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  • MIL-OSI Global: U.S. tariff threat: How it will impact different products and industries

    Source: The Conversation – Canada – By Sylvanus Kwaku Afesorgbor, Associate Professor of Agri-Food Trade and Policy, University of Guelph

    U.S. President Donald Trump has agreed to pause his planned tariffs on Canada and Mexico for at least 30 days following talks with the leaders of both countries. Previously, a senior Canadian governmental official had said Trump’s 25 per cent tariff on most Canadian goods was expected to come into effect on Feb. 4.

    If implemented, this tariff will have significant economic consequences on both sides of the border, as the U.S. and Canada share one of the largest bilateral trade relationships in the world.

    A key concern is the highly integrated supply chains between the two countries. Many goods cross the border multiple times as intermediate inputs before becoming final products. Imposing tariffs at any point in this supply chain will raise production costs and increase prices for a wide range of goods traded between the U.S. and Canada.

    For Canada, the tariffs on Canadian products will significantly affect Canada’s competitiveness in the U.S. market by driving up prices. Such tariffs could pose serious challenges for various sectors in Canada, given the country’s heavy reliance on the U.S. economy.

    Effects on different sectors

    The impact of U.S. tariffs on Canadian prices is likely to differ across sectors and products, depending on their reliance on the U.S. market.

    Sectors with a higher dependence on U.S. trade are likely to experience more severe disruptions. If the tariffs make certain products uncompetitive, Canadian producers may struggle to secure alternative markets in the short term.

    Industries such as agriculture, manufacturing and energy will experience varying degrees of impact. Energy products and motor vehicles, which represent Canada’s largest exports to the U.S., are expected to be among the most adversely affected.

    In the agricultural and forestry sector, wood and paper products, along with cereals, are among Canada’s largest exports to the U.S., with the U.S. accounting for 86 to 96 per cent of these exports, according to data from the World Integrated Trade Solution.

    In the energy and mineral sector, crude oil is Canada’s top export, reaching US$143 billion in 2023, with 90 per cent destined for the U.S. Given its critical role as Canada’s largest export across all sectors, it is not surprising that Trump has noted crude oil would be subject to a lower tariff of 10 per cent.

    Canada’s dependence on U.S. trade

    When examining the impact on different products, it’s not only the value of trade that matters, but also the share of trade. The share of trade indicates how reliant Canada is on the U.S. compared to other markets.

    A high trade share with the U.S. suggests a product is particularly vulnerable to trade disruptions, as Canada depends heavily on the U.S. market for that product. Conversely, a lower share indicates that Canada has diversified suppliers, which reduces its dependence on the U.S.



    Read more:
    Trump’s tariff threat could shake North American trade relations and upend agri-food trade

    For instance, in 2023, Canada’s top exports to the U.S. included vehicles and parts, nuclear machinery and plastics, according to data from the World Integrated Trade Solution. The U.S. accounted for 93 per cent of vehicle and parts exports, 82 per cent of nuclear machinery exports, and 91 per cent of plastics exports.

    This data highlights Canada’s extreme dependence on the U.S. market, making these industries within the manufacturing sector highly susceptible to the tariff. This could harm jobs in the manufacturing sector, which is vital to employment in Canada, providing jobs for over 1.8 million people.

    Canada’s reliance on the U.S. is also evident in imports. In 2023, vehicle imports totalled US$92 billion, with the U.S. accounting for 58 per cent of that amount.

    The dependence is also evident in the agri-food and forestry sector, where Canada heavily relies on U.S. imports. This suggests that retaliatory tariffs on agricultural goods from the U.S. could have a substantial impact on food prices in Canada.

    Retaliatory tariffs and inflationary pressures

    Canada has announced it’s imposing $155 billion of retaliatory tariffs on U.S. imports in response. This could contribute to inflationary pressures within Canada.

    Prime Minister Justin Trudeau says this includes immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 days’ time to “allow Canadian companies and supply chains to seek to find alternatives.”

    This will include tariffs on “everyday items such as American beer, wine and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing and shoes,” and also on major consumer products like household appliances, furniture and sports equipment, and materials like lumber and plastics.

    Given Canada’s significant dependence on U.S. imports, the retaliatory tariffs will raise the cost of American goods entering the country, further driving up consumer prices and exacerbating inflation.

    In its latest policy rate announcement, the Bank of Canada warned of the severe economic consequences of Trump’s tariffs, highlighting their potential to reverse the current downward trend in inflation.

    What should Canada do now?

    Canada must extend its economic diplomacy efforts beyond the Trump administration, engaging with the U.S. Congress and Senate to advocate for the reconsideration of tariffs on Canadian goods. The Canadian government should persist in leveraging this channel to push for a reversal of the tariffs. This kind of broader negotiation remains the most effective approach to mitigating trade tensions and ensuring stable economic relations with the U.S.

    At the same time, Canada must reduce dependence on the U.S. market by adopting a comprehensive export diversification strategy. While the U.S. remains a convenient and accessible trade partner, expanding into emerging and developing markets would help mitigate risks and create more stable long-term trade opportunities.



    Read more:
    Trump’s tariff threat is a sign that Canada should be diversifying beyond the U.S.

    One effective way to achieve export diversification is by expanding free trade agreements (FTAs) with emerging and developing economies. Currently, Canada has 15 FTAs covering about 51 countries, but there is room for expansion. However, signing FTAs alone is insufficient; Canada must ensure these agreements translate into tangible trade growth with partner countries.

    International politics is increasingly shaping global trade, making it imperative for Canada to proactively manage diplomatic and trade relations. In recent years, tensions have emerged with key partners such as China, India and Saudi Arabia. These countries could all become potential markets for Canadian products. Given that China is Canada’s second-largest export destination, there is significant potential to expand trade ties.

    Additionally, countries like the United Arab Emirates present promising markets, particularly for agricultural products, as the UAE imports about 90 per cent of its food.

    Boosting innovation and productivity

    Canada stands at a critical juncture in its trade relationship with the U.S. While diplomatic efforts remain essential to averting harmful tariffs, they cannot be the country’s only line of defence.

    Boosting productivity is one of the most effective ways for Canada to improve its competitiveness in global markets. Canadian producers should prioritize innovation and the adoption of advanced technologies to enhance efficiency and maintain a competitive edge, particularly as they seek to expand beyond the U.S.

    In response to potential U.S. tariffs, the Canadian government should implement a bailout strategy to provide short-term relief and mitigate revenue losses to firms that will be mostly affected. Additionally, Canada should leverage its embassies and consulates worldwide to promote exports and help affected firms identify and access new market opportunities.

    By doing this, Canada can position itself as a more self-reliant and competitive player in the global economy — one less vulnerable to shifting U.S. policies.

    Sylvanus Kwaku Afesorgbor receives funding from the OMAFRA and the USDA. He is affiliated with the Centre for Trade Analysis and Development (CeTAD Africa).

    Naduni Uduwe Welage and Promesse Essolema do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. U.S. tariff threat: How it will impact different products and industries – https://theconversation.com/u-s-tariff-threat-how-it-will-impact-different-products-and-industries-248824

    MIL OSI – Global Reports –

  • MIL-OSI Global: Trump’s tariff threats show the brute power of an imperial presidency

    Source: The Conversation – Canada – By Daniel Drache, Professor Emeritus, Department of Politics, York University, Canada

    United States President Donald Trump has agreed to delay punishing tariffs on all exports from Canada and Mexico, which resulted in a threat of retaliatory tariffs from Canada.

    Nonetheless, Canada’s closest ally is all but tearing up the Canada-U.S.-Mexico trade deal negotiated only seven years ago. The rationale behind what the Wall Street Journal editorial board has called “the dumbest trade war in history” isn’t even clear.

    The pessimistic view is that if Canada doesn’t give Trump everything he wants, he will bulldoze the country with more tariffs, sanctions on banks, enhanced border inspections and even a travel ban — everything he recently threatened to do to Colombia.

    Canada’s political class is scrambling because the U.S. has long been a cultural sibling and an economic partner. But now it is toxic, threatening and untrustworthy. Will Canada sign another trade deal with Trump in office? The chances recede the longer the tariffs remain in place.

    Iron-fisted

    It’s never been more clear that Trump is obsessive, seldom a bluffer and always iron-fisted. He seems to have planned and executed this tariff bomb to cause maximum pain and chaos. Now he says the European Union is next on his list.

    Trump is counting on his new majorities in U.S. Congress to ram through his radical right populist agenda, forcing other countries to play a role in his melodrama.

    In response to Trump’s charge that the U.S. subsidizes Canadian trade, former Conservative prime minister Stephen Harper pointed out that half of America’s imported oil comes from Canada, and its price is significantly discounted due to a lack of pipeline capacity. “It’s actually Canada that subsidizes the United States in this regard,” Harper said.

    Nevertheless, Trump’s preferred foreign policy tactic is to hit first with economic sanctions and negotiate later. With his near total grip on U.S. government, he can now achieve all his aims through tariffs.



    Read more:
    U.S. tariff threat: How it will impact different products and industries

    The imperial presidency

    Trump’s vision for his imperial presidency is organized around an old idea: the revenue tariff. Before income taxes, border tariffs were the primary source of income for government. But back then, government did a lot less.

    For example, America’s 19th-century navy of wooden sailing ships was purchased with tariffs. But it would be impossible to fund modern-day health care, student loans and $13 billion aircraft carriers with tariff revenues.

    A recent study by the Peterson Institute for International Economics shows the math doesn’t add up. Tariffs are levied on imported goods and are worth about US$3 trillion. American income tax is levied on incomes and are worth more than US$20 trillion. Government would have to be much smaller, and tariffs would have to be so high they would choke American trade, for tariffs to make economic sense.

    And yet Trump has a broad mandate. In the summer of 2024, the U.S. Supreme Court ruled in Trump v. United States that presidents require a broadly defined “presumptive immunity from prosecution for … official acts.”

    This decision has given Trump the legal clout to force the entire federal government to answer to the president himself.



    Read more:
    US Supreme Court immunity ruling ideal for a president who doesn’t care about democracy

    War against democracy

    Trump is using his vast new mandate to wage multiple wars simultaneously. These wars against the guardrails of liberal democracy require the punishment of his enemies inside his own party.



    Read more:
    Canada should be preparing for the end of American democracy

    Republicans who have voted against Trump legislation during his first term faced high-profile challenges in the primaries as he funded their opponents. Today, the war is waged against those who are insufficiently loyal, including the highest ranks of the Coast Guard and the FBI.

    The war against the administrative state involves the mass firing of independent inspectors, federal lawyers and thousands of civil servants to be replaced by foot soldiers personally loyal to the leader.

    The Trump administration has sent out “deferred resignation” notices that invite the entire civil service to resign. This is the tactic Trump’s key adviser, Elon Musk, implemented at X, and it suggests a wave of firings will soon begin.

    Nonsensical trade war

    The trade war against Canada and Mexico is peculiar because neither country has expressed any willingness to abolish the United States-Mexico-Canada Agreement, which is among the achievements of Trump’s first administration.

    Nevertheless, the paranoid Trump seems to be convinced that he got a raw deal in 2018, and so he wants to scrap the whole treaty and negotiate something tougher that brings more jobs home.

    In 2024, the cars that were ranked most “American” in terms of their content and final assembly were made by Tesla, Honda and Volkswagen. By comparison, the best-selling the Dodge Ram 1500 pickup truck ranked No. 43 on the list. What Trump considers American and non-American isn’t clear, even to voters.

    A new Bank of Canada forecast predicts that American tariffs may reduce Canadian GDP by six per cent. The federal government is planning an enormous bailout package to compensate for widespread job losses like the one offered to businesses and individuals during the pandemic.

    Unsurprisingly, Trump divides Canada’s leadership. Alberta and Saskatchewan have publicly criticized the Team Canada approach. Alberta Premier Danielle Smith refused to sign the joint federal/provincial statement and played to her secessionist base.



    Read more:
    Why Alberta’s Danielle Smith is rejecting the Team Canada approach to Trump’s tariff threats

    Even so, former Alberta premier Jason Kenney recognizes the peril, arguing that Alberta needs to “be prepared to retaliate … we can’t be wusses about this; we have to have a spine.”

    What’s next?

    Canada is an export-led economy based on natural resources. Its strength lies not in refusing to buy California wine or Florida orange juice. Its main sources of leverage are oil and gas, potash and uranium, rare earth minerals, timber products and hydroelectric power. But of all these, oil, uranium, and hydro-electric power are Canada’s biggest guns.

    It’s not yet clear how effective the Canadian government’s strategy will be. Previous rounds of retaliation after the steel and aluminum tariffs in Trump’s first term did not drive him to the negotiating table. It’s also unclear what the CEOs of Canada’s branch-plant multinational corporations will do when their loyalties are divided between Trump and Canada.

    Furthermore, it’s anyone’s guess how much the dissent of western Canadian premiers has hurt Canada’s case with Trump. Certainly, his preferred tactic is to divide and conquer.

    Finally, it’s unclear if Ontario Premier Doug Ford’s “Captain Canada” approach will earn the respect or disdain of Republicans — although, ultimately, it doesn’t matter what the rest of the American political class thinks because Trump and his inner circle are calling all the shots.

    In practical terms, there is little Canada can do to address the false accusations that it’s complicit in the illicit drug trade and in migrants crossing the border into the U.S. Facts don’t matter to Trump. He will eventually come up with a demand, and if Canada doesn’t give in, he will ramp up the economic pain.

    Welcome to the post-liberal world order.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Trump’s tariff threats show the brute power of an imperial presidency – https://theconversation.com/trumps-tariff-threats-show-the-brute-power-of-an-imperial-presidency-247524

    MIL OSI – Global Reports –

  • MIL-OSI USA: Grassley, Durbin Announce Senate Judiciary Subcommittee Assignments for the 119th Congress

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    WASHINGTON – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Ranking Member Dick Durbin (D-Ill.) today announced the establishment, leadership and membership of Senate Judiciary Subcommittees for the 119th Congress.

    “The Senate Judiciary Committee’s broad jurisdiction tasks us with important responsibilities, such as safeguarding Americans and our border, empowering consumers, pursuing justice against criminal offenders, vetting nominees to the federal judiciary and upholding the founding principles of our Constitution,” Grassley said. “Our work impacts nearly every aspect of Americans’ daily life. We have a strong roster of committee members, and I look forward to delivering for the American people this Congress.”

    “The Senate Judiciary Committee is arguably the workhorse of Senate committees. The list of historic hearings held before it is long and filled with memorable testimony,” Durbin said. “These are consequential times, but we have a talented group of Democratic members, and I look forward to them leading the national debate on the critical issues we face.”

    Subcommittee on Antitrust, Competition Policy and Consumer Rights

    Sen. Mike Lee (R-Utah), Chair             Sen. Cory Booker (D-N.J.), Ranking Member

    Sen. Josh Hawley (R-Mo.)                       Sen. Amy Klobuchar (D-Minn.)

    Sen. Thom Tillis (R-N.C.)                       Sen. Richard Blumenthal (D-Conn.)

    Sen. Kate Britt (R-Ala.)                           Sen. Peter Welch (D-Vt.)

    Sen. Ashley Moody (R-Fla.)                    Sen. Adam Schiff (D-Calif.)

    Sen. Eric Schmitt (R-Mo.)

    Subcommittee on Border Security and Immigration

    Sen. John Cornyn (R-Texas), Chair    Sen. Alex Padilla (D-Calif.), Ranking Member

    Sen. Lindsey Graham (R-S.C.)               Sen. Sheldon Whitehouse (D-R.I.)

    Sen. Ted Cruz (R-Texas)                        Sen. Amy Klobuchar (D-Minn.)

    Sen. Thom Tillis (R-N.C.)                      Sen. Chris Coons (D-Del.)

    Sen. John Kennedy (R-La.)                    Sen. Mazie Hirono (D-Hawaii)

    Sen. Kate Britt (R-Ala.)                          Sen. Cory Booker (D-N.J.)

    Sen. Ashley Moody (R-Fla.)

    Subcommittee on the Constitution

    Sen. Eric Schmitt (R-Mo), Chair        Sen. Peter Welch (D-Vt.), Ranking Member

    Sen. John Cornyn (R-Texas)                  Sen. Sheldon Whitehouse (D-R.I.)

    Sen. Mike Lee (R-Utah)                         Sen. Mazie Hirono (D-Hawaii)

    Sen. Ted Cruz (R-Texas)                        Sen. Cory Booker (D-N.J.)

    Sen. Josh Hawley (R-Mo.)                      Sen. Alex Padilla (D-Calif.)

    Sen. John Kennedy (R-La.)                     Sen. Adam Schiff (D-Calif.)

    Sen. Marsha Blackburn (R-Tenn.)         

    Subcommittee on Crime and Counterterrorism

    Sen. Josh Hawley (R-Mo.), Chair       Sen. Dick Durbin (D-Ill.), Ranking Member

    Sen. Lindsey Graham (R-S.C.)              Sen. Amy Klobuchar (D-Minn.)

    Sen. John Cornyn (R-Texas)                  Sen. Chris Coons (D-Del.)

    Sen. Ted Cruz (R-Texas)                       Sen. Richard Blumenthal (D-Conn.)

    Sen. Marsha Blackburn (R-Tenn.)         Sen. Cory Booker (D-N.J.)

    Sen. Kate Britt (R-Ala.)

    Subcommittee on Federal Courts, Oversight, Agency Action and Federal Rights

    Sen. Ted Cruz (R-Texas), Chair          Sen. Sheldon Whitehouse (D-R.I.), Ranking Member

    Sen. Lindsey Graham (R-S.C.)               Sen. Richard Blumenthal (D-Conn.)

    Sen. Mike Lee (R-Utah)                         Sen. Mazie Hirono (D-Hawaii)

    Sen. Thom Tillis (R-N.C.)                      Sen. Alex Padilla (D-Calif.)

    Sen. John Kennedy (R-La.)                    Sen. Peter Welch (D-Vt.)

    Sen. Eric Schmitt (R-Mo.)

    Subcommittee on Intellectual Property

    Sen. Thom Tillis (R-N.C.), Chair         Sen. Adam Schiff (D-Calif.), Ranking Member

    Sen. Mike Lee (R-Utah)                          Sen. Sheldon Whitehouse (D-R.I.)

    Sen. Marsha Blackburn (R-Tenn.)          Sen. Chris Coons (D-Del.)

    Sen. Eric Schmitt (R-Mo.)                      Sen. Mazie Hirono (D-Hawaii)

    Sen. Kate Britt (R-Ala.)                           Sen. Peter Welch (D-Vt.)

    Sen. Ashley Moody (R-Fla.)

    Subcommittee on Privacy, Technology and the Law

    Sen. Marsha Blackburn (R-Tenn.), Chair Sen. Amy Klobuchar (D-Minn.), Ranking Member

    Sen. Lindsey Graham (R-S.C.)                 Sen. Chris Coons (D-Del.)

    Sen. John Cornyn (R-Texas)                    Sen. Richard Blumenthal (D-Conn.)

    Sen. Josh Hawley (R-Mo.)                       Sen. Alex Padilla (D-Calif.)

    Sen. John Kennedy (R-La.)                      Sen. Adam Schiff (D-Calif.)

    Sen. Ashley Moody (R-Fla.)

    -30-

    MIL OSI USA News –

  • MIL-OSI USA: Tuberville Honors Stephen Woodfin of Harvest as February “Veteran of the Month”

    US Senate News:

    Source: United States Senator Tommy Tuberville (Alabama)

    WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) released a video honoring Navy Second Class Officer Stephen Woodfin as the February “Veteran of the Month.”

    Excerpts from Sen. Tuberville’s remarks can be found below, and his complete remarks can be found here.

    “America’s military is the greatest in the world because of men and women who take pride in their role to keep us safe. No one demonstrates this better than Petty Officer First Class Stephen Woodfin of Harvest, Alabama.

    After being drafted into the Navy in 1968, Stephen found himself far from his small-town Alabama farm at basic training in Nashville and San Diego. He describes this journey from the farm to the Navy as ‘a country boy in hog heaven.’ After basic training, he was shipped out to the South Pacific to serve his country for the next four years in the Vietnam War. Like many Vietnam veterans, Stephen saw firsthand the horrors of war.

    Yet, Stephen is still proud to say he served in the military and says his time in combat led him to meet some of the finest people he ever met. Shortly before returning home in 1972, Stephen met his wife, whom he describes as the best thing that ever happened to him. After their return back to the states, Stephen took on several different roles—including husband, father, postal serviceman, teacher, and many more.”

    Senator Tuberville recognizes a different Alabama veteran each month for their service and contribution to their community. Constituents can nominate an Alabama veteran and submit their information to Senator Tuberville’s office for consideration by emailing press_office@tuberville.senate.gov. 

    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI New Zealand: Pocket art guide updated with 10 new artworks showcasing toi Māori in Tāmaki Makaurau

    Source: Auckland Council

    The vibrant cityscape of Tāmaki Makaurau has seen a rise in the presence of Māori design and art in its urban environment in recent years, a result of the ongoing efforts by the Auckland Council group to ensure the stories and identity of mana whenua are visibly reflected and felt in the city centre.  

    This exciting shift is being celebrated through the unveiling of ten new artworks on the pages of ‘Te Paparahi Toi Māori’ the Auckland Art Walk guide, which brings Māori culture and history to life in the city’s public spaces for Aucklanders and tourists to explore. 

    For the online walking guide of Te Paparahi Toi Māori, visit ArtNow.  

    “This growing collection of Māori art serves as a reminder of the rich cultural history that underpins our city,” says Councillor Kerrin Leoni. 

    “I encourage Aucklanders and visitors to explore these meaningful creative expressions in the city’s urban landscape and to reflect on the importance of te ao Māori in shaping modern Tāmaki Makaurau.” 

    Here are 10 of the new must-see toi Māori (Māori artworks) in Auckland’s city centre, recently added to ‘Te Paparahi Toi Māori’: 

    Waimaraha, Myers Park, Auckland – photo David St George.

    1. Waimahara, 2024 – A Captivating Display of Light and Sound

    Waimahara, an extraordinary interactive new Māori artwork in Myers Park, springs to life with mesmerising light and sound displays in response to special waiata. 

    If you sing a special waiata into a sensor, the artwork listens and responds, accompanying you with an awe-inspiring display of light and sound. 

    Commissioned by Auckland Council, this unique creation by artist Graham Tipene (Ngāti Whātua, Ngāti Kahu, Ngāti Hine, Ngāti Hāua, Ngāti Manu), technology experts IION, and skilled composers features two original waiata for the project.  

    To visit Waimahara and other art works close by, click here .

    Te Kōmititanga, Queen Street, Auckland.

    2. Te Kōmititanga, 2020 – The Merging of Waters and People

    Located in the city’s largest public square, Te Kōmititanga, meaning ‘to mix’ or ‘to merge’ was gifted by local hapū Ngāti Whātua Ōrākei as a powerful symbol of the convergence of people and waters. Situated where the Waitematā Harbour and Te Waihorotiu (The Waihorotiu Stream) once met, this bustling public space boasts 137,000 basalt pavers woven in a harakeke (flax) mat pattern, entwining pedestrians by train, bus, and ferry into the cultural and environmental heritage of the area. 

    To visit Te Kōmititanga and other art works close by, click here. 

    Te Wharekura, Quay Street, Auckland.

    3. Te Wharekura, 2023 – A Treasure Box of Ngāti Whātua Ōrākei

    The 108-year-old heritage kiosk next to the Tāmaki Makaurau downtown ferry terminal has been repurposed into a cultural and marine education space to create a new destination on the increasingly beautiful waterfront.  

    Te Wharekura (house of learning) is a waka huia (treasure box) for local hapū, Ngāti Whātua Ōrākei, offering a fusion of physical and digital taonga toi (artworks) and a rich collection of mana whenua histories and culture. Visitors can explore the environmental challenges of the Waitematā through interactive displays and engage with hapū members onsite who guide the learning experience. 

