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  • MIL-OSI USA: Durbin Highlights Bill To Halt U.S. Investment In Venezuela’s Energy Sector Until Legitimate 2024 Election Results Are Elected

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin
    January 27, 2025
    WASHINGTON – In a speech on the Senate floor, U.S. Senate Democratic Whip Dick Durbin (D-IL) today highlighted a bill he introduced terminating all U.S. petroleum cooperation and petroleum-related trade with Venezuela until the legitimate results of the recent Venezuelan election are respected. On July 28, 2024, more than 10 million Venezuelans peacefully voted in the presidential election, with results meticulously compiled by credible election monitors showing an overwhelming victory for opposition candidate, Edmundo González, over President Nicolás Maduro. The regime issued an arrest warrant forGonzález and brazenly refused to swear him in as President on January 10, the country’s Inauguration Day. The Maduro regime currently uses oil revenues dependent on U.S. involvement to maintain its police state. Durbin filed the bill as an amendment to the annual defense authorization bill last year. A bipartisan companion bill was reintroduced in the House earlier this month by Representatives Debbie Wasserman-Schultz (D-FL-25) and Maria Salazar (D-FL-27).  
    “In 2018, I had the opportunity to visit Venezuela—it was a once prosperous, albeit imperfect, democracy suffering from terrible economic and political decline. I told then-President Maduro that if he rigged the upcoming election, Venezuelans would be more isolated and endure unnecessary suffering. It didn’t stop him for a minute. He went ahead with a discredited election. The result was as predicted. The economy of Venezuela started descending into chaos. People were literally starving. There was an exodus of millions of people from Venezuela,” Durbin said.
    “Last July, Venezuela held another presidential election during which the regime arbitrarily blocked leading opposition candidates from the ballot and tried to undermine the electoral process. Nonetheless, more than 10 million Venezuelans actually voted and the results were meticulously documented by credible election monitors showed a sweeping victory for Edmundo González—his opponent,” said Durbin. “I was glad to see that one of newly confirmed Secretary of State Rubio’s first calls was to President-elect González.”
    “Yet, despite his clear victory, the Maduro Administration has refused to give up the office of presidency and refused to recognize the legitimate election result. …. [it] announced that it had won actually… which is becoming a common trick by these dictators, and refused to swear him in on their inauguration day,” Durbin said. “So, today, I am reintroducing a short, simple bill terminating all U.S. petroleum cooperation and related trade with Venezuela until the legitimate results of the election are respected. It’s pretty simple—the entrenched regime clings to power using oil revenues dependent on the U.S. Under my bill, that will end. President Trump and Secretary Rubio could also take this step right away without my legislation.”
    Durbin concluded, “Lastly, I appeal to our democratic allies in the region, including the democracies of the Caribbean, to stand resolute in defense of a sweeping and clear vote by their exhausted Venezuelan neighbors. They cannot sit idly by for another six years of regime-inflicted suffering and collapse in Venezuela.”
    Durbin traveled to Venezuela in April 2018, during which time he met with then National Assembly Member Juan Guaidó as well as Nicolás Maduro, warning him that pursuing a sham election the following month would further isolate his autocratic regime.
    Video of Durbin’s remarks on the Senate floor is available here.
    Audio of Durbin’s remarks on the Senate floor is available here.
    Footage of Durbin’s remarks on the Senate floor is available here for TV Stations.
    -30-

    MIL OSI USA News –

  • MIL-OSI USA: Senators Marshall, Johnson Introduce Legislation To Require Federal Agencies to Make Regulatory Guidance Publicly Accessible

    US Senate News:

    Source: United States Senator for Kansas Roger Marshall

    Washington, D.C. –  U.S. Senators Roger Marshall, M.D., Ron Johnson (R-WI) and 14 of their Senate colleagues introduced the Guidance Out Of Darkness (GOOD) Act. The GOOD Act requires federal agencies to publish their regulatory guidance on the Internet in an easily accessible location. This bill will help impacted entities — including small businesses, workers and households — be fully informed of regulatory requirements in order to take any necessary actions for compliance.
    “There must be full transparency between government bureaucrats and the American taxpayers who pay their salaries. Requiring federal agencies to publish their regulatory guidance on the internet in an easily accessible location should be a no brainer,” said Senator Marshall. “I’m shocked we’ve come far without this basic step being taken, I am proud to join Senator Johnson in introducing the GOOD Act, which would introduce common-sense reforms to our governing system to improve transparency and efficiency.”
    Senators Marshall and Johnson were joined by Senators Kevin Cramer (R-ND), Joni Ernst (R-IA), James Lankford (R-OK), Mike Lee (R-UT), Cynthia Lummis (R-WY), Rick Scott (R-FL), Thom Tillis (R-NC), Marsha Blackburn (R-TN), John Hoeven (R-ND), Ted Budd (R-NC), Eric Schmitt (R-MO), Tim Sheehy (R-MT), and James Risch (R-ID). 
    The full text of the legislation can be found here.

    MIL OSI USA News –

  • MIL-OSI USA: SCHUMER: STANDING AT ALTON’S RESTAURANT IN CHEEKTOWAGA WITH EGG & GROCERY PRICES RISING DUE TO BIRD FLU OUTBREAK CALLS ON FEDS TO SURGE ‘BIOSECURITY’ AND GET ALL HANDS ON DECK TO HELP FARMS CONTAIN…

    US Senate News:

    Source: United States Senator for New York Charles E Schumer
    Schumer Says Egg Prices Already Increased $2 Per Dozen In Last Two Months And Could Get Worse If New Admin Doesn’t Surge Efforts To Beat Bird Flu; Farmers Do Not Have Resources To Contain Bird Flu Alone, Says Feds Must Ramp Up Efforts NOW Before Prices Climb Higher
    With Millions Of Birds Impacted Last Month, And More Bird Flu Being Found In NY Just Last Week, Schumer Says Biosecurity And Increased Fed Response Is Key To Isolate & Contain Bird Flu And Lower Grocery Costs
    Schumer: With New Admin, We Can’t Afford To Scramble To Keep Bird Flu Mitigation Going—Or Egg & All Grocery Prices Could Surge
    Amid the increasing price of eggs in Western NY and across Upstate New York amid the bird flu outbreak, U.S. Senator Chuck Schumer today stood at Cheektowaga’s beloved Alton’s Restaurant and called on HHS and the USDA to surge funding and get all hands on deck for coordinated federal response to stop the spread causing sky-rocketing egg prices and lower costs for families, diners, and local bakeries.
    “Alton’s has been a staple in Western New York for over 40 years, but recently restaurants like Alton’s and families in Buffalo have been shell-shocked by higher egg and grocery prices. Egg prices are skyrocketing because of bird flu, driving costs up for families, farms, diners, and small businesses. In November, a dozen eggs cost about $4 in NY which is already high, but now the average is nearly $6, and with bird flu getting worse this problem could quickly spiral into a crisis,” said Senator Schumer. “Last year I secured millions to help contain this disease and we need the new administration to surge biosecurity efforts to beat back bird flu. We need a robust, coordinated federal response to crack down on bird flu and I am committed to working in a bipartisan way with the new administration to get grocery prices lower and that starts with getting a handle on bird flu. The health of our livestock, our restaurants, and Western NY families’ wallets depend on it.”
    For decades, Alton’s has been a beloved cornerstone of Western New York’s culinary scene, serving hearty Greek-American comfort food for breakfast, lunch, and dinner. Since opening its doors in 1982, the Cheektowaga-based restaurant, owned by Milton Koutsandreas, has built a loyal following with its warm atmosphere and home-cooked meals. However, like many local businesses across the region, Alton’s has felt the strain of rising costs, particularly the significant increase in egg prices. Just a few months ago they were able to get 30 dozen eggs for $50 a case, and now the diner is seeing prices climb to $180 a case.
    Some grocery stores are limiting the number of egg cartons consumers can purchase, and the price of eggs in New York State has increased from $4.23 in November to $6.10 as of January 10 according to the U.S. Department of Agriculture. Roughly 8% of egg supply has been affected by the avian flu nationwide, and experts say prices could increase an additional 20% in 2025 if the bird flu keeps spreading.
    Schumer added, “I’ll be pushing for more federal resources in the upcoming budget bill to stop the bird flu, and the feds need to continue prioritizing biosecurity, get all hands on deck for containing bird flu. This will give farmers the resources to isolate, sanitize, and purchase the protective equipment they need.”
    More than 20 million egg-laying chickens died last quarter because of bird flu, and last week Long Island’s last commercial duck farm was forced to kill thousands of ducks after health officials detected cases of bird flu, forcing the farm to cease operations. An outbreak in Georgia last week showed how the virus can spread, and Schumer highlighted the need for federal coordination to prevent further spread and support farms in New York and across the country. With infections across the country, there have been fewer eggs available, and decreased supply has led to increasing prices at grocery stores.
    “As a restaurant manager, I know firsthand how crucial affordable ingredients are to keeping our business running and our customers happy. Eggs are a staple in so many of the dishes we serve, and rising prices significantly affect our costs and prices – something we always try to avoid,” said Alton’s Restaurant General Manager Audrea Arricale. “I want to thank Senator Chuck Schumer for taking the issue of excessively high food costs seriously.”
    “Stable egg prices are critical for the success of Cheektowaga’s local businesses, especially restaurants and grocery stores, which are already navigating the challenges of inflation,” said Cheektowaga Chamber of Commerce President and CEO James Burns. “Senator Schumer’s push to strengthen biosecurity and support farmers in fighting bird flu is essential to keeping costs down for both businesses and families in our community.”
    “I thank Senator Schumer for standing up for basic, common sense public health efforts. As the COVID-19 pandemic showed, we need everyone, from global partners and academia to local health departments in the fight together against illnesses like H5N1 highly pathogenic avian flu, which is a looming threat to the public’s health, our economy and our food security,” said Erie County Executive Mark Poloncarz.
    “I thank Senator Schumer for his efforts to advance a practical solution to an issue that has a concrete impact on all of us. Resources are already in the federal budget and should be expended to address the issue,” said Cheektowaga Town Supervisor Brian Nowak.
    Schumer said that the federal government must invest in biosecurity efforts including isolation, sanitation, and more personal protective equipment (PPE). The senator called on the U.S. Department of Agriculture (USDA), U.S. Department of Health and Human Services (HHS), Centers for Disease Control and Prevention, and National Institutes of Health, among other federal agencies, to engage in a coordinated federal response to manage this bird flu outbreak. HHS invested $300+ million dollars before the new administration took office and the USDA has said that preparedness is the key to keeping Americans healthy and our country safe. Schumer said that as Congress continues to negotiate the Farm Bill, which regulates the federal budget for agricultural-related programs, the new Congress and the new administration must continue to prioritize investing in helping farms detect and contain bird flu.
    “The bottom-line here is that we do not want farmers, the feds, or consumers at the grocery store to scramble with this threat of bird flu sustaining into 2025. We want to try and keep grocery prices in check, and that means keeping the new Congress and the new administration laser-focused on ending this latest bird flu outbreak,” said Schumer.
    Under the Biden administration, the CDC made plans to award approximately $111 million in funding to enhance our ability to monitor the bird flu at the local, state and national levels, including $103 million to increase monitoring of individuals exposed to infected animals, testing, and outreach to high-risk populations (such as livestock workers) and $8 million to manufacture, store, and distribute influenza diagnostic test kits for virologic surveillance. The NIH made plans to award approximately $11 million in funding for additional research into potential medical countermeasures for the bird flu.

    MIL OSI USA News –

  • MIL-OSI United Kingdom: AI sensors on fridges and kettles helping vulnerable people to live independently

    Source: United Kingdom – Executive Government & Departments 2

    Councils are leveraging AI and technology to enhance public services, save money, and improve living standards, aligning with government plans for £45 billion in efficiency savings under the Plan for Change.

    10 records of how local councils use AI to help local residents and save money.

    • From estimating budgets and improving care, to getting people new bins more quickly, new records reveal how councils are using AI and tech to help local residents and save money
    • Follows government announcing plans to put technology to work across public services, targeting £45 billion in efficiency savings
    • Innovations demonstrate the potential for AI and technology to improving public services and living standards, delivering on Plan for Change

    Local councils are picking up the AI mantle to help unleash this revolutionary technology across the UK – to turbocharge the Plan for Change and deliver a decade of national renewal.

    The latest transparency data – published by the Department for Science, Innovation and Technology (DSIT) – shows that councils are wasting no time in putting the weight of the public sector behind AI and finding new and innovative ways to make it work for working people.

    It shows that AI is being used to identify when a pensioner has had a fall, to stop people fall into rent arrears, to map which houses need loft insulation, to give people bigger bins, and – instead of taking people’s jobs – to help them find work in social care.

    The publication of records follows the Technology Secretary setting out a blueprint for how his department will help the public sector use technology to transform public services, targeting £45 billion in potential productivity savings.

    The plan will see a new team, housed in the Department for Science, Innovation and Technology (DSIT), cut across barriers to join up public services, including those provided by local councils, so people do not have to tell dozens of organisations the same thing.

    The team will first start by looking at services used by people with long term health conditions across organisations like the NHS, Department for Work and Pensions, local councils and more.

    As the digital centre of government, the Department for Science, Innovation and Technology (DSIT) will champion innovation, like that shown by the London Borough of Sutton, and help to spread it around the country so it can be used to improve public services and drive the Government’s Plan for Change.

    Speaking from a trip to see the Tech Enabled Care solution in Sutton, AI and Digital Government Minister Feryal Clark said:

    AI has immense potential to make our lives easier and improve public service. The technology we are together sharing with the public today includes shining examples of innovation that does everything from speeding up crucial applications for bigger bins, to helping people live independently.

    Being transparent with the detail of how we are putting AI to work in public services is crucial to our plans to use technology to improve public services, which is a key part of our Plan for Change.

    Other initiatives include AI-enabled fridge sensors and connected kettles are being used to detect changes in the daily routines of vulnerable people that could indicate a decline in health and ultimately lead to a fall, thanks to technology used by the London Borough of Sutton.

    Helping people who would otherwise need additional care, the technology uses sensors to spot changes in behaviour, like missed meals, a skipped cup of tea or whether a door has been left open for too long, before AI analysis is used to detect whether something might be wrong. An alert is then sent to close family members or carers so they can stop by to check on how they are and offer additional support if needed.

    Details of the technology, which was developed by Loughborough tech company The Access Group and Medequip Connect, have been released today alongside nine other public sector organisations setting out how they use AI and algorithmic tools. 

    Councillor Marian James, Lead Member for People Services at the London Borough of Sutton said:

    Research shows that people live well for longer when they can maintain their sense of independence and dignity by remaining in their own home. That’s why we are using the latest digital technology to enable our residents to continue living their lives independently within the comfort of their own home, but with the peace of mind that support is available when they need it. 

    The pressures facing our adult social care services show no sign of easing, so I’m proud the Council is taking this forward-thinking approach to find solutions that will reduce the pressure on the system, as well as being beneficial for our residents.

    Among the records published today, West Berkshire Council also shared how it is using technology to help residents get a bigger black bin more quickly, if they are eligible.

    A tool, built entirely in-house by the council, takes in information from an online application form, like the number of people living in a home, and the number of children in nappies, to automatically rule out people who might not be eligible for a bigger bin.

    Though, people whose applications are declined can still appeal the crucial decision, and have a human quickly look at their request. By speeding up the processing of requests, it makes sure families with newborns can get a bigger bin to handle the increased waste much more quickly.

    Other records published today detail chatbots used to help people apply for social care qualifications in Wales, and algorithmic tools to help councils more accurately predict the cost of adult care, so they can better manage their budgets.

    Minister of State for Care, Stephen Kinnock said:

    Around a third of adults over 65 will have at least one fall a year. This can be devastating and doesn’t just risk broken bones, but a loss of confidence and independence in older people.

    I am determined that we harness cutting-edge technology to protect them – and this groundbreaking AI will help to stop accidents before they happen and cut down on hospital visits.

    Our Plan for Change will drive forward this kind of innovation, transform the NHS, and ensure people can live safely and independently.

    Andy Sparkes, Managing Director, Local Government, The Access Group, said:

    We’re delighted to support Sutton Council’s ambitious approach to AI and technology-enabled care, which offers a personalised service that enables individuals to live independently for longer.

    AI and machine learning have the potential to enable all local authorities to shift their approach to care from the traditional reactive model to a more proactive approach that allows for early intervention. By scaling these proven examples of success, councils can reduce the pressure on current services and empower residents to remain in their homes for as long as possible.

    Notes to editors

    Full list of transparency records in this bundle.

    Dorset City Council

    Formulate for Adult Care – estimates financially sustainable personal budgets for adults with eligible care and support needs.

    Camden Council

    RentSense AI Tool Pilot – analyses council housing tenants’ rent transactions to prioritise arrears cases for management.

    Ealing Council

    Adult Social Care Annual Financial Expenditure Forecast – forecasts annual adult social care expenditure more accurately to make it easier for services to allocate budgets.

    Greater London Authority

    London Building Stock Model 2 – predicts missing information about London’s properties to help inform housing improvement programmes and decisions that reduce carbon emissions and energy bills.

    London Borough of Sutton

    Access Assure, Technology Enabled Care (TEC) – helps residents live independently by monitoring their data and alerting carers and family/friends where necessary.

    Social Care Wales

    Qualifications Chatbot – helps anyone with an interest in social care qualifications find appropriate qualification and information to work in the social care, early years, and childcare sector in Wales.

    Warwickshire County Council

    Domestic EPC Estimates – estimates domestic energy performance certificates (EPC) of households that have a missing EPC to help support better outcomes for citizens.

    West Berkshire Council

    Apply for a Larger Rubbish Bin – assesses whether applicants for a larger household waste container meet the minimum threshold set out in the council’s policy to provide a faster, improved service.

    London Borough of Barnet

    Ami Chatbot – a chatbot on the council’s website to provide better customer experience.

    Bristol City Council

    Not in Education, Employment, or Training (NEET) – assesses the risk of an individual becoming NEET to enable safeguarding professionals deliver timely and targeted interventions and support.

    DSIT media enquiries

    Email press@dsit.gov.uk

    Monday to Friday, 8:30am to 6pm 020 7215 300

    Updates to this page

    Published 28 January 2025

    MIL OSI United Kingdom –

  • MIL-OSI China: What to watch about China’s Spring Festival travel rush

    Source: People’s Republic of China – State Council News

    BEIJING, Jan. 24 — Chunyun, the world’s largest annual human migration, officially kicked off on Jan. 14 in China ahead of the Spring Festival. Authorities predict travel volumes will hit new highs during the 40-day travel rush.

    The latest episode of the China Economic Roundtable, an all-media talk show hosted by Xinhua News Agency, spotlighted key trends shaping this year’s travel season, including record-breaking travel numbers, booming tourism, transformative technologies, the rise of electric vehicles and a surge in inbound travel.

    TRAVEL PEAK

    The annual travel frenzy is driven by the movement of people working, studying or living far from their hometowns as they head back to celebrate China’s most important festival.

    It is estimated that 9 billion passenger trips will be made, with car journeys accounting for 80 percent. Railway trips are projected to surpass 510 million, while air passenger volume will likely exceed 90 million.

    Faced with such a massive travel demand, transportation systems are undergoing their annual tests. “Safety remains our top priority,” Wang Xiuchun, an official of the Ministry of Transport, said on the show.

    Rail and aviation authorities have deployed robust safety measures to ensure secure and efficient operations, including addressing weather-related challenges and improving risk prevention.

    TOURISM TAKING OFF

    While family reunions remained the primary reason for travel, tourism saw a notable surge this year.

    Wang predicted a 25-percent increase in travel for leisure purposes. Popular destinations include tropical hotspots like Hainan and Yunnan, as well as winter wonderlands in Heilongjiang, Jilin and Xinjiang, said Shang Kejia, an official of the Civil Aviation Administration of China.

    Local tourism authorities are seizing the opportunity to attract visitors with unique offerings. Guangzhou’s Flower City Square is holding a spectacular lantern festival, while Tianjin’s cruise market is already bustling with holiday travelers. Harbin, the host of the 9th Asian Winter Games, is blending winter sports with holiday festivities, a combination that is a real boost to the ice-and-snow economy.

    “The way people celebrate the Chinese Lunar New Year is becoming more diverse and enriched, reflecting changing travel habits,” said Shang.

    TECHNOLOGY RESHAPING TRAVEL

    Technology has also reshaped the Spring Festival migration. Online purchases now account for over 93 percent of railway ticket sales, said Zhu Wenzhong from China State Railway Group Co., Ltd.

    As of 9 a.m. Tuesday, 12306, the railway booking platform, had sold 235 million tickets since Dec. 31. Travelers no longer need paper tickets, as ID cards grant seamless access to trains. The app also offers a wide range of additional services like hotel bookings, car rentals and food delivery.

    Beyond ticketing, innovations like smart inspection robots, drone-assisted traffic monitoring, and highway ice warning systems are also helping ensure safer and smoother journeys.

    RISE OF ELECTRIC VEHICLES

    New energy vehicles (NEVs) are joining the chunyun in growing numbers.

    NEVs accounted for 15.9 percent of road trips during the National Day holiday in October last year, and their share is expected to rise further this Spring Festival, experts said.

    To meet the rising charging demand, the country has accelerated the construction of charging infrastructure. By the end of 2024, 98 percent of highway service areas had charging facilities, with 35,000 charging stations in place. “Aside from a few remote, high-altitude areas, nearly all service areas now offer charging options,” said Hua Lei, an official with the Ministry of Transport.

    In 2024, China’s NEV production and sales hit record highs, exceeding 12.8 million units, which solidified the country’s position as the global NEV leader for a tenth consecutive year.

    CHINA TRAVEL

    Another notable highlight this year is the surge in inbound tourism. According to preliminary statistics, ticket bookings for inbound flights during the chunyun period surged 47 percent year on year, Shang said.

    “China Travel” has become a trending topic, globally. In 2024, 64.88 million foreign visitors traveled to the country, an 82.9 percent increase from the previous year. In particular, visa-free entries involved 20.12 million visits, more than double that of 2023.

    China’s commitment to opening-up is driving this tourism boom.

    Expanded visa policies, such as mutual visa waivers with 25 countries, unilateral visa-free policies for 38 countries, and transit visa exemptions for 54 countries, are making it easier for tourists to explore China.

    Additionally, improvements in payment systems, accommodations and public transport also ensure foreign visitors can fully enjoy China’s cultural and technological charms, experts said.

    MIL OSI China News –

  • MIL-OSI China: Chinese medical team provides free health checkups to rural community in South Sudan

    Source: People’s Republic of China – State Council News

    Chinese medical team provides free health checkups to rural community in South Sudan

    JUBA, Jan. 27 — The 12th batch of the Chinese medical team recently visited Juba Nabari, a local village north of Juba, the capital of South Sudan, to provide free medical checkups and treatment to hundreds of ailing patients.

    Fauzia Lotombiko, a 50-year-old mother of eight, was one of several patients who braved the sweltering heat to seek treatment under a mango shed. The Chinese doctors provided Lotombiko with medication to regulate her blood pressure and relieve some back pain.

    Since 2014, Lotombiko has endured immense back pain after a fall, and her condition worsened when she was later diagnosed with high blood pressure. This condition has robbed her of the ability to do normal chores and forced her to stay at home.

    “The arrival of the Chinese doctors in my home village gave me hope of recovery. In addition to giving me essential medicines, they also gave me advice,” Lotombiko said Saturday.

    James Jada, 41, brought his daughter to the Chinese medical team. He said he had given up trying to find proper treatment for her severe flu and cough, which had been going on since last November.

    Jada said he was hopeful that his daughter’s condition would improve with the medication he was given to treat her. The doctors did a complete physical exam on Jada’s daughter before recommending the medication.

    “I thank the Chinese doctors for taking care of my daughter. I hope that my daughter’s condition will improve, and I believe that healing is not instantaneous, but a process,” said Jada.

    Pierina Abraham Norah, a 50-year-old woman who suffered from severe back and joint pain, was visited at home by Chinese doctors to assess her condition. She thanked the Chinese doctors for their compassion for the needy in her community.

    Natalie Kon Justine, Abraham’s son, who organized the arrival of the Chinese medical team to conduct outreaches in his village, commended them for reducing the burden of disease in his community.

    “This village has a good number of health clinics, but they are very expensive, and many citizens cannot easily afford the cost of treatment at these private health facilities around here,” Justine said. “This medical outreach has eased the burden of treatment for many families because the medicines provided by the Chinese doctors are effective.”

    Du Changyong, leader of the 12th batch of the Chinese medical team, said the visit to Juba Nabari was aimed at implementing the outcomes of the 2024 Beijing Summit of the Forum on China-Africa Cooperation and the program of “100 Medical Teams in 1,000 Villages” to provide medical services to people at the grassroots level.

    According to Du, the 12th batch of the Chinese medical team arrived in South Sudan in September 2024, and they have already served 6,300 outpatients, carried out 64 surgical operations, and treated 441 patients in critical condition. The team has also provided traditional Chinese medicine treatment to 1,200 patients, carried out laboratory tests on 850 patients, provided image testing to 800 patients, and introduced the new medical technology used at the Juba Teaching Hospital.

    In early December 2024, the 12th batch of the Chinese medical team provided medical outreach services to hundreds of patients in Lobonok town on the outskirts of Juba.

    MIL OSI China News –

  • MIL-OSI USA: New Report Highlights Transformational First Year of Colorado Universal Preschool, Reaching Nearly 70% of Eligible Four-Year-Olds

    Source: US State of Colorado

    DENVER — The Colorado Universal Preschool Annual Report, submitted to the Colorado Legislature as part of SMART Act requirements, highlights how the program’s inaugural year transformed early childhood education by providing high-quality, voluntary preschool to every child in the year before kindergarten. Read the report here. 

    “Free preschool is saving Colorado families an average of $6,100 every single year and helping our kids get the best possible start in life. This report shows that we are reaching the vast majority of young learners and we are committed to continue serving even more students,” said Governor Jared Polis. 

    In its first year, Colorado Universal Preschool served 43,479 children, reaching nearly 69% of the state’s eligible four-year-olds—a milestone that positions Colorado among the top states for preschool access nationwide. 

    “This success underscores Colorado’s commitment to children and families,” said Dr. Lisa Roy, Executive Director of CDEC. “Universal preschool is strengthening families and providing a solid foundation for our youngest learners to thrive.” 

    Key Wins for Colorado Families Enrolled in Colorado Universal Preschool in 2023-24:

    • Lowering Families’ Costs: The program saved families an average of $6,100 annually on preschool expenses, providing critical financial relief for other costs. 
    • Expanding Family Choice: With more than 1,900 providers statewide, families had the flexibility to choose from community-based, school-based, and home-based preschool settings. 
    • Serving Diverse Needs: Nearly 50% of children came from low-income households, with over 11,000 children also classified as being multilingual, experiencing ‘homelessness’, or having a disability. 
    • Strengthening the Sector: The program distributed $239.4 million to providers, enhancing sustainability and incentivizing sector growth. 

    “The impact of Colorado’s Universal Preschool program is profound,” said Michael Gaal, Superintendent of Colorado Springs School District 11. “District 11 is proud to be the largest provider of Universal Preschool serving more than 1000 preschoolers in El Paso County, with 31 of our 33 elementary schools offering the program. By investing in early childhood education, Colorado is setting the foundation for success. This program will not only benefit our students today, but its impact will continue to be felt for years to come.” 

    The report outlines ongoing challenges, including provider shortages in certain regions and workforce gaps. In response, the program has expanded full-day preschool (30 hours/week) for children in poverty and is launching a Provider Resource Bank to improve quality and accessibility statewide.

     “Colorado Universal Preschool is building a national model of excellence while addressing local needs,” Dr. Roy added. “We look forward to partnering with families, providers, and communities to create even greater opportunities for Colorado’s children.” 

    Apply Now for The 2025-26 School Year Submit an application by February 5, 2025 to be included in the first family-to-provider matching round. Learn more, explore preschool options, and apply online at UPK.Colorado.Gov. 

    Assistance is available: 

    💻Visit: Help.Upk.Colorado.Gov 

    📧Email: universalpreschool@state.co.us 

    📲Call: 303-866-5223 (Monday–Friday, 8 a.m.–8 p.m. MST). Interpreters available in 100+ languages.

    MIL OSI USA News –

  • MIL-OSI Security: Rapid City Man Sentenced to 30 Years in Federal Prison for Conspiracy to Distribute a Controlled Substance Resulting in Death

    Source: Office of United States Attorneys

    RAPID CITY – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance Resulting in Death.

    Curtis Cummings, age 39, was sentenced to 30 years in federal prison, followed by five years of supervised release, restitution, and a $100 special assessment to the Federal Crime Victims Fund.

    Cummings was indicted by a federal grand jury in June 2023. He was found guilty following a three-day jury trial on November 7, 2024.

    The conviction arose from a conspiracy to distribute fentanyl operating in Rapid City, South Dakota. Cummings and his wife, Katey McGruder, obtained large amounts of fentanyl from a source in Colorado on a weekly basis. They would bring the fentanyl back to their Rapid City home where it was further distributed by Christina Sanchez and other conspirators. On April 26, 2022, Cummings and McGruder provided fentanyl to Sanchez, who provided the fentanyl to Wyatt Nygaard. Nygaard then provided the fentanyl to the victim who overdosed and died in the parking lot of a convenience store within minutes of ingesting the fentanyl.

    This case was investigated by the Unified Narcotics Enforcement Team (UNET). UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard.

    Assistant U.S. Attorneys Meghan Dilges and Edward Tarbay prosecuted the case. Nygaard was previously sentenced to over 23 years in federal prison. McGruder and Sanchez were previously sentenced to 20 years each of federal imprisonment.

    Cummings was immediately remanded to the custody of the U.S. Marshals Service following his sentencing.  

    MIL Security OSI –

  • MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR SECOND QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.23 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR TUESDAY, JANUARY 28, AT 9:30 AM CENTRAL TIME

    Source: GlobeNewswire (MIL-OSI)

    Poplar Bluff, Missouri, Jan. 27, 2025 (GLOBE NEWSWIRE) —

    Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the second quarter of fiscal 2025 of $14.7 million, an increase of $2.5 million, or 20.2%, as compared to the same period of the prior fiscal year. The increase was attributable to increases in net interest income and noninterest income, partially offset by increases in noninterest expense, income taxes, and provision for credit losses. Preliminary net income was $1.30 per fully diluted common share for the second quarter of fiscal 2025, an increase of $0.23 as compared to the $1.07 per fully diluted common share reported for the same period of the prior fiscal year.

    Highlights for the second quarter of fiscal 2025:

    • Earnings per common share (diluted) were $1.30, up $0.23, or 21.5%, as compared to the same quarter a year ago, and up $0.20, or 18.2% from the first quarter of fiscal 2025, the linked quarter.
    • Annualized return on average assets (“ROAA”) was 1.21%, while annualized return on average common equity was 11.5%, as compared to 1.07% and 10.6%, respectively, in the same quarter a year ago, and 1.07% and 10.0%, respectively, in the first quarter of fiscal 2025, the linked quarter.
    • Net interest margin for the quarter was 3.36%, as compared to 3.25% reported for the year ago period, and 3.37% reported for the first quarter of fiscal 2025, the linked quarter. Net interest income increased $3.7 million, or 10.6% compared to the same quarter a year ago, and increased $1.5 million, or 4.0%, from the first quarter of fiscal 2025, the linked quarter.
    • Noninterest income was up 21.7% for the quarter, as compared to the same quarter a year ago, primarily as a result of losses realized on sale of available-for-sale (AFS) securities in the prior comparable quarter, and down 4.3% from the first quarter of fiscal 2025, the linked quarter.
    • Gross loan balances as of December 31, 2024, increased by $60.5 million, or 1.5%, as compared to September 30, 2024, and by $295.1 million, or 7.9%, as compared to December 31, 2023.
    • Cash equivalent balances as of December 31, 2024, increased by $70.5 million as compared to September 30, 2024, but decreased by $71.0 million as compared to December 31, 2023.
    • Deposit balances increased by $170.5 million, or 4.2%, as compared to September 30, 2024, and by $225.1 million, or 5.6%, as compared to December 31, 2023. The increase compared to the linked quarter was primarily due to seasonal inflows of deposits from agricultural and public unit depositors.
    • Tangible book value per share was $38.91, having increased by $4.26, or 12.3%, as compared to December 31, 2023.
    • The current period effective tax rate was 23.7%, as compared to 20.6% in the same quarter of the prior fiscal year. The effective tax rate for the December 31, 2024, quarter was elevated due a $380,000 adjustment of tax accruals attributable to completed merger activity.

    Dividend Declared:

    The Board of Directors, on January 21, 2025, declared a quarterly cash dividend on common stock of $0.23, payable February 28, 2025, to stockholders of record at the close of business on February 14, 2025, marking the 123rd consecutive quarterly dividend since the inception of the Company. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

    Conference Call:

    The Company will host a conference call to review the information provided in this press release on Tuesday, January 28, 2025, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 230612. Telephone playback will be available beginning one hour following the conclusion of the call through February 1, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 279309.

    Balance Sheet Summary:

    The Company experienced balance sheet growth in the first six months of fiscal 2025, with total assets of $4.9 billion at December 31, 2024, reflecting an increase of $303.4 million, or 6.6%, as compared to June 30, 2024. Growth primarily reflected increases in net loans receivable, cash and cash equivalents, and AFS securities.

    Cash and cash equivalents were a combined $146.1 million at December 31, 2024, an increase of $84.7 million, or 137.9%, as compared to June 30, 2024. The increase was primarily the result of strong deposit generation that outpaced loan growth and AFS securities purchases during the period. AFS securities were $468.1 million at December 31, 2024, up $40.2 million, or 9.4%, as compared to June 30, 2024.

    Loans, net of the allowance for credit losses (ACL), were $4.0 billion at December 31, 2024, increasing by $175.0 million, or 4.6%, as compared to June 30, 2024. The Company noted growth primarily in drawn construction, 1-4 family residential, commercial and industrial, agricultural production loan draws, owner occupied commercial real estate, and agriculture real estate loan balances. This was somewhat offset by a decrease in loans secured by non-owner occupied commercial real estate, multi-family property, and consumer loans. The table below illustrates changes in loan balances by type over recent periods:

                                             
    Summary Loan Data as of:      Dec. 31,        Sep. 30,        June 30,        Mar. 31,        Dec. 31,  
       (dollars in thousands)   2024     2024     2024     2024     2023  
                                             
    1-4 residential real estate   $ 967,196     $ 942,916     $ 925,397     $ 903,371     $ 893,940  
    Non-owner occupied commercial real estate     882,484       903,678       899,770       898,911       863,426  
    Owner occupied commercial real estate     435,392       438,030       427,476       412,958       403,109  
    Multi-family real estate     376,081       371,177       384,564       417,106       380,632  
    Construction and land development     393,388       351,481       290,541       268,315       298,290  
    Agriculture real estate     239,912       239,787       232,520       233,853       238,093  
    Total loans secured by real estate     3,294,453       3,247,069       3,160,268       3,134,514       3,077,490  
                                             
    Commercial and industrial     484,799       457,018       450,147       436,093       443,532  
    Agriculture production     188,284       200,215       175,968       139,533       146,254  
    Consumer     56,017       58,735       59,671       56,506       57,771  
    All other loans     3,628       3,699       3,981       4,799       7,106  
    Total loans     4,027,181       3,966,736       3,850,035       3,771,445       3,732,153  
                                             
    Deferred loan fees, net     (202 )      (218 )     (232 )     (251 )     (263 )
    Gross loans     4,026,979       3,966,518       3,849,803       3,771,194       3,731,890  
    Allowance for credit losses     (54,740 )     (54,437 )     (52,516 )      (51,336 )     (50,084 )
    Net loans   $ 3,972,239     $ 3,912,081     $ 3,797,287     $ 3,719,858     $ 3,681,806  
       

    Loans anticipated to fund in the next 90 days totaled $172.5 million at December 31, 2024, as compared to $168.0 million at September 30, 2024, and $140.5 million at December 31, 2023.

