NewzIntel.com

Category: housing

  • MIL-OSI Economics: IPAA Announces Michael Hillebrand as New Board Chairman 

    Source: Independent Petroleum Association of America

    Headline: IPAA Announces Michael Hillebrand as New Board Chairman 

    Jan 28, 2025 IPAA Announces Michael Hillebrand as New Board Chairman 

    Posted at 09:53h in Press Releases by

    IPAA Board Appoints Hillebrand, Huntley & Huntley CEO, as Chairman for 2024-2026 Term 

    WASHINGTON – The Independent Petroleum Association of America (IPAA) board of directors are pleased to announce Michael “Mike” A. Hillebrand, the chief executive officer of Pennsylvania-based Huntley & Huntley, as board chairman for a two-year term through 2026. IPAA advocates for thousands of oil and natural gas producers that develop 90 percent of wells nationwide. The IPAA board approved Hillebrand at the association’s annual meeting in late fall, and Hillebrand officially assumed the role this month.

    “Mike brings fantastic business and technical expertise to the role of chairman, coupled with a passion for industry and association advocacy,” said Jeff Eshelman, IPAA president and chief executive officer. “Past-chairman Steve Pruett, the president and chief executive officer of Elevation Resources, has been invaluable in expanding IPAA’s reach in Texas and the Permian Basin. I look forward to working with Mike on deepening our roots and relationships in my home state of Pennsylvania and throughout the Appalachian Basin formations.”

    Hillebrand is a principal shareholder and chief executive officer of one of the world’s oldest and continuously existing oil and gas companies, Huntley & Huntley (founded in 1912), the founder, shareholder, and board member of its institutional joint venture, Olympus Energy, the fifth largest shale producer in southwestern Pennsylvania. Mr. Hillebrand has thirty-nine years of combined experience in both vertical and horizontal well drilling, completions, and operations, as well as all operating and financial aspects of oil and natural gas business development, assembly and acquisition, and marketing.

    He has played a key leadership role in securing over $1.1 billion of capital funding and/or commitments into several of Huntley’s affiliated companies. One of those companies, Olympus Energy, now operates nearly 100,000 acres and in one of SW Pennsylvania’s last undeveloped core Marcellus, deep Utica and Upper Devonian unconventional shale positions, now producing over 600 mmcf/d.

    Mr. Hillebrand is a graduate of the Pennsylvania State University with a Bachelor of Science degree in Petroleum and Natural Gas Engineering. He is member of the Society of Petroleum Engineers (SPE) and the current Chairman of the Pennsylvania Independent Oil and Gas Association (PIOGA).

    For the full IPAA Board of Directors, visit https://www.ipaa.org/board-of-directors/

    ###

    MIL OSI Economics –

  • MIL-OSI USA: Heinrich, Luján Introduce Resolution Condemning Pardons of Individuals Found Guilty of Assaulting Capitol Police Officers

    US Senate News:

    Source: United States Senator Ben Ray Luján (D-New Mexico)
    Resolution comes after Trump pardons 1,500 criminals convicted of violently assaulting police officers
    WASHINGTON — Today, U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.) introduced a new resolution condemning the pardons of individuals who were found guilty of assaulting Capitol Police Officers.
    The resolution follows the reckless action by President Trump, on the first day of his second term, to grant full, complete, and unconditional pardons to over 1,500 people charged, and in many cases already convicted and incarcerated, with committing crimes in the January 6, 2021 attack on the U.S. Capitol, and to commute the sentences of 14 others, including leaders of the Proud Boys and Oath Keepers, far-right militias. Among those pardoned by Trump were 169 people who pleaded guilty to assaulting police officers on January 6th. During the siege of the Capitol that day, over 80 U.S. Capitol Police Officers were assaulted, as well as over 60 officers from the Washington, D.C. Metropolitan Police Department.
    The senators’ resolution, condemning the pardons for individuals who were found guilty of assaulting Capitol Police Officers, simply states: “Resolved, That the Senate disapproves of any pardons for individuals who were found guilty of assaulting Capitol Police officers.” This week, Senate Democrats will seek unanimous consent on the Senate floor to pass the resolution.
    “These criminals used flagpoles, fire extinguishers and bear spray to assault the police securing the Capitol on January 6. No one who assaults a police officer should be given a ‘get out of jail free card’ from the President,” said Heinrich.
    “What took place at the U.S. Capitol on January 6th is a stain on American history. The events of that have left a scar on many, including the law enforcement officers that defended the Capitol. President Trump’s pardons of violent criminals is a betrayal of the rule of law and our brave law enforcement officers,” said Luján. “I urge my Republican colleagues to join us in condemning this vicious attack on law enforcement and in showing the nation that political violence is unacceptable.”
    According to the U.S. Attorney’s Office for the District of Columbia, approximately 1,572 defendants have been federally charged with crimes associated with the attack of the U.S. Capitol on January 6th. This includes approximately 598 charged with assaulting, resisting, or impeding law enforcement agents or officers or obstructing those officers during a civil disorder, including approximately 171 defendants charged with using a deadly or dangerous weapon or causing serious bodily injury to an officer. As proven in court, the weapons used and carried on the Capitol grounds during the January 6th attack include firearms; OC spray; tasers; edged weapons, including a sword, axes, hatchets, and knives; and makeshift weapons, such as destroyed office furniture, fencing, bike racks, stolen riot shields, baseball bats, hockey sticks, flagpoles, PVC piping, and reinforced knuckle gloves.
    Among others, the individuals who assaulted law enforcement officers and were granted full, unconditional pardons by President Trump this week include:
    Rockne Gerald Earles, of Chama, N.M., who pled guilty last year to two felony assault charges on Capitol Police officers. In one attack, captured on video, Earles wrestled a police officer to the steps outside the Capitol Building. That officer was later hospitalized with a concussion and missed 45 days of work due to his injuries. Earlier this month, federal prosecutors recommended a sentence of 52 months in prison for Earles.
    Taylor James Johnatakis, of Kingston, Washington, was convicted of three felonies in November 2023, including assaulting officers. Prosecutors said that he “coordinated a violent assault on a line of police officers defending” the Capitol and that video shows he “used a metal barricade to attack officers head on and grabbed one officer to prevent him from defending himself against other attacking rioters.”
    Julian Khater, who assaulted a U.S. police office—Brian Sicknick—and later pled guilty to assaulting a police officer with a dangerous weapon.
    Robert Palmer, who attacked police with a fire extinguisher, a wooden plank, and a pole.
    Tyler Bradley Dykes of Bluffton, South Carolina, who was sentenced to 57 months in federal prison for stealing a police riot shield and twice using it against officers. He pleaded guilty to two felony counts of assaulting, resisting or impeding officers.
    Devlyn Thompson, who hit a police officer with a metal baton.
    Andrew Taake, of Houston, Texas, who was sentenced to a little more than six years for assaulting law enforcement officers with bear spray and a metal whip.
    Christopher Quaglin, who federal prosecutors said “viciously assaulted numerous officers” and was one of the most violent rioters, was sentenced to 12 years in federal prison.
    David Dempsey, who, according to prosecutors, “was one of the most violent rioters,” and received 20 years in prison. Prosecutors also said Dempsey had a “very significant history of arrests and convictions” prior to the January 6th attack.
    Daniel Rodriguez, of Fontana, California, who plunged a stun gun into the neck of Washington Police Officer Michael Fanone multiple times.
    Ryan Nichols, of Longview, Texas, who assaulted officers with pepper spray, and later on Jan. 6, at his hotel room, he called for additional violence.
    Howard Richardson, of King of Prussia, Pennsylvania, who struck a police officer three times with a flagpole, hard enough to break the flagpole.
    Robert Sanford, from Chester, Pennsylvania, who hit two police officers in the head with a fire extinguisher and threw a traffic cone at another officer.
    Jonathan Munafo, of Albany, New York, who punched a police officer, stole the officer’s riot shield, and struck a Capitol office window with two poles.
    The resolution is led by U.S. Senators Patty Murray (D-Wash.), Chuck Schumer (D-N.Y.), Chris Murphy (D-Conn.) and Andy Kim (D-N.J.). Alongside Heinrich and Luján, the resolution is cosponsored by U.S. Senators Angela Alsobrooks (D-Md.), Tammy Baldwin (D-Wis.), Michael Bennet (D-Colo.), Richard Blumenthal (D-Conn.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Maria Cantwell (D-Wash.), Chris Coons (D-Del.), Catherine Cortez Masto (D-Nev.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), Ruben Gallego (D-Ariz.), Kirsten Gillibrand (D-N.Y.), Maggie Hassan (D-N.H.), John Hickenlooper (D-Colo.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), Ed Markey (D-Mass.), Jeff Merkley (D-Ore.), Jon Ossoff (D-Ga.), Alex Padilla (D-Calif.), Gary Peters (D-Mich.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Bernie Sanders (I-Vt.), Brian Schatz (D-Hawaii), Adam Schiff (D-Calif.), Jeanne Shaheen (D-N.H.), Elissa Slotkin (D-Mich.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Mark Warner (D-Va.), Raphael Warnock (D-Ga.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.), and Ron Wyden (D-Ore.).
    The text of the resolution is here.

    MIL OSI USA News –

  • MIL-OSI USA: Warren Writes Fox News Digital Op-ed Challenging Elon Musk to Cut $2 Trillion in Waste By Taking On Billionaires and Giant Corporations

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    January 28, 2025
    “Here’s something President Donald Trump, Elon Musk, and I agree on: the federal government throws away trillions of dollars on wasteful spending.”
    “Instead of cutting help for people who rely on Medicare, Social Security and the VA, let’s focus on the billionaires and billionaire corporations who are feasting off the American taxpayer.”
    Warren Op-Ed in Fox News Digital
    Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, published an op-ed outlining her recommendations for cutting government waste to make government more efficient and save taxpayers money. In a public letter last week, Warren proposed 30 recommendations for President Trump and Elon Musk, head of the Department of Government Efficiency, to cut at least $2 trillion in government waste over the next decade. 
    Musk has already walked back his goal of $2 trillion of cuts. Unlike the Republican plans, none of these recommendations would cut access to Medicare, Medicaid, Social Security, veterans’ benefits, and other programs that tens of millions of Americans count on–and instead focus on waste, fraud, and abuse in government spending. 
    Read the full op-ed here and below: 
    Senator Elizabeth Warren: Trump, Musk and I agree on something important. And I’ve got 30 ways to get it doneJanuary 28, 2025
    Here’s something President Donald Trump, Elon Musk, and I agree on: the federal government throws away trillions of dollars on wasteful spending. I have spent years trying to squeeze government waste out of our budget, and I’m ready to work with Musk to make government more efficient and save taxpayers money. But here’s the thing: we need to focus in the right place. Instead of cutting help for people who rely on Medicare, Social Security and the VA, let’s focus on the billionaires and billionaire corporations who are feasting off the American taxpayer.
    After promising his Department of Government Efficiency (DOGE) would cut $2 trillion in government waste, Musk’s ambition is rapidly shrinking. Within weeks, he cut his goal in half to $1 trillion– all before he’s actually cut a single dollar. I don’t want Musk to fold so quickly. I crunched the numbers and found $2 trillion that we could cut over the next 10 years by focusing on the guys who are getting rich off our government. Last week, I sent Musk my blueprint to do just that. 
    Congressional Republicans’ initial plans call for cuts to government programs that millions of Americans rely on to pay their bills each month – things like Social Security, money to cover nursing home costs, and help buying private health insurance. Scrapping essential services is not efficiency; it is cold-hearted cruelty. Tossing old folks out of nursing homes or telling people that their insurance has been cancelled won’t save money; it just makes lives tougher for the families that struggle to pick up the slack. If Musk and the Republicans take that route, it will be a disaster for working people and I will fight back.
    But we don’t have to cut the programs Americans rely on. We can eliminate at least $2 trillion of government waste over the next decade without cutting programs that help our grandparents, our veterans, and our children. In fact, I have 30 specific proposals to do just that. I’ll share a few of them now, but you can read all about them in my letter to Musk here.
    Here are a few examples of government waste we could start with. First, we could negotiate better contracts for the Department of Defense. In 2023, the DoD spent $440.7 billion on contracts – and giant contractors overcharge us on nearly everything. The Air Force pays over 7,500% more on soap dispensers than regular Americans do. The Army pays $71 for pins that should cost less than a nickel. Spending is so out of control at DoD that it is the only agency in government that cannot pass a simple audit. American taxpayers are sick of getting scammed by overpaid military contractors. My recommendations on Defense spending alone would save nearly $200 billion in the next 12 years. 
    Taxpayers are also getting swindled by for-profit health insurance companies. Right now, about half of all seniors have been lured into a privatized Medicare program called Medicare Advantage. This program was started to lower costs for seniors, but over time the insurers figured out how to boost their profits by manipulating claims and denying coverage. It’s so bad now that the non-partisan Medicare Payment Advisory Commission estimates that privatized Medicare insurers overcharged taxpayers by nearly $83 billion in 2024 alone, while other independent researchers put the dollar figure at $140 billion. Rooting out their dirty tactics could save more than a trillion dollars over ten years without cutting Medicare benefits by one penny.
    Cracking down on health care profiteering isn’t a partisan issue. I’ve partnered with Republican Josh Hawley of Missouri to claw back billions more from corporations that are cheating the government on health care costs. He’s not the only Republican who agrees that we need to stop corporations from overcharging taxpayers for lifesaving medications: President Trump has voiced support for another one of my proposals to cut wasteful spending, Medicare price negotiations. By expanding this program to bring the prices down for the most expensive drugs covered by Medicare, the government could save taxpayers another $200 billion over the next decade.
    We can bring down the deficit by cutting spending, but we can also improve our financial position by making millionaires and billionaires pay their fair share. Hedge funds and private equity companies use loopholes to avoid paying anywhere between $1.4 billion and $18 billion each year – that’s an easy fix. By closing just one big estate tax exemption loophole abused by the ultra-rich, the US government could save another $60 billion per year. We should close those loopholes – and fully fund the IRS to catch wealthy tax cheats who think they’re above the law.  
    My list of cuts and loophole closers will save $2 trillion. So where are Elon Musk, Donald Trump and the DOGE project? Why give up so quickly on beating back the defense contractors, health insurance giants, and other huge companies that are ripping off the American people? If Musk and Trump have the courage to cut this waste, I’ve got a plan and 30 specific recommendations to get it done.
    Democrat Elizabeth Warren represents Massachusetts in the United States Senate.

    MIL OSI USA News –

  • MIL-OSI Global: Trump 2.0: the rise of an ‘anti-elite’ elite in US politics

    Source: The Conversation – France – By William Genieys, Directeur de recherche CNRS au CEE, Sciences Po

    US president Donald Trump is surrounded by a new cohort of politicians and officials. While one of his campaign promises was to overthrow the “corrupt elites” he accuses of flooding the American political arena, his second term in office has elevated elites chosen, above all, for their political loyalty to him.

    The media’s focus on Trump’s comments on making Canada the 51st US state and annexing Greenland and billionaire Elon Musk’s support for some far-right parties in Europe has obscured the ambitious programme to transform the federal government that the new political elite intends to implement.

    In the wake of Trump’s inauguration on January 20, the Republican elites most loyal to the MAGA (“Make America Great Again”) leader, who staunchly oppose Democratic elites and their policies, are operating amid their party’s control over the executive and legislative branches (at least until the midterm elections in 2026), a conservative-dominated Supreme Court that includes three Trump-appointed justices, and a federal judiciary that shifted right during his first term.

    However, the political project of the Trumpist camp consists less of challenging elitism in general than attacking a specific elite: one particular to liberal democracies.

    Castigating democratic elitism

    Typical anti-elite political propaganda, along the lines of “I speak for you, the people, against the elites who betray and deceive you,” claims that a populist leader would be able to exercise power for and on behalf of the people without the mediation of an elite disconnected from their needs.

    Political theorist John Higley sees behind this form of anti-elite discourse an association between so-called “forceful leaders” and “leonine elites” (who take advantage of the former and their political success): a phenomenon that threatens the future of Western democracies.

    Since the Second World War, there has been a consensus in US politics on the idea of democratic elitism. According to this principle, elitist mediation is inevitable in mass democracies and must be based on two criteria: respect for the results of elections (which must be free and competitive); and the relative autonomy of political institutions.

    The challenge to this consensus has been growing since the 1990s with the increased polarization of American politics. It gained new momentum during and after the 2016 presidential campaign, which was marked by anti-elite rhetoric from both Republicans and Democrats (such as senators Bernie Sanders and Elizabeth Warren). At the heart of some of their diatribes was an aversion to “the Establishment” on the east and west coasts of the United States, where many prestigious financial, political and academic institutions are based, and the conspiracy notion of the “deep state”.

    The re-election of Trump, who has never admitted defeat in the 2020 presidential vote, growing political hostility and the direct involvement of tech tycoons in political communication –especially on the Republican side– further reinforce the denial of democratic elitism.

    Trump’s populism from above: a revolt of the elites

    The idea that democracy could be betrayed by “the revolt of the elites”, put forward by the US historian Christopher Lasch (1932-1994), is not new. For the anthropologist Arjun Appadurai, it is a particular feature of contemporary populism, which comes “from above.” Indeed, if the 20th century was the era of the “revolt of the masses”, the 21st century, according to Appadurai, “is characterized by the ‘revolt of the elites’.” This would explain the rise of populist autocracies (such as those currently led by Viktor Orban in Hungary, Recep Tayyip Erdogan in Turkey and Narendra Modi in India, and formerly led by Jair Bolsonaro in Brazil), but also the election successes of populist leaders in consolidated democracies (including those of Trump in the US, Giorgia Meloni in Italy, and Geert Wilders in the Netherlands, for example).

    As Appadurai explains, the success of Trumpian populism, which represents a revolt by ordinary Americans against the elites, casts a veil over the fact that, following Trump’s victory in November, “it is a new elite that has ousted from power the despised Democratic elite that had occupied the White House for nearly four years.”

    The aim of this “alter elite” is to replace the “regular” Democrat elites, but also the moderate Republicans, by deeply discrediting their values (such as liberalism and so-called “wokeism”) and their supposedly corrupt political practices. As a result, this populism “from above” carried out by the President’s supporters constitutes an alternative elite configuration, the effects of which on American democratic life could be more significant than those observed during Trump’s first term.

    Beyond the idea of a ‘Muskoligarchy’

    The idea that we are witnessing the formation of a “Muskoligarchy” –in other words, an economic elite (including tech barons such as Jeff Bezos, Mark Zuckerberg and Marc Andreessen) rallying around the figurehead of Elon Musk, whom Trump asked to lead what the president has called a “Department of Government Efficiency” (DOGE) –is seductive. It perfectly combines the vision of an alliance between a “conspiratorial, coherent, conscious” ruling class and an oligarchy made up of the “ultra-rich”. For the Financial Times columnist Martin Wolf, it is even a sign of the development of “pluto-populism”. (It is also worth noting that former president Joe Biden, in his farewell speech, referred to “an oligarchy… of extreme wealth” and “the potential rise of a tech-industrial complex.”)

    However, some observers are cautious about the advent of a “Muskoligarchy.” They point to the sociological eclecticism of the new Trumpian elite, whose facade of unity is held together above all by a political loyalty, for the time being unfailing, to the MAGA leader. The fact remains, however, that the various factions of this new “anti-elite” elite are converging around a common agenda: to rid the federal government of the supposed stranglehold of Democratic “insiders.”

    An ‘anti-elite’ elite against the ‘deep state’

    In his presidential inauguration speech in 1981, Ronald Reagan said: “Government is not the solution to our problem; government is the problem.” The anti-elitism of the Trump elite is inspired by this diagnosis, and defends a simple political programme: rid democracy of the “deep state.”


    Although the idea that the US is “beleaguered” by an “unelected and unaccountable elite” and “insiders” who subvert the general interest has been shown to be unfounded, it is nonetheless predominant in the new Trump Administration.

    This conspiracy theory has been taken to the extreme by Kash Patel, the candidate being considered to head the FBI. In his book, Government Gangsters, a veritable manifesto against the federal administration, the former lawyer writes about the need to resort to “purges” in order to bring elite Democrats to justice. He lists around 60 people, including Biden, ex-secretary of state Hillary Clinton and ex-vice president Kamala Harris.

    Government Gangsters, Kash Patel’s controversial book.
    Google Books

    The appointment of Russell Vought as head of the Office of Management and Budget at the White House, a person who is known for having sought to obstruct the transition to the Biden Administration in 2021, also highlights the hard turn that the Trump administration is likely to take.

    Reshaping the state around political loyalty

    To “deconstruct the administrative state”, the “anti-elite” elites are relying on Project 2025, a 900-plus page programme report that the conservative think-tank The Heritage Foundation, which published it, says was produced by “more than 400 scholars and policy experts.” According to former Project 2025 director Paul Dans, “never before has the entire movement… banded together to construct a comprehensive plan” for this purpose. On this basis, the “anti-elite” elite want to impose loyalty to Project 2025 on federal civil servants.

    But this idea is not new. At the end of his first term, Trump issued an executive order facilitating the dismissal of statutory federal civil servants occupying “policy-related positions” and considered to be “disloyal”. The decree was rescinded by president Biden, but Trump on his first day back in office signed an executive order that seeks to void Biden’s rescindment. As President, Trump is also able to allocate senior positions within the federal administration to his supporters.

    The “anti-elite” elite not only want to reduce the size of the state, as was the case under Reagan’s “neoliberalism”, but to deconstruct and rebuild it in their own image. Their real aim is a more lasting victory: the transformation of democratic elitism into populist elitism.

    Les auteurs ne travaillent pas, ne conseillent pas, ne possèdent pas de parts, ne reçoivent pas de fonds d’une organisation qui pourrait tirer profit de cet article, et n’ont déclaré aucune autre affiliation que leur organisme de recherche.

    – ref. Trump 2.0: the rise of an ‘anti-elite’ elite in US politics – https://theconversation.com/trump-2-0-the-rise-of-an-anti-elite-elite-in-us-politics-248180

    MIL OSI – Global Reports –

  • MIL-OSI Global: Engineering the social: Students in this course use systems thinking to help solve human rights, disease and homelessness

    Source: The Conversation – USA – By Raúl Ordóñez, Professor of Electrical and Computer Engineering, University of Dayton

    An engineering education can equip students to work on broader social issues. Photosomnia/E+ via Getty Images

    Uncommon Courses is an occasional series from The Conversation U.S. highlighting unconventional approaches to teaching.

    Title of course:

    Engineering Systems for the Common Good

    What prompted the idea for the course?

