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Category: housing

  • MIL-OSI Global: Israel’s ban on UNRWA continues a pattern of politicizing Palestinian refugee aid – and puts millions of lives at risk

    Source: The Conversation – USA – By Nicholas R. Micinski, Assistant Professor of Political Science and International Affairs, University of Maine

    The Israeli parliament’s vote on Oct. 28, 2024, to ban the United Nations agency that provides relief for Palestinian refugees is likely to affect millions of people – it also fits a pattern.

    Aid for refugees, particularly Palestinian refugees, has long been politicized, and the United Nations Relief and Works Agency for Palestine Refugees, or UNRWA, has been targeted throughout its 75-year history.

    This was evident earlier in the current Gaza conflict, when at least a dozen countries, including the U.S., suspended funding to the UNRWA, citing allegations made by Israel that 12 UNRWA employees participated in the attack by Hamas on Oct. 7, 2023. In August, the U.N. fired nine UNRWA employees for alleged involvement in the attack. An independent U.N. panel established a set of 50 recommendations to ensure UNRWA employees adhere to the principle of neutrality.

    The vote by the Knesset, Israel’s parliament, to ban the UNRWA goes a step further. It will, when it comes into effect, prevent the UNRWA from operating in Israel and will severely affect its ability to serve refugees in any of the occupied territories that Israel controls, including Gaza. This could have devastating consequences for livelihoods, health, the distribution of food aid and schooling for Palestinians. It would also damage the polio vaccination campaign that the UNRWA and its partner organizations have been carrying out in Gaza since September. Finally, the bill bans communication between Israeli officials and the UNRWA, which would end efforts by the agency to coordinate the movements of aid workers to prevent unintentional targeting by the Israel Defense Forces.

    Refugee aid, and humanitarian aid more generally, is theoretically meant to be neutral and impartial. But as experts in migration and international relations, we know funding is often used as a foreign policy tool, whereby allies are rewarded and enemies punished. In this context, we believe Israel’s banning of the UNRWA fits a wider pattern of the politicization of aid to refugees, particularly Palestinian refugees.

    What is the UNRWA?

    The UNRWA, short for United Nations Relief and Works Agency for Palestine Refugees in the Near East, was established two years after about 750,000 Palestinians were expelled or fled from their homes during the months leading up to the creation of the state of Israel in 1948 and the subsequent Arab-Israeli war.

    Palestinians flee their homes during the 1948 Arab-Israeli war.
    Pictures from History/Universal Images Group via Getty Images

    Prior to the UNRWA’s creation, international and local organizations, many of them religious, provided services to displaced Palestinians. But after surveying the extreme poverty and dire situation pervasive across refugee camps, the U.N. General Assembly, including all Arab states and Israel, voted to create the UNRWA in 1949.

    Since that time, the UNRWA has been the primary aid organization providing food, medical care, schooling and, in some cases, housing for the 6 million Palestinians living across its five fields: Jordan, Lebanon, Syria, as well as the areas that make up the occupied Palestinian territories: the West Bank and Gaza Strip.

    The mass displacement of Palestinians – known as the Nakba, or “catastrophe” – occurred prior to the 1951 Refugee Convention, which defined refugees as anyone with a well-founded fear of persecution owing to “events occurring in Europe before 1 January 1951.” Despite a 1967 protocol extending the definition worldwide, Palestinians are still excluded from the primary international system protecting refugees.

    While the UNRWA is responsible for providing services to Palestinian refugees, the United Nations also created the U.N. Conciliation Commission for Palestine in 1948 to seek a long-term political solution and “to facilitate the repatriation, resettlement and economic and social rehabilitation of the refugees and the payment of compensation.”

    As a result, UNRWA does not have a mandate to push for the traditional durable solutions available in other refugee situations. As it happened, the conciliation commission was active only for a few years and has since been sidelined in favor of the U.S.-brokered peace processes.

    Is the UNRWA political?

    The UNRWA has been subject to political headwinds since its inception and especially during periods of heightened tension between Palestinians and Israelis.

    While it is a U.N. organization and thus ostensibly apolitical, it has frequently been criticized by Palestinians, Israelis as well as donor countries, including the United States, for acting politically.

    The UNRWA performs statelike functions across its five fields, including education, health and infrastructure, but it is restricted in its mandate from performing political or security activities.

    Initial Palestinian objections to the UNRWA stemmed from the organization’s early focus on economic integration of refugees into host states.

    Although the UNRWA officially adhered to the U.N. General Assembly’s Resolution 194 that called for the return of Palestine refugees to their homes, U.N., U.K. and U.S. officials searched for means by which to resettle and integrate Palestinians into host states, viewing this as the favorable political solution to the Palestinian refugee situation and the broader Israeli-Palestinian conflict. In this sense, Palestinians perceived the UNRWA to be both highly political and actively working against their interests.

    In later decades, the UNRWA switched its primary focus from jobs to education at the urging of Palestinian refugees. But the UNRWA’s education materials were viewed by Israel as further feeding Palestinian militancy, and the Israeli government insisted on checking and approving all materials in Gaza and the West Bank, which it has occupied since 1967.

    A protester is removed by members of the U.S. Capitol Police during a House hearing on Jan. 30, 2024.
    Alex Wong/Getty Images

    While Israel has long been suspicious of the UNRWA’s role in refugee camps and in providing education, the organization’s operation, which is internationally funded, also saves Israel millions of dollars each year in services it would be obliged to deliver as the occupying power.

