Energy Mission Control centre led by Chris Stark, securing a record pipeline of renewable projects in the latest auction and launching the UK’s first carbon capture sites. 

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    Updates to this page

    Published 31 October 2024

    MIL OSI United Kingdom –

    January 25, 2025
  • MIL-OSI Australia: New board members appointed to Independent Liquor and Gaming Authority

    Source: New South Wales Ministerial News

    Published: 31 October 2024

    Released by: Minister for Gaming and Racing


    The NSW Government has made appointments to the board of the Independent Liquor and Gaming Authority (ILGA), including a deputy chairperson and two new members.

    Associate Professor Amelia Thorpe and Nicholas Nichles have been appointed following a rigorous public expression of interest selection process. Additionally, existing member Chris Honey has been appointed deputy chairperson.

    ILGA is a statutory decision-maker responsible for a range of liquor, registered club, and gaming machine regulatory functions including determining licensing and disciplinary matters.

    The appointments follow the end of the term of appointment for outgoing deputy chairperson Sarah Dinning, and also fill vacancies that existed on the board.

    Mr Honey, who was appointed a member of ILGA earlier in 2024, has been named deputy chairperson until the end of his current appointment term (11 February 2027). Mr Honey has extensive experience in the advisory and restructuring field, including working extensively in highly regulated sectors.

    Associate Professor Thorpe and Mr Nichles have both been appointed for four years commencing 6 November 2024.

    Associate Prof Thorpe is with the Faculty of Law & Justice at the University of New South Wales and an Acting Commissioner of the NSW Land and Environment Court.

    Mr Nichles was previously a Consul General and Senior Trade and Investment Commissioner for Australian Government agency Austrade, based in the US.

    The new appointments bring the ILGA board membership to seven.

    The new appointments will join chairperson Caroline Lamb, new deputy chairperson Mr Honey and current members Cathie Armour, Jeffrey Loy APM and Dr Suzanne Craig.

    For more information about ILGA, visit: https://www.ilga.nsw.gov.au/

    Minister for Gaming and Racing David Harris said:

    “I would like to thank Sarah Dinning for her contribution to the Independent Liquor and Gaming Authority, including during her service as deputy chairperson.

    “ILGA has an important role to play as the administrative decision-making authority for liquor, registered club and gaming machine licensing decisions in NSW.

    “An exhaustive selection process was undertaken for these new appointments in accordance with legislative requirements and including the engagement of an independent probity advisor.

    “Chris Honey has brought significant expertise to the board since his appointment and Amelia Thorpe and Nicholas Nichles will bring their substantial experience, expertise and leadership to ILGA.”

    ILGA chairperson Caroline Lamb said:

    “Mr Honey joined the ILGA board earlier this year and has proven himself to be an invaluable board member with his energy and considerable skills and experience in the advisory and restructuring field.

    “The ILGA board also welcomes A/Prof Thorpe and Mr Nichles to the board.

    “People appointed to the ILGA board must be of the highest integrity and promote fair, transparent and efficient decision-making.”

    MIL OSI News –

    January 25, 2025
  • MIL-OSI USA: Cassidy Discusses Infrastructure and Energy in Capital Region