    As a control systems researcher, I have long felt that control systems – and systems science in general – have much to contribute to solving social problems.

    Control systems make other systems behave in some desired manner. Think of the cruise control in a car, which keeps its speed constant, or the thermostat in a house that regulates temperature.

    I wanted to know whether engineers could treat society and social phenomena as systems in the engineering sense. That way, students and researchers could mathematically model and even simulate these phenomena using computers.

    Control systems engineering offers a set of powerful analysis and design tools. I wanted to know whether my students and I could apply these methods to things such as policymaking to help address societal problems.

    What does the course explore?

    In this course, students learn fundamental systems theory concepts, such as block diagrams, feedback loops and discrete-time dynamics. They apply these concepts to mathematically model and analyze social systems.

    In the class, I talk with the students about human rights. We think about how this powerful idea applies to social systems. This systems framework helps us approach social justice issues in a methodical, mathematical manner.

    In Raúl Ordóñez’s class at the University of Dayton, students take engineering concepts and apply them to societal issues.
    Shawn Robinson/University of Dayton

    Students use simulation software to model systems such as disease epidemics, the viral spread of ideas, the tragedy of the commons and homelessness, among others.

    Importantly, they learn that some social phenomena can be methodically studied and engineered, in a quantifiable manner. For example, they can use numbers and data to experiment and evaluate how introducing vaccines affects disease spread.

    By the end of the course, students gain a deeper understanding of the connection between engineering principles and tools and human rights and society.

    Why is this course relevant now?

    This course helps bridge the gap between engineering and social sciences by bringing concepts from human rights and social justice to engineering students. It teaches them how the powerful engineering tools they learn throughout the engineering curriculum can directly serve the common good.

    What’s a critical lesson from the course?

    The course is a concrete step toward teaching engineering and science students that engineering has more to offer to society than its direct applications. Students learn that a partnership between the humanities and engineering is not only possible but strongly desirable for the advancement of the common good.

    What materials does the course feature?

    There is no one textbook that deals with all the topics in this course, although the book “Humanitarian Engineering: Advancing Technology for Sustainable Development,” third edition, by Kevin M. Passino, is a very useful resource. I have mostly developed my own materials, including my set of lecture notes, projects and numerical simulation code.

    Many engineers use tools in engineering to help people and communities.

    What will the course prepare students to do?

    The course aims to prepare students to apply common engineering tools such as differential equations, signals and systems, systems analysis, mathematical models and numerical simulation to the analysis of social problems, with an emphasis on human rights implications.

    It also introduces social modeling as a powerful method for understanding social issues and assessing how various policies affect human rights.

    My goal is to produce engineering students who can meaningfully contribute to policymaking by using engineering tools to assess the consequences of social and economic policies.

    Dr. Kevin M. Passino was my doctoral research adviser at the Ohio State University, where I did my PhD.

    – ref. Engineering the social: Students in this course use systems thinking to help solve human rights, disease and homelessness – https://theconversation.com/engineering-the-social-students-in-this-course-use-systems-thinking-to-help-solve-human-rights-disease-and-homelessness-242893

    MIL OSI – Global Reports –

  • MIL-OSI Global: Getting mail to your door is just one part of what the postmaster general does

    Source: The Conversation – USA – By Jena Martin, Professor of Law, St. Mary’s University

    Postal workers sort through mail and packages. Frederic J. Brown/AFP via Getty Images

    The postmaster general is responsible for getting billions of pieces of mail across the globe, managing hundreds of thousands of employees and caring for some of the country’s most vulnerable Americans.

    The agency is currently run by Postmaster General Louis DeJoy, who served in President Donald Trump’s first administration and during President Joe Biden’s term as well. He is one of the few key advisers to serve in both Trump administrations.

    I’m a law professor who has studied the United States Postal Service and the role of the postmaster general.

    Here’s what having the job of overseeing the Postal Service entails. Spoiler: It’s about more than getting your mail delivered.

    Sprawling duties of the postmaster

    The postmaster general overseas a vast operation.

    Over 44% of the world’s mail is processed and delivered by the U.S. Postal Service, making it the largest delivery service in the world.

    In 2023 alone, the Postal Service handled 116.2 billion pieces of mail. And while processing and delivering mail is the key component of the Postal Service’s mission, it has other responsibilities as well.

    In many ways, in fact, it’s the nondelivery parts of the organization that have the biggest impact on the U.S. economy.

    In 2023, USPS owned or leased 22,873 properties around the country. To place this in perspective, the General Services Administration – known as “America’s landlord” – owns or leases only 8,800 properties.

    The agency also paid US$2 billion in salary and benefits to its 525,469 career employees and processed more than 8.5 million passport applications.

    Finally, USPS has a mandate that supports the health of many Americans. The service’s “last mile” delivery commitment ensures that all Americans – even those living in rural communities – receive mail delivery six days a week. This is particularly important for people without easy access to medical services, as it often provides lifesaving medications to people in need.

    Those are all official duties. Unofficially, the Postal Service has long been known to assist elderly citizens and respond to emergency situations that occur on letter carriers’ routes. In early January 2025, for example, a Massachusetts mail carrier was able to save a house from burning by quickly extinguishing a fire.

    As my co-author Matt Titolo and I have written elsewhere, “Americans depend on USPS for a host of essential services including food, medicine, paying bills, shopping, and running small businesses.”

    Deep roots in US history

    That deep connection with communities has been a part of USPS since its founding. In fact, the postal system is older than the nation itself, with Benjamin Franklin serving as the first head of the organization beginning in 1775.

    When the U.S. Constitution was ratified in 1789, it included Article 1, Section 8 – generally known as the postal clause – which explicitly gives Congress the power “to establish Post Offices and post Roads” and “to make all Laws which shall be necessary and proper” to implement the task.

    A faded postcard sent in 1912.
    Jena Ardell via GettyImages

    Until 1971 the postmaster general was a Cabinet-level position and fifth in the presidential line of succession – coming right after the attorney general and right before the secretary of the Interior. The postmaster general was removed from the Cabinet, and the line of succession, in 1971 when Congress reorganized the Post Office and gave it its new name of the U.S. Postal Service.

    Since that reorganization, the president no longer has the power to appoint – or fire – the postmaster general. That power lies with the Board of Governors of the Postal Service, whose members are appointed by the president with the advice and consent of the Senate.

    The future of the Postal Service

    Over the years, postmaster generals have discussed moving USPS away from its roots as a service-oriented organization and toward a typical business operation. Presidential candidates, including Trump, have called for either full or partial privatization of the agency.

    Indeed, USPS faces continuous deficit problems. But privatization and a resulting focus on profits would likely increase the cost of mailing a letter, a change that would disproportionately affect low-income individuals and small businesses – and could even result in service cuts to rural areas, making life for Americans living there harder and less healthy.

    As Forbes reports, critics and proponents of the move to privatize acknowledge it could result in “fewer days of mail services, longer mail delivery timelines or less access to USPS services.”

    This story is part of a series of profiles of Cabinet and high-level administration positions.

    Prof. Martin’s husband has been employed with the Postal Service for the last twenty-nine years.

    – ref. Getting mail to your door is just one part of what the postmaster general does – https://theconversation.com/getting-mail-to-your-door-is-just-one-part-of-what-the-postmaster-general-does-246861

    MIL OSI – Global Reports –

  • MIL-OSI United Kingdom: Middle East: Minister for Development’s statement, 28 January 2025

    Source: United Kingdom – Executive Government & Departments

    Development Minister Anneliese Dodds gave an oral statement to the House of Commons on the ceasefire agreement in Gaza and effect on humanitarian aid.

    With permission, I will update the House on the ceasefire agreement in Gaza and detail our latest efforts to get aid to those in desperate need.

    Madam Deputy Speaker, this is a fragile ceasefire – but it brings much-needed hope for the Israeli and Palestinian people.

    The agreement to end the fighting and release the hostages is what this Labour government has been pressing for from the moment we came to office.

    I thank Qatar, Egypt and the US for their tireless efforts, and echo the Prime Minister in wishing Emily Damari and the other former hostages well as they begin to recover from their horrific ordeals.

    We continue to call, Madam Deputy Speaker, for their immediate release of all those still waiting to be reunited with their loved ones, including the remaining hostages with links to the UK.

    Madam Deputy Speaker, civilians in Gaza have endured suffering that defies belief, and this deal brings hope that they can start to rebuild their lives.

    In the days since the guns were silenced, Israel has opened up mechanisms to surge in aid.

    The UN and aid organisations have been working tirelessly to deliver the humanitarian aims of the ceasefire agreement.

    After so much time waiting at the border – delays I saw for myself in December – trucks are now streaming in.

    Partners on the ground report that more than 200,000 food parcels have been dispatched to more than 130 distribution points since the ceasefire.

    This government has been at the forefront of the humanitarian effort in Gaza since we came to office.

    Overturning the suspension of funding to UNRWA and then boosting our support. Supporting UK-Med field hospitals to help the injured. Working with Egypt to support those Medevac-ed out of Gaza and providing vital resources to UNICEF and the World Food Programme.

    Today, I am pleased to announce that the UK is investing in the ceasefire.

    UK support will be distributed to the UN and key medical partners, so that tens of thousands of civilians get the healthcare, food and shelter they need.

    That support will amount to £17 million from the UK to get more aid into Gaza and restore services. The figure also includes £2 million for the World Bank to support the construction and restoration of critical water and energy infrastructure.

    The UK has already helped around 284,000 people in Gaza to access water, sanitation and hygiene services.

    Today’s uplift brings our commitment for the Occupied Palestinian Territories and Palestinian refugees in the region to £129 million this financial year.

    I am also pleased to announce to the House that this morning, Jordanian air force helicopters started landing in Gaza with UK-funded medical supplies and logistical support from UK armed forces.

    I thank Jordan for their excellent commitment to getting aid in, in such challenging circumstances. We will continue to support our Jordanian partners in this initiative.

    But more action is needed.

    The air bridge to Gaza is no substitute for road routes, which must remain open.

    We also call on Israel to allow more essential items like tents, mattresses and medical equipment in.

    As people start to move home, basic services need to be put back in place, and unexploded bombs and mines cleared.

    Without this, even more lives will be lost.

    And of course, the UN and humanitarian agencies must be able to operate freely.

    This Government has repeatedly stated the need for UNRWA to continue its lifesaving assistance to the people of Gaza, Jerusalem and the West Bank.

    The Knesset legislation taking effect on the 30th of January risks impeding the progress made since the ceasefire. Israel must allow the agency to continue to operate.

    The legislation does not and cannot change the fact that Israel has a responsibility under international law to facilitate humanitarian assistance.

    As the UN Security Council heard last week, a million Gazan children need support to process their traumatic experiences – their suffering cannot be underestimated.

    And around fifteen and a half thousand patients need medical evacuation, according to the World Health Organisation. Routes must be opened for them to get this treatment.

    Madam Deputy Speaker, the UK and wider international community stand ready to support Palestinians as they begin to rebuild their lives, their homes and their communities.

    We are under no illusions concerning the scale of the challenge ahead.

    The overwhelming majority of homes in Gaza are damaged or destroyed. The economy has collapsed. And basic services, including energy and water, have been knocked out.

    So, we are working with partners to urgently find ways to

    best finance and support recovery and reconstruction efforts.

    It is essential that the coming surge of assistance is properly coordinated, and with the access and security to reach those in need.

    The Palestinian Authority has a crucial role to play and we are providing technical and financial assistance to the Authority, including to support the urgent recovery of basic services.

    Madam Deputy Speaker, the UK has always been clear that this ceasefire is just the first step. We must build confidence on all sides to help sustain it, progress through all its phases and turn it into a lasting peace that assures the security of Israelis and Palestinians alike.

    The UK will focus all of our efforts on keeping up the momentum, using every diplomatic channel available.

    As you will know, Madam Deputy Speaker, the Foreign Secretary and the Minister for the Middle East kept up the drumbeat of engagement during their visits to Egypt and the United Nations last week.

    We will keep up the pace until every hostage is released, aid reaches all those in need, and Palestinians are able to rebuild their homes and their lives.

    I commend this statement to the House.

    Updates to this page

    Published 28 January 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Government opens discussions with Community Pharmacy England over 25/26 funding contract

    Source: United Kingdom – Executive Government & Departments

    The consultation will set the future direction for the community pharmacy sector.

    The Department of Health and Social Care (DHSC) has entered into consultation with Community Pharmacy England (CPE) regarding the 2024/25 and 2025/26 funding contractual framework.

    The discussions will set the future direction for community pharmacy as it plays a vital role in supporting delivery of the reforms set out in the government’s Plan for Change.

    A letter signalling the start of the consultation was sent to CPE on Monday.

    Moving the focus of care from hospitals into the community is one of the three core shifts outlined in the 10 Year Health Plan, which will be published later this year. The government has previously outlined its ambition to make better use of pharmacists’ skills and training to deliver more services for patients within their local communities.

    Minister of State for Care, Stephen Kinnock said:

    Community pharmacists are at the heart of local healthcare, and they have a vital role to play as we shift from hospital to community, giving patients better access to care, closer to home, through our 10 Year Health Plan.

    We have inherited a sector that is suffering from years of underfunding and neglect, but we recognise the hard work pharmacists undertake every day to deliver for patients.

    I am committed to working closely with Community Pharmacy England to agree a package of funding that is reflective of the important support that they provide to patients up and down the country. I am confident that together we can get the sector back on its feet and fit for pharmacies and patients long into the future.

    Janet Morrison, Chief Executive of Community Pharmacy England said:

    We are relieved that discussions on the arrangements for community pharmacy are now commencing.

    Community Pharmacy England will consider very carefully if the proposals that the Government is putting on the table address the severity of the funding crisis in community pharmacy.

    Everyone in community pharmacy shares the Government’s ambition for a vibrant community pharmacy sector, playing a vital role in delivering long term health plans, but this can only be achieved if the sector is put on a sustainable financial footing.

    Amanda Doyle, National Director for Primary Care for NHS England, said:

    The NHS knows just how important pharmacies are to local communities – they offer people convenient care close to home which is a key ambition of the 10 Year Health Plan.

    We recognise that pharmacies are under pressure, and we are committed to working with the sector and government to ensure that patients can continue to receive high-quality care building on the exceptional work of teams over the past few years to develop and expand new services for patients.

    ENDS.

    Updates to this page

    Published 28 January 2025

    MIL OSI United Kingdom –

  • MIL-OSI Russia: Marat Khusnullin: The number of energy-efficient houses under construction has increased by 14%

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    The Russian construction industry is increasingly using technologies aimed at increasing energy efficiency. Thus, according to DOM.RF, at the beginning of 2025, almost 3.7 thousand apartment buildings with energy efficiency of A and higher are being built. This is 14% more than the year before. This was reported by Deputy Prime Minister Marat Khusnullin.

    “The development of energy-efficient housing construction in the country has become possible thanks to comprehensive approaches developed to improve the infrastructure. This is also facilitated by the green GOST R created by the Ministry of Construction and DOM.RF for apartment buildings. Also, to stimulate the construction of such housing, targeted financial support measures are being introduced in the country and systematic work is being carried out to improve the quality of data on the energy efficiency of the housing stock. All this together gives citizens comfortable living, since utility costs are significantly reduced in such houses. As of January 1, 2024, 3,139 energy-efficient houses were under construction, and a year later – already 3,667. The total living area of green buildings is 43.7 million square meters,” said Marat Khusnullin.

    At the beginning of 2025, Moscow became the leader in the construction of energy-efficient housing, reaching 12.4 million square meters. It is followed by the Moscow Region (4.4 million square meters) and the Tyumen Region (2.4 million square meters). Next on the list are the Sverdlovsk Region (2 million square meters), Primorsky Krai (1.8 million square meters), St. Petersburg (1.7 million square meters) and Krasnoyarsk Krai (1.1 million square meters).

    “Over the year, the geography of energy-efficient housing construction has expanded and now covers 82 regions. The share of green buildings among all buildings at the construction stage is also steadily growing – from 24.5% in 2021 to 32% at the beginning of 2025. All this is the result of comprehensive work on the sustainable development of the industry, which the Russian Government is carrying out together with DOM.RF. It includes the development of green standards, the launch of targeted measures to support high-quality projects within the framework of preferential project financing with a cluster approach and the creation of conditions for the transition of developers to a closed-loop economy,” said Vitaly Mutko, General Director of DOM.RF.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI Russia: Results of the International Festival of the Merry and Inventive: the Scientific and Methodological Center of KVN will open at the State University of Management

    Translartion. Region: Russians Fedetion –

    Source: State University of Management – Official website of the State –

    From January 21 to 25 this year, the fourth All-Russian forum “KVN – School of Leaders” was held in Sochi as part of the International Festival “KiViN-2025”. The event was organized by the Ministry of Science and Higher Education of the Russian Federation, the State University of Management and the Television Creative Association “AMiK”.

    The goal of the Forum is to strengthen and further develop the youth movement of the Club of the Merry and Resourceful among employees of federal and regional executive authorities involved in the implementation of youth policy and educational work, as well as specialists from higher education institutions involved in programs in the same areas.

    The central event of the Forum was the panel discussion “KVN – School of Leaders”. The participants were greeted via videoconference by Deputy Minister of Science and Higher Education Olga Petrova. The speakers of the panel discussion were:

    — Tatyana Omelchuk – representative of the Department for Public Projects of the Presidential Administration; — Vladimir Stroyev – rector of the State University of Management; — Alexander Maslyakov – general director of TTO “AMiK”; — Anton Serikov – general director of the Mashuk Knowledge Center; — Ruben Partevyan – deputy general director of TTO “AMiK”; — Pavel Pavlovsky – vice-rector of the State University of Management.

    The participants discussed the scale of the KVN movement in Russian universities, which involves about 22 thousand activists from all over the country, who played about 650 games at their universities last year. “KiViN-2025” brought together more than 550 teams in Sochi. All of them represent enormous potential for the development of youth policy and creative industry in their regions.

    In order to develop the university movement of the cheerful and resourceful, with the support of the Ministry of Education and Science of Russia, it was decided to create a Scientific and Methodological Center for KVN on the basis of the State University of Management, which will help everyone who wants to organize their games, leagues and cups, teach them how to interact with the management of universities, seek financial support outside of universities, and set the right vector for the development of student KVN in Russia.

    The Forum program was rich and diverse. Key tasks and goals were presented at the introductory session. During the first day, participants also had a unique opportunity to meet with the management of TTO “AMiK”, discuss the prospects for the development of the KVN movement, and exchange their experiences with each other in an informal setting.

    The second day opened with a lecture on the role and importance of the movement of the cheerful and resourceful in achieving the national goal – revealing the potential of each person, developing their talents and nurturing patriotism and social responsibility. Later, the participants had the opportunity to talk with the head of the Safe Internet League Ekaterina Mizulina. During the day, master classes were held on the legal aspects of organizing KVN games, as well as issues of interaction between official children’s leagues and regional branches of the “Movement of the First”.

    The third day of the forum included a workshop on “Creative and motivational aspects of organizing Club games in educational institutions.” A strategic session on new forms of integrating the KVN movement into state youth policy was also held with the participation of representatives of the Department of State Youth Policy and Educational Activities of the Ministry of Education and Science of the Russian Federation.

    The last, fourth day, January 24, gave the participants the opportunity to attend a lecture on the formation of federal standards for organizing KVN games and training teams of various levels. This was followed by a strategic session dedicated to children’s KVN, issues of its development and interaction at the local level.

    The organizers expressed confidence that the Forum will be an important step towards strengthening and further developing the KVN youth movement in Russia, contributing to the formation of a new generation of leaders capable of making a significant contribution to the future of the country.

    At the International Festival “KiViN-2025” the State University of Management was represented by four teams: “Singlplayer”, “Ikhnie”, “Fildepersovye” and “Kontora”. The guys coped with dignity, showing brilliant performances and a high level of training.

    “Singlplayer” once again made it to the second round of the festival and eventually received an invitation to the show “League of Cities” on TNT. “Fildepersovye” made it to the second round for the first time, performed in front of Alexander Maslyakov and got the opportunity to play in the Central Leagues of the International Union of KVN. “Kontora” made a successful debut at the Sochi festival and received an “increased rating”, which is a significant achievement for newcomers and gives the right to perform in the Central Leagues.

    Moreover, these three teams were nominated for the “Break of the Day” after their performances in the first round. The editors only award this nomination to 5 out of 80-90 teams whose performances were the funniest and most memorable.

    The KiViN-2025 festival for the teams of the KVN League of the State University of Management was incredibly successful. We are proud of the guys for their work, creativity and desire to win. Congratulations to everyone and wish them great success in the next season!

    Subscribe to the TG channel “Our GUU” Date of publication: 01/28/2025

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI Russia: “Origami. Funny animals” in the club “Atom”

    Translartion. Region: Russians Fedetion –

    Source: Moscow Government – Government of Moscow –

    The Atom club will host an origami master class. Participants will create animal figures — from playful kittens to graceful cranes — and, under the guidance of an experienced teacher, will learn the basics of this ancient art. The class will tell you about the best types of paper, useful tools, and important techniques that will help you achieve excellent results. The crafts you create can become both an original decoration for your home and a touching gift.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

    https: //vv.mos.ru/afisha/event/330027257/

    MIL OSI Russia News –

  • MIL-OSI USA: FEMA To Offer Tips for Home Repair and Rebuilding in the Upstate

    Source: US Federal Emergency Management Agency

    Headline: FEMA To Offer Tips for Home Repair and Rebuilding in the Upstate

    FEMA To Offer Tips for Home Repair and Rebuilding in the Upstate

    COLUMBIA, S.C. – Residents repairing and rebuilding following Hurricane Helene can visit two Home Depot locations in Spartanburg County to get tips and advice on making homes stronger and safer against storms and other hazards. The Federal Emergency Management Agency mitigation specialists will be available Jan. 27-Jan. 31, 9 a.m.- 6 p.m., to answer questions and share home-improvement tips and other proven building methods to prevent or lessen damage from future disasters. They will also share techniques for rebuilding hazard-resistant homes. This free information is geared toward do-it-yourselfers and general contractors.The locations are:Home Depot, 121 Dorman Center Drive, Spartanburg, SC 29301 Home Depot, 2300 E. Main St., Spartanburg, SC 29307FEMA specialists can answer questions and discuss topics such as:Techniques for home repair and rebuilding.Methods for preventing damage from future disasters.Tips for reducing your disaster risk – whether you own or rent a home.FEMA is encouraging South Carolinians affected by Hurricane Helen to apply for federal disaster assistance as soon as possible. The deadline to apply is Jan. 28, just one day away. The quickest way to apply is to go online to DisasterAssistance.gov. You can also visit a Disaster Recovery Center, apply using the FEMA App for mobile devices or by calling toll-free 800-621-3362. The telephone line is open every day, and the help is available in many languages. If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA your number for that service. For a video with American Sign Language, voiceover and open captions about how to apply for FEMA assistance, select this link.FEMA programs are accessible to survivors with disabilities and others with access and functional needs. 
    martyce.allenjr
    Tue, 01/28/2025 – 14:15

    MIL OSI USA News –

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

    Source: GlobeNewswire (MIL-OSI)

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

    Management Discussion of the Quarter and Full-year Results

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

    Key Points for Fourth Quarter and Our Go-Forward Strategy

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

    Fourth Quarter 2024 Financial Highlights

    The tables below outline some of our key operating metrics.