    Since the 1960s, the U.S. – the UNRWA’s primary donor – and other Western countries have repeatedly expressed their desire to use aid to prevent radicalization among refugees.

    In response to the increased presence of armed opposition groups, the U.S. attached a provision to its UNRWA aid in 1970, requiring that the “UNRWA take all possible measures to assure that no part of the United States contribution shall be used to furnish assistance to any refugee who is receiving military training as a member of the so-called Palestine Liberation Army (PLA) or any other guerrilla-type organization.”

    The UNRWA adheres to this requirement, even publishing an annual list of its employees so that host governments can vet them, but it also employs 30,000 individuals, the vast majority of whom are Palestinian.

    Questions over links of the UNRWA to any militancy has led to the rise of Israeli and international watch groups that document the social media activity of the organization’s large Palestinian staff.

    In 2018, the Trump administration paused its US$60 million contribution to the UNRWA. Trump claimed the pause would create political pressure for Palestinians to negotiate. President Joe Biden restarted U.S. contributions to the UNRWA in 2021.

    While other major donors restored funding to the UNRWA after the conclusion of the investigation in April, the U.S. has yet to do so.

    ‘An unmitigated disaster’

    Israel’s ban of the UNRWA will leave already starving Palestinians without a lifeline. U.N. Secretary General António Guterres said banning the UNRWA “would be a catastrophe in what is already an unmitigated disaster.” The foreign ministers of Canada, Australia, France, Germany, Japan, South Korea and the U.K. issued a joint statement arguing that the ban would have “devastating consequences on an already critical and rapidly deteriorating humanitarian situation, particularly in northern Gaza.”

    Reports have emerged of Israeli plans for private security contractors to take over aid distribution in Gaza through dystopian “gated communities,” which would in effect be internment camps. This would be a troubling move. In contrast to the UNRWA, private contractors have little experience delivering aid and are not dedicated to the humanitarian principles of neutrality, impartiality or independence.

    However, the Knesset’s explicit ban could, inadvertently, force the United States to suspend weapons transfers to Israel. U.S. law requires that it stop weapons transfers to any country that obstructs the delivery of U.S. humanitarian aid. And the U.S. pause on funding for the UNRWA was only meant to be temporary.

    The UNRWA is the main conduit for assistance into Gaza, and the Knesset’s ban makes explicit that the Israeli government is preventing aid delivery, making it harder for Washington to ignore. Before the bill passed, U.S. State Department Spokesperson Matt Miller warned that “passage of the legislation could have implications under U.S. law and U.S. policy.”

    At the same time, two U.S. government agencies previously alerted the Biden administration that Israel was obstructing aid into Gaza, yet weapons transfers have continued unabated.

    Sections of this story were first used in an earlier article published by The Conversation U.S. on Feb. 1, 2024.

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

    – ref. Israel’s ban on UNRWA continues a pattern of politicizing Palestinian refugee aid – and puts millions of lives at risk – https://theconversation.com/israels-ban-on-unrwa-continues-a-pattern-of-politicizing-palestinian-refugee-aid-and-puts-millions-of-lives-at-risk-242379

    MIL OSI – Global Reports –

    January 25, 2025

  • MIL-OSI United Nations: Pan-European Strategy aims to align Transport, Health and Environment policies by 2050

    Source: United Nations Economic Commission for Europe

    Transport plays a crucial role in society and in the economy, enabling access to jobs, services and people, while driving trade and tourism. However, it also brings significant socioeconomic, environmental and health challenges. In most countries, public policies at all levels do not deal with transport, health, environment, and urban planning issues holistically.

    This is about to change thanks to the adoption of the first Pan-European Strategy on Transport, Health and Environment – the result of a vision that connects transport policies with health and environmental goals. The strategy, adopted today in Geneva at the 22nd session of the Steering Committee of the Transport, Health and Environment Pan-European Programme (THE PEP), lays out a road map for the transformation of transport systems by 2050, promoting sustainable urban mobility, cleaner technologies and climate resilience. This brings synergies with other UNECE initiatives, such as the Inland Transport Committee’s Strategy on Reducing Greenhouse Gas Emissions from Inland Transport.

    The strategy aims to:  

    • Recognize the positive role of transport

    The strategy recognizes the transport sector as crucial to sustainable development, promoting health as well as the quality and livability of the environment. By working together, the transport, health and environment sectors can contribute significantly to improving people’s lives.

    • Adopt a holistic approach

    National, regional and local authorities must address transport, health and environmental issues together, in order to develop integrated policies and frameworks. In some countries, financing mechanisms for public transport and infrastructure for walking and cycling are neither sustainable nor adequate. The adoption of a holistic approach will lead to more effective regulations, better budget allocations and improved living conditions.

    • Allow for tailor-made solutions

    The strategy recognizes the diverse realities across the region and calls for tailored solutions that include all stakeholders – Governments, communities, businesses and civil society – to build an inclusive, greener mobility.

    • Support the shift to public transport and active mobility  

    The strategy aims to shift the modal split from the current car-dominated model towards increased public transport and active mobility (cycling and walking). These different modes will need to be treated equally across UNECE member States, with sustainable transport solutions being applied to rural and peri-urban areas. Cargo and freight transport will also become more sustainable. The approach to transport demand will promote proximity to services and enhance sustainable mobility through technology.