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy
    BATON ROUGE –Today, U.S. Senator Bill Cassidy, M.D. (R-LA) hosted his final rural community funding summit of 2024, to connect elected leaders in the Capital Region with opportunities in the Infrastructure Investment and Jobs Act (IIJA) to improve roads, fix sewage and water problems, and reduce their risk of flooding.
    “We have a partnership with mayors and other leaders in the Capital Region to use the Bipartisan Infrastructure Bill to meet the needs of this growing community,” said Dr. Cassidy. “Already we’re replacing gas lines in Donaldsonville and East Feliciana and reducing flood risk across the Baton Rouge area. This region is moving forward.”
    Cassidy also discussed the IIJA before the West Baton Rouge Chamber of Commerce. Communities in the Capital Region have been major beneficiaries of the law. Just last week, Iberville Parish was awarded over $2.54 million and the village of Morganza over $1.87 million to upgrade their natural gas pipe systems. Additionally, Cassidy announced last October that the Louisiana Department of Transportation and Development received $88.3 million for Phase One of the LA 415 Interconnector Project, which would help fund the construction of highways and bridges and reduce traffic congestion in the Baton Rouge area, including in West Baton Rouge Parish.
    Other major grant announcements for communities around Baton Rouge include over $10.4 million from the drinking water state revolving fund for the Livingston Ward 2 Water District and West Feliciana Parish, $30 million in 2023 and 2024 to replace aging gas pipes in the City of Donaldsonville, over $33 million for dredging and surveys along the Atchafalaya River and in Bayous Chene, Boeuf and Black, over $39 million for improvements to the Gulf Intracoastal Waterway, and $100 million to launch a manufacturing plant in St. Gabriel that will produce lithium hexafluorophosphate, which is necessary for batteries. Major highway projects are also being funded throughout the region.
    At the rural community funding summit and the West Baton Rouge Chamber, Cassidy was welcomed by community leaders and thanked for his service.
    “I appreciate Senator Cassidy coming to Gonzales to make sure that communities in Ascension Parish and throughout the region know how we can take advantage of his infrastructure bill,” said Mayor Ryland Percy, of Gonzales, Louisiana. “I also appreciate his work to protect the energy industry that keeps people here and throughout the parish. That’s the kind of leadership we need in Washington.”
    “Thanks to Senator Cassidy, the people in West Baton Rouge Parish employed by our manufacturers and energy companies will be able to stay employed and make a life in this community,” said Ms. Anna Johnson, Executive Director of the West Baton Rouge Chamber of Commerce. “And his infrastructure bill will make it easier for them to get to work, to their kids’ school, and back home in the evening. We appreciate Senator Cassidy for making life easier and better for our neighbors.”
    Later, Cassidy toured Turner Industries’ modular fabrication facility in Port Allen, from which they also transport modules. They build major modules (or components) for industrial facilities such as refineries and petrochemical plants, and then ship them to worksites for more efficient installation. Their facility is also being used to build modules for LNG plants that will process liquefied natural gas, to be delivered to the rest of the world while supporting jobs in Louisiana.
    “Turner is building modules for the Venture Global plant,” said Dr. Cassidy. “They’re part of a job creating process that starts at the wellhead and ends at the LNG terminal, but along the way produces thousands of great paying Louisiana jobs.”
    Turner’s Port Allen facility features a 415 Yard, which spans 35 acres, has a 24,000-square-foot module assembly building, and sits along 1,100 feet of intracoastal waterway in order to more easily ship modules. The 415 Yard is one of three similar facilities that Turner owns. As part of their module construction, they provide welding, blasting and painting, steel and pipe support fabrication, and specialty alloy work. Additionally, Turner has a pipe fabrication facility nearby, which is capable of producing more than 6,500 spools per month. Turner Industries provides its array of services in over 400 facilities across the nation.
    Cassidy has also worked to protect Louisiana’s energy industry. On October 16, Cassidy convened the Louisiana Energy Security Summit in Baton Rouge, which brought together senior officials from previous Republican administrations and leaders in Louisiana’s energy industry and research community to discuss how to bring back manufacturing jobs to the United States by developing the state’s energy resources. Cassidy also introduced the Foreign Pollution Fee Act, which would improve U.S. trade policy to help Louisiana’s manufacturers counter the unfair competition they face from foreign adversaries like China.
    There are over 400 employees at Turner’s Port Allen facility. In total, Turner has over 19,000 employees. Cassidy was thanked in advance for his work in a statement by Mr. Stephen Toups, CEO of Turner Industries.
    “On behalf of the Turner team, we thank Senator Cassidy for visiting us in Port Allen today,” said Mr. Toups. “I am so glad that he got to meet the men and women who are constructing the modules for the Liquefied Natural Gas projects here in the state. Our state has supported so many energy projects for our country and for the world. Thanks to our employees, we are supporting the Senators vision to keep America energy independent, and to use that energy to produce jobs here at home. We look forward to working with the Senator as he writes laws that continue to make our work possible.”

    MIL OSI USA News –

    January 25, 2025
  • MIL-OSI Security: Winston County man sentenced to over 15 years for possessing methamphetamine with intent to distribute

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    GREENVILLE, Miss. – Dennis Vernandale Phillips, 42, was sentenced today to over 15 years in prison for his possession of methamphetamine with the intent to distribute the controlled substance.