    To visit Te Wharekura and other art works close by, click here .

    Te Tōangaroa, Tangihua Street to Tapora Lane, Auckland.

    4. Te Tōangaroa Mural Collection, 2021-2024 – Telling Stories of Place

    This captivating mural collection celebrates the deep connection of Ngāti Whātua Ōrākei to te taiao (the environment) of Tāmaki and depicts the importance of welcoming different cultures and diversity. Each of the six powerful murals are imbued with symbolism—from the dragging and mooring of ancestral waka, to the star constellations and tohu (signs) of te taiao in guiding the kaiurungi (steerer) on the waka journey into the future, to resilient wildlife like the kawau bird—reminding all who view it of the unwavering whakapapa (genealogy) and wairua (spirit) from the Māori ancestors to their descendants today.  

    To visit Te Tōangaroa Mural Collection and other art works close by, click here 

    5. Te Nukuao, 2020 – A Shelter of Both Passage and Pause

    Located in Wynyard Quarter, Te Nukuao (shelter), draws inspiration from the last remaining customary Māori sail, Te Rā, to reference the journeys, waka and people from past and present connected to this area. This award-winning shading structure, which recalls the double-hulled waka hourua, serves as both a cultural marker of the mana (authority) of tangata whenua over Tāmaki Makaurau, and as a shelter of welcome for all.  

    Designed by artist Tessa Harris (Ngāi Tai ki Tāmaki), this artwork connects Aucklanders to the city’s rich ancestral maritime history.  

    To visit Te Nukuao and other art works close by, click here.  

    Papatūānuku, Halsey Street & Tīramarama Way, Auckland.

    6. Papatūānuku, 2021 – Celebrating the Earth Mother

    Papatūānuku (Mother Earth), a vibrant contemporary-art glass installation, reflects the ever-changing colours of the seasons as guided by the Maramataka (Māori lunar calendar). The glass poi of the artwork represents spiritual messengers, while the vibrant wall colour reflects the energy of Tama-nui-te-rā (the sun) and the ahikāroa (long-burning fires) of artist Mei Hill’s hapū, Ngāti Whātua Ōrākei, in extending manaakitanga (generosity) to all people in Tāmaki Makaurau. The work celebrates the natural world while honouring the whakapapa of mana whenua. 

    To visit Papatūanuku and other art works close by, click here.  

    Te Maharatanga o Ngā Wai, Wellesley Street West & Sale Street, Auckland.

    7. Te Maharatanga o Ngā Wai, 2021 – A Tribute to Māui and the Waters

    Te Maharatanga o Ngā Wai (remembering our waters) is a homage to the stream that once flowed through this site before the colonial settlement of Auckland. This 6.4-metre carved pou (post) commemorates the Māori demigod Māui, whose stories are central to Māori narratives.  

    The sculpture, featuring three key tales of Māui, not only serves as a pou recognising wai as taonga (treasure), the source of life, and vital for our collective wellbeing, but also as a focal point for pōhiri (ceremonial welcomes) and other official theatre events, reflecting Māori cosmology, language and history in the public realm. 

    To visit Te Maharatanga o Ngā Wai (remembering our waters) and other art works close by, click here 

    Whakaako Kia Whakaora, Corner Gundry Street & Karangahape Road, Auckland.

    8. Whakaako Kia Whakaora / Educate to Liberate, 2021 – Honouring the Polynesian Panthers

    This mural honours the historical significance of the Polynesian Panthers in Auckland. With powerful references to social justice, it connects the local struggle for equality with the broader movement for civil rights, reflecting on the ongoing fight for Māori and Pacific rights and freedoms alike.  

    The Polynesian Panthers were formed in Auckland in June 1971, moulded in the shape of the Black Panthers, in response to the marginalisation and discrimination experienced by the Pacific community.  

    To visit Whakaako Kia Whakaora / Educate to Liberate, and other art works close by, click here.

    Tūrama Kaitiaki, Aotea Square, Auckland.

    9. Tūrama, Kaitiaki, 2022 – Celebrating Light, Guardians and Matariki

    Tūrama (light), the hugely popular series of six large-scale illuminated art installations lights up Queen Street to celebrate Matariki (the Māori new year).  

    Tūrama explores the role of kaitiaki (guardians) in protecting the environment. Representing the guardian figure Horotiu, this 9-metre-high artwork reminds all of us to look after the Waihorotiu valley and river, now buried under Queen Street, whose domain Horotiu protects. 

    Tūrama was created by Graham Tipene (Ngāti Whātua Ōrākei, Ngāti Kahu, Ngāti Hine, Ngāti Haua, Ngāti Manu), Ataahua Papa (Ngāti Koroki Kahukura, Ngāti Mahuta), Phil Wihongi (Ngāti Hine) and Angus Muir Design. 

    To visit Tūrama (light), and other art works close by, click here .

    Te Mata Topaki, Viaduct Harbour, Auckland.

    10. Te Mata Topaki, 2020 – A Sculptural Pier Connecting People to Waitematā

    Te Mata Topaki (to hover over the headland) is a striking, award-winning 30-meter sculptural pier designed by Graham Tipene (Ngāti Whātua Ōrākei) that juts out into the Waitematā Harbour. Inspired by the taurapa (stern of a waka) lying on its side, mata – both obsidian and a tip or headland; and topaki – to hover like a bird, this lookout connects both key destinations and people to the water.  

    To visit Te Mata Topaki and other art works close by, click here.

    ‘Te Paparahi Toi Māori’ provides a walking-guide to over 80 sites of public art, architectural design, and historical sites across Tāmaki Makaurau helping to ensure that tangata whenua (local people) see themselves and their culture in the modern landscape. 

    For the online walking guide of Te Paparahi Toi Māori, visit ArtNow.

    To get a physical guide of Te Paparahi Toi Māori, email barbara.holloway@aucklandcouncil.govt.nz, or visit any of the sites listed below: 

    • Auckland Art Gallery, Wellesley Street East

    • Central City Library, 44-46 Lorne Street

    • Ellen Melville Centre, 2 Freyberg Place

    • Auckland Council office foyer, 135 Albert Street

    • Te Wharekura, 117 Quay Street

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Most Aucklanders continue to rate their quality of life highly

    Source: Auckland Council

    Auckland’s topline results for the 2024 Rangahau te Korou o te Ora / Quality of Life Survey have been released, showing 75 per cent of Aucklanders rate their overall quality of life positively.

    The survey, which is undertaken every two years, is a collaborative local government research project that collects data on a range of current and topical issues relevant to residents’ wellbeing in urban New Zealand.

    Auckland’s Policy and Planning Committee chair, Councillor Richard Hills says he is pleased to see from the latest survey results that most Aucklanders have a strong sense of connection and support in their daily lives.

    “The results show in part, that the work council does with Auckland communities makes a difference and can help people to thrive. These results are helpful in shaping how we plan for the future to improve economic, social and environmental outcomes,” Cr Hills says.  
     
    “Although the results show there is always more work to do, it is fantastic to see that 72 per cent of Aucklanders think their local area is a great place to live. Auckland is a wonderful place, and we can be proud of where we call home.”

    Although reports of quality of life remain relatively high, there has been a decrease since 2022, when 82 per cent of Auckland respondents rated their quality of life positively.

    When asked to rate their quality of life compared with one year prior, 25 per cent said it had increased and 30 per cent said it had decreased.

    Reasons for a decline in perceptions of quality of life were largely driven by economic pressures, says Alison Reid, Team Manager, Social and Economic Research and Evaluation.

    “Of those Aucklanders who said their quality of life had decreased, more than two-thirds (67 per cent) said this was due to reduced financial wellbeing,” she says.

    Other findings reflected economic pressures on Aucklanders. Almost half (49 per cent) of those surveyed disagreed that their housing costs were affordable, one in five (22 per cent) said they did not have enough money to meet their everyday needs, and more than a third (37 per cent) said they often worried about their own or their family’s financial circumstances.

    Crime is another key concern raised in the survey, with many Auckland respondents rating theft and burglary (67 per cent), dangerous driving (64 per cent) and vandalism (58 per cent) as problems in their local area in the previous 12 months.  

    It’s not all bad news though, says Alison. “One in four Aucklanders said their quality of life had increased in the last year. Of that group nearly a third (32 per cent) reported that this was related to their health care and wellbeing. Improved financial wellbeing (26 per cent), lifestyle (23 per cent) and work-related factors (23 per cent) also featured.”

    Sixty-eight per cent of Auckland respondents rated both their physical and mental health positively. Most feel they have people in their lives they can call on if they need practical or emotional support (86 per cent and 85 per cent, respectively).

    Most Aucklanders (72 per cent) also agreed that their local area is a great place to live, and more than half (57 per cent) agreed that they are happy with the way their local area looks and feels.

    The results will be used by the council to help plan for the future and to monitor economic, social and environmental outcomes, such as outlined in the Auckland Plan 2050 and Ngā Hapori Momoho, our Thriving Communities Strategy.

    Read the full Topline Report on the Quality of Life website. 

    About the survey 

    • The Quality of Life survey is a collaborative local government research project. Several councils participated in this year’s survey including Auckland Council, Hamilton, Tauranga,  Porirua, Wellington, Christchurch and Dunedin City Councils, as well as Waikato Regional Council.  

    Most Auckland respondents feel they have people in their lives they can call on if they need practical or emotional support.

    MIL OSI New Zealand News –

  • MIL-OSI Security: California Group Indicted for Interstate Transportation of Stolen Property Conspiracy

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

    NEW ORLEANS, LOUISIANA – DEATHONY BLOCKER, age 38, JAMES BLOCKER, age 37, JOVAN COLLINS, age 34 (“COLLINS”), LORENZO TAYLOR, age 39 (“TAYLOR”), NEMIRAH DAVIDSON, age 38 (“DAVIDSON”), and PATRICK GARLAND, age 39 (“GARLAND”), residents of California, were charged on January 30, 2025 in a two-count indictment for conspiracy to commit interstate transportation of stolen goods,  in violation of Title 18, United States Code, Section 371, and interstate transportation of stolen goods, in violation of Title 18, United States Code, Section 2314, announced U.S. Attorney Duane A. Evans.

    According to the indictment, DEANTHONY BLOCKER, JAMES BLOCKER, COLLINS, TAYLOR, DAVIDSON, and GARLAND conspired to transport thousands of cartons of cigarettes interstate, that were stolen from warehousing facilities in Georgia, North Carolina, and Louisiana. The group cut through fences surrounding the facilities, using bolt cutters and crowbars to access the cigarette cartons.

    If convicted of Count 1, the defendants  face up to 5 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory $100 special assessment fee.  As to Count 2, the defendants face up to 10 years of imprisonment, up to 3 years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.

    U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.

    U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco,  Firearms, and Explosives, the  Jefferson Parish Sherriff’s Office, the Knightdale Police Department, the Atlanta Police Department, the Rockmart Police Department, the Texas Department of Public Safety, and the Fort Stockton Police Department in investigating this matter.  Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Security News: Man Pleads Guilty in Connection with $17M Medicare Hospice Fraud and Home Health Care Fraud Schemes

    Source: United States Department of Justice 2

    A California man pleaded guilty today to health care fraud, aggravated identity theft, and money laundering in connection with a years-long scheme to defraud Medicare of more than $17 million through sham hospice companies and his home health care company.

    According to court documents, Petros Fichidzhyan, 43, of Granada Hills, engaged in a scheme with others to operate a series of sham hospice companies. Fichidzhyan, along with co-schemers, impersonated the identities of foreign nationals to use as the purported owners of the hospices — including using the identities to open bank accounts and sign property leases — and submitted false and fraudulent claims to Medicare for hospice services that were not medically necessary and not provided. In submitting the false claims, Fichidzhyan and his co-schemers also misappropriated the identifying information of doctors, claiming to Medicare that the doctors had determined hospice services were necessary, when in fact the purported recipients of these hospice services were not terminally ill and had never requested nor received care from the sham hospices. As a result of the scheme, Medicare paid the sham hospices nearly $16 million. Fichidzhyan personally received nearly $7 million of the proceeds from the fraud scheme, including more than $5.3 million in transfers to his personal and business bank accounts, which were laundered through a dozen shell and third-party bank accounts. Fichidzhyan additionally admitted to wrongfully obtaining more than $1 million for his home health care agency through the fraudulent use of a doctor’s name and identifying information in certifying Medicare beneficiaries for home health care, which he attempted to cover up by paying the doctor $11,000.

    Fichidzhyan pleaded guilty to health care fraud, aggravated identity theft, and money laundering. He is scheduled to be sentenced on April 14 and faces a mandatory penalty of two years in prison on the aggravated identity theft charge, a maximum penalty of 10 years in prison on the health care fraud charge, and a maximum penalty of 20 years in prison on the money laundering charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Today’s guilty plea is the most recent conviction in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area. Last year, a doctor was convicted at trial for his role in a scheme to bill Medicare for hospice services patients did not need, and two other defendants were sentenced for their roles in a hospice fraud scheme.  

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Diane N. Vu of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

    The FBI and HHS-OIG are investigating the case.

    Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

    MIL Security OSI –

  • MIL-OSI United Nations: World News in Brief: WHO chief asks US to reconsider withdrawal, gender parity remains distant goal, call for rethink on Nordic alcohol law change

    Source: United Nations 4

    Health

    The head of the World Health Organization (WHO) said on Monday he would “welcome constructive dialogue” with the United States Government over the decision made by President Donald Trump to withdraw. 

    President Trump’s executive order of 20 January is regrettable “and we hope the US will reconsider,” said WHO Director-General Tedros Adhanom Ghebreyesus, in a speech to the organization’s executive board.

    The WHO chief said he would welcome the opportunity “to preserve and strengthen the historic relationship between WHO and the US.”

    Pushing back on the rationale laid out in the executive order, Tedros said WHO had implemented the deepest and most wide-ranging reforms in its history over the past seven years.

    The US is the biggest donor by far to the agency, accounting for around 14 per cent of its $6.9 billion budget, according to latest WHO figures. 

    Addressing the US complaint that it is paying too much compared to other countries, Tedros said reducing reliance on the US and others who pay the most was a “critical element of our long-term plan to broaden our donor base.”

    COVID record

    Third, he rejected the accusation that WHO had mishandled the COVID-19 pandemic:

    “From the moment we picked up the first signals of ‘viral pneumonia’ in Wuhan, we asked for more information, activated our emergency incident management system, alerted the world, convened global experts, and published comprehensive guidance for countries on how to protect their populations and health systems – all before the first death from this new disease was reported in China on the 11th of January 2020.”

    Tedros also addressed the allegation that WHO lacks independence from “inappropriate political influence” by some Member States: “WHO is impartial and exists to serve all countries and all people,” he said. 

    “Our Member States ask us for many things, and we always try to help as much as we can. But when what they ask is not supported by scientific evidence or is contrary to our mission to support global health, we say no, politely.”

    © UNICEF/Joshua Estey

    A government-run shelter in the Philippines is a safe haven for girls who have been physically and sexually abused and exploited, including through the sex tourism industry. (file)

    A third of women experience physical or sexual violence: Rights experts 

    Approximately one in three women is subjected to physical or sexual violence, and 800 women and girls continue to die every day from preventable causes during pregnancy and childbirth, a top independent rights panel meeting heard on Monday.

    Addressing the Committee on the Elimination of Discrimination Against Women (CEDAW) at the UN in Geneva, Andrea Ori from the UN human rights office, OHCHR, said that the world is “still far” from achieving the goal of gender parity.

    “The global landscape has changed,” she told the CEDAW session.

    Backlash against equal rights

    “We are witnessing a backlash against women’s human rights and gender equality, especially against women’s sexual and reproductive health rights – with an increase in attacks against abortion providers, shrinking civic space for women human rights defenders, and reduced funding.” 

    Mr. Ori noted that 2025 marks 30 years since the universal adoption of the Beijing Declaration and Platform for Action for ensuring women’s human rights and achieving gender equality around the world.  

    It remains the case, however, that sexual violence against women and girls continues to be used as a tactic of war in numerous conflicts, the UN human rights official said, while only 26 per cent of parliamentarians in the world are women and only around three in 10 women have managerial roles at work. 

    One less for the road: Time Europe cut down on booze intake, WHO warns

    The UN World Health Organization (WHO) urged Nordic countries on Monday to keep a lid on alcohol sales, or risk reversing the positive impact of strict regulations put in place years ago.

    For decades, governments in Finland, Iceland, Norway, Sweden and the Faroe Islands have restricted supermarkets and private retailers from selling stronger alcoholic beverages.

    This policy has resulted in some of the lowest alcohol consumption levels in the European Union – which by contrast is the booziest region globally, with drinking habits “largely unchanged” for over 10 years, WHO said.

    Free market pressures

    The Nordic model is now at risk however, from legislative initiatives in the region that signal a potential shift toward privatization of alcohol sales, warned WHO’s Dr. Carina Ferreira-Borges.

    In Sweden, for instance, a court is hearing a challenge to the Government’s exclusive rights to online sales of alcohol, while proposed laws would permit sales of alcoholic beverages in farm shops.

    Dr Ferreira-Borges explained that Nordic countries’ alcohol controls – that involve increasing taxes and raising prices, limiting availability and restricting advertising – have reduced alcohol-related harms. 

    These span from “liver disease, cancers and cardiovascular conditions, to injuries and drownings”, she insisted. 

    MIL OSI United Nations News –

  • MIL-OSI United Nations: Sudan: UN chief condemns reported executions as starvation risks rise

    Source: United Nations 4

    Peace and Security

    The UN Secretary-General expressed deep alarm on Monday over reports of summary executions of civilians in the Sudanese city of Khartoum North, allegedly carried out by fighters and militias allied with the forces of the military Government. 

    Many of the victims are believed to be from the Darfur and Kordofan regions.

    “The Secretary-General reminds all warring parties in Sudan of their obligations under international law, especially in relation to the protection of civilians and civilian infrastructure,” said his Spokesperson Stéphane Dujarric, briefing correspondents in New York.

    “Sudanese women, Sudanese children and Sudanese men are paying the price for the continued fighting by the belligerents,” he stated.

    Government troops have been battling their former allies-turned military rivals, the Rapid Support Forces (RSF), for control of Sudan since April 2023.

    The UN High Commissioner for Human Rights Volker Türk described the “senseless” war where alleged war crimes have been committed on both sides as having taken an “even more dangerous turn for civilians” – as reports mount of brutal, ethnically targeted killings.

    Mr. Türk’s office, OHCHR, is working to corroborate these reports.

    Humanitarian crisis escalates

    Attacks on civilians continue across Sudan, Mr. Dujarric said.

    On Saturday, a strike on a crowded market in Omdurman reportedly killed at least 60 people and injured more than 150, according to UN humanitarians.

    Civilian casualties have also been reported in North Kordofan, as well as North and South Darfur.

    Aid coordination office, OCHA, has warned of rising fatalities, particularly following reported attacks on the Abu Shouk displacement camp, where famine conditions were identified in December.

    UN Humanitarian and Resident Coordinator in Sudan, Clementine Nkweta-Salami, condemned the indiscriminate attacks at the weekend, stating: “The deliberate targeting of civilian areas represents a blatant disregard for human life and the most basic principles of the laws of war. Such atrocities must cease immediately.”

    Rising malnutrition and starvation

    The food crisis in Sudan is worsening, with reports confirming more than 70 hunger-related deaths – mostly among children – in Khartoum State, according to OCHA.

    In January alone, over 1,100 cases of severe malnutrition were recorded in three Omdurman neighbourhoods, underscoring the dire need for food assistance.

    Malnutrition rates are particularly high in areas where access restrictions have forced the closure of community kitchens, a critical lifeline for many families.

    “We stress once again the urgent need for increased funding and logistical support to sustain nutrition programmes and community kitchens, ensuring that the most vulnerable – especially children and older people – receive adequate food, nutrition and healthcare assistance,” Mr. Dujarric said.

    As the humanitarian catastrophe worsens, the UN reiterates its call for all parties to protect civilians and facilitate access to life-saving aid.

    “The suffering of Sudanese civilians has gone on for too long,” Ms. Nkweta-Salami said. “It’s long past time to end this war and prevent further devastation.”

    MIL OSI United Nations News –

  • MIL-OSI New Zealand: 4 February 2025 Kāinga Ora refocusing on its core mission Kāinga Ora – Homes and Communities is refocusing on its core mission of providing and managing quality social housing for New Zealanders in need.

    Source: New Zealand Government Kainga Ora

    Simon Moutter, Board Chair

    “Our focus as a key contributor to New Zealand’s social housing eco-system is on providing safe, warm, dry homes for those in need and acting as a good, supportive landlord to tenants and communities, while ensuring the agency’s long-term financial sustainability,’’ says Board Chair Simon Moutter.

    “Kāinga Ora is the largest social housing landlord in the country, and it is important we look after our homes and tenants and serve our communities well. We are looking forward to working alongside other Community Housing Providers to ensure that New Zealanders in need get stable and supportive housing.

    “Our new plan for Kainga Ora, which the government has approved, outlines a clear path forward for the agency as a responsible social housing landlord who is fair but firm, and invests in the state housing stock in a financially sustainable way,’’ Mr Moutter says.

    Over the two years to 30 June 2026, Kāinga Ora will be adding 2,650 new homes to the state housing stock, as well as renewing almost 3,000 homes.

    “Because of New Zealand’s long history of providing social housing, many of our state homes are old and getting to their end of their life. It is important that we invest in renewing these homes so we can continue the legacy of providing good quality state housing,’’ Mr Moutter says.

    The key elements of the new plan for Kāinga Ora are:

    • A renewed focus on core mission: Over time, Kāinga Ora will narrow its focus on providing and managing social housing in a financially sustainable way.
    • Improved tenancy management: Changes are being made to tenancy management and more use is being made of the Residential Tenancies Act to ensure better outcomes for both tenants and communities. A key part of this will be ensuring tenants are in the right type of home at the right time, with the right support in place.
    • Improved housing portfolio and build management: We are changing our maintenance strategies to ensure we look after our homes, while also investing in the progressive renewal of our older homes. Build costs will be reduced so they are more in line with the market.
    • Improved organisational performance, with a focus on cost effectiveness: Changes are being made to right-size the organisation and ensure value for money.
    • Improved financial sustainability: As key cost-saving initiatives are embedded, Kāinga Ora’s financial sustainability will significantly improve.

    Find out more about the plan for Kāinga Ora.

    Page updated: 4 February 2025

    MIL OSI New Zealand News –

  • MIL-OSI USA: Man Pleads Guilty in Connection with $17M Medicare Hospice Fraud and Home Health Care Fraud Schemes

    Source: US State of North Dakota

    A California man pleaded guilty today to health care fraud, aggravated identity theft, and money laundering in connection with a years-long scheme to defraud Medicare of more than $17 million through sham hospice companies and his home health care company.

    According to court documents, Petros Fichidzhyan, 43, of Granada Hills, engaged in a scheme with others to operate a series of sham hospice companies. Fichidzhyan, along with co-schemers, impersonated the identities of foreign nationals to use as the purported owners of the hospices — including using the identities to open bank accounts and sign property leases — and submitted false and fraudulent claims to Medicare for hospice services that were not medically necessary and not provided. In submitting the false claims, Fichidzhyan and his co-schemers also misappropriated the identifying information of doctors, claiming to Medicare that the doctors had determined hospice services were necessary, when in fact the purported recipients of these hospice services were not terminally ill and had never requested nor received care from the sham hospices. As a result of the scheme, Medicare paid the sham hospices nearly $16 million. Fichidzhyan personally received nearly $7 million of the proceeds from the fraud scheme, including more than $5.3 million in transfers to his personal and business bank accounts, which were laundered through a dozen shell and third-party bank accounts. Fichidzhyan additionally admitted to wrongfully obtaining more than $1 million for his home health care agency through the fraudulent use of a doctor’s name and identifying information in certifying Medicare beneficiaries for home health care, which he attempted to cover up by paying the doctor $11,000.