    The Bank’s concentration in non-owner occupied commercial real estate, as defined for regulatory purposes, is estimated at 316.9% of Tier 1 capital and ACL at December 31, 2024, as compared to 317.5% as of June 30, 2024, with these loans representing 41.0% of gross loans at December 31, 2024. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, retail stand-alone, and strip centers are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner-occupied office property types included 33 loans totaling $24.2 million, or 0.60% of gross loans at December 31, 2024, none of which were adversely classified, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

    Nonperforming loans (NPLs) were $8.3 million, or 0.21% of gross loans, at December 31, 2024, as compared to $6.7 million, or 0.17% of gross loans at June 30, 2024. Nonperforming assets (NPAs) were $10.8 million, or 0.22% of total assets, at December 31, 2024, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in the total dollar of NPAs reflects an increase in NPLs, which was largely offset by a reduction in other real estate owned due to property sales. The increase in NPLs was primarily attributable to the addition of three unrelated loans collateralized by single-family residential property, totaling $1.4 million.

    Our ACL at December 31, 2024, totaled $54.7 million, representing 1.36% of gross loans and 659% of NPLs, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of NPLs, at June 30, 2024. The Company has estimated its expected credit losses as of December 31, 2024, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. Qualitative adjustments in the Company’s ACL model were increased compared to June 30, 2024, due to various factors that are relevant to determining expected collectability of credit. The Company decreased the allowance attributable to classified hotel loans that have been slow to recover from the COVID-19 pandemic due to updated collateral appraisals, which provided a more favorable assessment than the Company’s prior period estimates. Additionally, provision for credit loss (PCL) was required due to loan growth in the second quarter of fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.02% (annualized) during the current period, as compared to 0.10% for the same period of the prior fiscal year.

    Total liabilities were $4.4 billion at December 31, 2024, an increase of $279.7 million, or 6.8%, as compared to June 30, 2024.

    Deposits were $4.2 billion at December 31, 2024, an increase of $267.6 million, or 6.8%, as compared to June 30, 2024. The deposit portfolio saw year-to-date increases primarily in certificates of deposit and savings accounts, as customers continued to move balances into high yield savings accounts and special rate time deposits in the relatively high rate environment. Public unit balances totaled $565.9 million at December 31, 2024, a decrease of $28.7 million compared to June 30, 2024, but an increase of $55.4 million, as compared to $510.5 million at September 30, 2024. Public unit balances increased compared to September 30, 2024, the linked quarter, due to seasonal inflows, but decreased year-to-date due to the loss of a large local public unit depositor. Brokered deposits totaled $254.0 million at December 31, 2024, an increase of $80.3 million as compared to June 30, 2024, but a decrease of $19.1 million compared to September 30, 2024, the linked quarter. Year-to-date, the Company increased brokered deposits due to more attractive pricing for brokered certificates of deposit relative to local market rates and the need to meet seasonal loan demand, and to build on-balance sheet liquidity. The average loan-to-deposit ratio for the second quarter of fiscal 2025 was 96.4%, as compared to 96.3% for the quarter ended June 30, 2024, and 94.3% for the same period of the prior fiscal year. The loan-to-deposit ratio at period end December 31, 2024, was 95.6%. The table below illustrates changes in deposit balances by type over recent periods:

                                   
    Summary Deposit Data as of:      Dec. 31,      Sep. 30,      June 30,      Mar. 31,      Dec. 31,
    (dollars in thousands)   2024   2024   2024   2024   2023
                                   
    Non-interest bearing deposits   $ 514,199   $ 503,209   $ 514,107   $ 525,959   $ 534,194
    NOW accounts     1,211,402     1,128,917     1,239,663     1,300,358     1,304,371
    MMDAs – non-brokered     347,271     320,252     334,774     359,569     378,578
    Brokered MMDAs     3,018     12,058     2,025     10,084     20,560
    Savings accounts     573,291     556,030     517,084     455,212     372,824
    Total nonmaturity deposits     2,649,181     2,520,466     2,607,653     2,651,182     2,610,527
                                   
    Certificates of deposit – non-brokered     1,310,421     1,258,583     1,163,650     1,158,063     1,194,993
    Brokered certificates of deposit     251,025     261,093     171,756     176,867     179,980
    Total certificates of deposit     1,561,446     1,519,676     1,335,406     1,334,930     1,374,973
                                   
    Total deposits   $ 4,210,627   $ 4,040,142   $ 3,943,059   $ 3,986,112   $ 3,985,500
                                   
    Public unit nonmaturity accounts   $ 482,406   $ 447,638   $ 541,445   $ 572,631   $ 544,873
    Public unit certificates of deposit     83,506     62,882     53,144     51,834     49,237
    Total public unit deposits   $ 565,912   $ 510,520   $ 594,589   $ 624,465   $ 594,110
     

    FHLB advances were $107.1 million at December 31, 2024, an increase of $5.0 million, or 4.9%, as compared to June 30, 2024.

    The Company’s stockholders’ equity was $512.4 million at December 31, 2024, an increase of $23.6 million, or 4.8%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $1.0 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $16.4 million at December 31, 2024 compared $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.

    Quarterly Income Statement Summary:

    The Company’s net interest income for the three-month period ended December 31, 2024, was $38.1 million, an increase of $3.7 million, or 10.6%, as compared to the same period of the prior fiscal year. The increase was attributable to a 6.7% increase in the average balance of interest-earning assets and an 11-basis point increase in the net interest margin, from 3.25% to 3.36%, as the 32-basis point increase in the yield on interest-earning assets was partially offset by a 22-basis point increase in cost of interest-bearing liabilities.

    Loan discount accretion and deposit premium amortization related to the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $987,000 in net interest income for the three-month period ended December 31, 2024, as compared to $1.5 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed nine basis points to net interest margin in the three-month period ended December 31, 2024, compared to 14 basis points during the same period of the prior fiscal year, and as compared to a nine basis point contribution in the linked quarter, ended September 30, 2024, when the net interest margin was 3.37%.

    The Company recorded a PCL of $932,000 in the three-month period ended December 31, 2024, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $501,000 provision attributable to the ACL for loan balances outstanding and a $431,000 provision attributable to the allowance for off-balance sheet credit exposures.

    The Company’s noninterest income for the three-month period ended December 31, 2024, was $6.9 million, an increase of $1.2 million, or 21.7%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to the Company’s realization of a $682,000 loss on sale of AFS securities in the year-ago period, as well as increases in deposit account charges and related fees, other loan fees, and wealth management fees. These increases were partially offset by lower net realized gains on sale of loans, which were primarily driven by a reduction in gains on sale of Small Business Administration (SBA) loans, and lower loan late charges.

    Noninterest expense for the three-month period ended December 31, 2024, was $24.9 million, an increase of $1.0 million, or 4.3%, as compared to the same period of the prior fiscal year. The increase was attributable primarily to increases in compensation and benefits, legal and professional fees, other noninterest expense, and occupancy expenses. The increase in compensation and benefits expense was primarily due to a trend increase in employee headcount, as well as annual merit increases. Legal and professional fees were elevated due to consulting fees tied to internal projects, recruiter costs, and the settlement of a legal matter. Other noninterest expense increased due to increased expenses associated with SBA loans and costs for employee travel and training. Lastly, occupancy and equipment expenses increased primarily due to depreciation on recent capitalized expenditures, including buildings, equipment, and signage. Partially offsetting these increases from the prior year period are lower data processing and telecommunication expenses, and a reduction in intangible amortization, as the core deposit intangible recognized in an older merger was fully amortized in the prior quarter.

    The efficiency ratio for the three-month period ended December 31, 2024, was 55.3%, as compared to 58.5% in the same period of the prior fiscal year. The change was attributable to net interest income and noninterest income growing faster than operating expenses.

    The income tax provision for the three-month period ended December 31, 2024, was $4.5 million, an increase of $1.4 million, or 43.3%, as compared to the same period of the prior fiscal year. The current period effective tax rate was 23.7%, as compared to 20.6% in the same quarter of the prior fiscal year. The effective tax rate for the December 31, 2024, quarter was elevated due to an adjustment of tax accruals attributable to completed merger & acquisition activity.

    Forward-Looking Information:

    Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from the forward-looking statements, including: potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent expected, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention and labor shortages, might be greater than expected and goodwill impairment charges might be incurred; the strength of the United States economy in general and the strength of local economies in which we conduct operations; fluctuations in interest rates and the possibility of a recession; monetary and fiscal policies of the FRB and the U.S. Government and other governmental initiatives affecting the financial services industry; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services; fluctuations in real estate values in both residential and commercial real estate markets, as well as agricultural business conditions; demand for loans and deposits; legislative or regulatory changes that adversely affect our business; changes in accounting principles, policies, or guidelines; results of regulatory examinations, including the possibility that a regulator may, among other things, require an increase in our reserve for credit losses or write-down of assets; the impact of technological changes; and our success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.

    Southern Missouri Bancorp, Inc.
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
     
                                     
    Summary Balance Sheet Data as of:      Dec. 31,      Sep. 30,      June 30,      Mar. 31,      Dec. 31,  
    (dollars in thousands, except per share data)   2024   2024   2024   2024   2023  
                                     
    Cash equivalents and time deposits   $ 146,078   $ 75,591   $ 61,395   $ 168,763   $ 217,090  
    Available for sale (AFS) securities     468,060     420,209     427,903     433,689     417,406  
    FHLB/FRB membership stock     18,099     18,064     17,802     17,734     18,023  
    Loans receivable, gross     4,026,979     3,966,518     3,849,803     3,771,194     3,731,890  
    Allowance for credit losses     54,740     54,437     52,516     51,336     50,084  
    Loans receivable, net     3,972,239     3,912,081     3,797,287     3,719,858     3,681,806  
    Bank-owned life insurance     74,643     74,119     73,601     73,101     72,618  
    Intangible assets     75,399     76,340     77,232     78,049     79,088  
    Premises and equipment     96,418     96,087     95,952     95,801     94,519  
    Other assets     56,738     56,709     53,144     59,997     62,952  
    Total assets   $ 4,907,674   $ 4,729,200   $ 4,604,316   $ 4,646,992   $ 4,643,502  
                                     
    Interest-bearing deposits   $ 3,696,428   $ 3,536,933   $ 3,428,952   $ 3,437,420   $ 3,451,306  
    Noninterest-bearing deposits     514,199     503,209     514,107     548,692     534,194  
    Securities sold under agreements to repurchase     15,000     15,000     9,398     9,398     9,398  
    FHLB advances     107,070     107,069     102,050     102,043     113,036  
    Other liabilities     39,424     38,191     37,905     46,712     42,256  
    Subordinated debt     23,182     23,169     23,156     23,143     23,130  
    Total liabilities     4,395,303     4,223,571     4,115,568     4,167,408     4,173,320  
                                     
    Total stockholders’ equity     512,371     505,629     488,748     479,584     470,182  
                                     
    Total liabilities and stockholders’ equity   $ 4,907,674   $ 4,729,200   $ 4,604,316   $ 4,646,992   $ 4,643,502  
                                     
    Equity to assets ratio     10.44 %     10.69 %     10.61 %     10.32 %     10.13 %
                                     
    Common shares outstanding     11,277,167     11,277,167     11,277,737     11,366,094     11,336,462  
    Less: Restricted common shares not vested     46,653     56,553     57,956     57,956     49,676  
    Common shares for book value determination     11,230,514     11,220,614     11,219,781     11,308,138     11,286,786  
                                     
    Book value per common share   $ 45.62   $ 45.06   $ 43.56   $ 42.41   $ 41.66  
    Less: Intangible assets per common share     6.71     6.80     6.88     6.90     7.01  
    Tangible book value per common share (1)     38.91     38.26     36.68     35.51     34.65  
    Closing market price     57.37     56.49     45.01     43.71     53.39  
                                     

    (1)   Non-GAAP financial measure.

                                     
    Nonperforming asset data as of:      Dec. 31,      Sep. 30,      June 30,      Mar. 31,      Dec. 31,  
    (dollars in thousands)   2024   2024   2024   2024   2023  
                                     
    Nonaccrual loans   $ 8,309   $ 8,206   $ 6,680   $ 7,329   $ 5,922  
    Accruing loans 90 days or more past due     —     —     —     81     —  
    Total nonperforming loans     8,309     8,206     6,680     7,410     5,922  
    Other real estate owned (OREO)     2,423     3,842     3,865     3,791     3,814  
    Personal property repossessed     37     21     23     60     40  
    Total nonperforming assets   $ 10,769   $ 12,069   $ 10,568   $ 11,261   $ 9,776  
                                     
    Total nonperforming assets to total assets     0.22 %     0.26 %     0.23 %     0.24 %     0.21 %  
    Total nonperforming loans to gross loans     0.21 %     0.21 %     0.17 %     0.20 %     0.16 %  
    Allowance for credit losses to nonperforming loans     658.80 %     663.38 %     786.17 %     692.79 %     845.73 %  
    Allowance for credit losses to gross loans     1.36 %     1.37 %     1.36 %     1.36 %     1.34 %  
                                     
    Performing modifications to borrowers experiencing financial difficulty   $ 24,083   $ 24,340   $ 24,602   $ 24,848   $ 24,237  
                                     
                                   
        For the three-month period ended
    Quarterly Summary Income Statement Data:   Dec. 31,      Sep. 30,      June 30,      Mar. 31,      Dec. 31,
    (dollars in thousands, except per share data)      2024   2024   2024   2024   2023
                                   
    Interest income:                                   
    Cash equivalents   $ 784   $ 78   $ 541   $ 2,587   $ 1,178
    AFS securities and membership stock     5,558     5,547     5,677     5,486     5,261
    Loans receivable     63,082     61,753     58,449     55,952     55,137
    Total interest income     69,424     67,378     64,667     64,025     61,576
    Interest expense:                              
    Deposits     29,538     28,796     27,999     27,893     25,445
    Securities sold under agreements to repurchase     226     160     125     128     126
    FHLB advances     1,099     1,326     1,015     1,060     1,079
    Subordinated debt     418     435     433     435     440
    Total interest expense     31,281     30,717     29,572     29,516     27,090
    Net interest income     38,143     36,661     35,095     34,509     34,486
    Provision for credit losses     932     2,159     900     900     900
    Noninterest income:                              
    Deposit account charges and related fees     2,237     2,184     1,978     1,847     1,784
    Bank card interchange income     1,301     1,499     1,770     1,301     1,329
    Loan late charges     —     —     170     150     146
    Loan servicing fees     232     286     494     267     285
    Other loan fees     944     1,063     617     757     644
    Net realized gains on sale of loans     133     361     97     99     304
    Net realized losses on sale of AFS securities     —     —     —     (807     (682
    Earnings on bank owned life insurance     522     517     498     483     472
    Insurance brokerage commissions     300     287     331     312     310
    Wealth management fees     843     730     838     866     668
    Other noninterest income     353     247     974     309     380
    Total noninterest income     6,865     7,174     7,767     5,584     5,640
    Noninterest expense:                              
    Compensation and benefits     13,737     14,397     13,894     13,750     12,961
    Occupancy and equipment, net     3,585     3,689     3,790     3,623     3,478
    Data processing expense     2,224     2,171     1,929     2,349     2,382
    Telecommunications expense     354     428     468     464     465
    Deposit insurance premiums     588     472     638     677     598
    Legal and professional fees     619     1,208     516     412     387
    Advertising     442     546     640     622     392
    Postage and office supplies     283     306     308     344     283
    Intangible amortization     897     897     1,018     1,018     1,018
    Foreclosed property expenses     73     12     52     60     44
    Other noninterest expense     2,074     1,715     1,749     1,730     1,852
    Total noninterest expense     24,876     25,841     25,002     25,049     23,860
    Net income before income taxes     19,200     15,835     16,960     14,144     15,366
    Income taxes     4,547     3,377     3,430     2,837     3,173
    Net income     14,653     12,458     13,530     11,307     12,193
    Less: Distributed and undistributed earnings allocated                              
    to participating securities     61     62     69     58     53
    Net income available to common shareholders   $ 14,592   $ 12,396   $ 13,461   $ 11,249   $ 12,140
                                   
    Basic earnings per common share   $ 1.30   $ 1.10   $ 1.19   $ 1.00   $ 1.08
    Diluted earnings per common share     1.30     1.10     1.19     0.99     1.07
    Dividends per common share     0.23     0.23     0.21     0.21     0.21
    Average common shares outstanding:                              
    Basic     11,231,000     11,221,000     11,276,000     11,302,000     11,287,000
    Diluted     11,260,000     11,240,000     11,283,000     11,313,000     11,301,000
                                   
                                     
        For the three-month period ended  
    Quarterly Average Balance Sheet Data:   Dec. 31,      Sep. 30,      June 30,      Mar. 31,      Dec. 31,  
    (dollars in thousands)      2024   2024   2024   2024   2023  
                                     
    Interest-bearing cash equivalents   $ 64,976   $ 5,547   $ 39,432   $ 182,427   $ 89,123  
    AFS securities and membership stock     479,633     460,187     476,198     472,904     468,498  
    Loans receivable, gross     3,989,643     3,889,740     3,809,209     3,726,631     3,691,586  
    Total interest-earning assets     4,534,252     4,355,474     4,324,839     4,381,962     4,249,207  
    Other assets     291,217     283,056     285,956     291,591     301,415  
    Total assets   $ 4,825,469   $ 4,638,530   $ 4,610,795   $ 4,673,553   $ 4,550,622  
                                     
    Interest-bearing deposits   $ 3,615,767   $ 3,416,752   $ 3,417,360   $ 3,488,104   $ 3,341,221  
    Securities sold under agreements to repurchase     15,000     12,321     9,398     9,398     9,398  
    FHLB advances     107,054     123,723     102,757     111,830     113,519  
    Subordinated debt     23,175     23,162     23,149     23,137     23,124  
    Total interest-bearing liabilities     3,760,996     3,575,958     3,552,664     3,632,469     3,487,262  
    Noninterest-bearing deposits     524,878     531,946     539,637     532,075     572,101  
    Other noninterest-bearing liabilities     31,442     33,737     35,198     33,902     31,807  
    Total liabilities     4,317,316     4,141,641     4,127,499     4,198,446     4,091,170  
                                     
    Total stockholders’ equity     508,153     496,889     483,296     475,107     459,452  
                                     
    Total liabilities and stockholders’ equity   $ 4,825,469   $ 4,638,530   $ 4,610,795   $ 4,673,553   $ 4,550,622  
                                     
    Return on average assets     1.21 %     1.07 %     1.17 %     0.97 %     1.07 %
    Return on average common stockholders’ equity     11.5 %     10.0 %     11.2 %     9.5 %     10.6 %
                                     
    Net interest margin     3.36 %     3.37 %     3.25 %     3.15 %     3.25 %
    Net interest spread     2.79 %     2.75 %     2.65 %     2.59 %     2.69 %
                                     
    Efficiency ratio     55.3 %     59.0 %     58.3 %     61.2 %     58.5 %

    The MIL Network –

  • MIL-OSI: Five Star Bancorp Announces Quarterly and Annual Results

    Source: GlobeNewswire (MIL-OSI)

    RANCHO CORDOVA, Calif., Jan. 27, 2025 (GLOBE NEWSWIRE) — Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the “Company”), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank”), today reported net income of $13.3 million for the three months ended December 31, 2024, as compared to $10.9 million for the three months ended September 30, 2024 and $10.8 million for the three months ended December 31, 2023. Net income for the year ended December 31, 2024 was $45.7 million, as compared to $47.7 million for the year ended December 31, 2023.

    Financial and Other Highlights

    Performance highlights and other developments for the Company for the periods noted below included the following:

      Three months ended
    (in thousands, except per share and share data) December 31, 2024   September 30, 2024   December 31, 2023
    Return on average assets (“ROAA”)   1.31 %     1.18 %     1.26 %
    Return on average equity (“ROAE”)   13.48 %     11.31 %     15.45 %
    Pre-tax income $ 19,367     $ 15,241     $ 15,151  
    Pre-tax, pre-provision income(1) $ 20,667     $ 17,991     $ 15,951  
    Net income $ 13,317     $ 10,941     $ 10,799  
    Basic earnings per common share $ 0.63     $ 0.52     $ 0.63  
    Diluted earnings per common share $ 0.63     $ 0.52     $ 0.63  
    Weighted average basic common shares outstanding   21,182,143       21,182,143       17,175,445  
    Weighted average diluted common shares outstanding   21,235,318       21,232,758       17,193,114  
    Shares outstanding at end of period   21,319,083       21,319,583       17,256,989  
      Year ended
    (in thousands, except per share and share data) December 31, 2024   December 31, 2023
    ROAA   1.23 %     1.44 %
    ROAE   12.72 %     17.85 %
    Pre-tax income $ 64,721     $ 66,616  
    Pre-tax, pre-provision income(1) $ 71,671     $ 70,616  
    Net income $ 45,671     $ 47,734  
    Basic earnings per common share $ 2.26     $ 2.78  
    Diluted earnings per common share $ 2.26     $ 2.78  
    Weighted average basic common shares outstanding   20,154,385       17,166,592  
    Weighted average diluted common shares outstanding   20,205,440       17,187,969  
    Shares outstanding at end of period   21,319,083       17,256,989  
                   

    (1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

    James E. Beckwith, President and Chief Executive Officer, commented:

    “While we focus on the future and maintaining a position of distinction and respect in the markets we serve, we proudly look back at 2024 as another outstanding year of achievement. We experienced consistent, strong financial performance with year-over-year growth in loans and deposits, a consistent shareholder dividend, and stable net interest margin. We also continued our successful execution of our San Francisco market expansion and now have 27 employees in the San Francisco Bay Area who contributed $229.5 million in deposits from June 5, 2023 to December 31, 2024. We have managed expenses and executed on conservative underwriting practices, which are foundational to our success.

    Five Star Bank consistently executes on client and community-focused initiatives, and in 2024, we received a Super Premier rating from Findley Reports, an IDC Superior rating, and a Bauer Financial rating of 5 stars (out of five). We were also awarded the prestigious 2023 Raymond James Community Bankers Cup, were among S&P Global Market Intelligence’s 2023 Top 20 Best-Performing Community banks in the nation (with assets between $3 billion and $10 billion), and were ranked fifth on the 2024 Bank Director Magazine (RankingBanking) Best U.S. Banks with assets less than $5 billion. We also received the Greater Sacramento Economic Council’s Sustainability Award recognizing a company that has supported industry growth in the Greater Sacramento region.

    In 2024, our senior leadership was recognized by the Sacramento Business Journal with a C-Suite Award, a Women Who Mean Business honor, a 40 Under 40 recognition, and placement on the Power 100 list. Our senior leadership was also recognized on the San Francisco Business Times’ Newsmaker 100 list, as part of the Independent Community Bankers of America’s 40 Under 40: Emerging Community Bank Leaders, among the Association of Latino Professionals for America’s 50 Most Powerful Latinas, and with a National Association of Women Business Owners’ Sacramento Valley Outstanding Women Leaders’ Executive Woman award.

    Being recognized as community leaders ensures Five Star Bank remains top of mind in the markets we serve as we continue to build-out our market presence. I am humbled and proud of our team’s accomplishments and look forward to the future.”

    Financial highlights included the following:

    • The San Francisco Bay Area team, which increased from 24 to 27 employees during the three months ended December 31, 2024, generated deposit balances totaling $229.5 million at December 31, 2024, an increase of $40.4 million from September 30, 2024.
    • Cash and cash equivalents were $352.3 million, representing 9.90% of total deposits at December 31, 2024, as compared to 7.38% at September 30, 2024.
    • Total deposits increased by $158.0 million, or 4.65%, during the three months ended December 31, 2024, due to increases in both non-wholesale and wholesale deposits, which the Company defines as brokered deposits and public time deposits. During the three months ended December 31, 2024, non-wholesale deposits increased by $8.0 million, or 0.27%, and wholesale deposits increased by $150.0 million, or 36.59%.
    • Consistent, disciplined management of expenses contributed to our efficiency ratio of 41.21% for the three months ended December 31, 2024, as compared to 43.37% for the three months ended September 30, 2024.
    • For the three months ended December 31, 2024, net interest margin was 3.36%, as compared to 3.37% for the three months ended September 30, 2024 and 3.19% for the three months ended December 31, 2023. For the year ended December 31, 2024, net interest margin was 3.32%, as compared to 3.42% for the year ended December 31, 2023. The effective Federal Funds rate fell to 4.33% as of December 31, 2024 from 4.83% as of September 30, 2024 and 5.33% as of December 31, 2023.
    • Other comprehensive loss was $2.6 million during the three months ended December 31, 2024. Unrealized losses, net of tax effect, on available-for-sale securities were $12.4 million as of December 31, 2024. Total carrying value of held-to-maturity and available-for-sale securities represented 0.07% and 2.48% of total interest-earning assets, respectively, as of December 31, 2024.
    • The Company’s common equity Tier 1 capital ratio was 11.02% and 10.93% as of December 31, 2024 and September 30, 2024, respectively. The Bank continues to meet all requirements to be considered “well-capitalized” under applicable regulatory guidelines.
    • Loan and deposit growth in the three and twelve months ended December 31, 2024 was as follows:
    (in thousands) December 31, 2024   September 30, 2024   $ Change   % Change
    Loans held for investment $ 3,532,686   $ 3,460,565   $ 72,121   2.08 %
    Non-interest-bearing deposits   922,629     906,939     15,690   1.73 %
    Interest-bearing deposits   2,635,365     2,493,040     142,325   5.71 %
                   
    (in thousands) December 31, 2024   December 31, 2023   $ Change   % Change
    Loans held for investment $ 3,532,686   $ 3,081,719   $ 450,967   14.63 %
    Non-interest-bearing deposits   922,629     831,101     91,528   11.01 %
    Interest-bearing deposits   2,635,365     2,195,795     439,570   20.02 %
                           
    • The ratio of nonperforming loans to loans held for investment at period end decreased from 0.06% at December 31, 2023 to 0.05% at December 31, 2024.
    • The Company’s Board of Directors declared, and the Company subsequently paid, a cash dividend of $0.20 per share during the three months ended December 31, 2024. The Company’s Board of Directors subsequently declared another cash dividend of $0.20 per share on January 16, 2025, which the Company expects to pay on February 10, 2025 to shareholders of record as of February 3, 2025.

    Summary Results

    Three months ended December 31, 2024, as compared to three months ended September 30, 2024

    The Company’s net income was $13.3 million for the three months ended December 31, 2024, as compared to $10.9 million for the three months ended September 30, 2024. Net interest income increased by $3.1 million, primarily due to an increase in interest income driven by a larger average balance of interest-earning assets, partially offset by an increase in interest expense due to a larger average balance of deposits, as compared to September 30, 2024. The provision for credit losses decreased by $1.5 million, reflecting adjustments to expectations for credit losses based on economic trends and forecasts in the three months ended December 31, 2024 compared to the three months ended September 30, 2024. Non-interest income increased by $0.3 million, primarily due to income received on equity investments in venture-backed funds during the three months ended December 31, 2024, combined with a loss from equity investments in venture-backed funds during the three months ended September 30, 2024. Non-interest expense increased by $0.7 million, primarily due to: (i) increased salaries and employee benefits mainly resulting from increased loan production driving higher commissions expense period-over-period; and (ii) increased advertising and promotional expenses due to a larger number of events sponsored and attended period-over-period.

    Three months ended December 31, 2024, as compared to three months ended December 31, 2023

    The Company’s net income was $13.3 million for the three months ended December 31, 2024, as compared to $10.8 million for the three months ended December 31, 2023. Net interest income increased by $6.8 million, primarily due to an increase in interest income driven by higher average balances and yields on loans, partially offset by an increase in interest expense due to higher average balances and rates on deposits. The provision for credit losses increased by $0.5 million, reflecting adjustments to expectations for credit losses based on economic trends and forecasts in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Non-interest income decreased by $0.3 million, primarily due to lower swap referral and rate lock fees during the three months ended December 31, 2024 compared to the same quarter of the prior year. Non-interest expense increased by $1.8 million with an increase in salaries and employee benefits related to the Company’s expansion into the San Francisco Bay Area as the leading driver.

    Year ended December 31, 2024, as compared to year ended December 31, 2023

    The Company’s net income was $45.7 million for the year ended December 31, 2024, as compared to $47.7 million for the year ended December 31, 2023. Net interest income increased by $8.8 million, primarily due to an increase in interest income driven by higher average balances and yields on loans, partially offset by an increase in interest expense due to higher average balances and rates on deposits. The provision for credit losses increased by $3.0 million, or 73.75%, as loan originations in the year ended December 31, 2024 were almost double those for the year ended December 31, 2023. Non-interest income decreased by $1.1 million, primarily due to lower income received on equity investments in venture-backed funds during the year ended December 31, 2024 than during the year ended December 31, 2023. Non-interest expense increased by $6.7 million with an increase in salaries and employee benefits related to the Company’s expansion into the San Francisco Bay Area as the leading driver.

    The following is a summary of the components of the Company’s operating results and performance ratios for the periods indicated:

        Three months ended        
    (in thousands, except per share data)   December 31, 2024   September 30, 2024   $ Change   % Change
    Selected operating data:                
    Net interest income   $ 33,489     $ 30,386     $ 3,103     10.21 %
    Provision for credit losses     1,300       2,750       (1,450 )   (52.73) %
    Non-interest income     1,666       1,381       285     20.64 %
    Non-interest expense     14,488       13,776       712     5.17 %
    Pre-tax income     19,367       15,241       4,126     27.07 %
    Provision for income taxes     6,050       4,300       1,750     40.70 %
    Net income   $ 13,317     $ 10,941     $ 2,376     21.72 %
    Earnings per common share:                
    Basic   $ 0.63     $ 0.52     $ 0.11     21.15 %
    Diluted   $ 0.63     $ 0.52     $ 0.11     21.15 %
    Performance and other financial ratios:                
    ROAA     1.31 %     1.18 %        
    ROAE     13.48 %     11.31 %        
    Net interest margin     3.36 %     3.37 %        
    Cost of funds     2.65 %     2.72 %        
    Efficiency ratio     41.21 %     43.37 %        
        Three months ended        
    (in thousands, except per share data)   December 31, 2024   December 31, 2023   $ Change   % Change
    Selected operating data:                
    Net interest income   $ 33,489     $ 26,678     $ 6,811     25.53 %
    Provision for credit losses     1,300       800       500     62.50 %
    Non-interest income     1,666       1,936       (270 )   (13.95) %
    Non-interest expense     14,488       12,663       1,825     14.41 %
    Pre-tax income     19,367       15,151       4,216     27.83 %
    Provision for income taxes     6,050       4,352       1,698     39.02 %
    Net income   $ 13,317     $ 10,799     $ 2,518     23.32 %
    Earnings per common share:                
    Basic   $ 0.63     $ 0.63     $ —     — %
    Diluted   $ 0.63     $ 0.63     $ —     — %
    Performance and other financial ratios:                
    ROAA     1.31 %     1.26 %        
    ROAE     13.48 %     15.45 %        
    Net interest margin     3.36 %     3.19 %        
    Cost of funds     2.65 %     2.50 %        
    Efficiency ratio     41.21 %     44.25 %        
                             
        Year ended        
    (in thousands, except per share data)   December 31, 2024   December 31, 2023   $ Change   % Change
    Selected operating data:                
    Net interest income   $ 119,711     $ 110,880     $ 8,831     7.96 %
    Provision for credit losses     6,950       4,000       2,950     73.75 %
    Non-interest income     6,453       7,511       (1,058 )   (14.09) %
    Non-interest expense     54,493       47,775       6,718     14.06 %
    Pre-tax income     64,721       66,616       (1,895 )   (2.84) %
    Provision for income taxes     19,050       18,882       168     0.89 %
    Net income   $ 45,671     $ 47,734     $ (2,063 )   (4.32) %
    Earnings per common share:                
    Basic   $ 2.26     $ 2.78     $ (0.52 )   (18.71) %
    Diluted   $ 2.26     $ 2.78     $ (0.52 )   (18.71) %
    Performance and other financial ratios:                
    ROAA     1.23 %     1.44 %        
    ROAE     12.72 %     17.85 %        
    Net interest margin     3.32 %     3.42 %        
    Cost of funds     2.64 %     2.10 %        
    Efficiency ratio     43.19 %     40.35 %        


    Balance Sheet Summary

    (in thousands)   December 31, 2024   December 31, 2023   $ Change   % Change
    Selected financial condition data:                
    Total assets   $ 4,053,278   $ 3,593,125   $ 460,153     12.81 %
    Cash and cash equivalents     352,343     321,576     30,767     9.57 %
    Total loans held for investment     3,532,686     3,081,719     450,967     14.63 %
    Total investments     100,914     111,160     (10,246 )   (9.22) %
    Total liabilities     3,656,654     3,307,351     349,303     10.56 %
    Total deposits     3,557,994     3,026,896     531,098     17.55 %
    Subordinated notes, net     73,895     73,749     146     0.20 %
    Total shareholders’ equity     396,624     285,774     110,850     38.79 %
                               
    • Insured and collateralized deposits were approximately $2.4 billion, representing 66.92% of total deposits as of December 31, 2024. Net uninsured and uncollateralized deposits were approximately $1.2 billion as of December 31, 2024.
    • Commercial and consumer deposit accounts constituted 77.00% of total deposits. Deposit relationships of greater than $5 million represented 61.13% of total deposits and had an average age of approximately 9.28 years as of December 31, 2024.
    • Cash and cash equivalents as of December 31, 2024 were $352.3 million, representing 9.90% of total deposits at December 31, 2024, as compared to 10.62% as of December 31, 2023.
    • Total liquidity (consisting of cash and cash equivalents and unused and immediately available borrowing capacity as set forth below) was approximately $1.9 billion as of December 31, 2024.
        December 31, 2024
    (in thousands)   Line of Credit   Letters of Credit Issued   Borrowings   Available
    Federal Home Loan Bank of San Francisco (“FHLB”) advances   $ 1,212,209   $ 701,500   $ —   $ 510,709
    Federal Reserve Discount Window     862,136     —     —     862,136
    Correspondent bank lines of credit     175,000     —     —     175,000
    Cash and cash equivalents     —     —     —     352,343
    Total   $ 2,249,345   $ 701,500   $ —   $ 1,900,188

    The increase in total assets from December 31, 2023 to December 31, 2024 was primarily due to a $451.0 million increase in total loans held for investment and a $30.8 million increase in cash and cash equivalents, partially offset by a $10.2 million decrease in investments. The $451.0 million increase in total loans held for investment between December 31, 2023 and December 31, 2024 was the result of $1.1 billion in loan originations, partially offset by $263.0 million and $423.0 million in loan payoffs and paydowns, respectively. The $451.0 million increase in total loans held for investment included $281.4 million in purchased loans within the consumer concentration of the loan portfolio. The $30.8 million increase in cash and cash equivalents primarily resulted from net cash inflows related to financing and operating activities of $425.7 million and $52.3 million, respectively, partially offset by net cash outflows related to investing activities of $447.3 million.

    The increase in total liabilities from December 31, 2023 to December 31, 2024 was primarily attributable to an increase in deposits of $531.1 million, partially offset by a decrease in other borrowings of $170.0 million. The $531.1 million increase in deposits was largely due to increases in money market, time, and non-interest-bearing demand deposits of $242.9 million, $203.6 million, and $91.5 million, respectively, partially offset by decreases in interest-bearing demand and savings deposits of $5.1 million and $1.8 million, respectively.

    The increase in total shareholders’ equity from December 31, 2023 to December 31, 2024 was primarily a result of $80.9 million of additional common stock issued during the year and net income recognized of $45.7 million, partially offset by $16.2 million in cash dividends paid during the period.