    The investigation began when law enforcement purchased over 30 grams of methamphetamine from Phillips using a confidential informant. During a subsequent search of Phillips’ residence in Preston, Mississippi, officers located methamphetamine, two firearms, and other narcotics. In total, Phillips’ conduct involved over a kilogram of methamphetamine that impacted the Choctaw Indian Reservation in Winston, Kemper, and Neshoba counties.

    On October 30, Chief U.S. District Court Judge Debra M. Brown sentenced Phillips to 188 months imprisonment followed by a 48-month term of supervised release for possessing the methamphetamine with intent to distribute.

    “Meth indiscriminately kills children, men and women and it ravages our communities, including the Choctaw Indian Reservation,” said U.S. Attorney Clay Joyner. “This prosecution and sentence are the result of outstanding cooperation between our federal law enforcement partners and the tribal police to achieve a straightforward goal – to reduce the supply of illicit drugs while seeing to it that those who poison communities with narcotics are held to account.”

    Phillips’ drug distribution was a threat to the community,” said Whitney Woodruff, Regional Agent in Charge of the Southeast Region for the Division of Drug Enforcement with the Bureau of Indian Affairs. “He was poisoning Indian Country for his personal gain and now he will pay the price.  I am proud of our partnerships with the other law enforcement agencies involved.” 

    The Bureau of Indian Affairs investigated the case in partnership with the Choctaw Police Criminal Investigations Division, the Mississippi Bureau of Narcotics, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

    Assistant U.S. Attorney Julie Howell Addison prosecuted the case.

    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 –

    January 25, 2025
  • MIL-OSI Economics: Money Market Operations as on October 30, 2024

    Source: Reserve Bank of India


    (Amount in ₹ crore, Rate in Per cent)

      Volume
    (One Leg)
    Weighted
    Average Rate
    Range
    A. Overnight Segment (I+II+III+IV) 518,653.92 6.31 5.00-6.60
         I. Call Money 7,712.90 6.47 5.80-6.60
         II. Triparty Repo 375,673.15 6.31 6.23-6.54
         III. Market Repo 134,564.87 6.32 5.00-6.60
         IV. Repo in Corporate Bond 703.00 6.43 6.40-6.60
    B. Term Segment      
         I. Notice Money** 2,403.90 6.40 5.10-6.50
         II. Term Money@@ 229.50 – 6.65-6.90
         III. Triparty Repo 8,559.10 6.54 6.30-6.65
         IV. Market Repo 1,439.16 6.50 6.30-6.70
         V. Repo in Corporate Bond 0.00 – –
      Auction Date Tenor (Days) Maturity Date Amount Current Rate /
    Cut off Rate
    C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF)
    I. Today’s Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo          
         (b) Reverse Repo Wed, 30/10/2024 1 Thu, 31/10/2024 35,525.00 6.49
    3. MSF# Wed, 30/10/2024 1 Thu, 31/10/2024 2,005.00 6.75
    4. SDFΔ# Wed, 30/10/2024 1 Thu, 31/10/2024 138,324.00 6.25
    5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*       -171,844.00  
    II. Outstanding Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo Fri, 18/10/2024 13 Thu, 31/10/2024 20,073.00 6.49
      (II) Fine Tuning Operations          
         (a) Repo Fri, 25/10/2024 6 Thu, 31/10/2024 25,005.00 6.55
         (b) Reverse Repo          
    3. MSF#          
    4. SDFΔ#          
    5. On Tap Targeted Long Term Repo Operations€ Mon, 15/11/2021 1095 Thu, 14/11/2024 250.00 4.00
    Mon, 27/12/2021 1095 Thu, 26/12/2024 2,275.00 4.00
    6. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 15/11/2021 1095 Thu, 14/11/2024 105.00 4.00
    Mon, 22/11/2021 1095 Thu, 21/11/2024 100.00 4.00
    Mon, 29/11/2021 1095 Thu, 28/11/2024 305.00 4.00
    Mon, 13/12/2021 1095 Thu, 12/12/2024 150.00 4.00
    Mon, 20/12/2021 1095 Thu, 19/12/2024 100.00 4.00
    Mon, 27/12/2021 1095 Thu, 26/12/2024 255.00 4.00
    D. Standing Liquidity Facility (SLF) Availed from RBI$       7,469.91  
    E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     15,941.91  
    F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -155,902.09  
    G. Cash Reserves Position of Scheduled Commercial Banks
         (i) Cash balances with RBI as on October 30, 2024 1,039,769.24  
         (ii) Average daily cash reserve requirement for the fortnight ending November 01, 2024 1,016,726.00  
    H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ October 30, 2024 0.00  
    I. Net durable liquidity [surplus (+)/deficit (-)] as on October 04, 2024 488,495.00  
    @ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
    – Not Applicable / No Transaction.
    ** Relates to uncollateralized transactions of 2 to 14 days tenor.
    @@ Relates to uncollateralized transactions of 15 days to one year tenor.
    $ Includes refinance facilities extended by RBI.
    & As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
    Δ As per the Press Release No. 2022-2023/41 dated April 08, 2022.
    * Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo-SDF.
    € As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020, Press Release No. 2020-2021/1057 dated February 05, 2021 and Press Release No. 2021-2022/695 dated August 13, 2021.
    ¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
    £ As per the Press Release No. 2021-2022/181 dated May 07, 2021 and Press Release No. 2021-2022/1023 dated October 11, 2021.
    # As per the Press Release No. 2023-2024/1548 dated December 27, 2023.
    Ajit Prasad          
    Deputy General Manager
    (Communications)    
    Press Release: 2024-2025/1404