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

    See footnotes that follow the tables below

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

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

    Key Performance Ratios

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

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

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

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

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

    Management Outlook; CEO Eric Sprink

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

    Coastal Financial Corporation Overview

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

    CCBX Performance Update

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

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

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

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

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

    The following table details the CCBX loan portfolio:

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

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

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

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

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

    The following table details the CCBX deposit portfolio:

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

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

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

    Community Bank Performance Update

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

    The following table details the Community Bank loan portfolio:

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

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

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

    The following table details the community bank deposit portfolio:

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

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

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

    Net Interest Income and Margin Discussion

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

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

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

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

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

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

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

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

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

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

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

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

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

    Noninterest Income Discussion

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

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

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

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

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

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

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

    Provision for Income Taxes

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

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

    Financial Condition Overview

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

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

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

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

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

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

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

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

    Asset Quality

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

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

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

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

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

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

    (1) Annualized calculations shown for periods presented.

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

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

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

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

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

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

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

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

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

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

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

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

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

    About Coastal Financial

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

    CCB-ER

    Contact

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

    Forward-Looking Statements

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

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

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

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

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

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

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

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

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

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

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

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

    Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

    (1) Annualized calculations for periods presented.

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

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


    APPENDIX A –
    As of December 31, 2024

    Industry Concentration

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    APPENDIX B –
    As of December 31, 2024

    CCBX – BaaS Reporting Information

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

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

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

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

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

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

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

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

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

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

    About Wintrust    

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

    About LPL Financial   

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

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

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

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

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

    Forward-Looking Statements  

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

    Contacts   

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

    LPL Investor Relations   
    investor.relations@lplfinancial.com   

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

    Tracking: 686437 

    The MIL Network –

  • MIL-OSI: Finance Teams Prioritize ESG Reporting but Lack Adequate Technology, Finds insightsoftware Report

    Source: GlobeNewswire (MIL-OSI)

    RALEIGH, N.C., Jan. 28, 2025 (GLOBE NEWSWIRE) — insightsoftware, the most comprehensive provider of solutions for the Office of the CFO, today released its 2025 ESG Insights and Challenges Report. The report highlights the growing complexities that global organizations face in ESG reporting, including the challenges finance leaders experience gathering, integrating, and analyzing data from multiple sources.

    With the Corporate Sustainability Reporting Directive (CSRD) set to take effect in the EU in 2025, the research explores how unprepared organizations are to meet the new regulatory requirements. Notably, 52% of businesses rely on data from more than five sources for ESG reporting, underscoring significant hurdles to achieving compliance.

    This report reveals that while many organizations across the EU and the UK express confidence in their ability to comply with regulations like the CSRD, they struggle to find the right tools to accomplish the necessary compliance tasks. In fact, 58% of organizations are already exploring new technology to enhance their ESG reporting capabilities. Complying with regulations like the CSRD and overcoming reporting roadblocks remain highly important for global organizations to meet their ESG goals.

    Key findings from the report include:

    • Technology capabilities are lacking: With 92% of organizations concerned that their ESG reporting processes won’t scale to meet future regulatory demands, organizations are finding it increasingly difficult to identify the necessary tools tailored to their operational needs. They cite data security and privacy concerns as the most prevalent issue (59%), given the sensitive nature of ESG data and regulatory scrutiny.
    • The compliance path forward is uncertain: Companies that do business in the EU need to comply with CSRD, however more than half of decision-makers remain heavily uncertain and confused about its requirements (52%). The primary goal of ESG reporting is to improve transparency and stakeholder engagement say 49%, and 86% of ESG decision-makers overwhelmingly value data visualization and dashboards as the most valuable features in an ESG technology solution.
    • Complex, timely processes hinder ESG reporting success: Amidst the digitalization wave, organizations fight against a steady influx of data. Data collection is the biggest hurdle, responded 95% of decision-makers. In fact, over half (52%) report spending more than four weeks each year solely on collecting data.

    “Without the proper tools, global businesses risk hampering their organization’s ability to comply with ESG regulatory requirements,” said insightsoftware General Manager, EPM & Controllership, Monica Boydston. “This is why tools like the insightsoftware ESG Reporting Solution are crucial to enable teams to seamlessly collect, consolidate, analyze, and disclose ESG data from any source, reducing the risk of non-compliance and costly reporting errors.”

    Leveraging established technologies in close and consolidation, disclosure management, and business intelligence (BI) that are trusted by thousands of customers worldwide, insightsoftware ESG provides the controls, audit trails, and security necessary for delivering investor-grade data and meeting regulatory filing requirements. It enables businesses to effectively measure the impact of their ESG initiatives, helping to attract ESG-focused investors.

    Download the complete findings of the 2025 ESG Insights & Challenges Report here to learn how finance decision-makers can begin to address their ESG reporting challenges.

    To explore insightsoftware ESG and how it can better support an organization’s sustainability goals from data collection to compliance and stakeholder communication, visit here.

    Research Methodology
    insightsoftware’s 2025 ESG Insights & Challenges report was developed in coordination with Hanover Research. It was conducted to gain insights into the current trends and challenges facing finance leaders. To achieve this objective, a quantitative survey was administered to a sample of 400 ESG decision-makers across France, Germany, Finland, Sweden, and the UK. The survey targeted professionals at the director level or higher from organizations with over 500 employees, spanning accounting, finance, compliance, executive teams, regulatory affairs, and sustainability roles.

    About insightsoftware

    insightsoftware is a global provider of comprehensive solutions for the Office of the CFO. We believe an actionable business strategy begins and ends with accessible financial data. With solutions across financial planning and analysis (FP&A), accounting, and operations, we transform how teams operate, empowering leaders to make timely and informed decisions. With data at the heart of everything we do, insightsoftware enables automated processes, delivers trusted insights, boosts predictability, and increases productivity. Learn more at insightsoftware.com.

    Media Contacts
    Inkhouse for insightsoftware
    insightsoftware@inkhouse.com  

    Daniel Tummeley
    Corporate Communications Manager
    PR@insightsoftware.com

    The MIL Network –

  • MIL-OSI Economics: Making Everyday Life Special With Galaxy AI

    Source: Samsung

    Returning home after an exciting trip doesn’t mean the very next day can’t be special. With the power of Galaxy AI1, every day becomes a day to treasure. Samsung Newsroom delved into how the Galaxy S25 series can fill your daily life with joy and meaning as you cook, draw or spend time with your friends and family.
    Save Special Moments in Videos as GIFs
    ▲ AI Select can isolate a specific moment in the middle of video to be downloaded as a GIF.
    Sometimes there can be a certain moment in the middle of a video you’re watching that you simply want to save separately or watch on repeat. Downloading the whole video, finding that exact part and editing it, however, can be quite a time-consuming task. Whether you want to capture a warm moment with your family to cherish the memory or analyze your golf swing in detail to practice over and over again, AI Select can get the job done. While watching the video, simply open the quick panel, tap the AI Select icon and save the desired portion as a GIF.

    Scan What’s in Your Fridge, Receive Recipe Recommendations and Save Them as a Samsung Note
    ▲ The Galaxy S25’s AI agents analyze the contents of a refrigerator and recommend recipes.
    For those who enjoy cooking, there’s nothing more exciting than trying out a new recipe. When you’re out of ideas for what to cook, the Galaxy S25 series can be just the solution you need. Use the camera to snap a photo of what’s in your fridge, and Galaxy AI will analyze the items, recommend recipes and thoroughly guide you through the cooking process so you can transform ordinary ingredients into extraordinary dishes.

    Enter Some Text and Watch Galaxy AI Draw a Masterpiece
    ▲ Drawing Assist generates an image of a cat watching fireworks using text input.
    With visual content increasing in importance by the day, the tough job of synthesizing and producing high-quality images in bulk has never been in higher demand. It’s only natural to imagine a dream world where AI could dramatically streamline the workload by generating all kinds of vivid images by typing text? That world is no longer an imagination with the Galaxy S25 series’ Drawing Assist and its limitless possibilities. With Drawing Assist, anyone can easily create stunning images using simple text input. For example, typing “watching fireworks” after drawing a very rough sketch of a cat with your finger or an S Pen and will generate images of a cat watching fireworks in a variety of styles, including visual aids, 3D and illustrations. These images can then be used for social media content, visual training materials presentations and more.

    1 Galaxy AI features by Samsung are free through 2025 and require Samsung account login.

    MIL OSI Economics –

  • MIL-OSI Global: 4 steps to building a healthier relationship with your phone

    Source: The Conversation – Canada – By Jamie Gruman, Professor of Organizational Behaviour, University of Guelph

    Being constantly connected to your electronic devices, and the social media they enable, may be bad for your health and well-being and working remotely only compounds these challenges.

    Until very recently, I didn’t have a smartphone. In 2018, I wrote an article outlining the benefits of not being connected to the world through a phone. I was perfectly content living a largely disconnected life.

    However, since that time, things have changed.

    It is increasingly difficult to manage life without a smartphone. I recently took my family to a baseball game and would have been unable to access the ballpark without a smartphone because the phone serves as your tickets. Without a phone, I might not be able to enter a concert I bought tickets for, and it is increasingly difficult to order takeout. Reluctantly, I now own a smartphone.

    Ready to make a change? The Quarter Life Glow-up is a new, six-week newsletter course from The Conversation’s UK and Canada editions.

    Every week, we’ll bring you research-backed advice and tools to help improve your relationships, your career, your free time and your mental health – no supplements or skincare required. Sign up here to start your glow-up at any time.

    Working from home, or remotely, has only magnified these challenges. Being constantly electronically connected can make it difficult to separate work from home, leading you to being constantly “on call.” This can further keep you in a perpetual state of activation.

    In general, excessive smartphone use is associated with anxiety and depression and compromised sleep. Further evidence suggests that being in contact with work when physically outside of the workplace can lead to higher levels of distress as opposed to those who leave the workplace behind them when they depart.

    So how can you manage if your home is your remote workplace? These four tactics can help you establish a clear boundary between work and home.

    1. Create physical boundaries

    Use physical space or objects to create a separation between work and home. For example, closing or locking the door to a home office creates a physical and psychological barrier that keeps you away from your laptop and helps you split your work life from your home life.

    If you do not have a home office, you may have a dedicated work area. Erecting a divider, such as a folding screen or even an unused bed sheet, can serve the same purpose.

    To maintain a strict separation of work and home, consider getting a work phone to separate work from personal communications. Outside of work, consider leaving your phone at home when going out for leisure activities in the evening or on weekends to help you escape electronics completely — though be sure to let trusted individuals know where you will be if you plan on disconnecting for an extended period of time.

    Simply put, keep your work space separate and view your phone as nothing more than a highly advanced landline of old, plugged into a specific area of your home and unable to be taken further.

    2. Create temporal boundaries

    Set boundaries around when you will address things, and how much time you will devote to work. It is more and more common to see messages in email signatures noting the days and hours during which people will respond to messages. This is a positive development.

    You can also block out time in your schedule to address work and non-work issues. If you have a phone that you use exclusively for work, turn it off and charge it during the times you don’t intend to be working. Protecting your time with such tactics is an effective way to promote work-life balance and maintain a healthy relationship with technology.

    3. Create behavioural boundaries

    Establish behaviours which help you separate work from home. Turning off the ringer and buzzer on your phone prevents you from being distracted and disturbed when enjoying leisure time.

    If your work involves social media, then try using different social media platforms for work and non-work to help you avoid being inadvertently drawn into work-related matters when you are trying to enjoy personal time. Or, consider switching to one of the many new “dumbphones” entering the market.



    Read more:
    Does being away from your smartphone cause you anxiety? The fact that it makes you available 24/7 could be the reason

    You can also team up with others. In the same way that doctors in a clinic will schedule one partner to be on call at a time so that the other partners can fully escape from work after hours, you can join forces with others who do similar work and redirect calls on a rotating basis so you do not have to worry about always being contacted.

    4. Create communication boundaries

    Once these tactics have been established, you should communicate them. Establish expectations about when you will and won’t be available. Note that this may require some negotiation.

    If people contact you out of ignorance of your personal policy, simply advise them of it. If they intentionally violate your boundary, consider your relationship with the violator before addressing them. You don’t want to rebuke your boss, but you should be firm in protecting your boundaries.

    Stay in control

    In the end, you need to ensure that you own your phone and not the other way around.

    When used excessively, electronic devices can become a chain that shackles us, as opposed to a tool that enables us. Our phones can become an addiction. Like any other form of addiction, we lose control of our phones when they make demands of us that we feel compelled to answer.

    There are times when work or urgent situations require us to be electronically available. However, outside of the times you must be available, any time you feel your phone making a demand of you, turn it off.



    Read more:
    What millennials and gen Z professionals need to know about developing a meaningful career

    Now that I have a smartphone, some things in life are easier and more pleasant. I can avoid traffic jams when driving. My wife and I can discuss purchases before buying, and I can play games on my phone while waiting for a friend to arrive at a restaurant. But I don’t allow the phone to dictate how I live.

    Acquaintances of mine will sometimes get upset when they text me. Because I don’t keep my phone on my hip, I usually don’t respond right away. If they voice their displeasure, I’m secretly pleased; it reminds me that I have a healthy relationship with my phone. I’m in command of it. It’s not in command of me.

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

    – ref. 4 steps to building a healthier relationship with your phone – https://theconversation.com/4-steps-to-building-a-healthier-relationship-with-your-phone-235920

    MIL OSI – Global Reports –

  • MIL-OSI Global: $Trump and $Melania crypto tokens illustrate the risks posed by trendy meme coins

    Source: The Conversation – Canada – By Anwar Sheluchin, PhD Candidate, Political Science, McMaster University

    An image on a Trump meme coin website. (GetTrumpMemes.com)

    Meme coins like the ones recently launched by United States President Donald Trump and his wife, Melania, are a hot trend in the cryptocurrency ecosystem. The rise of these digital tokens reflects the influence of internet culture and community-driven hype on the market, distinguishing them from more traditional cryptocurrencies with well-defined uses or technical foundations.

    The value of a meme coin is often driven by social media hype, community engagement and celebrity endorsements. But political meme coins seem to offer a new use: the potential to turn civic engagement into speculative assets.

    As someone who researches financial governance and digital currencies, I want to delve into various cryptocurrency initiatives. This is not intended as financial advice.

    Politics meets crypto

    In recent years, the cryptocurrency landscape has witnessed the emergence of political meme coins, digital tokens centred around political figures or movements.

    During the 2024 U.S. presidential election, a number of political meme coins emerged, inspired by political figures like Trump, Joe Biden and Kamala Harris. These coins, often unaffiliated with the politicians they reference, typically have misspelled names (for example, Jeo Boden instead of Joe Biden).

    Political meme coins merge finance, technology and politics in an unprecedented way, potentially serving as a gauge of public sentiment and political trends.

    Trump’s official $Trump token is a prime example of how cryptocurrencies can transform political support into a financial product. However, the value of a meme coin is highly speculative, as it often relies on public perception and market demand, among other things, rather than any intrinsic worth.

    According to the terms and conditions on the site where the coins are sold, “Trump Memes are intended to function as an expression of support” and come with “absolutely no promise or guarantee that the Trump Memes will increase in value or maintain the same value as the amount you paid.”

    This disclaimer highlights the speculative nature of such tokens while also raising ethical concerns about the potential to exploit political supporters for financial gain.

    MAGA credit card

    Trump’s meme coin isn’t his first venture into crypto. Previously, he released a series of digital trading cards (NFTs) that enabled cardholders to have dinner with the president.
    Third parties are building on the hype around Trump and his brand, releasing products like the limited-edition MAGA Card.

    Described as “a collector’s item and the ultimate way to spend your $TRUMP tokens,” the credit card claims to integrate Trump’s meme coin with everyday financial transactions in a bid to appeal to supporters of the president’s MAGA movement.

    However, The American Patriot’s Card — the company behind the credit card — does not appear to have any affiliation with Trump. Unlike the $Trump token, which clearly discloses its connection to Trump, the MAGA Card lacks such transparency, illustrating how the door has been opened to misrepresentation and opportunistic marketing schemes that exploit political supporters.

    Regulatory environment

    The cryptocurrency industry spent millions during the 2024 U.S. election backing crypto-friendly candidates and selling the story that crypto voters are an important voting bloc.

    This investment aimed to shape political discourse, leading presidential candidates to make promises and propose policies that aligned with the interests of the cryptocurrency industry.

    While Trump has signalled his intention to provide clear regulatory guidelines for the cryptocurrency industry, the launch of his meme coin — coupled with low public understanding of cryptoassets — could lead to financial losses from risky and speculative investments.

    Take for example, what are known as pump-and-dump schemes that have become relatively common in the cryptocurrency ecosystem. These schemes involve artificially inflating the price of an asset to sell it at a profit. After the asset is “dumped,” the price crashes, leaving investors with significant losses.

    Without appropriate guardrails in place, the need to protect investors becomes increasingly urgent.

    Relevance to Canada

    The Canadian government has expressed some concern over the role of cryptocurrency in politics. Compared to the U.S., Canada has strict campaign financing rules aimed at preventing the undue influence of money in politics and ensuring a fair and transparent democratic process.

    This means that the cryptocurrency industry likely won’t be able to influence Canadian elections in the same way they might have south of the border. Canada’s existing regulatory framework has already led to several cryptocurrency exchanges leaving the country.

    Currently, political entities in Canada can only accept cryptocurrency contributions if Elections Canada can verify the public wallet addresses and transaction amounts involved.

    However, Bill C-65 — the Electoral Participation Act — proposes regulatory requirements related to contributions that are “difficult to trace.” Specifically, political parties and candidates would be prohibited from accepting contributions in the form of “a cryptoasset, money order or prepaid payment method.” The recent prorogation of Parliament has shelved the amendments proposed in C-65, but these concerns remain relevant for future legislation.

    Risky convergence

    Discussions in the House of Commons on Bill C-65, particularly regarding cryptoasset donations, emphasize the need for a ban to prevent foreign entities from influencing Canadian elections.

    This was likely a response to concerns about foreign entities financially supporting the so-called Freedom Convoy through cryptocurrency donations, despite CSIS stating that the money did not appear to be coming from foreign states, organizations or citizens.

    The rise of political meme coins demonstrates how politics, finance and technology are merging in new and sometimes risky ways. While these coins may seem like a joke or a new way to engage with politics, the absence of proper regulations could leave political supporters vulnerable to exploitation for financial gain.

    Anwar Sheluchin receives funding from the Social Sciences and Humanities Research Council of Canada.

    – ref. $Trump and $Melania crypto tokens illustrate the risks posed by trendy meme coins – https://theconversation.com/trump-and-melania-crypto-tokens-illustrate-the-risks-posed-by-trendy-meme-coins-247781

    MIL OSI – Global Reports –

  • MIL-OSI Global: Canada and Greenland aren’t likely to join the US anytime soon – but ‘GrAmeriCa’ is a revealing thought experiment

    Source: The Conversation – USA – By Peter A. Coclanis, Professor of History and Director of the Global Research Institute, University of North Carolina at Chapel Hill

    For some time now, pundits have been debating whether to take Donald Trump “seriously” or “literally,” as the clever binary coined by journalist Salena Zito in 2016 has it.

    This choice comes to mind when I think about the 47th president’s frequent comments recently about incorporating Greenland and Canada into the United States. A few cases in point: Before delivering an inaugural address in which he vaguely but forcefully expressed a desire for the U.S. to expand its territory, Trump raised the issue on a confrontational phone call with the prime minister of Denmark, which handles Greenland’s international affairs. More recently, he spoke of Canada becoming a U.S. state to reporters on Air Force One.

    It’s hard to imagine a plausible scenario in which either, let alone both, joins the United States. The governments of Canada and Greenland alike have made it clear that they’re not for sale.

    But as an economic historian, I believe that thought experiments can be a useful way of understanding truths about the world. And one such truth is that Greenland and Canada play a key role in the global economy. If the U.S. were to absorb either or both, it would be a strategic, economic and political game changer.

    So, for a moment, let’s take Trump both seriously and literally. Below, I’ve laid out some very rough measures of how a reconstituted megastate including the U.S., Canada or Greenland would look in comparison to other leading countries and blocs.

    Bigger, but not more crowded

    At first glance, the most obvious thing to note about the new country would be its physical size. Today the U.S. is the third-largest nation-state in terms of area – about 57.5% of the size of Russia, by far the world’s largest country.

    By incorporating Canada, the second-largest country in the world in terms of area, the U.S., so reconstituted, would be 14% larger than Russia. If both Canada and Greenland became part of the reconstituted U.S., the country would be 22% larger than Russia.

    How about China? Today, China is slightly smaller than the U.S. in area, but China would be less than half the size of a combined U.S. and Canada, and only about 44% of the size of the U.S.-Canada-Greenland. And the European Union? It would be less than 20% of the size of a U.S.-Canada-Greenland combo.

    Incorporating Canada and Greenland into the U.S would have less of an impact in demographic terms, adding just under 40 million people to the current U.S. total of 342 million.

    Similarly, if the U.S. absorbed Canada and Greenland — two countries that are wealthy, but not nearly as wealthy as the U.S. — it wouldn’t have much of an impact on gross domestic product per capita. Why not? Because the U.S. would comprise about 90% of the total population of the new megastate. Given the figures for GDP per capita (PPP, international dollars) in Canada and Greenland and weighting for population, GDP per capita in the megastate would be about $79,000.

    A strategic shift

    The biggest effects of absorbing either country into the U.S. would come in the geopolitical, strategic and resource realms. Here, the changes would be seismic. First, by incorporating both countries into the U.S., the new entity would not only consolidate its already considerable power in the Western Hemisphere, but it would also establish a much more formidable position in the Arctic region. This is increasingly important as sea lanes are opening up with climate change.