    Fichidzhyan pleaded guilty to health care fraud, aggravated identity theft, and money laundering. He is scheduled to be sentenced on April 14 and faces a mandatory penalty of two years in prison on the aggravated identity theft charge, a maximum penalty of 10 years in prison on the health care fraud charge, and a maximum penalty of 20 years in prison on the money laundering charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Today’s guilty plea is the most recent conviction in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area. Last year, a doctor was convicted at trial for his role in a scheme to bill Medicare for hospice services patients did not need, and two other defendants were sentenced for their roles in a hospice fraud scheme.  

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Diane N. Vu of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

    The FBI and HHS-OIG are investigating the case.

    Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

    MIL OSI USA News –

  • MIL-OSI Australia: ACCC sweep uncovers concerning online shopping return policies and terms and conditions

    Source: Australian Competition and Consumer Commission

    The ACCC has conducted a sweep of more than two thousand Australian retail websites and has found some businesses using terms and conditions that may contravene the Australian Consumer Law (ACL).

    As part of this sweep, business’ return policies and website terms and conditions were reviewed, some of which raised concerns as being potentially misleading for consumers.

    “Our sweep has found numerous examples of practices that could potentially mislead or deceive consumers regarding their rights to exchange, refund or return a product,” ACCC Deputy Chair Catriona Lowe said.

    “Under the Australian Consumer Law consumers have basic rights when buying products and services, known as consumer guarantees. These rights are separate from any warranties offered by a business and cannot be taken away by anything a business says or does.”

    The sweep identified several potentially misleading statements in the terms and conditions of a number of the websites reviewed, including:

    • imposing time-limits for returning a faulty product;
    • imposing blanket ‘no refund’ conditions on sales or specialised items;
    • referring to manufacturer warranties as the only avenue for consumers to claim remedies for faulty goods, and;
    • placing restrictions on consumers’ right to a remedy, including stating that delivery fees paid for faulty items were non-refundable and charging restocking fees if customers returned faulty items.

    Problematic statements found during the sweep included:

    • “Items that have been opened and used cannot be exchanged or refunded”;
    • “Made to order products cannot be returned”;
    • “Sale items cannot be returned, exchanged or refunded” and;
    • “In the unlikely event that your item arrives damaged or faulty, please notify the store within 30 days of delivery to receive a replacement”.

    As a result of the sweep’s findings, the ACCC sent warning letters to several businesses whose returns policies or terms and conditions raised concerns under the ACL.

    “Our action led to the majority of businesses changing or removing concerning statements from their websites and improving consumer guarantee messages to consumers,” Ms Lowe said.

    “While we did identify some concerning practices during this sweep, we were pleased to find that many websites had information that advised consumers of their consumer guarantee rights under the Australian Consumer Law.”

    Under the ACL, businesses should not be making statements, written or verbally, to the following effect about faulty products:

    • No refunds are permitted under any circumstances;
    • No refunds are provided for sale or specialised items;
    • To be eligible for a refund, the consumer has a limited timeframe, from receipt of the good, to return the product;
    • Returns will be subject to a processing, restocking or repair fee;
    • No refunds are provided for opened or used items under any circumstances;
    • Delivery fees are non-refundable;
    • Customers must pay for delivery for returned items.

    “The ACCC is committed to improving business compliance with consumer guarantees and will continue to actively monitor this area, and where appropriate, take enforcement action,” Ms Lowe said.

    “We encourage all businesses to review their return policies and terms and conditions to ensure they comply with the law.”

    Consumers should report any potentially misleading or deceiving statements to the ACCC: Report a consumer issue

    Notes for editors:

    There are nine consumer guarantees that apply to products. They include guarantees that a product sold to a consumer must be of acceptable quality, fit for any stated purpose, and match its description.

    The three consumer guarantees that apply to services are that businesses must provide them using reasonable care and skill, they must be fit for any stated purpose, and they must be supplied within a reasonable time where the time is not otherwise agreed between the consumer and the business.

    Businesses may offer other warranties, but these are extra promises that a business can choose to make in addition to the consumer guarantees. A warranty cannot replace, change or take away a consumer’s basic legal rights.

    Depending on the nature of the problem, remedies can include a refund, a repair or replacement and/or compensation for reasonably foreseeable loss or damage caused by the failure to meet the consumer guarantee.

    Consumer guarantees do not apply if the consumer simply changed their mind, found the product cheaper somewhere else, or decided they no longer liked it or had no use for it. Consumer guarantees also do not apply if a consumer misused the product in a way that caused the problem.

    The ACCC has been advocating for law reform to the consumer guarantees provisions, and welcomes the Federal Government’s commitment to work with state and territory consumer affairs ministers to design proposed civil prohibitions and penalties for breaches of the consumer guarantee and supplier indemnification provisions of the ACL. This would introduce penalties for:

    • businesses which fail to provide a remedy for consumer guarantees failures, when they are legally required to do so under the consumer guarantees, and
    • manufacturers which fail to reimburse suppliers for consumer guarantees failures for which the manufacturers are responsible.

    These amendments would significantly change business incentives to comply with their consumer guarantee obligations under the ACL, as well as more effectively supporting consumers in securing their statutory consumer guarantee rights.

    Background

    The ACCC conducted a sweep of retail websites operating in Australia. The ACCC then reviewed statements to assess whether the statement sought to restrict consumers’ consumer guarantee rights, and if so whether any further action was warranted, having regard to the size of the business, additional context on the website surrounding the statement, and consumer reports about those businesses.

    As a result, numerous website statements that raised concerns under the ACL were identified. The ACCC subsequently sent warning letters to several businesses to notify them of our concerns, educate them on their obligations under the ACL, and improve compliance with the ACL.

    Improving industry compliance with consumer guarantees is one of the ACCC’s compliance and enforcement priorities and has been a priority for a number of years. In 2024/25, the ACCC is particularly focused on consumer guarantees relating to consumer electronics and targeting misconduct by retailers in connection with delivery timeframes.

    In November 2024, furniture and homewares retailer Koala & Tree Pty Ltd, trading as Koala Living, paid penalties of $56,340 after the ACCC issued it with three infringement notices for making false or misleading statements about consumers’ rights to remedies for faulty products, including for representing that a consumer’s right to seek remedies for faulty products was limited to 72 hours.

    In March 2024, the ACCC instituted Federal Court proceedings against Mosaic Brands Limited for allegedly misrepresenting consumer guarantee rights in the terms and conditions published on eight of its brands websites and making false or misleading representations to consumers about delivery times.

    In February 2024, the Federal Court ordered Mazda Australia Pty Ltd to pay $11.5 million in penalties for engaging in misleading and deceptive conduct and making false or misleading representations to nine consumers about their consumer guarantee rights.

    MIL OSI News –

  • MIL-OSI Security: New Orleans Man Pleads Guilty to Federal Firearm Charges

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on January 28, 2025, CURTIS SQUIRE (“SQUIRE”), age 27, pled guilty to being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8). SQUIRE faces up to fifteen years of imprisonment, up to a $250,000 fine, at least 3 years of supervised release, and a mandatory special assessment fee of $100.

    On February 25, 2024, members of the New Orleans Police Department (NOPD) were executed an arrest warrant for SQUIRE.  On February 25,2024, officers located and surrounded SQUIRE’s New Orleans  residence. After SQUIRE exited the residence, NOPD officers searched the house and recovered a Glock Model 23C, .40 caliber pistol, containing a large capacity magazine, and 20 live .40 caliber rounds.

    Prior to his possession of this firearm, SQUIRE had been convicted of crimes punishable by a term of imprisonment in excess of one year.

    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.

    The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI: NEXUS CAPITAL MANAGEMENT ANNOUNCES ACQUISITION OF TRICAM INDUSTRIES

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES & EDEN PRAIRIE, MN, Feb. 03, 2025 (GLOBE NEWSWIRE) — Nexus Capital Management LP (together with certain affiliates, “Nexus”), a Los Angeles-based alternative asset management firm, announced today it has partnered with the management team and existing owners, the McMunn family, to acquire Tricam Industries, LLC (the “Company” or “Tricam”).

    Tricam, based in Eden Prairie, MN, specializes in the design, development and engineering of consumer and professional home improvement equipment, including ladders and step stools, garden carts, wheelbarrows, hose reels and hand trucks, among others. The Company’s products are primarily sold through home center and retail channels across North America, Australia and New Zealand under the flagship Gorilla® brand as well as other owned and licensed brands.

    Jeff Skubic, President & CEO of Tricam, stated, “This transaction represents an exciting milestone in Tricam’s corporate journey. Over the last three decades, Tricam has built a strong reputation as a trusted supplier with high quality products consumers respond to and have come to expect from us. We’re grateful for the confidence our partners and customers place in us, and we’re looking forward to partnering with Nexus as we continue to expand our product portfolio and accelerate our growth. Our founder, Tony McMunn, established a culture built on an unwavering entrepreneurial drive that fosters and rewards hard work, creativity, and collaboration. The team is excited, and we’re pleased the McMunn family will continue along with us.”

    “My family and I are excited to partner with Nexus and feel very confident this relationship will allow for continued success and provide opportunities for our employees” said Tricam founder Tony McMunn.

    “We are thrilled to partner with Jeff, Tony and the Tricam management team,” said Michael Cohen, Partner at Nexus. “Tricam has established itself as a market leader by focusing relentlessly on innovation, quality and safety. We look forward to working closely with Tricam to continue building on the Company’s long history of success.”

    Brad Kottman, Principal at Nexus, added, “We are thoroughly impressed with the strong foundation Tricam has established. The Company is led by a highly experienced team, the product suite is differentiated, and the supply chain is diverse and resilient. This investment represents a compelling new platform that is well positioned to react to changing environments and pursue continued growth.”

    Kirkland & Ellis LLP served as legal advisor to Nexus. Jefferies LLC served as financial advisor and Fox Rothschild LLP served as legal advisor to Tricam. J.P. Morgan and Citi provided financing for the acquisition.

    About Tricam

    Tricam, founded in 1990, is a leading supplier of home improvement and hardware products sold through home center and retail outlets primarily in the US, Canada, Australia and New Zealand. Based in Eden Prairie, Minnesota, the Company employs a growing team centered around bringing innovative products to market and maintaining strong relationships with our retailer and supplier partners. The Company continues to invest in its product and brand portfolio, led by its flagship Gorilla® brand across multiple product categories, including ladders, garden carts, wheelbarrows, hose reels and hand trucks. For more information on Tricam, please visit www.gorillamade.com and www.tricamindustries.com.

    About Nexus Capital Management LP

    Nexus is an alternative asset investment management company based in Los Angeles, California that was founded in 2013. Nexus employs a flexible investment mandate that focuses on long-term value creation by partnering with leading management teams and businesses. For more information on Nexus, please visit www.nexuslp.com.

    Contact Information:

    Mike Gabbert

    Tricam Director of Marketing

    Mgabbert@tricam.com

    The MIL Network –

  • MIL-OSI USA: Murphy At USAID: Trump And Musk Are Shuttering Agencies To Turn Government Over To Billionaires

    US Senate News:

    Source: United States Senator for Connecticut – Chris Murphy

    February 03, 2025

    WASHINGTON— U.S. Senator Chris Murphy (D-Conn.), a member of the U.S. Senate Foreign Relations Committee, on Monday joined a press conference in front of the shuttered United States Agency for International Development (USAID) to raise the alarm about how President Trump’s decision – at the behest of Elon Musk – to illegally shut down the agency will have disastrous impacts on national security while strengthening China and Russia.

    Murphy highlighted USAID’s crucial role in global security and support for democracy: “USAID fights terrorist groups all across this world making sure that we address the underlying causes that lead to terrorism. USAID chases China all around the world, making sure China doesn’t monopolize contracts for critical minerals and port infrastructure all around the world. It supports freedom fighters everywhere in this world, up until yesterday, delivering firewood, for instance, to the brave Ukrainian defenders on the eastern front.”

    Murphy called out Trump’s closure of USAID as a play by Elon Musk and the billionaire class to hijack U.S. foreign policy for profit: “Elon Musk makes billions of dollars based off of his business with China. And China is cheering at this action today. There is no question that the billionaire class trying to take over our government right now is doing it based on self-interest–their belief that if they can make us weaker in the world, if they can elevate their business partners all around the world, that they will gain the benefit.”

    Murphy continued: “They are shuttering agencies and sending employees home in order to create the illusion that they are saving money in order to do what? Pass a giant tax cut for billionaires and corporations, right? This is all a smokescreen, a shell game, in order to turn this government over to a handful of unelected billionaires and corporate interests, and we are not going to let them do that.”

    Murphy concluded: “So we will use every power that we have in our disposal in the United States Senate. My colleagues will do the same thing in the House. This is a constitutional crisis that we are in today.  Let’s call it what it is. The people get to decide how we defend the United States of America. The people get to decide how their taxpayer money is spent. Elon Musk does not get to decide. We are weaker today than we were yesterday. China sees that, Russia sees that, and they will take advantage. Our job, and your job together, is to raise our voices, raise the alarm, so that this crisis, this emboldening of our enemies, doesn’t last a second longer than it has to.”

    A full transcript of his remarks can be found below:

    MURPHY: “So, Elon Musk has been floating all sorts of awful, terrible conspiracy theories about what happens at USAID. Let’s make it very clear that every single day America is safer because of what happens at USAID. 

    “USAID fights terrorist groups all across this world making sure that we address the underlying causes that lead to terrorism. USAID chases China all around the world, making sure China doesn’t monopolize contracts for critical minerals and port infrastructure all around the world. It supports freedom fighters everywhere in this world, up until yesterday, delivering firewood, for instance, to the brave Ukrainian defenders on the eastern front. 

    “But let’s not pull any punches about why this is happening. Elon Musk makes billions of dollars based off of his business with China. And China is cheering at this action today. There is no question that the billionaire class trying to take over our government right now is doing it based on self-interest–their belief that if they can make us weaker in the world, if they can elevate their business partners all around the world, that they will gain the benefit. 

    “But there is another reason this is happening. They are shuttering agencies and sending employees home in order to create the illusion that they are saving money in order to do what? Pass a giant tax cut for billionaires and corporations, right? This is all a smokescreen, a shell game, in order to turn this government over to a handful of unelected billionaires and corporate interests, and we are not going to let them do that. 

    “So we will use every power that we have in our disposal in the United States Senate. My colleagues will do the same thing in the House. This is a constitutional crisis that we are in today.  Let’s call it what it is. The people get to decide how we defend the United States of America. The people get to decide how their taxpayer money is spent. Elon Musk does not get to decide. 

    “We are weaker today than we were yesterday. China sees that, Russia sees that, and they will take advantage. Our job, and your job together, is to raise our voices, raise the alarm, so that this crisis, this emboldening of our enemies, doesn’t last a second longer than it has to. Thank you everybody for being here today. Really, really important.”

    MIL OSI USA News –

  • MIL-OSI USA: Durbin, Castro Introduce Bill To Curb Firearms Trafficking From The United States To Mexican Drug Cartels

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin

    February 03, 2025

    The Stop Arming Cartels Act would stem the “iron river” of firearms trafficking enabled by weak American gun laws

    WASHINGTON – Today, U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, and U.S. Representative Joaquin Castro (D-TX-20), Ranking Member of the House Foreign Affairs Subcommittee on the Western Hemisphere, led the bicameral introduction of the Stop Arming Cartels Act.  The legislation is introduced as an estimated 200,000 to 500,000 American-made guns are trafficked into Mexico annually, largely attributable to unlicensed gun dealers, straw purchasers, and thefts from federal firearms licensees (FFLs).

    The bill would seek to stem this “iron river” of firearms trafficking from the United States to Mexico, enabled by weak American gun laws and dangerous gun industry practices. The deadly stream of firearms trafficking exacerbates violence, enables cartels who smuggle migrants to our southern border, and facilitates the illicit trade of narcotics, including fentanyl, across the border back into the United States.  According to a 2021 study from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), 70 percent of crime guns recovered in Mexico from 2014-2018 and submitted for tracing were U.S.-sourced.

    “Our country’s lax gun laws have created a deadly, vicious cycle of firearms trafficking that’s riddled with violence and chaos, resulting in a consistent transfer of fentanyl across our border.  Our gun laws and gun industry practices fuel an iron river of firearms trafficking that supplies Mexican drug cartels and other criminal elements in the region, and it’s time to cut off the iron river at its source.  With the Stop Arming Cartels Act, we can disarm cartels and help prevent the violence, drug trafficking, and irregular migration associated with cartel power and violence at home and abroad,” said Durbin.

    “For years, Republicans have taken an increasingly brutal approach to immigration while refusing to address the role that U.S. guns play in fueling the violence and instability that force families to flee from their homes.  When I meet with leaders in Latin America and the Caribbean, their number one request is for the United States to stop the gun trafficking that originates within our borders.  In Mexico, in particular, high-caliber weapons smuggled from the United States have allowed cartels to shoot down police helicopters, attack military convoys, and undercut public faith in law and order.  The Stop Arming Cartels Act will make important progress to stem the deadly flow of guns from the United States and build stability across the globe.  I appreciate Senator Durbin’s leadership on this issue in the Senate, and I hope that our Republican colleagues will join us as we work to pass this lifesaving bill into law,” said Castro.

    Specifically, the Stop Arming Cartels Act would:

    • Prohibit future nongovernmental manufacture, importation, sale, transfer, or possession of .50 caliber rifles;
    • Regulate existing .50 caliber rifles under the National Firearms Act, with a fee waiver and 12-month grace period for registration on the National Firearms Registration and Transfer Record for those who lawfully possess them under current law;
    • Create an exception to the Protection of Lawful Commerce in Arms Act (PLCAA), allowing victims of gun violence to sue manufacturers and dealers who engage in firearm transactions prohibited under the Foreign Narcotics Kingpin Designation Act (the “Kingpin Act”);
    • Prohibit the sale or transfer of firearms to individuals sanctioned under the Kingpin Act and add Kingpin Act designations to the National Instant Criminal Background Check System (NICS); and
    • Require firearms dealers to report multiple sales of rifles to state and local law enforcement agencies, as they must currently do for handguns.

    The bill is co-sponsored by U.S. Senators Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Cory Booker (D-NJ), Mark Kelly (D-AZ), Tim Kaine (D-VA), Andy Kim (D-NJ), Ruben Gallego (D-AZ), Chris Murphy (D-CT), Jack Reed (D-RI), and Ron Wyden (D-OR).

    The bill is endorsed by Brady United Against Gun Violence, Everytown for Gun Safety, GIFFORDS, March for Our Lives, Global Exchange, Global Action on Gun Violence, Amnesty International, and People’s Movement for Peace and Justice.

    The introduction of the Stop Arming Cartels Act continues Durbin’s efforts to strengthen American gun laws and combat firearms trafficking from the United States abroad.  In June 2022, the Senate passed and President Biden signed into law the Bipartisan Safer Communities Act, the most significant gun violence prevention reform in nearly three decades.  Among its many provisions, the law creates federal firearm straw purchasing and trafficking criminal offenses.

    In March 2022, the Senate passed the government funding bill that reauthorized the Violence Against Women Act, including provisions from the NICS Denial Notification Act.  These provisions require federal law enforcement to promptly notify state law enforcement within hours when a person fails a gun background check.

    In 2019, Durbin urged the Government Accountability Office (GAO) to update its reports on efforts to combat firearms trafficking from the United States to Mexico, Belize, and Guatemala and expand the report to include El Salvador and Honduras.  The report revealed that 40 percent of firearms recovered in those countries and submitted for tracing from 2015-2019 came from the United States.  Based on the immense value of that report, Durbinjoined colleagues in 2023 to successfully press GAO to expand the study further to include the Caribbean.

    Bill text is available here. A one-page summary of the bill is available here.

    -30-

    MIL OSI USA News –

  • MIL-OSI Security: Man Pleads Guilty in Connection with $17M Medicare Hospice Fraud and Home Health Care Fraud Schemes

    Source: United States Attorneys General 1

    A California man pleaded guilty today to health care fraud, aggravated identity theft, and money laundering in connection with a years-long scheme to defraud Medicare of more than $17 million through sham hospice companies and his home health care company.

    According to court documents, Petros Fichidzhyan, 43, of Granada Hills, engaged in a scheme with others to operate a series of sham hospice companies. Fichidzhyan, along with co-schemers, impersonated the identities of foreign nationals to use as the purported owners of the hospices — including using the identities to open bank accounts and sign property leases — and submitted false and fraudulent claims to Medicare for hospice services that were not medically necessary and not provided. In submitting the false claims, Fichidzhyan and his co-schemers also misappropriated the identifying information of doctors, claiming to Medicare that the doctors had determined hospice services were necessary, when in fact the purported recipients of these hospice services were not terminally ill and had never requested nor received care from the sham hospices. As a result of the scheme, Medicare paid the sham hospices nearly $16 million. Fichidzhyan personally received nearly $7 million of the proceeds from the fraud scheme, including more than $5.3 million in transfers to his personal and business bank accounts, which were laundered through a dozen shell and third-party bank accounts. Fichidzhyan additionally admitted to wrongfully obtaining more than $1 million for his home health care agency through the fraudulent use of a doctor’s name and identifying information in certifying Medicare beneficiaries for home health care, which he attempted to cover up by paying the doctor $11,000.

    Fichidzhyan pleaded guilty to health care fraud, aggravated identity theft, and money laundering. He is scheduled to be sentenced on April 14 and faces a mandatory penalty of two years in prison on the aggravated identity theft charge, a maximum penalty of 10 years in prison on the health care fraud charge, and a maximum penalty of 20 years in prison on the money laundering charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Today’s guilty plea is the most recent conviction in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area. Last year, a doctor was convicted at trial for his role in a scheme to bill Medicare for hospice services patients did not need, and two other defendants were sentenced for their roles in a hospice fraud scheme.  

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Diane N. Vu of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

    The FBI and HHS-OIG are investigating the case.

    Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

    MIL Security OSI –

  • MIL-OSI: RBB Bancorp Reports Fourth Quarter and Fiscal Year 2024 Earnings

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Feb. 03, 2025 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter and fiscal year ended December 31, 2024.

    Fourth Quarter 2024 Highlights

    • Net income totaled $4.4 million, or $0.25 diluted earnings per share
    • Return on average assets of 0.44%, compared to 0.72% for the quarter ended September 30, 2024
    • Net interest margin of 2.76% compared to 2.68% for the quarter ended September 30, 2024
    • Book value and tangible book value per share(1) of $28.66 and $24.51 at December 31, 2024, compared to $28.81 and $24.64 at September 30, 2024

    The Company reported net income of $4.4 million, or $0.25 diluted earnings per share, for the quarter ended December 31, 2024, compared to net income of $7.0 million, or $0.39 diluted earnings per share, for the quarter ended September 30, 2024. Net income for the year ended December 31, 2024 totaled $26.7 million, or $1.47 diluted earnings per share, compared to net income of $42.5 million, or $2.24 diluted earnings per share, for the year ended December 31, 2023.

    “Declining funding costs and stable interest income drove net interest income and net interest margin higher in the fourth quarter,” said Johnny Lee, President of the Company and President and Chief Executive Officer of the Bank. “We continue to make good progress on our growth initiatives and expect we will resume loan growth in the first quarter and for the remainder of the year.  We did see an increase in nonperforming loans mainly due to one credit relationship that was downgraded late in the fourth quarter.  We are actively working to resolve our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital.”

    “We are saddened by the devastation caused by the recent fires in Los Angeles,” said David Morris, Chief Executive Officer of the Company. “We stand ready to support our community and neighbors as they begin the process of rebuilding.”

    (1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.
       