    MIL OSI Economics –

    January 25, 2025
  • MIL-OSI Australia: SBS, NITV and Screen Australia announce documentary series 2.6 Seconds

    Source: Screen Australia

    30 10 2024 – Media release

    2.6 Seconds. Photo credit: Jesse Marlow. 
    SBS, NITV and Screen Australia are proud to announce the commission of landmark documentary series, 2.6 Seconds, a truth-telling of a fatal meeting between two young men from two very different worlds, in the isolated community of Yuendumu in Australia’s central desert. One black, the other white.
    2.6 Seconds is the story of how the paths of 19-year-old Warlpiri Luritja teenager, Kumanjayi Walker, and Zachary Rolfe, the 27-year-old police officer, came to cross. It traces the tearing apart of their lives and that of their families, and the clash of two notions of justice. It is a case that reaches far beyond these two men to tell a deeply compelling, insightful and confronting story about the country both were born into.
    Screen Australia’s Head of First Nations Angela Bates said, “2.6 Seconds not only explores the lives of Kumanjayi Walker and Zachary Rolfe but also navigates the complex intersection of culture and justice – empowering our communities to share their truths. The First Nations Department is proud to support such an important project, which plays a crucial role in elevating First Nations narratives and fostering understanding among all Australians.”
    SBS Head of Unscripted Joseph Maxwell said, “With unprecedented access, 2.6 Seconds will forensically examine what happened the night Kumanjayi Walker was killed, the trial that followed, and the impact on a family and community. The series will be a purposeful and powerful examination of those events and also the far-reaching repercussions on the entire country. This landmark series reflects the role of SBS and NITV to tell important and challenging stories that impact the nation.
    Director of Indigenous Content for SBS and NITV, Tanya Denning-Orman said, “The death of Kumanjayi Walker tore lives and communities apart. Over five years, we’ve all seen the media headlines and now, for the first time, SBS and NITV with Blackfella Films will take the time and care to tell this important story, hear from the voices involved, and in doing so, drive an important national conversation.”
    Blackfella Films Producer, Darren Dale said: “2.6 Seconds will vividly examine, in four one-hour episodes, the circumstances surrounding a black teenager’s death at the hands of a white police officer in a place far removed from our sense of our Australia, A place where young men are lost and almost forgotten and where to some ‘there are no rules’. This story will reveal the justice system where racism must be interrogated. It will shock, anger and break our hearts yet again. It will reveal to us who we still are as a nation.”
    Head of Screen NSW Kyas Hepworth said, “Darren Dale and the team at Blackfella Films are renowned for bringing bold, ambitious and complex stories to screen, highlighting many important and nuanced First Nations stories in our country. I anticipate this detailed series will spark many important conversations across the nation and will be another watershed project from Blackfella Films.”
    Premiering on SBS, NITV and SBS On Demand in 2025, the four-part series from leading Australian production company Blackfella Films is written and produced by Darren Dale (The Australian Wars, Meet the Neighbours) with Jacob Hickey (The Australian Wars, Addicted Australia) as series producer.
    Production credit: 2.6 Seconds is a co-commission between SBS and NITV with the production of Blackfella Films. Major production investment from Screen Australia’s First Nations Department in association with SBS. Financed with support from Screen NSW. Produced in association with All3Media International.
    SBS/NITV Media Enquiries
    Nikita Jacka | 0425 171 192 | [email protected]
    Media enquiries
    Maddie Walsh | Publicist
    + 61 2 8113 5915  | [email protected]
    Jessica Parry | Senior Publicist (Mon, Tue, Thu)
    + 61 428 767 836  | [email protected]
    All other general/non-media enquiries
    Sydney + 61 2 8113 5800  |  Melbourne + 61 3 8682 1900 | [email protected]