    • Address air and noise pollution

    Air pollution is a leading environmental risk to health, causing nearly 570,000 premature deaths in 53 countries of the region according to a 2023 World Health Organization publication. Over 90% of the region’s population is exposed to harmful levels of air pollutants, with road transport being a major source of such pollutants through exhaust and non-exhaust emissions. Road transport accounts for about 25% of energy-related greenhouse gas emissions and is thus a key contributor to climate change.

    The current shift towards vehicle electrification and fleet renewals will allow for the transition to cleaner mobility. At present, transport is the principal source of background noise pollution in urban areas in the region.

    • Maximize health benefits

    Active mobility can significantly reduce health risks, in particular obesity and non-communicable diseases, lessening the burden on healthcare systems. Expanding green spaces and infrastructure for active mobility will also foster mental well-being through greater social interaction.

    • Reinforce social inclusion  

    Lower-income groups tend to live in areas with poorer transport infrastructure, limiting access to services, jobs and social activities. Transport systems also often fail to address the varying needs of people according to gender, age and ability. Road traffic accidents are the main cause of death among people aged 5–29 years worldwide.

    The strategy emphasizes the inclusion of gender, age and disability needs in transport planning, ensuring that mobility is accessible to all. Green finance and fiscal incentives will have an important role to play in driving investment in sustainable transport, creating jobs, and stimulating the economy.

    • Collect and manage data

    The lack or limited quality of data is a recurring challenge and one of the most serious obstacles to informed policymaking in some UNECE member States. This prevents an objective assessment of the impact of transport on the environment and health from being carried out.

    Consistent data on transport, greenhouse gas emissions and mobility will inform policy across the region.

     

    In implementing the Strategy, under the framework of THE PEP, member States will also work on:

    • Directing investments, fiscal incentives and green finance initiatives towards sustainable transport, stimulating job creation and the economy;
    • Making the most of digitalization of transport and mobility services;
    • Increasing the resilience of transport systems to climate change, pandemics and other disasters.

    The next step will be for member States, within the framework of THE PEP and with other stakeholders, to discuss how to implement the Strategy and mobilize the appropriate resources to facilitate implementation, drawing on the knowledge-sharing and good practices of each member State.

    Note to editors

    At the Fifth High-level Meeting on Transport, Health and Environment (Vienna (online), 17–18 May 2021), member States agreed to develop a comprehensive pan-European strategy on transport, health and the environment, including a clear pathway for its implementation, to achieve the agreed vision, and to guide the further work of THE PEP. The Vienna Declaration is available at https://unece.org/pep/publications/vienna-declaration.

    In addition to being the first and only international programme designed to integrate environmental and health aspects into transport, mobility and urban planning policies, THE PEP is a policy framework that brings together the transport, health and environment sectors. It is jointly serviced by UNECE and the World Health Organization Regional Office for Europe. All member States are invited to actively contribute to and support THE PEP and more information in its regard is available at https://unece.org/thepep.

    MIL OSI United Nations News –

    January 25, 2025

  • MIL-OSI: Savi Financial Corporation Earns $205,000 in the Third Quarter of 2024; Results Highlighted by NIM Expansion

    Source: GlobeNewswire (MIL-OSI)

    MOUNT VERNON, Wash., Oct. 29, 2024 (GLOBE NEWSWIRE) — Savi Financial Corporation, Inc. (OTC Pink: SVVB), the bank holding company for SaviBank, today reported net income of $205,000, or $0.05 per diluted share, for the third quarter of 2024. This compared to a net loss of $5,000, or a loss of $0.00 per diluted share, in the second quarter of 2024, and net income of $558,000, or $0.13 per diluted share, in the third quarter of 2023. In the first nine months of 2024, the Company reported a net loss of $216,000, or a loss of $0.05 per diluted share, compared to net income of $1.59 million, or $0.36 per diluted share, in the first nine months of 2023. All results are unaudited.

    “We reported improved third quarter 2024 operating results, compared to the preceding quarter, driven by increases in net interest income, lower non-interest expense and net interest margin expansion,” said Michal D. Cann, Chairman and President of Savi Financial Corporation. “Overall, loan growth was muted during the quarter, in part due to a slowdown in the local economy and uncertainties surrounding the election and future economic growth. However, we are seeing improvements in our loan pipeline, particularly with SBA loan originations. Further, we experienced good growth in core deposits during the quarter, with an increase in core deposits from local municipalities, which will allow us to reduce our reliance on brokered deposits to fund future growth.”

    “Loan growth was relatively flat compared to the preceding quarter and up 5% compared to a year ago. However, we did see good growth in the loan pipelines,” said Andrew Hunter, President and CEO of SaviBank. “We continue to seek out lending opportunities from our customers and anticipate slower than historic loan growth for the remainder of the year.”

    “The increase in loan yields during the quarter contributed to net interest margin (NIM) expansion of four basis points during the current quarter,” said Rob Woods, Chief Financial Officer of SaviBank. “We anticipate funding costs are near their peak and will continue to stabilize and should improve over the next few quarters if interest rates continue to decrease.” The Company’s NIM was 3.52% in the third quarter of 2024, compared to 3.48% in the preceding quarter, and 3.66% in the third quarter a year ago. The NIM remains higher than the peer average of 3.21% posted by the 171 banks that comprised the Dow Jones U.S. Microcap Bank Index as of June 30, 2024. The cost of funds increased to 244 basis points during the third quarter of 2024, compared to 238 basis points in the preceding quarter.