    Net Interest Income and Net Interest Margin

    The following is a summary of the components of net interest income for the periods indicated:

        Three months ended        
    (in thousands)   December 31, 2024   September 30, 2024   $ Change   % Change
    Interest and fee income   $ 57,745     $ 52,667     $ 5,078   9.64 %
    Interest expense     24,256       22,281       1,975   8.86 %
    Net interest income   $ 33,489     $ 30,386     $ 3,103   10.21 %
    Net interest margin     3.36 %     3.37 %        
                     
        Three months ended        
    (in thousands)   December 31, 2024   December 31, 2023   $ Change   % Change
    Interest and fee income   $ 57,745     $ 46,180     $ 11,565   25.04 %
    Interest expense     24,256       19,502       4,754   24.38 %
    Net interest income   $ 33,489     $ 26,678     $ 6,811   25.53 %
    Net interest margin     3.36 %     3.19 %        
                     
        Year ended        
    (in thousands)   December 31, 2024   December 31, 2023   $ Change   % Change
    Interest and fee income   $ 206,951     $ 174,382     $ 32,569   18.68 %
    Interest expense     87,240       63,502       23,738   37.38 %
    Net interest income   $ 119,711     $ 110,880     $ 8,831   7.96 %
    Net interest margin     3.32 %     3.42 %        

    The following table shows the components of net interest income and net interest margin for the quarterly periods indicated:

        Three months ended
        December 31, 2024   September 30, 2024   December 31, 2023
    (in thousands)   Average Balance   Interest Income/Expense   Yield/Rate   Average Balance   Interest Income/Expense   Yield/Rate   Average Balance   Interest Income/Expense   Yield/Rate
    Assets                                    
    Interest-earning deposits in banks   $ 363,828   $ 4,335   4.74 %   $ 126,266   $ 1,657   5.22 %   $ 157,775   $ 2,100   5.28 %
    Investment securities     103,930     607   2.33 %     106,256     620   2.32 %     106,483     651   2.43 %
    Loans held for investment and sale     3,498,109     52,803   6.01 %     3,354,050     50,390   5.98 %     3,055,042     43,429   5.64 %
    Total interest-earning assets     3,965,867     57,745   5.79 %     3,586,572     52,667   5.84 %     3,319,300     46,180   5.52 %
    Interest receivable and other assets, net     91,736             91,965             80,360        
    Total assets   $ 4,057,603           $ 3,678,537           $ 3,399,660        
                                         
    Liabilities and shareholders’ equity                                    
    Interest-bearing transaction accounts   $ 298,518   $ 1,249   1.66 %   $ 302,188   $ 1,237   1.63 %   $ 291,967   $ 1,091   1.48 %
    Savings accounts     127,298     887   2.77 %     124,851     979   3.12 %     130,915     891   2.70 %
    Money market accounts     1,596,116     13,520   3.37 %     1,578,244     14,688   3.70 %     1,347,111     10,824   3.19 %
    Time accounts     617,596     7,438   4.79 %     326,640     4,172   5.08 %     417,434     5,322   5.06 %
    Subordinated notes and other borrowings     73,872     1,162   6.25 %     76,988     1,205   6.23 %     88,401     1,374   6.16 %
    Total interest-bearing liabilities     2,713,400     24,256   3.56 %     2,408,911     22,281   3.68 %     2,275,828     19,502   3.40 %
    Demand accounts     921,881             852,872             821,651        
    Interest payable and other liabilities     29,234             32,062             24,886        
    Shareholders’ equity     393,088             384,692             277,295        
    Total liabilities & shareholders’ equity   $ 4,057,603           $ 3,678,537           $ 3,399,660        
                                         
    Net interest spread           2.23 %           2.16 %           2.12 %
    Net interest income/margin       $ 33,489   3.36 %       $ 30,386   3.37 %       $ 26,678   3.19 %

    Net interest income during the three months ended December 31, 2024 increased $3.1 million, or 10.21%, to $33.5 million compared to $30.4 million during the three months ended September 30, 2024. Net interest margin totaled 3.36% for the three months ended December 31, 2024, a decrease of one basis point compared to the prior quarter. The increase in net interest income is primarily attributable to an additional $5.1 million in interest income due to a $379.3 million, or 10.58%, increase in the average balance of interest-earning assets during the three months ended December 31, 2024 compared to the prior quarter. The increase in interest income was partially offset by a $2.0 million increase in deposit interest expense due to a $376.6 million, or 11.83%, increase in the average balance of deposits during the three months ended December 31, 2024 compared to the prior quarter.

    As compared to the three months ended December 31, 2023, net interest income increased $6.8 million, or 25.53%, to $33.5 million compared to $26.7 million. Net interest margin totaled 3.36% for the three months ended December 31, 2024, an increase of 17 basis points compared to the same quarter of the prior year. The increase in net interest income is primarily attributable to an additional $9.4 million in loan interest income due to a $443.1 million, or 14.50%, increase in the average balance of loans and a 37 basis point improvement in the average yield on loans during the three months ended December 31, 2024 compared to the same quarter of the prior year. The increase in interest income was partially offset by a $5.0 million increase in deposit interest expense due to a $552.3 million, or 18.36%, increase in the average balance of deposits and a 19 basis point increase in the average cost of deposits during the three months ended December 31, 2024 compared to the same quarter of the prior year.

    The following table shows the components of net interest income and net interest margin for the annual periods indicated:

        Year ended
        December 31, 2024   December 31, 2023
    (in thousands)   Average Balance   Interest Income/Expense   Yield/Rate   Average Balance   Interest Income/Expense   Yield/Rate
    Assets                        
    Interest-earning deposits in banks   $ 218,156   $ 11,080   5.08 %   $ 184,103   $ 9,069   4.93 %
    Investment securities     106,289     2,530   2.38 %     113,515     2,600   2.29 %
    Loans held for investment and sale     3,283,874     193,341   5.89 %     2,947,603     162,713   5.52 %
    Total interest-earning assets     3,608,319     206,951   5.74 %     3,245,221     174,382   5.37 %
    Interest receivable and other assets, net     90,061             75,741        
    Total assets   $ 3,698,380           $ 3,320,962        
                             
    Liabilities and shareholders’ equity                        
    Interest-bearing transaction accounts   $ 298,137   $ 4,716   1.58 %   $ 312,944   $ 3,321   1.06 %
    Savings accounts     124,208     3,584   2.89 %     140,060     3,073   2.19 %
    Money market accounts     1,533,405     53,750   3.51 %     1,263,539     33,932   2.69 %
    Time accounts     412,007     20,348   4.94 %     372,557     17,535   4.71 %
    Subordinated notes and other borrowings     77,335     4,842   6.26 %     93,279     5,641   6.05 %
    Total interest-bearing liabilities     2,445,092     87,240   3.57 %     2,182,379     63,502   2.91 %
    Demand accounts     858,789             844,057        
    Interest payable and other liabilities     35,331             27,127        
    Shareholders’ equity     359,168             267,399        
    Total liabilities & shareholders’ equity   $ 3,698,380           $ 3,320,962        
                             
    Net interest spread           2.17 %           2.46 %
    Net interest income/margin       $ 119,711   3.32 %       $ 110,880   3.42 %

    Net interest income during the year ended December 31, 2024 increased $8.8 million, or 7.96%, to $119.7 million compared to $110.9 million during the year ended December 31, 2023. Net interest margin totaled 3.32% for the year ended December 31, 2024, a decrease of 10 basis points compared to the prior year. The increase in net interest income is primarily attributable to an additional $30.6 million in loan interest income due to a $336.3 million, or 11.41%, increase in the average balance of loans and a 37 basis point improvement in the average yield on loans as compared to the prior year. The increase in interest income was partially offset by an additional $24.5 million in deposit interest expense due to a $293.4 million, or 10.00%, increase in the average balance of deposits and a 58 basis point increase in the average cost of deposits compared to the prior year.

    Loans by Type

    The following table provides loan balances, excluding deferred loan fees, by type as of December 31, 2024:

    (in thousands)    
    Real estate:    
    Commercial   $ 2,857,173  
    Commercial land and development     3,849  
    Commercial construction     111,318  
    Residential construction     4,561  
    Residential     32,774  
    Farmland     47,241  
    Commercial:    
    Secured     170,548  
    Unsecured     27,558  
    Consumer and other     279,584  
    Net deferred loan fees     (1,920 )
    Total loans held for investment   $ 3,532,686  


    Interest-bearing Deposits

    The following table provides interest-bearing deposit balances by type as of December 31, 2024:

    (in thousands)    
    Interest-bearing demand accounts   $ 315,217
    Money market accounts     1,525,293
    Savings accounts     124,702
    Time accounts     670,153
    Total interest-bearing deposits   $ 2,635,365


    Asset Quality

    Allowance for Credit Losses

    At December 31, 2024, the Company’s allowance for credit losses was $37.8 million, as compared to $34.4 million at December 31, 2023. The $3.4 million increase in the allowance is due to a $7.5 million provision for credit losses recorded during the twelve months ended December 31, 2024, partially offset by net charge-offs of $4.1 million, mainly attributable to commercial and industrial loans, during the same period.

    The Company’s ratio of nonperforming loans to loans held for investment decreased from 0.06% at December 31, 2023 to 0.05% at December 31, 2024. Loans designated as watch increased from $39.6 million to $123.4 million between December 31, 2023 and December 31, 2024. Loans designated as substandard increased from $2.0 million to $2.6 million between December 31, 2023 and December 31, 2024. There were no loans with doubtful risk grades at December 31, 2024 or December 31, 2023.

    A summary of the allowance for credit losses by loan class is as follows:

        December 31, 2024   December 31, 2023
    (in thousands)   Amount   % of Total   Amount   % of Total
    Real estate:                
    Commercial   $ 25,864   68.44 %   $ 29,015   84.27 %
    Commercial land and development     78   0.21 %     178   0.52 %
    Commercial construction     2,268   6.00 %     718   2.08 %
    Residential construction     64   0.17 %     89   0.26 %
    Residential     270   0.71 %     151   0.44 %
    Farmland     607   1.61 %     399   1.16 %
          29,151   77.14 %     30,550   88.73 %
    Commercial:                
    Secured     5,866   15.52 %     3,314   9.62 %
    Unsecured     278   0.74 %     189   0.55 %
          6,144   16.26 %     3,503   10.17 %
    Consumer and other     2,496   6.60 %     378   1.10 %
    Total allowance for credit losses   $ 37,791   100.00 %   $ 34,431   100.00 %

    The ratio of allowance for credit losses to loans held for investment was 1.07% at December 31, 2024, as compared to 1.12% at December 31, 2023.

    Non-interest Income

    The following table presents the key components of non-interest income for the periods indicated:

        Three months ended        
    (in thousands)   December 31, 2024   September 30, 2024   $ Change   % Change
    Service charges on deposit accounts   $ 179   $ 165   $ 14     8.48 %
    Gain on sale of loans     150     306     (156 )   (50.98) %
    Loan-related fees     400     406     (6 )   (1.48) %
    FHLB stock dividends     332     327     5     1.53 %
    Earnings on bank-owned life insurance     182     162     20     12.35 %
    Other income     423     15     408     2,720.00 %
    Total non-interest income   $ 1,666   $ 1,381   $ 285     20.64 %


    Gain on sale of loans.     The decrease related primarily to an overall decline in the volume of loans sold during the three months ended December 31, 2024 compared to the three months ended September 30, 2024. During the three months ended December 31, 2024, approximately $2.0 million of loans were sold with an effective yield of 7.60%, as compared to approximately $4.4 million of loans sold with an effective yield of 7.03% during the three months ended September 30, 2024.

    Other income. The increase resulted primarily from $0.3 million of income received on equity investments in venture-backed funds during the three months ended December 31, 2024, combined with a $0.1 million loss from equity investments in venture-backed funds during the three months ended September 30, 2024.

    The following table presents the key components of non-interest income for the periods indicated:

        Three months ended      
    (in thousands)   December 31, 2024   December 31, 2023   $ Change   % Change
    Service charges on deposit accounts   $ 179   $ 165     $ 14     8.48 %
    Net gain (loss) on sale of securities     —     (167 )     167     (100.00) %
    Gain on sale of loans     150     317       (167 )   (52.68) %
    Loan-related fees     400     667       (267 )   (40.03) %
    FHLB stock dividends     332     314       18     5.73 %
    Earnings on bank-owned life insurance     182     155       27     17.42 %
    Other income     423     485       (62 )   (12.78) %
    Total non-interest income   $ 1,666   $ 1,936     $ (270 )   (13.95) %


    Net gain (loss) on sale of securities.     The decrease in the net loss on sale of securities related to the sale of two municipal securities with a par value of approximately $0.8 million for a loss of approximately $0.2 million during the three months ended December 31, 2023, with no sales occurring during the three months ended December 31, 2024.

    Gain on sale of loans. The decrease resulted from an overall decline in the volume of loans sold during the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. During the three months ended December 31, 2024, approximately $2.0 million of loans were sold with an effective yield of 7.60%, as compared to approximately $5.9 million of loans sold with an effective yield of 5.41% during the three months ended December 31, 2023.

    Loan-related fees. The decrease resulted from the recognition of $0.2 million lower rate lock fees and $0.1 million lower swap referral fees during the three months ended December 31, 2024 than the three months ended December 31, 2023.

    Non-interest income for the periods indicated:

        Year ended      
    (in thousands)   December 31, 2024   December 31, 2023   $ Change   % Change
    Service charges on deposit accounts   $ 721   $ 575     $ 146     25.39 %
    Net gain (loss) on sale of securities     —     (167 )     167     (100.00) %
    Gain on sale of loans     1,274     1,952       (678 )   (34.73) %
    Loan-related fees     1,605     1,719       (114 )   (6.63) %
    FHLB stock dividends     1,320     970       350     36.08 %
    Earnings on bank-owned life insurance     644     510       134     26.27 %
    Other income     889     1,952       (1,063 )   (54.46) %
    Total non-interest income   $ 6,453   $ 7,511     $ (1,058 )   (14.09) %


    Service charges on deposit accounts.     The increase resulted primarily from a $0.2 million increase in wire transfer fees recognized, partially offset by a small decrease in other fees recognized during the year ended December 31, 2024 compared to the year ended December 31, 2023.

    Net gain (loss) on sale of securities. The decrease in the net loss on sale of securities resulted from the sale of two municipal securities with a par value of approximately $0.8 million for a loss of approximately $0.2 million during the year ended December 31, 2023, with no sales occurring during the year ended December 31, 2024.

    Gain on sale of loans. The decrease related primarily to an overall decline in the volume of loans sold during the year ended December 31, 2024 compared to the year ended December 31, 2023. During the year ended December 31, 2024, approximately $18.3 million of loans were sold with an effective yield of 6.96%, as compared to approximately $36.5 million of loans sold with an effective yield of 5.35% during the year ended December 31, 2023.

    Loan-related fees. The decrease was primarily a result of a $0.2 million net decrease in income earned from the credit card program, partially offset by a small increase in loan fee income earned on various loan types and services.

    FHLB stock dividends. The increase primarily relates to a 50 basis point increase in the annualized dividend rate earned year-over-year, while the average shares outstanding remained consistent.

    Earnings on bank-owned life insurance. The increase was primarily due to additional policies purchased between December 31, 2024 and December 31, 2023.

    Other income. The decrease resulted primarily from $0.5 million in income received on equity investments in venture-backed funds during the year ended December 31, 2024, as compared to $1.7 million in income received on equity investments in venture-back funds during the year ended December 31, 2023.

    Non-interest Expense

    The following table presents the key components of non-interest expense for the periods indicated:

        Three months ended        
    (in thousands)   December 31, 2024   September 30, 2024   $ Change   % Change
    Salaries and employee benefits   $ 8,360   $ 7,969   $ 391     4.91 %
    Occupancy and equipment     649     626     23     3.67 %
    Data processing and software     1,369     1,327     42     3.17 %
    Federal Deposit Insurance Corporation (“FDIC”) insurance     440     405     35     8.64 %
    Professional services     774     830     (56 )   (6.75) %
    Advertising and promotional     752     584     168     28.77 %
    Loan-related expenses     321     292     29     9.93 %
    Other operating expenses     1,823     1,743     80     4.59 %
    Total non-interest expense   $ 14,488   $ 13,776   $ 712     5.17 %


    Salaries and employee benefits.     The increase was primarily a result of: (i) a $0.1 million increase in salaries, benefits, and bonus expense; and (ii) a $0.5 million increase in commissions expense due to higher loan production, net of purchased consumer loans. These increases were partially offset by a $0.2 million increase in loan origination costs due to higher loan production, net of purchased consumer loans, period-over-period.

    Advertising and promotional. The increase was primarily due to the timing of events sponsored and attended during the three months ended December 31, 2024 compared to the three months ended September 30, 2024.

    The following table presents the key components of non-interest expense for the periods indicated:

        Three months ended        
    (in thousands)   December 31, 2024   December 31, 2023   $ Change   % Change
    Salaries and employee benefits   $ 8,360   $ 7,182   $ 1,178   16.40 %
    Occupancy and equipment     649     583     66   11.32 %
    Data processing and software     1,369     1,110     259   23.33 %
    FDIC insurance     440     370     70   18.92 %
    Professional services     774     658     116   17.63 %
    Advertising and promotional     752     717     35   4.88 %
    Loan-related expenses     321     268     53   19.78 %
    Other operating expenses     1,823     1,775     48   2.70 %
    Total non-interest expense   $ 14,488   $ 12,663   $ 1,825   14.41 %


    Salaries and employee benefits.     The increase was primarily a result of: (i) a $1.0 million increase in salaries, benefits, and bonus expense, of which approximately $0.8 million related to employees hired to support expansion into the San Francisco Bay Area; and (ii) a $0.7 million increase in commissions expense due to higher loan production, net of purchased consumer loans. These increases were partially offset by a $0.5 million increase in loan origination costs due to higher loan production, net of purchased consumer loans, period-over-period.

    Data processing and software. The increase was primarily due to: (i) increased usage of our digital banking platform; (ii) higher transaction volumes related to the increased number of loan and deposit accounts; and (iii) an increased number of licenses required for new users on our loan origination and documentation system.

    Professional services. The increase was primarily due to increased audit and examination fees for services provided for the three months ended December 31, 2024 compared to the three months ended December 31, 2023.

    The following table presents the key components of non-interest expense for the periods indicated:

        Year ended        
    (in thousands)   December 31, 2024   December 31, 2023   $ Change   % Change
    Salaries and employee benefits   $ 31,709   $ 27,097   $ 4,612   17.02 %
    Occupancy and equipment     2,547     2,218     329   14.83 %
    Data processing and software     5,088     4,015     1,073   26.72 %
    FDIC insurance     1,635     1,557     78   5.01 %
    Professional services     3,078     2,575     503   19.53 %
    Advertising and promotional     2,411     2,403     8   0.33 %
    Loan-related expenses     1,207     1,192     15   1.26 %
    Other operating expenses     6,818     6,718     100   1.49 %
    Total non-interest expense   $ 54,493   $ 47,775   $ 6,718   14.06 %


    Salaries and employee benefits.     The increase was the result of: (i) a $3.5 million increase in salaries, benefits, and bonus, of which approximately $3.3 million related to employees hired to support expansion into the San Francisco Bay Area; and (ii) a $1.4 million increase in commissions paid, primarily to employees in the San Francisco Bay Area. The increase was partially offset by a $0.3 million increase in loan origination costs due to higher loan production, net of purchased consumer loans, period-over-period.

    Occupancy and equipment. The increase related to rent expense for the San Francisco branch office and a new office lease to support back office staff during the year ended December 31, 2024, which did not exist for the full year ended December 31, 2023.

    Data processing and software. The increase related to: (i) increased usage of our digital banking platform; (ii) higher transaction volumes related to the increased number of loan and deposit accounts; and (iii) an increased number of licenses required for new users on our loan origination and documentation system.

    Professional services. The increase was due to an increase in audit, IT support, and other consulting fees for services provided for the year ended December 31, 2024 compared to the year ended December 31, 2023.

    Other operating expenses. The increase is primarily related to a $0.2 million increase in IntraFi Network fees resulting from an overall increase in balances carried in the network, partially offset by a $0.1 million decrease in conference and training expenses.

    Provision for Income Taxes

    Three months ended December 31, 2024, as compared to the three months ended September 30, 2024

    Provision for income taxes for the quarter ended December 31, 2024 increased by $1.8 million, or 40.70%, to $6.1 million, as compared to $4.3 million for the quarter ended September 30, 2024, which was primarily due to: (i) the increase in taxable income recognized during the three months ended December 31, 2024; and (ii) a $0.6 million provision to return true-up recorded during the three months ended December 31, 2024 related primarily to the timing of recognition of low income housing tax credits, which did not occur during the three months ended September 30, 2024. The effective tax rate was 31.24% and 28.21% for the three months ended December 31, 2024 and September 30, 2024, respectively.

    Three months ended December 31, 2024, as compared to the three months ended December 31, 2023

    Provision for income taxes increased by $1.7 million, or 39.02%, to $6.1 million for the three months ended December 31, 2024, as compared to $4.4 million for the three months ended December 31, 2023. This increase is due to: (i) the increase in taxable income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023; and (ii) a $0.6 million provision to return true-up recorded during the three months ended December 31, 2024 related primarily to the timing of recognition of low income housing tax credits, which did not occur during the three months ended December 31, 2023. The effective tax rate was 31.24% and 28.72% for the three months ended December 31, 2024 and December 31, 2023, respectively.

    Year ended December 31, 2024, as compared to the year ended December 31, 2023

    Provision for income taxes increased by $0.2 million, or 0.89%, to $19.1 million for the year ended December 31, 2024, as compared to $18.9 million for the year ended December 31, 2023. This increase is due to a $0.6 million provision to return true-up recorded during the year ended December 31, 2024, partially offset by a decline in taxable income year-over-year. The effective tax rate was 29.43% and 28.34% for the years ended December 31, 2024 and December 31, 2023, respectively.

    Webcast Details

    Five Star Bancorp will host a live webcast for analysts and investors on Tuesday, January 28, 2025, at 1:00 pm ET (10:00 am PT), to discuss its fourth quarter and annual financial results. To view the live webcast, visit the “News & Events” section of the Company’s website under “Events” at https://investors.fivestarbank.com/news-events/events. The webcast will be archived on the Company’s website for a period of 90 days.

    About Five Star Bancorp

    Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. The Bank has eight branches in Northern California.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Reports on Form 10-Q for the three months ended March 31, 2024, June 30, 2024, and September 30, 2024, in each case under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission from time to time.

    The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

    Condensed Financial Data (Unaudited)

        Three months ended
    (in thousands, except per share and share data)   December 31, 2024   September 30, 2024   December 31, 2023
    Revenue and Expense Data            
    Interest and fee income   $ 57,745     $ 52,667     $ 46,180  
    Interest expense     24,256       22,281       19,502  
    Net interest income     33,489       30,386       26,678  
    Provision for credit losses     1,300       2,750       800  
    Net interest income after provision     32,189       27,636       25,878  
    Non-interest income:            
    Service charges on deposit accounts     179       165       165  
    Net gain (loss) on sale of securities     —       —       (167 )
    Gain on sale of loans     150       306       317  
    Loan-related fees     400       406       667  
    FHLB stock dividends     332       327       314  
    Earnings on bank-owned life insurance     182       162       155  
    Other income     423       15       485  
    Total non-interest income     1,666       1,381       1,936  
    Non-interest expense:            
    Salaries and employee benefits     8,360       7,969       7,182  
    Occupancy and equipment     649       626       583  
    Data processing and software     1,369       1,327       1,110  
    FDIC insurance     440       405       370  
    Professional services     774       830       658  
    Advertising and promotional     752       584       717  
    Loan-related expenses     321       292       268  
    Other operating expenses     1,823       1,743       1,775  
    Total non-interest expense     14,488       13,776       12,663  
    Income before provision for income taxes     19,367       15,241       15,151  
    Provision for income taxes     6,050       4,300       4,352  
    Net income   $ 13,317     $ 10,941     $ 10,799  
                 
    Comprehensive Income            
    Net income   $ 13,317     $ 10,941     $ 10,799  
    Net unrealized holding (loss) gain on securities available-for-sale during the period     (3,747 )     3,549       5,744  
    Reclassification for net loss on sale of securities included in net income     —       —       167  
    Less: Income tax (benefit) expense related to other comprehensive (loss) income     (1,108 )     1,049       1,747  
    Other comprehensive (loss) income     (2,639 )     2,500       4,164  
    Total comprehensive income   $ 10,678     $ 13,441     $ 14,963  
                 
    Share and Per Share Data            
    Earnings per common share:            
    Basic   $ 0.63     $ 0.52     $ 0.63  
    Diluted   $ 0.63     $ 0.52     $ 0.63  
    Book value per share   $ 18.60     $ 18.29     $ 16.56  
    Tangible book value per share(1)   $ 18.60     $ 18.29     $ 16.56  
    Weighted average basic common shares outstanding     21,182,143       21,182,143       17,175,445  
    Weighted average diluted common shares outstanding     21,235,318       21,232,758       17,193,114  
    Shares outstanding at end of period     21,319,083       21,319,583       17,256,989  
                 
    Credit Quality            
    Allowance for credit losses to period end nonperforming loans     2,101.78 %     2,041.44 %     1,752.70 %
    Nonperforming loans to loans held for investment     0.05 %     0.05 %     0.06 %
    Nonperforming assets to total assets     0.05 %     0.05 %     0.05 %
    Nonperforming loans plus performing loan modifications to loans held for investment     0.05 %     0.05 %     0.06 %
                 
    Selected Financial Ratios            
    ROAA     1.31 %     1.18 %     1.26 %
    ROAE     13.48 %     11.31 %     15.45 %
    Net interest margin     3.36 %     3.37 %     3.19 %
    Loan to deposit     99.38 %     101.87 %     102.19 %


    (1)     See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

        Year ended
    (in thousands, except per share and share data)   December 31, 2024   December 31, 2023
    Revenue and Expense Data        
    Interest and fee income   $ 206,951     $ 174,382  
    Interest expense     87,240       63,502  
    Net interest income     119,711       110,880  
    Provision for credit losses     6,950       4,000  
    Net interest income after provision     112,761       106,880  
    Non-interest income:        
    Service charges on deposit accounts     721       575  
    Net gain (loss) on sale of securities     —       (167 )
    Gain on sale of loans     1,274       1,952  
    Loan-related fees     1,605       1,719  
    FHLB stock dividends     1,320       970  
    Earnings on bank-owned life insurance     644       510  
    Other income     889       1,952  
    Total non-interest income     6,453       7,511  
    Non-interest expense:        
    Salaries and employee benefits     31,709       27,097  
    Occupancy and equipment     2,547       2,218  
    Data processing and software     5,088       4,015  
    FDIC insurance     1,635       1,557  
    Professional services     3,078       2,575  
    Advertising and promotional     2,411       2,403  
    Loan-related expenses     1,207       1,192  
    Other operating expenses     6,818       6,718  
    Total non-interest expense     54,493       47,775  
    Income before provision for income taxes     64,721       66,616  
    Provision for income taxes     19,050       18,882  
    Net income   $ 45,671     $ 47,734  
             
    Comprehensive Income        
    Net income   $ 45,671     $ 47,734  
    Net unrealized holding (loss) gain on securities available-for-sale during the period     (858 )     2,228  
    Reclassification for net loss on sale of securities included in net income     —       167  
    Less: Income tax (benefit) expense related to other comprehensive (loss) income     (254 )     708  
    Other comprehensive (loss) income     (604 )     1,687  
    Total comprehensive income   $ 45,067     $ 49,421  
             
    Share and Per Share Data        
    Earnings per common share:        
    Basic   $ 2.26     $ 2.78  
    Diluted   $ 2.26     $ 2.78  
    Book value per share   $ 18.60     $ 16.56  
    Tangible book value per share(1)   $ 18.60     $ 16.56  
    Weighted average basic common shares outstanding     20,154,385       17,166,592  
    Weighted average diluted common shares outstanding     20,205,440       17,187,969  
    Shares outstanding at end of period     21,319,083       17,256,989  
             
    Credit Quality        
    Allowance for credit losses to period end nonperforming loans     2,101.78 %     1,752.70 %
    Nonperforming loans to loans held for investment     0.05 %     0.06 %
    Nonperforming assets to total assets     0.05 %     0.05 %
    Nonperforming loans plus performing loan modifications to loans held for investment     0.05 %     0.06 %
             
    Selected Financial Ratios        
    ROAA     1.23 %     1.44 %
    ROAE     12.72 %     17.85 %
    Net interest margin     3.32 %     3.42 %
    Loan to deposit     99.38 %     102.19 %
                     

    (1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

    (in thousands)   December 31, 2024   September 30, 2024   December 31, 2023
    Balance Sheet Data            
    Cash and due from financial institutions   $ 33,882     $ 44,531     $ 26,986  
    Interest-bearing deposits in banks     318,461       206,321       294,590  
    Time deposits in banks     4,121       4,118       5,858  
    Securities – available-for-sale, at fair value     98,194       104,238       108,083  
    Securities – held-to-maturity, at amortized cost     2,720       2,720       3,077  
    Loans held for sale     3,247       2,910       11,464  
    Loans held for investment     3,532,686       3,460,565       3,081,719  
    Allowance for credit losses     (37,791 )     (37,583 )     (34,431 )
    Loans held for investment, net of allowance for credit losses     3,494,895       3,422,982       3,047,288  
    FHLB stock     15,000       15,000       15,000  
    Operating leases, right-of-use asset     6,245       6,590       5,284  
    Premises and equipment, net     1,584       1,657       1,623  
    Bank-owned life insurance     19,375       19,192       17,180  
    Interest receivable and other assets     55,554       56,745       56,692  
    Total assets   $ 4,053,278     $ 3,887,004     $ 3,593,125  
                 
    Non-interest-bearing deposits   $ 922,629     $ 906,939     $ 831,101  
    Interest-bearing deposits     2,635,365       2,493,040       2,195,795  
    Total deposits     3,557,994       3,399,979       3,026,896  
    Subordinated notes, net     73,895       73,859       73,749  
    Other borrowings     —       —       170,000  
    Operating lease liability     6,857       7,101       5,603  
    Interest payable and other liabilities     17,908       16,135       31,103  
    Total liabilities     3,656,654       3,497,074       3,307,351  
                 
    Common stock     302,531       302,251       220,505  
    Retained earnings     106,464       97,411       77,036  
    Accumulated other comprehensive loss, net of taxes     (12,371 )     (9,732 )     (11,767 )
    Total shareholders’ equity     396,624       389,930       285,774  
    Total liabilities and shareholders’ equity   $ 4,053,278     $ 3,887,004     $ 3,593,125  
                 
    Quarterly Average Balance Data            
    Average loans held for investment and sale   $ 3,498,109     $ 3,354,050     $ 3,055,042  
    Average interest-earning assets     3,965,867       3,586,572       3,319,300  
    Average total assets     4,057,603       3,678,537       3,399,660  
    Average deposits     3,561,409       3,184,795       3,009,078  
    Average total equity     393,088       384,692       277,295  
                 
    Capital Ratios            
    Total shareholders’ equity to total assets     9.79 %     10.03 %     7.95 %
    Tangible shareholders’ equity to tangible assets(1)     9.79 %     10.03 %     7.95 %
    Total capital (to risk-weighted assets)     13.99 %     13.94 %     12.30 %
    Tier 1 capital (to risk-weighted assets)     11.02 %     10.93 %     9.07 %
    Common equity Tier 1 capital (to risk-weighted assets)     11.02 %     10.93 %     9.07 %
    Tier 1 leverage ratio     10.05 %     10.83 %     8.73 %
                             

    (1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

    Non-GAAP Reconciliation (Unaudited)

    The Company uses financial information in its analysis of the Company’s performance that is not in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations, and cash flows computed in accordance with GAAP. However, the Company acknowledges that its non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with GAAP. Additionally, these non-GAAP measures are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons.

    Tangible shareholders’ equity to tangible assets is defined as total equity less goodwill and other intangible assets, divided by total assets less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholders’ equity to total assets. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible shareholders’ equity to tangible assets is the same as total shareholders’ equity to total assets at the end of each of the periods indicated.

    Tangible book value per share is defined as total shareholders’ equity less goodwill and other intangible assets, divided by the outstanding number of common shares at the end of the period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible book value per share is the same as book value per share at the end of each of the periods indicated.

    Pre-tax, pre-provision income is defined as pre-tax income plus provision for credit losses. The most directly comparable GAAP financial measure is pre-tax income.

    The following reconciliation tables provide a more detailed analysis of this non-GAAP financial measure:

        Three months ended
    (in thousands)   December 31, 2024   September 30, 2024   December 31, 2023
    Pre-tax, pre-provision income            
    Pre-tax income   $ 19,367   $ 15,241   $ 15,151
    Add: provision for credit losses     1,300     2,750     800
    Pre-tax, pre-provision income   $ 20,667   $ 17,991   $ 15,951
        Year ended
    (in thousands)   December 31, 2024   December 31, 2023
    Pre-tax, pre-provision income        
    Pre-tax income   $ 64,721   $ 66,616
    Add: provision for credit losses     6,950     4,000
    Pre-tax, pre-provision income   $ 71,671   $ 70,616


    Investor Contact:
    Heather C. Luck, Chief Financial Officer
    Five Star Bancorp
    (916) 626-5008
    hluck@fivestarbank.com

    Media Contact:
    Shelley R. Wetton, Chief Marketing Officer
    Five Star Bancorp
    (916) 284-7827
    swetton@fivestarbank.com

    The MIL Network –

  • MIL-OSI USA: Welch Convenes Businesses, State Officials to Talk Trump’s Tariffs Threats and the Impact on Vermont’s Local Economy, Hardworking Families 

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)
    ST. ALBANS, VT – Today, U.S. Senator Peter Welch (D-Vt.), a member of the Senate Finance Committee, convened Vermont businesses and state and local leaders for a roundtable discussion on President Trump’s threats to reignite a trade war with Canada and other U.S. trade allies by imposing dramatic tariffs on goods imported from Canada. Senator Welch advocated for a ‘Do No Harm’ policy approach and warned against imposing tariffs that get passed on to the consumer—Vermont families. 
    “We saw the harmful impact of the Trump Tariffs during his first term, and we can’t accept a return to that chaotic trade policy. Canada is Vermont’s biggest trading partner, and one of our most important allies nationally. Our trade relationship needs to be strong, because the success of hardworking families, businesses, farms, and manufacturers depends on it,” said Senator Welch. “President Trump’s plans are still unknown, but what we do know today is that a trade war is not the answer. We need a ‘Do No Harm’ policy. This is about jobs, and this is about the consistency Vermont businesses deserve. I’ll advocate in Washington for Vermonters, and push for open markets, which are necessary to keep our economy strong.”  
    Senator Welch was joined by leaders in the technology, agriculture, energy, services, construction and manufacturing industries. Participants talked about the importance of Canada as an economic partner for Vermont’s local communities, and how the proposed Trump Tariffs could be detrimental to the state’s businesses, farms, and manufacturers, leading to higher costs for hardworking families.  
    View photos from the event below:  
    Sen. Welch was joined today by the Vermont Chamber of Commerce; the Vermont Association of General Contractors; Manufacturing Solutions, Inc.; H20 Innovation; A.N. Deringer, Inc.; Poulin Grain; Green Mountain Power; Vermont State Treasurer Mike Pieciak; Brett Long, Deputy Commissioner, Vermont Department of Economic Development; and Tim Smith, Mayor, St. Albans. 
    Attendees at the roundtable spoke about the impact of the tariffs on their businesses and their concerns regarding President Trump’s rhetoric regarding trade since taking office last week. In many cases, Vermont manufacturers buy inputs from Canada to manufacture into products. However, the ability of Vermont’s small manufacturing businesses to absorb a 25% increase in costs on parts or raw materials is limited. If President Trump follows through on his threats of a 25% tariff on Canada and Mexico, Vermonters could see higher homebuilding costs, increased costs of grain for farmers, more expensive equipment for maple producers, and costlier electricity.   
    The tariffs could also further exacerbate inequalities found within the current U.S. tax system. As trade wars accelerate, some families—especially those with young children—end up being disproportionately impacted by high tariffs, as the U.S. imports 97% of clothing, and infant formulas are hit by tariffs of 17.5%. 