    By adding territory, the U.S. could potentially enhance its strategic and defense posture, forcing its principal adversaries, Russia and China, to pursue more cautious tacks. These geopolitical and strategic effects would be magnified by the bounty of natural resources in the new megastate.

    Consider that the U.S. is already the largest oil-producing country in the world – producing over 13.3 million barrels a day in 2023 – and Canada is No. 4, with 5 million. Together, the two countries produced over 18 million barrels per day in 2023, while Russia produced about 10.3 million, Saudi Arabia about 9 million, and China 4.2 million. In other words, the U.S. and Canada together produce 8 million barrels of oil more than Russia does each day – a staggering differential.

    The U.S. is also by far the largest producer of natural gas in the world, with Russia a distant second. Incorporating Canada, currently the fifth-largest producer, would add considerably to the U.S. lead.

    Nor does the resource bounty begin and end with oil and natural gas. Greenland is rich in minerals of all types, particularly the rare earth elements in such demand for batteries, electronics and the like.

    And perhaps most important of all is the impact of integration regarding freshwater resources. Integrating the U.S. and Canada would bring that new entity into a virtual tie with Brazil as the leading repository of freshwater resources in the world. Canada and the U.S. are currently Nos. 3 and 4, respectively, in the world in freshwater resources; together, their freshwater stock far surpasses Russia, which is currently No. 2.

    And this doesn’t factor in Greenland, with its massive – if declining – freshwater ice shield. In any case, given the increasing demand for water around the world, control over freshwater resources will prove more and more important for the overall security posture of the U.S. going forward.

    So what do we make of this little exercise? One thing seems clear: “GrAmeriCa” would be amazingly rich in resources, as the president likely knows well. But should we take Trump literally or seriously – or both – on this issue? It may be a case of “Too soon to tell,” to invoke Zhou Enlai’s famous line about one or another revolutionary upheaval in France. But the world will know soon enough.

    Peter A. Coclanis 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. Canada and Greenland aren’t likely to join the US anytime soon – but ‘GrAmeriCa’ is a revealing thought experiment – https://theconversation.com/canada-and-greenland-arent-likely-to-join-the-us-anytime-soon-but-gramerica-is-a-revealing-thought-experiment-248214

    MIL OSI – Global Reports –

  • MIL-OSI Global: Disaster evacuations can take much longer than people expect − computer simulations could help save lives and avoid chaos

    Source: The Conversation – USA – By Ashley Bosa, Postdoctoral Researcher, Hazards and Climate Resilience Institute, Boise State University

    Wildfire smoke rises beyond homes near Castaic Lake as another California wildfire spread on Jan. 22, 2025. AP Photo/Marcio Jose Sanchez

    When a wildfire notification goes off on your mobile phone, it can trigger all kinds of emotions and confusion.

    You might glance outside and see no smoke. Across the street, your neighbors have mixed reactions: One is leisurely walking their dog, another is calmly packing a small bag, while a third appears to be preparing for an extended vacation.

    The notification advises you to grab your “go bag,” but then panic can set in as you realize you don’t have one ready. So, you scour the local emergency management website for guidance and discover how much you’ve overlooked: important documents such as birth certificates, an extra flashlight, your children’s medications, a phone charger.

    Before you can gather your thoughts, a second notification arrives – this time telling you to evacuate.

    Packing the car, wrangling children or a skittish cat, figuring out where to go – it can feel frenzied in the face of danger. As you pull out, you join a traffic jam on your street, with a black smoke plume rising nearby and neighbors still loading their cars.

    This chaos highlights a worst-case scenario for wildfire evacuations – one that can cause delays, heighten risks for evacuees and complicate access for emergency responders. It’s why researchers like me who study natural hazards are developing ways to help communities recognize where residents may need the most help and avoid evacuation bottlenecks in the face of future disasters.

    The importance of being prepared

    Confusion is common in the face of disasters, and it underscores the need for communities and individuals to be prepared.

    Delays in evacuating, or the inability to evacuate safely, can have catastrophic consequences, not only for those trying to flee but also for the first responders and emergency managers working to manage the crisis. These delays often stem from a lack of preparedness or uncertainty about when and how to act.

    A study of survivors of an Australian wildfire that killed 172 people in the state of Victoria in 2009 found that two-thirds of survivors reported that they had carried out an existing disaster plan, while researchers found the majority of those who died either didn’t follow a disaster plan or couldn’t. Forecasters had warned that high temperatures were coming with very low humidity, and public alerts had gone out about the high fire risk.

    Residents had little time to evacuate as the Eaton Fire spread into Altadena, Calif., on Jan. 7, 2025. Source: NBC.

    How people perceive risks and the environmental and social cues around them – such as how much smoke they see, their neighbors’ choices or the wording of the notification – will directly affect the speed of their response.

    Past experience with a disaster evacuation also has an impact. Rapid population growth in recent years in the wildland-urban interface – areas where human development meets wildfire-prone areas – has meant that more people with little or no experience with wildfires are living in fire-risk areas. Wildland areas also tend to have fewer evacuation routes, making mass evacuations more difficult and time-consuming.

    Adding to the complexity is the fact that large wildfires are occurring in regions not historically prone to such events and during times of the year traditionally considered outside of wildfire season. This shift has left communities and emergency response teams grappling with unprecedented challenges, particularly when it comes to evacuations.

    Computer models can help spot risks

    To address these challenges, researchers are developing systems to help communities model how their residents are likely to respond in the event of a disaster.

    The results can help emergency crews understand where bottlenecks are likely to occur along evacuation routes, depending on the timing of the notice and the movement of the fire. They can also help fire managers understand where neighborhoods may need to be notified faster or need more help evacuating.

    Firefighters inspect burned out cars along a road in Paradise, Calif., after a deadly fire swept through the wooded area in November 2018. Some people abandoned their cars when they became trapped in traffic with few ways out.
    AP Photo/John Locher

    My team at the Hazard and Climate Resilience Institute at Boise State University is working on one of these projects. We have been surveying communities across Idaho and Oregon to assess how people living in the wildland-urban interface areas perceive wildfire risks and prepare for evacuations.

    Using those surveys, we can capture household-level decision data, such as which evacuation routes these residents would take, how many cars they plan to drive and where they would evacuate to.

    We can also gauge how prepared residents would be to evacuate, or whether they would likely stay and try to defend their home instead.

    Evacuating nursing homes takes time and special resources, including evacuation sites that can meet people’s health needs. When the Eaton Fire swept into Altadena, Calif., on Jan. 7, 2025, a senior care facility had little time to get its residents safely away.
    AP Photo/Ethan Swope

    With that data, we can simulate how long it will take emergency response teams to evacuate an entire community safely. The models could also show where difficulties with evacuations might be likely to arise and help residents understand how they can adjust their evacuation plans for a safer escape for everyone.

    Bridging the gap between awareness and action

    One of the key goals of this research is to bridge the gap between awareness and action.

    While many residents in wildfire-prone areas understand the risks, translating that knowledge into concrete preparations remains a challenge. The concept of a “go bag,” for example, is widely promoted but often poorly understood. Essential items such as medications, important documents and pet supplies are frequently overlooked until it’s too late.

    Clear and timely communication during wildfire crises is also essential. Evacuation warning messages such as “Ready, Set, Go!” are designed to prompt specific actions, but their effectiveness depends on residents understanding and trusting the system. Delayed responses or mixed signals can create confusion.

    As wildfire risk rises for many communities, preparedness is no longer optional – it’s a necessity. Emergency notifications vary by state and county, so check your local emergency management office to understand what to expect and sign up for alerts. Being prepared can help communities limit some of the most devastating impacts of wildfires.

    Ashley Bosa receives funding from the National Science Foundation Grant No. 2230595 for the project titled “Collaborative Research: Household Response to Wildfire ? Integrating Behavioral Science and Evacuation Modeling to Improve Community Wildfire Resilience.”

    – ref. Disaster evacuations can take much longer than people expect − computer simulations could help save lives and avoid chaos – https://theconversation.com/disaster-evacuations-can-take-much-longer-than-people-expect-computer-simulations-could-help-save-lives-and-avoid-chaos-247668

    MIL OSI – Global Reports –

  • MIL-OSI Video: UK The situation in Syria – Foreign Affairs Committee Committee

    Source: United Kingdom UK Parliament (video statements)

    During the first panel, the Committee will hear evidence from Lina Khatib, Chatham House MENA expert and fellow and Simon Collis, the former UK Ambassador to Syria. The panel will examine the factors that led to the fall of Assad and will also assess the stability of the current regime, led by Islamic militant group Hayat Tahrir al-Sham (HTS). Questions are likely to cover whether HTS has truly departed from its jihadist and fundamentalist origins. Members are likely to ask about the role of outside powers in the fall of the Assad regime, including Turkey, Russia, the US, Israel and Iran.

    Richard Barrett, former Director of Counter-terrorism at MI6 and former head of the UN al-Qaeda/Taliban Monitoring Team, will give evidence in the second panel. During this panel, the Committee will focus on the security situation in northeast Syria, the stability of detention camps and prisons housing Islamic State foreign fighters, and the likelihood of the Islamic State exploiting the new situation in Syria.

    https://www.youtube.com/watch?v=P1gBnTnTWQg

    MIL OSI Video –

  • MIL-OSI United Nations: Deputy Secretary-General’s remarks at the Mission 300 Africa Energy Summit: “Introduction to the Panel on “Policies and reforms for transforming African energy” [as prepared for delivery]

    Source: United Nations secretary general

    Your Excellency Mr. Doto Biteko, Deputy Prime Minister and Minister for Energy of the United Republic of Tanzani], Excellencies, Ladies and Gentlemen,

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

    Mission 300’s has undertaken an enormous task: to help close the energy access gap and unlock sustainable development across the continent by delivering electricity to 300 million Africans by 2030.

    As we have heard, we face a stark reality: 685 million people across the continent still lack access to electricity, with the gap widening as population growth outpaces new electricity connections.

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

    And critical minerals mined in Africa are powering the renewables revolution around the world.

    Despite this abundance, and record global investments in renewable energies worldwide, Africa continues to be left behind and many Africans continue to lack access to clean, affordable energy. 

    This injustice must be urgently resolved.

    Access to electricity is an essential development requirement, one that can also be the multiplier for acceleration in building a sustainable future for all

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

    We have heard our distinguished speakers discuss why companies and governments should get involved.  

    The business case is clear: the falling costs of renewables and storage offer a great opportunity to deliver access to energy, energy security and sovereignty, and climate resilience.  

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

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

    First, fostering policy coherence.

    We are 5 years away from the target of our SDGs. And we are not on track.

    Policy makers and the international institutions need to strive to ensure sector wide plans are coherent and aligned with the achievement of the SDGs due in 2030, while investors need robust regulatory laws in place to ensure business can operate aligned with them.

    At this Summit, Mission 300 target countries are presenting their first national energy strategies for achieving universal energy access. These strategies need to be part of a broader plan, one that while achieving universal energy access need to be aligned with the new economy-wide national climate action plans – or NDCs –   consistent with 1.5 degrees, well before COP 30 in November.

    NDCs represent a unique opportunity for all countries to align their new climate plans and energy strategies, together with addressing adaptation needs.

    NDCs must coordinate the transition from fossil fuels with scaling of renewables and grid modernization and expansion, ensuring energy security and affordability.

    And they must be anchored in justice – providing support for affected workers and communities.

    If done right, climate plans align with national development priorities and double as investment plans – becoming blueprints for a more sustainable and prosperous future.

    Excellencies,

    The Secretary-General’s panel on Critical Energy Transition Minerals offers important Principles and Actionable Recommendations to ensure this new era does not repeat historical patterns of exploitation.

    SE4ALL, UN Resident Coordinators and Country Teams will continue to support country level policy reforms, integrate stakeholder innovations, build institutional capacities, and boost infrastructure investments across the entire clean energy supply chain. 

    Second, mobilizing finance and support.

    While private sector investments and innovation are important, public financing, remains vital – especially in modernizing grid infrastructure to expand access and integrate renewables.

    Blending concessional public funds with commercial funds can help multiply renewable energy investments in developing countries.

    We must work to strengthen the health of Africa’s public finances, and tackle unsustainable debt burdens that are crowding out essential public investments.

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

    Third, enhancing transparent international cooperation.  

    International investments and cross-border partnerships hold the key to delivering electricity projects at a massive scale.

    Institutions must be strengthened to operate in complex regulatory environments, with multiple actors across jurisdictions.

    Public private partnerships need to be subject to stable and transparent public procurement rules throughout the whole project cycle, rules that prioritize long term sustainability and allow for mutually beneficial contractual relationships.

    Transparency and accountability should be a hallmark of Mission 300, and set a new standard for cooperation across the continent.

    Excellencies,

    As we start the 5-year countdown to delivering on the Sustainable Development Goals, and mark the tenth-year anniversary of the Paris Agreement, let us work together to illuminate the lives of millions, power the industries of tomorrow, and ensure that no one is left behind in the race to deliver universal clean energy, climate resilience, and economic prosperity.

    Thank you. 

    MIL OSI United Nations News –

  • MIL-OSI United Nations: DR Congo emergency: next 24 hours are critical, warn UN agencies

    Source: United Nations 4

    Peace and Security

    Latest reports from Goma in eastern Democratic Republic of the Congo (DRC) from UN teams on the ground indicate a fast-deteriorating situation on Tuesday amid an ongoing assault by M23 rebels on the provincial capital.

    Dead bodies lie in the streets, hospitals are overwhelmed and there has been an uptick in reports of sexual violence, rape and looting.

    “Roads are blocked, ports are closed and those crossing Lake Kivu risk their lives in makeshift boats,” said Shelley Thakral, spokesperson for the UN World Food Programme (WFP) – one of many UN agencies on the ground striving to provide assistance and protection wherever possible. “I spoke just moments ago to an activist In Goma and he told me, ‘We’re here, we’re hiding. We don’t know who will come to help us.’”

    The UN aid coordination office, OCHA, echoed the humanitarian community’s deep concerns about the spiralling violence across the resource-rich region that has uprooted some 300,000 people from camps around Goma in a matter of days.

    Aid targeted

    “Our colleagues in the DRC report heavy, small arms fire and mortar fire across the city and the presence of many dead bodies in the streets,” said OCHA spokesperson Jens Laerke. “We have reports of rapes committed by fighters, looting of property, including of a humanitarian warehouse and humanitarian and health facilities being hit.”

    The emergency has left hospitals in Goma reportedly overwhelmed by the influx of wounded people, electricity and water supplies “compromised” and internet services cut off on Monday. “Goma is still offline this morning,” Mr. Laerke told journalists in Geneva.

    The development came amid urgent calls from the international community including the Security Council in New York, where ambassadors on Tuesday demanded an immediate halt to the M23 rebel offensive and called for the group to withdraw from territories it has seized.

    The ambassadors reiterated their support for the UN peacekeeping force in the DR Congo, MONUSCO, and paid tribute to blue helmets who have lost their lives from South Africa, Malawi and Uruguay in recent days.

    The Council also condemned the presence of “external forces” in eastern DRC – amid reports Rwandan troops are heavily involved in the offensive – and called for all parties to adhere to the ceasefire and return to diplomatic talks.

    Years of crisis

    Before the latest escalation in violence in eastern DRC’s Kivus, some 5.1 million people had already been displaced by years of insecurity in the mineral-rich region and forced to live in overcrowded camps with little food and no security.

    UN agencies and partners continue to monitor the highly unstable situation which has forced WFP to temporarily pause food assistance activities in around Goma. “The airport and major access roads within the region have been cut off…Depending on the duration of violence, the supply of food into the city could be severely hampered,” said WFP’s Ms. Thakral.

    “This is a huge test for Congolese trapped by fighting in Goma and surrounding areas…the next 24 hours will be critical as people start to run low on supplies and will need to see what they can find to survive.”

    Disease fears

    The highly mobile nature of the emergency has prompted additional fears that existing diseases may spread quickly among uprooted populations, although preventive measures were taken before the latest escalation, the UN World Health Organization (WHO) said. 

    For the moment the immediate concern is to help victims of the violence.

    “There are currently hundreds of people in hospital, most admitted with gunshot and shrapnel wounds, with secondary infections becoming a health risk,” said Dr Adelheid Marschang, Emergency Response Coordinator for the DRC.

    She noted that before Goma airport closed on Saturday, WHO had sent critical medical supplies for trauma and emergency care, infection prevention, cholera and more.

    The UN agency’s response to the crisis has also included providing tents for hospitals to cope with the increasing number of injured. It has medical hubs in North and South Kivu, in the cities of Goma and Bukavu to support health care needs in eastern DRC.

    Last year the provinces of North and South Kivu reported high numbers of cholera, measles and malaria cases and deaths, Dr. Marschang said, warning of a “heightened risk for spillover of cholera” into neighbouring countries and provinces.

    The area was also the epicentre of an outbreak of a new strain of mpox, declared a public health emergency of international concern in August 2024. Dr. Marschang warned that the new wave of displacement will make it increasingly hard to track and treat the disease.

    Amid the lethal violence, hospitals and health workers themselves are in danger, the WHO official said, with “reports of health workers being shot at and patients including babies being caught in crossfire”.

    “Attacks on healthcare violate the rules of war. Healthcare must be protected at all times,” she insisted.

    Sexual violence alert

    WHO and other UN agencies and partners said that they are especially worried about the increasing risk to women and girls from violence, including rape.

    “Pregnant women are at risk, with very high maternal death rates, even before the violence escalated,” WHO said.

    “Sadly, hospitals and health workers are in danger.  We are hearing reports of health workers being shot at, and patients, including babies, being caught in the crossfire.  WHO reminds everyone that attacks on healthcare violate the rules of war.  Health care must be protected at all times.”

    Echoing those concerns, WFP’s Ms. Thakral reported that mobile teams and mobile clinics are at work amid reports that women had been raped multiple times while searching for firewood or after leaving the perimeter of their camp.

    Other reports indicated “an increase in rape along the pathways that some of the conflict partners are now taking into South Kivu,” she said, underscoring the agency’s efforts “to have some solutions to follow the populations as they move”.

    MIL OSI United Nations News –

  • MIL-OSI Security: U.S. Attorney Will Thompson to Announce Guilty Verdicts against Former West Virginia Correctional Officer

    Source: Office of United States Attorneys

    CHARLESTON, W.Va. – United States Attorney Will Thompson is holding a press conference today, Tuesday, January 28, 2025, at 10 a.m. following the federal jury trial of Chad Lester, the final former West Virginia correctional officer convicted in connection with a fatal March 1, 2022, assault of an inmate and subsequent cover-up.

    WHAT: Post-trial press conference

    WHEN: Tuesday, January 28, 2025, at 10 a.m.

    WHERE: Robert C. Byrd U.S. Courthouse, Charleston, Fourth Floor, Suite 4000

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.

    ###

     

     

    MIL Security OSI –

  • MIL-OSI: Maris-Tech Announces First Customer Conference: Edge of Tomorrow – Video & AI at the Frontier of Defense Innovation

    Source: GlobeNewswire (MIL-OSI)

    Join industry leaders and innovators on February 27, 2025 for a day of industry insights and networking opportunities

    Rehovot, Israel, Jan. 28, 2025 (GLOBE NEWSWIRE) — Maris-Tech Ltd. (Nasdaq: MTEK, MTEKW) (“Maris-Tech” or the “Company”), a global leader in video and artificial intelligence (“AI”) based edge computing technology, is thrilled to announce its first annual customer conference, Edge of Tomorrow – Video & AI at the Frontier of Defense Innovation. This exclusive event will place on February 27, 2025, in Rishon LeZion, Israel, and will gather industry professionals, thought leaders and collaborators to explore cutting-edge developments in edge computing and its central role in defense operations.

    Attendees will gain valuable insights into the future of video and AI acceleration, with a sharp focus on how this innovation is reshaping defense operations, enabling faster decision-making and independent functionality in challenging environments.

    The conference agenda features keynote presentations by renowned guest speakers, in-depth technical sessions, and live product demonstrations during session breaks. Attendees will also have the chance to network with peers, engage with Maris-Tech’s expert team, and gain hands-on experience with the Company’s innovative solutions.

    “We are very excited to present our first customer conference,” said Israel Bar, Chief Executive Officer of Maris-Tech. “It’s an honor to host some of the most influential guest speakers in our field and to welcome our valued customers and partners. This event will represent a unique opportunity to foster collaboration and share knowledge about the cutting-edge technologies driving the future of defense innovation.”

    For more information, to view the agenda, and to register, visit the event’s official webpage: https://maris-tech.forms-wizard.co/users/new.

    About Maris-Tech Ltd.

    Maris-Tech is a global leader in video and AI-based edge computing technology, pioneering intelligent video transmission solutions that conquer complex encoding-decoding challenges. Our miniature, lightweight, and low-power products deliver high-performance capabilities including raw data processing, seamless transfer, advanced image processing, and AI-driven analytics. Founded by Israel technology sector veterans, Maris-Tech serves leading manufacturers worldwide in defense, aerospace, Intelligence gathering, homeland security (HLS), and communication industries worldwide. We’re pushing the boundaries of video transmission and edge computing, driving innovation in mission-critical applications across commercial and defense sectors.

    For more information, visit https://www.maris-tech.com/

    Forward-Looking Statement Disclaimer

    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, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect”,” “may”, “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, the Company is  using forward-looking statements when it is discussing the conference and the Company’s expectation for the benefits of the conference and anticipated opportunities to foster collaboration and share knowledge about the cutting-edge technologies driving the future of defense innovation; and the benefits and advantages of video and AI acceleration. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our products and services, including in the United States; the acceptance of our products and services by customers; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other security and telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; our ability to comply with applicable regulations; and the other risks and uncertainties described in the Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 21, 2024, and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

    Investor Relations:

    Nir Bussy, CFO
    Tel: +972-72-2424022
    Nir@maris-tech.com

    The MIL Network –

  • MIL-OSI: First Financial Northwest, Inc. Reports Net Income of $1.2 Million or $0.13 per Diluted Share for the Fourth Quarter and $1.1 Million or $0.12 per Diluted Share for the Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    RENTON, Wash., Jan. 28, 2025 (GLOBE NEWSWIRE) — First Financial Northwest, Inc. (the “Company”) (NASDAQ GS: FFNW), the holding company for First Financial Northwest Bank (the “Bank”), today reported net income for the quarter ended December 31, 2024, of $1.2 million, or $0.13 per diluted share, compared to a net loss of $608,000, or $(0.07) per diluted share, for the quarter ended September 30, 2024, and net income of $1.2 million, or $0.13 per diluted share, for the quarter ended December 31, 2023. For the twelve months ended December 31, 2024, the Company reported net income of $1.1 million, or $0.12 per diluted share, compared to net income of $6.3 million, or $0.69 per diluted share, for the year ended December 31, 2023.