    Merger

    On March 22, 2024, the Company announced that it had signed a Purchase and Assumption agreement whereby Lakewood, WA. based Harborstone Credit Union will acquire SaviBank in an all-cash transaction. The transaction is structured as a purchase agreement with Harborstone Credit Union purchasing substantially all assets and assuming substantially all liabilities of SaviBank. The transaction is anticipated to be completed in the spring of 2025, subject to receiving all regulatory approvals. Shareholders of Savi Financial have approved the acquisition.

    “We look forward to working with Harborstone Credit Union to continue our tradition of having a positive impact in our local communities,” said Cann. “We are deeply focused on providing resources and services for our customers to succeed, and believe that the additional services, products and locations Harborstone Credit Union provides will help us continue to meet the financial needs of our customers. Through the unique structure of this acquisition by Harborstone Credit Union, we believe we are maximizing value to our shareholders who have supported us over the years.”

    Third Quarter 2024 Highlights:

    • The Company reported net income of $205,000 for the third quarter of 2024, compared to net loss of $5,000 for the second quarter of 2024, and net income of $558,000 for the third quarter of 2023.
    • Earnings per diluted share were $0.05 in the third quarter of 2024, compared to losses per diluted share of $0.00 in the preceding quarter, and earnings per diluted share of $0.13 in the third quarter of 2023.
    • Net interest income was $5.06 million in the third quarter of 2024, compared to $4.86 million in the second quarter of 2024, and $5.03 million in the third quarter of 2023.
    • Total revenue, consisting of net interest income and non-interest income, was $5.88 million in the third quarter of 2024, compared to $6.04 million in the preceding quarter and $5.89 million in the third quarter a year ago.
    • Non-interest expense was $5.57 million in the third quarter of 2024, compared to $5.82 million in the preceding quarter, and $5.56 million in the third quarter a year ago. The decrease in non-interest expense during the third quarter of 2024 was largely due to lower salary and employee benefits compared to the prior quarter.
    • Average third quarter 2024 total loans increased 2% to $512.8 million, compared to $503.8 million in the second quarter of 2024, and increased 8% from $473.6 million in the third quarter of 2023. Total loans at September 30, 2024, decreased to $509.5 million from $512.1 million at June 30, 2024, and increased 5% compared to $487.2 million at September 30, 2023.
    • SBA and USDA loan production for the twelve months ended September 30, 2024, totaled 22 loans for $14.5 million, compared to production of 18 loans for $14.8 million in the year-ago period.
    • Average third quarter 2024 total deposits grew 2% to $502.5 million, from $490.8 million in the preceding quarter, and increased 6% from $474.1 million in the third quarter a year ago. Total deposits increased 4% to $512.9 million, at September 30, 2024, compared to $492.1 million at June 30, 2024, and increased 7% compared to $481.5 million at September 30, 2023.
    • The Company recorded an $86,000 provision for credit losses in the third quarter of 2024, compared to a $255,000 provision in the second quarter of 2024, and a $350,000 credit to the provision in the third quarter of 2023.
    • Allowance for loan losses, as a percentage of total loans, was 1.18% at September 30, 2024, compared to 1.19% at June 30, 2024, and 1.16% at September 30, 2023.
    • Nonperforming loans, as a percentage of total loans, was 0.26% at September 30, 2024, compared to 0.24% at June 30, 2024, and 0.09% at September 30, 2023.
    • Nonperforming assets, as a percentage of total assets, was 0.21% at September 30, 2024, compared to 0.20% at June 30, 2024, and 0.19% a year ago.
    • Net charge-offs were $214,000 in the third quarter of 2024, compared to $35,000 in the second quarter of 2024, and $77,000 in the third quarter a year ago.
    • SaviBank capital levels remained above the threshold for well-capitalized institutions with a tier-1 leverage ratio of 8.19% at September 30, 2024.

    About Northwest Washington

    SaviBank currently operates six branches in Skagit County, two branches in Island County, one branch in Whatcom County and one branch in San Juan County. The Skagit, Whatcom, Island and San Juan counties region stretches north from the greater Seattle/Everett/Bellevue metropolis to the Canadian border.

    The housing market in Skagit, Island, Whatcom and San Juan counties remains stable, although it has fallen off the record high levels from the past few years. According to the Northwest Multiple Listing Service, the average home in Skagit County sold for $560,000, up 1.91% in September 30, 2024, compared to a year ago, and there was a 2.37 month supply of homes on the market. For Island County, the average house sold for $605,000, down 0.82% from a year ago and supply totaled 3.18 months. For Whatcom County, the average home sold for $611,000, up 10.38% from a year ago and supply totaled 2.61 months. For San Juan County, the average home sold for $829,000, down from 13.65% a year ago and supply totaled 9.05 months.

    Skagit’s population is projected to grow 3.84% from 2024 through 2029, and median household income is projected to increase by 11.41% during the same time frame. Whatcom County’s population is projected to grow 4.97% from 2024 through 2029, and median household income is projected to increase by 10.99%. Island County’s population is projected to grow 2.24% from 2024 through 2029, and median household income is projected to increase by 12.83%. San Juan County’s population is projected to grow 6.78% from 2024 through 2029, and median household income is projected to increase by 10.88%.