    MIL OSI USA News –

  • MIL-OSI USA: Tuberville Gets Gavel to Key Armed Services Subcommittee

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville
    WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) was announced as Chairman of the Senate Armed Services Subcommittee on Personnel. As the leader of this subcommittee, Sen. Tuberville will lead the charge on staffing key Department of Defense (DOD) military and civilian personnel, policies, compensation and benefits, and military nominations. He will provide oversight on a wide range of military budget accounts and various DOD offices and agencies. His work will ensure servicemembers are taken care of both while in service and in the years following.
    Alabama is home to over 13,000 active-duty military members, over 25,000 National Guard and reserve members, nearly 400,000 veterans, and five military bases. As Chairman, he will be an advocate for these servicemembers by ensuring they have the best resources and care possible.
    Sen. Tuberville made the following statement about his appointment as Chairman of the Subcommittee on Personnel:
    “As Alabama’s voice on the Senate Armed Services Committee, I’m honored to be the Chairman of the Subcommittee on Personnel. As the son of a World War II veteran, I know firsthand the sacrifices that our men and women in uniform make for our country. I will see to it that military personnel are well-compensated and get the benefits they deserve—it’s the least we can do. As Pete Hegseth assembles his team at the Pentagon, we will work tirelessly to make sure they have the support and personnel they need to implement President Trump’s America First agenda and restore peace through strength. As Chairman, I will be laser-focused on enhancing the quality of life for our brave military personnel both during and after their time in service so we can ensure our military remains the most lethal fighting force in the world.”
    Subcommittee on Sea Power:
    As a member of the Subcommittee on Seapower, Sen. Tuberville will continue his work to restore America’s naval superiority and promote Alabama’s shipbuilding and maritime industries. The United States Constitution charges Congress with providing and maintaining a Navy, which our founders saw as critical to the nation’s economic power and the freedoms we enjoy.
    Sen. Tuberville’s position on these subcommittees will enable him to work on these Alabama-related issues:
    Bolstering Alabama’s maritime investment in the Port of Mobile.
    Advancing his work to build our Navy fleet to compete with foreign adversaries.
    Utilizing key shipbuilding industries like Austal in Mobile.
    Subcommittee on Strategic Forces:Since the Subcommittee on Strategic Forces has jurisdiction over U.S. Space Command (SPACECOM), retaining his role on this subcommittee was one of Sen. Tuberville’s top priorities. Sen. Tuberville has led calls for the U.S. Air Force to act on its recommendation to place SPACECOM at Redstone Arsenal in Huntsville, and he is well-positioned to lead the entire Alabama delegation in supporting a smooth transition. This subcommittee also oversees America’s Missile Defense Agency, a responsibility Sen. Tuberville will leverage to protect every American.
    Responsibilities: Nuclear and strategic forces; arms control and non-proliferation programs; space programs; Department of Energy defense nuclear and defense environmental management programs; and ballistic missile defense.
    Oversight of budget accounts: Procurement and RDT&E for DOD nuclear and strategic forces, missile defense, space systems, Department of Energy defense and non-proliferation programs.
    Oversight of DOD and DOE officials: Assistant Secretary of Defense for Nuclear and Chemical and Biological Defense Programs; National Nuclear Security Administration; and Assistant Secretary of Energy (Environmental Management).
    Oversight of agencies, commands, and activities: U.S. Strategic Command; U.S. Space Command, U.S. Space Force as well as other components of the military departments; Space Development Agency; Missile Defense Agency; National Nuclear Security Administration; Defense Nuclear Facilities Safety Board; and Defense Threat Reduction Agency.
    Sen. Tuberville’s service on all three subcommittees will be crucial in empowering Alabama’s military installations across the state.
    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI Global: Carrying the spirit and intent of Murray Sinclair’s vision forward in Treaty 7 territory

    Source: The Conversation – Canada – By Tiffany Dionne Prete, Assistant Professor, Sociology Department, University of Lethbridge

    For nearly three decades, I have immersed myself in archival work to uncover the histories of my People, the Kainai (Blood Tribe) in Treaty 7 territory, in Alberta. What began in childhood as a search for photographs of my ancestors has evolved into a lifelong pursuit of understanding through records and Tribal narratives.

    Unlike my peers who had photo albums of their ancestors, I had none. Cameras were rare in Indigenous communities during the 1800s and early 1900s, leaving few family photographs. Instead, I turned to online archives, hoping to find even a single image. This archival work became a means of reconnecting with my ancestors.

    During my graduate studies at the University of Alberta, this passion for archival research deepened.

    As a research assistant for the Aboriginal Healing through Language and Culture project, I was part of a project that partnered with Roman Catholic Oblate missionaries to view historical records of Indigenous Peoples in the North West, which included my People.

    ‘Indigenous Research: Walking the Path of my Ancestors’ video by Tiffany Prete.

    However, ongoing litigation related to the Residential School Settlement class-action suit limited my access. While I was granted permission to view specific materials, many documents remained restricted, and photocopying was often prohibited. This experience highlighted the persistent barriers Indigenous researchers face when reclaiming their histories and underscored the importance of equitable access to archival records.

    Documenting Survivor testimonies

    Growing up, conversations about residential schools were notably absent in my community. My family and fellow Tribal members rarely spoke of their experiences, and my public education glossed over their existence, perpetuating a widely held belief across Canada that residential schools were benevolent and necessary for Indigenous Peoples’ “advancement.”

    As the child of a residential school Survivor, I grew up with a profound sense of something unspoken yet deeply impactful in our collective history. Silence reflected the profound harm inflicted by the Canadian government and religious organizations operating these schools, leaving scars not just on individuals but across generations. Despite Survivors’ efforts to share their truths, the dominant Canadian narrative continued to portray residential schools as positive contributions to the nation’s development.

    The Truth and Reconciliation Commission (TRC) was pivotal in challenging this false narrative. By documenting Survivor testimonies and exposing the systemic abuses within these institutions, the TRC dismantled the myth of their benevolence. This was more than a historical reckoning; it was a vital step toward acknowledging the truth of Canada’s colonial history and its lasting impact on Indigenous Peoples.

    TRC Calls: 15 years ago

    Fifteen years ago this June, on the day the 94 Calls to Action were released, Murray Sinclair, former chair of the Truth and Reconciliation Commission, stated: “The Survivors need to know before they leave this Earth that people understand what happened and what the schools did to them.”

    Sinclair’s words, coupled with one call in particular, ignited within me a deep commitment to create a program of work that would reclaim and document my Blood People’s history — stories that had long been excluded from Canada’s historical consciousness in favour of a whitewashed, generalized narrative. This commitment responded to Call to Action No. 78 which called upon Canada to commit funding to assist communities to research and produce histories of their own residential school experience and their involvement in truth, healing and reconciliation.

    The work I have been engaged in focuses on using archival records and partnering with Blood Tribe Elders, who are residential school Survivors, to together reinterpret these records. Together, we sought to tell our history through our own lens, using our voices to articulate the policies and experiences of the Stolen Children Era — the era covering over a century and a half where the Canadian government used multiple colonial models of schooling to assimilate Indigenous children.

    ‘The Kinai Stolen Children Era’ talk with Tiffany Prete.

    While conducting research in recent years leading up to an exhibit focusing on experiences of the Stolen Children Era, I noticed some improvements in access to archival materials, but significant barriers remain.

    Processes for accessing restricted documents vary widely, with some archives lacking clear pathways. Policies around documentation also differ — some allow photography under strict guidelines, while others prohibit duplication, limiting researchers to handwritten notes. These challenges, and others, underscore the ongoing need for systemic efforts to ensure Indigenous communities can reclaim their histories and preserve cultural narratives.

    Enduring strength of our people

    Through my archival work, the intentions behind Canada’s residential school system became clear. The education system for Indigenous children sought to create passive, obedient individuals stripped of agency and identity as Indigenous Peoples.

    Yet, within these oppressive records, I have found powerful stories of courage, resistance and resilience.

    These acts, combined with the wisdom of Elders, reflect the enduring strength of our People. Among the greatest examples of collective resistance and resilience is the work of the Truth and Reconciliation Commission.

    I deeply admire the Survivors who broke the silence, initiating the class-action lawsuit that led to the TRC. Their bravery, along with the work of TRC leaders, resulted in powerful reports and the transformative Calls to Action. They remind us of the importance of reclaiming our power and affirm that we, as the Indigenous Peoples of this land, are deserving of dignity and justice.

    Sinclair’s clarity, strength, commitment

    Among those I hold in high regard is the late Sinclair, whose leadership during the TRC was defined by clarity, strength and commitment. He spoke candidly about Canada’s colonial policies and charted a clear path forward.

    In 1988, he became the first Indigenous judge in Manitoba. And he held those responsible for the operations of the schools accountable. His firm approach to justice and reconciliation inspires me, as an intergenerational Survivor, to confront challenges rooted in colonization with strength and resolve.

    As we move forward, let us band together with a shared commitment to treat all people with the dignity and respect they deserve as human beings.

    Reconciliation is not a solitary journey but a collective effort — a promise to do better and honour the truths of our shared history.

    Together, we must right the wrongs of the past, confronting injustice with courage and compassion. Let us carry the spirit and intent of Sinclair’s vision forward, ensuring that the path of reconciliation becomes not just a goal, but a way of living that defines us as a nation.

    Tiffany Dionne Prete 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. Carrying the spirit and intent of Murray Sinclair’s vision forward in Treaty 7 territory – https://theconversation.com/carrying-the-spirit-and-intent-of-murray-sinclairs-vision-forward-in-treaty-7-territory-247617

    MIL OSI – Global Reports –

  • MIL-OSI USA: On Holocaust Remembrance Day, Governor Newsom’s Council on Holocaust and Genocide Education releases findings and recommendations

    Source: US State of California Governor

    Jan 27, 2025

    What you need to know: The Council was tasked with assessing the status of Holocaust and genocide education in California, making recommendations for how to improve that education, and promoting best practices for educators, schools, and organizations and sponsor Holocaust and genocide remembrance.

    Sacramento, California – On International Holocaust Remembrance Day, Governor Gavin Newsom’s Council on Holocaust and Genocide Education today released the “Holocaust and Genocide Education in California: A Study of Statewide Context and Local Implementation.” In 2021, following a disturbing increase in antisemitic hate, Governor Newsom established the Governor’s Council on Holocaust and Genocide Education to identify instructional resources to teach students across California about the Holocaust and other acts of genocide and provide young people with the tools necessary to recognize and respond to instances of antisemitism and bigotry.

    Read the full study HERE.

    “In California, hate is unacceptable, and the shocking decline in awareness among young people about the Holocaust and other acts of genocide is especially alarming. I was proud to establish the Council on Holocaust and Genocide Education and grateful for their work on this comprehensive report. I look forward to reviewing the Council’s recommendations and ensuring that California continues to be a beacon for tolerance, empathy, and education.”

    Governor Gavin Newsom

    How we got here

    The Council assessed the status of Holocaust and genocide education in California, made recommendations for how to improve Holocaust and genocide education in our schools, and will now work to promote best practices for educators, schools and organizations and sponsor Holocaust and genocide remembrance. The Council is co-chaired by State Senator Henry Stern, Attorney General Rob Bonta, State Superintendent of Public Instruction Tony Thurmond and Dr. Anita Friedman, Executive Director, Jewish Family and Children’s Services/Northern California.

    Dr. Anita Friedman, Executive Director, Jewish Family and Children’s Services (JFCS)/Northern California: “California leads  the nation in support for state-of-the art Holocaust and Genocide Education. As a result, our State is systematically creating a more unified society and a more informed, morally courageous and socially responsible next generation. We are inspired by the enthusiastic cooperation  of educators, communities and students in this common cause.”

    State Senator Henry Stern: “On this Yom HaShoah, or Holocaust Remembrance Day, we reaffirm the plea to ‘Never Forget.’ Never forget our ancestors, the unimaginable horrors endured, and the systemic failures that allowed such atrocities to unfold. We remember not only to honor our ancestors but to safeguard against history repeating itself. Understanding the patterns of genocide that occurred to numerous groups worldwide, is essential in fostering empathy, combatting hate, and upholding our collective moral responsibility. We have to ensure that our students are learning this complex subject matter so they are equipped to enter a society increasingly rife with misinformation. I’m proud that this critical report will allow us to invest in the resources, teacher training, and curriculum necessary to equip our students with factual information to break the cycle of history repeating itself.”

    Attorney General Rob Bonta: “There is no place for hate in California. The California Department of Justice is committed to combatting all forms of hate and bigotry, and to building a more just, empathetic society for our children. Acknowledging the truth and teaching our youth are crucial steps toward ensuring that we don’t repeat the atrocities of our past. I’m grateful to our state partners and the Council on Holocaust and Genocide Education for their work and recommendations to continue fighting antisemitism and intolerance through education and beyond.”

    State Superintendent of Public Instruction Tony Thurmond: “We must counter hate wherever and whenever it rears its head, and especially in our schools. Every child must feel safe to learn, and every child should feel that they belong on their school campus. It takes strong leaders to end hate and foster understanding. I am proud to stand alongside nearly 100 school and district leaders and antibias practitioners as we commit to use the power of education to end hate across California.”

    “I’m grateful for the work of the Governor’s Council Holocaust and Genocide Education for identifying gaps in education on the Holocaust and other genocides. This education is vital as history often repeats itself if unchecked. Young people are our future leaders, and this education equips them with the tools to recognize and respond to antisemitism and bigotry in all forms. California must always stand for love, tolerance, and understanding. Securing that future begins with a strong foundation of empathy and understanding amongst our youth population.”

    First Partner Jennifer Siebel Newsom

    Key findings

    Key findings of the study released today show that while some districts have developed robust programs, the overall landscape remains fragmented, with success often dependent on individual educator initiative. Local Educational Agency (LEA) representatives emphasized the need for state-level support – ultimately pointing to the necessity of a systematic, state-supported approach to ensure the kind of equitable, high-quality Holocaust and genocide education statewide that the Council envisions.   

    Respondents highlighted increased student knowledge, heightened empathy, and higher levels of engagement as key successes of their Holocaust and genocide education efforts. However, the study uncovered significant gaps in implementation support. The majority of respondents shared that their LEAs did not provide professional development focused on Holocaust and genocide education. 

    The California-focused analysis revealed that while the state has made significant strides, including recent legislation and funding allocations, there are opportunities to further align and amplify these efforts.

    Recommendations

    Drawing on these comprehensive findings, this report offers 10 recommendations to strengthen Holocaust and genocide education in California:

    1. Communicate California’s Vision for Holocaust and Genocide Education
    2. Revise the California History–Social Science Content Standards
    3. Revise the History–Social Science Framework for California Public Schools
    4. Update, Distribute, and Provide Guidance for the Model Curriculum for Human Rights and Genocide
    5. Continue to Create a Vetted Central Clearinghouse for Curriculum, Instruction, Assessment, and Professional Learning
    6. Increase Direct Funding to Districts and Schools for Holocaust and Genocide Education
    7. Expand Existing Statewide Professional Learning on Holocaust and Genocide Education
    8. Monitor and Evaluate Educational Outcomes
    9. Continue to Conduct Additional Research to Inform the Council’s Future Actions
    10. Expand, Publicize, and Strengthen the Role of the Governor’s Council on Holocaust and Genocide Education

    Fighting hate

    Governor Newsom has long made the eradication of discrimination and hate a priority. Working with the Jewish Caucus and Legislature, the Newsom administration successfully secured millions of dollars to ensure that future generations of Californians never forget the lessons of past genocides, including millions of dollars to develop curriculum resources related to Holocaust and genocide education, such the Holocaust Museum LA, the JFCS Holocaust Center, the Museum of Tolerance, and the California Teachers Collaborative for Holocaust and Genocide Education. 

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    MIL OSI USA News –

  • MIL-OSI USA: Senators Reverend Warnock, Ossoff, Colleagues Condemn Pardons of January 6 Capitol Attackers

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia

    Senators Reverend Warnock, Ossoff, Colleagues Condemn Pardons of January 6 Capitol Attackers

    The resolution condemning the pardons comes after Trump pardoned over 1,500 Jan 6 insurrectionists – including those convicted of violently assaulting police officers
    The Senators will seek unanimous consent to pass the resolution this week
    Senator Reverend Warnock: “Pardoning violent criminals who carried out this unabashed and unembarrassed assault on our democracy is not only an immense injustice but blatant disrespect to the courageous law enforcement officers who protected our Capitol and fought to preserve our republic that day”
    Senator Ossoff: “I condemn in the strongest terms President Trump’s disgraceful pardon of more than 1,000 criminals, many of them violent, who overran the U.S. Capitol, desecrated the seat of our democracy, and assaulted law enforcement in their failed attempt to prevent the peaceful transfer of power”
    Washington, D.C. — Today, U.S. Senators Reverend Raphael Warnock (D-GA), Jon Ossoff (D-GA), and 45 colleagues introduced a new resolution condemning the pardons of individuals who were found guilty of assaulting U.S. Capitol Police Officers. 
    The resolution follows President Trump’s decision to, on the first day of his second term, grant full, complete, and unconditional pardons to over 1,500 people charged 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 pled 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.
    “Pardoning violent criminals who carried out this unabashed and unembarrassed assault on our democracy is not only an immense injustice but blatant disrespect to the courageous law enforcement officers who protected our Capitol and fought to preserve our republic that day,” said Senator Reverend Warnock. “These pardons create a permission structure to excuse political violence and further endanger our law enforcement.”
    “I condemn in the strongest terms President Trump’s disgraceful pardon of more than 1,000 criminals, many of them violent, who overran the U.S. Capitol, desecrated the seat of our democracy, and assaulted law enforcement in their failed attempt to prevent the peaceful transfer of power,” Senator Ossoff said.
    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.” The Senators will seek unanimous consent on the Senate floor this week to pass the resolution.
    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.
    In addition to Senators Warnock and Ossoff, the resolution was authored by Democratic Leader Chuck Schumer (D-NY), Senators Patty Murray (D-WA), Chris Murphy (D-CT), and Andy Kim (D-NJ), and cosponsored by Senators Angela Alsobrooks (D-MD), Tammy Baldwin (D-WI), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Lisa Blunt Rochester (D-DE), Cory Booker (D-NJ), Maria Cantwell (D-WA), Chris Coons (D-DE), Catherine Cortez Masto (D-NV), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Ruben Gallego (D-AZ), Kirsten Gillibrand (D-NY), Maggie Hassan (D-NH), Martin Heinrich (D-NM), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Tim Kaine (D-VA), Mark Kelly (D-AZ), Angus King (I-ME), Amy Klobuchar (D-MN), Ben Ray Luján (D-NM), Ed Markey (D-MA), Jeff Merkley (D-OR), Alex Padilla (D-CA), Gary Peters (D-MI), Jack Reed (D-RI), Jacky Rosen (D-NV), Bernie Sanders (I-VT), Brian Schatz (D-HI), Adam Schiff (D-CA), Jeanne Shaheen (D-NH), Elissa Slotkin (D-MI), Tina Smith (D-MN), Chris Van Hollen (D-MD), Mark Warner (D-VA), Elizabeth Warren (D-MA), Peter Welch (D-VT), Sheldon Whitehouse (D-RI), and Ron Wyden (D-OR). In total 47 senators signed the resolution.
    The resolution can be viewed HERE.

    MIL OSI USA News –

  • MIL-OSI USA: WATCH: Senator Reverend Warnock Pushes for Key Commitments from Agriculture Nominee to Support Georgia Farmers and Families

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia

    WATCH: Senator Reverend Warnock Pushes for Key Commitments from Agriculture Nominee to Support Georgia Farmers and Families

    At today’s Senate Agriculture committee hearing, Senator Reverend Warnock questioned Brooke Rollins, President Trump’s nominee to run the United States Department of Agriculture (USDA)
    Senator Reverend Warnock pushed for key commitments to ensure disaster assistance is distributed both swiftly and equitably, Georgia farmers are protected from the high costs associated with trade wars, and more
    Following the catastrophic damage of Hurricane Helene in September 2024, Senator Reverend Warnock helped secure nearly $21 billion in disaster relief funding for farmers as well as $10 billion in economic assistance for row crops farmers, including cotton and peanut farmers in Georgia; if confirmed, Ms. Rollins will oversee the distribution of this funding
    Senator Reverend Warnock also pushed Rollins on how she would protect Georgia farmers from high costs associated with trade wars and expanding market access 
    Senator Reverend Warnock: “Farmers, as you know, do incredible work. It’s a tough business. There’s so much you don’t control. The margins are narrow, and so I do everything I can to protect my growers in Georgia. I cannot overstate how critical it is for USDA to distribute this assistance, this disaster assistance to Georgia farmers as quickly as possible–but also as equitably as possible. If confirmed, how will you work to ensure disaster assistance is distributed both swiftly and equitably?”
    Senator Reverend Warnock: “Farmers in Georgia are already concerned about potential retaliatory actions following President Trump’s promises to levy heavy tariffs. They are already dealing with slim margins due to high input costs, and the last thing they need is to be caught in the middle of a trade war that could drive-up food prices for all of us”

    Watch Senator Reverend Warnock at Thursday’s Agriculture nominee hearing  HERE and  HERE
    Washington, D.C. – Today, during a U.S. Senate Agriculture committee hearing on the nomination of Brooke Rollins to lead the United States Department of Agriculture (USDA), U.S. Senator Reverend Raphael Warnock (D-GA) pushed for key commitments from Rollins to ensure disaster assistance is distributed both swiftly and equitably, Georgia farmers are protected from the high costs associated with trade wars, and more. The Senator also pushed Rollins to commit to protecting Fort Valley State’s partnership with USDA and to removing red tape from low-income children and families receiving nutrition benefits.
    If confirmed, Rollins would oversee USDA’s rollout of disaster funding for farmers Senator Warnock secured in December. Following the catastrophic damage of Hurricane Helene in September 2024, Senator Warnock fought for the inclusion of agricultural disaster funding in any end-of-year government funding package, which included nearly $21 billion in disaster relief funding for farmers as well as $10 billion in economic assistance for row crops farmers, including cotton and peanut farmers in Georgia.
    “Farmers, as you know, do incredible work. It’s a tough business. There’s so much you don’t control. The margins are narrow, and so I do everything I can to protect my growers in Georgia. I cannot overstate how critical it is for USDA to distribute this assistance, this disaster assistance to Georgia farmers as quickly as possible–but also as equitably as possible. If confirmed, how will you work to ensure disaster assistance is distributed both swiftly and equitably?,” Senator Reverend Warnock asked. 
    As a veteran member of the Senate committee overseeing federal agriculture policies, and as a senator representing a state with a proud and prosperous history of agriculture excellence, Senator Warnock is vigilant in defending programs that help Georgia farmers keep more profits in their pockets and keep the industry at the frontlines of Georgia’s success.
    “Farmers in Georgia are already concerned about potential retaliatory actions following President Trump’s promises to levy heavy tariffs. They are already dealing with slim margins due to high input costs, and the last thing they need is to be caught in the middle of a trade war that could drive-up food prices for all of us. If confirmed, what will you do from your position at USDA to ensure that Georgia’s farmers and families aren’t caught up in a trade war? It’s something I have worked on with Republicans, helping to get our farmers’ goods to market, it’s something we think about a lot,” said Senator Reverend Warnock. 
    Watch the first part of the Senator’s remarks  HERE and the second part  HERE.
    See below a transcript of key exchanges between Senator Warnock and USDA nominee Brooke Rollins (remarks have been lightly edited for clarity):
    On federal disaster assistance for Georgia farmers 
    SRW: Last year I worked hard with my colleagues in a bipartisan manner to provide $21 billion to help farmers recover from natural disasters like Hurricane Helene. Farmers, as you know, do incredible work. It’s a tough business. There’s so much you don’t control. The margins are narrow, and so I do everything I can to protect my growers in Georgia. I cannot overstate how critical it is for USDA to distribute this assistance, this disaster assistance to Georgia farmers as quickly as possible–but also as equitably as possible. If confirmed, how will you work to ensure disaster assistance is distributed both swiftly and equitably?
    Brooke Rollins (BR): Yes sir, thank you, and I’ll try to answer quickly so we can go on. The day I got the call from President Trump, it was Saturday, November 23rd. We were in our motorhome traveling across the country to an Aggie football game. Within a few hours of accepting the nomination, I began to immediately pivot to how we distribute this disaster and so important economic aid working with a few of the senators on this committee. Clearly I am not confirmed yet, so this is going to await my arrival. But in the meantime, sir, we’ve already announced the undersecretary who worked on this in the last Trump administration who is already building the team who distributed these funds so they know what they’re doing. We’re not reinventing the wheel.
    SRW: Will you work with our state agriculture commissioner to ensure Georgia producers, including our foresters, have the support they need from USDA to get that assistance without having to jump through a bunch of bureaucratic hoops?
    BR: Of course.
    SRW: And will you also commit to equitably getting that assistance to all eligible farmers, all eligible farmers, including those who’ve been historically left out of USDA assistance, often due to discrimination.
    BR: Sir, we will follow the law and ensure that that is the case.
    SRW: Is that a yes or a no?
    BR: Yes.
    On protecting Georgia farmers from costs of trade wars
    SRW: Farmers in Georgia are already concerned about potential retaliatory actions following President Trump’s promises to levy heavy tariffs. They are already dealing with slim margins due to high input costs, and the last thing they need is to be caught in the middle of a trade war that could drive-up food prices for all of us. If confirmed, what will you do from your position at USDA to ensure that Georgia’s farmers and families aren’t caught up in a trade war? It’s something I have worked on with Republicans, helping to get our farmers’ goods to market, it’s something we think about a lot.
    BR: When I was in your office last month we talked about your commitment to your farmers and what a priority this was to you. Georgia is a very important agricultural state. You’re obviously pastoring in a church and in the United States Senate, but I was impressed at your commitment to your ag community in your state and look forward to continuing to work with you. It’s very clear the coming tariffs, and I think there is no doubt President Trump has been very transparent that he believes this is an extremely important tool in his toolkit to put America first, to revive the economy, to get us back to a place where he believes we need to be, and I agree with him and hope to help him execute that vision. But it also should not be surprising that his heart and his commitment to our farmers and our agriculture community was certainly clear in the last administration. The number one answer from my perspective is working around the clock to expand market access and working on new trade deals and getting new partners from around the world. I already have an undersecretary named, hopefully get him confirmed, so we can begin to build those teams. The president is a consummate dealmaker, and I feel very confident we will be able to expand those markets, begin to peel back the trade deficit, and get back to trade surpluses. But immediately moving into the distribution of disaster relief, economic relief, the new farm bill that’s coming out, I’ve already announced the undersecretary and put the team in place to be able to deploy that.
    SRW: I agree with you that access to farm markets is critical and in Georgia we’ve got a lot of sectors that are relying on strong export markets: timber, poultry, pecans. Are you concerned that isolationist trade practices may harm our abilities, our farmers’ ability to access these foreign markets?
    BR: I have full confidence in President Trump’s ability to lead us on this, and, and hopefully he and many of you have confidence in my ability to help from the ag perspective.
    On supporting 1890 land grant institutions
    SRW: Ms. Rollins, good morning and welcome to you and to your family and all those who are here to support you and congratulations on your nomination. I enjoyed meeting with you last month to discuss your nomination and plans for USDA, and this morning I’d just like to follow up on some of the issues, many of which we’ve already discussed. But first, it has come to my attention that a recent executive order has led to the potential termination of USDA’s liaisons to our 1890 land grant institutions, institutions like Fort Valley State University in Fort Valley, Georgia. There’s strong bipartisan support for these institutions. They’ve done an incredible job, often doing so much for so many with so very little for such a long time that it’s lost on people the work these institutions do every day. I’m deeply concerned about this and the actions to shut out their voices at USDA. Ms. Rollins, if you are confirmed, will you commit to supporting our 1890 institutions?
    BR: I am not familiar with exactly what you’re speaking of, but my commitment to you is to find out and to continue a really important discussion and to learn more about the issue.
    SRW: Well the executive order could lead to the potential termination of USDA’s liaisons to these 1890 institutions which helped them to navigate their relationship with the USDA. Can I have your commitment to protect those who serve these institutions at the USDA?
    BR: Again, sir, I would want to know more and understand more before I can make that commitment, but clearly, those institutions are important. They are bipartisan supported, and you have my commitment to have a very robust dialogue at any moment, any time of day or night, to ensure that we have all the data as we’re making any decisions.
    SRW: I appreciate that. I’ve had good relationships and good work, bipartisan work, supporting these institutions, and I hope you’ll keep your eye on that issue.
    BR: I will.
    On fighting hunger and protecting nutritional benefits
    SRW: Fighting hunger has long been a part of my life’s work long before I was elected to the Senate. As you know, I’m a pastor, and the one miracle story that’s in all the gospels, all four, is the feeding of the 5000. And so I constantly hear from Georgia families about how their dollar just doesn’t go as far at the grocery store as it used to. The average Georgian participating in SNAP, a food assistance program that provides critical nutrition, aid to our most vulnerable families, has about $6.15 a day to spend on food. In your view, is $6.15 a day adequate to avoid hunger for Georgia families.
    BR: Sir, this is a supplemental program. I am just getting my arms around it. There are few that will be in my role, if confirmed, that have a passion for this more than I do. Serving those who are most in need, as you and I discussed in your office, is a driving force of my entire life. It almost sent me to seminary, but I ended up in public policy instead, so you have my wholehearted commitment to look and ensure that the people who need this the most are receiving it in the best way possible, but at the same time ensuring that all of the tax dollars that are spent on it are also spent in the best way possible.
    SRW: One of the things as these families struggle, one of the things that I’m concerned about are proposals to slash this critical assistance and create additional work verification red tape for families participating in these programs. Do you think creating more bureaucratic red tape for families will help them purchase nutritious food?
    BR: I think it’s extremely important that we take a wholesale look at every one of these programs and ensure that they are serving the people that are needing the programs and that they are the safety net that they truly set out to be. Obviously I do not like the words bureaucracy or red tape, but ensuring that we have set up the appropriate lifelines and the appropriate structure so that we can get these resources to the families that need them the most.
    SRW: As we talk about work requirements, and I support work, I was raised by a father and a mother who had a serious work ethic, but we want to help these families have a basic safety net. Most poor people are children. I think it’s important to remember that most poor people are children. SNAP lifts children, seniors, veterans, and folks with disabilities out of poverty, and it’s proven to reduce health care costs and stimulate our local economies. If you’re confirmed, I hope we can find ways to work together to ensure our most vulnerable families and our neighbors can afford groceries. I think, as someone who preaches the miracle of the feeding of 5000, I think it’s the right thing to do, but I also think it’s a smart thing to do.
    BR: Yes sir, you have my commitment.
    On combating the history of racial discrimination in USDA
    SRW: USDA has a long documented and unfortunate history of racial discrimination, even recent history. I was proud to have secured funding in the Inflation Reduction Act to provide financial assistance to farmers who had previously experienced discrimination at the hands of their USDA farm lending programs. This was a meaningful step in rebuilding trust. However, USDA still has a lot of work to do and this will only be more difficult following the new administration’s executive order aimed at rolling back all of this progress. I was proud Congress passed my legislation in 2021 to require USDA to create an equity commission, and the commission’s final report provides an excellent road map for continuing this work. Chair Boozman, without objection, I would like to enter the USDA’s 2024 equity report into the record. Thank you so much. When we met last month, you promised to read the equity report. Have you gotten a chance to read it yet?
    BR: 90 pages and 66 recommendations. Yes, sir. Now that has been about a little over a month ago, so please don’t ask me to quote page 66, but yes.
    SRW: I’m glad you got a chance to read it. I understand it’s been removed from the website or there’s no access to it. I’m glad you got a chance to read it. Will you seriously consider the recommendations of the equity commission’s report if you’re confirmed?
    BR: Senator, let me answer this way. I was really appreciative of the conversation. For me, more knowledge is always best, understanding where everyone comes from, whether I agree or disagree, recognizing what’s in the past is important, but also realizing the path ahead and how we forge the path…
    SRW: Will you consider the recommendations?
    BR: Sir, I will consider anything that’s on the table. I think that’s only fair, but also, President Trump won on the concept of removing the diversity, equity and inclusion, making sure that we are basing our decisions on merit, and I obviously support that 100% as well, but I look forward, Senator, to continuing to talk about this. My friend Alveda has long talked to me about the plight of black farmers in Georgia and other places around the country, and I’m always open to discussions, always, and may I say there is no room for racism at the United States Department of Agriculture. 
    SRW: In that regard, will you commit to recruiting more diverse employees who understand these communities, have relationships with these communities, so that we build trust between these communities and the lending office?
    BR: Sir, my commitment is to recruit the best workforce in the history of the United States Department of Agriculture, period, full stop. I believe that will include many members of all different corners of our country.
    SRW: Do you think a diverse workforce and a high-quality workforce are somehow oppositional objectives?
    BR: I think always hiring based on who is the best person for the job, who is gonna do the most excellent service, who is best equipped to execute on all of the promises is the promise of America, but I also believe to your point and have long held that ensuring that we give all people a chance to succeed and to thrive and for equal opportunity is a bedrock foundational principle of America.

    MIL OSI USA News –

  • MIL-OSI New Zealand: The State of the Nation

    Source: ACT Party

    The Haps

    Public hearings for the Treaty Principles Bill have begun. David Seymour kicked off proceedings, throwing down the gauntlet on equal rights and fielding questions from hostile MPs. His submission to the Justice Committee is a must-watch.

    Even people who say there should be no bill seem to want the debate. The hearings are a major milestone for New Zealand, it is now possible for ordinary people to go to Parliament and say they are equal.

    The State of the Nation

    David Seymour’s 2025 State of the Nation speech has been overwhelmed with praise from those who attended and watched it online. If you missed it, the video is here and we have reproduced the text below.

    Thank you, Brooke, for your kind introduction. I’m biased, but I think you’re the Government’s most quietly effective Minister. Your labour law reforms are making it easier to employ workers and to be employed. Your minimum wage increases are announced early to give business certainty, and relief. You are taking on two of the hardest chestnuts in the workplace – holiday pay and health and safety – by listening to the people affected. You’ve put together an honest Royal Commission on COVID-19, and got wait times down for new passports and Citizenships. All the while you attract growing respect as a hard-working local MP here in Tamaki.

    It’s easy to forget Brooke’s 32. She has the biggest future in New Zealand politics.

    The only problem with mentioning one ACT MP is they’re all kicking goals with both feet, so you have to mention the lot. Nicole McKee is speeding up the court system, rewriting the entire Arms Act to make New Zealand safer, and reforming anti-money laundering laws so people can business done.

    Andrew Hoggard handles the country’s biosecurity, managing would-be outbreaks with steady hands. He is also dealing to Significant Natural Areas that erode farmers’ property rights and correcting the naïve treatment of methane that punishes the whole country.

    He’s able to do that in large part because of the work Mark Cameron did, and continues to do. From 2020 onwards he scared the bejesus out of every other party in rural New Zealand. He shifted the whole political spectrum right on the split gas approach, SNAs, and freshwater laws. Now the Government is changing those policies. As Chair of the Primary Production Committee, Mark stays in the headlines championing rural New Zealand every week. He is the definition of an effective MP.

    Karen Chhour is the embodiment of ACT values. Her life gives her more excuses than anyone in Parliament, but she makes none, and she accepts none. She is reforming the government department that let her down when she was small. If every New Zealander had Karen’s attitude and values, we’d be a country with no problems.

    Perhaps the biggest single policy problem we face is the Resource Management Act. Somone once said you can fill a town hall to stop anything in this country, but you can’t fill a telephone box to get something started. In steps Simon Court who, with Chris Bishop, is designing new resource management laws based on property rights. That’s an ACT policy designed to unleash the latent wealth our country has by letting people develop and use the property they own.

    Our new MPs that you helped elect last year are also making their marks. Todd Stephenson has picked up the End of Life Choice baton, with a bill to extend compassion and choice to those who suffer the most: those with long-term, degenerative illnesses. Parmjeet Parmar is one of the hardest working MPs I have seen, and a great chair of the Economic Development, Science and Innovation Committee. Cam Luxton and Laura McClure speak to a new generation of young parents who want their children to grow up in a free society.