    Net Interest Income and Net Interest Margin

    Net interest income was $26.0 million for the fourth quarter of 2024, compared to $24.5 million for the third quarter of 2024. The $1.4 million increase was due to a $130,000 increase in interest income and a $1.3 million decrease in interest expense. The increase in interest income was mostly due to higher interest income on cash and investment securities of $1.1 million offset by lower interest income on total loans of $952,000. The decrease in loan interest income was mostly due to lower average loans of $9.8 million and a 10 basis point decrease in the average loan yield due to decreases in market rates and a change in the loan mix. The increase in cash and investment interest income was attributed to higher average balances and a higher investment portfolio yield, offset by a lower yield on cash. The decrease in interest expense was mostly due to a 33 basis point decrease in total average interest-bearing deposit rates offset by higher average interest-bearing deposits of $33.8 million in the fourth quarter of 2024.

    Net interest margin (“NIM”) was 2.76% for the fourth quarter of 2024, an increase of 8 basis points from 2.68% for the third quarter of 2024. The increase was due to a 25 basis point decrease in the overall cost of funds, partially offset by a 15 basis point decrease in the yield on average interest-earning assets. The yield on average interest-earning assets decreased to 5.79% for the fourth quarter of 2024 from 5.94% for the third quarter of 2024 due mainly to a 55 basis point decrease in the yield on average cash and cash equivalents to 5.02%, a decrease in the loan yield of 10 basis points and the impact of a change in the mix of average-earnings assets. Average loans represented 82% of average interest-earning assets in the fourth quarter of 2024, a 2% decrease from the third quarter of 2024. The decrease in the loan yield was attributed mostly to a decrease in market rates and a change in the loan mix. 

    The overall cost of funds decreased to 3.32% in the fourth quarter of 2024 from 3.57% in the third quarter of 2024 due to a lower average cost of interest-bearing deposits. The overall funding mix for the fourth quarter of 2024 remained relatively unchanged from the third quarter of 2024 with the ratio of average noninterest-bearing deposits to average total funding sources of 16%. The all-in average spot rate for total deposits was 3.15% at December 31, 2024.

    Net interest income was $99.4 million for the year ended December 31, 2024, compared to $119.3 million for the year ended December 31, 2023. The $19.9 million decrease was due to a $15.4 million increase in interest expense and a $4.5 million decrease in interest income. The decrease in interest income was mostly due to lower interest income on total loans of $9.7 million offset by higher interest income on interest-earning deposits of $4.7 million. The decrease in loan interest income was mostly due to lower average loans of $164.3 million. The increase in cash and investment interest income was attributed to higher average cash balances and a higher investment portfolio yield, offset by a lower average of investment securities. The increase in interest expense was mostly due to a 72 basis point increase in total average interest-bearing deposit rates and higher average interest-bearing deposits of $30.1 million in the year ended December 31, 2024.

    NIM was 2.70% for the year ended December 31, 2024, a decrease of 46 basis points from 3.16% for the year ended December 31, 2023. The decrease was due to a 55 basis point increase in the overall cost of funds, partially offset by a 2 basis point increase in the yield on average interest-earning assets. The yield on average interest-earning assets increased to 5.88% for the year ended December 31, 2024 compared to the prior year due mainly to a 12 basis point increase in the yield on average cash and cash equivalents to 5.53%, an 18 basis point increase in the investment portfolio yield, offset by the impact of lower average loan balances. Average loans represented 83% of average interest-earning assets during 2024, and 85% during 2023.

    The overall cost of funds increased to 3.49% in the year ended December 31, 2024 from 2.94% in the year ended December 31, 2023 due to a higher average cost of interest-bearing deposits in response to higher average market interest rates. The overall funding mix for December 31, 2024 remained relatively unchanged from the prior year with a ratio of average noninterest-bearing deposits to average total funding sources of 16%.

    Provision for Credit Losses

    The provision for credit losses was $6.0 million for the fourth quarter of 2024 compared to $3.3 million for the third quarter of 2024. The fourth quarter of 2024 provision for credit losses was due to an increase in specific reserves of $4.3 million and net charge-offs of $2.0 million, partially offset by lower general reserves. The fourth quarter increase in specific reserves included $4.5 million for a construction loan secured by a partially completed mixed-use commercial project. Fourth quarter net charge-offs included $1.8 million for nonaccrual loans that were moved to held for sale (“HFS”). Net charge-offs on an annualized basis represented 0.26% of average loans for the fourth quarter of 2024 compared to 0.16% for the third quarter of 2024. The fourth quarter provision also took into consideration factors such as changes in loan balances, the loan portfolio mix, the outlook for economic conditions and market interest rates, and changes in credit quality metrics, including higher nonperforming loans, and changes in special mention and substandard loans during the period.

    The provision for credit losses was $9.9 million for the year ended December 31, 2024 compared to $3.4 million for the year ended December 31, 2023. The 2024 provision included the impact from an increase in specific reserves of $6.1 million and net charge-offs of $3.9 million. Net charge-offs totaled $3.9 million for the year ended December 31, 2024, compared to $3.1 million for the year ended December 31, 2023. Net charge-offs represented 0.13% of average loans for the fiscal year 2024 compared to 0.10% for the fiscal year 2023.

    Noninterest Income

    Noninterest income for the fourth quarter of 2024 was $2.7 million, a decrease of $3.0 million from $5.7 million for the third quarter of 2024. This decrease was mostly due to the third quarter of 2024 including a $2.8 million recovery of a fully charged off loan acquired in a bank acquisition.

    Noninterest income for the year ended December 31, 2024 was $15.3 million, an increase of $317,000 from $15.0 million for the year ended December 31, 2023. This increase was mostly due to a $2.9 million increase in recoveries on purchased loans, a $1.2 million increase in gain on sale of loans and an $883,000 increase in gain on OREO, offset by income from a $5.0 million Community Development Financial Institution Equitable Recovery Program award that was recognized during 2023.

    Noninterest Expense

    Noninterest expense for the fourth quarter of 2024 was $17.6 million, an increase of $228,000 from $17.4 million for the third quarter of 2024. This increase was mostly due to higher legal and professional expenses of $397,000, partially offset by lower occupancy and equipment expenses of $115,000. The annualized noninterest expenses to average assets ratio was 1.76% for the fourth quarter of 2024, down from 1.78% for the third quarter of 2024. The efficiency ratio was 61.5% for the fourth quarter of 2024, up from 57.5% for the third quarter of 2024 due mostly to lower noninterest income as the third quarter included a $2.8 million recovery of a fully charged off loan acquired in a bank acquisition.

    Noninterest expense for the year ended December 31, 2024 was $69.2 million, a decrease of $1.5 million from $70.7 million for the year ended December 31, 2023. This decrease was mostly due to lower legal and professional expenses of $3.7 million, partially offset by higher salaries and employee benefits of $1.6 million. The noninterest expenses to average assets ratio was 1.76% for the fiscal year 2024 and 2023. The efficiency ratio was 60.3% for the year ended December 31, 2024, up from 52.6% for the year ended December 31, 2023 due mostly to lower net interest income for 2024.

    Income Taxes

    The effective tax rate was 13.3% for the fourth quarter of 2024 and 26.9% for the third quarter of 2024. The decrease in the effective tax rate for the fourth quarter was due primarily to higher tax credits relative to pre-tax net income as compared to the prior quarter.

    The effective tax rate was 25.3% for the year ended December 31, 2024 and 29.5% for the year ended December 31, 2023. The decrease in the effective tax rate for 2024 was due primarily to higher tax credits as compared to the prior year.

    Balance Sheet

    At December 31, 2024, total assets were $4.0 billion, a $2.0 million increase compared to September 30, 2024, and a $33.5 million decrease compared to December 31, 2023.

    Loan and Securities Portfolio

    Loans held for investment (“HFI”) totaled $3.1 billion as of December 31, 2024, a decrease of $38.7 million compared to September 30, 2024 and a $21.4 million increase compared to December 31, 2023. The decrease from September 30, 2024 was primarily due to a $51.3 million decrease in commercial real estate (“CRE”) loans, a $6.9 million decrease in construction and land development (“C&D”) loans and an $826,000 decrease in Small Business Administration (“SBA”) loans, partially offset by a $20.6 million increase in single-family residential (“SFR”) mortgages and a $724,000 increase in commercial and industrial (“C&I”) loans. The loan to deposit ratio was 97.5% at December 31, 2024, compared to 98.6% at September 30, 2024 and 94.2% at December 31, 2023. 

    As of December 31, 2024, available-for-sale securities totaled $420.2 million, an increase of $114.5 million from September 30, 2024, primarily related to the purchase of $79.2 million in short-term commercial paper. As of December 31, 2024, net unrealized losses totaled $29.2 million, a $6.0 million increase due mostly to increases in treasury rates, when compared to net unrealized losses of $23.2 million as of September 30, 2024.

    Deposits

    Total deposits were $3.1 billion as of December 31, 2024, an $8.4 million decrease compared to September 30, 2024 and a $91.0 million decrease compared to December 31, 2023. The decrease during the fourth quarter of 2024 was due to a $27.8 million decrease in interest-bearing deposits, while noninterest-bearing deposits increased $19.4 million to $563.0 million as of December 31, 2024 compared to $543.6 million as of September 30, 2024. The decrease in interest-bearing deposits included a decrease in time deposits of $24.7 million and non-maturity deposits of $3.1 million. Wholesale deposits remained relatively unchanged at $147.5 million at December 31, 2024 compared to $147.3 million at September 30, 2024. Noninterest-bearing deposits represented 18.3% of total deposits at December 31, 2024 compared to 17.6% at September 30, 2024.

    Credit Quality

    Nonperforming assets totaled $81.0 million, or 2.03% of total assets, at December 31, 2024, compared to $60.7 million, or 1.52% of total assets, at September 30, 2024. The $20.4 million increase in nonperforming assets was due to the addition of one $26.4 million C&D loan, $2.0 million in SFR loans and $890,000 in SBA loans that migrated to nonaccrual status during the fourth quarter of 2024, partially offset by payoffs and paydowns of $6.7 million and partial charge-offs of $2.0 million.

    Nonperforming assets at December 31, 2024 include loans HFS with a total fair value of $11.2 million, which were transferred from HFI during the fourth quarter of 2024 after a $1.8 million charge-off against the allowance for credit losses. These loans were reported as nonperforming loans at September 30, 2024.

    Special mention loans totaled $65.3 million, or 2.14% of total loans, at December 31, 2024, compared to $77.5 million, or 2.51% of total loans, at September 30, 2024. The $12.2 million decrease was primarily due to CRE loans totaling $11.8 million that were upgraded to pass-rated and $1.8 million in payoffs and paydowns, offset by CRE loans totaling $1.4 million downgraded during the fourth quarter of 2024. All special mention loans are paying current.

    Substandard loans totaled $100.3 million, of which $11.2 million were HFS at December 31, 2024, compared to $79.8 million at September 30, 2024. This $20.5 million increase was primarily due to downgrades of one $26.4 million C&D loan, SFR loans totaling $2.0 million, C&I loans totaling $1.9 million and SBA loans totaling $747,000. These downgrades were offset by payoffs and paydowns totaling $6.5 million, upgrades totaling $2.0 million and partial charge-offs totaling $2.0 million. Of the total substandard loans at December 31, 2024, there are $19.3 million on accrual status, including an $11.7 million C&D loan that was in the process of renewal and also included in the 30-89 day delinquent category below.

    30-89 day delinquent loans, excluding nonperforming loans, totaled $22.1 million at December 31, 2024, compared to $10.6 million at September 30, 2024. The $11.5 million increase was mostly due to one $11.7 million C&D loan in process of renewal for a completed multifamily project at December 31, 2024, and since year end, it has been brought current and paid down by $1.5 million. Other changes in delinquent loans included additions totaling $5.5 million, offset by $3.2 million that returned to current status, $1.8 million that migrated to nonaccrual status and $735,000 in payoffs.

    As of December 31, 2024, the allowance for credit losses totaled $48.5 million and was comprised of an allowance for loan losses of $47.7 million and a reserve for unfunded commitments of $729,000 (included in “Accrued interest and other liabilities”). This compares to the allowance for credit losses of $44.5 million comprised of an allowance for loan losses of $43.7 million and a reserve for unfunded commitments of $779,000 at September 30, 2024. The $4.0 million increase in the allowance for credit losses for the fourth quarter of 2024 was due to a $6.0 million provision for credit losses offset by net charge-offs of $2.0 million. The increase in charge-offs in the fourth quarter of 2024 was primarily due to a decrease in the estimated fair value of collateral dependent loans and loans moved to HFS. The allowance for loan losses as a percentage of loans HFI increased to 1.56% at December 31, 2024, compared to 1.41% at September 30, 2024, due to an increase in specific reserves on one C&D loan mentioned previously. The allowance for loan losses as a percentage of nonperforming loans HFI was 68% at December 31, 2024, a decrease from 72% at September 30, 2024.

               
      For the Three Months Ended December 31, 2024     For the Year Ended December 31, 2024  
    (dollars in thousands) Allowance for loan losses     Reserve for unfunded loan commitments     Allowance for credit losses     Allowance for loan losses     Reserve for unfunded loan commitments   Allowance for credit losses  
    Beginning balance $ 43,685     $ 779     $ 44,464     $ 41,903     $ 640   $ 42,543  
    Provision for (reversal of) credit losses   6,050       (50 )     6,000       9,768       89     9,857  
    Less loans charged-off   (2,092 )     —       (2,092 )     (4,083 )     —     (4,083 )
    Recoveries on loans charged-off   86       —       86       141       —     141  
    Ending balance $ 47,729     $ 729     $ 48,458     $ 47,729     $ 729   $ 48,458  
                                                 

    Shareholders’ Equity

    At December 31, 2024, total shareholders’ equity was $507.9 million, a $1.9 million decrease compared to September 30, 2024, and a $3.4 million decrease compared to December 31, 2023. The decrease in shareholders’ equity for the fourth quarter of 2024 was due to higher net unrealized losses on available-for-sale securities of $4.2 million and common stock cash dividends paid of $2.9 million, offset by net income of $4.4 million, and equity compensation activity of $794,000. The decrease in shareholders’ equity for the year ended 2024 was due to common stock repurchases of $20.7 million, common stock cash dividends paid of $11.7 million and higher net unrealized losses on available-for-sale securities of $744,000, offset by net income of $26.7 million, and equity compensation activity of $3.1 million. Book value per share and tangible book value per share(1) decreased to $28.66 and $24.51 at December 31, 2024, down from $28.81 and $24.64 at September 30, 2024 and up from $27.47 and $23.48 at December 31, 2023.

    Contact:
    Lynn Hopkins, Chief Financial Officer
    (213) 716-8066
    lhopkins@rbbusa.com

    (1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.
       

    Corporate Overview

    RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of December 31, 2024, the Company had total assets of $4.0 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

    Conference Call

    Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, February 4, 2025, to discuss the Company’s fourth quarter 2024 financial results.

    To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 834092, conference ID RBBQ424. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 51830, approximately one hour after the conclusion of the call and will remain available through February 5, 2025.

    The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

    Disclosure

    This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

    Safe Harbor

    Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; our ability to attract and retain deposits and access other sources of liquidity; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system; the impact of future or recent changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters, including Accounting Standards Update 2016-13 (Topic 326, “Measurement of Current Losses on Financial Instruments, commonly referenced as the Current Expected Credit Losses Model, which changed how we estimate credit losses and may further increase the required level of our allowance for credit losses in future periods; market disruption and volatility; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuances of preferred stock; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2023, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

                                 
    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
                                 
      December 31,     September 30,     June 30,     March 31,     December 31,  
      2024     2024     2024     2024     2023  
    Assets                                      
    Cash and due from banks $ 27,747     $ 26,388     $ 23,313     $ 21,887     $ 22,671  
    Interest-earning deposits with financial institutions   229,998       323,002       229,456       247,356       408,702  
    Cash and cash equivalents   257,745       349,390       252,769       269,243       431,373  
    Interest-earning time deposits with financial institutions   600       600       600       600       600  
    Investment securities available for sale   420,190       305,666       325,582       335,194       318,961  
    Investment securities held to maturity   5,191       5,195       5,200       5,204       5,209  
    Loans held for sale   11,250       812       3,146       3,903       1,911  
    Loans held for investment   3,053,230       3,091,896       3,047,712       3,027,361       3,031,861  
    Allowance for loan losses   (47,729 )     (43,685 )     (41,741 )     (41,688 )     (41,903 )
    Net loans held for investment   3,005,501       3,048,211       3,005,971       2,985,673       2,989,958  
    Premises and equipment, net   24,601       24,839       25,049       25,363       25,684  
    Federal Home Loan Bank (FHLB) stock   15,000       15,000       15,000       15,000       15,000  
    Cash surrender value of bank owned life insurance   60,296       59,889       59,486       59,101       58,719  
    Goodwill   71,498       71,498       71,498       71,498       71,498  
    Servicing assets   6,985       7,256       7,545       7,794       8,110  
    Core deposit intangibles   2,011       2,194       2,394       2,594       2,795  
    Right-of-use assets   28,048       29,283       30,530       31,231       29,803  
    Accrued interest and other assets   83,561       70,644       63,416       65,608       66,404  
    Total assets $ 3,992,477     $ 3,990,477     $ 3,868,186     $ 3,878,006     $ 4,026,025  
    Liabilities and shareholders’ equity                                      
    Deposits:                                      
    Noninterest-bearing demand $ 563,012     $ 543,623     $ 542,971     $ 539,517     $ 539,621  
    Savings, NOW and money market accounts   663,034       666,089       647,770       642,840       632,729  
    Time deposits, $250,000 and under   1,007,452       1,052,462       1,014,189       1,083,898       1,190,821  
    Time deposits, greater than $250,000   850,291       830,010       818,675       762,074       811,589  
    Total deposits   3,083,789       3,092,184       3,023,605       3,028,329       3,174,760  
    FHLB advances   200,000       200,000       150,000       150,000       150,000  
    Long-term debt, net of issuance costs   119,529       119,433       119,338       119,243       119,147  
    Subordinated debentures   15,156       15,102       15,047       14,993       14,938  
    Lease liabilities – operating leases   29,705       30,880       32,087       32,690       31,191  
    Accrued interest and other liabilities   36,421       23,150       16,818       18,765       24,729  
    Total liabilities   3,484,600       3,480,749       3,356,895       3,364,020       3,514,765  
    Shareholders’ equity:                                      
    Common stock   259,957       259,280       266,160       271,645       271,925  
    Additional paid-in capital   3,645       3,520       3,456       3,348       3,623  
    Retained earnings   264,460       262,946       262,518       259,903       255,152  
    Non-controlling interest   72       72       72       72       72  
    Accumulated other comprehensive loss, net   (20,257 )     (16,090 )     (20,915 )     (20,982 )     (19,512 )
    Total shareholders’ equity   507,877       509,728       511,291       513,986       511,260  
    Total liabilities and shareholders’ equity $ 3,992,477     $ 3,990,477     $ 3,868,186     $ 3,878,006     $ 4,026,025  
                                           
                                           
             
    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (In thousands, except share and per share data) 
             
      For the Three Months Ended     For the Year Ended
      December 31, 2024   September 30, 2024   December 31, 2023     December 31, 2024   December 31, 2023
    Interest and dividend income:                              
    Interest and fees on loans $ 46,374   $ 47,326   $ 45,895     $ 184,567   $ 194,264
    Interest on interest-earning deposits   3,641     3,388     4,650       15,422     10,746
    Interest on investment securities   3,962     3,127     3,706       14,331     14,028
    Dividend income on FHLB stock   330     326     312       1,314     1,125
    Interest on federal funds sold and other   248     258     269       1,027     985
    Total interest and dividend income   54,555     54,425     54,832       216,661     221,148
    Interest expense:                              
    Interest on savings deposits, NOW and money market accounts   4,671     5,193     4,026       19,295     12,205
    Interest on time deposits   21,361     22,553     22,413       89,086     76,837
    Interest on long-term debt and subordinated debentures   1,660     1,681     2,284       6,699     9,951
    Interest on FHLB advances   886     453     440       2,217     2,869
    Total interest expense   28,578     29,880     29,163       117,297     101,862
    Net interest income before provision for credit losses   25,977     24,545     25,669       99,364     119,286
    Provision for (reversal of) credit losses   6,000     3,300     (431 )     9,857     3,362
    Net interest income after provision for (reversal of) credit losses   19,977     21,245     26,100       89,507     115,924
    Noninterest income:                              
    Service charges and fees   988     1,071     972       4,115     4,172
    Gain on sale of loans   376     447     116       1,586     374
    Loan servicing fees, net of amortization   492     605     616       2,265     2,576
    Increase in cash surrender value of life insurance   407     403     374       1,577     1,409
    (Loss) gain on OREO   —     —     (57 )     1,016     133
    Other income   466     3,220     5,373       4,776     6,354
    Total noninterest income   2,729     5,746     7,394       15,335     15,018
    Noninterest expense:                              
    Salaries and employee benefits   9,927     10,008     8,860       39,395     37,795
    Occupancy and equipment expenses   2,403     2,518     2,387       9,803     9,629
    Data processing   1,499     1,472     1,357       5,857     5,326
    Legal and professional   1,355     958     1,291       4,453     8,198
    Office expenses   399     348     349       1,455     1,512
    Marketing and business promotion   251     252     241       864     1,132
    Insurance and regulatory assessments   677     658     1,122       3,298     3,165
    Core deposit premium   182     200     215       784     923
    Other expenses   956     1,007     571       3,254     3,016
    Total noninterest expense   17,649     17,421     16,393       69,163     70,696
    Income before income taxes   5,057     9,570     17,101       35,679     60,246
    Income tax expense   672     2,571     5,028       9,014     17,781
    Net income $ 4,385   $ 6,999   $ 12,073     $ 26,665   $ 42,465
                                   
    Net income per share                              
    Basic $ 0.25   $ 0.39   $ 0.64     $ 1.47   $ 2.24
    Diluted $ 0.25   $ 0.39   $ 0.64     $ 1.47   $ 2.24
    Cash dividends declared per common share $ 0.16   $ 0.16   $ 0.16     $ 0.64   $ 0.64
    Weighted-average common shares outstanding                              
    Basic   17,704,992     17,812,791     18,887,501       18,121,764     18,965,346
    Diluted   17,796,840     17,885,359     18,900,351       18,183,319     18,985,233
                                   
                                   
         
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)
         
      For the Three Months Ended  
      December 31, 2024     September 30, 2024     December 31, 2023  
     (tax-equivalent basis, dollars in thousands) Average   Interest   Yield /     Average   Interest   Yield /     Average   Interest   Yield /  
    Balance   & Fees   Rate     Balance   & Fees   Rate     Balance   & Fees   Rate  
    Interest-earning assets                                                    
    Cash and cash equivalents (1) $ 308,455   $ 3,890   5.02 %   $ 260,205   $ 3,646   5.57 %   $ 333,940   $ 4,919   5.84 %
    FHLB Stock   15,000     330   8.75 %     15,000     326   8.65 %     15,000     312   8.25 %
    Securities                                                    
    Available for sale (2)   361,253     3,939   4.34 %     298,948     3,105   4.13 %     329,426     3,684   4.44 %
    Held to maturity (2)   5,194     48   3.68 %     5,198     46   3.52 %     5,212     46   3.50 %
    Total loans   3,059,786     46,374   6.03 %     3,069,578     47,326   6.13 %     3,055,232     45,895   5.96 %
    Total interest-earning assets   3,749,688   $ 54,581   5.79 %     3,648,929   $ 54,449   5.94 %     3,738,810   $ 54,856   5.82 %
    Total noninterest-earning assets   244,609                 242,059                 253,385            
    Total average assets $ 3,994,297               $ 3,890,988               $ 3,992,195            
                                                         
    Interest-bearing liabilities                                                    
    NOW   53,879     254   1.88 %   $ 55,757   $ 277   1.98 %   $ 54,378   $ 214   1.56 %
    Money market   463,850     3,735   3.20 %     439,936     4,093   3.70 %     422,582     3,252   3.05 %
    Saving deposits   162,351     682   1.67 %     164,515     823   1.99 %     148,354     560   1.50 %
    Time deposits, $250,000 and under   1,034,946     11,583   4.45 %     1,037,365     12,312   4.72 %     1,162,014     13,244   4.52 %
    Time deposits, greater than $250,000   835,583     9,778   4.66 %     819,207     10,241   4.97 %     781,833     9,169   4.65 %
    Total interest-bearing deposits   2,550,609     26,032   4.06 %     2,516,780     27,746   4.39 %     2,569,161     26,439   4.08 %
    FHLB advances   200,000     886   1.76 %     150,543     453   1.20 %     150,000     440   1.16 %
    Long-term debt   119,466     1,295   4.31 %     119,370     1,295   4.32 %     155,536     1,895   4.83 %
    Subordinated debentures   15,121     365   9.60 %     15,066     386   10.19 %     14,902     389   10.36 %
    Total interest-bearing liabilities   2,885,196     28,578   3.94 %     2,801,759     29,880   4.24 %     2,889,599     29,163   4.00 %
    Noninterest-bearing liabilities                                                    
    Noninterest-bearing deposits   539,900                 528,081                 535,554            
    Other noninterest-bearing liabilities   56,993                 52,428                 61,858            
    Total noninterest-bearing liabilities   596,893                 580,509                 597,412            
    Shareholders’ equity   512,208                 508,720                 505,184            
    Total liabilities and shareholders’ equity $ 3,994,297               $ 3,890,988               $ 3,992,195            
    Net interest income / interest rate spreads       $ 26,003   1.85 %         $ 24,569   1.70 %         $ 25,693   1.82 %
    Net interest margin             2.76 %               2.68 %               2.73 %
                                                         
    Total cost of deposits $ 3,090,509   $ 26,032   3.35 %   $ 3,044,861   $ 27,746   3.63 %   $ 3,104,715   $ 26,439   3.38 %
    Total cost of funds $ 3,425,096   $ 28,578   3.32 %   $ 3,329,840   $ 29,880   3.57 %   $ 3,425,153   $ 29,163   3.38 %
                                                         

    ____________________

    (1) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3) Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.
       