    Sources:
    https://www.nwmls.com/real-estate-news/monthly-market-snapshot/

    https://www.capitaliq.spglobal.com/ 

    About Savi Financial Corporation Inc. and SaviBank

    Savi Financial Corporation is the bank holding company which owns SaviBank. The Bank began operations April 11, 2005, and has 10 branch locations in Anacortes, Burlington, Bellingham, Concrete, Mount Vernon (2), Oak Harbor, Freeland, Sedro-Woolley, and Friday Harbor, Washington. The Bank provides loan and deposit services to customers who are predominantly small and middle-market businesses and individuals in and around Skagit, Island, Whatcom and San Juan counties. As a locally-owned community bank, we believe that when everyone becomes Savi about their finances, our entire community benefits.
    For additional information about SaviBank, visit: www.SaviBank.com.

    About Harborstone Credit Union

    Harborstone Credit Union is a Washington-chartered and federally insured credit union headquartered in Lakewood, Washington. Founded in 1955 as McChord Federal Credit Union, serving airmen on McChord Air Force Base (now Joint Base Lewis McChord), Harborstone Credit Union has grown to become one of the largest credit unions in Washington State with over 91,000 members and approximately $2.1 billion in total assets. Harborstone Credit Union has sixteen branches located throughout King, Pierce, and Thurston counties and offers members a full range of products and services with the aim to assist members in achieving financial well-being through innovative financial solutions that foster thriving communities and economic vitality. For more information, please visit www.harborstone.com.

    Forward Looking Statements

    Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as the businesses of Harborstone Credit Union and SaviBank may not be integrated successfully or such integration may take longer to accomplish than expected, the expected cost savings and any revenue synergies from the acquisition may not be fully realized within the expected timeframes, disruption from the acquisition may make it more difficult to maintain relationships with customers, associates, or suppliers, the required governmental approvals of the acquisition may not be obtained on the proposed terms and schedule, or Savi Financial shareholders may not approve the acquisition, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the companies or any person that the future events, plans, or expectations contemplated by the companies will be achieved. All subsequent written and oral forward-looking statements concerning the companies or any person acting on their behalf is expressly qualified in its entirety by the cautionary statements above. None of Harborstone Credit Union, Savi Financial or SaviBank undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, to reflect circumstances or events that occur after the date the forward-looking statements are made.

     
    SELECTED FINANCIAL DATA                           
    (In thousands of dollars, except for ratios and per share amounts)                      
    Unaudited                              
      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   September 30,
    2023    		   Var %   June 30,
    2024    		   Var %   September 30,
    2024    		   September 30,
    2023    		   Var %
    SUMMARY OF OPERATIONS                              
    Interest income $ 8,756     $ 7,573     16 %   $ 8,371     5 %   $ 24,962     $ 21,092     18 %
    Interest expense   (3,698 )     (2,539 )   46       (3,509 )   5       (10,411 )     (6,092 )   71  
    Net interest income   5,058       5,034     0       4,862     4       14,551       15,000     (3 )
    Provision for loan losses   (86 )     350     (125 )     (255 )   (66 )     (578 )     539     (207 )
                                                             
    NII after loss provision   4,972       5,384     (8 )     4,607     8       13,973       15,539     (10 )
    Non-interest income   825       852     (3 )     1,181     (30 )     2,587       2,796     (7 )
    Non-interest expense   (5,566 )     (5,559 )   0       (5,823 )   (4 )     (16,920 )     (16,415 )   3  
    Income before tax   231       677     (66 )     (35 )   (760 )     (360 )     1,920     (119 )
    Federal income tax expense   26       119     (78 )     (30 )   (187 )     (144 )     333     (143 )
    Net income $ 205     $ 558     (63 )%   $ (5 )   (4,200 )%   $ (216 )   $ 1,587     (114 )%
                                   
    PER COMMON SHARE DATA                              
    Number of shares outstanding (000s)   3,465       3,460     0 %     3,465     — %     3,465       3,460     0.14 %
    Earnings per share, basic $ 0.06     $ 0.16     (63 )   $ (0.00 )   (4,200 )   $ (0.06 )   $ 0.46     (114 )
    Earnings per share, diluted $ 0.05     $ 0.13     (63 )   $ (0.00 )   (4,201 )   $ (0.05 )   $ 0.36     (114 )
    Market value   14.50       6.86     111       14.79     (2 )     14.50       6.86     111  
    Book value   10.93       10.95     (0 )     10.61     3       10.93       10.95     (0 )
    Market value to book value   132.63 %     62.65 %   112       139.40 %   (5 )     132.63 %     62.65 %   112  
                                   
    BALANCE SHEET DATA                              
    Assets $ 623,637     $ 591,370     5 %   $ 621,191     0 %   $ 623,637     $ 591,370     5 %
    Investments securities   36,629       35,140     4       34,698     6       36,629       35,140     4  
    Total loans   509,535       487,184     5       512,080     (0 )     509,535       487,184     5  
    Total deposits   512,912       481,476     7       492,140     4       512,912       481,476     7  
    Borrowings   52,500       52,500     –       72,000     (27 )     52,500       52,500     –  
    Sub Debt – Savi Financial Only   17,000       17,000     –       17,000     –       17,000       17,000     –  
    Shareholders’ equity   37,881       37,887     (0 )     36,777     3       37,881       37,887     (0 )
                                   
    AVERAGE BALANCE SHEET DATA                              
    Average assets $ 622,414     $ 583,931     7 %   $ 612,262     2 %   $ 608,559     $ 557,460     9 %
    Average total loans   512,751       473,590     8       503,793     2       502,860       459,765     9  
    Average total deposits   502,526       474,076     6       490,753     2       498,373       456,093     9  
    Average shareholders’ equity   37,329       37,812     (1 )     36,678     2       37,534       37,082     1  
                                   