    If you gave your Party Vote to ACT last year, you can be proud of the New Zealanders you put in Parliament to represent you. I am proud to lead this team of free thinkers in our House of Representatives, and I think we can all be proud of their efforts.

    New Zealand’s origin story: a nation of immigrants

    The summer is a good time to think about the state of our nation, and I got to thinking about who we are and how we got here. Whatever troubles we may face today, I couldn’t help coming back to something that unites New Zealand.

    Our country at its best is a place that welcomes hopeful people from all over the earth. People with different languages, religions and cultures united by one thing. When you look at the map it jumps out at you. We are the most remote country on Earth. If you’ve never stood at Cape Reinga and looked out to see wide open spaces for 10,000 kilometres, you owe it to yourself just once.

    It shows that one thing makes us all different from the rest of the world. No matter when or where you came from, you or your ancestors once travelled farther than anyone to give your children and theirs a better tomorrow.

    That is the true Kiwi spirit. Taking a leap into the unknown for a chance at better. Compared with what divides us, our spirit as a nation of pioneers unites us ten times over. Migrating from oppression and poverty for freedom and prosperity is what it means to be Kiwi.

    If that bright and optimistic side of our psyche, got half as much time as the whinging, we would all be better off. We would see ourselves as people unafraid of challenges, freed from conformity, with the power to decide our best days are always ahead of us.

    New Zealand’s inherent tension: two tribes

    I got to wondering why that isn’t a more popular story. Why do we cut down tall poppies? Why do we value conformity over truth? Why do people who came here for a better life grow up disappointed and move away again?

    I believe our nation is dominated by two invisible tribes. One, I call ‘Change Makers’. People who act out the pioneering spirit that built our country every day. We don’t just believe it is possible to make a difference in our own lives; we believe it’s an obligation.

    Change makers load up their mortgage to start a business and give other people jobs. They work the land to feed the world. They save up and buy a home that they maintain for someone else to live in. They study hard to extend themselves. They volunteer and help out where they can. They take each person as they find them. They don’t need to know your ancestry before they know how to treat you.

    Too often, they get vilified for all of the above. I know there’s many people like that in this room today. ACT people are Change Makers; we carry the pioneering spirit in our hearts.

    Then there’s the other tribe – people building a Majority for Mediocrity. They would love nothing more than to go into lockdown again, make some more sourdough, and worry about the billions in debt another day.

    They blame one of the most successful societies in history for every problem they have. They believe that ancestry is destiny. They believe people are responsible for things that happened before they were born, but criminals aren’t responsible for what they did last week.

    Far from believing people can make a difference in their own lives, they believe that their troubles are caused by other people’s success. They look for politicians who’ll cut tall poppies down – politicians who say to young New Zealanders ‘if you study hard, get good grades, get a good job, save money, and invest wisely, we’ll tax you harder’.

    I wasn’t kidding about the lockdowns; they were a litmus test. In early 2022, after this city had been locked down for months, and the borders had been closed for two years, a pollster asked New Zealanders if they’d like to be locked down again for Omicron.

    Now, I know it’s painful to think back, but bear with me. Omicron spread more easily than any earlier variant. It was also less harmful if you caught it. That was especially so because we were then among the most vaccinated nations on earth. The damage to business, education, non-COVID healthcare, and the government’s books was already massive and painful.

    And yet, 48 per cent of New Zealanders wanted another lockdown for Omicron. 46 per cent didn’t. That for me put the tribes into sharp relief. If you were a business owner who needed to open, a parent worried about missed education, a migrant missing their family, or just someone who wanted their life back, you wanted to open.

    When the Government finally lifted restrictions, many of those people left. Real estate agents report people selling because they’re moving to Australia every day. This is where the balance between these two invisible tribes comes into focus.

    Remember the gap in that poll was two per cent. Since the borders opened a net 116,000 citizens have left New Zealand. That’s a touch over two per cent.

    A tipping point

    The more people with get up and go choose to get up and leave, the less attractive it is for motivated people to stay here.

    Muldoon once quipped, ‘New Zealanders who leave for Australia raise the IQ of both countries.’ Actually, New Zealanders who leave for Australia  are tipping us towards a Majority for Mediocrity. Motivated New Zealanders leaving is good news for the shoplifters, conspiracy theorists, and hollow men who make up the political opposition.

    A few more good people leaving is all they need for their Majority of Mediocrity. The more that aspirational, hardworking people get up and leave New Zealand, the more likely it is we’ll get left-wing governments in the future.

    That’s why I say we’re at a tipping point.

    There’s another reason why the mediocrity majority is growing, young people feel betrayed and disillusioned.

    A new generation looks at the housing market and sees little hope. Imagine you’re someone who’s done it all right, you listened to your teacher and did your homework. You studied for a tertiary education like everyone told you. Now you have $34,000 in debt, you start on $60,000, and you see the average house is 900,000 or fifteen times your (before tax) income.

    Nobody can blame a young person for wondering if they aren’t better off overseas. Many decide they are. Those who stay are infected  by universities  with the woke mind viruses of identity politics, Marxism, and post-modernism.

    Feeling like you’ll never own your own capital asset at the same time as some professor left over from the Cold War tells you about Marx is a dangerous combination.

    This is the other political tipping point that risks manufacturing a majority for mediocrity. A bad housing market and a woke education system combined are a production line for left-wing voters.

    The hard left prey on young New Zealanders. They tell them that their problems are caused by others’ success. That they are held back by their identity, but if they embrace identity politics, they can take back what’s theirs. Their mechanism is a new tax on wealth.

    These are the opposite of the spirit brings New Zealanders to our shores in the first place. The state of our nation is that we’re at a tipping point , and what we do in the next few years will decide which way we go.

    The short-term outlook is sunny, but only because Labour was so bad.

    We can afford to hope that this year will be better than 2024. By that standard, 2025 will be a success. Interest rates will be lower. The Government will have stopped wasting borrowed money, banning things, punishing employers, landlords, farmers, and anyone else trying to make a difference, with another layer of red tape.

    In fact, we have a Government that’s saving money, cutting red tape, and paring back identity politics. With those changes we will see more hope than we’ve seen in years, and hopefully a slowdown in citizens leaving. That is good, it’s welcome, and ACT is proud to be part of the coalition Government that’s doing it.

    ACT is needed to be brave, articulate, and patriotic

    The truth is, though, it’s easy to do a better job of Labour over 12 months. It’s much harder to muster the courage to keep making difficult decisions over several years, even if they’re not immediately popular. Our nation is in a century of decline. Just stopping one Government’s stupid stuff and waiting for a cyclical recovery won’t change the long-term trend. We need to be honest about the challenges we face and the changes needed to overcome them.

    We need to act like a country at risk of reaching a tipping point and losing its first world status. We are facing some tough times, and tough times require tough choices to be made.

    ACT’s goal is to keep the Government, and make it better. We may have gone into Government, but we never went into groupthink. It’s the role of ACT to be the squeaky wheel, pointing out where the Government needs to do better.

    The Government cannot measure itself by just being better than Labour. Instead, we need to ask ourselves, is this policy good enough to make New Zealand a first world country that people want to stay in?

    It’s easy to have big plans, we are the world, but charity begins at home. We need to focus only on what the government does, and ensure it does it well.

    We need to think carefully about three areas of government activity: spending, owning, and regulating. There is nothing the government does that doesn’t come down to one of those three things.

    Why government spends a dollar it has taxed or borrowed, and whether the benefits of that outweigh the costs.

    Why government owns an asset, and whether the benefits to citizens outweigh the costs to taxpayers of owning it.

    Why a restriction is placed on the use and exchange of private property, and whether the benefits of that regulation outweigh the costs on the property owner.

    When it comes to spending, we have a burning platform.

    Last year the economy shrunk by one per cent, even as the population grew slightly thanks to births and inbound migration. This year the Government is planning to borrow $17 billion, about $10 billion is for interest on debt, and we’ll have to pay interest on that debt the following year. Next year, government debt will exceed $200 billion.

    There lots of reasons why this situation will get harder.

    We’ve claimed an exclusive economic zone of four million square kilometres by drawing a circle around every offshore island we could name. We spend less than one per cent of GDP defending it, while our only ally, across the ditch, spends twice that.

    Put another way, we’re a country whose government gives out $45 billion in payments each year but spends only $3.2 billion defending the place. Does that sound prudent to you? Doubling defense would cost another $3.2 billion per year, effectively paying more for what we already have. We may face pressure to do just that thanks to US foreign policy.

    There’s a tail wind on balancing the books, and it’s affecting every developed country, our population is ageing faster than it’s growing.

    Every year around 60,000 people turn sixty-five and become eligible for a pension. To the taxpayer, superannuation expenses increase by $1.4 billion each year.

    Healthcare spending has gone from $20 billion to $30 billion in five years, but people are so dissatisfied that healthcare is now the third biggest political issue. Put it another way, we are now spending nearly $6,000 per citizen on healthcare.

    How many people here would give up their right to the public healthcare system if they got $6,000 for their own private insurance? Should we allow people to opt out of the public healthcare system, and take their portion of funding with them so they can go private?

    Education is similar. We spend $20 billion of taxpayer money every year, and every year 60,000 children are born. By my count that’s $333,000 of lifetime education spending for each citizen.

    How many people would take their $333,000 and pay for their own education? How many young New Zealanders would be better off if they did it that way?

    Instead of spending next year because we did it this year, we need to ask ourselves, if we want to remain a first world country, then do New Zealanders get a return on this spending that justifies taking the money off taxpayers in the first place? If spending doesn’t stack up, it should stop so we can repay debt or spend the money on something that does.

    Then there’s the $570 billion, over half a trillion dollars of assets, the government owns. The one thing we know from state houses, hospital projects, and farms with high levels of animal death, is that the government is hopeless at owning things.

    But did you know you own Quotable Value, a property valuation company chaired by a former race relations conciliator that contracts to the government of New South Wales?

    What about 60,000 homes? The government doesn’t need to own a home to house someone. We know this because it also spends billions subsidising people to live in homes it doesn’t own. On the other hand, the taxpayer is paying $10 billion a year servicing debt, and the KiwiBuild and Kainga Ora debacles show the government should do as little in housing as possible.

    There are greater needs for government capital. We haven’t built a harbour crossing for nearly seven decades. Four hundred people die every year on a substandard road network. Beaches around here get closed thanks to sewerage overflow, but we need more core infrastructure. Sections of this city are being red zoned from having more homes built because the council cannot afford the pipes and pumping stations.

    We need to get past squeamishness about privatisation and ask a simple question: if we want to be a first world country, then are we making the best use of the government’s half a trillion dollars’ plus worth of assets? If something isn’t getting a return, the government should sell it so we can afford to buy something that does.

    Finally, there’s regulation. That is placing restrictions on the use and exchange of property that the government doesn’t own or hasn’t taxed off the people who earned it already. That is, your property. Bad regulation is killing our prosperity in three ways.

    It adds costs to the things we do. It’s the delays, the paperwork, and the fees that make too many activities cost more than they ought to. It’s the builder saying it takes longer to get the consent than it took to build the thing. It’s the anti-money laundering palaver that ties people in knots doing basic things but somehow doesn’t stop criminals bringing in half a billion dollars of P each year. It’s the daycare centre that took four years to open because different departments couldn’t agree about the road noise outside. I could go on all afternoon.

    Then there’s the things that just don’t happen because people decide the costs don’t add up once the red tape is factored in.

    Then there’s the big one that goes to the heart of our identity and culture. It’s all the kids who grow up in a country where people gave up or weren’t allowed to try. It’s the climbing wall at Sir Edmund Hillary’s old school with signs saying don’t climb. It’s the lack of nightlife because it’s too hard to get a license. It’s the fear that comes from worrying WorkSafe or some other regulator will come and shut you down. You can’t measure it, but we all know it’s there.

    The Kiwi spirit we are so proud of is being chipped away and killing our vibe. Nobody migrated here to be compliant, but compliance is infantilising our culture, and I haven’t even mentioned orange cones yet.

    If we want to remain first world, we need to change how we regulate. No law should be passed without showing what problem is being solved, whether the benefits outweigh the costs, and who pays the costs and gets the benefits. These are the basic principles of the Regulatory Standards Bill that the Government will pass this year.

    Conclusion

    Of course, the Government IS doing many things that will change how it operates. There is a drive to reduce waste. There is a drive to get more money from overseas investment. The Regulatory Standards Bill will change how we regulate. The Resource Management Act is being replaced. Anti-money laundering laws are being simplified. Charter schools are opening, more roads are being built. These are all good things.

    But make no mistake, our country has always been the site of a battle between two tribes. The effect of emigration, and the world faced by young New Zealanders risks creating a permanent majority for mediocrity. Our country is at a tipping point.

    We need honest conversations about why government spends, owns, and regulates, and whether those policies are good enough to secure our future as a first world nation.

    You may have seen the ACT Party has been involved in a battle to define the principles of the Treaty democratically. It’s caused quite a stir. If you missed it, please check out treaty.nz where we outline what it’s about. It may still succeed this time, or it may be one of those bills that simply breaks the ground so something like it can proceed in the future.

    Either way, the tribe of change makers has a voice. People who want equal rights for all New Zealanders to be treated with respect and dignity because they’re citizens have a position that others need to refute. Good luck to them arguing against equal rights.

    It also shows something else, that ACT is the party prepared to stand up when it’s not easy and it’s not popular. That’s exactly the type of party our country needs in our Government.

    To all the Change Makers who proudly put us there, thank you, and no matter how daunting this tipping point may feel, together we can ensure our best days are still ahead of us.

    MIL OSI New Zealand News –

  • MIL-OSI: Oxford Park Income Fund, Inc. Announces December Net Asset Value and Declaration of Distributions for the Months Ending April, May, and June 2025

    Source: GlobeNewswire (MIL-OSI)

    GREENWICH, Conn., Jan. 27, 2025 (GLOBE NEWSWIRE) — Oxford Park Income Fund, Inc. (“Oxford Park”, “the Fund”, “our”) announced today the following financial results and related information:

    • On January 24, 2025, the Board of Directors of the Fund declared the following distributions on our common shares of beneficial interest as follows:
    Month Ending Record Date Payment Date Amount Per Share
    April 30, 2025 April 23, 2025 April 30, 2025 $0.30
    May 31, 2025 May 23, 2025 May 30, 2025 $0.30
    June 30, 2025 June 23, 2025 June 30, 2025 $0.30
           
    • The unaudited Net Asset Value (“NAV”) per share as of December 31, 2024, stood at:
    Class A: Net asset value, per share $27.71
    Class I: Net asset value, per share $27.70
    Class L: Net asset value, per share $27.59

    The fair value of the Fund’s portfolio investments may be materially impacted after December 31, 2024, by circumstances and events that are not yet known. To the extent the Fund’s portfolio investments are impacted by market volatility in the U.S. or worldwide, the Fund may experience a material impact on its future net investment income, the fair value of its portfolio investments, its financial condition and the financial condition of its portfolio investments. Investing in our securities involves a number of significant risks. For a discussion of the additional risks applicable to an investment in our securities, please refer to the section titled “Risks” in our prospectus and any subsequent filings with the Securities and Exchange Commission, as applicable.

    The financial data included in this press release has been prepared by, and is the responsibility of, Oxford Park Income Fund, Inc.’s management. PricewaterhouseCoopers LLP has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to the financial data. Accordingly, PricewaterhouseCoopers LLP does not express an opinion or any other form of assurance with respect thereto.

    About Oxford Park Income Fund, Inc.

    The Fund is registered under the Investment Company Act of 1940, as a non-diversified, closed-end management investment company, that continuously offers its common shares and is operated as a “tender offer fund”. The Fund currently seeks to achieve its investment objective of maximizing risk-adjusted total returns as the Fund identifies opportunities in the CLO market through its network of broker-dealers, agent banks, and collateral managers. The Fund primarily invests in debt and equity tranches of CLO vehicles. The Fund’s investment strategy may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle.

    Disclaimer

    There is no assurance that the Fund will continue to declare distributions or that they will continue at these rates. Distributions may be comprised of any combination of net investment income and/or net capital gain, and, if the Fund distributes an amount in excess of net investment income and net capital gains, a portion of such distribution will constitute a return of capital. A return of capital distribution may reduce the amount of investable funds. The ultimate tax character of the Fund’s earnings cannot be determined until tax returns are prepared after the end of the fiscal year. The information provided is based on estimates available as of December 31, 2024. Shareholders should know that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares.

    Forward-Looking Statements

    This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events, except as may be required by law.

    Securities Disclosure

    This press release is provided for informational purposes only, does not constitute an offer to sell securities of the Fund and is not a prospectus. Such offering is only made by the Fund’s prospectus, which includes details as to the Fund’s offering and other material information. Securities offered through Skyway Capital Markets, LLC, member FINRA and SIPC. Skyway Capital Markets, LLC and Oxford Funds, LLC are not affiliated. Investing in the Fund involves risk of loss of some or all principal invested. Speak to your tax professional prior to investing. This is neither an offer to sell nor a solicitation to purchase any security. Please refer to the prospectus for additional information about the Fund. The prospectus should be read carefully before investing.

    Contact:
    Bruce Rubin
    203-983-5280

    The MIL Network –

  • MIL-OSI Security: Crimestoppers GNO and U.S. Marshals New Orleans Task Force Operation Boo Dat Concludes with Over 50 Arrests and an Endangered Teen Recovery

    Source: US Marshals Service

    New Orleans, LA – Crimestoppers Greater New Orleans (GNO) and the U.S. Marshals Service New Orleans Task Force sponsored their annual Operation Boo Dat 2024 from Oct. 22, 2024, to Jan. 18, 2025.  The operation was a partnership between New Orleans Police Department, Orleans Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, Kenner Police Department, St. Bernard Parish Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Louisiana Probation and Parole, Homeland Security Investigations, and USMS New Orleans Task Force resulted in 51 arrests, with 16 of the arrests being for felony sex offender registration violations.  A missing/endangered 13-year-old female was also recovered for NOPD during the operation and that recovery led to an immigration violation arrest of a 16-year-old male who was believed to have been involved in juvenile gang activity across the New Orleans metro area.  Twenty-one of the 51 arrested fugitives were arrested during the operation on felony warrants related to open sex-based offenses.  Crimestoppers GNO provided critical support during the operation to include a media released photo spread of 31 fugitives.  The photo spread resulted in the arrests or clearing of 11 of the photo spread targets.  The 20 remaining targets are still at large and Crimestoppers GNO rewards are available for information that leads to their arrest.

    During the operation, sex offender compliance checks were also conducted in Orleans, Jefferson, St. Bernard, and St. Tammany parishes.  These compliance checks require law enforcement officers to physically visit the sex offender’s reported address of residence to verify that the offender still lives at the provided address.  Countless hours of follow-up investigative work are often required during and after a compliance check.  The compliance checks led to the arrests of 16 fugitives wanted for violating their sex offender registration (Failure to Register or Update as a Sex Offender—FTR).  Several of the FTR arrests were based off Crimestoppers GNO tips.    

    Highlights of Operation Boo Dat 2024 included:

    — The Nov. 1, 2024, arrest of Kevin Dubon-Carrasco, who was wanted by JPSO on an October 2024 warrant for sexual battery, indecent behavior with juveniles, and domestic abuse battery-child endangerment. The alleged victim was an 8-year-old child.  Dubon-Carrasco was arrested in the 3300 block of Green Acres, Metairie, and later rebooked with immigration violations.

    — The Nov. 6, 2024, arrest of Michael K. Brooks on an August 2024 NOPD warrant for aggravated battery by shooting, home invasion, and first-degree rape.  He was also wanted out of Fort Smith, Arkansas, on an active warrant for aggravated assault.  After an almost three-hour standoff with Brooks fleeing on foot through a neighborhood in the 2400 block of Sixth Street, he was finally arrested with assistance from NOPD Special Operations Division.

    — The Nov. 13, 2024, USMS Missing Child Unit recovery of an endangered 13-year-old female runaway for NOPD.  She had been listed as a runaway for NOPD 3rd District earlier in November. She had a prior history of running away and allegations of prior sexual abuse.  It was determined via investigation that she was associated with alleged teenage gang members known to operate in New Orleans and Jefferson Parish and be in possession of firearms and rifles.  With critical assistance from HSI and SBPSO she was recovered in Chalmette, and a 16-year-old male was taken into immigration custody based on the female’s recovery.

    — The Nov. 19, 2024, arrest of Jose Briseno-Molina, who was wanted by the Montgomery County Texas Sheriff’s Office on a warrant for aggravated sexual assault of children.  The alleged victims were under the age of 13.  Briseno-Molina is alleged to have fled Texas to Jefferson Parish, working at a barber shop to raise money before allegedly planning to flee to Mexico.  USMS Southern District of Texas contacted the USMS New Orleans Task Force for assistance and, with critical support from JPSO, the task force arrested Briseno-Molina in the 700 block of Terry Parkway in Jefferson Parish. An ICE immigration hold was also placed on him.  

    — The Dec. 4, 2024, arrest of Ashley Karl Carambat, wanted on a November 2024 STPSO warrant for pornography involving juveniles under the age of 13 and aggravated crimes against nature.   Information was developed by the USMS New Orleans Task Force that Carambat had relocated to the Mobile, Alabama, area and a collateral lead was sent to the USMS Gulf Coast Regional Fugitive Task Force, who arrested her in Spanish Fort, Alabama.

    — The Dec. 19, 2024, arrest of Jalil Jonas Williams on an NOPD warrant for second-degree murder. Williams, who was on active LA P&P supervision, is alleged to have murdered a Cox Cable technician in the 8000 block of Dwyer Road Dec. 16, 2024.  He was also wanted for an attempted armed robbery in the French Quarter and is a person of interest in another armed robbery in Jefferson Parish.  With assistance from a Crimestoppers GNO tip he was arrested at the New Orleans Bus/Train Station where he was awaiting a bus to allegedly flee from New Orleans.  He was in possession of a firearm at the time of his arrest.

    — The Dec. 20, 2024, arrest of Parnell Wilson, wanted by the Tangipahoa Parish Sheriff’s Office on a July 2024 warrant for two counts of first-degree rape of a child (an 8-year-old girl).  Wilson was on active Louisiana Probation and Parole supervision. The USMS New Orleans Task Force, working with LA P&P, developed information that Wilson was going back and forth between New Orleans and Tangipahoa Parish and refusing to comply with his supervision.  He was finally arrested at the LA P&P Office in New Orleans based on work done by the USMS New Orleans Task Force and LA P&P.  

    “Operation Boo Dat demonstrates the commitment of the U.S. Marshals Service, Crimestoppers GNO, and our local law enforcement to protect our communities from violence and exploitation,” said Eastern District of Louisiana U.S. Marshal Enix Smith III.

    “Together, we will continue to prioritize the safety and well-being of our residents and hold accountable those who threaten them.”  

    Any information can be provided to the U.S. Marshals Service at (504) 589-6872 or via email at usms.wanted@usdoj.gov.  Crimestoppers GNO may also be contacted with tips at (504) 822-1111.
     

    MIL Security OSI –

  • MIL-OSI United Nations: Security Council Adopts Presidential Statement Acknowledging Inputs for 2025 Review of 20-Year-Old UN Peacebuilding Architecture

    Source: United Nations General Assembly and Security Council

    Meetings Coverage

    9850th Meeting (PM)

    The Security Council today noted that the upcoming review of the UN peacebuilding architecture in 2025 will be the fourth, marking the structure’s twentieth anniversary.  Unanimously adopting a presidential statement (to be issued as S/PRST/2025/3), the 15-member Council also noted with appreciation the Secretary-General’s report on Peacebuilding and Sustaining Peace on 27 December 2024 and took note of the Peacebuilding Commission’s inputs for the 2025 review, through its letter dated 13 November 2024. It also acknowledged submission of a letter dated 21 November 2024 by the Group of Independent Eminent Persons and the inputs from thematic and regional consultations. 

    Lastly, the Council looked forward to the outcome of the 2025 review and the consideration of its recommendations.

    The review offers an opportunity to reflect on two decades of peacebuilding efforts and assess the effectiveness of the current architecture.  Its outcome will shape the future direction of the UN’s peacebuilding initiatives, reinforcing its commitment to preventing conflict and sustaining peace worldwide.

    Peacebuilding

    For information media. Not an official record.

    MIL OSI United Nations News –

  • MIL-OSI: Timberland Bancorp’s First Fiscal Quarter Net Income Increases to $6.86 Million

    Source: GlobeNewswire (MIL-OSI)

    • Quarterly EPS Increases 12% to $0.86 from $0.77 One Year Ago
    • Quarterly Return on Average Assets Increases to 1.41%
    • Quarterly Return on Average Equity Increases to 11.03%
    • Quarterly Net Interest Margin Increases to 3.64%

    HOQUIAM, Wash., Jan. 27, 2025 (GLOBE NEWSWIRE) — Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $6.86 million, or $0.86 per diluted common share for the quarter ended December 31, 2024.  This compares to net income of $6.36 million, or $0.79 per diluted common share for the preceding quarter and $6.30 million, or $0.77 per diluted common share, for the comparable quarter one year ago.

    “We started off our 2025 fiscal year on solid footing, with net income, earnings per share and profitability metrics all improving compared to the prior quarter,” stated Dean Brydon, Chief Executive Officer.  “Fiscal first quarter net income and earnings per share increased 8% and 9%, respectively, compared to the prior quarter, reflecting an improvement in our net interest margin and lower provisions for credit losses compared to the prior quarter.  Compared to the first fiscal quarter a year ago, net income and earnings per share increased 9% and 12%, respectively.  In addition to all key performance metrics improving compared to the prior quarter and year ago quarter, tangible book value per share continued to trend upward.”

    “As a result of Timberland’s solid earnings and strong capital position, our Board of Directors announced a quarterly cash dividend to shareholders of $0.25 per share, payable on February 28, 2025, to shareholders of record on February 14, 2025,” stated Jonathan Fischer, President and Chief Operating Officer.  “This represents the 49th consecutive quarter Timberland will have paid a cash dividend.” 

    “A highlight of the quarter was our net interest margin expanding six basis points to 3.64%, compared to the preceding quarter,” said Marci Basich, Chief Financial Officer.  “The improvement was primarily driven by a reduction in funding costs as the weighted average cost of interest-bearing liabilities decreased by eight basis points during the quarter.  Total deposits decreased $17 million, or 1%, during the quarter, in part due to some larger customers ending the calendar year with lower balances, while total borrowings stayed unchanged at $20 million compared to the prior quarter end.”

    “While we experienced an increase in loan originations during the quarter, they were more than offset by a significant increase in loan payoffs, resulting in a 1% decrease in net loans compared to the prior quarter end,” Brydon continued.  “Some of the larger payoffs were on participation loans, as well as our largest substandard loan.  Credit quality metrics are also holding up relatively well.  While we experienced higher than normal net charge-offs during the quarter of $242,000 related to one loan, all other credit quality metrics improved.  Non-performing assets improved to 16 basis points of total assets at the end of the first quarter, compared to 20 basis points three months earlier, total delinquencies decreased by 10% during the quarter and non-accrual loans decreased by nearly 30%.  We remain encouraged by the overall strength of our loan portfolio and opportunities for loan growth in our markets.” 

    “During the quarter we were excited to partner with the Federal Home Loan Bank of Des Moines and their Member Impact Fund grant program.  Timberland applied for grants on behalf of 43 local non-profit organizations in our market areas and we were pleased that all were approved.  The Member Impact Fund provided $3 for every $1 we donated to an eligible non-profit organization in our community.  In total, $772,000 was donated to 43 local non-profit organizations.  We were thrilled to be a part of the grant program that helped make a positive impact and advance housing and community development needs in the communities we serve,” added Fischer.

    Earnings and Balance Sheet Highlights (at or for the periods ended December 31, 2024, compared to December 31, 2023, or September 30, 2024):

       Earnings Highlights:

    • Earnings per diluted common share (“EPS”) increased 9% to $0.86 for the current quarter from $0.79 for the preceding quarter and 12% from $0.77 for the comparable quarter one year ago;
    • Net income increased 8% to $6.86 million for the current quarter from $6.36 million for the preceding quarter and 9% from $6.30 million for the comparable quarter one year ago;
    • Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.03% and 1.41%, respectively;
    • Net interest margin (“NIM”) for the current quarter expanded to 3.64% from 3.58% for the preceding quarter and 3.60% for the comparable quarter one year ago; and
    • The efficiency ratio for the current quarter improved to 56.27% from 56.79% for the preceding quarter and 56.50% for the comparable quarter one year ago.

      Balance Sheet Highlights:

    • Total assets decreased 1% from the prior quarter and increased 1% year-over-year;
    • Net loans receivable decreased 1% from the prior quarter and increased 6% year-over-year;
    • Total deposits decreased 1% from the prior quarter and increased slightly (less than 1%) year-over-year;
    • Total shareholders’ equity increased 2% from the prior quarter and increased 5% year-over-year; 27,260 shares of common stock were repurchased during the current quarter for $883,000;
    • Non-performing assets to total assets ratio was 0.16% at December 31, 2024 compared to 0.20% at September 30, 2024 and 0.18% at December 31, 2023;
    • Book and tangible book (non-GAAP) values per common share increased to $31.33 and $29.37, respectively, at December 31, 2024; and
    • Liquidity (both on-balance sheet and off-balance sheet) remained strong at December 31, 2024 with only $20 million in borrowings and additional secured borrowing line capacity of $656 million available through the Federal Home Loan Bank (“FHLB”) and the Federal Reserve.

    Operating Results

    Operating revenue (net interest income before the provision for credit losses plus non-interest income) for the current quarter increased 1% to $19.67 million from $19.48 million for the preceding quarter and increased 5% from $18.80 million for the comparable quarter one year ago.  The increase in operating revenue compared to the preceding quarter was primarily due to an increase in interest income from loans and a decrease in funding costs, which was partially offset by a decrease in non-interest income and decreases in interest income on investment securities and interest bearing deposits in banks.

    Net interest income increased $423,000, or 3%, to $16.97 million for the current quarter from $16.55 million for the preceding quarter and increased $966,000 or 6%, from $16.00 million for the comparable quarter one year ago.  The increase in net interest income compared to the preceding quarter was primarily due a $12.72 million increase in average total interest-earning assets and a decrease in the weighted average cost of interest-bearing liabilities to 2.62% from 2.70% for the preceding quarter.  Timberland’s NIM for the current quarter expanded to 3.64% from 3.58% for the preceding quarter and 3.60% for the comparable quarter one year ago.  The NIM for the current quarter was increased by approximately 3 basis points due to the collection of $115,000 in pre-payment penalties, non-accrual interest, and late fees and the accretion of $8,000 of the fair value discount on acquired loans.  The NIM for the preceding quarter was increased by approximately one basis point due to the collection of $20,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $7,000 of the fair value discount on acquired loans.  The NIM for the comparable quarter one year ago was increased by approximately three basis points due to the collection of $142,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $10,000 of the fair value discount on acquired loans.

    A $52,000 provision for credit losses on loans was recorded for the quarter ended December 31, 2024.  The provision was primarily due to changes in the composition of the loan portfolio and net charge-offs.  This compares to a $444,000 provision for credit losses on loans for the preceding quarter and a $379,000 provision for credit losses on loans for the comparable quarter one year ago.  In addition, a $20,000 recapture of credit losses on unfunded commitments and a $5,000 recapture of credit losses on investment securities were recorded for the current quarter. 

    Non-interest income decreased $235,000, or 8% to $2.70 million for the current quarter from $2.93 million for the preceding quarter and decreased $101,000, or 4%, from $2.80 million for the comparable quarter one year ago.  The decrease in non-interest income compared to the preceding quarter was primarily due to a decrease in gain on sales of loans and smaller changes in several other categories.  

    Total operating (non-interest) expenses for the current quarter increased $5,000, or less than 1%, to $11.07 million from $11.06 million for the preceding quarter and increased $443,000, or 4%, from $10.62 million for the comparable quarter one year ago.  The increase in operating expenses compared to the preceding quarter was primarily due to increases in salaries and employee benefits and smaller increases in several other expense categories.  These increases were partially offset by decreases in deposit operations expense, and smaller decreases in several other expense categories.  The efficiency ratio for the current quarter was 56.27% compared to 56.79% for the preceding quarter and 56.50% for the comparable quarter one year ago.  

    The provision for income taxes for the current quarter increased $141,000, or 9%, to $1.71 million from $1.57 million for the preceding quarter, primarily due to higher taxable income. Timberland’s effective income tax rate was 20.0% for the quarter ended December 31, 2024 compared to 19.8% for the quarter ended September 30, 2024 and 19.7% for the quarter ended December 31, 2023.  

    Balance Sheet Management

    Total assets decreased $14.00 million, or 1%, during the quarter to $1.91 billion at December 31, 2024 from $1.92 billion at September 30, 2024 and increased $14.37 million, or 1%, from $1.90 billion one year ago.  The decrease during the current quarter was primarily due to an $11.20 million decrease in investment securities, a $9.70 million decrease in net loans receivable and smaller decreases in several other categories.  These decreases were partially offset by smaller increases in several other asset categories. 

    Liquidity

    Timberland has continued to maintain a strong liquidity position, both on-balance sheet and off-balance sheet.  Liquidity, as measured by the sum of cash and cash equivalents, CDs held for investment, and available for sale investment securities, was 15.0% of total liabilities at December 31, 2024, compared to 14.7% at September 30, 2024, and 12.7% one year ago.  Timberland had secured borrowing line capacity of $656 million available through the FHLB and the Federal Reserve at December 31, 2024.  With a strong and diversified deposit base, only 19% of Timberland’s deposits were uninsured or uncollateralized at December 31, 2024.  (Note: This calculation excludes public deposits that are fully collateralized.)

    Loans

    Net loans receivable decreased $9.70 million, or 1%, during the quarter to $1.41 billion at December 31, 2024 from $1.42 billion at September 30, 2024.  This decrease was primarily due to a $15.47 million increase in the undisbursed portion of construction loans, a $3.43 million decrease in commercial business loans and a $2.17 million decrease in commercial real estate loans.  These decreases were partially offset by a $7.32 million increase in one- to four-family loans, a $1.55 million increase in construction loans and smaller increases in several other loan categories.

    Loan Portfolio
    ($ in thousands)

      December 31, 2024   September 30, 2024   December 31, 2023
      Amount   Percent   Amount   Percent   Amount   Percent  
    Mortgage loans:                        
       One- to four-family (a) $   306,443        20 %   $   299,123        20 %   $  263,122     18 %  
       Multi-family       177,861     12           177,350     11          147,321              10    
       Commercial       597,054     39           599,219     40          579,038             40    
       Construction – custom and                        
    owner/builder       124,104     8           132,101     9          134,878             9      
       Construction – speculative
                one-to four-family    		          8,887      1            11,495      1            17,609             1    
       Construction – commercial        22,841      2            29,463      2            36,702             3    
       Construction – multi-family        48,940      3            28,401      2            57,019             4    
       Construction – land                             
                development        15,977      1            17,741      1            18,878             1    
       Land        30,538      2            29,366      2            28,697             2    
    Total mortgage loans   1,332,645           88       1,324,259           88        1,283,264            88    
                             
    Consumer loans:                        
       Home equity and second                        
    mortgage        48,851     3            47,913     3           39,403              3    
       Other          2,889     —              3,129     —             2,926              —    
    Total consumer loans        51,740     3            51,042     3           42,329              3    
                             
    Commercial loans:                        
         Commercial business loans      135,312      9          138,743      9          136,942              9    
         SBA PPP loans            204      —                260      —                 423              —    
               Total commercial loans      135,516      9          139,003      9          137,365              9    
    Total loans   1,519,901      100 %     1,514,304      100 %      1,462,958     100 %  
    Less:                        
    Undisbursed portion of                        
    construction loans in                        
            process   (85,350 )         (69,878 )           (104,683 )      
    Deferred loan origination                        
    fees   (5,444 )         (5,425 )              (5,337 )      
    Allowance for credit losses   (17,288 )         (17,478 )             (16,655 )      
    Total loans receivable, net $   1,411,819         $     1,421,523         $ 1,336,283        

    _______________________
    (a)     Does not include one- to four-family loans held for sale totaling $411, $0, and $1,425 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. 