    MIL OSI News –

    January 25, 2025
  • MIL-Evening Report: Trust matters but we also need these 3 things to boost vaccine coverage

    Source: The Conversation (Au and NZ) – By Holly Seale, Associate Professor, School of Population Health, UNSW Sydney

    Julien Jean Zayatz/Shutterstock

    Australia’s COVID vaccine roll-out started slowly, with supply shortages and logistical shortcomings. Once it got going, we immunised more than 95% of the population.

    This week’s COVID inquiry report contains a number of recommendations to improve Australia’s vaccine preparedness the next time we face a pandemic or health emergency.

    While the inquiry gets most things right, as vaccine experts, we argue the government response should be broadened in three areas:

    • expanding compensation programs for people who suffer any type of vaccine injury
    • better understanding why people aren’t up-to-date with their vaccinations
    • equipping community helpers in marginalised communities to deliver information about vaccines and combat misinformation.

    Australians should be compensated after vaccine injuries – not just during pandemics

    The inquiry recommends reviewing Australia’s COVID vaccine claims scheme in the next 12 to 18 months, to inform future schemes in national health emergencies.

    Early in the pandemic, vaccine experts called on the Australian government to establish a COVID vaccine injury compensation scheme.

    This meant people who were injured after suffering a rare but serious injury, or the families of those who died, would receive compensation when there had been no fault in the manufacturing or administration of the vaccine.

    Vaccine experts recommended the creation of such a scheme based on the principle of reciprocity. The Australian public was asked to accept the recommended COVID vaccines in good faith for their health benefit and the benefit of the community. So they should be compensated if something went wrong.

    In 2021, the Australian government announced the COVID-19 Vaccine Claims Scheme. Australia had no such scheme before this, in stark contrast to 25 other countries including the United States, United Kingdom and New Zealand.

    Australia’s scheme closed on September 30 2024.

    The inquiry report recommends reviewing:

    • the complexity of the claims process
    • delayed or denied payments
    • any links between the scheme and vaccine hesitancy.

    However, this is currently framed only within the scope of the scheme being used for future epidemic or pandemic responses.

    Instead, we need a permanent, ongoing vaccine compensation scheme for all routine vaccines available on the National Immunisation Program.

    As we’ve learnt from similar schemes in other countries, this would contribute to the trust and confidence needed to improve the uptake of vaccines currently on the program, and new ones added in the future. It is also right and fair to look after those injured by vaccines in rare instances.

    Not getting vaccinated isn’t just about a lack of trust

    The COVID inquiry recommends developing a national strategy to rebuild community trust in vaccines and improve vaccination rates, including childhood (non-COVID) vaccine rates, which are currently declining.

    The COVID vaccine program has affected trust in routine vaccines. Childhood vaccine coverage has declined 1–2%. And there is a persistent issue around timeliness – kids not getting their vaccines within 30 days of the recommended time point.

    The national Vaxinsights project examined the social and behavioural drivers of under-vaccination among parents of children under five years. It found access issues were the main barriers to partially vaccinated children. Cost, difficulty making an appointment and the ability to prioritise appointments due to other conflicting needs were other barriers. Trust was not a major barrier for this group.