         
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)
         
      For the Year Ended  
      December 31, 2024     December 31, 2023  
     (tax-equivalent basis, dollars in thousands) Average   Interest   Yield /     Average   Interest   Yield /  
    Balance   & Fees   Rate     Balance   & Fees   Rate  
    Interest-earning assets                                  
    Cash and cash equivalents (1) $ 297,331   $ 16,449   5.53 %   $ 216,851   $ 11,731   5.41 %
    FHLB Stock   15,000     1,314   8.76 %     15,000     1,125   7.50 %
    Securities                                  
    Available for sale (2)   324,644     14,242   4.39 %     331,357     13,928   4.20 %
    Held to maturity (2)   5,200     188   3.62 %     5,509     198   3.59 %
    Total loans   3,041,337     184,567   6.07 %     3,205,625     194,264   6.06 %
    Total interest-earning assets   3,683,512   $ 216,760   5.88 %     3,774,342   $ 221,246   5.86 %
    Total noninterest-earning assets   243,258                 246,980            
    Total average assets $ 3,926,770               $ 4,021,322            
                                       
    Interest-bearing liabilities                                  
    NOW $ 56,158     1,105   1.97 %   $ 58,191   $ 725   1.25 %
    Money market   436,925     15,231   3.49 %     429,102     10,565   2.46 %
    Saving deposits   162,243     2,959   1.82 %     126,062     915   0.73 %
    Time deposits, $250,000 and under   1,074,291     50,059   4.66 %     1,146,513     47,150   4.11 %
    Time deposits, greater than $250,000   803,187     39,027   4.86 %     742,839     29,687   4.00 %
    Total interest-bearing deposits   2,532,804     108,381   4.28 %     2,502,707     89,042   3.56 %
    FHLB advances   162,705     2,217   1.36 %     172,219     2,869   1.67 %
    Long-term debt   119,324     5,182   4.34 %     169,182     8,477   5.01 %
    Subordinated debentures   15,039     1,517   10.09 %     14,821     1,474   9.95 %
    Total interest-bearing liabilities   2,829,872     117,297   4.14 %     2,858,929     101,862   3.56 %
    Noninterest-bearing liabilities                                  
    Noninterest-bearing deposits   531,458                 602,291            
    Other noninterest-bearing liabilities   53,970                 59,562            
    Total noninterest-bearing liabilities   585,428                 661,853            
    Shareholders’ equity   511,470                 500,540            
    Total liabilities and shareholders’ equity $ 3,926,770               $ 4,021,322            
    Net interest income / interest rate spreads       $ 99,463   1.74 %         $ 119,384   2.30 %
    Net interest margin             2.70 %               3.16 %
                                       
    Total cost of deposits $ 3,064,262   $ 108,381   3.54 %   $ 3,104,998   $ 89,042   2.87 %
    Total cost of funds $ 3,361,330   $ 117,297   3.49 %   $ 3,461,220   $ 101,862   2.94 %
                                       

    ____________________

    (1) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3) Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.
       
               
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
               
      At or for the Three Months Ended     At or for the Year Ended December 31,  
      December 31,   September 30,     December 31,                  
        2024     2024     2023     2024     2023  
    Per share data (common stock)                                  
    Book value $ 28.66     $ 28.81     $ 27.47     $ 28.66     $ 27.47  
    Tangible book value (1) $ 24.51     $ 24.64     $ 23.48     $ 24.51     $ 23.48  
    Performance ratios                                  
    Return on average assets, annualized   0.44 %     0.72 %     1.20 %     0.68 %     1.06 %
    Return on average shareholders’ equity, annualized   3.41 %     5.47 %     9.48 %     5.21 %     8.48 %
    Return on average tangible common equity, annualized (1)   3.98 %     6.40 %     11.12 %     6.09 %     9.97 %
    Noninterest income to average assets, annualized   0.27 %     0.59 %     0.73 %     0.39 %     0.37 %
    Noninterest expense to average assets, annualized   1.76 %     1.78 %     1.63 %     1.76 %     1.76 %
    Yield on average earning assets   5.79 %     5.94 %     5.82 %     5.88 %     5.86 %
    Yield on average loans   6.03 %     6.13 %     5.96 %     6.07 %     6.06 %
    Cost of average total deposits (2)   3.35 %     3.63 %     3.38 %     3.54 %     2.87 %
    Cost of average interest-bearing deposits   4.06 %     4.39 %     4.08 %     4.28 %     3.56 %
    Cost of average interest-bearing liabilities   3.94 %     4.24 %     4.00 %     4.14 %     3.56 %
    Net interest spread   1.85 %     1.70 %     1.82 %     1.74 %     2.30 %
    Net interest margin   2.76 %     2.68 %     2.73 %     2.70 %     3.16 %
    Efficiency ratio (3)   61.48 %     57.51 %     49.58 %     60.30 %     52.64 %
    Common stock dividend payout ratio   64.00 %     41.03 %     25.00 %     43.54 %     28.57 %
                                           

    ____________________

    (1) Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
    (2) Total deposits include non-interest bearing deposits and interest-bearing deposits.
    (3) Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.
       
         
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
         
      At or for the quarter ended  
      December 31,     September 30,     December 31,  
      2024     2024     2023  
    Credit Quality Data:                      
    Special mention loans $ 65,329     $ 77,501     $ 32,842  
    Special mention loans to total loans   2.14 %     2.51 %     1.08 %
    Substandard loans HFI $ 89,141     $ 79,831     $ 61,099  
    Substandard loans HFS $ 11,195     $ —     $ —  
    Substandard loans HFI to total loans HFI   2.92 %     2.58 %     2.02 %
    Loans 30-89 days past due, excluding nonperforming loans $ 22,086     $ 10,625     $ 16,803  
    Loans 30-89 days past due, excluding nonperforming loans, to total loans   0.72 %     0.34 %     0.55 %
    Nonperforming loans HFI $ 69,843     $ 60,662     $ 31,619  
    Nonperforming loans HFS $ 11,195     $ —     $ —  
    OREO $ —     $ —     $ —  
    Nonperforming assets $ 81,038     $ 60,662     $ 31,619  
    Nonperforming loans HFI to total loans HFI   2.29 %     1.96 %     1.04 %
    Nonperforming assets to total assets   2.03 %     1.52 %     0.79 %
                           
    Allowance for loan losses $ 47,729     $ 43,685     $ 41,903  
    Allowance for loan losses to total loans HFI   1.56 %     1.41 %     1.38 %
    Allowance for loan losses to nonperforming loans HFI   68.34 %     72.01 %     132.52 %
    Net charge-offs $ 2,006     $ 1,201     $ 109  
    Net charge-offs to average loans   0.26 %     0.16 %     0.01 %
                           
    Capital ratios (1)                      
    Tangible common equity to tangible assets (2)   11.08 %     11.13 %     11.06 %
    Tier 1 leverage ratio   11.92 %     12.19 %     11.99 %
    Tier 1 common capital to risk-weighted assets   17.94 %     18.16 %     19.07 %
    Tier 1 capital to risk-weighted assets   18.52 %     18.75 %     19.69 %
    Total capital to risk-weighted assets   24.49 %     24.80 %     25.92 %
                           

    ____________________

    (1 ) December 31, 2024 capital ratios are preliminary.
    (2 ) Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.
         
                   
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
                   
    Loan Portfolio Detail As of December 31, 2024   As of September 30, 2024     As of December 31, 2023  
    (dollars in thousands) $   %   $     %     $     %  
    Loans:                                    
    Commercial and industrial $ 129,585   4.2 %   $ 128,861     4.2 %   $ 130,096     4.3 %
    SBA   47,263   1.5 %     48,089     1.6 %     52,074     1.7 %
    Construction and land development   173,290   5.7 %     180,196     5.8 %     181,469     6.0 %
    Commercial real estate (1)   1,201,420   39.3 %     1,252,682     40.5 %     1,167,857     38.5 %
    Single-family residential mortgages   1,494,022   48.9 %     1,473,396     47.7 %     1,487,796     49.1 %
    Other loans   7,650   0.4 %     8,672     0.2 %     12,569     0.4 %
    Total loans (2) $ 3,053,230   100.0 %   $ 3,091,896     100.0 %   $ 3,031,861     100.0 %
    Allowance for loan losses   (47,729 )       (43,685 )           (41,903 )      
    Total loans, net $ 3,005,501       $ 3,048,211           $ 2,989,958        
                                         

    _____________________

    (1) Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
    (2) Net of discounts and deferred fees and costs of $488, $467, and $542 as of December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
       
                   
    Deposits As of December 31, 2024   As of September 30, 2024     As of December 31, 2023  
    (dollars in thousands) $   %   $   %     $   %  
    Deposits:                                
    Noninterest-bearing demand $ 563,012   18.3 %   $ 543,623   17.6 %   $ 539,621   17.0 %
    Savings, NOW and money market accounts   663,034   21.5 %     666,089   21.5 %     632,729   19.9 %
    Time deposits, $250,000 and under   882,438   28.6 %     926,877   30.0 %     876,918   27.6 %
    Time deposits, greater than $250,000   827,854   26.8 %     808,304   26.1 %     719,892   22.7 %
    Wholesale deposits (1)   147,451   4.8 %     147,291   4.8 %     405,600   12.8 %
    Total deposits $ 3,083,789   100.0 %   $ 3,092,184   100.0 %   $ 3,174,760   100.0 %
                                       

    ______________________

    (1) Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.
       

    Non-GAAP Reconciliations

    Tangible Book Value Reconciliations

    Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of December 31, 2024, September 30, 2024, and December 31, 2023.

                         
    (dollars in thousands, except share and per share data) December 31, 2024     September 30, 2024     December 31, 2023  
    Tangible common equity:                      
    Total shareholders’ equity $ 507,877     $ 509,728     $ 511,260  
    Adjustments                      
    Goodwill   (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible   (2,011 )     (2,194 )     (2,795 )
    Tangible common equity $ 434,368     $ 436,036     $ 436,967  
    Tangible assets:                      
    Total assets-GAAP $ 3,992,477     $ 3,990,477     $ 4,026,025  
    Adjustments                      
    Goodwill   (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible   (2,011 )     (2,194 )     (2,795 )
    Tangible assets $ 3,918,968     $ 3,916,785     $ 3,951,732  
    Common shares outstanding   17,720,416       17,693,416       18,609,179  
    Common equity to assets ratio   12.72 %     12.77 %     12.70 %
    Tangible common equity to tangible assets ratio   11.08 %     11.13 %     11.06 %
    Book value per share $ 28.66     $ 28.81     $ 27.47  
    Tangible book value per share $ 24.51     $ 24.64     $ 23.48  
                           
                           

    Return on Average Tangible Common Equity

    Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

               
      Three Months Ended     Year Ended December 31,  
    (dollars in thousands) December 31, 2024     September 30, 2024     December 31, 2023     2024     2023  
    Net income available to common shareholders $ 4,385     $ 6,999     $ 12,073     $ 26,665     $ 42,465  
    Average shareholders’ equity   512,208       508,720       505,184       511,470       500,540  
    Adjustments:                                      
    Average goodwill   (71,498 )     (71,498 )     (71,498 )     (71,498 )     (71,498 )
    Average core deposit intangible   (2,129 )     (2,326 )     (2,935 )     (2,425 )     (3,282 )
    Adjusted average tangible common equity $ 438,581     $ 434,896     $ 430,751     $ 437,547     $ 425,760  
    Return on average common equity   3.41 %     5.47 %     9.48 %     5.21 %     8.48 %
    Return on average tangible common equity   3.98 %     6.40 %     11.12 %     6.09 %     9.97 %

    The MIL Network –

  • MIL-OSI New Zealand: Pacific – Fiji to enjoy real estate growth in 2025 driven by foreign investment, infrastructure developments and Google’s data centre plans

    Source: Raine & Horne

    Leading real estate firm Raine & Horne Fiji predicts growth of 2-4% growth for residential markets such as Suva, Nadi and Lautoka in 2025.

    Highlights:

    • The Fijian real estate market demonstrated strong resilience in 2024, with sustained demand for residential properties in key urban centres, including Suva, Nadi, and Lautoka. This trend is expected to result in healthy real estate growth of up to 4% in 2025.
    • The recent announcement of Google’s FJ$200 million data centre investment, expected to create 3,600 jobs, is set to significantly boost the residential real estate markets in Fiji.
    • Infrastructure developments, growing tourism, and the expansion of short-term rentals continue to drive residential property demand in key locations such as Pacific Harbour.

    Lautoka, Fiji – 4 February 2025 – The Fijian real estate market demonstrated strong resilience in 2024, with steady demand for residential properties in key urban centres such as Suva, Nadi, and Lautoka.

    This positive trend is expected to drive healthy growth of up to 4% in 2025, according to leading real estate firm Raine & Horne Fiji. This outlook is further buoyed by the recent announcement of Google’s FJ$200 million data centre investment in the Pacific nation, which is set to bolster the local economy and real estate market.

    Fiji’s real estate growth in 2024

    Ms Shyamlee Raju, Managing Director of Raine & Horne Fiji, says that in 2024, there was sustained demand for residential properties, particularly in Suva, Nadi, and Lautoka, thanks to a growing number of local workers and expatriates leasing apartments.

    “The rebound in tourism, combined with ongoing recovery from COVID-19 impacts, has been a major driver,” Ms Raju said.  

    “Overall, real estate prices in Fiji saw moderate growth in 2024, with some areas such as Nadi and parts of Suva experiencing higher price increases due to ongoing infrastructure developments, such as improvements in transportation, utilities, and tourism-related facilities.

    Google’s game-changer for Fiji’s real estate market and economic growth

    One of the most significant developments in Fiji is the announcement of Google’s FJ$200 million data centre investment, which, according to the Fijian government, has the potential to create 3,600 jobs[i].

    Ms Raju said, “Jobs created by the data centre will generate greater demand for residential housing, particularly for professionals moving to Fiji to work in or around the tech industry. The Google announcement could spur growth in the rental market and the demand for homes for sale.”

    To illustrate, a luxurious three-bedroom penthouse in the heart of Suva within the Brightstar Apartment block on Berry Road is available for rent through Raine & Horne Fiji and is set to attract well-heeled tenants.

    Ms Raju said, “This is the most sought-after executive rental property in the heart of Suva available right now, and it is within minutes of the city’s CBD, supermarkets, cafes, restaurants, schools, cinemas and the iconic Colonial War Memorial Hospital.

    “This penthouse would be ideal for high-end expatriates and those interested in moving to Fiji for work.”

    Other factors driving residential property demand

    The demand for short-term rental properties, particularly for Airbnb holiday rentals, has contributed to rising property prices in Nadi, Suva and Lautoka.

    “We have seen a growing number of apartments and properties purchased as Airbnbs, which is a hindrance for tenants looking for long-term tenancy,” commented Ms Raju.

    “Most properties in Nadi are now run as Airbnbs.”

    Pacific Harbour and infrastructure developments

    According to Ms Raju, demand for real estate in Pacific Harbour, the tourist mecca on the south coast of Viti Levu, was a notable trend in 2024. Pacific Harbour’s natural beauty, improved accessibility to Suva, which is 50 kilometres away, and relatively affordable property prices compared to other regions drove the demand.

    In November alone, Raine & Horne Fiji sold four lots in one week in Pacific Harbour, a significant achievement that underscores the confidence in this market.

    Ms Raju added, “Infrastructure improvements, such as better road access to Suva and the development of tourism-related facilities, are making Pacific Harbour an attractive location for both local buyers and expatriates seeking vacation homes or retirement properties.”

    Fiji’s real estate market poised for steady growth in 2025

    Ms Raju is optimistic about 2025, and she is predicting growth of 2-4% across most regions of Fiji.

    “While economic uncertainties and interest rates could introduce some challenges, the fundamentals of infrastructure development, tourism recovery, and increasing foreign investment provide a solid foundation for market growth,” said Ms Raju.

    Raine & Horne Fiji also anticipates an increase in foreign investment in the country’s real estate market in 2025. Several factors are driving this optimism, including the upcoming Google Data Centre, will potentially attract international interest.

    “Additionally, continued Fijian tourism growth is appealing to foreign buyers, particularly the luxury resorts, beachfront properties, and vacation homes,” said Ms Raju.

    “Strong government support for foreign investment further underpins the longer-term outlook, positioning Fiji as an attractive real estate market for international buyers seeking opportunities in real estate.”

    In response to this promising growth and outlook, Raine & Horne Fiji plans to expand its network of residential sales agents and offices to better serve local and international clients.

    “We are focused on providing tailored advice to first-time homebuyers, expatriates, and foreign investors,” said Ms Raju.

    “Our goal is to remain adaptable and embrace digital tools such as Raine & Horne’s first-to-market AI-powered social media marketing tool Amplify[ii] to expand market reach, keeping up with trends like sustainability and tech-driven developments.

    “Raine & Horne Fiji has the expertise and resources to adapt to these trends and developments, providing clients with the insights, services, and support they need to succeed in the Fijian residential real estate market.

    “With a promising outlook and a growing market, Raine & Horne Fiji is well-positioned to capitalise on the country’s real estate potential in 2025.”

    MIL OSI New Zealand News –

  • MIL-OSI Global: Musk’s inauguration salute is not the only apparent fascist signal from Trump’s administration

    Source: The Conversation – USA – By Matthew Kriner, Director of Strategy, Partnerships and Intelligence at the Center on Terrorism, Extremism, and Counterterrorism, Middlebury Institute of International Studies

    Elon Musk claimed this is not a Nazi salute − but then replied to critics with Nazi-themed puns. Angela Weiss/AFP via Getty Images)

    Once again, a presidential administration headed by Donald Trump is in the spotlight over allegations of hidden fascist sympathies. This time, it’s precipitated by what one observer called a “stiff-armed salute” that presidential supporter and adviser Elon Musk did twice during inauguration festivities.

    Critics have said it is a clear Nazi salute, while others have claimed it was just an awkward motion. Perhaps it was just the world’s worst dab.

    Musk turned the controversy over his gesture into something like a joke about Nazis. On X, he posted, “Don’t say Hess to Nazi accusations!” and “Bet you did nazi that coming.”

    This is not the first time that Trump or someone close to him has been accused of sending fascist messages, even if they denied doing so. Nor even is it the first time a well-known figure endorsing Donald Trump has been accused of giving a Nazi salute.

    As a scholar of far-right extremism, I regularly review instances of coded fascist symbols and other right-wing messages being sent by public figures and their supporters, some more obvious than others.

    In plain sight

    Like Musk, TV commentator Laura Ingraham ended a fiery speech endorsing then-candidate Trump in 2016 with a rigidly outstretched arm with her palm down – in the exact manner German Nazis in the 1930s and 1940s and rank-and-file modern neo-Nazis perform the “Sieg Heil,” or Nazi salute. Ingraham dismissed the criticism and in 2025 defended Musk’s action.

    Laura Ingraham speaks and gestures at a Trump rally in 2016.

    In 2021, the Conservative Political Action Conference set up its center stage in the shape of an odal rune. That is an ancient pagan symbol coopted by Germany’s Nazi regime and worn prominently during World War II on the uniforms of the brutal Waffen SS units. Social media erupted in outrage over the likeness, and columnists spilled much ink. Event organizers rejected the criticism, calling it “outrageous and slanderous.”

    Trump himself has been reluctant to criticize white supremacists. In August 2017, he responded to a reporter’s statement that neo-Nazis had “started” the violence during and after a rally they held in Charlottesville, Virginia, by saying “(t)hey didn’t put themselves down as neo-Nazis. And you had some very bad people in that group. But you also had people that were very fine people on both sides.”

    During the September 2020 presidential debate, Trump responded to a request from moderator Chris Wallace to condemn right-wing paramilitary groups by instead referencing one of them, saying, “Proud Boys, stand back and stand by.”

    Just a few months later, several Proud Boys members would help spearhead the violent insurrection against the peaceful transfer of power at the U.S. Capitol on Jan. 6, 2021. Some of them were convicted of federal crimes for their efforts, though upon retaking office in 2025, Trump pardoned them or commuted their sentences.

    More overtly, in November 2022 Trump invited Kanye West to dinner at Mar-a-Lago, despite West’s having posted antisemitic remarks recently on social media. Also at the dinner was well-known antisemite and white supremacist Nick Fuentes, whom Trump denied knowing anything about ahead of time, saying he arrived “unexpectedly” with West.

    The night before the ‘Unite the Right’ rally in Charlottesville, Va., in August 2017, people carrying torches and chanting fascist slogans marched through the University of Virginia campus.

    Coded messages

    In other more abstract and lesser-known incidents, Trump may make his sympathies known without making direct statements himself. And I have personally observed white supremacists remark upon – and take encouragement from – these implied messages on Telegram channels dedicated to antisemitism and hate.

    In February 2018, during Trump’s first term as president, the Department of Homeland Security issued a 14-word press release titled “We Must Secure The Border And Build The Wall To Make America Safe Again.” I and other investigators of far-right extremism attributed this phrase’s use to a clear dog whistle of the common white supremacist saying known as “the 14 words” – “we must secure the existence of our people and a future for white children.”

    In June 2020, Facebook removed Trump campaign ads for iconography invoking Nazi concentration camp symbols that “violat(ed) our policy against organized hate.” A campaign official disputed the association, saying other groups, including Facebook and anti-fascist groups, used the same symbol.