    The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of December 31, 2024:

    CRE Loan Portfolio Breakdown by Collateral
                 ($ in thousands)

    Collateral Type    

    Balance

    		   Percent of
    CRE
    Portfolio    		   Percent of
    Total Loan
    Portfolio    		   Average
    Balance Per
    Loan    		   Non-
    Accrual
    Industrial warehouse   $    126,435      21 %     8 %   $   1,228   $ 195
    Medical/dental offices     84,786   14     6       1,265     —
    Office buildings     67,600   11     4       768     —
    Other retail buildings     52,313    9     3       545     —
    Mini-storage     33,773    6     2       1,351     —
    Hotel/motel     32,367    5     2       2,697     —
    Restaurants     27,977    5     2       560     273
    Gas stations/conv. stores     24,881    4     2       1,037     —
    Churches     15,874    3     1       934     —
    Nursing homes     13,745    2     1       1,964     —
    Mobile home parks     10,694    2     1       465     —
    Shopping centers     10,648    2     1       1,774     —
    Additional CRE     95,961   16     6       706         230
         Total CRE   $    597,054   100 %   39 %   $      913   $    698

    Timberland originated $72.07 million in loans during the quarter ended December 31, 2024, compared to $48.82 million for the preceding quarter and $88.93 million for the comparable quarter one year ago.  Timberland continues to originate fixed-rate one- to four-family mortgage loans, a portion of which are sold into the secondary market for asset-liability management purposes and to generate non-interest income.  During the current quarter, fixed-rate one- to four-family mortgage loans totaling $2.31 million were sold compared to $5.62 million for the preceding quarter and $3.80 million for the comparable quarter one year ago.  

    Investment Securities
                                                
    Timberland’s investment securities and CDs held for investment decreased $13.93 million, or 5%, to $241.50 million at December 31, 2024, from $255.43 million at September 30, 2024.  The decrease was primarily due to maturities of U.S. Treasury investment securities (classified as held to maturity) and scheduled amortization.  Partially offsetting these decreases, was the purchase of additional U.S. government agency mortgage-backed investment securities and U.S. Treasury investment securities, all of which were classified as available for sale.

    Deposits

    Total deposits decreased $17.25 million, or 1%, during the quarter to $1.63 billion at December 31, 2024, from $1.65 billion at September 30, 2024.  The quarter’s decrease consisted of a $15.51 million decrease in money market account balance, a $10.21 million decrease in non-interest bearing account balances, and a $9.92 decrease NOW checking account balances. These decreases were partially offset by a $17.53 million increase in certificate of deposit account balances and an $852,000 increase in savings account balances.

    Deposit Breakdown
    ($ in thousands)    		  
        December 31, 2024    September 30, 2024   December 31, 2023   
        Amount   Percent     Amount   Percent   Amount   Percent  
    Non-interest-bearing demand   $ 402,911      25 %     $ 413,116      25 %   $ 433,065      27 %  
    NOW checking     323,412   20       333,329   20       389,463   24    
    Savings     206,845   13       205,993   13       215,948   13    
    Money market     311,413   19       326,922   20       269,686   17    
    Certificates of deposit under $250     212,764   13       205,970   12       181,762   11    
    Certificates of deposit $250 and over     122,997   7       113,579   7       96,145   6    
    Certificates of deposit – brokered     50,074   3       48,759   3       41,000   2    
        Total deposits   $ 1,630,416   100 %     $ 1,647,668   100 %   $ 1,627,069   100 %  

    Borrowings

    Total borrowings were $20.00 million at both December 31, 2024 and September 30, 2024.  At December 31, 2024, the weighted average rate on the borrowings was 3.97%.

    Shareholders’ Equity and Capital Ratios

    Total shareholders’ equity increased $3.79 million, or 2%, to $249.20 million at December 31, 2024, from $245.41 million at September 30, 2024, and increased $11.83 million, or 5%, from $237.37 million at December 31, 2023.  The quarter’s increase in shareholders’ equity was primarily due to net income of $6.86 million, which was partially offset by the payment of $1.99 million in dividends to shareholders, an $812,000 change in the accumulated other comprehensive income (loss) category for fair value adjustments on available for sale investment securities, and the repurchase of 27,260 shares of common stock for $883,000 (an average price of $32.38 per share).  There were 127,906 shares available to be repurchased in accordance with the terms of its existing stock repurchase plan at December 31, 2024.

    Timberland remains well capitalized with a total risk-based capital ratio of 19.95%, a Tier 1 leverage capital ratio of 12.32%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.34%, and a shareholders’ equity to total assets ratio of 13.05% at September 30, 2024.  Timberland’s held to maturity investment securities were $156.11 million at December 31, 2024, with a net unrealized loss of $8.44 million (pre-tax).  Although not permitted by U.S. Generally Accepted Accounting Principles (“GAAP”), including these unrealized losses in accumulated other comprehensive income (loss) (“AOCI”) would result in a ratio of shareholders’ equity to total assets of 12.75%, compared to 13.05%, as reported.

    Asset Quality

    Timberland’s non-performing assets to total assets ratio improved to 0.16% at December 31, 2024, compared to 0.20% at September 30, 2024 and 0.18% at December 31, 2023.  Net charge-offs totaled $242,000 for the current quarter compared to net charge-offs of $12,000 for the preceding quarter and net charge-offs of $2,000 for the comparable quarter one year ago.  During the current quarter, provisions for credit losses of $52,000 on loans were made, which was partially offset by a $20,000 recapture of credit losses on unfunded commitments and a $5,000 recapture of credit losses on investment securities.  The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.21% at December 31, 2024, compared to 1.21% at September 30, 2024 and 1.23% one year ago.

    Total delinquent loans (past due 30 days or more) and non-accrual loans decreased $458,000 or 10%, to $4.02 million at December 31, 2024, from $4.49 million at September 30, 2024.  Non-accrual loans decreased $1.15 million, or 30%, to $2.73 million at December 31, 2024 from $3.89 million at September 30, 2024.  The quarterly decrease in non-accrual loans was primarily due to decreases in commercial business loans and commercial real estate loans on non-accrual status.

    Non-Accrual Loans
    ($ in thousands)

      December 31, 2024   September 30, 2024   December 31, 2023
      Amount   Quantity   Amount   Quantity   Amount   Quantity
    Mortgage loans:                      
         One- to four-family $       47   1   $    49   1   $    602   4
         Commercial   698   5     1,158   6     683   2
         Construction – custom and                      
              owner/builder   —   —     —   —     150   1
              Total mortgage loans   745   6     1,207   7     1,435   7
                           
    Consumer loans:                      
         Home equity and second                      
              mortgage   587   3     618   3     171   1
         Other   —   —     —   —     —   —
              Total consumer loans   587   3     618   3     171   1
                           
    Commercial business loans   1,401    11     2,060    8     1,760   6
    Total loans $ 2,733   20   $ 3,885   18   $ 3,366   14

               
    Timberland had two properties classified as other real estate owned (“OREO”) at December 31, 2024:

      December 31, 2024   September 30, 2024   December 31, 2023
      Amount   Quantity   Amount   Quantity   Amount   Quantity
    Other real estate owned:                      
         Commercial $ 221   1   $ —   —   $ —   —
         Land   —   1     —   1     —   1
              Total mortgage loans $ 221   2   $ —   1   $ —   1

                   

    About Timberland Bancorp, Inc.
    Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank.  The Bank opened for business in 1915 and primarily serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 23 branches (including its main office in Hoquiam).     

    Disclaimer

    Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements relate to our financial condition, results of operations, plans, objectives, future performance or business.  Forward-looking statements are not statements of historical fact, are based on certain assumptions and often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”  Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential 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 potential recession or slowed economic growth; continuing elevated levels of inflation and the impact of current and future monetary policies of the Board of Governors of the Federal Reserve System (“Federal Reserve”) in response thereto; the effects of any federal government shutdown; credit risks of lending activities, including any deterioration in the housing and commercial real estate markets which may lead to increased losses and non-performing loans in our loan portfolio resulting in our ACL not being adequate to cover actual losses and thus requiring us to materially increase our ACL through the provision for credit losses; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve and of our bank subsidiary by the Federal Deposit Insurance Corporation (“FDIC”), the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; 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; legislative or regulatory changes that adversely affect our business including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans in our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; 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; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our business strategies; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; the quality and composition of our securities portfolio and the impact if any adverse changes in the securities markets, including on market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board (“FASB”), including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact 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; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks described elsewhere in this press release and in the Company’s other reports filed with or furnished to the Securities and Exchange Commission. 

    Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon management’s beliefs and assumptions at the time they are made.  We do not undertake and specifically disclaim any obligation to publicly update or revise any forward-looking statements included in this press release to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise.  In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur and we caution readers not to place undue reliance on any forward-looking statements. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s consolidated financial condition and results of operations as well as its stock price performance.

    TIMBERLAND BANCORP INC. AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF INCOME    		   Three Months Ended
    ($ in thousands, except per share amounts) (unaudited)   Dec. 31,   Sept. 30,   Dec. 31,
         2024     2024     2023 
      Interest and dividend income            
      Loans receivable   $ 21,032     $ 20,589     $ 18,395  
      Investment securities     2,138       2,237       2,311  
      Dividends from mutual funds, FHLB stock and other investments     86       95       91  
       Interest bearing deposits in banks     2,001       2,114       1,699  
          Total interest and dividend income     25,257       25,035       22,496  
                   
      Interest expense            
      Deposits     8,084       8,277       6,143  
      Borrowings     203       211                  349  
           Total interest expense     8,287       8,488       6,492  
           Net interest income     16,970       16,547       16,004  
      Provision for credit losses – loans     52       444       379  
      Recapture of credit losses – investment securities     (5 )     (13 )     (10 )
      Prov. for (recapture of ) credit losses – unfunded commitments     (20 )     59       (33 )
          Net int. income after provision for (recapture of) credit losses     16,943       16,057       15,668  
                   
      Non-interest income            
      Service charges on deposits     999       1,037       1,023  
      ATM and debit card interchange transaction fees     1,267       1,293       1,264  
      Gain on sales of loans, net     43       135       78  
      Bank owned life insurance (“BOLI”) net earnings     167       175       156  
      Recoveries on investment securities, net        3          3          5  
      Other     218       289       272  
          Total non-interest income, net     2,697       2,932       2,798  
                   
      Non-interest expense            
      Salaries and employee benefits     6,092       5,867       5,911  
      Premises and equipment     950       933       973  
      Gain on sales/disposition of premises and equipment, net     —       1       —  
      Advertising     181       205       186  
      OREO and other repossessed assets, net     —       4       —  
      ATM and debit card processing     521       588       615  
      Postage and courier     121       137       126  
      State and local taxes     346       343       319  
      Professional fees     346       410       253  
      FDIC insurance     210       209       210  
      Loan administration and foreclosure     128       125       105  
      Technology and communications     1,140       1,163       974  
      Deposit operations     332       446       320  
      Amortization of core deposit intangible (“CDI”)     45       57       56  
      Other, net     655       574       576  
          Total non-interest expense, net     11,067       11,062       10,624  
                   
      Income before income taxes     8,573       7,927       7,842  
      Provision for income taxes     1,713       1,572       1,546  
          Net income   $   6,860     $   6,355     $   6,296  
                   
      Net income per common share:            
          Basic   $ 0.86     $ 0.80     $ 0.78  
          Diluted     0.86       0.79       0.77  
                   
      Weighted average common shares outstanding:            
          Basic     7,958,275       7,954,112       8,114,209  
          Diluted     7,999,504       7,995,024       8,166,048  
    TIMBERLAND BANCORP INC. AND SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS    		  
    ($ in thousands, except per share amounts) (unaudited)   Dec. 31,   Sept. 30,   Dec. 31,
         2024     2024     2023 
    Assets            
    Cash and due from financial institutions   $     24,538     $     29,071     $     28,656  
    Interest-bearing deposits in banks     139,533            135,657       129,365  
      Total cash and cash equivalents     164,071       164,728       158,021  
                   
    Certificates of deposit (“CDs”) held for investment, at cost     7,470       10,209       12,449  
    Investment securities:            
      Held to maturity, at amortized cost (net of ACL – investment securities)     156,105       172,097       266,085  
      Available for sale, at fair value     77,080       72,257       40,446  
    Investments in equity securities, at fair value     840       866       848  
    FHLB stock     2,037       2,037       2,001  
    Other investments, at cost     3,000       3,000       3,000  
    Loans held for sale     411       —       1,425  
                 
    Loans receivable     1,429,107       1,439,001       1,352,938  
    Less: ACL – loans     (17,288 )     (17,478 )     (16,655 )
      Net loans receivable     1,411,819       1,421,523         1,336,283  
                   
    Premises and equipment, net     21,617       21,486       21,584  
    OREO and other repossessed assets, net     221       —       —  
    BOLI     23,777       23,611       23,122  
    Accrued interest receivable     7,095       6,990       6,731  
    Goodwill     15,131       15,131       15,131  
    CDI     406       451       621  
    Loan servicing rights, net     1,195       1,372       1,925  
    Operating lease right-of-use assets     1,400       1,475       1,698  
    Other assets     15,805       6,242       3,745  
      Total assets   $ 1,909,480     $ 1,923,475     $ 1,895,115  
                   
    Liabilities and shareholders’ equity            
    Deposits: Non-interest-bearing demand   $  402,911     $   413,116     $   433,065  
    Deposits: Interest-bearing     1,227,505       1,234,552       1,194,004  
      Total deposits     1,630,416       1,647,668       1,627,069  
                   
    Operating lease liabilities     1,501       1,575       1,796  
    FHLB borrowings     20,000       20,000       20,000  
    Other liabilities and accrued expenses     8,364       8,819       8,881  
      Total liabilities     1,660,281       1,678,062       1,657,746  
                 
    Shareholders’ equity            
    Common stock, $.01 par value; 50,000,000 shares authorized;
            7,954,673 shares issued and outstanding – December 31, 2024
            7,960,127 shares issued and outstanding – September 30, 2024
            8,120,708 shares issued and outstanding – December 31, 2023                             		      

    29,593

    		        

    29,862

    		        

    34,869

    		  
    Retained earnings     220,398       215,531       203,327  
    Accumulated other comprehensive income (loss)     (792 )     20       (827 )
      Total shareholders’ equity     249,199       245,413       237,369  
      Total liabilities and shareholders’ equity   $ 1,909,480     $ 1,923,475     $ 1,895,115  
      Three Months Ended                 
    PERFORMANCE RATIOS:   Dec. 31,
    2024    		   Sept. 30,
    2024    		   Dec. 31,
    2023
    Return on average assets (a)     1.41 %     1.32 %     1.36 %
    Return on average equity (a)     11.03 %     10.43 %     10.75 %
    Net interest margin (a)     3.64 %     3.58 %     3.60 %
    Efficiency ratio     56.27 %     56.79 %     56.50 %
                 
    ASSET QUALITY RATIOS AND DATA:            
    Non-accrual loans   $ 2,733     $ 3,885     $ 3,366  
    Loans past due 90 days and still accruing     —       —       —  
    Non-performing investment securities     45       51       85  
    OREO and other repossessed assets     221       —       —  
    Total non-performing assets (b)   $ 2,999     $ 3,936     $ 3,451  
                 
    Non-performing assets to total assets (b)     0.16 %     0.20 %     0.18 %
    Net charge-offs during quarter   $         242      $         12     $         2  
    Allowance for credit losses – loans to non-accrual loans     633 %     450 %     495 %
    Allowance for credit losses – loans to loans receivable (c)     1.21 %     1.21 %     1.23 %
                 
                 
    CAPITAL RATIOS:            
    Tier 1 leverage capital     12.32 %     12.12 %     12.14 %
    Tier 1 risk-based capital     18.69 %     18.14 %     18.22 %
    Common equity Tier 1 risk-based capital                 18.69 %          18.14 %     18.22 %
    Total risk-based capital     19.95 %     19.39 %     19.50 %
    Tangible common equity to tangible assets (non-GAAP)     12.34 %     12.05 %     11.79 %
                 
    BOOK VALUES:            
    Book value per common share   $   31.33      $   30.83      $ 29.23  
    Tangible book value per common share (d)     29.37       28.87       27.29  

    ________________________________________________

    (a)  Annualized
    (b)  Non-performing assets include non-accrual loans, loans past due 90 days and still accruing, non-performing investment securities and OREO and other repossessed assets. 
    (c)  Does not include loans held for sale and is before the allowance for credit losses.
    (d)  Tangible common equity divided by common shares outstanding (non-GAAP).                                                                                                 

    AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
    ($ in thousands)
    (unaudited)

      For the Three Months Ended 
      December 31, 2024    September 30, 2024    December 31, 2023 
      Amount   Rate   Amount   Rate   Amount       Rate
                           
    Assets                      
    Loans receivable and loans held for sale $       1,438,144     5.80 %   $     1,428,125     5.74 %   $      1,332,971     5.52 %
    Investment securities and FHLB stock (1)   247,236      3.57       254,567      3.64            317,164      3.03  
    Interest-earning deposits in banks and CDs      166,764      4.76          156,732      5.37          126,253      5.38  
         Total interest-earning assets       1,852,144      5.42           1,839,424      5.41           1,776,388      5.07  
    Other assets        75,534                80,940                81,612      
         Total assets $      1,927,678         $     1,920,364         $      1,858,000      
                           
    Liabilities and Shareholders’ Equity                      
    NOW checking accounts $          328,455      1.38 %   $        337,955      1.40 %   $          376,682      1.51 %
    Money market accounts      324,424      3.42          321,151      3.62       224,939      2.34  
    Savings accounts   205,650      0.28       207,457      0.27       220,042      0.22  
    Certificates of deposit accounts   331,785      4.09       316,897      4.20       268,628      3.97  
    Brokered CDs   46,414      4.98       48,719      5.54       42,725      5.38  
       Total interest-bearing deposits   1,236,728      2.59       1,232,179      2.67       1,133,016      2.18  
    Borrowings   20,000      4.03       20,000      4.20       28,804      4.81  
       Total interest-bearing liabilities   1,256,728      2.62       1,252,179      2.70       1,161,820      2.22  
                           
    Non-interest-bearing demand deposits   414,149           414,603           450,027      
    Other liabilities            10,146                    11,151           11,878      
    Shareholders’ equity   246,655           242,431           234,275      
         Total liabilities and shareholders’ equity $     1,927,678         $     1,920,364         $     1,858,000      
                           
         Interest rate spread     2.80 %       2.71 %       2.85 %
         Net interest margin (2)     3.64 %       3.58 %       3.60 %
         Average interest-earning assets to                      
         average interest-bearing liabilities   147.38 %         146.90 %         152.90 %    

              _____________________________________
    (1) Includes other investments
    (2) Net interest margin = annualized net interest income /
         average interest-earning assets
                   

    Non-GAAP Financial Measures
    In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures.  Timberland believes that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

    Financial measures that exclude intangible assets are non-GAAP measures.  To provide investors with a broader understanding of capital adequacy, Timberland provides non-GAAP financial measures for tangible common equity, along with the GAAP measure.  Tangible common equity is calculated as shareholders’ equity less goodwill and CDI.  In addition, tangible assets equal total assets less goodwill and CDI.

    The following table provides a reconciliation of ending shareholders’ equity (GAAP) to ending tangible shareholders’ equity (non-GAAP) and ending total assets (GAAP) to ending tangible assets (non-GAAP).

    ($ in thousands)   December 31, 2024   September 30, 2024   December 31, 2023
                 
    Shareholders’ equity   $                 249,199     $                 245,413     $                    237,369  
    Less goodwill and CDI     (15,537 )     (15,582 )     (15,752 )
    Tangible common equity   $                 233,662     $                 229,831     $                    221,617  
                 
    Total assets   $              1,909,480     $              1,923,475     $                1,895,115  
    Less goodwill and CDI     (15,537 )     (15,582 )     (15,752 )
    Tangible assets   $              1,893,943     $              1,907,893     $                1,879,363  

    The MIL Network –

  • MIL-OSI USA: Sen. Johnson Introduces the Guidance Out Of Darkness Act (GOOD) Act

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson
    WASHINGTON – On Friday, U.S. Sen. Ron Johnson (R-Wis.) and 14 of his Senate colleagues introduced the Guidance Out Of Darkness (GOOD) Act.The GOOD Act requires federal agencies to publish their regulatory guidance on the internet in an easily accessible location. This bill will help impacted entities — including small businesses, workers and households — be fully informed of regulatory requirements in order to take any necessary actions for compliance.
    Sen. Johnson was joined by Senators Kevin Cramer (R-N.D.), Joni Ernst (R-Iowa), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Rick Scott (R-Fla.), Thom Tillis (R-N.C.), Marsha Blackburn (R-Tenn.), John Hoeven (R-N.D.), Ted Budd (R-N.C.), Eric Schmitt (R-Mo.), Roger Marshall (R-Kan.), Tim Sheehy (R-Mont.), and James Risch (R-Idaho). 
    The full text of the legislation can be found here.

    MIL OSI USA News –

  • MIL-OSI USA: Schatz, Senators Introduce Resolution Warning of Serious Public Health Threats From Trump Administration Freeze on Critical Health Alerts, Including Disease Outbreaks and Food Contamination

    US Senate News:

    Source: United States Senator for Hawaii Brian Schatz
    WASHINGTON – Following reports that the Trump Administration has paused critical communications from federal health agencies, including warnings on disease outbreaks and food contamination, U.S. Senators Brian Schatz (D-Hawai‘i), Alex Padilla (D-Calif.), Tammy Baldwin (D-Wis.), Dick Durbin (D-Ill.), Chris Van Hollen (D-Md.), Peter Welch (D-Vt.) Ed Markey (D-Mass.), Jack Reed (D-R.I.), Richard Blumenthal (D-Conn.), and Tina Smith (D-Minn.) introduced a resolution calling for uninterrupted health warning services for the American people.
    “People deserve to have timely and accurate information about dangerous disease outbreaks or contamination in their food. This shouldn’t be controversial or political. It’s about keeping people healthy and safe,” said Senator Schatz.
    “Federal health agencies must be able to communicate timely and accurate information to health care providers and the public, especially as the devastating Southern California fires burn down community health centers and put hospitals and lives at risk,” said Senator Padilla. “President Trump’s dangerous order halting federal public health communications puts vulnerable California communities at even further risk in a time of crisis. I will keep fighting to protect public access to essential health information.”
    “Disease outbreaks and public health crises don’t stop during presidential transitions. Preventing health agencies from communicating with the public is flat out dangerous,” said Senator Van Hollen.
    “Avian flu is spreading, and the Trump Administration thinks it’s a good idea to stop federal health agencies from communicating with the public? This is dangerous and misguided,” said Senator Welch.
    “President Trump is playing politics with people’s health. At the very least, the federal government should be able to alert the public when it is aware of disease outbreaks or contaminated food.  The Trump Administration should not withhold this information from the public,” said Senator Reed.
    “Halting alerts about deadly disease outbreaks or food contamination serves no one. Just last year, ten people died after a listeria outbreak at a Boar’s Head facility – a number that might have been even higher if public agencies hadn’t been allowed to warn the public. Even in a time of deep political difference, we ought to agree that preventing the spread of deadly disease is a wise use of taxpayer dollars,” said Senator Blumenthal.
    The full text of the resolution is available here.

    MIL OSI USA News –

  • MIL-OSI New Zealand: Events – Firefighters Compete at UFBA South Island Waterway Challenge

    Source: United Fire Brigades’ Association

    Each year, over 20,000 fires threaten precious homes, businesses, our natural environment and lives across New Zealand. We have seen several large vegetation fires this summer already and they all require one thing – lots of water and brave people to put it there!
    Firefighting relies on timing, technical expertise, and teamwork to save lives and property; the branch on the hose, the hose to the pump, the standpipe to the hydrant, and each person playing their part.
    Since 1885, the United Fire Brigades’ Association (UFBA) Waterway Challenge has helped firefighters test their hose-running and pump-operating skills in a fun, safe, and competitive environment. The track has 19 different setups covering rural and urban approaches to firefighting.
    On Saturday 1 February, over 50 volunteer firefighters from around the South Island will show off their teamwork and firefighting skills that they use to protect property and lives, as they compete in teams against each other in the annual UFBA South Island Waterway Challenge.
    Teams of firefighters will be coming from Lincoln, Lyttleton, Rangiora, Westport, Greymouth, Brunner, Methven, Cromwell, Mataura, Balclutha, Wyndham, Mossburn, Sefton, Rolleston, Luggate, and Ross Volunteer Fire Brigades.
    Competitors have trained all year, some are highly experienced and we have some fresh faces ready to take on the challenge. This firefighting event helps teams prepare for the biennial UFBA National Waterway Challenge a few weeks after the South Island event.
    Bring the kids along to watch this competitive display of firefighting techniques.
    Location: Darfield Domain
    Date/Time: Saturday 1 February 2025 from 0930hrs till 1600hrs (approx.) 
    About the UFBA – for over 145 years the United Fire Brigades’ Association has been the leading association representing firefighters in New Zealand. Today our services support around 14,000 firefighters throughout the fire and emergency services sector by providing advocacy, skills-based challenges, workshops and service honours.
    For more information visit www.ufba.org.nz

    MIL OSI New Zealand News –

  • MIL-OSI Australia: NSW’s frontline heroes celebrated with Australia day honours

    Source: New South Wales Premiere

    Published: 26 January 2025

    Last updated: 28 January 2025

    Released by: Minister for Emergency Services

    Sixteen emergency services personnel from NSW have been recognised on the Australia Day 2025 Honours List for their service to the community during times of crisis.

    The Australian Fire Service Medal was awarded to eleven recipients representing Fire and Rescue NSW (FRNSW) and the NSW Rural Fire Service (NSW RFS).

    The Emergency Services Medal was awarded to five recipients representing the NSW State Emergency Service (NSW SES), Surf Life Saving NSW (SLS NSW), and VRA Rescue NSW.

    Medal recipients are announced twice a year as part of the Australia Day and the Kings Birthday Honours Lists, recognising the dedication, bravery, and leadership of emergency services personnel to keeping our communities safe. 

    Australian Fire Service Medal recipients

    • Mr Gregory Reuben Houston, FRNSW
    • Mr Samuel James Parkhouse, FRNSW
    • Mr Garry James Reardon, FRNSW
    • Mr Samuel Stuart Clark AM, NSW RFS
    • Ms Robyn Leslie Reynolds, NSW RFS
    • Ms Jennifer Ann Farrell, NSW RFS
    • Mr Scott Alexander Campbell, NSW RFS
    • Mr Wayne Robert Keel, NSW RFS
    • Mr Anthony Clough, NSW RFS
    • Mr John Duncan Hedley, NSW RFS
    • Mr Robert James Conroy, NSW RFS

    Emergency Services Medal recipients

    • Mrs Christine Speer, NSW SES
    • Mr Anthony Gerard Battam, NSW SES
    • Mr Michael Anthony Wasley, SLS NSW
    • Mrs Julie Wilcox, SLS NSW
    • Mr Daniel John van Keimpema, VRA Rescue NSW

    Minister for Emergency Services Jihad Dib said:

    “I’m thrilled to see so many of our outstanding emergency services personnel recognised on the Australia Day Honours List. Their service is a testament to the very best of our state and we’re proud to honour their achievements.

    “From bushfires to floods, surf rescues and storms – our emergency services workers go above and beyond to protect the people of NSW and demonstrate exceptional bravery, compassion, and commitment.

    “The Australian Fire Service Medal and the Emergency Service Medal is a well-deserved recognition of their tireless efforts to keeping our communities safe.”

    MIL OSI News –

  • MIL-OSI Australia: Championing creativity and diversity during NSW Women’s Week 2025

    Source: New South Wales Premiere

    Published: 28 January 2025

    Released by: Minister for Women

    Fifteen organisations across New South Wales have received a share of more than $430,000 to host events that highlight women’s creativity, diversity and empowerment during this year’s Women’s Week.

    The NSW Government is building better communities where women and girls can achieve their potential and thrive.

    Women’s Week Grants have been running since 2018 to fund innovative events that empower women and girls to participate in our communities, to advance gender equality in the longer term.

    The 15 successful recipients of the 2025 Women’s Week Grants include:

    1. Interrelate Ltd – Empowerment through education: addressing the need for menstrual education to support young women in need (Coonamble LGA)
    2. Kiama Municipal Council - Paint the Town Femme (Kiama LGA) 
    3. Powerhouse Youth Theatre Inc. - Khair (خير): A Woman’s Tale (Fairfield LGA)
    4. NSW Tonga Netball Association Inc - Her Journey (Queanbeyan-Palerang LGA)
    5. Mudgee Local Aboriginal Land Council - Yinaagirbang Maywang (Women Together) (Mid-Western LGA)
    6. Accessible Arts - Wellbeing Through Art (City of Sydney LGA)
    7. African Sub-Sahara International Development Agency (ASSIDA) - African Women Celebration Week (Liverpool LGA)
    8. SSI – Settlement Service International – Celebrating the diversity of regional women (Coffs Harbour LGA)
    9. Walhallow Local Aboriginal Land Council - Rise & Shine: Gamilaroi Women’s Week Celebration (Liverpool Plains LGA)
    10. Lane Cove Council – Resilience and Radiance (Lane Cove LGA)
    11. Diversity Arts Australia - Empowering Diversity: Women in Arts and Creativity Symposium (Parramatta LGA)
    12. Northern Beaches Council - NSW Women’s Week Writing and Poetry Workshop Series – Celebrating Female Authors living with a Disability (Northern Beaches LGA)
    13. Nourish Nation Foundation Inc – Nourishing Women: A Path to Health Empowerment (Wagga Wagga LGA)
    14. Randwick City Council – Women’s Work art show and live music performance (Randwick LGA)
    15. Maari Ma Health Aboriginal Organisation –Because of Her, We Can: Health and Wellbeing in Far West NSW (Broken Hill, Central Darling Shire and Balranald LGAs)

    NSW Women’s Week, which runs from Sunday 2 to Saturday 8 March, is an annual showcase of the stories and remarkable achievements of women in our state.

    The NSW Government’s Women of the Year Awards at the International Convention Centre is the culmination the week-long celebrations and will be held in Sydney on Thursday 6 March.

    To find out more about Women’s Week 2025 events, visit NSW Women’s Week 2025 | NSW Government.

    Minister for Women Jodie Harrison said:

    “The NSW Government is thrilled to fund one of the most diverse range of Women’s Week events this year.

    “Alongside some great activities that focus on women’s health, art and stories, we have funded events we hope will engage Aboriginal and Torres Strait Islander women, women from culturally and linguistically diverse backgrounds, the LGBTIQA+ community, women with a disability and women from rural, regional and remote NSW.

    “We want these events to inspire creativity and talent, empower women of all ages and backgrounds and encourage diversity and inclusion. I encourage everyone to get involved in the events that are planned in your communities.

    “NSW Women’s Week gives women a platform to honour the many contributions to our families and communities in all aspects of social, cultural, and political life.”

    MIL OSI News –

  • MIL-OSI Submissions: Australia Economy – WA tops economic leaderboard as Queensland rises up the ranks: CommSec State of the States – CBA

    Source: Commonwealth Bank of Australia (CBA)

    WA leads on five of eight economic indicators as Australian state economies remain resilient in the face of higher interest rates and inflation pressures.

    Western Australia has held off a fast-finishing Queensland to claim top spot as the country’s best performing economy for the second quarter in a row in the latest CommSec State of the States report.

    Now in its 16th year, the State of the States report determines which state or territory economy is performing best, by tracking eight key economic indicators and comparing the latest data with decade averages (or the “normal”).

    Western Australia led the national performance rankings for the second time in a decade, ranked first on five of the eight economic indicators.

    In a closely fought contest, Queensland moved up from third spot, joining South Australia in second spot. Victoria remains in fourth place, with Tasmania steady in fifth place.

    NSW leapfrogged the ACT into sixth from seventh place, with the nation’s capital slipping back to seventh. The Northern Territory remains in eighth spot.

    “Overall, economies have slowed in response to higher interest rates and inflation, however Australian states and territories are proving resilient due to a strong job market and solid population growth. As consumers respond to higher borrowing costs and price pressures, the future path will depend on whether the job market can hold up as well as the trajectory of interest rates over the coming months,” Chief CommSec Economist Ryan Felsman said

    “Western Australia’s performance across a number of indicators, namely retail spending, unemployment, population growth, housing finance and dwelling starts powered the state to the top of our economic leaderboard for the second quarter in a row. Queensland however is nipping at WA’s heels, having shot up to equal second place alongside South Australia, with solid results across the eight economic indicators and strong economic momentum. As expected, the interest-rate sensitive south-eastern states remained in a tight cluster mid-table.”

    Additional state and territory highlights include:

    Western Australia ranks first on retail spending, relative unemployment, relative population growth, housing finance and dwelling starts.
    Queensland is now equal second, up from third place, with solid results across the board. South Australia, now joint second, ranks first on economic growth.
    Victoria remains in fourth place – leading on construction work done – and is in fourth spot on two indicators.
    Tasmania is steady in fifth spot — ranking second on equipment spending — but is held back by lower rankings on other indicators.
    NSW moves up to sixth from seventh position and now ranks fifth on four indicators. The ACT has slipped back to seventh — in that position on four indicators.
    The Northern Territory remains in last place. But the “Top End” has performed better over the past 12 months, ranking first for retail spending and equipment investment when annual growth rates are considered.

    Annual growth rates

    The State of the States report also compares the annual growth rates of the eight major indicators, enabling comparisons in terms of more recent economic momentum. This quarter’s report showed:

    Resources-focused Queensland and Western Australia both have the strongest annual economic momentum, and Queensland is now in first spot with Western Australia slipping to second.
    There is little to separate the states with Queensland ranked first or second on five out of the eight key economic indicators. Western Australia is top ranked on three indicators.
    The biggest mover is Victoria, which has jumped to third from seventh place in a sign of improvement in underlying economic activity.  
    South Australia has ascended to fourth from sixth place.
    The Northern Territory has eased back to fifth from third spot. The ACT and NSW are now in joint sixth position, ahead of Tasmania in eighth spot – all held back by higher borrowing costs and slower population growth.

    About the CommSec State of the States Report

    The January 2025 edition of the State of the States report uses the most recent economic data available. While population growth data relates to the June quarter of 2024, other data – such as unemployment – is much timelier, covering the month of December 2024, with housing finance figures focusing on the month of September 2024.

    CommSec, the digital broking arm of Australia’s largest bank, assesses the performance of each state and territory on a quarterly basis using eight key indicators. Those indicators include economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance, and dwelling commencements.

    Just as the Reserve Bank of Australia (RBA) uses long-term averages to determine the level of “normal” interest rates, CommSec compares the key indicators to decade averages; that is, against “normal” performance.

    CommSec also compares annual growth rates for eight key indicators for all states and territories, in addition to Australia as a whole, enabling a comparison of economic momentum.

    MIL OSI – Submitted News –

  • MIL-OSI Security: Philadelphia Woman Sentenced to over Three Years in Prison for Stabbing on the Choctaw Indian Reservation

    Source: Office of United States Attorneys

    Jackson, MS – A Philadelphia woman was sentenced to 40 months in federal prison for stabbing a man in the Pearl River community of the Mississippi Band of Choctaw Indians Reservation.

    According to court documents, Telinah Kowi Tek Farve, 24, stabbed a man at a tribal home in the Pearl River Community in March of 2023.  Farve was indicted by a federal grand jury in April of 2023, and pled guilty in April of 2024.

    Acting U.S. Attorney Patrick A. Lemon and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.

    The Choctaw Police Department and the Federal Bureau of Investigation investigated the case.

    Assistant U.S. Attorneys Kevin J. Payne and Brian K. Burns prosecuted the case.

    This case was brought as part of Project Safe Neighborhood (PSN), a nationwide initiative that was launched in 2001 and works to reduce violent crime and gun violence.  It’s a collaboration between federal, state, local, tribal, and territorial law enforcement, prosecutors, and community leaders.  PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories.  For more information about Project Safe Neighborhood, please visit www.psn.gov.