    However for unvaccinated children, vaccine safety and effectiveness concerns, and trust in information from the health-care provider, were the leading issues, rather than access barriers.

    To improve childhood vaccination rates, governments need to monitor the social and behavioural drivers of vaccination over time to track changes in vaccine acceptance. They also need to address barriers to accessing immunisation services, including affordability and clinic opening hours.

    It is also imperative we learn from the lessons during COVID and better engage communities and priority populations, such as First Nations communities, people with disabilities and those from different cultural groups, to build trust and improve access through community drop-in and outreach vaccine programs.

    To address the decline in adult COVID vaccination we need to focus on perceptions of need, risk and value, rather than just focusing on trust. If adults don’t think they are at risk, they won’t get the vaccine. Unfortunately, when it comes to COVID, people have moved on and few people believe they need boosters.

    Variant changes or enhancements to the vaccine (such as combined vaccines to protect against COVID and flu, or RSV or vaccines with long last protection) may encourage people to get vaccinated in the future. In the meantime, we agree with the inquiry that we should focus on those most at risk of severe outcomes, including residents in aged care and those with chronic health conditions.

    Invest in community-led strategies to improve uptake

    The COVID inquiry recommends developing a communication strategy for health emergencies to ensure all Australians, including those in priority populations, families and industries, have the information they need.

    While these are not strictly focused on the promotion of vaccination, the suggestions – including the need to work closely with and fund community and representative organisations – are aligned with what our COVID research showed.

    However, the government should go one step further. Communication about vaccines must be tailored, translated for different cultural groups, and easy to understand.

    In some settings, messages about the vaccines will have the most impact if they come from a health-care worker. But this is not always the case. Some people prefer to hear from trusted voices from their own communities. In First Nations communities, these roles are often combined in the form of Aboriginal Health Workers.

    We must support these voices in future health emergencies.

    During COVID, there was insufficient support and training for community helpers – such as community leaders, faith leaders, bilingual community workers, and other trusted voices – to support their vaccine communication efforts.

    The government should consider implementing a national training program to support those tasked (or volunteering) to pass on information about vaccines during health emergencies. This would provide them with the information and confidence they need to undertake this role, as well as equipping them to address misinformation.

    Holly Seale is an investigator on research studies funded by NHMRC and has previously received funding from NSW Ministry of Health, as well as from Sanofi Pasteur, Moderna and Pfizer for investigator driven research and consulting fees.

    Julie Leask receives a fellowship from the National Health and Medical Research Council and research funding from the World Health Organization. She received reimbursement for overseas travel costs from Sanofi in April 2024.

    Margie Danchin receives funding from the Victorian and Commonwealth governments, NHMRC/MRFF and DFAT.

    – ref. Trust matters but we also need these 3 things to boost vaccine coverage – https://theconversation.com/trust-matters-but-we-also-need-these-3-things-to-boost-vaccine-coverage-242487

    MIL OSI Analysis – EveningReport.nz –

    January 25, 2025
  • MIL-OSI: Fanhua Announces Change of Name to AIX Inc. and the Results of its Extraordinary General Meeting

    Source: GlobeNewswire (MIL-OSI)

    GUANGZHOU, China, Oct. 31, 2024 (GLOBE NEWSWIRE) — Fanhua Inc. (Nasdaq: AIFU) (the “Company” or “Fanhua”), a leading independent technology-driven financial services provider in China, today announced the results of its extraordinary general meeting of shareholders held in Guangzhou on October 31, 2024 at 9:00am Beijing Time.

    At the extraordinary general meeting, each of the following resolutions submitted for shareholder approval was adopted, and after the adoption of the proposed resolutions, all corporate authorizations and actions contemplated thereunder were approved:

    (i) THAT the Company’s English name be changed from “Fanhua Inc.” to “AIX Inc.” and dual foreign (Chinese) name be changed from “泛华控股集团” to “智能未来有限公司”, respectively,

    (ii) THAT the authorized share capital of the Company, which is currently US$10,000,000 divided into 10,000,000,000 ordinary shares of a nominal or par value of US$0.001 each, and the rights attaching to the issued shares of the Company, be varied and amended as follows (the “Re-Designation and Variation of Rights”):