    The improved performance in the current quarter compared to the quarter ended September 30, 2024, was due primarily to a $1.3 million recapture of provision for credit losses. This compares to a provision for credit losses of $1.6 million in the prior quarter that mainly related to two participation loans to a single borrowing entity totaling approximately $6.0 million, where we were not the lead lender. During the quarter ended December 31, 2024, one of the two loans was paid in full and the borrower paid down the balance on the other loan using proceeds from the sale of another property. Subsequently, we received an updated appraisal of the property securing the remaining loan that confirmed a value sufficient to support the recapture of the previously allocated specific reserve for this loan.

    “I am pleased to report that our net loans receivable increased $14.0 million in the quarter as our lending teams continue to focus on growing our loan portfolio. In addition, our credit quality remained strong, with only $842,000 in nonaccrual loans, representing 0.07% of our $1.16 billion total loan portfolio,” stated Joseph W. Kiley III, President and CEO.

    “We continue to prepare for the closing of the sale of the Bank to Global Federal Credit Union (“Global”), as we await the final required approval from Global’s primary regulator, the National Credit Union Administration, before we can proceed towards closing the transaction,” concluded Kiley.

    Highlights for the quarter and year ended December 31, 2024:

    • Net loans receivable totaled $1.14 billion at December 31, 2024, compared to $1.13 billion at September 30, 2024, and $1.18 billion at December 31, 2023.
    • Book value per common share was $17.50 at December 31, 2024, compared to $17.39 at September 30, 2024, and $17.61 at December 31, 2023.
    • The Bank’s Tier 1 leverage and total capital ratios were 11.2% and 16.7% at December 31, 2024, compared to 10.9% and 16.7% at September 30, 2024, and 10.2% and 16.2% at December 31, 2023, respectively.
    • Credit quality remained strong with nonaccrual loans totaling $842,000, or 0.07% of total loans at December 31, 2024.
    • A $1.3 million recapture of provision for credit losses was recorded in the current quarter, compared to a $1.6 million and no provision for credit losses recorded during the prior quarter and the same quarter a year ago, respectively. We recorded a $50,000 recapture of provision for credit losses for the year ended December 31, 2024, compared to a $208,000 recapture of provision for credit losses for the year ended December 31, 2023.

    Deposits decreased $36.0 million to $1.13 billion at December 31, 2024, compared to $1.17 billion at September 30, 2024, and decreased $62.7 million compared to $1.19 billion at December 31, 2023. The decrease in deposits at December 31, 2024, compared to September 30, 2024, was due primarily to a $19.7 million decrease in noninterest-bearing demand deposits and a $15.5 million decrease in money market deposits. The decrease in deposits at December 31, 2024, from December 31, 2023, reflects declines in all deposit categories except for retail certificates of deposit which increased $91.8 million.

    Federal Home Loan Bank (“FHLB”) advances totaled $110.0 million at December 31, 2024, compared to $100.0 million at September 30, 2024, and $125.0 million at December 31, 2023. Of the total FHLB advances at December 31, 2024, $100.0 million were tied to cash flow hedge agreements under which the Bank pays a fixed rate and receives a variable rate in return to assist in the Bank’s interest rate risk management efforts. These cash flow hedge agreements had a weighted average remaining term of 27.8 months and a weighted average fixed interest rate of 1.93% as of December 31, 2024. The average cost of borrowings was 2.35% for the quarter ended December 31, 2024, compared to 3.19% for the quarter ended September 30, 2024, and 2.40% for the quarter ended December 31, 2023.

    The following table presents a breakdown of our total deposits (unaudited):

      Dec 31,
    2024    		   Sep 30,
    2024    		   Dec 31,
    2023    		   Three
    Month
    Change    		   One
    Year
    Change
    Deposits: (Dollars in thousands)
    Noninterest-bearing demand $ 80,772   $ 100,466   $ 100,899   $ (19,694 )   $ (20,127 )
    Interest-bearing demand   56,957     55,506     56,968     1,451       (11 )
    Savings   16,277     17,031     18,886     (754 )     (2,609 )
    Money market   480,520     495,978     529,411     (15,458 )     (48,891 )
    Certificates of deposit, retail   448,974     447,474     357,153     1,500       91,821  
    Brokered deposits   47,900     50,900     130,790     (3,000 )     (82,890 )
    Total deposits $ 1,131,400   $ 1,167,355   $ 1,194,107   $ (35,955 )   $ (62,707 )

    The following tables present an analysis of total deposits by branch office (unaudited):

    December 31, 2024
      Noninterest-
    bearing
    demand    		 Interest-
    bearing
    demand    		 Savings Money
    market    		 Certificates
    of deposit,
    retail    		 Brokered
    deposits    		 Total
      (Dollars in thousands)
    King County              
    Renton $ 26,242 $ 14,786 $ 10,197 $ 284,670 $ 309,858 $ – $ 645,753
    Landing   3,245   1,359   170   7,958   14,965   –   27,697
    Woodinville   1,738   3,168   620   8,834   11,511   –   25,871
    Bothell   2,792   930   408   1,421   6,762   –   12,313
    Crossroads   11,075   2,762   86   29,208   18,772   –   61,903
    Kent   3,766   4,873   40   18,673   8,471   –   35,823
    Kirkland   5,524   1,924   208   11,574   1,855   –   21,085
    Issaquah   1,244   238   13   2,298   6,562   –   10,355
    Total King County   55,626   30,040   11,742   364,636   378,756   –   840,800
    Snohomish County              
    Mill Creek   3,184   3,496   342   16,135   12,487   –   35,644
    Edmonds   7,316   8,542   338   16,482   13,003   –   45,681
    Clearview   4,909   5,653   1,494   17,934   13,778   –   43,768
    Lake Stevens   3,633   5,946   1,314   24,571   17,004   –   52,468
    Smokey Point   2,544   1,800   1,032   36,950   9,619   –   51,945
    Total Snohomish County   21,586   25,437   4,520   112,072   65,891   –   229,506
    Pierce County              
    University Place   1,837   54   1   2,113   2,122   –   6,127
    Gig Harbor   1,723   1,426   14   1,699   2,205   –   7,067
    Total Pierce County   3,560   1,480   15   3,812   4,327   –   13,194
                   
    Brokered deposits   –   –   –   –   –   47,900   47,900
                   
    Total deposits $ 80,772 $          56,957 $         16,277 $      480,520 $       448,974 $         47,900 $    1,131,400
    September 30, 2024
      Noninterest-
    bearing
    demand    		 Interest-
    bearing
    demand    		 Savings Money
    market    		 Certificates
    of deposit,
    retail    		 Brokered
    deposits    		 Total
      (Dollars in thousands)
    King County               
    Renton $ 29,388 $ 14,153 $ 10,654 $ 305,836 $ 315,721 $ – $ 675,752
    Landing   3,442   1,660   237   8,348   12,733   –   26,420
    Woodinville   1,968   2,234   959   8,852   11,522   –   25,535
    Bothell   2,965   1,151   401   1,536   5,918   –   11,971
    Crossroads   14,770   2,039   107   31,665   18,136   –   66,717
    Kent   5,417   10,502   44   16,053   8,562   –   40,578
    Kirkland   10,967   1,890   206   11,243   2,240   –   26,546
    Issaquah   1,186   294   18   2,547   6,580   –   10,625
    Total King County   70,103   33,923   12,626   386,080   381,412   –   884,144
    Snohomish County              
    Mill Creek   3,990   2,171   384   14,628   10,312   –   31,485
    Edmonds   9,254   6,831   330   18,549   13,281   –   48,245
    Clearview   5,587   5,242   1,462   21,206   12,251   –   45,748
    Lake Stevens   3,970   4,282   1,244   23,257   15,571   –   48,324
    Smokey Point   2,994   1,664   969   29,353   11,387   –   46,367
    Total Snohomish County   25,795   20,190   4,389   106,993   62,802   –   220,169
    Pierce County              
    University Place   2,940   53   4   1,848   1,458   –   6,303
    Gig Harbor   1,628   1,340   12   1,057   1,802   –   5,839
    Total Pierce County   4,568   1,393   16   2,905   3,260   –   12,142
                   
    Brokered deposits   –   –   –   –   –   50,900   50,900
                   
    Total deposits $ 100,466 $ 55,506 $ 17,031 $ 495,978 $ 447,474 $ 50,900 $ 1,167,355
     

    Net loans receivable totaled $1.14 billion at December 31, 2024, compared to $1.13 billion at September 30, 2024, and $1.18 billion at December 31, 2023. The increase in the current quarter compared to the quarter ended September 30, 2024, was due to growth in non-residential commercial real estate, construction/land, consumer and one-to-four family residential loans, partially offset by declines in multifamily and business lending. The average balance of net loans receivable totaled $1.13 billion for both the quarters ended December 31, 2024, and September 30, 2024, compared to $1.17 billion for the quarter ended December 31, 2023. For the year ended December 31, 2024, the average balance of net loans receivable was $1.14 billion, compared to $1.17 billion for the year ended December 31, 2023.

    The allowance for credit losses (“ACL”) represented 1.30% of total loans receivable at December 31, 2024, compared to 1.42% of total loans receivable at September 30, 2024, and 1.28% at December 31, 2023. The change in the ACL at December 31, 2024, compared to September 30, 2024, related primarily to activity on the single lending relationship discussed above.

    Nonaccrual loans totaled $842,000 at December 31, 2024, compared to $853,000 at September 30, 2024, and $220,000 at December 31, 2023. There was no other real estate owned at December 31, 2024, September 30, 2024, or December 31, 2023.

    Net interest income totaled $8.4 million for the quarter ended December 31, 2024, compared to $8.5 million for the quarter ended September 30, 2024, and $9.3 million for the quarter ended December 31, 2023. The decrease in the current quarter compared to the quarter ended September 30, 2024, was primarily due to declines in interest from earning assets, partially offset by declines in interest expense. For the year ended December 31, 2024, net interest income totaled $34.8 million, compared to $40.5 million for the year ended December 31, 2023, as total interest expense increased by $5.0 million and total interest income declined by $800,000.

    Total interest income decreased $419,000 to $19.0 million for the quarter ended December 31, 2024, compared to $19.4 million for the quarter ended September 30, 2024, and decreased $1.3 million compared to $20.3 million for the quarter ended December 31, 2023. The decrease in total interest income during the current quarter compared to the prior quarter was primarily due to a $250,000 or 29.0% decline in interest income earned on interest-earning deposits held with banks. This decline resulted from a 54 basis point decrease in the average yield earned on these deposits, coupled with a $13.6 million reduction in their average balance. Additionally, interest income on loans, including fees, declined by $146,000 or 0.9%, primarily due to a $2.5 million decrease in the average balance of loans and, to a lesser extent, a four basis point decrease in the yield earned on loans. The decrease in total interest income during the current quarter compared to the comparable quarter in 2023 was primarily due to declines in interest income on loans, including fees, of $631,000, investments of $449,000, and interest-earning deposits with banks of $267,000, partially offset by an increase in dividends on FHLB stock of $56,000.

    Yield on loans, the largest component of our interest-earning assets, declined to 5.82% during the recent quarter, compared to 5.86% and 5.83% for the quarters ended September 30, 2024, and December 31, 2023, respectively. The yield on investment securities for the current quarter was 4.29%, down slightly from 4.30% last quarter and up from 4.11% a year ago.

    Total interest expense was $10.6 million for the quarter ended December 31, 2024, down from $11.0 million for both quarters ended September 30, 2024, and December 31, 2023. The decrease from the quarter ended September 30, 2024, was due to lower interest expense related to FHLB advances and other borrowings, which declined due to a decline in the average balance of FHLB advances and other borrowings, partially offset by higher interest expense on deposits driven by an increase in the average balance of interest-bearing deposits. The decrease from the quarter ended December 31, 2023, was due to lower interest expense on deposits and FHLB advances and other borrowings, primarily as a result of lower average balances of these liabilities.

    Net interest margin was 2.50% for the quarter ended December 31, 2024, compared to 2.46% for the quarter ended September 30, 2024, and 2.54% for the quarter ended December 31, 2023. The increase in the net interest margin for the quarter ended December 31, 2024, compared to the prior quarter was primarily due to a decline in the average balance of total interest-earning assets, as net interest income was relatively unchanged during the periods. The decrease in the net interest margin for the quarter ended December 31, 2024, compared to the same quarter a year ago was primarily due to a decline in net interest income, which was partially offset by a decline in the average balance of total interest-earning assets. The net interest margin for the month of December 2024 was 2.55%.

    Noninterest income for the quarter ended December 31, 2024, totaled $658,000, down from $677,000 for the quarter ended September 30, 2024, and up from $633,000 for the quarter ended December 31, 2023. The decrease compared to the quarter ended September 30, 2024, was primarily due to lower loan and deposit related fees and BOLI income, partially offset by an increase in wealth management revenue. Noninterest income remained nearly flat at $2.8 million for both the years ended December 31, 2024, and December 31, 2023, as increases in BOLI income, wealth management revenue and loan related fees in the current year were nearly entirely offset by decreases in deposit related fees and other noninterest income.

    Noninterest expense totaled $8.9 million for the quarter ended December 31, 2024, compared to $8.5 million for the quarter ended September 30, 2024, and $8.4 million for the quarter ended December 31, 2023. The increase from the quarter ended September 30, 2024, was primarily due to a $860,000 increase in salaries and employee benefits due to 2025 merit increases implemented in December 2024, as well as year-end accruals related to incentive compensation, partially offset by decreases in nearly all other categories, most notably professional fees and other general and administrative expenses. Incentive compensation increased due to the project that modified certain loans that would have otherwise been ineligible for Global Federal Credit Union to hold on their balance sheet. The increase compared to the quarter ended December 31, 2023, was primarily due to a $644,000 increase in salaries and employee benefits and an $87,000 increase in data processing expenses, partially offset by decreases across other expense categories. Noninterest expense totaled $36.7 million for the year ended December 31, 2024, compared to $35.7 million for the year ended December 31, 2023. The year-over-year increase was primarily due to an increase in professional fees, data processing and salaries and employee benefits, partially offset by lower marketing and other general and administrative expenses and regulatory assessments.

    First Financial Northwest, Inc. is the parent company of First Financial Northwest Bank; an FDIC insured Washington State-chartered commercial bank headquartered in Renton, Washington, serving the Puget Sound Region through 15 full-service banking offices. For additional information about us, please visit our website at ffnwb.com and click on the “Investor Relations” link at the bottom of the page.

    Forward-looking statements:

    When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events many of which are inherently uncertain and outside of our control. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about, among other things, our pending transaction with Global Federal Credit Union (“Global”) whereby Global, pursuant to the definitive purchase and assumption agreement (the “P&A Agreement”), will acquire substantially all of the assets and assume substantially all of the liabilities of the Bank, expectations of the business environment in which we operate, projections of future performance or financial items, perceived opportunities in the market, potential future credit experience, and statements regarding our mission and vision. These forward-looking statements are based on current management expectations and may, therefore, involve risks and uncertainties. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements made by, or on behalf of, us and could negatively affect our operating and stock performance. Factors that could cause our actual results to differ materially from those described in the forward-looking statements, include, but are not limited to, the following: the occurrence of any event, change or other circumstances that could give rise to the right of one or all of the parties to terminate the P&A Agreement; delays in completing the P&A Agreement; the failure to obtain necessary regulatory approvals or to satisfy any of the other conditions to the Global transaction, including the P&A Agreement, on a timely basis or at all; delays or other circumstances arising from the dissolution of the Bank and the Company following completion of the P&A Agreement; diversion of management’s attention from ongoing business operations and opportunities during the pending Global transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of the Global transaction; adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a recession or slowed economic growth; changes in the interest rate environment, including increases or decreases in the Federal Reserve benchmark rate and duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan, and deposit products; legislative and regulatory changes; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; effects of critical accounting policies and judgments, including the use of estimates in determining the fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; the potential effects of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission – that are available on our website at www.ffnwb.com and on the SEC’s website at www.sec.gov.

    Any of the forward-looking statements that we make in this Press Release and in the other public statements are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
     Consolidated Balance Sheets
    (Dollars in thousands)
    (Unaudited)
    Assets Dec 31,
    2024    		   Sep 30,
    2024    		   Dec 31,
    2023    		   Three
    Month
    Change    		   One
    Year
    Change
                       
    Cash on hand and in banks $ 9,535     $ 8,423     $ 8,391     13.2 %   13.6 %
    Interest-earning deposits with banks   36,182       72,884       22,138     (50.4 )   63.4  
    Investments available-for-sale, at fair value   151,642       156,609       207,915     (3.2 )   (27.1 )
    Investments held-to-maturity, at amortized cost   2,468       2,462       2,456     0.2     0.5  
    Loans receivable, net of allowance of $15,066, $16,265 and $15,306, respectively   1,140,186       1,126,146       1,175,925     1.2     (3.0 )
    Federal Home Loan Bank (“FHLB”) stock, at cost   5,853       5,403       6,527     8.3     (10.3 )
    Accrued interest receivable   6,108       6,638       7,359     (8.0 )   (17.0 )
    Deferred tax assets, net   2,582       2,690       2,648     (4.0 )   (2.5 )
    Premises and equipment, net   18,166       18,584       19,667     (2.2 )   (7.6 )
    Bank owned life insurance (“BOLI”), net   38,950       38,661       37,653     0.7     3.4  
    Prepaid expenses and other assets   9,676       8,898       10,478     8.7     (7.7 )
    Right of use asset (“ROU”), net   2,357       2,473       2,617     (4.7 )   (9.9 )
    Goodwill   889       889       889     0.0     0.0  
    Core deposit intangible, net   295       326       419     (9.5 )   (29.6 )
    Total assets $ 1,424,889     $ 1,451,086     $ 1,505,082     (1.8 )   (5.3 )
                       
    Liabilities and Stockholders’ Equity                  
                       
    Deposits                  
    Noninterest-bearing deposits $ 80,772     $ 100,466     $ 100,899     (19.6 )   (19.9 )
    Interest-bearing deposits   1,050,628       1,066,889       1,093,208     (1.5 )   (3.9 )
    Total deposits   1,131,400       1,167,355       1,194,107     (3.1 )   (5.3 )
    FHLB advances   110,000       100,000       125,000     10.0     (12.0 )
    Advance payments from borrowers for taxes and insurance   2,873       5,211       2,952     (44.9 )   (2.7 )
    Lease liability, net   2,550       2,673       2,806     (4.6 )   (9.1 )
    Accrued interest payable   526       294       2,739     78.9     (80.8 )
    Other liabilities   15,985       15,340       15,818     4.2     1.1  
    Total liabilities   1,263,334       1,290,873       1,343,422     (2.1 )   (6.0 )
                       
    Commitments and contingencies                  
                       
    Stockholders’ Equity                  
    Preferred stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding   –       –       –     n/a     n/a  
    Common stock, $0.01 par value; authorized 90,000,000 shares; issued and outstanding 9,230,010 shares at December 31, 2024, 9,213,969 shares at September 30, 2024, and 9,179,510 shares at December 31, 2023   93       92       92     1.1     1.1  
    Additional paid-in capital   72,823       72,916       73,035     (0.1 )   (0.3 )
    Retained earnings   94,892       93,692       96,206     1.3     (1.4 )
    Accumulated other comprehensive loss, net of tax   (6,253 )     (6,487 )     (7,673 )   (3.6 )   (18.5 )
    Total stockholders’ equity   161,555       160,213       161,660     0.8     (0.1 )
    Total liabilities and stockholders’ equity $ 1,424,889     $ 1,451,086     $ 1,505,082     (1.8 )%   (5.3 )%
     
    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
     Consolidated Income Statements
    (Dollars in thousands, except per share data)
    (Unaudited)
      Quarter Ended        
      Dec 31,
    2024    		   Sep 30,
    2024    		   Dec 31,
    2023    		   Three
    Month
    Change    		   One
    Year
    Change
    Interest income                  
    Loans, including fees $ 16,512     $ 16,658     $ 17,143   (0.9 )%   (3.7 )%
    Investments   1,694       1,744       2,143   (2.9 )   (21.0 )
    Interest-earning deposits with banks   613       863       880   (29.0 )   (30.3 )
    Dividends on FHLB Stock   177       150       121   18.0     46.3  
    Total interest income   18,996       19,415       20,287   (2.2 )   (6.4 )
    Interest expense                  
    Deposits   9,956       9,748       10,281   2.1     (3.2 )
    FHLB advances and other borrowings   600       1,213       731   (50.5 )   (17.9 )
    Total interest expense   10,556       10,961       11,012   (3.7 )   (4.1 )
    Net interest income   8,440       8,454       9,275   (0.2 )   (9.0 )
    (Recapture of provision) provision for credit losses   (1,250 )     1,575       –   (179.4 )   n/a  
    Net interest income after (recapture of provision) provision for credit losses   9,690       6,879       9,275   40.9     4.5  
                       
    Noninterest income                  
    BOLI income   289       295       255   (2.0 )   13.3  
    Wealth management revenue   88       42       60   109.5     46.7  
    Deposit related fees   226       236       234   (4.2 )   (3.4 )
    Loan related fees   44       96       60   (54.2 )   (26.7 )
    Other   11       8       24   37.5     (54.2 )
    Total noninterest income   658       677       633   (2.8 )   3.9  
                       
    Noninterest expense                  
    Salaries and employee benefits   5,466       4,606       4,822   18.7     13.4  
    Occupancy and equipment   1,154       1,183       1,231   (2.5 )   (6.3 )
    Professional fees   377       585       431   (35.6 )   (12.5 )
    Data processing   805       838       718   (3.9 )   12.1  
    Regulatory assessments   160       165       196   (3.0 )   (18.4 )
    Insurance and bond premiums   114       113       113   0.9     0.9  
    Marketing   24       46       70   (47.8 )   (65.7 )
    Other general and administrative   834       952       858   (12.4 )   (2.8 )
    Total noninterest expense   8,934       8,488       8,439   5.3     5.9  
    Income before federal income tax provision (benefit)   1,414       (932 )     1,469   (251.7 )   (3.7 )
    Federal income tax provision (benefit)   214       (324 )     275   (166.0 )   (22.2 )
    Net income (loss) $ 1,200     $ (608 )   $ 1,194   (297.4 )%   0.5 %
                       
    Basic earnings (loss) per share $ 0.13     $ (0.07 )   $ 0.13        
    Diluted earnings (loss) per share $ 0.13     $ (0.07 )   $ 0.13        
    Weighted average number of common shares outstanding   9,220,593       9,190,146       9,151,892        
    Weighted average number of diluted shares outstanding   9,238,565       9,190,146       9,176,724        
                                 