    MIL Security OSI –

  • MIL-OSI: Capital Bancorp, Inc. Announces 4Q and Full Year 2024 Results; Successful Close of the IFH Acquisition; Robust Organic Loan and Deposit Growth; Diversified Business Model Drives Strong Performance

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter 2024 Results

    • Net Income of $7.5 million, or $0.45 per share, and return on average assets of 0.96%
      • Net Income of $15.5 million, or $0.92 per share, and return on average assets of 1.97% as adjusted to exclude the impact of merger-related expenses, initial Integrated Financial Holdings, Inc. (“IFH”) Allowance for Credit Losses (“ACL”) provision, and a non-recurring legacy IFH equity and debt investment write-down (non-GAAP)(1)
    • Tangible Book Value Per Share(1) of $18.77, decreased 6.8%, or $1.36 as compared to $20.13 (3Q 2024), resulting from the acquisition of IFH and related purchase accounting impacts
    • Return on average equity of 8.50%, and return on average tangible common equity(1) of 9.47%
      • Core return on average equity(1) of 17.68%, and core return on average tangible common equity(1) of 19.19%
    • Net Interest Income increased $6.0 million, or 15.6% (not annualized), from 3Q 2024
    • Net Interest Margin (“NIM”) decreased to 5.87% as compared to 6.41% (3Q 2024)
      • Core NIM, as adjusted to exclude the impact of credit card loans (non-GAAP)(1) decreased to 4.05% as compared to 4.08% (3Q 2024)
      • Net purchase accounting accretion of $0.7 million for 4Q 2024 accounted for 9 basis points of the reported 5.87% NIM and 10 basis points of the reported 4.05% core NIM, respectively
    • Fee Revenue (noninterest income) totaled $11.9 million, or 21.2% of total revenue for 4Q 2024
      • Core Fee Revenue of $14.5 million, or 24.7% of total core revenue, increased $7.9 million from 3Q 2024, excluding a non-recurring equity and debt investment write-down of $2.6 million (non-GAAP)(1), primarily due to the acquisition of IFH
    • Gross Loan Growth in the quarter of $522.6 million includes $373.5 million from the acquisition of IFH, and $149.1 million from organic growth, or 28.2% annualized for 4Q 2024
      • Commercial and industrial loans of $554.6 million, or 21.0% of total gross loans at December 31, 2024 increased $282.7 million from September 30, 2024
    • Total Deposit Growth in the quarter of $575.7 million includes $459.0 million from the acquisition of IFH, and $116.7 million from organic growth, or 21.2% annualized for 4Q 2024
      • Noninterest bearing deposits increased $92.8 million, or 51.4% annualized from 3Q 2024
    • The ratio of allowance for credit losses to total loans equaled 1.85% at December 31, 2024 including 1.44% for the legacy Capital Bank portfolio, down 7 basis points from 3Q. The additional ACL coverage results from the initial $15.5 million impact from the acquisition of the IFH portfolio.
    • Cash Dividend of $0.10 per share declared by the Board of Directors

    ROCKVILLE, Md., Jan. 27, 2025 (GLOBE NEWSWIRE) — Capital Bancorp, Inc. (the “Company”) (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the “Bank”), today reported net income of $7.5 million, or $0.45 per diluted share, for the fourth quarter 2024, compared to net income of $8.7 million, or $0.62 per diluted share, for the third quarter 2024, and $9.0 million, or $0.65 per diluted share, for the fourth quarter 2023. On October 1, 2024, the Company successfully completed its previously announced merger with IFH. Net income for the fourth quarter 2024 would have been $15.5 million, or $0.92 per diluted share if adjusted to exclude the impact of merger-related expenses, the initial IFH ACL provision, and a non-recurring equity and debt investment write down (non-GAAP)(1), compared to $9.2 million, or $0.66 per diluted share, for the third quarter 2024.

    The Company also declared a cash dividend on its common stock of $0.10 per share. The dividend is payable on February 26, 2025 to shareholders of record on February 10, 2025.

    “We are pleased to have successfully closed our acquisition of Integrated Financial Holdings, and we are now focused on merger integration and executing on the opportunities from our complementary lines of business,” said Ed Barry, CEO of the Company and the Bank. “We continue to benefit from our diversified business model which is driving growth across our platforms.”

    “The really strong performance of the commercial bank during the quarter was highlighted by record loan growth, solid deposit growth, and stable core net interest margin. I am particularly pleased by the growth of our commercial and industrial loans,” said Steven J. Schwartz, Chairman of the Company. “This outstanding organic growth is expected to continue to be a major contributing factor in our overall earnings growth in 2025 and beyond. The acquisition of IFH, while creating a lot of noise in the financial results of the 4th quarter, provides us with a new line of business – loan servicing, processing, and packaging – and a significant expansion of our government-guaranteed lending platform.”

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

    Acquisition of Integrated Financial Holdings, Inc.
    On October 1, 2024, the Company successfully completed its previously announced merger with IFH. Pursuant to the terms of the Merger Agreement, each share of IFH’s common stock, par value $1.00 per share (“IFH Common Stock”) was converted into the right to receive (a) 1.115 shares of common stock of the Company, par value $0.01 per share (“Capital Common Stock”); and (b) $5.36 in cash per share of IFH Common Stock held immediately prior to the Effective Time, in addition to cash in lieu of fractional shares. In addition, each stock option granted by IFH to purchase shares of IFH Common Stock, whether vested or unvested, outstanding immediately prior to the Effective Time, was assumed by the Company and converted into an equivalent option to purchase Capital Common Stock, with the same terms and conditions as applied to the IFH stock option.

    Total assets, including purchase accounting adjustments, of $559.4 million acquired in connection with the IFH acquisition included gross loans of $373.5 million, loans held for sale of $41.7 million and total deposits of $459.0 million at October 1, 2024.

    During 2024, the Company incurred pre-tax merger-related expenses of $3.9 million, including expenses totaling $2.6 million for the fourth quarter 2024, generally consistent with modeled expectations.

    The fourth quarter earnings were also impacted by pre-tax provision credit losses on acquired loans of $4.2 million (“Initial IFH ACL Provision”) along with a non-recurring $2.6 million write-down of a legacy IFH equity and debt investment in a start-up. The net remaining value of the equity and debt investment is $0.2 million at December 31, 2024.

    The following table provides a reconciliation of the Company’s net income under GAAP to non-GAAP results excluding merger-related expenses, Initial IFH ACL Provision, and the non-recurring equity and debt write-down.

      Fourth Quarter 2024   Third Quarter 2024
    (in thousands, except per share data) Income Before Income Taxes   Income Tax Expense   Net Income   Diluted Earnings per Share   Income Before Income Taxes   Income Tax Expense(Benefit)   Net Income   Diluted Earnings per Share
    GAAP Earnings $ 10,776     $ 3,243     $ 7,533     $ 0.45     $ 11,499     $ 2,827     $ 8,672     $ 0.62  
    Add: Merger-Related Expenses   2,615       464       2,151           520       (37 )     557      
    Add: Non-recurring Equity and Debt Investment Write-Down   2,620       —       2,620           —       —       —      
    Add: Initial IFH ACL Provision   4,194       1,025       3,169           —       —       —      
    Non-GAAP Earnings $ 20,205     $ 4,732     $ 15,473     $ 0.92     $ 12,019     $ 2,790     $ 9,229     $ 0.66  
      Year Ended December 31, 2024
    (in thousands, except per share data) Income Before Income Taxes   Income Tax Expense   Net Income   Diluted Earnings per Share
    GAAP Earnings $ 41,832     $ 10,860     $ 30,972     $ 2.11  
    Add: Merger-Related Expenses   3,930       622       3,308      
    Add: Non-recurring Equity and Debt Investment Write-Down   2,620       —       2,620      
    Add: Initial IFH ACL Provision   4,194       1,025       3,169      
    Non-GAAP Earnings $ 52,576     $ 12,507     $ 40,069     $ 2.73  
                                   

    Note: The tax benefit associated with merger-related expenses has been adjusted to reflect the estimated nondeductible portion of the expenses.

    Fourth Quarter 2024 Highlights

    Earnings Summary

    Net income of $7.5 million, or $0.45 per diluted share, decreased $1.1 million compared to $8.7 million, or $0.62 per diluted share, for the third quarter 2024. Net income of $15.5 million, or $0.92 per diluted share, as adjusted to exclude the impact of merger-related expenses, Initial IFH ACL Provision and a $2.6 million non-recurring equity and debt investment write-down (non-GAAP)(1) for the fourth quarter 2024 compared to $9.2 million, or $0.66 per diluted share, for the third quarter 2024.

    • Net interest income of $44.3 million increased $6.0 million, or 15.6%, compared to the third quarter 2024.
      • Interest income of $61.7 million increased $9.1 million, or 17.3%, over the third quarter 2024, primarily from $7.9 million in portfolio loan interest income, as growth in average balances increased $539.3 million. Interest income from interest-bearing deposits held at other financial institutions increased $0.3 million, as average balances increased $49.1 million to $140.2 million. Interest income included $0.7 million from net purchase accounting amortization.
      • Interest expense of $17.4 million increased $3.1 million, or 21.9% over the third quarter 2024 due to increases in time deposits and borrowed funds of $2.7 million and $0.6 million, respectively, offset by a decrease in customer money market deposits of $0.3 million. Average balances increased $367.8 million, $53.5 million and $65.3 million, respectively. Interest expense included $1.4 million from net purchase accounting accretion.
    • The provision for credit losses was $7.8 million, an increase of $4.1 million from the third quarter 2024, which included the Initial IFH ACL Provision of $4.2 million, $2.4 million from organic commercial portfolio loan growth and $1.2 million from OpenSky provision in the quarter. Net charge-offs totaled $2.4 million, a $0.2 million decrease over the third quarter 2024, including $2.1 million from credit card related loans. At December 31, 2024, the allowance for credit losses to total loans ratio was 1.85%, up 34 basis points from the ratio at September 30, 2024 due to the initial purchase credit deteriorated (“PCD”) credit mark and initial non-PCD ACL provision. Excluding IFH, legacy Capital Bank ACL coverage ratio was 1.44%, a decrease of 7 basis points from the third quarter 2024.

    Earnings Summary (Continued)

    • Noninterest income of $11.9 million increased $5.3 million as compared to the third quarter 2024 primarily due to contributions from the IFH acquisition. Government loan servicing revenue (Windsor) totaled $4.0 million, government lending revenue totaled $2.3 million and loan servicing rights totaled $1.0 million, offset by a non-recurring equity and debt write-down of $2.6 million related to an IFH investment. Other income increased $1.0 million including $0.9 million related to an investment in an SBIC, while credit card fees declined $0.3 million.
    • Noninterest expense of $37.5 million increased $7.8 million as compared to the third quarter 2024, primarily from the IFH acquisition. Noninterest expense of $34.9 million, excluding merger-related expenses of $2.6 million, increased $5.7 million as compared to the third quarter 2024. Highlights include:
      • The fourth quarter 2024 includes $0.3 million of intangible amortization resulting from the transaction.
      • Salaries and employee benefits expenses of $16.5 million increased $3.2 million, primarily related to the acquisition of IFH.
      • Occupancy and equipment expenses of $3.0 million increased $1.2 million, primarily related to increased contract expense from the IFH acquisition of $0.5 million and software depreciation of $0.4 million.
      • Estimated total cost synergies resulting from the acquisition totaled $1.5 million in the fourth quarter 2024, generally consistent with modeled expectations.
    • Income tax expense of $3.2 million, or 30.1% of pre-tax income for the fourth quarter 2024, increased $0.4 million from $2.8 million, or 24.6% of pre-tax income for the third quarter 2024. The elevated tax rate in the quarter resulted from non-deductibility of an equity and debt write-down along with some merger-related expenses. Excluding merger-related expenses and the non-recurring equity and debt write-down, the effective income tax rate for the fourth quarter 2024 would have been 22.6%.

    Balance Sheet

    Total assets of $3.2 billion at December 31, 2024 increased $646.1 million, or 25.2% (not annualized), from September 30, 2024. Total assets, including $559.4 million acquired with the IFH acquisition, net of purchase accounting, included gross loans of $373.5 million, loans held for sale of $41.7 million and total deposits of $459.0 million at October 1, 2024.

    • Cash and cash equivalents of $205.3 million at December 31, 2024 increased $48.6 million from September 30, 2024.
    • Total portfolio loans of $2.6 billion at December 31, 2024 increased $522.6 million, or 24.8% (not annualized) from September 30, 2024. Total average loans increased $539.3 million quarter over quarter.
      • Owner-occupied commercial real estate loans increased $88.6 million, or 25.2% (not annualized) from September 30, 2024.
      • The average portfolio loans-to-deposit ratio of 99.27% for the three months ended December 31, 2024 remained stable.
    • Total deposits of $2.8 billion at December 31, 2024 increased $575.7 million, or 26.3% (not annualized), from September 30, 2024. The increase includes $190.6 million of customer time deposits, $92.8 million of noninterest-bearing deposits primarily related to growth in title company deposit balances, $130.2 million of growth in customer money market deposits and $180.0 million of growth in brokered time deposits, partially offset by a decrease in interest-bearing demand accounts of $27.6 million.
      • Insured and protected deposits were approximately $1.6 billion as of December 31, 2024, representing 57.1% of the Company’s deposit portfolio.
      • Low and no interest bearing deposits of $1.1 billion, 38.5% of deposits, increased $74.9 million, or 7.6% (not annualized) from September 30, 2024. Average noninterest-bearing deposits of $729.9 million increased $49.2 million, or 7.2% (not annualized), and represented 27.9% of total average deposits at December 31, 2024.
    • The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $223.6 million, or 7.0% of total assets, an effective duration of 3.0 years, with U.S. Treasury Securities representing 57% of the overall investment portfolio at December 31, 2024. The accumulated other comprehensive income (loss) on the investment securities portfolio increased $2.9 million during the quarter to ($11.5 million) as of December 31, 2024, which represents 3.2% of total stockholders’ equity. The Company does not have a held-to-maturity investment securities portfolio.
    • Liquidity – The Company maintains stable and reliable sources of available borrowings, generally consistent with prior quarter. Sources of available borrowings at December 31, 2024 totaled $803.0 million, including available collateralized lines of credit of $595.7 million, unsecured lines of credit with other banks of $76.0 million and unpledged investment securities available as collateral for potential additional borrowings of $131.4 million.
    • Capital Positions – As of December 31, 2024, the Company reported a common equity tier 1 capital ratio of 13.74%, compared to 14.78% at September 30, 2024. At December 31, 2024, the Company and the Bank maintain regulatory capital ratios that exceed all capital adequacy requirements.

    Financial Metrics

    Net Interest Margin – Net interest margin decreased 54 basis points to 5.87% for the three months ended December 31, 2024, compared to prior quarter. Core net interest margin, as adjusted to exclude the impact of OpenSky™ credit card loans (non-GAAP)(1), decreased 3 basis points to 4.05% as compared to prior quarter. Net purchase accounting accretion for the fourth quarter 2024 was 9 basis points and 10 basis points for NIM and core NIM, respectively.

    • The average yield on interest earning assets of 8.17% decreased 62 basis points compared to the prior quarter, including 40 basis points from inclusion of IFH commercial assets. The yield on portfolio loans, as adjusted to exclude the impact of OpenSky™ credit card loans (non-GAAP)(1), of 6.98% for the fourth quarter 2024, decreased 17 basis points, primarily as a consequence of reduced market interest rates.
    • The total cost of deposits decreased 14 basis points to 2.50% for the fourth quarter 2024 as compared to the prior quarter. The total cost of interest-bearing deposits decreased 46 basis points to 3.46% for the fourth quarter 2024 as compared to the prior quarter.

    Efficiency Ratios – The efficiency ratio was 66.7% for the three months ended December 31, 2024, compared to 66.1% for the three months ended September 30, 2024. The efficiency ratio was 59.3%, as adjusted to exclude the impact of merger-related expenses and a non-recurring equity and debt investment write-down (non-GAAP)(1), for the three months ended December 31, 2024 compared to 64.9% for the three months ended September 30, 2024.

    Credit Metrics and Asset Quality – The ratio of allowance for credit losses to total loans equaled 1.85% at December 31, 2024, an increase of 34 basis points from September 20, 2024, which includes a 1.44% ACL coverage ratio for the legacy Capital Bank portfolio, down 7 basis points from 3Q. The additional ACL coverage results from the initial $15.5 million reserve on the $373.5 million IFH loan portfolio. Underlying credit performance and metrics were relatively stable and consistent with prior quarter when excluding the impact of the combination with IFH.

    Nonperforming assets increased 34 basis points to 0.94% of total assets at December 31, 2024 as compared to September 30, 2024. Total nonaccrual loans at December 31, 2024 increased $14.8 million to $30.2 million compared to September 30, 2024. At December 31, 2024, special mention loans totaled $60.0 million, or 2.3% of total portfolio loans, as compared to $20.3 million, or 1.0% of total portfolio loans, at September 30, 2024. At December 31, 2024, substandard loans totaled $48.4 million, or 1.8% of total portfolio loans, as compared to $23.8 million, or 1.1% of total portfolio loans, at September 30, 2024.

    Performance Ratios – Annualized return on average assets (“ROAA”) and annualized return on average equity (“ROAE”), and ROATCE were 0.96%, 8.50%, and 9.47% respectively, for the three months ended December 31, 2024, compared to 1.42%, 12.59%, and 12.59% respectively, for the three months ended September 30, 2024.

    • Annualized ROAA, annualized ROAE, and annualized ROATCE were 1.97%, 17.46%, and 19.19% respectively, as adjusted to exclude the impact of merger-related expenses, Initial IFH ACL Provision, and a non-recurring equity and debt investment write-down (non-GAAP)(1), for the three months ended December 31, 2024, compared to 1.51%, 13.40%, and 13.40% respectively, for the three months ended September 30, 2024.

    Tangible Book Value – Book value per common share of $21.31 at December 31, 2024 increased $1.19 when compared to September 30, 2024. Tangible book value per common share(1) decreased $1.36, or 6.8%, to $18.77 at December 31, 2024 when compared to September 30, 2024. Tangible book value was impacted by the purchase accounting adjustments made in consequence of the IFH acquisition. The Company did not have goodwill or other intangible assets prior to the fourth quarter 2024. Therefore, tangible book value per share(1) was equal to book value per share for periods prior to the fourth quarter 2024.

    Commercial Bank

    Continued Portfolio Loan Growth – Gross portfolio loans, excluding OpenSky™ credit card loans, increased $522.9 million, to $2.5 billion, at December 31, 2024 compared to September 30, 2024.

    The $522.9 million gross portfolio loan growth includes commercial real estate loans of $156.4 million, residential real estate loans of $64.9 million and commercial and industrial loans of $282.7 million. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

    Net Interest Income – Interest income of $45.2 million increased $9.4 million from prior quarter, driven by loan growth and higher loan yields. Interest expense of $17.1 million increased $3.1 million, driven by an increase in average balances in the fourth quarter 2024.

    Credit Metrics – Nonperforming assets, comprised solely of nonaccrual loans, increased 34 basis point to 0.94% of total assets at December 31, 2024 compared to September 30, 2024. Total nonaccrual loans at December 31, 2024 increased to $30.2 million compared to $15.5 million at September 30, 2024 due primarily to the acquisition of IFH.

    Classified and Criticized Loans – At December 31, 2024, special mention loans totaled $60.0 million, or 2.3% of total portfolio loans, as compared to $20.3 million, or 1.0% of total portfolio loans, at September 30, 2024. At December 31, 2024, substandard loans totaled $48.4 million, or 1.8% of total portfolio loans, as compared to $23.8 million, or 1.1% of total portfolio loans, at September 30, 2024.

    OpenSky™

    Revenues – Total revenue of $19.2 million decreased $0.5 million from the prior quarter. Interest income of $15.5 million decreased $0.2 million from the prior quarter. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $121.0 million for the fourth quarter 2024, increased $1.5 million, or 1.3% (not annualized), compared to prior quarter. Noninterest income of $3.7 million decreased $0.4 million as compared to the prior quarter, primarily related to lower annual fee income.

    Noninterest Expense – Total noninterest expense of $12.6 million decreased $0.7 million, primarily related to a reduction in quarterly advertising expense.

    Loan and Deposit Balances – Loan balances, net of reserves, of $127.8 million at December 31, 2024 increased by $0.7 million, or 0.5%, compared to $127.1 million at September 30, 2024. Corresponding deposit balances of $166.4 million at December 31, 2024 decreased $4.4 million, or 2.6%, compared to $170.8 million at September 30, 2024. Gross unsecured loan balances of $42.4 million at December 31, 2024 increased $2.7 million, or 6.8%, compared to $39.7 million at September 30, 2024. During the fourth quarter 2024, the number of credit card accounts increased by 3,614 to 552,566 from September 30, 2024.

    OpenSky™Credit – Portfolio credit metrics continue to be generally consistent with modeled expectations during the fourth quarter 2024. The provision for credit losses of $1.2 million decreased $1.1 million when compared to the prior quarter.

    Capital Bank Home Loans

    Originations of loans held for sale totaled $90.0 million during the fourth quarter, with $77.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.9 million, representing a 2.45% of gain on sale as a percentage of total loans sold.

    Windsor Advantage

    Windsor Advantage is a loan service provider that offers community banks and credit unions with a comprehensive outsourced U.S. Small Business Association (“SBA”) 7(a) and U.S. Department of Agriculture (“USDA”) lending platform. Windsor Advantage generates fee income for the Company in connection with its servicing, processing and packaging of such loans for its financial institution clients.

    Fee Income – Gross government loan servicing revenue totaled $4.6 million, including $0.5 million of Capital Bank related servicing fees, during the fourth quarter 2024. Windsor’s total servicing portfolio was $2.5 billion at December 31, 2024.

    COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited            
                               
      Quarter Ended   4Q24 vs 3Q24   4Q24 vs 4Q23
    (in thousands, except per share data) December 31, 2024   September 30, 2024   December 31, 2023   $ Change   % Change   $ Change   % Change
    Earnings Summary                          
    Interest income $ 61,707     $ 52,610     $ 46,969     $ 9,097     17.3 %   $ 14,738     31.4 %
    Interest expense   17,380       14,256       12,080       3,124     21.9 %     5,300     43.9 %
    Net interest income   44,327       38,354       34,889       5,973     15.6 %     9,438     27.1 %
    Provision for credit losses   7,828       3,748       2,808       4,080     108.9 %     5,020     178.8 %
    Provision for (release of) credit losses on unfunded commitments   122       17       (106 )     105     617.6 %     228     (215.1 )%
    Noninterest income   11,913       6,635       5,936       5,278     79.5 %     5,977     100.7 %
    Noninterest expense   37,514       29,725       26,907       7,789     26.2 %     10,607     39.4 %
    Income before income taxes   10,776       11,499       11,216       (723 )   (6.3 )%     (440 )   (3.9 )%
    Income tax expense   3,243       2,827       2,186       416     14.7 %     1,057     48.4 %
    Net income $ 7,533     $ 8,672     $ 9,030     $ (1,139 )   (13.1 )%   $ (1,497 )   (16.6 )%
                                       
    Pre-tax pre-provision net revenue (“PPNR”) (1) $ 18,726     $ 15,264     $ 13,918     $ 3,462     22.7 %   $ 4,808     34.5 %
    PPNR, as adjusted(1) $ 23,961     $ 15,784     $ 13,918     $ 8,177     51.8 %   $ 10,043     72.2 %
                                       
    Common Share Data                                  
    Earnings per share – Basic $ 0.45     $ 0.62     $ 0.65     $ (0.17 )   (27.4 )%   $ (0.20 )   (30.8 )%
    Earnings per share – Diluted $ 0.45     $ 0.62     $ 0.65     $ (0.17 )   (27.4 )%   $ (0.20 )   (30.8 )%
    Earnings per share – Diluted, as adjusted(1) $ 0.92     $ 0.66     $ 0.65     $ 0.26     39.4 %   $ 0.27     41.5 %
    Weighted average common shares – Basic   16,595       13,914       13,897                  
    Weighted average common shares – Diluted   16,729       13,951       13,989                  
                               
    Return Ratios                          
    Return on average assets (annualized)   0.96 %     1.42 %     1.63 %                
    Return on average assets, as adjusted (annualized)(1)   1.97 %     1.51 %     1.63 %                
    Return on average equity (annualized)   8.50 %     12.59 %     14.44 %                
    Return on average equity, as adjusted (annualized)(1)   17.46 %     13.40 %     14.44 %                
    Return on average tangible common equity (annualized)(1)   9.47 %     12.59 %     14.44 %                
    Core return on average equity, as adjusted (annualized)(1)   17.68 %     13.40 %     14.44 %                
    Core return on average tangible common equity, as adjusted (annualized)(1)   19.19 %     13.40 %     14.44 %                

    ______________
    (1) Refer to Appendix for reconciliation of non-GAAP measures.

    COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (Continued)  
                   
      Year Ended        
      December 31,        
    (in thousands, except per share data)   2024       2023     $ Change   % Change
    Earnings Summary              
    Interest income $ 213,301     $ 183,206     $ 30,095     16.4 %
    Interest expense   58,555       41,680       16,875     40.5 %
    Net interest income   154,746       141,526       13,220     9.3 %
    Provision for credit losses   17,720       9,610       8,110     84.4 %
    Provision for (release of) credit losses on unfunded commitments   385       (101 )     486     (481.2 )%
    Noninterest income   31,410       24,975       6,435     25.8 %
    Noninterest expense   126,219       110,767       15,452     14.0 %
    Income before income taxes   41,832       46,225       (4,393 )   (9.5 )%
    Income tax expense   10,860       10,354       506     4.9 %
    Net income $ 30,972     $ 35,871     $ (4,899 )   (13.7 )%
                     
    Pre-tax pre-provision net revenue (“PPNR”) (1) $ 59,937     $ 55,734     $ 4,203     7.5 %
    PPNR, as adjusted(1) $ 66,487     $ 55,734     $ 10,753     19.3 %
                     
    Common Share Data                
    Earnings per share – Basic $ 2.12     $ 2.56     $ (0.44 )   (17.2 )%
    Earnings per share – Diluted $ 2.11     $ 2.55     $ (0.44 )   (17.3 )%
    Earnings per share – Diluted, as adjusted(1) $ 2.73     $ 2.55          
    Weighted average common shares – Basic   14,584       14,003          
    Weighted average common shares – Diluted   14,660       14,081          
                   
    Return Ratios              
    Return on average assets (annualized)   1.21 %     1.64 %        
    Return on average assets, as adjusted (annualized)(1)   1.57 %     1.64 %        
    Return on average equity (annualized)   10.78 %     14.91 %        
    Return on average equity, as adjusted (annualized)(1)   13.94 %     14.91 %        

    ______________
    (1) Refer to Appendix for reconciliation of non-GAAP measures.

    COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (Continued)        
                           
      Quarter Ended       Quarter Ended
      December 31,     September 30,   June 30,   March 31,
    (in thousands, except per share data)   2024       2023     % Change     2024       2024       2024  
    Balance Sheet Highlights                      
    Assets $ 3,206,911     $ 2,226,176       44.1 %   $ 2,560,788     $ 2,438,583     $ 2,324,238  
    Investment securities available-for-sale   223,630       208,329       7.3 %     208,700       207,917       202,254  
    Mortgage loans held for sale   21,270       7,481       184.3 %     19,554       19,219       10,303  
    Portfolio loans receivable (2)   2,630,163       1,903,288       38.2 %     2,107,522       2,021,588       1,964,525  
    Allowance for credit losses   48,652       28,610       70.1 %     31,925       30,832       29,350  
    Deposits   2,761,939       1,895,996       45.7 %     2,186,224       2,100,428       2,005,695  
    FHLB borrowings   22,000       22,000       — %     52,000       32,000       22,000  
    Other borrowed funds   12,062       27,062       (55.4 )%     12,062       12,062       12,062  
    Total stockholders’ equity   355,139       254,860       39.3 %     280,111       267,854       259,465  
    Tangible common equity (1)   312,685       254,860       22.7 %     280,111       267,854       259,465  
                           
    Common shares outstanding   16,662       13,923       19.7 %     13,918       13,910       13,890  
    Book value per share $ 21.31     $ 18.31       16.4 %   $ 20.13     $ 19.26     $ 18.68  
    Tangible book value per share (1) $ 18.77     $ 18.31       2.5 %   $ 20.13     $ 19.26     $ 18.68  
    Dividends per share $ 0.10     $ 0.08       25.0 %   $ 0.10     $ 0.08     $ 0.08  

    ______________
    (1) Refer to Appendix for reconciliation of non-GAAP measures.
    (2) Loans are reflected net of deferred fees and costs.

    Consolidated Statements of Income (Unaudited)        
      Three Months Ended Year Ended
    (in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   December 31, 2024   December 31, 2023
    Interest income                          
    Loans, including fees $ 58,602     $ 50,047     $ 48,275     $ 45,991     $ 45,109     $ 202,915     $ 174,760  
    Investment securities available-for-sale   1,539       1,343       1,308       1,251       1,083       5,441       4,815  
    Federal funds sold and other   1,566       1,220       1,032       1,127       777       4,945       3,631  
    Total interest income   61,707       52,610       50,615       48,369       46,969       213,301       183,206  
                               
    Interest expense                          
    Deposits   16,385       13,902       13,050       12,833       11,759       56,170       39,625  
    Borrowed funds   995       354       508       528       321       2,385       2,055  
    Total interest expense   17,380       14,256       13,558       13,361       12,080       58,555       41,680  
                               
    Net interest income   44,327       38,354       37,057       35,008       34,889       154,746       141,526  
    Provision for credit losses   7,828       3,748       3,417       2,727       2,808       17,720       9,610  
    Provision for (release of) credit losses on unfunded commitments   122       17       104       142       (106 )     385       (101 )
    Net interest income after provision for credit losses   36,377       34,589       33,536       32,139       32,187       136,641       132,017  
    Noninterest income                          
    Service charges on deposits   241       235       200       207       240       883       964  
    Credit card fees   3,733       4,055       4,330       3,881       3,970       15,999       17,273  
    Mortgage banking revenue   1,821       1,882       1,990       1,453       1,166       7,146       4,896  
    Government lending revenue   2,301       —       —       —       —       2,301       —  
    Government loan servicing revenue   3,993       —       —       —       —       3,993       —  
    Loan servicing rights (government guaranteed)   1,013       —       —       —       —       1,013       —  
    Non-recurring equity and debt investment write-down   (2,620 )     —       —       —       —       (2,620 )     —  
    Other income   1,431       463       370       431       560       2,695       1,842  
    Total noninterest income   11,913       6,635       6,890       5,972       5,936       31,410       24,975  
    Noninterest expenses                          
    Salaries and employee benefits   16,513       13,345       13,272       12,907       11,638       56,037       48,754  
    Occupancy and equipment   2,976       1,791       1,864       1,613       1,573       8,244       5,673  
    Professional fees   2,150       1,980       1,769       1,947       1,930       7,846       9,270  
    Data processing   7,210       6,930       6,788       6,761       6,128       27,689       25,686  
    Advertising   1,032       1,223       2,072       2,032       1,433       6,359       6,161  
    Loan processing   969       615       476       371       198       2,431       1,633  
    Foreclosed real estate expenses, net   —       1       —       1       —       2       7  
    Merger-related expenses   2,615       520       83       712       —       3,930       —  
    Operational losses   993       1,008       782       931       1,490       3,714       4,613  
    Other operating   3,056       2,312       2,387       2,212       2,517       9,967       8,970  
    Total noninterest expenses   37,514       29,725       29,493       29,487       26,907       126,219       110,767  
    Income before income taxes   10,776       11,499       10,933       8,624       11,216       41,832       46,225  
    Income tax expense   3,243       2,827       2,728       2,062       2,186       10,860       10,354  
    Net income $ 7,533     $ 8,672     $ 8,205     $ 6,562     $ 9,030     $ 30,972     $ 35,871  
                                                           
    Consolidated Balance Sheets                  
      (unaudited)   (unaudited)   (unaudited)   (unaudited)   (audited)
    (in thousands, except share data) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
    Assets                  
    Cash and due from banks $ 25,433     $ 23,462     $ 19,294     $ 12,361     $ 14,513  
    Interest-bearing deposits at other financial institutions   179,841       133,180       117,160       72,787       39,044  
    Federal funds sold   58       58       57       56       407  
    Total cash and cash equivalents   205,332       156,700       136,511       85,204       53,964  
    Investment securities available-for-sale   223,630       208,700       207,917       202,254       208,329  
    Restricted investments   4,479       5,895       4,930       4,441       4,353  
    Loans held for sale   21,270       19,554       19,219       10,303       7,481  
    Portfolio loans receivable, net of deferred fees and costs   2,630,163       2,107,522       2,021,588       1,964,525       1,903,288  
    Less allowance for credit losses   (48,652 )     (31,925 )     (30,832 )     (29,350 )     (28,610 )
    Total portfolio loans held for investment, net   2,581,511       2,075,597       1,990,756       1,935,175       1,874,678  
    Premises and equipment, net   15,525       5,959       5,551       4,500       5,069  
    Accrued interest receivable   16,664       12,468       12,162       12,258       11,494  
    Goodwill   21,126       —       —       —       —  
    Intangible assets   14,072       —       —       —       —  
    Loan servicing assets   5,511       —       —       —       —  
    Deferred tax asset   16,670       10,748       12,150       12,311       12,252  
    Bank owned life insurance   43,956       38,779       38,414       38,062       37,711  
    Other assets   37,165       26,388       10,973       19,730       10,845  
    Total assets $ 3,206,911     $ 2,560,788     $ 2,438,583     $ 2,324,238     $ 2,226,176  
                       
    Liabilities                  
    Deposits                  
    Noninterest-bearing $ 810,928     $ 718,120     $ 684,574     $ 665,812     $ 617,373  
    Interest-bearing   1,951,011       1,468,104       1,415,854       1,339,883       1,278,623  
    Total deposits   2,761,939       2,186,224       2,100,428       2,005,695       1,895,996  
    Federal Home Loan Bank advances   22,000       52,000       32,000       22,000       22,000  
    Other borrowed funds   12,062       12,062       12,062       12,062       27,062  
    Accrued interest payable   9,393       8,503       6,573       6,009       5,583  
    Other liabilities   46,378       21,888       19,666       19,007       20,675  
    Total liabilities   2,851,772       2,280,677       2,170,729       2,064,773       1,971,316  
                       
    Stockholders’ equity                  
    Common stock   167       139       139       139       139  
    Additional paid-in capital   128,598       55,585       55,005       54,229       54,473  
    Retained earnings   237,843       232,995       225,824       218,731       213,345  
    Accumulated other comprehensive loss   (11,469 )     (8,608 )     (13,114 )     (13,634 )     (13,097 )
    Total stockholders’ equity   355,139       280,111       267,854       259,465       254,860  
    Total liabilities and stockholders’ equity $ 3,206,911     $ 2,560,788     $ 2,438,583     $ 2,324,238     $ 2,226,176  
                                           

    The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.