    In September 2024, pro-Trump CEO Mike Lindell’s company MyPillow ran a sale discounting a pillow from $49.98 to $14.88. Critics quickly pointed out that this aligned with the 14-word white supremacist slogan and the numerical reference “88” that white supremacists use to mean “Heil Hitler,” because H is the eighth letter of the alphabet. Lindell denied any connection between the price and right-wing messaging.

    A list of the 14 people whose Jan. 6-related sentences President Donald Trump commuted.
    Screenshot of WhiteHouse.gov

    And on the very day he was inaugurated for his second term, Trump pardoned more than 1,500 people, including at least two alleged members of the Proud Boys, for their actions on Jan. 6, 2021. And he commuted the sentences of 14 people, including four members of the Proud Boys.

    This extraordinary move was applauded by Proud Boys leader Enrique Tarrio, who was among those pardoned. Others who received presidential clemency said they were grateful to Trump and encouraged by his action.

    Signaling fascism

    Sending these sorts of fascist and white supremacist messages allow Trump and his supporters to court right-wing extremist supporters while claiming innocence in the face of public outrage.

    If they deny the allegations of veiled fascism or white supremacy, Trump and his backers can claim their opponents are inflamed against them and conducting ideological witch hunts.

    Family members and friends of people imprisoned for their actions on Jan. 6, 2021, wait outside the Washington, D.C., jail for their release on Jan. 22, 2025.
    Celal Gunes/Anadolu via Getty Images

    But failure to directly deny allegations of fascism is a common strategy used by far-right and radical conservative movements seeking to obscure deeper links to extremist groups to avoid public backlash.

    The lack of explicit admission can end up leaving these actions and symbols open to interpretation. Trump’s MAGA movement members, led by his inner circle of advisers and lieutenants, have consistently sought to use outrage and anger to generate additional momentum and attention for their agenda.

    But as the old saying goes, “where there’s smoke there’s fire” – and in this case the smoke is probably closer to a book-burning bonfire in Berlin than a tiki torch carried in Charlottesville.

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

    – ref. Musk’s inauguration salute is not the only apparent fascist signal from Trump’s administration – https://theconversation.com/musks-inauguration-salute-is-not-the-only-apparent-fascist-signal-from-trumps-administration-248517

    MIL OSI – Global Reports –

  • MIL-OSI United Nations: Press Conference by Security Council President on Programme of Work for February

    Source: United Nations General Assembly and Security Council

    The Security Council’s February programme of work will feature a signature event on practising multilateralism and reforming and improving global governance, its President for the month announced at a Headquarters press conference today.

    “As the world enters a very turbulent period, the open debate aims to encourage countries to revisit the original aspirations of the [United Nations],” said Fu Cong of China, which has assumed the rotating presidency of the 15-nation organ.  This high-level meeting, scheduled for 18 February, will be chaired by his country’s Foreign Minister, Wang Yi, he said, encouraging foreign ministers and senior officials of other countries to attend.

    The Middle East will remain a priority on the Council’s agenda this month, he said, noting briefings on the Palestinian issue, Syria and Yemen.  The Gaza situation remains fragile, and the Council needs to ensure full implementation of the ceasefire agreement and unhindered humanitarian access.  Also highlighting reports of the Israel Defense Forces’ military attacks on Sunday, 2 February, against residential blocks in Jenin, he said the Council is considering a possible meeting to address this.

    It will also pay close attention to the challenges facing United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), he added. On Syria, he said, the Council’s focus is on supporting that country in maintaining unity, restoring stability and starting a credible and inclusive political transition.

    Turning to Africa, he noted that the situation in eastern Democratic Republic of the Congo “is deteriorating rapidly which could further jeopardize peace and security of the region”.  The Council’s actions must be conducive to the cessation of hostilities and easing of tensions there.  The programme of work for February also includes briefings on UN missions in South Sudan, Libya and the Central African Republic, as well as the situation in Sudan, he said.  Pointing to the volatile security and humanitarian situations in many countries on the continent, he said, as President, “China will work with other Council members, the A3 [Council members representing African countries] in particular, to promote dialogue and consultation and seek political solutions on African issues.”

    The Council will also consider the Secretary-General’s semi-annual report on the threat posed by Islamic State in Iraq and the Levant (ISIL/Da’esh), he said, describing it as an opportunity to further coordinate counter-terrorism efforts.  It will also conduct its annual dialogue with the peacekeeping police, and will hold consultations on the Security Council Committee pursuant to resolution 1718 (2006), regarding sanctions relating to the Democratic People’s Republic of Korea.  China will “encourage Council members to consult with each other to enhance trust and bridge differences”, he said, noting that the presidency will invite civil society representatives to participate in relevant meetings and keep in close contact with the media.

    In the ensuing conversation with correspondents, Ambassador Fu elaborated on the open debate on multilateralism, noting the increasing calls in the international community, particularly among the Global South countries, for reforming the global governance system.  Rather than “dismantling the existing system or reinventing the wheel”, the aim is to build a more equitable system that addresses the global governance deficit, he said.  He also stressed the need to enhance the Council’s ability to respond to crises, adding that “solidarity and cooperation are being replaced by division and confrontation”, as a result of which, the Council has been unable to discharge its responsibilities.  The core of the diplomatic mission is to build bridges, he said, adding that the Council must return to the path of multilateralism.

    Mr. Fu took several questions concerning the new United States President Donald J. Trump’s “America First” policy, its impact on the United Nations, as well as the 10 per cent tariffs he recently imposed on Chinese goods.  His country considers the tariff increases unwarranted, he said, and will file a complaint to the World Trade Organization (WTO).  “There is no winner in a trade war,” he emphasised, and noting that the excuse for raising tariffs is fentanyl, he said China has stringent regulations on that and related substances.  The United States should look at its own problems, including the “demand side of fentanyl”, he advised.

    China and the United States have much in common, he said, adding that it is essential they cooperate on global issues such as climate change and terrorism.  Further, as the two biggest financial contributors “within this house”, he said both countries have similar concerns about improving the efficiency of the United Nations.  All these offer avenues of cooperation, he said.

    He also took a question on United States’ claims that China has influence over the Panama Canal and surrounding areas, and the subsequent statement by Panama’s President about leaving the Belt and Road initiative.  Such an action would be regrettable, he said, stressing that his country has not participated or interfered in the management or operation of the Canal.  The Panama Belt and Road initiative is an economic platform to enable Global South countries to cooperate with each other, he said, adding that the “smear campaign launched by the US and other Western countries on this initiative is totally groundless”.

    Regarding competition with the United States on artificial intelligence (AI) he noted that the Chinese AI tool DeepSeek has caused “some commotion or panic in certain quarters” and encouraged the correspondents to use it to write their news reports.  Technological restrictions do not work, he said, adding:  “Never ever underestimate the ingenuity of Chinese scientists and engineers.”  The world must ensure the benefits of artificial intelligence are available to all countries and there are guardrails to prevent it from being misused, he said, noting that his country put forward the Assembly resolution concerning cooperation on this matter.

    Responding to various questions concerning the conflict in the Democratic Republic of the Congo, he said a ceasefire is a priority — the 23 March Movement (M23) and Rwandan troops must withdraw from the territories they occupied.  Encouraging Rwanda and the Democratic Republic of the Congo to engage in peace talks, he noted that one Council member has floated the idea of a resolution on this topic, which his country will support in its national and presidential capacity.  The territorial integrity of the Democratic Republic of the Congo must be protected, he said, calling on parties to respond to mediation efforts.

    On meetings concerning Ukraine, he noted proposals from Member States to mark the upcoming 25 February anniversary of the beginning of the conflict in that country.  China is obliged to make proper arrangements according to rules of procedures, he said, adding that it is also crucial to highlight that conflict’s ramifications on the food and energy security, as well as maritime transportation. 

    For the full programme of work, please see:  www.un.org/securitycouncil/events/calendar.

    MIL OSI United Nations News –

  • MIL-OSI Australia: $41 million in payroll tax-free wages claimed under Bulk-Billing Support Initiative, supporting primary healthcare

    Source: New South Wales Premiere

    Published: 4 February 2025

    Released by: Minister for Finance, Minister for Health

    Bulk-billing GPs have claimed more than $41 million in payroll tax-free wages under the Minns Labor Government’s Bulk-Billing Support Initiative in the first three months.

    This allows GP clinics to keep offering bulk-billed appointments and ensure primary healthcare is affordable and available to families and households across NSW.

    Between 4 September 2024 and 31 December 2024 clinics claimed a rebate on $41,575,708 of GP wages, resulting in a $2,244,205 payroll tax rebate.

    GP clinics in metropolitan Sydney have claimed 55 per cent of the payroll tax rebate, while clinics in the rest of the state have claimed the remaining 45 per cent.

    Under the $189 million initiative, the NSW Government established an ongoing payroll tax rebate for clinics employing contractor GPs which meet bulk-billing thresholds. It also waived $104 million of historical payroll tax liabilities which began accruing under the previous Liberal-National Government.

    Before creating the Bulk-Billing Support Initiative, medical peak bodies warned that without action on the historical tax liabilities GP clinics would close and that half of clinics were prepared to pass on a $20 fee to patients to cover their tax obligations.

    The eligibility threshold for the payroll tax rebate – 80% in metropolitan Sydney and 70% in other areas of NSW – was designed to support current bulk-billing levels, provide accessible and affordable primary healthcare, and relieve pressure on the state’s emergency departments.

    The Bulk-Billing Support Initiative is the first time the NSW government has intervened to support bulk-billing. It is designed to relieve pressure on emergency departments, with NSW Health estimating that a 1 per cent decrease in bulk-billing equates to around 3,000 additional emergency presentations.

    Revenue NSW expects more clinics to register throughout the year, and claim part of their annual return at the end of the 2024-25 financial year.

    The Bulk-Billing Support Initiative’s tax rebate covers GP appointments which are bulk-billed to patients covered by Medicare or veterans with a Gold, White or Orange DVA card.

    Quotes attributable to Minister for Health Ryan Park:

    “The lack of access and availability of bulk-billing GPs is taking an enormous toll on our hospitals.

    “This initiative is critical to alleviating pressure on our emergency departments.”

    Quotes attributable to Minister for Finance Courtney Houssos:

    “This is the first time the NSW Government has made a strategic investment to support bulk-billing rates.

    “By relieving cost pressures on GP clinics, they can keep bulk-billed appointments available and accessible to patients.

    “This is an important step as we roll out the Bulk-Billing Support Initiative and shows the government is delivering important cost-of-living relief to families and households across NSW.

    “It’s encouraging to see clinics begin to take up the Bulk-Billing Support Initiative. As we progress through the year we expect to see more clinics claiming the rebate and the benefits flowing to patients and their families.”

    MIL OSI News –

  • MIL-OSI Security: Delaware County Man Convicted at Trial of Defrauding Pandemic Relief Programs of $8.4 Million

    Source: Office of United States Attorneys

    PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Francis J. Battista, 39, of Aston, Pennsylvania, was convicted at trial on all charges against him — 12 counts of wire fraud, three counts of aggravated identity theft, and seven counts of money laundering — for defrauding federal COVID-19 assistance programs of $8.4 million. United States District Court Judge Paul S. Diamond remanded the defendant into custody following the verdict on Friday afternoon.

    Battista was charged by indictment with these offenses in June of 2022.

    As proven at trial, between March 2020 and June 2021, the defendant fraudulently applied for 19 loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, seeking over $10 million in proceeds. PPP and EIDL were federal government programs intended to provide emergency financial assistance to small businesses and their workers, who were suffering the economic effects of the COVID-19 pandemic.

    Battista applied for one fraudulent PPP loan using his own name, and submitted fake and fabricated documents in support of the application. For the rest of his applications, he used other people’s names and personal identifying information on applications and the bogus support documents submitted in support of those applications. In one instance, Battista falsely renewed the Pennsylvania photo ID card of a deceased family friend, had it mailed to his house, and then used it to apply for a PPP loan.

    Nine of Battista’s 19 loan applications were funded, with the defendant receiving $8.4 million in PPP payments. Battista used the proceeds of the loans to attempt to purchase waterfront property in Florida, buy a Range Rover, engage in risky stock trading that resulted in millions of dollars of losses, and pay for his children’s private school, among other unauthorized expenses.

    The government has located and seized $6.3 million of those funds through forfeiture proceedings.

    Battista will be sentenced on a date to be determined and faces a maximum possible sentence of 316 years in prison.

    “Frank Battista tried to cash in on a public health crisis, diverting federal money meant to support businesses and workers hobbled by the pandemic,” said U.S. Attorney Romero. “He didn’t care that he was defrauding the government and all of us taxpayers — he just wanted to live larger on somebody else’s dime. As his case shows, my office and our partners are committing to prosecuting these shameless COVID crooks and holding them fully accountable.”

    “Mr. Battista took advantage of our nation’s generosity in a time of need by fraudulently applying for and obtaining COVID-19 program funds,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation.  “IRS-CI, along with our law enforcement partners, will continue to aggressively investigate those who scheme to exploit federal relief programs for their personal gain.”  

    “The Secret Service is proud to work alongside our federal partners to bring these defendants to justice,” said Glenn M. Dennis, Special Agent in Charge of the U.S. Secret Service. “Criminals exploiting the Paycheck Protection Program and Economic Injury Disaster Loan Program steal valuable funds from the American taxpayer and from businesses who rightfully needed these programs to continue operation during the pandemic. The Secret Service is committed to continuing our work with federal, state, and local law enforcement to track down and prosecute those who abused the PPP and EDIL Programs.”

    The case was investigated by the U.S. Treasury Inspector General for Tax Administration, U.S. Small Business Administration Office of Inspector General, Internal Revenue Service Criminal Investigation, and the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorneys Nancy E. Potts and Eric D. Gill.

    MIL Security OSI –

  • MIL-OSI: PHH Mortgage Enhances Proprietary Client Technology With AI Assistant

    Source: GlobeNewswire (MIL-OSI)

    WEST PALM BEACH, Fla., Feb. 03, 2025 (GLOBE NEWSWIRE) — PHH Mortgage (“PHH” or the “Company”), a subsidiary of Onity Group Inc. (NYSE: ONIT) and a leading non-bank mortgage servicer and originator, today announced that the Company has launched an AI assistant through its LoanSpan client reporting and analytics platform to enhance the client experience.

    LoanSpan’s AI assistant (“LASI”) is focused on making it easier for clients to access the vast amounts of data within the platform. LASI can quickly analyze text queries and provide personalized and accurate responses. LASI is currently available for PHH subservicing clients on LoanSpan.com.

    Key LASI features and benefits include:

    • Ability to retrieve answers from hundreds of documents and sources, such as policies and procedures, user manuals, client communications, presentations, educational videos and more
    • Intelligence to understand unstructured questions at a detailed level and provide thorough responses
    • Eliminates the need to manually search and review various documents
    • Seamlessly escalates questions to PHH’s Client Relations team
    • Built-in security measures to protect sensitive information

    “We are excited to launch LASI as it demonstrates our continued commitment to leveraging the latest technology to create better experiences for our clients and their homeowners,” said Walt Mullen, Executive Vice President and Chief Strategy Officer at Onity Group. “Our goal with LASI is to make it simple and easy for clients to get the information they need whenever they need it and with significantly less effort.”

    LoanSpan is PHH’s proprietary knowledge platform designed for its subservicing clients to access a wealth of information about their customers and their portfolio, as well as various tools and resources. Clients can also utilize an integrated analytics tool to view customizable dashboards to monitor portfolio and loan-level performance and KPIs. The platform is a “one-stop shop” for PHH’s clients, many of whom have said it is a best-in-class offering for both loan and customer data and insights. LoanSpan completed a comprehensive upgrade in 2023 to enhance the user interface and incorporate additional self-service tools. LASI is an investment in the latest technology and demonstrates PHH’s commitment to constant improvement to meet the needs of its clients.

    About Onity Group

    Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs to consumers and business clients. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.

    Forward Looking Statements

    This press release contains 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. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as “expect”, “believe”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan” “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words, and includes statements in this press release regarding the expected features and performance of LoanSpan and LASI and PHH’s ability to provide technology and performance improvements to PHH subservicing clients.

    Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, changes in our business condition and our ability to invest in technology improvements, changes in market conditions, the industry in which we operate, and our business, the actions of governmental entities and regulators, and other risks and uncertainties detailed in our reports and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2023 and any current report or quarterly report filed with the SEC since such date. Anyone wishing to understand Onity Group Inc.’s business should review our SEC filings. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.

    For Further Information Contact:
    Dico Akseraylian, SVP, Corporate Communications
    (856) 917-0066
    mediarelations@onitygroup.com

    The MIL Network –

  • MIL-Evening Report: Whether Biden Or Trump, US’ Latin American Policy Will Be Contemptible

    Source: Council on Hemispheric Affairs – Analysis-Reportage

    By John Perry and Roger D. Harris

    Migration, Drugs, and Tariffs.

    With Donald Trump as the new US president, pundits are speculating about how US policy towards Latin America might change.

    In this article, we look at some of the speculation, then address three specific instances of how the US’s policy priorities may be viewed from a progressive, Latin American perspective. This leads us to a wider argument: that the way these issues are dealt with is symptomatic of Washington’s paramount objective of sustaining the US’s hegemonic position. In this overriding preoccupation, its policy towards Latin America is only one element, of course, but always of significance because the US hegemon still treats the region as its “backyard.”

    First, some examples of what the pundits are saying. In Foreign Affairs, Brian Winter argues that Trump’s return signals a shift away from Biden’s neglect of the region. “The reason is straightforward,” he says. “Trump’s top domestic priorities of cracking down on unauthorized immigration, stopping the smuggling of fentanyl and other illicit drugs, and reducing the influx of Chinese goods into the United States all depend heavily on policy toward Latin America.”

    Ryan Berg, who is with the thinktank, Center for Strategic and International Studies, funded by the US defense industry, is also hopeful. Trump will “focus U.S. policy more intently on the Western Hemisphere,” he argues, “and in so doing, also shore up its own security and prosperity at home.”

    According to blogger James Bosworth, Biden’s “benign neglect” could be replaced by an “aggressive Monroe Doctrine – deportations, tariff wars, militaristic security policies, demands of fealty towards the US, and a rejection of China.” However, notwithstanding the attention of Trump’s Secretary of State, Marco Rubio, Bosworth thinks there is still a good chance of policy lapsing into benign neglect as the new administration focuses elsewhere.

    The wrong end of the telescope

    What these and similar analyses share is a concern with problems of importance to the US, including domestic ones, and how they might be tackled by shifts in policy towards Latin America. They view the region from the end of a US-mounted telescope.

    Trump’s approach may be the more brazen “America first!,” but the basic stance is much the same as these pundits. The different scenarios will be worked out in Washington, with Latin America’s future seen as shaped by how it handles US policy changes over which it has little influence. Analyses by these supposed experts are constrained by their adopting the same one-dimensional perspective as Washington’s, instead of questioning it.

    Here’s one example. The word “neglect” is superficial because it hides the immense involvement of the US in Latin America even when it is “neglecting” it: from deep commercial ties to a massive military presence. It is also superficial because, in a real sense, the US constantly neglects the problems that concern most Latin Americans: low wages, inequality, being safe in the streets, the damaging effects of climate change, and many more. “Neglect” would be seen very differently on the streets of a Latin American city than it is inside the Washington beltway.

    Who has the “drug problem”?

    The vacuum in US thinking is nowhere more apparent than in responses to the drug problem. Trump threatens to declare Mexican drug cartels to be terrorist organizations and to invade Mexico to attack them.

    But, as academic Carlos Pérez-Ricart told El Pais: “This is a problem that does not originate in Mexico. The source, the demand, and the vectors are not Mexican. It is them.” Mexican President Claudia Sheinbaum also points out that it is consumption in the US that drives drug production and trafficking in Mexico.

    Trump could easily make the same mistake as his predecessor Clinton did two decades ago. Back then, billions were poured into “Plan Colombia” but still failed to solve the “drug problem,” while vastly augmenting violence and human rights violations in the target country.

    A foretaste of what might happen, if Trump carries out his threat, occurred last July, when Biden’s administration captured Ismael “El Mayo” Zambada. That caused an all-out war between cartels in the Mexican state of Sinaloa.

    Sheinbaum rightly turns questions about drug production and consumption back onto the US. Rhetorically, she asks: “Do you believe that fentanyl is not manufactured in the United States?…. Where are the drug cartels in the United States that distribute fentanyl in US cities? Where does the money from the sale of that fentanyl go in the United States?”

    If Trump launches a war on cartels, he will not be the first US president to the treat drug consumption as a foreign issue rather than a concomitantly domestic one.

    Where does the “migration problem” originate?

    Trump is also not the first president to be obsessed by migration. Like drugs, it is seen as a problem to be solved by the countries where the migrants originate, while both the “push” and “pull” factors under US control receive less attention.

    Exploitation of migrant labor, complex asylum procedures, and schemes such as “humanitarian parole” to encourage migration are downplayed as reasons. Biden intensified US sanctions on various Latin American countries, which have been shown conclusively to provoke massive emigration. Meanwhile Trump threatens to do the same.

    Many Latin American countries have been made unsafe by crime linked to drugs or other problems in which the US is implicated. About 392,000 Mexicans were displaced as a result of conflict in 2023 alone, their problem aggravated by the massive, often illegal, export of firearms from the US to Mexico.

    Costa Rica, historically a safe country, had a record 880 homicides in 2023, many of which were related to drug trafficking. In Brazil and other countries, US-trained security forces contribute directly to the violence, rather than reducing it.

    Mass deportations from the US, promised by Trump, could worsen these problems, as happened in El Salvador in the late 1990s. They would also affect remittances sent home by migrant workers, exacerbating regional poverty. The threatened use of tariffs on exports to the US could also have serious consequences if Latin America does not stand up to Trump’s threats. Economist Michael Hudson argues that countries will have to jointly retaliate by refusing to pay dollar-based debts to bond holders if export earnings from the US are summarily cut.

    China in the US “backyard”

    Trump also joins the Washington consensus in its preoccupation with China’s influence in Latin America. Monica de Bolle is with the Peterson Institute for International Economics, a thinktank partly funded by Pentagon contractors. She told the BBC: “You have got the backyard of America engaging directly with China. That’s going to be problematic.”

    Recently retired US Southern Command general, Laura Richardson, was probably the most senior frequent visitor on Washington’s behalf to Latin American capitals, during the Biden administration. She accused China of “playing the ‘long game’ with its development of dual-use sites and facilities throughout the region, “adding that those sites could serve as “points of future multi-domain access for the PLA [People’s Liberation Army] and strategic naval chokepoints.”

    As Foreign Affairs points out, Latin America’s trade with China has “exploded” from $18 billion in 2002 to $480 billion in 2023. China is also investing in huge infrastructure projects, and seemingly its only political condition is a preference for a country to recognize China diplomatically (not Taiwan). Even here, China is not absolute as with Guatemala, Haiti, and Paraguay, which still recognize Taiwan. China still has direct investments in those holdouts, though relatively more modest than with regional countries that fully embrace its one-China policy.

    Peru, currently a close US ally, has a new, Chinese-funded megaport at Chancay, opened in November by President Xi Jinping himself. Even right-wing Argentinian president Milei said of China, “They do not demand anything [in return].”

    What does the US offer instead? While Antony Blinken proudly displayed old railcars that were gifted to Peru, the reality is that most US “aid” to Latin America is either aimed at “promoting democracy” (i.e. Washington’s political agenda) or is conditional or exploitative in other ways.

    The BBC cites “seasoned observers” who believe that Washington is paying the price for “years of indifference” towards the region’s needs. Where the US sees a loss of strategic influence to China and to a lesser extent to Russia, Iran, and others, Latin American countries see opportunities for development and economic progress.

    Remember the Monroe Doctrine

    Those calling for a more “benign” policy are forgetting that, in the two centuries since President James Monroe announced the “doctrine,” later given his name, US policy towards Latin America has been aggressively self-interested.