    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
     Consolidated Income Statements
    (Dollars in thousands, except per share data)
    (Unaudited)
      Year Ended December 31,    
        2024       2023     One Year
    Change
    Interest income          
    Loans, including fees $ 66,941     $ 66,938     0.0 %
    Investments   7,388       8,474     (12.8 )
    Interest-earning deposits with banks   2,444       2,261     8.1  
    Dividends on FHLB Stock   597       485     23.1  
    Total interest income   77,370       78,158     (1.0 )
    Interest expense          
    Deposits   39,117       34,407     13.7  
    FHLB advances and other borrowings   3,490       3,208     8.8  
    Total interest expense   42,607       37,615     13.3  
    Net interest income   34,763       40,543     (14.3 )
    Recapture of provision for credit losses   (50 )     (208 )   (76.0 )
    Net interest income after recapture of provision for credit losses   34,813       40,751     (14.6 )
               
    Noninterest income          
    BOLI   1,245       1,081     15.2  
    Wealth management revenue   279       253     10.3  
    Deposit accounts related fees   923       956     (3.5 )
    Loan related fees   296       275     7.6  
    Other   53       208     (74.5 )
    Total noninterest income   2,796       2,773     0.8  
               
    Noninterest expense          
    Salaries and employee benefits   20,652       20,366     1.4  
    Occupancy and equipment   4,789       4,748     0.9  
    Professional fees   3,011       2,288     31.6  
    Data processing   3,285       2,857     15.0  
    Regulatory assessments   662       763     (13.2 )
    Insurance and bond premiums   477       468     1.9  
    Marketing   179       343     (47.8 )
    Other general and administrative   3,638       3,833     (5.1 )
    Total noninterest expense   36,693       35,666     2.9  
    Income before federal income tax (benefit) provision   916       7,858     (88.3 )
    Federal income tax (benefit) provision   (156 )     1,553     (110.0 )
    Net income $ 1,072     $ 6,305     (83.0 )%
               
    Basic earnings per share $ 0.12     $ 0.69      
    Diluted earnings per share $ 0.12     $ 0.69      
    Weighted average number of common shares outstanding   9,183,900       9,126,209      
    Weighted average number of diluted shares outstanding   9,238,016       9,152,617      
                       

    The following table presents a breakdown of the loan portfolio (unaudited):

      December 31, 2024 September 30, 2024 December 31, 2023
      Amount   Percent   Amount   Percent   Amount   Percent
      (Dollars in thousands)
    Commercial real estate:                      
    Residential:                      
    Multifamily $ 126,303     10.9 %   $ 132,811     11.6 %   $ 138,149     11.6 %
    Total multifamily residential   126,303     10.9       132,811     11.6       138,149     11.6  
                           
    Non-residential:                      
    Retail   110,787     9.6       118,840     10.4       124,172     10.4  
    Office   73,306     6.3       73,778     6.5       72,778     6.1  
    Hotel / motel   72,434     6.3       54,716     4.8       63,597     5.3  
    Storage   32,229     2.8       32,443     2.8       33,033     2.8  
    Mobile home park   22,701     2.0       22,443     2.0       21,701     1.8  
    Warehouse   23,363     2.0       18,743     1.6       19,218     1.6  
    Nursing Home   9,713     0.8       11,407     1.0       11,610     1.0  
    Other non-residential   29,865     2.5       30,719     2.7       31,750     2.6  
    Total non-residential   374,398     32.3       363,089     31.8       377,859     31.6  
                           
    Construction/land:                      
    One-to-four family residential   49,674     4.3       42,846     3.8       47,149     4.0  
    Multifamily   7,884     0.7       7,227     0.6       4,004     0.3  
    Land development   9,582     0.8       10,148     0.8       9,771     0.8  
    Total construction/land   67,140     5.8       60,221     5.2       60,924     5.1  
                           
    One-to-four family residential:                      
    Permanent owner occupied   284,650     24.7       279,744     24.5       284,471     23.9  
    Permanent non-owner occupied   217,420     18.8       221,127     19.4       228,752     19.2  
    Total one-to-four family residential   502,070     43.5       500,871     43.9       513,223     43.1  
                           
    Business                      
    Aircraft   –     0.0       –     0.0       1,945     0.1  
    Small Business Administration (“SBA”)   1,729     0.2       1,745     0.2       1,794     0.3  
    Paycheck Protection Plan (“PPP”)   159     0.0       238     0.0       473     0.0  
    Other business   10,247     0.9       12,416     1.1       24,869     2.1  
    Total business   12,135     1.1       14,399     1.3       29,081     2.5  
                           
    Consumer                      
    Classic, collectible and other auto   59,580     5.2       58,085     5.1       58,618     5.0  
    Other consumer   13,626     1.2       12,935     1.1       13,377     1.1  
    Total consumer   73,206     6.4       71,020     6.2       71,995     6.1  
    Total loans   1,155,252     100.0 %     1,142,411     100.0 %     1,191,231     100.0 %
    Less:                      
    ACL   15,066           16,265           15,306      
    Loans receivable, net $ 1,140,186         $ 1,126,146         $ 1,175,925      
                           
    Concentrations of credit: (1)                      
    Construction loans as % of total capital   40.5 %         36.8 %         38.3 %      
    Total non-owner occupied commercial
    real estate as % of total capital    		   300.8 %         296.2 %         316.8 %    

    (1) Concentrations of credit percentages are for First Financial Northwest Bank only using classifications in accordance with FDIC regulatory guidelines.

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
     Key Financial Measures
    (Unaudited)
      At or For the Quarter Ended
      Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
        2024       2024       2024       2024       2023  
      (Dollars in thousands, except per share data)
    Performance Ratios: (1)                  
    Return on assets   0.33 %     (0.17 )%     0.43 %     (0.29 )%     0.31 %
    Return on equity   2.96       (1.50 )     3.88       (2.67 )     2.97  
    Dividend payout ratio   0.00       0.00       76.47       (108.33 )     100.00  
    Equity-to-assets ratio   11.34       11.04       11.10       10.91       10.74  
    Tangible equity ratio (2)   11.26       10.97       11.02       10.83       10.66  
    Net interest margin   2.50       2.46       2.66       2.55       2.54  
    Average interest-earning assets to average interest-bearing liabilities   116.51       116.46       117.01       116.40       115.84  
    Efficiency ratio   98.20       92.96       82.35       116.97       85.17  
    Noninterest expense as a percent of average total assets   2.49       2.32       2.21       3.05       2.18  
    Book value per common share $ 17.50     $ 17.39     $ 17.51     $ 17.46     $ 17.61  
    Tangible book value per share (2)   17.37       17.26       17.37       17.32       17.47  
                       
    Capital Ratios: (3)                  
    Tier 1 leverage ratio   11.16 %     10.86 %     10.91 %     10.41 %     10.18 %
    Common equity tier 1 capital ratio   15.40       15.43       15.39       14.98       14.90  
    Tier 1 capital ratio   15.40       15.43       15.39       14.98       14.90  
    Total capital ratio   16.65       16.68       16.64       16.24       16.15  
                       
    Asset Quality Ratios: (4)                  
    Nonaccrual loans as a percent of total loans   0.07 %     0.07 %     0.41 %     0.02 %     0.02 %
    Nonaccrual loans as a percent of total assets   0.06       0.06       0.32       0.01       0.01  
    ACL as a percent of total loans   1.30       1.42       1.29       1.30       1.28  
    Net charge-offs to average loans receivable, net   (0.00 )     0.00       0.00       0.00       0.00  
                       
    Allowance for Credit Losses:                  
    ACL – loans                  
    Beginning balance $ 16,265     $ 14,796     $ 14,996     $ 15,306     $ 15,306  
    (Recapture of provision) provision for credit losses   (1,200 )     1,500       (200 )     (300 )     –  
    Charge-offs   –       (31 )     –       (10 )     –  
    Recoveries   1       –       –       –       –  
    Ending balance $ 15,066     $ 16,265     $ 14,796     $ 14,996     $ 15,306  
                       
    Allowance for unfunded commitments                  
    Beginning balance $ 639     $ 564     $ 564     $ 439     $ 439  
    (Recapture of provision) provision for credit losses   (50 )     75       –       125       –  
    Ending balance $ 589     $ 639     $ 564     $ 564     $ 439  
                       
    (Recapture of provision) provision for credit losses                  
    ACL – loans $ (1,200 )   $ 1,500     $ (200 )   $ (300 )   $ –  
    Allowance for unfunded commitments   (50 )     75       –       125       –  
    Total $ (1,250 )   $ 1,575     $ (200 )   $ (175 )   $ –  

    (1) Performance ratios are calculated on an annualized basis.
    (2) Non-GAAP financial measures. Refer to Non-GAAP Financial Measures at the end of this press release for a reconciliation to the nearest GAAP equivalents.
    (3) Capital ratios are for First Financial Northwest Bank only.
    (4) Loans are reported net of undisbursed funds.

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
     Key Financial Measures
    (Unaudited)
      At or For the Quarter Ended
      Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
        2024       2024       2024       2024       2023  
      (Dollars in thousands)
    Yields and Costs: (1)                  
    Yield on loans   5.82 %     5.86 %     5.93 %     5.88 %     5.83 %
    Yield on investments   4.29       4.30       4.38       4.11       4.11  
    Yield on interest-earning deposits   4.73       5.27       5.25       5.28       5.32  
    Yield on FHLB stock   12.87       7.73       8.63       7.79       7.29  
    Yield on interest-earning assets   5.63 %     5.66 %     5.73 %     5.62 %     5.56 %
                       
    Cost of interest-bearing deposits   3.77 %     3.80 %     3.71 %     3.69 %     3.62 %
    Cost of borrowings   2.35       3.19       2.64       2.65       2.40  
    Cost of interest-bearing liabilities   3.64 %     3.72 %     3.59 %     3.58 %     3.50 %
                       
    Cost of total deposits (2)   3.46 %     3.47 %     3.38 %     3.38 %     3.31 %
    Cost of funds (2)   3.37       3.44       3.30       3.31       3.23  
                       
    Average Balances:                  
    Loans $ 1,129,019     $ 1,131,473     $ 1,139,017     $ 1,160,156     $ 1,167,339  
    Investments   156,975       161,232       173,102       202,106       206,837  
    Interest-earning deposits   51,518       65,149       36,959       37,032       65,680  
    FHLB stock   5,471       7,719       6,714       6,554       6,584  
    Total interest-earning assets $ 1,342,983     $ 1,365,573     $ 1,355,792     $ 1,405,848     $ 1,446,440  
                       
    Interest-bearing deposits $ 1,051,201     $ 1,021,041     $ 1,029,608     $ 1,082,168     $ 1,127,690  
    Borrowings   101,522       151,478       129,126       125,604       120,978  
    Total interest-bearing liabilities   1,152,723       1,172,519       1,158,734       1,207,772       1,248,668  
    Noninterest-bearing deposits   93,331       96,003       101,196       99,173       102,869  
    Total deposits and borrowings $ 1,246,054     $ 1,268,522     $ 1,259,930     $ 1,306,945     $ 1,351,537  
                       
    Average assets $ 1,429,788     $ 1,453,431     $ 1,446,207     $ 1,495,753     $ 1,538,955  
    Average stockholders’ equity   161,093       161,569       161,057       161,823       159,659  

    (1) Yields and costs are annualized.
    (2) Includes noninterest-bearing deposits.
    (3) Includes total borrowings and deposits (including noninterest-bearing deposits).

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
     Key Financial Measures
    (Unaudited)
      At or For the Year Ended December 31,
        2024       2023       2022       2021       2020  
          (Dollars in thousands, except per share data)  
    Performance Ratios:                  
    Return on assets   0.07 %     0.41 %     0.91 %     0.86 %     0.63 %
    Return on equity   0.66       3.93       8.34       7.65       5.50  
    Dividend payout ratio   216.67       75.36       32.65       33.59       45.45  
    Equity-to-assets ratio   11.34       10.74       10.67       11.07       11.26  
    Tangible equity ratio (1)   11.26       10.66       10.58       10.97       11.15  
    Net interest margin   2.54       2.82       3.54       3.35       3.15  
    Average interest-earning assets to average interest-bearing liabilities   116.59       116.69       119.18       118.59       115.62  
    Efficiency ratio   97.69       82.34       69.04       68.32       72.39  
    Noninterest expense as a percent of average total assets   2.52       2.33       2.44       2.35       2.39  
    Book value per common share $ 17.50     $ 17.61     $ 17.57     $ 17.30     $ 16.05  
    Tangible book value per share (1)   17.37       17.47       17.41       17.13       15.88  
                       
    Capital Ratios: (2)                  
    Tier 1 leverage ratio   11.16 %     10.18 %     10.31 %     10.34 %     10.29 %
    Common equity tier 1 capital ratio   15.40       14.90       14.37       14.23       14.32  
    Tier 1 capital ratio   15.40       14.90       14.37       14.23       14.32  
    Total capital ratio   16.65       16.15       15.62       15.48       15.57  
                       
    Asset Quality Ratios: (3)                  
    Nonaccrual loans as a percent of total loans   0.07 %     0.02 %     0.02 %     0.00 %     0.19 %
    Nonaccrual loans as a percent of total assets   0.06       0.01       0.01       0.00       0.18  
    ACL as a percent of total loans   1.30       1.28       1.29       1.40       1.36  
    Net charge-offs (recoveries) to average loans receivable, net   0.00       0.00       0.00       (0.02 )     (0.00 )
                       
    ACL – loans                  
    Beginning balance $ 15,306     $ 15,227     $ 15,657     $ 15,174     $ 13,218  
    Beginning balance adjustment from adoption of Topic 326   –       500       –       –       –  
    (Recapture of provision) provision for credit losses   (200 )     (400 )     (400 )     300       1,900  
    Charge-offs   (41 )     (22 )     (37 )     –       (2 )
    Recoveries   1       1       7       183       58  
    Ending balance $ 15,066     $ 15,306     $ 15,227     $ 15,657     $ 15,174  
                       
    Allowance for unfunded commitments                  
    Beginning balance $ 439     $ 247     $ 281     $ 351     $ 428  
    Provision (recapture of provision) for credit losses   150       192       (34 )     (70 )     (77 )
    Ending balance $ 589     $ 439     $ 247     $ 281     $ 351  
                       
    (Recapture of provision) provision for credit losses                  
    ACL – loans $ (200 )   $ (400 )   $ (400 )   $ 300     $ 1,900  
    Allowance for unfunded commitments   150       192       (34 )     (70 )     (77 )
    Total $ (50 )   $ (208 )   $ (434 )   $ 230     $ 1,823  

    (1) Non-GAAP financial measures. Refer to Non-GAAP Financial Measures at the end of this press release for a reconciliation to the nearest GAAP equivalents.
    (2) Capital ratios are for First Financial Northwest Bank only.
    (3) Loans are reported net of undisbursed funds.

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
     Key Financial Measures
    (Unaudited)
      At or For the Year Ended December 31,
        2024       2023       2022       2021       2020  
      (Dollars in thousands)
    Yields and Costs:                  
    Yield on loans   5.87 %     5.71 %     4.69 %     4.57 %     4.69 %
    Yield on investments   4.26       3.97       2.77       1.83       2.39  
    Yield on interest-earning deposits   5.12       5.06       1.28       0.12       0.21  
    Yield on FHLB stock   9.03       7.07       5.08       5.29       4.85  
    Yield on interest-earning assets   5.66 %     5.44 %     4.33 %     4.01 %     4.36 %
                       
    Cost of deposits   3.74 %     3.12 %     0.87 %     0.71 %     1.42 %
    Cost of borrowings   2.75       2.52       1.70       1.39       1.31  
    Cost of interest-bearing liabilities   3.63 %     3.05 %     0.95 %     0.78 %     1.41 %
                       
    Cost of interest-bearing deposits   3.42 %     2.83 %     0.77 %     0.64 %     1.32 %
    Cost of funds   3.35       2.80       0.86       0.71       1.32  
                       
    Average Balances:                  
    Loans $ 1,139,864     $ 1,172,569     $ 1,128,835     $ 1,098,772     $ 1,120,889  
    Investments   173,276       213,261       203,165       176,110       133,584  
    Interest-earning deposits   47,723       44,684       30,176       60,482       25,108  
    FHLB stock   6,614       6,857       6,256       6,271       6,600  
    Total interest-earning assets $ 1,367,477     $ 1,437,371     $ 1,368,432     $ 1,341,635     $ 1,286,181  
                       
    Interest-bearing deposits $ 1,045,950     $ 1,104,510     $ 1,034,351     $ 1,015,852     $ 987,069  
    Borrowings   126,931       127,263       113,890       115,466       125,392  
    Total interest-bearing liabilities   1,172,881       1,231,773       1,148,241       1,131,318       1,112,461  
    Noninterest-bearing deposits   97,411       109,795       125,166       112,484       75,388  
    Total deposits and borrowings $ 1,270,292     $ 1,341,568     $ 1,273,407     $ 1,243,802     $ 1,187,849  
                       
    Average assets $ 1,456,215     $ 1,529,511     $ 1,455,739     $ 1,421,476     $ 1,361,604  
    Average stockholders’ equity   161,385       160,428       158,685       160,041       155,587  

    Non-GAAP Financial Measures

    In addition to financial results presented in accordance with generally accepted accounting principles (“GAAP”) utilized in the United States, this earnings release contains non-GAAP financial measures that include tangible equity, tangible assets, tangible book value per share, and the tangible equity-to-assets ratio. The Company believes that these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of goodwill and core deposit intangible, net and provides an alternative view of the Company’s performance over time and in comparison to the Company’s competitors. Non-GAAP financial measures have limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation and are not a substitute for other measures in this earnings release that are presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

    The following tables provide a reconciliation between the GAAP and non-GAAP measures:

      Quarter Ended
        Dec 31,
    2024    		       Sep 30,
    2024    		       Jun 30,
    2024    		       Mar 31,
    2024    		       Dec 31,
    2023    		  
      (Dollars in thousands, except per share data)
    Tangible equity to tangible assets and tangible book value per share:  
    Total stockholders’ equity (GAAP) $ 161,555     $ 160,213     $ 160,693     $ 160,183     $ 161,660  
    Less:                  
    Goodwill   889       889       889       889       889  
    Core deposit intangible, net   295       326       357       388       419  
    Tangible equity (Non-GAAP) $ 160,371     $ 158,998     $ 159,447     $ 158,906     $ 160,352  
                       
    Total assets (GAAP) $ 1,424,889     $ 1,451,086     $ 1,447,753     $ 1,468,350     $ 1,505,082  
    Less:                  
    Goodwill   889       889       889       889       889  
    Core deposit intangible, net   295       326       357       388       419  
    Tangible assets (Non-GAAP) $ 1,423,705     $ 1,449,871     $ 1,446,507     $ 1,467,073     $ 1,503,774  
                       
    Common shares outstanding at period end   9,230,010       9,213,969       9,179,825       9,174,425       9,179,510  
                       
    Equity-to-assets ratio (GAAP)   11.34 %     11.04 %     11.10 %     10.91 %     10.74 %
    Tangible equity-to-tangible assets ratio (Non-GAAP)   11.26       10.97       11.02       10.83       10.66  
    Book value per common share (GAAP) $ 17.50     $ 17.39     $ 17.51     $ 17.46     $ 17.61  
    Tangible book value per share (Non-GAAP)   17.37       17.26       17.37       17.32       17.47  
                                           
    Non-GAAP Financial Measures (continued)
     
      Year Ended December 31,
        2024       2023       2022       2021       2020  
      (Dollars in thousands, except per share data)
    Tangible equity to tangible assets and tangible book value per share:
    Total stockholders’ equity (GAAP) $ 161,555     $ 161,660     $ 160,360     $ 157,879     $ 156,302  
    Less:                  
    Goodwill   889       889       889       889       889  
    Core deposit intangible   295       419       548       684       824  
    Tangible equity (Non-GAAP) $ 160,371     $ 160,352     $ 158,923     $ 156,306     $ 154,589  
                       
    Total assets (GAAP)   1,424,889       1,505,082       1,502,916       1,426,329       1,387,669  
    Less:                  
    Goodwill   889       889       889       889       889  
        295       419       548       684       824  
    Tangible assets (Non-GAAP) $ 1,423,705     $ 1,503,774     $ 1,501,479     $ 1,424,756     $ 1,385,956  
                       
    Common shares outstanding at period end   9,230,010       9,179,510       9,127,595       9,125,759       9,736,875  
                       
    Equity-to-assets ratio (GAAP)   11.34 %     10.74 %     10.67 %     11.07 %     11.26 %
    Tangible equity ratio (Non-GAAP)   11.26       10.66       10.58       10.97       11.15  
    Book value per common share (GAAP) $ 17.50     $ 17.61     $ 17.57     $ 17.30     $ 16.05  
    Tangible book value per share (Non-GAAP)   17.37       17.47       17.41       17.13       15.88  

    For more information, contact:
    Joseph W. Kiley III, President and Chief Executive Officer
    Rich Jacobson, Executive Vice President and Chief Financial Officer
    (425) 255-4400

    The MIL Network –

  • MIL-OSI United Kingdom: Salford City Council approves plans to assess new Mayoral Development Zone

    Source: City of Salford

    Salford City Council has today (28 January) approved a report to explore the opportunity and benefits for the establishment of a Mayoral Development Zone (MDZ), which could pave the way for significant investment and growth in a key part of the city.

    The decision was made at Cabinet with Salford City Mayor, Paul Dennett and senior elected members signing off on the proposed plans. 

    Councillors supported the plans for an MDZ within the wider Western Gateway area of the city. The Western Gateway refers to the west part of the city, the area surrounding the Liverpool Rd and M62 corridors and along the route of the Manchester Ship Canal. 

    The ambitious plans are part of a cross-borough approach with Greater Manchester Combined Authority (GMCA) and Trafford Council and could see thousands of job opportunities created alongside the huge economic boost that could be realised from regeneration through the MDZ. 

    Paul Dennett, Salford City Mayor, said: “Realising the full potential of the Western Gateway and Port Salford and driving significant growth and economic benefit has long been a key aspiration for the city council. 

    Across Salford and Trafford there is the potential to generate thousands of new jobs, capitalising on planned employment space, new homes, as well as leisure and retail.

    Good growth is one of the cornerstones of our priorities, outlined in our corporate plan This is our Salford, and these plans represent our commitment to delivering on our ambitions to create a fairer, greener, healthier and more inclusive city. 