      Three Months Ended
    December 31, 2024    		   Three Months Ended
    September 30, 2024    		   Three Months Ended
    December 31, 2023
      Average
    Outstanding
    Balance    		   Interest Income/
    Expense    		   Average
    Yield/
    Rate(1)    		   Average
    Outstanding
    Balance    		   Interest Income/
    Expense    		   Average
    Yield/
    Rate(1)    		   Average
    Outstanding
    Balance    		   Interest Income/
    Expense    		   Average
    Yield/
    Rate(1)
      (in thousands)
    Assets                                  
    Interest earning assets:                                  
    Interest-bearing deposits $ 140,206     $ 1,446       4.10 %   $ 91,089     $ 1,137       4.97 %   $ 65,336     $ 680       4.13 %
    Federal funds sold   58       —       —       57       1       6.98       1,574       21       5.29  
    Investment securities available-for-sale   236,951       1,539       2.58       221,303       1,343       2.41       223,132       1,083       1.93  
    Restricted investments   7,292       120       6.55       4,911       82       6.64       4,518       76       6.67  
    Loans held for sale   25,614       193       3.00       9,967       161       6.43       4,601       83       7.16  
    Portfolio loans receivable(2)(3)   2,592,960       58,409       8.96       2,053,619       49,886       9.66       1,863,298       45,026       9.59  
    Total interest earning assets   3,003,081       61,707       8.17       2,380,946       52,610       8.79       2,162,459       46,969       8.62  
    Noninterest earning assets   117,026               56,924               40,020          
    Total assets $ 3,120,107             $ 2,437,870             $ 2,202,479          
                                       
    Liabilities and Stockholders’ Equity                                  
    Interest-bearing liabilities:                                  
    Interest-bearing demand accounts $ 257,446       424       0.66     $ 228,365       321       0.56     $ 195,539       90       0.18  
    Savings   13,497       20       0.59       4,135       5       0.48       5,184       2       0.15  
    Money market accounts   763,526       7,131       3.72       698,239       7,442       4.24       680,697       7,139       4.16  
    Time deposits   847,618       8,810       4.13       479,824       6,134       5.09       380,731       4,528       4.72  
    Borrowed funds   97,116       995       4.08       43,655       354       3.23       41,823       321       3.05  
    Total interest-bearing liabilities   1,979,203       17,380       3.49       1,454,218       14,256       3.90       1,303,974       12,080       3.68  
    Noninterest-bearing liabilities:                                  
    Noninterest-bearing liabilities   58,460               28,834               27,529          
    Noninterest-bearing deposits   729,907               680,731               622,941          
    Stockholders’ equity   352,537               274,087               248,035          
    Total liabilities and stockholders’ equity $ 3,120,107             $ 2,437,870             $ 2,202,479          
                                       
    Net interest spread           4.68 %             4.89 %             4.94 %
    Net interest income     $ 44,327             $ 38,354             $ 34,889      
    Net interest margin(4)           5.87 %             6.41 %             6.40 %

    _______________
    (1)   Annualized.
    (2)   Includes nonaccrual loans.
    (3)   For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, collectively, portfolio loans yield excluding credit card loans was 6.98%, 7.15% and 6.89%, respectively.
    (4)   For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, collectively, credit card loans accounted for 182, 233 and 248 basis points of the reported net interest margin, respectively.

      Year Ended December 31,
        2024       2023  
      Average
    Outstanding
    Balance    		   Interest Income/
    Expense    		   Average
    Yield/
    Rate(1)    		   Average
    Outstanding
    Balance    		   Interest Income/
    Expense    		   Average
    Yield/
    Rate(1)
      (in thousands)
    Assets                      
    Interest earning assets:                      
    Interest-bearing deposits $ 98,319     $ 4,569       4.65 %   $ 70,407     $ 3,211       4.56 %
    Federal funds sold   57       3       5.26       1,597       74       4.63  
    Investment securities available-for-sale   228,909       5,441       2.38       245,466       4,815       1.96  
    Restricted investments   5,563       373       6.71       5,016       346       6.90  
    Loans held for sale   12,121       569       4.69       5,755       382       6.64  
    Portfolio loans receivable(2)(3)   2,142,638       202,346       9.44       1,816,968       174,378       9.60  
    Total interest earning assets   2,487,607       213,301       8.57       2,145,209       183,206       8.54  
    Noninterest earning assets   66,442               43,090          
    Total assets $ 2,554,049             $ 2,188,299          
                           
    Liabilities and Stockholders’ Equity                      
    Interest-bearing liabilities:                      
    Interest-bearing demand accounts $ 221,437     $ 1,003       0.45 %   $ 201,194     $ 298       0.15 %
    Savings   6,732       27       0.40       5,768       8       0.14  
    Money market accounts   704,002       28,741       4.08       642,013       23,510       3.66  
    Time deposits   561,369       26,399       4.70       360,464       15,809       4.39  
    Borrowed funds   63,686       2,385       3.74       59,302       2,055       3.47  
    Total interest-bearing liabilities   1,557,226       58,555       3.76       1,268,741       41,680       3.29  
    Noninterest-bearing liabilities:                      
    Noninterest-bearing liabilities   34,043               24,026          
    Noninterest-bearing deposits   675,360               655,013          
    Stockholders’ equity   287,420               240,519          
    Total liabilities and stockholders’ equity $ 2,554,049             $ 2,188,299          
                           
    Net interest spread           4.81 %             5.25 %
    Net interest income     $ 154,746             $ 141,526      
    Net interest margin(4)           6.22 %             6.60 %

    (1)   Annualized.
    (2)   Includes nonaccrual loans.
    (3)   For the years ended December 31, 2024 and 2023, collectively, portfolio loans yield excluding credit card loans was 7.03% and 6.65%, respectively.
    (4)   For the years ended December 31, 2024 and 2023, collectively, credit card loans accounted for 222 and 264 basis points of the reported net interest margin, respectively.

    The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The five segments include Commercial Banking, Capital Bank Home Loans (the Company’s mortgage loan division), OpenSky™ (the Company’s credit card division), Windsor Advantage and the Corporate Office.

    Effective January 1, 2024, the Company allocated certain expenses previously recorded directly to the Commercial Bank segment to the other segments. These expenses are for shared services also consumed by OpenSky™, CBHL, and Corporate. The Company performs an allocation process based on several metrics the Company believes more accurately ascribe shared service overhead to each segment. The Company believes this reflects the cost of support for each segment that should be considered in assessing segment performance. Historical information has been recast to reflect financial information consistently with the 2024 presentation.

    The following schedule presents financial information for the periods indicated. Total assets are presented as of December 31, 2024, September 30, 2024, and December 31, 2023.

    Segments                            
    For the three months ended December 31, 2024                
    (in thousands)   Commercial Bank   CBHL   OpenSky™   Windsor Advantage   Corporate(2)   Eliminations   Consolidated
    Interest income   $ 45,195     $ 192     $ 15,454     $ —     $ 874     $ (8 )   $ 61,707  
    Interest expense     17,086       131       —       —       171       (8 )     17,380  
    Net interest income     28,109       61       15,454       —       703       —       44,327  
    Provision for credit losses     6,651       —       1,177       —       —       —       7,828  
    Provision for credit losses on unfunded commitments     122       —       —       —       —       —       122  
    Net interest income after provision     21,336       61       14,277       —       703       —       36,377  
    Noninterest income (loss)     4,547       1,676       3,743       4,566       (2,619 )     —       11,913  
    Noninterest expense(1)     16,539       2,377       12,595       2,670       3,333       —       37,514  
    Net income (loss) before taxes   $ 9,344     $ (640 )   $ 5,425     $ 1,896     $ (5,249 )   $ —     $ 10,776  
                                 
    Total assets   $ 2,994,356     $ 21,691     $ 125,913     $ 7,922     $ 376,930     $ (319,901 )   $ 3,206,911  
                                 
    For the three months ended September 30, 2024                
    (in thousands)   Commercial Bank   CBHL   OpenSky™   Windsor Advantage   Corporate(2)   Eliminations   Consolidated
    Interest income   $ 35,805     $ 161     $ 15,625     $ —     $ 1,049     $ (30 )   $ 52,610  
    Interest expense     13,984       108       —       —       194       (30 )     14,256  
    Net interest income     21,821       53       15,625       —       855       —       38,354  
    Provision for credit losses     1,453       —       2,294       —       1       —       3,748  
    Provision for credit losses on unfunded commitments     17       —       —       —       —       —       17  
    Net interest income after provision     20,351       53       13,331       —       854       —       34,589  
    Noninterest income     726       1,811       4,096       —       2       —       6,635  
    Noninterest expense(1)     12,422       2,395       13,276       —       1,632       —       29,725  
    Net income (loss) before taxes   $ 8,655     $ (531 )   $ 4,151     $ —     $ (776 )   $ —     $ 11,499  
                                 
    Total assets   $ 2,358,555     $ 19,831     $ 121,587     $ —     $ 300,325     $ (239,510 )   $ 2,560,788  
                                 
    For the three months ended December 31, 2023                
    (in thousands)   Commercial Bank   CBHL   OpenSky™   Windsor Advantage   Corporate(2)   Eliminations   Consolidated
    Interest income   $ 30,957     $ 83     $ 15,035     $ —     $ 964     $ (70 )   $ 46,969  
    Interest expense     11,884       31       —       —       235       (70 )     12,080  
    Net interest income     19,073       52       15,035       —       729       —       34,889  
    Provision for (release of) credit losses     691       —       2,125       —       (8 )     —       2,808  
    Release of credit losses on unfunded commitments     (106 )     —       —       —       —       —       (106 )
    Net interest income after provision     18,488       52       12,910       —       737       —       32,187  
    Noninterest income     773       1,166       3,996       —       1       —       5,936  
    Noninterest expense(1)     12,303       1,617       12,669       —       318       —       26,907  
    Net income (loss) before taxes   $ 6,958     $ (399 )   $ 4,237     $ —     $ 420     $ —     $ 11,216  
                                 
    Total assets   $ 2,051,945     $ 8,589     $ 117,477     $ —     $ 277,565     $ (229,400 )   $ 2,226,176  

    ________________________
    (1) Noninterest expense includes $6.3 million, $6.2 million, and $5.7 million in data processing expense in OpenSky’s™ segment for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
    (2) The Corporate segment invests idle cash in revenue-producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.

    Segments                            
    For the year ended December 31, 2024                
    (in thousands)   Commercial Bank   CBHL   OpenSky™   Windsor Advantage   Corporate(2)   Eliminations   Consolidated
    Interest income   $ 147,464     $ 568     $ 61,785     $ —     $ 3,646     $ (162 )   $ 213,301  
    Interest expense     57,536       363       —       —       818       (162 )     58,555  
    Net interest income     89,928       205       61,785       —       2,828       —       154,746  
    Provision for credit losses     10,331       —       7,329       —       60       —       17,720  
    Provision for credit losses on unfunded commitments     385       —       —       —       —       —       385  
    Net interest income after provision     79,212       205       54,456       —       2,768       —       136,641  
    Noninterest income (loss)     6,654       6,684       16,122       4,566       (2,616 )     —       31,410  
    Noninterest expense(1)     53,429       9,377       53,245       2,670       7,498       —       126,219  
    Net income (loss) before taxes   $ 32,437     $ (2,488 )   $ 17,333     $ 1,896     $ (7,346 )   $ —     $ 41,832  
                                 
    Total assets   $ 2,994,356     $ 21,691     $ 125,913     $ 7,922     $ 376,930     $ (319,901 )   $ 3,206,911  
                                 
    For the year ended December 31, 2023                
    (in thousands)   Commercial Bank   CBHL   OpenSky™   Windsor Advantage   Corporate(2)   Eliminations   Consolidated
    Interest income   $ 116,408     $ 382     $ 62,476     $ —     $ 4,238     $ (298 )   $ 183,206  
    Interest expense     40,896       135       —       —       947       (298 )     41,680  
    Net interest income     75,512       247       62,476       —       3,291       —       141,526  
    Provision for credit losses     1,540       —       7,948       —       122       —       9,610  
    Release of credit losses on unfunded commitments     (101 )     —       —       —       —       —       (101 )
    Net interest income after provision     74,073       247       54,528       —       3,169       —       132,017  
    Noninterest income     2,737       4,909       17,325       —       4       —       24,975  
    Noninterest expense(1)     48,347       8,155       52,752       —       1,513       —       110,767  
    Net income (loss) before taxes   $ 28,463     $ (2,999 )   $ 19,101     $ —     $ 1,660     $ —     $ 46,225  
                                 
    Total assets   $ 2,051,945     $ 8,589     $ 117,477     $ —     $ 277,565     $ (229,400 )   $ 2,226,176  

    (1) Noninterest expense includes $24.9 million and $23.7 million in data processing expense in OpenSky’s™ segment for the years ended December 31, 2024 and 2023, respectively.
    (2) The Corporate segment invests idle cash in revenue-producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.

    HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited
        Quarter Ended
    (in thousands, except per share data)   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Earnings:                    
    Net income   $ 7,533     $ 8,672     $ 8,205     $ 6,562     $ 9,030  
    Earnings per common share, diluted     0.45       0.62       0.59       0.47       0.65  
    Net interest margin     5.87 %     6.41 %     6.46 %     6.24 %     6.40 %
    Net interest margin, excluding credit card loans (1)     4.05 %     4.08 %     4.00 %     3.85 %     3.92 %
    Return on average assets(2)     0.96 %     1.42 %     1.40 %     1.15 %     1.63 %
    Return on average equity(2)     8.50 %     12.59 %     12.53 %     10.19 %     14.44 %
    Efficiency ratio     66.70 %     66.07 %     67.11 %     71.95 %     65.91 %
                         
    Balance Sheet:                    
    Total portfolio loans receivable, net deferred fees   $ 2,630,163     $ 2,107,522     $ 2,021,588     $ 1,964,525     $ 1,902,643  
    Total deposits     2,761,939       2,186,224       2,100,428       2,005,695       1,895,996  
    Total assets     3,206,911       2,560,788       2,438,583       2,324,238       2,226,176  
    Total stockholders’ equity     355,139       280,111       267,854       259,465       254,860  
    Total average portfolio loans receivable, net deferred fees     2,592,960       2,053,619       1,992,630       1,927,372       1,863,298  
    Total average deposits     2,611,994       2,091,294       2,010,736       1,957,559       1,885,092  
    Portfolio loans-to-deposit ratio (period-end balances)     95.23 %     96.40 %     96.25 %     97.95 %     100.35 %
    Portfolio loans-to-deposit ratio (average balances)     99.27 %     98.20 %     99.10 %     98.46 %     98.84 %
                         
    Asset Quality Ratios:                    
    Nonperforming assets to total assets     0.94 %     0.60 %     0.58 %     0.62 %     0.72 %
    Nonperforming loans to total loans     1.15 %     0.73 %     0.70 %     0.73 %     0.84 %
    Net charge-offs to average portfolio loans (2)     0.37 %     0.51 %     0.39 %     0.41 %     0.53 %
    Allowance for credit losses to total loans     1.85 %     1.51 %     1.53 %     1.49 %     1.50 %
    Allowance for credit losses to non-performing loans     160.88 %     206.50 %     219.40 %     204.37 %     178.34 %
                         
    Bank Capital Ratios:                    
    Total risk based capital ratio     12.82 %     13.76 %     14.51 %     14.36 %     14.81 %
    Tier 1 risk based capital ratio     11.56 %     12.50 %     13.25 %     13.10 %     13.56 %
    Leverage ratio     9.12 %     9.84 %     10.36 %     10.29 %     10.51 %
    Common equity Tier 1 capital ratio     11.56 %     12.50 %     13.25 %     13.10 %     13.56 %
    Tangible common equity     9.31 %     9.12 %     9.53 %     9.66 %     9.91 %
    Holding Company Capital Ratios:                    
    Total risk based capital ratio     15.48 %     16.65 %     16.98 %     16.83 %     17.38 %
    Tier 1 risk based capital ratio     13.83 %     14.88 %     15.19 %     15.03 %     15.55 %
    Leverage ratio     11.07 %     11.85 %     11.93 %     11.87 %     12.14 %
    Common equity Tier 1 capital ratio     13.74 %     14.78 %     15.08 %     14.92 %     15.43 %
    Tangible common equity     11.07 %     10.94 %     10.98 %     11.16 %     11.45 %

    _______________
    (1) Refer to Appendix for reconciliation of non-GAAP measures.
    (2) Annualized.

    HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited (Continued)
        Quarter Ended
    (in thousands, except per share data)   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Composition of Loans:                    
    Commercial real estate, non owner-occupied   $ 471,329     $ 403,487     $ 397,080     $ 377,224     $ 351,116  
    Commercial real estate, owner-occupied     440,026       351,462       319,370       330,840       307,911  
    Residential real estate     688,552       623,684       601,312       577,112       573,104  
    Construction real estate     321,252       301,909       294,489       290,016       290,108  
    Commercial and industrial     554,550       271,811       255,686       254,577       239,208  
    Lender finance     28,574       29,546       33,294       13,484       11,085  
    Business equity lines of credit     3,090       2,663       2,989       14,768       14,117  
    Credit card, net of reserve(3)     127,766       127,098       122,217       111,898       123,331  
    Other consumer loans     2,089       2,045       1,930       738       950  
    Portfolio loans receivable   $ 2,637,228     $ 2,113,705     $ 2,028,367     $ 1,970,657     $ 1,910,930  
    Deferred origination fees, net     (7,065 )     (6,183 )     (6,779 )     (6,132 )     (7,642 )
    Portfolio loans receivable, net   $ 2,630,163     $ 2,107,522     $ 2,021,588     $ 1,964,525     $ 1,903,288  
                         
    Composition of Deposits:                    
    Noninterest-bearing   $ 810,928     $ 718,120     $ 684,574     $ 665,812     $ 617,373  
    Interest-bearing demand     238,881       266,493       266,070       193,963       199,308  
    Savings     13,488       3,763       4,270       4,525       5,211  
    Money markets     816,708       686,526       672,455       678,435       663,129  
    Customer time deposits     548,901       358,300       317,911       302,319       268,619  
    Brokered time deposits     333,033       153,022       155,148       160,641       142,356  
    Total deposits   $ 2,761,939     $ 2,186,224     $ 2,100,428     $ 2,005,695     $ 1,895,996  
                         
    Capital Bank Home Loan Metrics:                    
    Origination of loans held for sale   $ 89,998     $ 74,690     $ 82,363     $ 52,080     $ 45,152  
    Mortgage loans sold     77,399       67,296       66,417       40,377       34,140  
    Gain on sale of loans     1,897       1,644       1,732       1,238       1,015  
    Purchase volume as a % of originations     90.42 %     90.98 %     96.48 %     97.83 %     89.99 %
    Gain on sale as a % of loans sold(4)     2.45 %     2.44 %     2.61 %     3.07 %     2.97 %
    Mortgage commissions   $ 620     $ 598     $ 582     $ 490     $ 465  
                         
    OpenSky™Portfolio Metrics:                    
    Open customer accounts     552,566       548,952       537,734       526,950       525,314  
    Secured credit card loans, gross   $ 87,226     $ 89,641     $ 90,961     $ 85,663     $ 95,300  
    Unsecured credit card loans, gross     42,430       39,730       33,560       28,508       30,817  
    Noninterest secured credit card deposits     166,355       170,750       173,499       171,771       173,857  

    _______________
    (3) Credit card loans are presented net of reserve for interest and fees.
    (4) Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.  

    Appendix

    Reconciliation of Non-GAAP Measures
     

    The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

    Earnings Metrics, as Adjusted Quarter Ended
    (in thousands, except per share data) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
                       
    Net Income $ 7,533     $ 8,672     $ 8,205     $ 6,562     $ 9,030  
    Add: Merger-Related Expenses, net of tax   2,151       557       62       538       —  
    Add: Non-recurring equity and debt investment write-down   2,620       —       —       —       —  
    Add: IFH ACL Provision, net of tax   3,169       —       —       —       —  
    Net Income, as Adjusted $ 15,473     $ 9,229     $ 8,267     $ 7,100     $ 9,030  
                       
    Weighted Average Common Shares – Diluted   16,729       13,951       13,895       13,919       13,989  
    Earnings per Share – Diluted $ 0.45     $ 0.62     $ 0.59     $ 0.47     $ 0.65  
    Earnings per Share – Diluted, as Adjusted $ 0.92     $ 0.66     $ 0.59     $ 0.51     $ 0.65  
                       
    Average Assets $ 3,120,107     $ 2,437,870     $ 2,353,868     $ 2,299,234     $ 2,202,479  
    Return on Average Assets(1)   0.96 %     1.42 %     1.40 %     1.15 %     1.63 %
    Return on Average Assets, as Adjusted(1)   1.97 %     1.51 %     1.41 %     1.24 %     1.63 %
                       
    Average Equity $ 352,537     $ 274,087     $ 263,425     $ 258,892     $ 248,035  
    Return on Average Equity(1)   8.50 %     12.59 %     12.53 %     10.19 %     14.44 %
    Return on Average Equity, as Adjusted(1)   17.46 %     13.40 %     12.62 %     11.03 %     14.44 %
                       
    Net Interest Income (a) $ 44,327     $ 38,354     $ 37,057     $ 35,008     $ 34,889  
    Noninterest Income   11,913       6,635       6,890       5,972       5,936  
    Total Revenue $ 56,240     $ 44,989     $ 43,947     $ 40,980     $ 40,825  
    Noninterest Expense $ 37,514     $ 29,725     $ 29,493     $ 29,487     $ 26,907  
    Efficiency Ratio(2)   66.70 %     66.07 %     67.11 %     71.95 %     65.91 %
                       
    Noninterest Income $ 11,913     $ 6,635     $ 6,890     $ 5,972     $ 5,936  
    Add: Non-recurring equity and debt investment write-down   2,620       —       —       —       —  
    Noninterest Income, as Adjusted (b) $ 14,533     $ 6,635     $ 6,890     $ 5,972     $ 5,936  
    Total Revenue, as Adjusted (a) + (b) $ 58,860     $ 44,989     $ 43,947     $ 40,980     $ 40,825  
                       
    Noninterest Expense $ 37,514     $ 29,725     $ 29,493     $ 29,487     $ 26,907  
    Less: Merger-Related Expenses   2,615       520       83       712       —  
    Noninterest Expense, as Adjusted $ 34,899     $ 29,205     $ 29,410     $ 28,775     $ 26,907  
    Efficiency Ratio, as Adjusted(2)   59.29 %     64.92 %     66.92 %     70.22 %     65.91 %

    _______________
    (1) Annualized.
    (2) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).

    Earnings Metrics, as Adjusted Year Ended
    (in thousands, except per share data) December 31, 2024   December 31, 2023
           
    Net Income $ 30,972     $ 35,871  
    Add: Merger-Related Expenses, net of tax   3,308       —  
    Add: Non-recurring equity and debt investment write-down   2,620       —  
    Add: IFH ACL Provision, net of tax   3,169       —  
    Net Income, as Adjusted $ 40,069     $ 35,871  
           
    Weighted average common shares – Diluted   14,660       14,081  
    Earnings per share – Diluted $ 2.11     $ 2.55  
    Earnings per share – Diluted, as Adjusted $ 2.73     $ 2.55  
           
    Average Assets $ 2,554,049     $ 2,188,299  
    Return on Average Assets(1)   1.21 %     1.64 %
    Return on Average Assets, as Adjusted(1)   1.57 %     1.64 %
           
    Average Equity $ 287,420     $ 240,519  
    Return on Average Equity(1)   10.78 %     14.91 %
    Return on Average Equity, as Adjusted(1)   13.94 %     14.91 %
           
    Net Interest Income (a) $ 154,746     $ 141,526  
    Noninterest Income   31,410       24,975  
    Total Revenue $ 186,156     $ 166,501  
    Noninterest Expense $ 126,219     $ 110,767  
    Efficiency Ratio(2)   67.80 %     66.53 %
           
    Noninterest Income $ 31,410     $ 24,975  
    Add: Non-recurring equity and debt investment write-down   2,620       —  
    Noninterest Income, as Adjusted (b) $ 34,030     $ 24,975  
    Total Revenue, as Adjusted (a) + (b) $ 188,776     $ 166,501  
           
    Noninterest Expense $ 126,219     $ 110,767  
    Less: Merger-Related Expenses   3,930       —  
    Noninterest Expense, as Adjusted $ 122,289     $ 110,767  
    Efficiency Ratio, as Adjusted(2)   64.78 %     66.53 %

    _______________
    (1) Annualized.
    (2) The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).

    Net Interest Margin, as Adjusted Quarter Ended
    (in thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
                       
    Net Interest Income $ 44,327     $ 38,354     $ 37,057     $ 35,008     $ 34,889  
    Less: Credit Card Loan Income   15,022       15,137       15,205       14,457       14,677  
    Net Interest Income, as Adjusted $ 29,305     $ 23,217     $ 21,852     $ 20,551     $ 20,212  
    Average Interest Earning Assets   3,003,081       2,380,946       2,307,070       2,254,663       2,162,459  
    Less: Average Credit Card Loans   120,993       119,458       111,288       110,483       114,551  
    Total Average Interest Earning Assets, as Adjusted $ 2,882,088     $ 2,261,488     $ 2,195,782     $ 2,144,180     $ 2,047,908  
    Net Interest Margin, as Adjusted   4.05 %     4.08 %     4.00 %     3.85 %     3.92 %
           
    Net Interest Margin, as Adjusted Year Ended
    (in thousands) December 31,
    2024    		   December 31,
    2023
           
    Net Interest Income $ 154,746     $ 141,526  
    Less: Credit Card Loan Income   59,821       61,096  
    Net Interest Income, as Adjusted $ 94,925     $ 80,430  
    Average Interest Earning Assets   2,487,607       2,145,209  
    Less: Average Credit Card Loans   115,581       114,450  
    Total Average Interest Earning Assets, as Adjusted $ 2,372,026     $ 2,030,759  
    Net Interest Margin, as Adjusted   4.00 %     3.96 %
                   
    Portfolio Loans Receivable Yield, as Adjusted Quarter Ended
    (in thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
                       
    Portfolio Loans Receivable Interest Income $ 58,409     $ 49,886     $ 48,143     $ 45,908     $ 45,026  
    Less: Credit Card Loan Income   15,022       15,137       15,205       14,457       14,677  
    Portfolio Loans Receivable Interest Income, as Adjusted $ 43,387     $ 34,749     $ 32,938     $ 31,451     $ 30,349  
    Average Portfolio Loans Receivable   2,592,960       2,053,619       1,992,630       1,927,372       1,863,298  
    Less: Average Credit Card Loans   120,993       119,458       111,288       110,483       114,551  
    Total Average Portfolio Loans Receivable, as Adjusted $ 2,471,967     $ 1,934,161     $ 1,881,342     $ 1,816,889     $ 1,748,747  
    Portfolio Loans Receivable Yield, as Adjusted   6.98 %     7.15 %     7.04 %     6.96 %     6.89 %
           
    Portfolio Loans Receivable Yield, as Adjusted Year Ended
    (in thousands) December 31, 2024   December 31, 2023
           
    Portfolio Loans Receivable Interest Income $ 202,346     $ 174,378  
    Less: Credit Card Loan Income   59,821       61,096  
    Portfolio Loans Receivable Interest Income, as Adjusted $ 142,525     $ 113,282  
    Average Portfolio Loans Receivable   2,142,638       1,816,968  
    Less: Average Credit Card Loans   115,581       114,450  
    Total Average Portfolio Loans Receivable, as Adjusted $ 2,027,057     $ 1,702,518  
    Portfolio Loans Receivable Yield, as Adjusted   7.03 %     6.65 %
                   
    Pre-tax, Pre-Provision Net Revenue (“PPNR”) Quarter Ended
    (in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                       
    Net Income $ 7,533     $ 8,672     $ 8,205     $ 6,562     $ 9,030  
    Add: Income Tax Expense   3,243       2,827       2,728       2,062       2,186  
    Add: Provision for Credit Losses   7,828       3,748       3,417       2,727       2,808  
    Add: Provision for (Release of) Credit Losses on Unfunded Commitments   122       17       104       142       (106 )
    Pre-tax, Pre-Provision Net Revenue (“PPNR”) $ 18,726     $ 15,264     $ 14,454     $ 11,493     $ 13,918  
                                           
           
    Pre-tax, Pre-Provision Net Revenue (“PPNR”) Year Ended
    (in thousands) December 31, 2024   December 31, 2023
           
    Net Income $ 30,972     $ 35,871  
    Add: Income Tax Expense   10,860       10,354  
    Add: Provision for Credit Losses   17,720       9,610  
    Add: Provision for (Release of) Credit Losses on Unfunded Commitments   385       (101 )
    Pre-tax, Pre-Provision Net Revenue (“PPNR”) $ 59,937     $ 55,734  
                   
    PPNR, as Adjusted Quarter Ended
    (in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                       
    Net Income $ 7,533     $ 8,672     $ 8,205     $ 6,562     $ 9,030  
    Add: Income Tax Expense   3,243       2,827       2,728       2,062       2,186  
    Add: Provision for Credit Losses   7,828       3,748       3,417       2,727       2,808  
    Add: Provision for (Release of) Credit Losses on Unfunded Commitments   122       17       104       142       (106 )
    Add: Merger-Related Expenses   2,615       520       83       712       —  
    Add: Non-recurring equity and debt investment write-down   2,620       —       —       —       —  
    PPNR, as Adjusted $ 23,961     $ 15,784     $ 14,537     $ 12,205     $ 13,918  
                                           
           
    PPNR, as Adjusted Year Ended
    (in thousands) December 31, 2024   December 31, 2023
           
    Net Income $ 30,972     $ 35,871  
    Add: Income Tax Expense   10,860       10,354  
    Add: Provision for Credit Losses   17,720       9,610  
    Add: Provision for (Release of) Credit Losses on Unfunded Commitments   385       (101 )
    Add: Merger-Related Expenses   3,930       —  
    Add: Non-recurring equity and debt investment write-down   2,620       —  
    PPNR, as Adjusted $ 66,487     $ 55,734  
                   
    Allowance for Credit Losses to Total Portfolio Loans Quarter Ended
    (in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                       
    Allowance for Credit Losses $ 48,652     $ 31,925     $ 30,832     $ 29,350     $ 28,610  
    Total Portfolio Loans   2,630,163       2,107,522       2,021,588       1,964,525       1,903,288  
    Allowance for Credit Losses to Total Portfolio Loans   1.85 %     1.51 %     1.53 %     1.49 %     1.50 %
                                           
    Nonperforming Assets to Total Assets Quarter Ended
    (in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                       
    Total Nonperforming Assets $ 30,241     $ 15,460     $ 14,053     $ 14,361     $ 16,042  
    Total Assets   3,206,911       2,560,788       2,438,583       2,324,238       2,226,176  
    Nonperforming Assets to Total Assets   0.94 %     0.60 %     0.58 %     0.62 %     0.72 %
                                           
    Nonperforming Loans to Total Portfolio Loans Quarter Ended
    (in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                       
    Total Nonperforming Loans $ 30,241     $ 15,460     $ 14,053     $ 14,361     $ 16,042  
    Total Portfolio Loans   2,630,163       2,107,522       2,021,588       1,964,525       1,903,288  
    Nonperforming Loans to Total Portfolio Loans   1.15 %     0.73 %     0.70 %     0.73 %     0.84 %
                                           
    Net Charge-Offs to Average Portfolio Loans Quarter Ended
    (in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                       
    Total Net Charge-Offs $ 2,427     $ 2,655     $ 1,935     $ 1,987     $ 2,477  
    Total Average Portfolio Loans   2,592,960       2,053,619       1,992,630       1,927,372       1,863,298  
    Net Charge-Offs to Average Portfolio Loans, Annualized   0.37 %     0.51 %     0.39 %     0.41 %     0.53 %
                                           
    Net Charge-offs to Average Portfolio Loans Year Ended
    (in thousands) December 31, 2024   December 31, 2023
           
    Total Net Charge-Offs $ 9,004     $ 8,473  
    Total Average Portfolio Loans   2,142,638       1,816,968  
    Net Charge-Offs to Average Portfolio Loans, Annualized   0.42 %     0.47 %
                   
    Tangible Book Value per Share Quarter Ended
    (in thousands, except share and per share data) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                       
    Total Stockholders’ Equity $ 355,139     $ 280,111     $ 267,854     $ 259,465     $ 254,860  
    Less: Preferred Equity   —       —       —       —       —  
    Less: Intangible Assets   42,454       —       —       —       —  
    Tangible Common Equity $ 312,685     $ 280,111     $ 267,854     $ 259,465     $ 254,860  
    Period End Shares Outstanding   16,662,405       13,917,891       13,910,467       13,889,563       13,922,532  
    Tangible Book Value per Share $ 18.77     $ 20.13     $ 19.26     $ 18.68     $ 18.31  
                                           
    Return on Average Tangible Common Equity Quarter Ended
    (in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                       
    Net Income $ 7,533     $ 8,672     $ 8,205     $ 6,562     $ 9,030  
    Add: Intangible Amortization, Net of Tax   198       —       —       —       —  
    Net Tangible Income $ 7,731     $ 8,672     $ 8,205     $ 6,562     $ 9,030  
    Average Equity   352,537       274,087       263,425       258,892       248,035  
    Less: Average Intangible Assets   27,653       —       —       —       —  
    Net Average Tangible Common Equity $ 324,884     $ 274,087     $ 263,425     $ 258,892     $ 248,035  
    Return on Average Equity   8.50 %     12.59 %     12.53 %     10.19 %     14.44 %
    Return on Average Tangible Common Equity   9.47 %     12.59 %     12.53 %     10.19 %     14.44 %
                                           
    Core Return on Average Tangible Common Equity Quarter Ended
    (in thousands) December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                       
    Net Income, as Adjusted $ 15,473     $ 9,229     $ 8,267     $ 7,100     $ 9,030  
    Add: Intangible Amortization, Net of Tax   198       —       —       —       —  
    Net Tangible Income, as Adjusted $ 15,671     $ 9,229     $ 8,267     $ 7,100     $ 9,030  
    Core Return on Average Equity, as Adjusted   17.68 %     13.40 %     12.62 %     11.03 %     14.44 %
    Core Return on Average Tangible Common Equity, as Adjusted   19.19 %     13.40 %     12.62 %     11.03 %     14.44 %
                                           

    ABOUT CAPITAL BANCORP, INC.

    Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in six locations in the greater Washington, D.C. and Baltimore, Maryland markets, one bank branch in Fort Lauderdale, Florida and one bank branch in Chicago, Illinois. Capital Bancorp had assets of approximately $3.2 billion at December 31, 2024 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company’s website www.CapitalBankMD.com under its investor relations page.

    FORWARD-LOOKING STATEMENTS

    This earnings release contains forward-looking statements. 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,” “optimistic,” “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 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.  Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.

    While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; geopolitical concerns, including the ongoing wars in Ukraine and in the Middle East; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them, including the costs of compliance with potential legislation to combat cybersecurity at a state, national, or global level; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; the expected cost savings, synergies and other financial benefits from the acquisition of IFH or any other acquisition the Company has made or may make might not be realized within the expected time frames or at all; the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; and other factors that may affect our future results.

    These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update 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 or circumstances, except as required by law.

    FINANCIAL CONTACT: Dominic Canuso (301) 468-8848 x1403

    MEDIA CONTACT: Ed Barry (240) 283-1912

    WEB SITE: www.CapitalBankMD.com

    The MIL Network –

  • MIL-OSI: Enact Mortgage Insurance Enters into Two Forward XOL Reinsurance Transactions as Part of its Diversified Credit Risk Transfer Program

    Source: GlobeNewswire (MIL-OSI)

    RALEIGH, N.C., Jan. 27, 2025 (GLOBE NEWSWIRE) — Enact Holdings, Inc. (Nasdaq: ACT) (Enact), a leading provider of private mortgage insurance through its insurance subsidiaries, today announced that its flagship legal entity, Enact Mortgage Insurance Corporation, has secured approximately $225 million and $260 million of additional excess of loss (XOL) reinsurance coverage. These credit risk transfer (CRT) transactions cover a portion of expected new insurance written for the 2025 book year (policies written from January 1, 2025 through December 31, 2025) and 2026 book year (policies written from January 1, 2026 through December 31, 2026) respectively, and are effective January 1, 2025 and January 1, 2026. Reinsurance coverage for both transactions are provided by a panel of reinsurers each currently rated “A-” or better by Standard & Poor’s (“S&P”) or A.M. Best Company, Inc., or rated “A3” or better by Moody’s.

    “Today’s announcement reflects our on-going commitment to proactively manage credit risk and strengthen our financial position,” said Rohit Gupta, President and CEO of Enact. “Looking ahead, we remain committed to continuing to successfully execute on our CRT strategy while helping people responsibly achieve the dream of homeownership.”

    Safe Harbor Statement
    This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

    About Enact Holdings, Inc.
    Enact (Nasdaq: ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders’ businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.

    This press release was published by a CLEAR® Verified individual.

    The MIL Network –