    Its troops have intervened thousands of times in the region and have occupied its countries on numerous occasions. Just since World War II, there have been around 50 significant interventions or coup attempts, beginning with Guatemala in 1954. The US has 76 military bases across the region, while other major powers like China and Russia have none.

    The doctrine is very much alive. In Foreign Affairs, Brian Winter warns: “Many Republicans perceive these linkages [with China], and the growing Chinese presence in Latin America more broadly, as unacceptable violations of the Monroe Doctrine, the 201-year-old edict that the Western Hemisphere should be free of interference from outside powers.”

    Bosworth adds that Trump wants Latin America to decisively choose a side in the US vs China scrimmage, not merely underplay the role of China in the hemisphere. Any country courting Trump, he suggests, “needs to show some anti-China vibes.”

    Will Freeman is with the Council on Foreign Relations, whose major sponsors are also Pentagon contractors. He thinks that a new Monroe Doctrine and what he calls Trump’s “hardball” diplomacy may partially work, but only with northern Latin America countries, which are more dependent on US trade and other links.

    Trump has two imperatives: while one is stifling China’s influence (e.g. by taking possession of the Panama Canal), another is gaining control of mineral resources (a reason for his wanting to acquire Greenland). The desire for mineral resources is not new, either. General Richardson gave an interview in 2023 to another defense-industry-funded thinktank in which she strongly insinuated that Latin American minerals rightly belong to the US.

    Maintaining hegemonic power against the threat of multipolarity

    Neoconservative Charles Krauthammer, writing 20 years ago for yet another thinktank funded by the  defense industry, openly endorsed the US’s status as the dominant hegemonic power and decried multilateralism, at least when not in US interests. “Multipolarity, yes, when there is no alternative,” he said. “But not when there is. Not when we have the unique imbalance of power that we enjoy today.”

    Norwegian commentator Glen Diesen, writing in 2024, contends that the US is still fighting a battle – although perhaps now a losing one – against multipolarity and to retain its predominant status. Trump’s “America first!” is merely a more blatant expression of sentiments held by his other presidential predecessors for clinging on to Washington’s contested hegemony.

    The irony of Biden’s presidency was that his pursuit of the Ukraine war has led to warmer relations between his two rivals, Russia and China. In this context, the growth of BRICS has been fostered – an explicitly multipolar, non-hegemonic partnership. As Glen Diesen says, “The war intensified the global decoupling from the West.”

    Other steps to maintain US hegemony – its support for Israel’s genocide in Gaza, the regime-change operation in Syria and the breakdown of order in Haiti – suggest that, in Washington’s view, according to Diesen, “chaos is the only alternative to US global dominance.” Time and again, Yankee “beneficence” has meant ruination, not development.

    These have further strengthened desires in the global south for alternatives to US dominance, not least in Latin America. Many of its countries (especially those vulnerable to tightening US sanctions) now want to follow the alternative of BRICS.

    Unsurprisingly, Trump has been highly critical of this perceived erosion of hegemonic power on Biden’s watch. Thomas Fazi argues in UnHerd that this is realism on Trump’s part; he knows the Ukraine war cannot be conclusively won, and that China’s power is difficult to contain. Accordingly, this is leading to a “recalibrating of US priorities toward a more manageable ‘continental’ strategy — a new Monroe Doctrine — aimed at reasserting full hegemony over what it deems to be its natural sphere of influence, the Americas and the northern Atlantic,” stretching from Greenland and the Arctic to Tierra del Fuego and Antarctica.

    The pundits may not agree on quite what Trump’s approach towards Latin America will be, but they concur with Winter’s judgment that the region “is about to become a priority for US foreign policy.” His appointment of Marco Rubio is a signal of this. The new secretary of state is a hawk, just like Blinken, but one with a dangerous focus on Latin America.

    However, the mere fact that such pundits hark back to the Monroe Doctrine indicates that this is only, so to speak, old wine in new bottles. Even in the recent past, an aggressive application of the 201-year-old Monroe Doctrine has never seen a hiatus.

    Recall US-backed coups that deposed Honduran President Manuel Zelaya (2009) and Bolivian Evo Morales (2019), plus the failed coup against Daniel Ortega in Nicaragua (2018), along with the parliamentary coup that ousted Paraguayan Fernando Lugo (2012). To these, US-backed regime change by “lawfare” included Dilma Rousseff in Brazil (2016) and Pedro Castillo in Peru (2023). Currently presidential elections have simply been suspended in Haiti and Peru with US backing.

    Even if Trump is more blatant than his predecessors in making clear that his policymaking is based entirely on what he perceives to be US interests, rather than those of Latin Americans, this is not new.

    As commentator Caitlin Johnstone points out, the main difference between Trump and his predecessors is that he “makes the US empire much more transparent and unhidden.” From the other end of the political spectrum, a former John McCain adviser echoes the same assessment: “there will likely be far more continuity between the two administrations than meets the eye.”

    Regardless, Latin America will continue to struggle to set its own destiny, patchily and with setbacks, and this will likely draw it away from the hegemon, whatever the US does.

    Nicaragua-based John Perry is with the Nicaragua Solidarity Coalition and writes for the London Review of Books, FAIR, and CovertAction.

    Roger D. Harris is with the Task Force on the Americas, the US Peace Council, and the Venezuela Solidarity Network

    Featured image courtesy of Cornell University/Wikimedia Commons

    First published by Popular Resistance: https://popularresistance.org/whether-biden-or-trump-us-latin-american-policy-will-still-be-contemptible/

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Canada: Rare vintage wheels roll into Alberta museums | Des voitures de collection rares arrivent dans les musées de l’Alberta

    The 1914 Waterous Steam Fire Pumper at the Remington Carriage Museum

    The Remington Carriage Museum in Cardston is now home to a 1914 Waterous Steam Fire Pumper, which was donated by a local Calgary collector. Almost no others of its kind have remained intact. Adding to its rarity, the engine remains in fully functional condition.

    The firefighting machine was built more than a century ago and spent some of its early years in Québec. It has since been painstakingly restored and donated to the museum where another smaller one like it is already housed.

    Limo fit for a king

    The 1939 McLaughlin Buick Royal Tour car at Reynolds Museum

    Meanwhile, a new addition to the Reynolds Museum collection in Wetaskiwin is getting a royal welcome – a 1939 McLaughlin Buick Royal Tour car. The custom-made stretch convertible has carried every British monarch in their respective tours of Canada since the late 1930s.

    Donated by Byron Reynolds, the vehicle was one of two built by General Motors in Ontario for use by King George VI and Queen Elizabeth II as they toured Canada in 1939.

    It was used by Prince Charles and Princess Diana for the opening of Expo ’86 in Vancouver and by Queen Elizabeth II for the opening of the Commonwealth Games in Victoria in 1994.

    Major additions to the collection

    Both donations represent a significant addition to the provincial museum collection and carry stories of their use and restoration throughout the 20th century. Furthermore, both vehicles were originally made in Canada, a trait that sets them apart from their U.S. counterparts and adds to their uniqueness.

    “Albertans value the stories of our shared past and the artifacts that help bring those stories to life. As our museum collections grow, so does the depth of our understanding of that past.”

    Tanya Fir, Minister of Arts, Culture and Status of Women

    “It is thrilling for the Reynolds and Remington to be the recipient of such amazing donations. These vehicles are each truly one of a kind and we thank the donors who made these historical treasures available for everyone to enjoy. I invite all Albertans to visit our museums to learn more about these, and many other, unique Alberta stories.”

    Noel Ratch, Director, Reynolds Museum

    Alberta’s government proudly owns and operates 20 museums and heritage sites as well as the Provincial Archives. Last year, Alberta’s government dedicated more than $52 million to the heritage sector to ensure Alberta’s rich history continues to be protected, promoted and celebrated.

    Quick facts

    • The 1939 McLaughlin Buick was one of two built in Canada.
    • Built on a Buick limousine chassis, it includes a four-door convertible body, custom wood-grain dash and interior veneered moldings, tall canvas convertible top to accommodate ceremonial headgear, an electrically operated divider window, a dictograph with dash and signal light so riders in back and front can communicate, the Royal Crest, Shield and Standard, and a sterling silver vanity kit with co-ordinated umbrellas.
    • The Waterous Steam Fire Pumper was built around 1913 in Brantford, Ontario, and was bought second-hand by the Township of Pointe-aux-Trembles, Québec in 1917.
    • It was purchased by a Calgary collector in 1997 and was restored by a Michigan restorer. At that time, it was found to still be in working condition with no leaks. It includes 90 per cent original material with most of the restoration being cosmetic. Paint detailing was done based on uncovered paint layers found during the restoration process and archival photos of the engine during its use in Québec.
    • The Waterous Steam Fire Pumper is currently on display at the Remington Carriage Museum.
    • The Royal Tour car can be viewed at the Reynolds Museum as part of the behind-the-scenes tour program each summer.
    • The Reynolds Museum and the Remington Carriage Museum are open Tuesday through Sunday.

    Related information

    • Remington Carriage Museum
    • Reynolds Museum

    Les amateurs de véhicules historiques seront comblés, car deux musées de l’Alberta ont dévoilé leurs plus récents dons : une voiture de pompiers à vapeur tirée par des chevaux et une voiture franchement royale

    L’autopompe à vapeur Waterous de 1914 au Remington Carriage Museum

    Le musée Remington Carriage Museum de Cardston vient de s’enrichir d’une autopompe à vapeur Waterous de 1914, offerte par un collectionneur local de Calgary. Il existe très peu de véhicules du genre en parfait état. Pour ajouter à sa rareté, le moteur fonctionne toujours de façon impeccable.

    Construit il y a plus d’un siècle, l’engin de lutte contre les incendies a passé une partie de ses premières années au Québec. Elle a depuis été minutieusement restaurée et offerte au musée, qui en abrite déjà une autre, plus petite.

    Une limousine digne d’un roi

    La McLaughlin Buick Royal Tour de 1939 au musée Reynolds

    Ailleurs dans la province, un nouvel ajout à la collection du musée Reynolds Museum de Wetaskiwin a reçu un accueil royal ? une voiture McLaughlin Buick Royal Tour de 1939. Ce cabriolet extensible fait sur mesure a transporté tous les monarques britanniques lors de leurs tournées au Canada depuis la fin des années 1930.

    Offert par Byron Reynolds, ce véhicule est l’un des deux construits par la General Motors en Ontario à l’intention du roi George VI et de la reine Elizabeth II lors de leur tournée au Canada en 1939.

    La voiture a également été utilisée par le prince Charles et la princesse Diana lors de l’ouverture de l’Expo 86 à Vancouver et de nouveau par la reine Elizabeth II à l’ouverture des Jeux du Commonwealth tenus à Victoria en 1994.

    Des ajouts importants à la collection de la province

    Les deux dons représentent un ajout important à la collection muséale de la province. Les véhicules racontent l’histoire de leur utilisation et de leur restauration tout au long du 20e siècle. En outre, les deux véhicules ont été fabriqués au Canada, ce qui les distingue de leurs homologues américains et ajoute à leur caractère exceptionnel.

    « Les Albertaines et les Albertains apprécient les récits de leur passé commun et les artefacts qui contribuent à donner vie à ces récits. Au fur et à mesure que nos collections muséales s’enrichissent, notre compréhension de ce passé s’approfondit. »

    Tanya Fir, ministre des Arts, de la Culture et de la Condition féminine

    « Les musées Reynolds et Remington sont ravis d’avoir reçu des dons aussi extraordinaires. Ces véhicules sont véritablement uniques en leur genre et nous remercions leurs donateurs, qui ont mis ces trésors historiques à la disposition de tous. J’invite toute la population à visiter nos musées pour en apprendre davantage sur ces véhicules et sur une foule d’autres récits uniques de l’Alberta. »

    Noel Ratch, directeur, musée Reynolds

    Le gouvernement de l’Alberta est fier de posséder et de gérer 20 musées et sites patrimoniaux, ainsi que les archives de la province. L’année dernière, le gouvernement de l’Alberta a consacré plus de 52 millions de dollars au secteur du patrimoine pour s’assurer que la riche histoire de l’Alberta continue d’être protégée, promue et célébrée.

    En bref

    • La Buick McLaughlin de 1939 est l’une de deux voitures du genre construites au Canada.
    • Bâtie sur un châssis de limousine Buick, elle comprend une carrosserie décapotable à quatre portes, un tableau de bord et des moulures intérieures en placage de bois, un haut toit décapotable en toile pour accueillir les coiffures de cérémonie, une fenêtre de séparation à commande électrique, un dictographe doté d’un tableau de bord et d’une lampe de signalisation pour que les passagers à l’arrière et à l’avant puissent communiquer, le cimier, l’écu et l’étendard royaux, ainsi qu’un ensemble de vanité en argent sterling accompagné de parapluies coordonnés.
    • L’autopompe à vapeur Waterous a été construite vers 1913 à Brantford, en Ontario, et a été achetée d’occasion par le Canton de Pointe-aux-Trembles, au Québec, en 1917.
    • Elle a été rachetée par un collectionneur de Calgary en 1997 et a été restaurée par un expert du Michigan. C’est à ce moment-là qu’on a constaté qu’elle était toujours en état de marche et qu’elle ne présentait aucune fuite. Le véhicule est composé à 90 % de matériaux d’origine, la majeure partie de la restauration ayant été d’ordre cosmétique. Les détails de la peinture ont été réalisés à partir des couches de peinture découvertes au cours du processus de restauration et de photos d’archives qui dataient de l’époque à laquelle il a été utilisé au Québec.
    • L’autopompe à vapeur Waterous est actuellement exposée au musée Remington Carriage Museum.
    • La voiture royale peut être vue au musée Reynolds dans le cadre de son programme de visite en coulisse chaque été.
    • Les musées Reynolds Museum et Remington Carriage Museum sont ouverts du mardi au dimanche.

    Renseignements connexes (en anglais seulement)

    • Remington Carriage Museum
    • Reynolds Museum

    MIL OSI Canada News –

  • MIL-OSI: Capital Southwest Announces Financial Results for Third Fiscal Quarter Ended December 31, 2024 and Announces Increase in Total Dividends to $0.64 per share for the Quarter Ending March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, Feb. 03, 2025 (GLOBE NEWSWIRE) — Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its financial results for the third fiscal quarter ended December 31, 2024.

    Third Quarter Fiscal Year 2025 Financial Highlights

    • Total Investment Portfolio: $1.7 billion
      • Credit Portfolio of $1.5 billion:
        • 98% 1st Lien Senior Secured Debt
        • $313.4 million in new committed credit investments during the quarter
        • Weighted Average Yield on Debt Investments: 12.1%
        • Current non-accruals with a fair value of $45.8 million, representing 2.7% of the total investment portfolio
      • Equity Portfolio of $158.8 million
        • $4.1 million in new equity co-investments during the quarter
    • Pre-Tax Net Investment Income: $30.7 million, or $0.64 per weighted average share outstanding
    • Estimated Undistributed Taxable Income (“UTI”): $0.68 per share as of December 31, 2024
    • LTM Operating Leverage: 1.6% for the quarter ended December 31, 2024
    • Dividends: Paid $0.58 per share Regular Dividend and $0.05 per share Supplemental Dividend
      • 115% LTM Pre-Tax NII Regular Dividend Coverage
      • Total Dividends for the quarter ended December 31, 2024 of $0.63 per share
    • Net Realized and Unrealized Depreciation: $13.7 million, or 0.8% of total investments at fair value
      • $12.3 million of net appreciation related to the equity portfolio
      • $26.0 million of net depreciation related to the credit portfolio
    • Balance Sheet:
      • Cash and Cash Equivalents: $36.0 million
      • Total Net Assets: $830.4 million
      • Net Asset Value (“NAV”) per Share: $16.59

    In commenting on the Company’s results, Bowen Diehl, President and Chief Executive Officer, stated, “The December quarter was an active quarter for Capital Southwest, with approximately $318 million of new committed originations. Our portfolio continued to generate significant income for our shareholders, producing $0.64 of pre-tax net investment income per share for the quarter, which outearned both our $0.58 per share regular dividend and our $0.05 per share supplemental dividend paid for the quarter. In consideration of the continued performance of our portfolio, the Board of Directors has again declared a regular dividend of $0.58 per share for the quarter ending March 31, 2025. Our Board of Directors also has declared an increase in our supplemental dividend to $0.06 per share for the quarter ending March 31, 2025, resulting in total dividends for the quarter of $0.64 per share. While future dividend declarations are at the discretion of our Board of Directors, it is our intent to continue to distribute quarterly supplemental dividends for the foreseeable future. We continued to efficiently raise equity capital during the quarter, raising over $53 million on our Equity ATM Program. In addition, during the quarter, we successfully raised $230 million of 5.125% unsecured convertible notes due 2029, which further diversified our balance sheet liability structure. Finally, we received a ‘green light’ letter from the U.S. Small Business Administration to file an application to obtain a license to operate a second SBIC subsidiary. If approved, a second SBIC license will provide Capital Southwest with access to up to an additional $175 million in cost effective debt capital.”

    Third Quarter Fiscal Year Investment Activities

    Originations

    During the quarter ended December 31, 2024, the Company originated $317.5 million in new commitments, consisting of investments in nine new portfolio companies totaling $175.2 million and add-on commitments in 20 portfolio companies totaling $142.3 million. New portfolio company investment transactions that closed during the quarter ended December 31, 2024 are summarized as follows:

    Undisclosed Portfolio Company, $32.0 million 1stLien Senior Secured Debt, $5.0 million Revolving Loan, $0.5 million Equity

    Musiker Discovery Programs, Inc., $23.0 million 1stLien Senior Secured Debt, $7.5 million Delayed Draw Term Loan, $5.0 million Revolving Loan: The company provides pre-college, enrichment, and gifted summer programs to students in grades 1-12.

    Superior Health Parent LLC, $17.5 million 1stLien Senior Secured Debt, $10.0 million Delayed Draw Term Loan, $3.0 million Revolving Loan: The company is a provider of home health and hospice services across eight agencies in Louisiana.

    Mid-Florida Endodontics Management Company, LLC, $16.1 million 1stLien Senior Secured Debt, $10.0 million Delayed Draw Term Loan, $3.0 million Revolving Loan: The company provides endodontic services, primarily focused on root canals and related examinations and retreatments.

    Undisclosed Portfolio Company, $8.0 million 1stLien Senior Secured Debt, $2.0 million Revolving Loan, $1.0 million Equity

    Red Dog Operations Holding Company LLC, $7.5 million 1stLien Senior Secured Debt, $2.0 million Revolving Loan, $1.0 million Preferred Equity: The company is a family-owned provider of boarding, daycare, grooming, and other ancillary pet services across six facilities in the Cincinnati and Boston areas.

    Cumbria Capital MSO, LLC, $5.4 million 1stLien Senior Secured Debt, $2.0 million Delayed Draw Term Loan, $1.5 million Revolving Loan: The company is a medical practice offering treatment for a variety of gastrointestinal and liver disorders.

    Undisclosed Portfolio Company, $6.7 million 1stLien Senior Secured Debt

    Undisclosed Portfolio Company, $4.0 million 1stLien Senior Secured Debt, $1.0 million Revolving Loan, $0.5 million Equity

    Prepayments and Exits

    During the quarter ended December 31, 2024, the Company received full prepayments on two debt investments totaling $26.7 million.

    Versicare Management LLC: Proceeds of $23.7 million, generating an IRR of 17.1%.

    Research Now Group, LLC: Proceeds of $2.9 million, generating an IRR of (9.6)%.

    Third Fiscal Quarter 2025 Operating Results

    For the quarter ended December 31, 2024, Capital Southwest reported total investment income of $52.0 million, compared to $48.7 million in the prior quarter. The increase in investment income was primarily attributable to an increase in prepayment and other fees received during the quarter.

    For the quarter ended December 31, 2024, total operating expenses (excluding interest expense) were $6.6 million, compared to $6.1 million in the prior quarter. The increase was primarily attributable to an increase in accrued bonus compensation in the current quarter and an increase in general and administrative expenses primarily due to the write off of deferred offering costs related to our previous shelf registration statement during the current quarter.

    For the quarter ended December 31, 2024, interest expense was $14.7 million, compared to $12.6 million in the prior quarter. The increase was primarily attributable to an increase in average debt outstanding.

    For the quarter ended December 31, 2024, total pre-tax net investment income was $30.7 million, compared to $30.0 million in the prior quarter.

    For the quarter ended December 31, 2024, there was a tax provision of $0.4 million, compared to a tax benefit of $1.2 million in the prior quarter. The benefit in the prior quarter included a $1.5 million deferred tax benefit, which is primarily attributable to an increase in the tax basis of investments held by our wholly owned subsidiary, Capital Southwest Equity Investments, Inc., due to pass-through income, resulting in a decrease in tax appreciation.

    During the quarter ended December 31, 2024, Capital Southwest recorded total net realized and unrealized losses on investments of $13.7 million, compared to $8.5 million of total net realized and unrealized losses in the prior quarter. For the quarter ended December 31, 2024, the total net realized and unrealized losses on investments reflected net realized and unrealized gains on equity investments of $12.3 million and net realized and unrealized losses on debt investments of $26.0 million. The net increase in net assets resulting from operations was $16.3 million for the quarter, compared to $22.7 million in the prior quarter.

    The Company’s NAV at both December 31, 2024 and September 30, 2024 was $16.59 per share. Increases in NAV per share are attributable to the issuance of common stock at a premium to NAV per share through the Equity ATM Program (as described below), offset by net realized and unrealized losses on investments.

    Liquidity and Capital Resources

    At December 31, 2024, Capital Southwest had approximately $36.0 million in unrestricted cash and money market balances and $376.2 million of unused capacity under the Corporate Credit Facility (as defined below) and the SPV Credit Facility (as defined below). The regulatory debt to equity ratio at the end of the quarter was 0.90 to 1.

    As of December 31, 2024, Capital Southwest had the following borrowings outstanding:

    • $190.0 million of total debt outstanding on the Corporate Credit Facility
    • $118.0 million of total debt outstanding on the SPV Credit Facility
    • $148.7 million, net of unamortized debt issuance costs, of the 3.375% Notes due October 2026
    • $70.1 million, net of unamortized debt issuance costs, of the 7.75% Notes due August 2028
    • $222.7 million, net of amortized debt issuance costs, of the 5.125% convertible notes due November 2029
    • $170.7 million, net of unamortized debt issuance costs, of SBA Debentures (as defined below)

    In August 2016, CSWC entered into a senior secured credit facility (the “Corporate Credit Facility”) to provide additional liquidity to support its investment and operational activities. Borrowings under the Corporate Credit Facility accrue interest on a per annum basis at a rate equal to the applicable SOFR rate plus 2.15%. On August 2, 2023, CSWC entered into the Third Amended and Restated Senior Secured Revolving Credit Agreement (the “Credit Agreement”) that (1) increased commitments under the Corporate Credit Facility from $400 million to $435 million; (2) added an uncommitted accordion feature that could increase the maximum commitments up to $750 million; (3) extended the end of the Corporate Credit Facility’s revolving period from August 9, 2025 to August 2, 2027 and extended the final maturity from August 9, 2026 to August 2, 2028; and (4) amended several financial covenants. On December 7, 2023, the Company entered into an Incremental Commitment and Assumption Agreement that increased the total commitments under the accordion feature of the Credit Agreement by $25 million, which increased total commitments from $435 million to $460 million. The $25 million increase was provided by one new lender, bringing the total bank syndicate to ten participants. On September 12, 2024, the Company entered into an Incremental Commitment and Assumption Agreement that increased the total commitments under the accordion feature of the Credit Agreement by $25 million, which increased total commitments from $460 million to $485 million. The $25 million increase was provided by one new lender, bringing the total bank syndicate to 11 participants.