    This much needed redevelopment and subsequent growth will not happen overnight, but this step is an important and exciting one as it moves our aspirations for this area of the city closer to becoming a reality. 

    Now this proposal has been approved, myself, along with senior elected members and officers will now begin to develop the MDZ further and explore all the possibilities associated with this approach.” 

    An MDZ refers to a defined area where a mayor can seek to channel significant investment and development activity with the goal of regenerating and revitalising that specific area. 

    The MDZ will provide clear governance, resources and a dedicated work programme to secure investment to unlock key development sites in the Western Gateway.

    The Western Gateway is one of six growth locations in Greater Manchester identified to generate significant inclusive growth and economic benefits. In order to unlock potential growth, the site is reliant on significant highway and rail infrastructure investment. 

    Port Salford has been a long-term component of the city’s planned future regeneration and growth for the city council, and this move brings this vision a step closer to fruition. 

    Port Salford Phase 1 already has consent for the construction of a multi-modal freight interchange comprising 155,000 sqm (1,600,000 sqft) of warehousing with the potential to be the only inland tri-modal port in the UK.

    In 2012, Government funding was secured to part finance and deliver Part WGIS which allowed development of up to 55,000 sqm at Port Salford. 

    Initial development in 2017, saw the completion of 55,000sqm of warehouse space occupied by Great Bear.  

    By also including Port Salford Phase 2 (adopted under Places for Everyone) and development land at the City of Salford Community Stadium, these sites collectively provide an opportunity to deliver 511,000sqm of new employment floorspace, 5,790 new jobs and circa £6.4m in business rates.

    Approval to explore the MDZ is a key decision and is subject to 5-day call in period. The approval of these plans follows on from the decision made by Trafford Council’s executive on Monday 27 January to approve the plans. The approval decision will then be presented to GMCA’s executive on Friday 31 January for decision.

    Share this

    Date published
    Tuesday 28 January 2025

    Press and media enquiries

    MIL OSI United Kingdom –

  • MIL-OSI: E Ink and Cream Guitars Debuted World’s First Color-Changing Guitar

    Source: GlobeNewswire (MIL-OSI)

    BILLERICA, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) — E Ink (8069.TW) the originator, pioneer, and global commercial leader in ePaper technology, announced its collaboration with Cream Guitars that features the world’s first color-changing guitars. Cream Guitars integrated E Ink Prism 3 ePaper into the Voltage DaVinci design and showcased the latest models at NAMM 2025.

    True tastemakers, Cream Guitars is challenging legacy manufacturers by adopting cutting-edge technology that not only inspires artists and onlookers but also pushes the boundaries of personalization and customization. The E Ink wrapped guitars feature seven colors and enables players to express themselves in unique ways.

    “We had the idea to break all the rules of the traditional guitar,” said Luis Ortiz, CEO, Cream Guitars. “We’ve redesigned every part of an electric guitar to broaden and enhance the playing experience. Through our innovative collaboration with E Ink, we are providing artists a level of creativity that extends well beyond anything available in today’s market.”

    E Ink Prism 3 bridges the gap between traditional static materials and digital technology with dynamically changing materials. The Prism 3 technology is known for its low power consumption, durability, and color-changing capabilities, and is disrupting industries, including automobile, fashion, architecture, and now, music.

    “Cream Guitars is at the forefront of instrument design, and this collaboration marks a significant milestone in their commitment to pushing the boundaries of what is possible,” said Pete Valianatos, Senior Director of Strategic Initiatives, E Ink. “We are proud to work with them to create an instrument that not only sounds great but makes a visual statement as powerful as their music.”

    Beyond the color-changing capabilities, E Ink’s technology is ultra-low power and is an energy-efficient alternative to other display technologies available. E Ink’s ePaper technology has been designated as a contributor to environmental progress by offering efficient and low-carbon displays. E Ink’s commitment to sustainability goes beyond the technology with nearly 60% of its global operations powered by renewable energy and aims to reach 65% renewable energy usage by next year. E Ink is so efficient, the company was included in the Dow Jones Sustainability World and Emerging Markets Indices for the third consecutive year.

    Similarly, Cream Guitars also has a strong commitment to the environment. The company strives to ensure that the woods used in production are 100% renewable and focuses on minimizing waste at every step of the manufacturing process. This ensures that their guitars make a minimal environmental impact, while maintaining their high-quality standards.

    About E Ink
    E Ink Holdings Inc. (8069.TWO), based on technology from MIT’s Media Lab, provides an ideal display medium for applications spanning eReaders and eNotes, retail, home, hospital, transportation, logistics, and more, enabling customers to put displays in locations previously impossible. E Ink’s electrophoretic display products make it the worldwide leader for ePaper. Its low power displays enable customers to reach their sustainability goals, and E Ink has pledged using 100% renewable energy in 2030 and reaching net zero carbon emissions by 2040. E Ink has been recognized for their efforts by receiving, validation from Science-Based Targets (SBTi) and is listed in both the DJSI World and DJSI Emerging Indexes. Listed in Taiwan’s Taipei Exchange (TPEx) and the Luxembourg market, E Ink Holdings is now the world’s largest supplier of ePaper displays. For more information please visit www.eink.com. E Ink. We Make Surfaces Smart and Green.

    Contact:
    V2 Communications on behalf of E Ink
    eink@v2comms.com

    Photos accompanying this announcement are available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/e9ae74a8-6453-4337-a161-760143463043
    https://www.globenewswire.com/NewsRoom/AttachmentNg/da17054c-b8dc-426d-9e83-6bd25e588244

    The MIL Network –

  • MIL-OSI: Community Bankshares, Inc. Acquires Thomas USAF / Thomas Financial Group to Completely Revolutionize Government-Guaranteed Lending Nationwide

    Source: GlobeNewswire (MIL-OSI)

    LAGRANGE, Ga., Jan. 28, 2025 (GLOBE NEWSWIRE) — Community Bankshares, Inc., one of the fastest-growing financial services companies in the nation, announces its acquisition of Thomas USAF / Thomas Financial Group, a 30-year industry leader in USDA government-guaranteed commercial lending. This acquisition, coming on the heels of the recent launch of Phoenix Lender Services, underscores Community Bankshares’ bold strategy to redefine the financial services landscape and expand its leadership in innovative lending solutions for rural and underserved markets across the United States.

    A Future-Focused Partnership

    “This is not just an acquisition — it’s a reimagining of what’s possible in government-guaranteed lending,” said Jeremy Gilpin, Chairman of the Board of Community Bankshares, Inc. “By combining the proven track record of Thomas Financial Group as a top USDA originator and packager with the cutting-edge capabilities of Phoenix Lender Services and lending expertise of Community Bank & Trust, we’re setting a new standard for how rural and underserved markets can access capital and thrive.”

    The acquisition builds on Community Bankshares’ strategic vision of redefining how lending capital is provided across America in a manner that promotes business stability and encourages community prosperity.

    Jeremy Gilpin and Chris Hurn bring more than 60 years of combined experience in government-guaranteed lending. Together, they have assembled a powerhouse leadership team within the Community Bankshares companies that is certain to shake up the industry. Their shared vision, innovative strategies, and proven success in government-guaranteed lending sets the stage for a transformative era in rural economic development and business financing.

    A Legacy of Leadership

    Founded by visionary entrepreneur Mike Thomas, Thomas USAF / Thomas Financial Group has been a pioneer in leveraging USDA and SBA lending programs to empower small businesses and revitalize communities. Consistently ranked as one of the top originators and packagers of USDA and SBA loans in the nation, the company has facilitated over $5 billion in financing to businesses across diverse industries, helping them navigate complex lending scenarios and achieve their financial goals.

    “Founding Thomas Financial was not just about lending—it was about giving rural and underserved communities a fighting chance to grow and thrive,” said Mike Thomas, Founder of Thomas Financial Group. “As I hand the reins to the brilliant Jeremy Gilpin and the exceptional leadership at Community Bankshares, I am proud of the legacy we leave behind and confident in the transformative impact this partnership will have nationwide.”

    Mike Thomas will remain actively engaged with the organization to assist with Governmental Affairs, playing a key role in shaping its strategic direction. Leveraging his decades of experience and extensive industry relationships, Mr. Thomas will focus on advocating for rural and underserved markets, as well as small businesses, to strengthen the company’s leadership in the government-guaranteed lending sector. His ongoing involvement ensures that Thomas Financial Group, along with the entire Community Bankshares family of companies, remains at the forefront of legislative initiatives, policy development, and strategic partnerships with government agencies.

    “This acquisition reflects our unwavering commitment to transforming access to capital in underserved markets,” said Gilpin. “With the expertise of Thomas Financial Group and our shared values, we are building a new era of opportunity for businesses and communities nationwide.”

    Community Bankshares is now positioned as a leader in addressing current challenges faced by small businesses and rural economies, particularly as they navigate a rapidly evolving financial landscape. The partnership will also ensure the continued legacy of excellence established by Thomas Financial Group, now a wholly owned subsidiary of Community Bankshares.

    “We are poised to lead one of the most innovative and forward-thinking organizations in the government-guaranteed lending sector nationwide,” said Chris Hurn, President of Community Bankshares. “This collaboration not only enhances our capacity to serve businesses across the spectrum, from startups to established enterprises, but it also reaffirms our commitment to championing economic growth in rural and underserved markets. Together, we will ensure these communities remain integral to the progress and prosperity of our nation’s economy.”

    For more information about Thomas Financial Group, visit www.ThomasFinancialGroup.com.

    About Thomas Financial Group

    Thomas Financial Group, based in Atlanta, Georgia, is now a subsidiary of Community Bankshares, Inc. and a nationally recognized leader in commercial lending solutions. Specializing in USDA and SBA programs, the company has a proven track record of empowering businesses, strengthening rural and underserved communities, and advancing government-guaranteed lending.

    About Community Bankshares, Inc.

    Headquartered in LaGrange, Georgia, Community Bankshares, Inc. is the parent company of Community Bank & Trust and a network of financial service subsidiaries. Phoenix Lender Services (PHX) is a subsidiary of Community Bankshares, Inc. Whose mission is redefining the way lending capital is provided across America, in a manner that promotes business stability and encourages community prosperity. The company serves a diverse clientele across the nation, fostering growth, opportunity, and collaboration.

    Media Contact:

    Hannah Williams
    Uproar by Moburst for Community Bankshares Inc
    hannah.williams@moburst.com

    The MIL Network –

  • MIL-OSI: BCB Bancorp, Inc. Earns $3.3 Million in Fourth Quarter 2024; Reports $0.16 EPS and Declares Quarterly Cash Dividend of $0.16 Per Share

    Source: GlobeNewswire (MIL-OSI)

    BAYONNE, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) — BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $3.3 million for the fourth quarter of 2024, compared to $6.7 million in the third quarter of 2024, and $6.1 million for the fourth quarter of 2023. Earnings per diluted share for the fourth quarter of 2024 were $0.16, compared to $0.36 in the preceding quarter and $0.35 in the fourth quarter of 2023. Net income and earnings per diluted share for the fourth quarter of 2024, without giving effect to the Company’s unrealized losses on equity investments and the loss on sale of non-performing loans, were $4.1 million and $0.24, respectively.

    The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on February 24, 2025 to common shareholders of record on February 7, 2025.

    “We took a number of positive actions during 2024 that have strengthened our balance sheet position. We meaningfully reduced our exposure to wholesale funding and continue to work hard on replacing higher cost funding with core deposits. Additionally, we have strengthened our capital position through positive retained earnings, favorable capital actions and selective loan growth. We have been prudently building up our CECL reserves to address asset quality issues. As we tackle and remediate credit quality issues, we are also positioning the Bank to gradually start lending and booking new business with both existing and new customers,” stated Michael Shriner, President and Chief Executive Officer.

    Executive Summary

    • Total deposits were $2.751 billion at December 31, 2024 compared to $2.725 billion at September 30, 2024.
    • Net interest margin was 2.53 percent for the fourth quarter of 2024, compared to 2.58 percent for the third quarter of 2024, and 2.57 percent for the fourth quarter of 2023.
      • Total yield on interest-earning assets was 5.33 percent for the fourth quarter of 2024 compared to 5.44 percent for the third quarter of 2024, and 5.33 percent for the fourth quarter of 2023.
      • Total cost of interest-bearing liabilities was 3.57 percent for the fourth quarter of 2024, compared to 3.62 percent for the third quarter of 2024, and 3.45 percent for the fourth quarter of 2023.
    • The efficiency ratio for the fourth quarter was 62.1 percent compared to 53.2 percent in the prior quarter, and 61.0 percent in the fourth quarter of 2023.
    • The annualized return on average assets ratio for the fourth quarter was 0.36 percent, compared to 0.72 percent in the prior quarter, and 0.63 percent in the fourth quarter of 2023.
    • The annualized return on average equity ratio for the fourth quarter was 4.0 percent, compared to 8.3 percent in the prior quarter, and 7.9 percent in the fourth quarter of 2023.
    • The provision for credit losses was $4.2 million in the fourth quarter of 2024 compared to $2.9 million for the third quarter of 2024, and $1.9 million for the fourth quarter of 2023.
    • The allowance for credit losses (“ACL”) as a percentage of total loans was 1.15 percent at December 31, 2024 compared to 1.11 percent at the prior quarter-end and 1.01 percent at December 31, 2023.
    • Total loans receivable, net of the allowance for credit losses, of $2.996 billion at December 31, 2024, decreased 8.6 percent from $3.280 billion at December 31, 2023.

    Balance Sheet Review

    Total assets decreased by $233.3 million, or 6.1 percent, to $3.599 billion at December 31, 2024, from $3.832 billion at December 31, 2023. The decrease in total assets was due to a decrease in loans of $283.4 million, offset by an increase of $37.8 million in cash and cash equivalents. The decrease in loans was primarily from loan sales and payoffs/paydowns that exceeded loan originations.

    Total cash and cash equivalents increased by $37.8 million, or 13.5 percent, to $317.3 million at December 31, 2024, from $279.5 million at December 31, 2023. The increase was primarily due to loan sales and payoffs/paydowns that exceeded loan originations.

    Loans receivable, net, decreased by $283.4 million, or 8.6 percent, to $2.996 billion at December 31, 2024, from $3.280 billion at December 31, 2023. Total loan decreases during the period included decreases of $187.4 million in commercial real estate multi-family loans, $57.4 million in construction loans, $29.4 million in commercial business loans, $8.4 million in residential 1-4 family loans, and $1.4 million in consumer loans. Home equity loans increased $438 thousand. The allowance for credit losses on loans increased $1.2 million to $34.8 million, or 77.8 percent of non-accruing loans and 1.15 percent of gross loans, at December 31, 2024, as compared to an allowance for credit losses on loans of $33.6 million, or 178.9 percent of non-accruing loans and 1.01 percent of gross loans, at December 31, 2023.

    Total investment securities increased by $14.3 million, or 14.8 percent, to $111.2 million at December 31, 2024, from $96.9 million at December 31, 2023, as excess liquidity has been deployed into the securities portfolio.

    Deposits decreased by $228.2 million, or 7.7 percent, to $2.751 billion at December 31, 2024, from $2.979 billion at December 31, 2023. A majority of the decline was due to a decrease in certificates of deposit of $193.5 million. The reduction in certificates of deposit was mainly caused by the withdrawal of brokered deposits which was partially offset by an increase in retail time deposits.

    Total borrowings decreased by $12.1 million to $498.3 million at December 31, 2024 from $510.4 million at December 31, 2023. The decrease in borrowings was primarily due to the maturity of $18.0 million of FHLB debt that was paid off during 2024. The weighted average interest rate of the Company’s outstanding FHLB advances was 4.35 percent at December 31, 2024 and 4.21 percent at December 31, 2023. The weighted average maturity of such FHLB advances as of December 31, 2024 was 0.97 years. The interest rate of the Company’s subordinated debt balances was 9.25 percent at December 31, 2024 and 8.36 percent at December 31, 2023.

    Stockholders’ equity increased by $9.9 million, or 3.1 percent, to $323.9 million at December 31, 2024, from $314.1 million at December 31, 2023. The increase was primarily attributable to the increase in retained earnings of $5.9 million, or 4.4 percent, to $141.9 million at December 31, 2024 from $135.9 million at December 31, 2023.

    Fourth Quarter 2024 Income Statement Review

    Net income was $3.3 million for the quarter ended December 31, 2024 and $6.1 million for the quarter ended December 31, 2023. In the fourth quarter of 2024, the Bank recorded $2.2 million more in loan loss provisioning, and net interest income declined by $1.7 million. Non-interest income was also lower by $2.3 million. Offsetting these declines was a decrease in non-interest expense of $2.2 million. The Bank also recorded $1.3 million less for income tax provisioning.

    Net interest income decreased by $1.7 million, or 7.2 percent, to $22.2 million for the fourth quarter of 2024, from $23.9 million for the fourth quarter of 2023. The decrease in net interest income resulted from lower interest income, offset by lower interest expense.

    Interest income decreased by $3.1 million, or 6.1 percent, to $46.7 million for the fourth quarter of 2024, from $49.7 million for the fourth quarter of 2023. The average balance of interest-earning assets decreased $226.6 million, or 6.1 percent. The rate of return remained flat at 5.33 percent.

    Interest expense declined $1.3 million, to $24.5 million, for the fourth quarter of 2024, from $25.8 million for the fourth quarter of 2023. Average interest-bearing liabilities decreased $247.2 million, or 8.3 percent. The average yield on these liabilities was 3.57 percent, versus 3.45 percent from one year earlier.

    The net interest margin was 2.53 percent for the fourth quarter of 2024 compared to 2.57 percent for the fourth quarter of 2023. The decrease in the net interest margin compared to the fourth quarter of 2023 was the result of the increase in the cost of interest-bearing liabilities. The yield on interest earning assets remained the same from one year earlier.

    During the fourth quarter of 2024, the Company recognized $4.1 million in net charge-offs compared to $233 thousand in net charge offs for the fourth quarter of 2023. The Bank had non-accrual loans totaling $44.7 million, or 1.48 percent of gross loans, at December 31, 2024 as compared to $18.8 million, or 0.57 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was $34.8 million, or 1.15 percent of gross loans, at December 31, 2024, and $33.6 million, or 1.01 percent of gross loans, at December 31, 2023. The provision for credit losses on loans was $4.2 million for the fourth quarter of 2024 compared to $1.9 million for the fourth quarter of 2023. Management believes that the allowance for credit losses on loans was adequate at December 31, 2024 and December 31, 2023.

    Non-interest income decreased by $2.3 million to $938 thousand for the fourth quarter of 2024 from $3.2 million in the fourth quarter of 2023. The decrease in total non-interest income was related to losses on equity investments of $661 thousand in the 2024 quarter as compared to a gain on such investments of $1.1 million in the 2023 quarter, as well as the recordation of a $570 thousand loss on the sale of a non-performing loan during the fourth quarter.

    Non-interest expense decreased by $2.2 million, or 13.3 percent, to $14.4 million for the fourth quarter of 2024 from $16.6 million for the fourth quarter of 2023. The decrease in these expenses for the fourth quarter of 2024 was driven by lower salaries and benefits expense, which declined $857 thousand. The fourth quarter of 2023 salaries and benefits included a previously disclosed one-time payment of $1.17 million to a former executive officer. Professional fees, regulatory assessment fees and advertising and promotional costs also declined by $388 thousand, $373 thousand, and $191 thousand, respectively.

    The income tax provision decreased by $1.3 million, or 48.4 percent, to $1.3 million for the fourth quarter of 2024. The provision was $2.6 million for the fourth quarter of 2023. The consolidated effective tax rate was 29.0 percent for the fourth quarter of 2024 and 29.9 percent for the fourth quarter of 2023.

    Year-to-Date Income Statement Review

    Net income decreased by $10.9 million, or 36.8 percent, to $18.6 million for the twelve months of 2024 from $29.5 million for the twelve months of 2023. The decrease in net income was driven, primarily, by lower net interest income of $12.0 million, or 11.6 percent, and an increase in the provision for credit losses by $5.5 million.

    Net interest income decreased by $12.0 million, or 11.6 percent, to $92.0 million for the first twelve months of 2024 from $104.1 million for the twelve months of 2023. The decrease in net interest income resulted from an increase in interest expense of $17.7 million, partly offset by an increase in interest income of $5.6 million.

    Interest income increased by $5.6 million, or 3.0 percent, to $194.0 million for the twelve months of 2024, from $188.4 million for the twelve months of 2023. The increase was due to an increase of 22 basis points on interest earning assets, from 5.16 percent to 5.38 percent. Offsetting this, somewhat, was a decrease in average interest earning assets of $47.5 million, for the comparable period, which was comprised of a decrease in average loans of $84.8 million offset by an increase in average other interest-earning assets of $37.6 million.

    Interest expense increased by $17.7 million, or 21.0 percent, to $102.0 million for 2024, from $84.3 million for 2023. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 64 basis points to 3.57 percent for the twelve months of 2024, from 2.93 percent for the twelve months of 2023. Offsetting this was a decrease in average interest bearing liabilities of $18.5 million over the same comparable time period.

    Net interest margin was 2.55 percent for the twelve months of 2024, compared to 2.85 percent for the twelve months of 2023. The decrease in the net interest margin compared to the prior period was largely the result of an increase in the cost of the Bank’s interest-bearing liabilities.

    During the twelve months of 2024, the Company experienced $10.4 million in net charge offs compared to $704 thousand in net charge offs for the same period in 2023. The provision for credit losses was $11.6 million for the twelve months of 2024 compared to $6.1 million for the same period in 2023.

    Non-interest income decreased by $1.1 million to $2.9 million for the twelve months of 2024 from $4.1 million for the twelve months of 2023. The decrease was due to losses on sales of loans of $5.3 million. This was offset by realized and unrealized gains or losses on equity investments, which were $3.7 million greater, and income on Bank-owned Life Insurance (BOLI), which was $883 thousand higher, for the comparable period. The realized and unrealized gains or losses on equity investments are based on prevailing market conditions.

    Non-interest expense decreased by $3.5 million, or 5.7 percent, to $57.1 million for the twelve months of 2024 from $60.6 million for the same period in 2023. The decrease in operating expenses for 2024 was driven primarily by decreases in salaries and employee benefits of $2.6 million and advertising and promotional costs of $485 thousand. The 2023 salaries and benefits expense included the payment to a former executive described above.

    The income tax provision decreased by $4.3 million, or 36.6 percent to $7.6 million for the twelve months of 2024 from $12.0 million for the same period in 2023. The consolidated effective tax rate was 29.1 percent for the twelve months of 2024 compared to 28.9 percent for the twelve months of 2023.