    (a) by the re-designation of 8,000,000,000 authorized ordinary shares (including all ordinary shares which are currently issued and outstanding) as Class A Ordinary Shares; and
    (b) by the re-designation of 2,000,000,000 authorized ordinary shares (none of which are currently issued and outstanding) as Class B Ordinary Shares,

    and that, in each case, the rights attaching to such shares shall be varied so that they shall have the rights, preferences, privileges and restrictions attaching thereto as set out in the Amended and Restated Memorandum and Articles of Association (as defined below),

    such that, after and as a consequence of the Re-Designation and Variation of Rights, the authorized share capital will be US$10,000,000 divided into (i) 8,000,000,000 Class A Ordinary Shares of a nominal or par value of US$0.001 each and (ii) 2,000,000,000 Class B Ordinary Shares of a nominal or par value of US$0.001 each, having the rights, preferences, privileges and restrictions attaching thereto as set out in the Amended and Restated Memorandum and Articles of Association (as defined below).

     

    (iii) THAT, concurrently with the Re-Designation and Variation of Rights and conditional upon approval of the same, the memorandum and articles of association of the Company currently in effect be amended and restated by their deletion in their entirety and the substitution in their place of the Amended and Restated Memorandum and Articles of Association in the form annexed as Exhibit A to the notice of the extraordinary general meeting (the “Amended and Restated Memorandum and Articles of Association”).

    After the Re-Designation and Variation of Rights, each holder of the Company’s Class A Ordinary Share is entitled to one vote per share, and each holder of the Company’s Class B Ordinary Share is entitled to 100 votes per share on all matters submitted to them for a vote.

    The change of name will take effect on or around November 1, 2024. It better reflects the strategic focus of the Company, which is to become a globally leading technology-driven financial service platform dedicated to empowering financial advisors and fostering sustained value creation for our customers.

    The Company’s ISIN and CUSIP codes will remain unchanged. Shareholders are not required to take any specific action regarding the above changes.

    In connection with changes to the new Company name and the new ticker symbol, the Company will be transitioning to a new domain for its website and corporate email.

    New website addresses:

    Official website (Chinese version): https://www.aifugroup.com

    Official website (English version): https://en.aifugroup.com

    Investor relations website (Chinese version): https://www.aifugroup.com/investor_relations.htm;

    Investor relations website (English version): https://ir.aifugroup.com

    All company email addresses will follow the format of name@aifugroup.com.

    The Company’s new websites will launch on November 1, 2024 concurrently with the transition to the new email domain. In order to ensure a smooth transition, our old domain will be automatically redirected to our new one for a period of time.

    About Fanhua Inc.

    Driven by its digital technologies and professional expertise in the insurance industry, Fanhua Inc. is the leading independent financial service provider in China, focusing on providing insurance-oriented family asset allocation services that covers customers’ full lifecycle and a one-stop service platform for individual sales agents and independent insurance intermediaries.

    With strategic focus on long-term life insurance products, we offer a broad range of insurance products, claims adjusting services and various value-added services to meet customers’ diverse needs, through an extensive network of digitally empowered sales agents and professional claims adjustors. We also operate Baowang (www.baoxian.com), an online insurance platform that provides customers with a one-stop insurance shopping experience.

    For more information about Fanhua Inc., please visit https://ir.fanhgroup.com

    Forward-looking Statements

    This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company’s future financial and operating results, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will”, “expects”, “believes”, “anticipates”, “intends”, “estimates” and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Fanhua and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its ability to attract and retain productive agents, especially entrepreneurial agents, its ability to maintain existing and develop new business relationships with insurance companies, its ability to execute its growth strategy, its ability to adapt to the evolving regulatory environment in the Chinese insurance industry, its ability to compete effectively against its competitors, quarterly variations in its operating results caused by factors beyond its control including macroeconomic conditions in China. Except as otherwise indicated, all information provided in this press release speaks as of the date hereof, and Fanhua undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Fanhua believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Fanhua is included in Fanhua’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

    For more information, please contact:

    Fanhua Inc.

    Investor Relations
    Tel: +86 (20) 8388-3191
    Email: ir@fanhgroup.com

    The MIL Network –

    January 25, 2025
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