    Capital Southwest SPV LLC (“SPV”) is a wholly owned special purpose vehicle that was formed to hold investments for the SPV Credit Facility (as defined below) to support our investment and operating activities. On March 20, 2024, SPV entered into a special purpose vehicle financing credit facility (the “SPV Credit Facility”). The SPV Credit Facility included an initial commitment of $150 million. Pursuant to the terms of the loan agreement, on June 20, 2024, total commitments automatically increased from $150 million to $200 million. The SPV Credit Facility also includes an accordion feature that allows increases up to $400 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. Borrowings under the SPV Credit Facility bear interest at three-month Term SOFR plus 2.50% per annum during the revolving period ending on March 20, 2027 and three-month Term SOFR plus an applicable margin of 2.85% thereafter. SPV (i) paid unused commitment fees of 0.10% through April 20, 2024 and (ii) pays unused commitment fees of 0.35% thereafter, on the unused lender commitments under the SPV Credit Facility, in addition to other customary fees. Under the SPV Credit Facility, SPV also pays a utilization fee based on the amount of borrowings utilized. The SPV Credit Facility matures on March 20, 2029.

    On November 4, 2024, the Company issued $230.0 million in aggregate principal amount of 5.125% convertible notes due 2029 (the “2029 Convertible Notes”), including the underwriters’ full exercise of their option to purchase an additional $30.0 million in aggregate principal amount to cover over-allotments. The 2029 Convertible Notes bear interest at a rate of 5.125% per year, payable quarterly on February 15, May 15, August 15 and November 15 of each year, beginning on February 15, 2025. The 2029 Convertible Notes will mature on November 15, 2029, unless earlier converted, redeemed or repurchased. The conversion rate was initially 40.0000 shares of common stock per $1,000 principal amount of 2029 Convertible Notes (equivalent to an initial conversion price of $25.00 per share of common stock), subject to adjustment in some events.

    On December 9, 2024, the Company redeemed $140.0 million in aggregate principal amount of the issued and outstanding 4.50% notes due 2026 (the “January 2026 Notes”) in full. The January 2026 Notes were redeemed at 100% of their principal amount, plus the accrued and unpaid interest thereon, through, but excluding the redemption date. Accordingly, the Company recognized a realized loss on extinguishment of debt, equal to the write-off of the related unamortized debt issuance costs, of $0.4 million during the quarter ended December 31, 2024. There was no “make-whole” premium required to be paid in connection with the redemption.

    The Company has an “at-the-market” offering (the “Equity ATM Program”), pursuant to which the Company may offer and sell, from time to time through sales agents, shares of its common stock. On May 21, 2024, the Company increased the maximum amount of shares of its common stock to be sold through the Equity ATM Program from $650 million to $1 billion. During the quarter ended December 31, 2024, the Company sold 2,364,147 shares of its common stock under the Equity ATM Program at a weighted-average price of $22.68 per share, raising $53.6 million of gross proceeds. Net proceeds were $52.9 million after commissions to the sales agents on shares sold. As of December 31, 2024, the Company has $358.6 million available under the Equity ATM Program.

    On April 20, 2021, our wholly owned subsidiary, Capital Southwest SBIC I, LP (“SBIC I”), received a license from the Small Business Administration (the “SBA”) to operate as a Small Business Investment Company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958, as amended. The SBIC license allows SBIC I to obtain leverage by issuing SBA-guaranteed debentures (“SBA Debentures”), subject to the issuance of a leverage commitment by the SBA. SBA debentures are loans issued to an SBIC that have interest payable semi-annually and a ten-year maturity. The interest rate is fixed shortly after issuance at a market-driven spread over U.S. Treasury Notes with ten-year maturities. As of December 31, 2024, SBIC I had a total leverage commitment from the SBA in the amount of $175.0 million, all of which was drawn.

    Share Repurchase Program

    On July 28, 2021, the Company’s board of directors (the “Board”) approved a share repurchase program authorizing the Company to repurchase up to $20 million of its outstanding shares of common stock in the open market at certain thresholds below its NAV per share, in accordance with guidelines specified in Rules 10b5-1(c)(1)(i)(B) and 10b-18 under the Securities Exchange Act of 1934, as amended. On August 31, 2021, the Company entered into a share repurchase agreement, which became effective immediately, and the Company will cease purchasing its common stock under the share repurchase program upon the earlier of, among other things: (1) the date on which the aggregate purchase price for all shares equals $20 million including, without limitation, all applicable fees, costs and expenses; or (2) upon written notice by the Company to the broker that the share repurchase agreement is terminated. During the quarter ended December 31, 2024, the Company did not repurchase any shares of the Company’s common stock under the share repurchase program.

    Regular Dividend of $0.58 Per Share and Supplemental Dividend of $0.06 Per Share for Quarter Ended March 31, 2025

    On January 29, 2025, the Board declared a total dividend of $0.64 per share for the quarter ending March 31, 2025, comprised of a Regular Dividend of $0.58 per share and a Supplemental Dividend of $0.06 per share.

    The Company’s dividend will be payable as follows:

    Regular Dividend
       
    Amount Per Share: $0.58
    Ex-Dividend Date: March 14, 2025
    Record Date: March 14, 2025
    Payment Date: March 31, 2025
       
    Supplemental Dividend
       
    Amount Per Share: $0.06
    Ex-Dividend Date: March 14, 2025
    Record Date: March 14, 2025
    Payment Date: March 31, 2025
       

    When declaring dividends, the Board reviews estimates of taxable income available for distribution, which may differ from net investment income under generally accepted accounting principles. The final determination of taxable income for each year, as well as the tax attributes for dividends in such year, will be made after the close of the tax year.

    Capital Southwest maintains a dividend reinvestment plan (“DRIP”) that provides for the reinvestment of dividends on behalf of its registered stockholders who hold their shares with Capital Southwest’s transfer agent and registrar, American Stock Transfer and Trust Company.  Under the DRIP, if the Company declares a dividend, registered stockholders who have opted into the DRIP by the dividend record date will have their dividend automatically reinvested into additional shares of Capital Southwest common stock. 

    Third Quarter 2025 Earnings Results Conference Call and Webcast

    Capital Southwest has scheduled a conference call on Tuesday, February 4, 2025, at 11:00 a.m. Eastern Time to discuss the third quarter 2025 financial results. You may access the call by using the Investor Relations section of Capital Southwest’s website at www.capitalsouthwest.com, or by using http://edge.media-server.com/mmc/p/viedrjap.

    An audio archive of the conference call will also be available on the Investor Relations section of Capital Southwest’s website.

    For a more detailed discussion of the financial and other information included in this press release, please refer to the Capital Southwest’s Form 10-Q for the period ended December 31, 2024 to be filed with the Securities and Exchange Commission (the “SEC”) and Capital Southwest’s Third Fiscal Quarter 2025 Earnings Presentation to be posted on the Investor Relations section of Capital Southwest’s website at www.capitalsouthwest.com.

    About Capital Southwest

    Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.7 billion in investments at fair value as of December 31, 2024. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

    Forward-Looking Statements
    This press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest, including, but not limited to, the statements about Capital Southwest’s future performance and financial performance and financial condition, Capital Southwest’s ability to continue to grow its balance sheet, the timing, form and amount of any distributions or supplemental dividends in the future, and Capital Southwest’s receipt of a second SBIC license. Receipt of a green light letter provides no assurance that the SBA will ultimately issue an SBIC license, and Capital Southwest has received no assurance or indication from the SBA as such, or of a timeframe in which it would receive its second SBIC license, should one be granted. Forward-looking statements are statements that are not historical statements and can often be identified by words such as “will,” “believe,” “expect” and similar expressions and variations or negatives of these words. These statements are based on management’s current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on our business and our portfolio companies; regulatory changes; tax treatment; our ability to operate SBIC I as a small business investment company; an economic downturn and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of supply chain constraints and labor shortages on our portfolio companies; and the elevated levels of inflation and its impact on our portfolio companies and the industries in which we invests.

    Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest’s Annual Report on Form 10-K for the year ended March 31, 2024 and any subsequent filings with the SEC, including the “Risk Factors” sections therein, for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

    Investor Relations Contact:

    Michael S. Sarner, Chief Financial Officer
    214-884-3829

     
    CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (In thousands, except shares and per share data)
           
      December 31,   March 31,
        2024       2024  
      (Unaudited)    
    Assets      
    Investments at fair value:      
    Non-control/Non-affiliate investments (Cost: $1,481,051 and $1,276,690, respectively) $ 1,471,215     $ 1,286,355  
    Affiliate investments (Cost: $223,612 and $200,013, respectively)   221,044       190,206  
    Control investments (Cost: $8,619 and $0, respectively)   9,027       —  
    Total investments (Cost: $1,713,282 and $1,476,703, respectively)   1,701,286       1,476,561  
    Cash and cash equivalents   36,013       32,273  
    Receivables:      
    Dividends and interest   28,237       22,928  
    Escrow   —       16  
    Other   4,056       7,276  
    Income tax receivable   668       336  
    Debt issuance costs (net of accumulated amortization of $9,685 and $7,741, respectively)   9,938       10,928  
    Other assets   8,867       6,440  
    Total assets $ 1,789,065     $ 1,556,758  
           
    Liabilities      
    SBA Debentures (net of $4,279 and $4,305, respectively, of unamortized debt issuance costs) $ 170,721     $ 148,695  
    January 2026 Notes (net of $0 and $612, respectively, of unamortized debt issuance costs)   —       139,388  
    October 2026 Notes (net of $1,346 and $1,923, respectively, of unamortized debt issuance costs)   148,654       148,077  
    August 2028 Notes (net of $1,800 and $2,182, respectively, of unamortized debt issuance costs)   70,075       69,693  
    2029 Convertible Notes (net of $7,256 and $0, respectively, of unamortized debt issuance costs)   222,744       —  
    Credit Facilities   308,000       265,000  
    Other liabilities   20,993       17,381  
    Accrued restoration plan liability   556       570  
    Income tax payable   1,251       281  
    Deferred tax liability   15,629       11,997  
    Total liabilities   958,623       801,082  
           
    Commitments and contingencies (Note 11)      
           
    Net Assets      
    Common stock, $0.25 par value: authorized, 75,000,000 shares at December 31, 2024 and March 31, 2024; issued, 50,051,332 shares at December 31, 2024 and 45,050,759 shares at March 31, 2024   12,513       11,263  
    Additional paid-in capital   903,513       796,945  
    Total distributable (loss) earnings   (85,584 )     (52,532 )
    Total net assets   830,442       755,676  
    Total liabilities and net assets $ 1,789,065     $ 1,556,758  
    Net asset value per share (50,051,332 shares outstanding at December 31, 2024 and 45,050,759 shares outstanding at March 31, 2024) $ 16.59     $ 16.77  
                   
                   
     
    CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
    (In thousands, except shares and per share data)
                   
      Three Months Ended   Nine Months Ended
      December 31,   December 31,
        2024       2023       2024       2023  
    Investment income:              
    Interest income:              
    Non-control/Non-affiliate investments $ 37,789     $ 33,627     $ 114,346     $ 97,924  
    Affiliate investments   4,767       4,214       14,253       12,691  
    Control investments   333       —       975       —  
    Payment-in-kind interest income:              
    Non-control/Non-affiliate investments   2,717       3,452       7,025       5,329  
    Affiliate investments   529       621       1,670       1,926  
    Dividend income:              
    Non-control/Non-affiliate investments   586       2,447       3,525       3,233  
    Affiliate investments   —       96       51       187  
    Control investments   —       2,129       —       6,439  
    Fee income:              
    Non-control/Non-affiliate investments   3,671       1,655       6,589       2,949  
    Affiliate investments   525       115       1,443       632  
    Control investments   8       17       75       62  
    Other income   1,048       193       2,081       332  
    Total investment income   51,973       48,566       152,033       131,704  
    Operating expenses:              
    Compensation   2,388       3,919       7,844       8,762  
    Share-based compensation   1,544       1,188       4,306       3,387  
    Interest   14,717       11,473       39,751       31,635  
    Professional fees   998       919       3,450       2,863  
    General and administrative   1,643       1,301       4,699       3,877  
    Total operating expenses   21,290       18,800       60,050       50,524  
    Income before taxes   30,683       29,766       91,983       81,180  
    Federal income, excise and other taxes   474       392       1,016       841  
    Deferred taxes   (107 )     515       627       (270 )
    Total income tax provision   367       907       1,643       571  
    Net investment income $ 30,316     $ 28,859     $ 90,340     $ 80,609  
    Realized (loss) gain              
    Non-control/Non-affiliate investments $ (12,889 )   $ (7,849 )   $ (22,374 )   $ (13,445 )
    Affiliate investments   84       —       251       (6,503 )
    Control investments   —       —       (260 )     —  
    Income tax benefit (provision)   —       7       —       (286 )
    Total net realized (loss) gain on investments, net of tax   (12,805 )     (7,842 )     (22,383 )     (20,234 )
    Net unrealized (depreciation) appreciation on investments              
    Non-control/Non-affiliate investments   (5,229 )     8,569       (19,455 )     4,648  
    Affiliate investments   7,745       (6,829 )     7,193       1,302  
    Control investments   (354 )     778       408       2,944  
    Income tax (provision) benefit   (3,009 )     (51 )     (2,720 )     1,012  
    Total net unrealized (depreciation) appreciation on investments, net of tax   (847 )     2,467       (14,574 )     9,906  
    Net realized and unrealized (losses) gains on investments   (13,652 )     (5,375 )     (36,957 )     (10,328 )
    Realized loss on extinguishment of debt   (387 )     —       (387 )     (361 )
    Realized loss on disposal of fixed assets   (9 )     —       (9 )     —  
    Net increase in net assets from operations $ 16,268     $ 23,484     $ 52,987     $ 69,920  
                   
    Pre-tax net investment income per share – basic $ 0.64     $ 0.72     $ 1.95     $ 2.05  
    Net investment income per share – basic $ 0.63     $ 0.70     $ 1.92     $ 2.04  
    Net increase in net assets from operations – diluted $ 0.34     $ 0.57     $ 1.12     $ 1.77  
    Net increase in net assets from operations – basic $ 0.34     $ 0.57     $ 1.13     $ 1.77  
    Weighted average shares outstanding – basic   48,315,228       41,513,773       47,079,617       39,610,643  
    Weighted average shares outstanding – diluted   54,121,844       41,513,773       49,022,194       39,610,643  

    The MIL Network –

  • MIL-OSI: Synaptics Announces CEO Transition

    Source: GlobeNewswire (MIL-OSI)

    • Michael Hurlston Steps Down as President and CEO to Pursue Another Opportunity
    • Ken Rizvi, CFO and Senior Vice President, Appointed Interim CEO
    • Company Reports Preliminary Financial Results for Fiscal Second Quarter 2025

    SAN JOSE, Calif., Feb. 03, 2025 (GLOBE NEWSWIRE) — Synaptics® Incorporated (Nasdaq: SYNA) today announced a leadership transition under which Michael Hurlston is stepping down as President and Chief Executive Officer and as a member of the Board of Directors, effective immediately. As separately announced today, Hurlston will assume the role of CEO at Lumentum Holdings Inc.

    Synaptics’ Board of Directors has appointed Ken Rizvi, Chief Financial Officer, as Interim CEO during this transition. In addition, Nelson Chan, Chairman of the Synaptics Board, will assume the role of Executive Chairman until a new CEO is named.

    The Board has commenced a search for Synaptics’ next CEO and is in the process of engaging an executive search firm. The Board will consider both internal and external candidates.

    “On behalf of the Board of Directors, I want to thank Michael for his invaluable contributions to Synaptics over the last five years and for his dedication to transforming the company into a driving force behind innovation and growth in AI at the Edge,” said Nelson Chan. “We are deeply grateful for his leadership, and we wish him well in his future endeavors. I am confident that Ken and Synaptics’ strong leadership team will ensure seamless execution during this transition. We are well positioned to continue delivering next-generation products and solutions to our customers and advancing our strategic goals.”

    “It has been a privilege to work alongside the talented team at Synaptics, and I want to thank them for their dedication throughout this journey,” said Michael Hurlston. “I am extremely proud of Synaptics’ success, and the innovative and diversified portfolio of solutions that the company is delivering to customers around the world.”

    “Michael has left an indelible mark on the company and built a strong foundation for the next phase of our growth,” said Ken Rizvi, CFO and Interim CEO. “We have enormous opportunities ahead and I look forward to working closely with the Board and the Synaptics leadership team to execute on our growth roadmap and capitalize on the increasing demand for our products and solutions.”

    In connection with today’s announcement, Synaptics released preliminary financial results for the second quarter of fiscal 2025. The company expects fiscal Q2 revenue of $267 million. On a GAAP and non-GAAP basis, the company expects gross margin to be in line with the mid-point of the guidance provided on November 7, 2024, operating expenses to be slightly above the mid-point of the guidance, and EPS to be above the mid-point of the guidance. The guidance provided on November 7, 2024 is shown below:

           
           
      GAAP Non-GAAP
    Adjustment    		 Non-GAAP
           
    Revenue $265M ± $15M N/A N/A
           
    Gross Margin* 45.0 percent ±

    1.5 percent

    		 $23M 53.5 percent ± 1.0
    percent
           
    Operating Expense** $136M ± $4M $40M ± $2M $96M ± $2M
           
    Earnings (loss) per share*** ($0.45) ± $0.20 $1.30 $0.85 ± $0.20
           
           

    * Projected Non-GAAP gross margin excludes intangible asset amortization and share-based compensation.
    ** Projected Non-GAAP operating expense excludes share-based compensation, restructuring costs, and acquisition and integration related costs.
    *** Projected Non-GAAP earnings per share excludes share-based compensation, restructuring costs, acquisition and integration related costs, and other non-cash and Non-GAAP tax adjustments.

    Synaptics will provide further financial details when it reports second quarter fiscal 2025 results on Thursday, February 6, 2025, after the market closes. The company will host a conference call for analysts and investors at 2:00 p.m. PT (5:00 p.m. ET) during which management may discuss forward-looking information.  

    To participate on the live call, analysts and investors should pre-register at Synaptics Q2 FY2025 Earnings Call Registration.

    The preliminary financial results for the second quarter of fiscal 2025 are preliminary and are subject to completion and may change as a result of management’s continued review. Such preliminary financial results are subject to the finalization of quarter-end financial and accounting procedures. As a result, the preliminary financial results may materially differ from the actual results when they are completed and publicly disclosed.

    About Synaptics Incorporated  
    Synaptics (Nasdaq: SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is the force behind the next generation of technology enhancing how we live, work, and play. Follow Synaptics on LinkedIn, X, and Facebook, or visit www.synaptics.com.

    Cautionary Statement Regarding Forward-Looking Statements  
    This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to the company’s current expectations and projections relating to its financial condition, results of operations, including the preliminary financial results for the second quarter of fiscal 2025, plans, including the company’s search for a CEO, objectives, future performance and business. Such forward-looking statements may include words such as “expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,” “target,” “strategy,” “continue,” “may,” “will,” “should,” variations of such words, or other words and terms of similar meaning. All forward-looking statements are based upon the company’s current expectations or various assumptions. The company’s expectations and assumptions are expressed in good faith, and the company believes there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including risks related to the completion of the company’s quarter-end financial and accounting procedures, the company’s dependence on its solutions for the Core IoT and Enterprise and Automotive product applications market for a substantial portion of its revenue; the volatility of the company’s net revenue from its solutions for Core IoT and Enterprise and Automotive product applications; the company’s dependence on one or more large customers; the company’s exposure to industry downturns and cyclicality in its target markets; the company’s ability to successfully offer product solutions for new markets; the company’s expectations regarding technology and strategic investments and the anticipated timing or benefits thereof; the company’s ability to execute on its cost reduction initiatives and to achieve expected synergies and expense reductions; the company’s ability to maintain and build relationships with its customers; the company’s dependence on third parties to maintain satisfactory manufacturing yields and deliverable schedule; the company’s indemnification obligations for any third party claims; the uncertainty surrounding macroeconomic factors in the United States, and globally, impacting the supply chain environment, inflationary pressure, workforce reductions, regional instabilities and hostilities (including the conflict in the Middle East), the company’s ability to recruit and retain key personnel, and other risks as identified in the “Risk Factors,” “Management’ Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of the company’s most recent Annual Report on Form 10-K and the company’s most recent Quarterly Report on Form 10-Q; and other risks as identified from time to time in the company’s Securities and Exchange Commission reports. For any forward-looking statements contained in this or any other document, the company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and the company assumes no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

    Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.

    For further information, please contact:  

    Investor Relations  
    Munjal Shah  
    Synaptics  
    +1-408-518-7639
    munjal.shah@synaptics.com

    Media Contact  
    Neeta Shenoy 
    Synaptics 
    +1-408-425-2654
    neeta.shenoy@synaptics.com

    The MIL Network –

  • MIL-OSI USA: The Drive for Better Fuels NASA Employee

    Source: NASA

    Two words come to Tim Stiglets’ mind when he thinks about NASA’s Stennis Space Center near Bay St. Louis, Mississippi – growth and opportunity.
    The Waveland, Mississippi, resident has experienced both in his career at the south Mississippi NASA center.
    He started as a summer intern onsite with Lockheed Martin in 2002. When The University of Southern Mississippi graduate joined the NASA team in 2019, he really started to understand how much activity happens at the unique federal city.
    NASA Stennis is home to more than 50 companies and organizations sharing in site operating costs.
    As a management and program analyst in the NASA Stennis Engineering and Test Directorate, Stiglets serves as the manager of the Product Lifecycle Management (PLM) Program. He describes the program as a one-stop shop for engineering data.
    Product lifecycle management (PLM) consists of technology, people, processes, and tools to track a product throughout its lifecycle.
    Think of it in terms of building a LEGO set. From the time one gets the idea of building the set, to when it is finished, played with, and taken apart, there is a lot to track.
    Stiglets’ work involves much bigger pieces, ranging from managing data for how a test stand is configured to tracking the configuration of NASA Stennis buildings and utilities systems that make up the infrastructure for America’s largest rocket propulsion test site. NASA Stennis facilities are valued at more than $2 billion.
    His work gives him a front-row seat to the growth and opportunity potential of NASA Stennis.
    “The cool thing about PLM is I get to be involved, in some small way, with NASA’s Artemis work, commercial test customers and all the Center Operations projects that support the federal city,” he said.
    The center tests rocket engines and stages to power future Artemis missions to the Moon and beyond. NASA Stennis also works with such commercial test customers as Relativity Space, Blue Origin, Rolls-Royce, Evolution Space, and Vast (formerly Launcher Space).
    “PLM is a center capability that we have evolved, so it does not matter if it is a water system, a test stand or building that is involved. It all kind of relies on, and ultimately somewhere down the line, hits the PLM system that has the drawings and engineering data needed for the project. That is probably the coolest thing about my work. I get to see a lot of different things that are going on in different areas.”
    Stiglets said it feels like every time he turns around, there is someone leasing a new building or joining the NASA Stennis federal city. The center has lease agreements for use of land and infrastructure with Relativity Space, Rocket Lab, and Evolution Space.
    “We have a get-it-done kind of attitude,” Stiglets said. “We are going to do whatever it takes to get the job done. If it is testing engines or anything else, we are going to get it done. From a propulsion testing standpoint, commercial companies that lease areas onsite can come in and have access to contract support and to the NASA folks who have decades worth of knowledge. The companies can leverage all of that expertise and tap into the knowledge.”
    The Long Beach, Mississippi, native speaks with enthusiasm when describing his time at NASA Stennis, where growth and opportunity continue forward.
    “How cool is it to work for NASA, even coming in as a contractor,” Stiglets said. “You get to be involved with something bigger and much beyond south Mississippi. The excitement of being involved with NASA so many years ago was very cool for me, especially being a college student. I still have that same excitement. Many years have passed, and day-to-day work changes, but ultimately, you are still looking to achieve big goals.”

    MIL OSI USA News –