    ASSET QUALITY RATIOS                              
    Net (charge-offs) recoveries $ (214 )   $ (77 )   N/M     $ (35 )   N/M     $ (422 )   $ (266 )   N/M  
    Net (charge-offs) recoveries to average loans   (0.17 )%     (0.07 )%   N/M       (0.03 )%   N/M       (0.11 )%     (0.08 )%   N/M  
    Non-performing loans as a % of loans   0.26       0.09     183       0.24     6       0.26       0.09     183  
    Non-performing assets as a % of assets   0.21       0.19     10       0.20     4       0.21       0.19     10  
    Allowance for loan losses as a % of total loans   1.18       1.16     2       1.19     (1 )     1.18       1.16     2  
    Allowance for loan losses as a % of non-performing loans   462.69       1,223.59     (62 )     492.30     (6 )     462.69       1,223.59     (62 )
                                   
    FINANCIAL RATIOSSTATISTICS                              
    Return on average equity   2.20 %     5.90 %   (63 )%     -0.05 %   (4,128 )%     -0.77 %     5.71 %   (113 )%
    Return on average assets   0.13       0.38     (66 )     (0.00 )   (4,133 )     (0.05 )     0.38     (112 )
    Net interest margin   3.52       3.66     (4 )     3.48     1       3.47       3.77     (8 )
    Efficiency ratio   81.59       92.23     (12 )     83.37     (2 )     85.53       92.24     (7 )
    Average number of employees (FTE)   136       145     (6 )     140     (3 )     142       146     (3 )
                                   
    CAPITAL RATIOS                              
                                   
    Tier 1 leverage ratio — Bank   8.19       8.24     (1 )%     8.27     (1 )%     8.19       8.24     (1 )%
    Common equity tier 1 ratio — Bank   9.59       9.08     6       9.36     2       9.59       9.08     6  
    Tier 1 risk-based capital ratio — Bank   9.59       9.08     6       9.36     2       9.59       9.08     6  
    Total risk-based capital ratio –Bank   10.78       10.22     5       10.56     2       10.78       10.22     5  
                                   

    Contact:
    Michal D. Cann
    Chairman & President
    Savi Financial Corporation
    (360) 399-7001

    The MIL Network –

    January 25, 2025

  • MIL-OSI: insightsoftware Eases Reporting for Finance Teams Using Workday, Freeing Time for More Strategic Work

    Source: GlobeNewswire (MIL-OSI)

    RALEIGH, N.C., Oct. 29, 2024 (GLOBE NEWSWIRE) — insightsoftware, the most comprehensive provider of solutions for the Office of the CFO, today launched insightsoftware Reporting for Workday. Establishing a live connection with Workday enables finance teams to speed up report production so they can spend more time on strategic analysis. CFOs, controllers, financial analysts, accountants, operations, and IT managers can report financial data in near real time.

    Finance teams are increasingly seeking to go beyond their native ERP reporting capabilities to create custom reports that are perfectly adapted to their business needs. Consequently, finance professionals often devote considerable time to report creation or rely heavily on IT for support. Research conducted by insightsoftware found that 75% of finance professionals spend at least five to six hours weekly recreating financial reports, totaling 300 hours annually. This underscores the need for more adaptable and user-friendly reporting solutions that allow finance teams to extract greater value from their ERP data using familiar tools like Excel.

    insightsoftware Reporting for Workday empowers finance teams with live connectivity, facilitating more effective reporting on financial data. Built on insightsoftware’s robust connected data Platform, it leverages deep domain expertise with integrated business logic and context, enabling seamless reporting on general ledger data. Finance professionals can efficiently generate financial reports in Excel and delve into transaction details to resolve issues promptly.

    “We are thrilled to offer Workday users a new, more flexible approach to fulfilling their financial reporting needs. Finance teams can now streamline their reporting processes to drive impactful business decisions across their organizations,” said Lee An Schommer, Chief Product Officer and General Manager, FP&A at insightsoftware. “Developing this live connection with Workday demonstrates our ongoing commitment to providing finance teams with exactly what they need to help fuel organizational growth.”

    insightsoftware Reporting for Workday offers finance teams a more flexible and intuitive environment for report creation in Excel, delivering the essential context and business understanding needed for crucial decision-making. This goes beyond what is possible with standard ERP and financial system reporting.

    insightsoftware Reporting for Workday is available across North America, EMEA, and APAC regions, ensuring global reach and support. Visit the insightsoftware website to learn more.

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

    Media Contacts
    Inkhouse for insightsoftware
    insightsoftware@inkhouse.com

    Daniel Tummeley
    Corporate Communications Manager
    PR@insightsoftware.com

    The MIL Network –

    January 25, 2025

  • MIL-OSI: Flywire Survey Uncovers Increasing Demand for Flexible, Patient-Centric Payment Solutions in U.S. Healthcare

    Source: GlobeNewswire (MIL-OSI)

    80% of respondents said they want the ability to pay for a medical bill in installments or as part of a payment plan

    60% cannot afford to pay for an unexpected illness or injury in one lump sum

    Additional Flywire research shows improving the patient payment experience can boost a hospital’s bottom line

    BOSTON, Oct. 29, 2024 (GLOBE NEWSWIRE) — Flywire Corporation (Nasdaq: FLYW), a global payments enablement and software company, has released its new report, Is Paying for Healthcare Consumer Friendly Yet? examining the topic of healthcare affordability and accessibility among patients in the U.S. The research highlights a significant disconnect between patient expectations and current billing practices in U.S. healthcare, and uncovers opportunities for healthcare providers to both improve the patient payment experience and increase collections.