    Asset Quality

    During the fourth quarter of 2024, the Company recognized $4.1 million in net charge offs, compared to $233 thousand in net charge offs for the fourth quarter of 2023.

    The Bank had non-accrual loans totaling $44.7 million, or 1.48 percent of gross loans, at December 31, 2024, as compared to $18.8 million, or 0.57 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was $34.8 million, or 1.15 percent of gross loans, at December 31, 2024, and $33.6 million, or 1.01 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was 77.8 percent of non-accrual loans at December 31, 2024, and 178.9 percent of non-accrual loans at December 31, 2023.

    About BCB Bancorp, Inc.

    BCB Bancorp, Inc. is a New Jersey corporation established in 2003, and is the holding company parent of BCB Community Bank. The Company has not engaged in any significant business activity other than owning all of the outstanding common stock of the Bank. Established in 2000 and headquartered in Bayonne, N.J., the Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has twenty-three New Jersey branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four New York branch offices in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

    Forward-Looking Statements

    This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies 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. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

    The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels and higher interest rates concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity and capital in a rapidly changing and unpredictable market, and supply chain disruptions.. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; the impact of any future pandemics or other natural disasters; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, and our other periodic reports that we file with the SEC.

    Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

    Explanation of Non-GAAP Financial Measures

    Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.

    The Company provides measurements and ratios based on tangible stockholders’ equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

             
      Statements of Income – Three Months Ended,      
      December 31, 2024 September 30, 2024 December 31, 2023 Dec 31, 2024 vs. Sept 30, 2024   Dec 31, 2024 vs. Dec 31, 2023
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)      
    Loans, including fees $ 41,431   $ 42,857   $ 43,893   -3.3 %   -5.6 %
    Mortgage-backed securities   473     303     293   56.1 %   61.4 %
    Other investment securities   978     994     991   -1.6 %   -1.3 %
    FHLB stock and other interest-earning assets   3,771     4,472     4,527   -15.7 %   -16.7 %
    Total interest and dividend income   46,653     48,626     49,704   -4.1 %   -6.1 %
                 
    Interest expense:            
    Deposits:            
    Demand   5,866     5,686     5,015   3.2 %   17.0 %
    Savings and club   156     146     177   6.8 %   -11.9 %
    Certificates of deposit   12,218     13,670     13,308   -10.6 %   -8.2 %
        18,240     19,502     18,500   -6.5 %   -1.4 %
    Borrowings   6,219     6,079     7,282   2.3 %   -14.6 %
    Total interest expense   24,459     25,581     25,782   -4.4 %   -5.1 %
                 
    Net interest income   22,194     23,045     23,922   -3.7 %   -7.2 %
    Provision for credit losses   4,154     2,890     1,927   43.7 %   115.6 %
                 
    Net interest income after provision for credit losses   18,040     20,155     21,995   -10.5 %   -18.0 %
                 
    Non-interest income income (loss) :            
    Fees and service charges   1,187     1,196     1,445   -0.8 %   -17.9 %
    (Loss) gain on sales of loans   (554 )   35     11   -1682.9 %   -5136.4 %
    Realized and unrealized gain (loss) on equity investments   (661 )   1,132     1,029   -158.4 %   -164.2 %
    Bank-owned life insurance (“BOLI”) income   636     652     597   -2.5 %   6.5 %
    Other   330     112     69   194.6 %   378.3 %
    Total non-interest income   938     3,127     3,228   -70.0 %   -70.9 %
                 
    Non-interest expense:            
    Salaries and employee benefits   7,117     7,139     7,974   -0.3 %   -10.7 %
    Occupancy and equipment   2,483     2,591     2,606   -4.2 %   -4.7 %
    Data processing and communications   1,754     1,681     1,721   4.3 %   1.9 %
    Professional fees   599     618     987   -3.1 %   -39.3 %
    Director fees   269     351     274   -23.4 %   -1.8 %
    Regulatory assessment fees   769     666     1,142   15.5 %   -32.7 %
    Advertising and promotions   212     182     403   16.5 %   -47.4 %
    Other real estate owned, net   –     –     4   0.0 %   -100.0 %
    Other   1,164     701     1,457   66.0 %   -20.1 %
    Total non-interest expense   14,367     13,929     16,568   3.1 %   -13.3 %
                 
    Income before income tax provision   4,611     9,353     8,655   -50.7 %   -46.7 %
    Income tax provision   1,339     2,685     2,593   -50.1 %   -48.4 %
                 
    Net Income   3,272     6,668     6,062   -50.9 %   -46.0 %
    Preferred stock dividends   475     475     182   -0.0 %   160.7 %
    Net Income available to common stockholders $ 2,797   $ 6,193   $ 5,880   -54.8 %   -52.4 %
                 
    Net Income per common share-basic and diluted            
    Basic $ 0.16   $ 0.36   $ 0.35   -54.9 %   -52.9 %
    Diluted $ 0.16   $ 0.36   $ 0.35   -54.9 %   -53.0 %
                 
    Weighted average number of common shares outstanding            
    Basic   17,056     17,039     16,876   0.1 %   1.1 %
    Diluted   17,108     17,064     16,884   0.3 %   1.3 %
      Statements of Income – Twelve Months Ended,  
      December 31, 2024 December 31, 2023 Dec 31, 2024 vs. Dec 31, 2023
    Interest and dividend income: (In thousands, except per share amounts, Unaudited)  
    Loans, including fees $ 172,046   $ 169,559   1.5 %
    Mortgage-backed securities   1,378     880   56.6 %
    Other investment securities   3,953     4,226   -6.5 %
    FHLB stock and other interest-earning assets   16,632     13,695   21.4 %
    Total interest and dividend income   194,009     188,360   3.0 %
           
    Interest expense:      
    Deposits:      
    Demand   22,158     16,915   31.0 %
    Savings and club   620     620   0.0 %
    Certificates of deposit   55,442     39,157   41.6 %
        78,220     56,692   38.0 %
    Borrowings   23,768     27,606   -13.9 %
    Total interest expense   101,988     84,298   21.0 %
           
    Net interest income   92,021     104,062   -11.6 %
    Provision for credit losses   11,570     6,104   89.5 %
           
    Net interest income after provision for credit losses   80,451     97,958   -17.9 %
           
    Non-interest income:      
    Fees and service charges   4,717     5,334   -11.6 %
    (Loss) gain on sales of loans   (5,325 )   36   -14891.7 %
    Realized and unrealized gain (loss) on equity investments   379     (3,361 ) -111.3 %
    Bank-owned life insurance (“BOLI”) income   2,634     1,751   50.4 %
    Other   535     251   113.1 %
    Total non-interest income   2,940     4,088   -28.1 %
           
    Non-interest expense:      
    Salaries and employee benefits   28,229     30,827   -8.4 %
    Occupancy and equipment   10,247     10,340   -0.9 %
    Data processing and communications   6,960     6,968   -0.1 %
    Professional fees   2,416     2,735   -11.7 %
    Director fees   1,151     1,083   6.3 %
    Regulatory assessments   3,530     3,585   -1.5 %
    Advertising and promotions   863     1,348   -36.0 %
    Other real estate owned, net   –     7   -100.0 %
    Other   3,725     3,698   0.7 %
    Total non-interest expense   57,121     60,591   -5.7 %
           
    Income before income tax provision   26,270     41,455   -36.6 %
    Income tax provision   7,647     11,972   -36.1 %
           
    Net Income   18,623     29,483   -36.8 %
    Preferred stock dividends   1,832     702   160.9 %
    Net Income available to common stockholders $ 16,791   $ 28,781   -41.7 %
           
    Net Income per common share-basic and diluted      
    Basic $ 0.99   $ 1.71   -42.1 %
    Diluted $ 0.99   $ 1.70   -42.0 %
           
    Weighted average number of common shares outstanding      
    Basic   17,007     16,870   0.8 %
    Diluted   17,018     16,932   0.5 %
    Statements of Financial Condition December 31, 2024 September 30, 2024 December 31, 2023 Dec 31, 2024 vs. Sept 30, 2024 Dec 31, 2024 vs. Dec 31, 2023
    ASSETS (In Thousands, Unaudited)    
    Cash and amounts due from depository institutions $ 14,075   $ 12,617   $ 16,597   11.6 % -15.2 %
    Interest-earning deposits   303,207     230,506     262,926   31.5 % 15.3 %
    Total cash and cash equivalents   317,282     243,123     279,523   30.5 % 13.5 %
               
    Interest-earning time deposits   735     735     735   –   –  
    Debt securities available for sale   101,717     98,169     87,769   3.6 % 15.9 %
    Equity investments   9,472     10,133     9,093   -6.5 % 4.2 %
    Loans held for sale   –     250     1,287   -100.0 % -100.0 %
    Loans receivable, net of allowance for credit losses on loans of $34,789, $34,693 and $33,608, respectively   2,996,259     3,087,914     3,279,708   -3.0 % -8.6 %
    Federal Home Loan Bank of New York (“FHLB”) stock, at cost   24,272     24,732     24,917   -1.9 % -2.6 %
    Premises and equipment, net   12,569     12,008     13,057   4.7 % -3.7 %
    Accrued interest receivable   15,176     16,496     16,072   -8.0 % -5.6 %
    Deferred income taxes   17,181     17,370     18,213   -1.1 % -5.7 %
    Goodwill and other intangibles   5,253     5,253     5,253   0.0 % 0.0 %
    Operating lease right-of-use asset   12,686     13,438     12,935   -5.6 % -1.9 %
    Bank-owned life insurance (“BOLI”)   76,040     75,404     73,407   0.8 % 3.6 %
    Other assets   10,476     8,745     10,428   19.8 % 0.5 %
    Total Assets $ 3,599,118   $ 3,613,770   $ 3,832,397   -0.4 % -6.1 %
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
               
    LIABILITIES          
    Non-interest bearing deposits $ 520,387   $ 528,089   $ 536,264   -1.5 % -3.0 %
    Interest bearing deposits   2,230,471     2,196,491     2,442,816   1.5 % -8.7 %
    Total deposits   2,750,858     2,724,580     2,979,080   1.0 % -7.7 %
    FHLB advances   455,361     466,424     472,811   -2.4 % -3.7 %
    Subordinated debentures   42,961     67,042     37,624   -35.9 % 14.2 %
    Operating lease liability   13,139     13,878     13,315   -5.3 % -1.3 %
    Other liabilities   12,874     13,733     15,512   -6.3 % -17.0 %
    Total Liabilities   3,275,193     3,285,657     3,518,342   -0.3 % -6.9 %
               
    STOCKHOLDERS’ EQUITY          
    Preferred stock: $0.01 par value, 10,000 shares authorized   –     –     –   –   –  
    Additional paid-in capital preferred stock   24,723     29,763     25,043   -16.9 % -1.3 %
    Common stock: no par value, 40,000 shares authorized   –     –     –   0.0 % 0.0 %
    Additional paid-in capital common stock   200,935     200,605     198,923   0.2 % 1.0 %
    Retained earnings   141,853     141,770     135,927   0.1 % 4.4 %
    Accumulated other comprehensive loss   (5,239 )   (5,678 )   (7,491 ) -7.7 % -30.1 %
    Treasury stock, at cost   (38,347 )   (38,347 )   (38,347 ) 0.0 % 0.0 %
    Total Stockholders’ Equity   323,925     328,113     314,055   -1.3 % 3.1 %
               
    Total Liabilities and Stockholders’ Equity $ 3,599,118   $ 3,613,770   $ 3,832,397   -0.4 % -6.1 %
               
    Outstanding common shares   17,063     17,048     16,904      
      Three Months Ended December 31,
        2024       2023  
      Average Balance Interest Earned/Paid Average Yield/Rate (3)   Average Balance Interest Earned/Paid Average Yield/Rate (3)
      (Dollars in thousands)
    Interest-earning assets:              
    Loans Receivable(4)(5) $ 3,081,846   $ 41,431   5.38 %   $ 3,311,946   $ 43,893   5.30 %
    Investment Securities   110,447     1,451   5.26 %     93,638     1,284   5.48 %
    Other Interest-earning assets(6)   309,804     3,771   4.87 %     323,064     4,527   5.61 %
    Total Interest-earning assets   3,502,097     46,653   5.33 %     3,728,648     49,704   5.33 %
    Non-interest-earning assets   124,554           124,809      
    Total assets $ 3,626,651         $ 3,853,457      
    Interest-bearing liabilities:              
    Interest-bearing demand accounts $ 551,971   $ 2,682   1.94 %   $ 578,890   $ 2,184   1.51 %
    Money market accounts   380,136     3,184   3.35 %     359,366     2,832   3.15 %
    Savings accounts   254,093     156   0.25 %     288,108     177   0.25 %
    Certificates of Deposit   1,048,341     12,218   4.66 %     1,140,656     13,307   4.67 %
    Total interest-bearing deposits   2,234,541     18,240   3.27 %     2,367,020     18,500   3.13 %
    Borrowed funds   508,113     6,219   4.90 %     622,860     7,282   4.68 %
    Total interest-bearing liabilities   2,742,654     24,459   3.57 %     2,989,880     25,782   3.45 %
    Non-interest-bearing liabilities   560,345           557,156      
    Total liabilities   3,302,999           3,547,036      
    Stockholders’ equity   323,652           306,420      
    Total liabilities and stockholders’ equity $ 3,626,651         $ 3,853,457      
    Net interest income   $ 22,194         $ 23,922    
    Net interest rate spread(1)     1.76 %       1.88 %
    Net interest margin(2)     2.53 %       2.57 %
                   
    (1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average total interest-earning assets.
    (3) Annualized.
    (4) Excludes allowance for credit losses.
    (5) Includes non-accrual loans.
    (6) Includes Federal Home Loan Bank of New York Stock.
      Year Ended December 31,
        2024       2023  
      Average Balance Interest Earned/Paid Average Yield/Rate (3)   Average Balance Interest Earned/Paid Average Yield/Rate (3)
      (Dollars in thousands)
    Interest-earning assets:              
    Loans Receivable(4)(5) $ 3,196,538   $ 172,046   5.38 %   $ 3,281,334   $ 169,559   5.17 %
    Investment Securities   99,733     5,331   5.35 %     100,000     5,106   5.11 %
    Other interest-earning assets(6)   308,248     16,632   5.40 %     270,659     13,695   5.06 %
    Total Interest-earning assets   3,604,519     194,009   5.38 %     3,651,993     188,360   5.16 %
    Non-interest-earning assets   124,441           123,652      
    Total assets $ 3,728,960         $ 3,775,645      
    Interest-bearing liabilities:              
    Interest-bearing demand accounts $ 553,013   $ 9,701   1.75 %   $ 658,023   $ 8,426   1.28 %
    Money market accounts   372,205     12,457   3.35 %     334,353     8,489   2.54 %
    Savings accounts   264,430     620   0.23 %     305,778     620   0.20 %
    Certificates of Deposit   1,153,235     55,442   4.81 %     980,617     39,157   3.99 %
    Total interest-bearing deposits   2,342,883     78,220   3.34 %     2,278,771     56,692   2.49 %
    Borrowed funds   511,916     23,768   4.64 %     594,564     27,606   4.64 %
    Total interest-bearing liabilities   2,854,799     101,988   3.57 %     2,873,335     84,298   2.93 %
    Non-interest-bearing liabilities   554,037           602,691      
    Total liabilities   3,408,836           3,476,026      
    Stockholders’ equity   320,124           299,618      
    Total liabilities and stockholders’ equity $ 3,728,960         $ 3,775,644      
    Net interest income   $ 92,021         $ 104,062    
    Net interest rate spread(1)     1.81 %       2.22 %
    Net interest margin(2)     2.55 %       2.85 %
                   
    (1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average total interest-earning assets.
    (3) Annualized.
    (4) Excludes allowance for credit losses.
    (5) Includes non-accrual loans.
    (6) Includes Federal Home Loan Bank of New York Stock.
      Financial Condition data by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
               
      (In thousands, except book values)
    Total assets $ 3,599,118   $ 3,613,770   $ 3,793,941   $ 3,849,195   $ 3,832,397  
    Cash and cash equivalents   317,282     243,123     326,870     352,448     279,523  
    Securities   111,189     108,302     94,965     96,189     96,862  
    Loans receivable, net   2,996,259     3,087,914     3,161,925     3,226,877     3,279,708  
    Deposits   2,750,858     2,724,580     2,935,239     2,991,659     2,979,080  
    Borrowings   498,322     533,466     510,710     510,573     510,435  
    Stockholders’ equity   323,925     328,113     320,732     320,131     314,055  
    Book value per common share1 $ 17.54   $ 17.50   $ 17.17   $ 17.24   $ 17.10  
    Tangible book value per common share2 $ 17.23   $ 17.19   $ 16.86   $ 16.93   $ 16.79  
               
      Operating data by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands, except for per share amounts)
    Net interest income $ 22,194   $ 23,045   $ 23,639   $ 23,143   $ 23,922  
    Provision for credit losses   4,154     2,890     2,438     2,088     1,927  
    Non-interest income (loss)   938     3,127     (3,234 )   2,109     3,228  
    Non-interest expense   14,367     13,929     13,987     14,838     16,568  
    Income tax expense   1,339     2,685     1,163     2,460     2,593  
    Net income $ 3,272   $ 6,668   $ 2,817   $ 5,866   $ 6,062  
    Net income per diluted share $ 0.16   $ 0.36   $ 0.14   $ 0.32   $ 0.35  
    Common Dividends declared per share $ 0.16   $ 0.16   $ 0.16   $ 0.16   $ 0.16  
               
      Financial Ratios(3)
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
    Return on average assets   0.36 %   0.72 %   0.30 %   0.61 %   0.63 %
    Return on average stockholders’ equity   4.04 %   8.29 %   3.52 %   7.46 %   7.91 %
    Net interest margin   2.53 %   2.58 %   2.60 %   2.50 %   2.57 %
    Stockholders’ equity to total assets   9.00 %   9.08 %   8.45 %   8.32 %   8.19 %
    Efficiency Ratio4   62.11 %   53.22 %   68.55 %   58.76 %   61.02 %
               
      Asset Quality Ratios
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands, except for ratio %)
    Non-Accrual Loans $ 44,708   $ 35,330   $ 32,448   $ 22,241   $ 18,783  
    Non-Accrual Loans as a % of Total Loans   1.48 %   1.13 %   1.01 %   0.68 %   0.57 %
    ACL as % of Non-Accrual Loans   77.8 %   98.2 %   108.6 %   155.4 %   178.9 %
    Individually Analyzed Loans   83,399     66,048     60,798     65,731     54,019  
    Classified Loans   152,714     98,316     87,033     97,739     85,727  
               
    (1) Calculated by dividing stockholders’ equity, less preferred equity, to shares outstanding.
    (2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
    (3) Ratios are presented on an annualized basis, where appropriate.
    (4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
      Recorded Investment in Loans Receivable by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands)
    Residential one-to-four family $ 239,870   $ 241,050   $ 242,706   $ 244,762   $ 248,295  
    Commercial and multi-family   2,246,677     2,296,886     2,340,385     2,392,970     2,434,115  
    Construction   135,434     146,471     173,207     180,975     192,816  
    Commercial business   342,799     371,365     375,355     378,073     372,202  
    Home equity   66,769     67,566     66,843     65,518     66,331  
    Consumer   2,235     2,309     2,053     2,847     3,643  
      $ 3,033,784   $ 3,125,647   $ 3,200,549   $ 3,265,145   $ 3,317,402  
    Less:          
    Deferred loan fees, net   (2,736 )   (3,040 )   (3,381 )   (3,705 )   (4,086 )
    Allowance for credit losses   (34,789 )   (34,693 )   (35,243 )   (34,563 )   (33,608 )
               
    Total loans, net $ 2,996,259   $ 3,087,914   $ 3,161,925   $ 3,226,877   $ 3,279,708  
               
      Non-Accruing Loans in Portfolio by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands)
    Residential one-to-four family $ 1,387   $ 410   $ 350   $ 429   $ 270  
    Commercial and multi-family   32,973     27,693     27,796     12,627     8,684  
    Construction   586     586     586     3,225     4,292  
    Commercial business   10,530     6,498     3,673     5,916     5,491  
    Home equity   231     123     43     44     46  
    Consumer   –     20     –     –     –  
    Total: $ 45,707   $ 35,330   $ 32,448   $ 22,241   $ 18,783  
               
      Distribution of Deposits by quarter
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands)
    Demand:          
    Non-Interest Bearing $ 520,387   $ 528,089   $ 523,816   $ 531,112   $ 536,264  
    Interest Bearing   553,731     527,862     549,239     552,295     564,912  
    Money Market   395,004     366,655     371,689     361,791     370,934  
    Sub-total: $ 1,469,122   $ 1,422,606   $ 1,444,744   $ 1,445,198   $ 1,472,110  
    Savings and Club   252,491     255,115     258,680     272,051     284,273  
    Certificates of Deposit   1,029,245     1,046,859     1,231,815     1,274,410     1,222,697  
    Total Deposits: $ 2,750,858   $ 2,724,580   $ 2,935,239   $ 2,991,659   $ 2,979,080  
      Reconciliation of GAAP to Non-GAAP Financial Measures by quarter
               
      Tangible Book Value per Share
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands, except per share amounts)
    Total Stockholders’ Equity $ 323,925   $ 328,113   $ 320,732   $ 320,131   $ 314,055  
    Less: goodwill   5,253     5,253     5,253     5,253     5,253  
    Less: preferred stock   24,723     29,763     28,403     27,733     25,043  
    Total tangible common stockholders’ equity   293,949     293,097     287,076     287,145     283,759  
    Shares common shares outstanding   17,063     17,048     17,029     16,957     16,904  
    Book value per common share $ 17.54   $ 17.50   $ 17.17   $ 17.24   $ 17.10  
    Tangible book value per common share $ 17.23   $ 17.19   $ 16.86   $ 16.93   $ 16.79  
               
      Efficiency Ratios
      Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023
      (In thousands, except for ratio %)
    Net interest income $ 22,194   $ 23,045   $ 23,639   $ 23,143   $ 23,922  
    Non-interest income (loss)   938     3,127     (3,234 )   2,109     3,228  
    Total income   23,132     26,172     20,405     25,252     27,150  
    Non-interest expense   14,367     13,929     13,987     14,838     16,568  
    Efficiency Ratio   62.11 %   53.22 %   68.55 %   58.76 %   61.02 %
    CONTACT: MICHAEL SHRINER,
      PRESIDENT & CEO
      JAWAD CHAUDHRY,
      EVP & CFO
      (201) 823-0700

    The MIL Network –