    “Our research found that patients want medical statements that are easier to understand, the ability to pay bills securely online, and they want to pay in installments of longer than 12 months to better manage the high cost of healthcare,” said John Talaga, EVP and GM of Healthcare, Flywire. “By meeting these demands, hospitals and health systems can not only boost patient satisfaction but also protect the financial health of their organization, as we know that patients satisfied with the financial aspect of their care are more likely to pay their bill, return for service and refer their friends. Flywire helps providers engage patients at every stage of the financial journey, with easy to understand, affordable payment options – streamlining the collections process, while helping patients feel more in control of their medical expenses.”

    Patients Are Stressed About High and Unexpected Medical Costs

    With 89% of Americans concerned about rising medical costs, it’s no surprise that understanding bills has become a top priority for patients. 75% of those surveyed said medical bills are too complicated, up from 65% in 2021. Patients are also stressed about unexpected medical bills that may loom in the future: 60% of those surveyed said they cannot afford to pay for an unexpected illness or injury in one lump sum, which increased from 46% in 2021.

    Patients also emphasized the need for bills to be clearer, with many expressing a desire for simplified, easy-to-read statements that outline charges and payment options more effectively. In fact, nearly everyone surveyed (95%) agreed that there needs to be a better way to simplify and pay for medical bills.

    Patients want payment plans and financing options to help them afford medical bills

    93% say it should be easier to pay their medical bills over time. Those with a child in the household are more likely to say they would want to pay in installments than those without a child in the household (84% vs. 79%).

    81% said they would want to have the ability to pay for a medical expense over time – in installments or as part of a payment plan. Respondents cited both longer terms to pay and financing options as ways to make paying for medical bills more affordable, with 38% saying they would prefer to pay medical bills over 12 or 18 months, and 85% of respondents saying they wish they had consumer-friendly options, like buy-now, pay-later.

    Patients weigh payment security in healthcare payment decisions

    Security remains a top concern for American healthcare patients, with 67% of respondents worried about the potential for healthcare payment data breaches. This concern is exacerbated by the fact that 31% have already received notifications of a breach involving their healthcare or personal information, so it’s no surprise that 59% of patients are more concerned about payment security now than they were a few years ago.

    7 ways Flywire solves patients’ biggest payment concerns and boost health systems’ bottom lines

    Flywire’s solutions are designed to optimize the patient financial experience for health systems throughout the U.S., providing patients with a personalized pathway to pay off their balance that’s fully customized to meet every patient’s unique financial needs. And more data suggests that improving the payment experience is core to protecting the financial health of hospitals and health systems. A separate Total Economic Impact analysis showed that by using Flywire’s patient financial engagement platform, healthcare organizations increased revenue by 29% and reduced bad debt as a percentage of net revenue from 5.5% to 4%. Other Flywire clients have reported to reduce their cost per patient payment by 43%.

    As one client put it:

    “Implementing Flywire has been one of the best decisions we’ve made as an organization, because we have seen it in the feedback from our patients. We see, ‘Thank you for making the statements easy to understand,’ because patients weren’t understanding our statements. And ‘Thank you for having the option to go online and pay and be able to set up payment plans and make arrangements,’” said Sonya Turner, Senior Director Patient Accounting, Centra Healthcare

    Additionally, Flywire helps healthcare systems:

    1. Deliver more payment plan options with personalized payment plans that are tailored to patient financial capacity.

    2. Extend collection terms beyond 12 months with non-recourse, integrated financing.

    3. Provide a single platform for in-house and outsourced payment plans.

    4. Provide a single portal to make payments by integrating with an EHR strategy for a single-sign on experience

    5. Provide a secure way to pay online. Ensure compliance with regulatory and industry standards, such as HIPAA and PCI DSS v 4.0, and more.

    6. Increase self-pay collection

    7. Reduce time spent dealing with accounts receivable.

    To view the complete report, please visit here

    About Flywire

    Flywire is a global payments enablement and software company. We combine our proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and complex payments for our clients and their customers.

    Flywire leverages its vertical-specific software and payments technology to deeply embed within the existing A/R workflows for its clients across the education, healthcare and travel vertical markets, as well as in key B2B industries. Flywire also integrates with leading ERP systems, such as NetSuite, so organizations can optimize the payment experience for their customers while eliminating operational challenges.

    Flywire supports more than 4,000 clients with diverse payment methods in more than 140 currencies across more than 240 countries and territories around the world. The company is headquartered in Boston, MA, USA with global offices. For more information, visit www.flywire.com. Follow Flywire on X , LinkedIn and Facebook.

    Safe Harbor Statement

    This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Flywire’s expectations regarding the benefits of its solutions to healthcare patients, Flywire’s business strategy and plans, market growth and trends. Flywire intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as, but not limited to, “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. Such forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions, and uncertainties. Important factors that could cause actual results to differ materially from those reflected in Flywire’s forward-looking statements include, among others, the factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which are on file with the Securities and Exchange Commission (SEC) and available on the SEC’s website at https://www.sec.gov/. Additional factors may be described in those sections of Flywire’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, expected to be filed with the SEC in the fourth quarter of 2024. The information in this release is provided only as of the date of this release, and Flywire undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

    Media Contacts

    Sarah King
    media@flywire.com

    Investor Relations Contact:

    Masha Kahn
    IR@Flywire.com

    The MIL Network –

    January 25, 2025

  • MIL-OSI: Awaken Greater Generosity: Pushpay Enhances Tools for Church Leaders Ahead of Giving Season

    Source: GlobeNewswire (MIL-OSI)

    REDMOND, Wash., Oct. 29, 2024 (GLOBE NEWSWIRE) — Pushpay, the leading payments and engagement solutions provider for mission-driven organizations, today announces several new product enhancements, deeper partner integrations, and tangible resources to equip today’s ministry leaders for a remarkable season of generosity. As nearly 30 percent of charitable giving occurs in the month of December, and roughly 10 percent in the last three days of the year, Pushpay’s latest innovations are designed to help churches inspire generosity within their community.

    With stock and crypto donations on the rise, today Pushpay announces a deeper connection with Engiven, a leading complex giving provider in the U.S., delivering seamless enrollment for Pushpay customers to receive and quickly process stock and cryptocurrency donations without an additional subscription fee. This includes no additional forms, and streamlined processing for customers and their donors.

    “Churches that enable noncash giving are far more likely to receive major gifts, especially at year-end,” said Co-Founder and CEO of Engiven, James Lawrence. “Pushpay has an amazing history of providing innovative solutions to the Church and I’m excited to see new pathways of generosity unlocked as together we make noncash giving more seamless for churches and their donors.”

    Acts of generosity—whether time, talent or tithes—are often a reflection of how connected someone is to their Church. In fact, recent Pushpay data shows that 57% of churches see an increase in overall giving when they focus on ways to engage and cultivate relationships with their people. Pushpay is releasing several new product features and enhancements to help increase connection and generosity leading into the 2024 holiday season, including:

    • Multi-Fund Giving: Allows donors to support multiple causes in one simple flow. Whether it’s missions, building projects, or specific ministries, donors will have the flexibility to distribute their gift across multiple purposes, all within a single, unified experience.
    • App improvements: The new in-app browser will allow users to securely open all external links—including the giving experience—without ever leaving their church app. The new in-app browser brings giving, forms, and other external links directly into the app experience, simply and securely, while limiting distractions from other browser tabs.
    • Resi livestream attendance in Pushpay Insights: An engaged community is a generous community. Pushpay customers can now have a holistic view of how people connect with their services—whether they are in the building or viewing from their home or other location. This feature allows churches to track Resi livestream attendance alongside in-person participation, bringing both data points into one easy-to-view platform via Pushpay Insights.
    • Auto schedule by event and week: Volunteers play a critical role in church, especially during the month of December. This new feature helps administrators efficiently create stronger, more efficient volunteer teams by simplifying the scheduling process. Administrators will be able to schedule volunteers for a single event or an entire week’s worth of services— all in a fraction of the time.

    “Our goal at Pushpay is to empower churches with the tools they need to engage their communities. Our latest innovations not only simplify the giving process but also help ministry leaders build deeper relationships with their congregation,” said Molly Matthews, Pushpay CEO. “By making generosity more accessible and seamless, we’re enabling churches to focus on what matters most—their mission and their people.”

    Lastly, the Company released a new Generosity Hub, which is an online collection of tools, resources and strategies to help ministry teams cultivate a culture of generosity. From general giving tips, to developing a Giving Tuesday campaign, or ways to leverage technology to deeper donor engagement, resources are targeted to help church leaders develop and execute a successful end of year giving strategy.

    Today’s announcement is further reinforcement of Pushpay’s continued commitment to deliver meaningful technology for the Church that helps people connect with people. In fact, 1.3 million moments of connection between churches and their communities are made possible through Pushpay technology every week, which has also resulted in more than $35 billion of generosity to help fuel the mission of the Church over the last five years alone. For more information about Pushpay, visit www.pushpay.com.

    About Pushpay
    Pushpay empowers mission-driven organizations to engage their communities by bringing people together and fostering meaningful connections. Through its innovative suite of products, Pushpay helps create cultures of generosity by streamlining donation processes, enhancing communications, and strengthening relationships. Pushpay’s purpose-built ministry solutions include ChurchStaq, ParishStaq, Pushpay Insights, Resi, and more— all designed to simplify operations and provide data driven insights to support the mission of its customers. Whether managing donations, organizing events, or connecting with community members, Pushpay’s integrated tools enable ministry leaders to focus on what matters most—growing their ministry and deepening engagement. For more information visit www.pushpay.com

    US Media / PR Contact:
    Chelsea Looney
    PR@pushpay.com

    The MIL Network –

    January 25, 2025

  • MIL-OSI Canada: Backgrounder: Canada announces $62 million for sustaining livelihoods by protecting biodiversity in developing countries

    Source: Government of Canada News

    Today, during the United Nations Biodiversity Conference (COP16), the Honourable Ahmed Hussen, Minister of International Development, announced a total of $62 million in funding for the following projects

    Today, during the United Nations Biodiversity Conference (COP16), the Honourable Ahmed Hussen, Minister of International Development, announced a total of $62 million in funding for the following projects:

    Project: Critical Ecosystem Partnership Fund
    Partner: Conservation International
    Funding: $20 million for fiscal years 2024 to 2025 and 2025 to 2026

    The Critical Ecosystem Partnership Fund aims to support the conservation and sustainable use of biodiversity in 3 biodiversity hot spots: the Cerrado in Brazil; countries in the Indo-Burma region, namely Cambodia, Laos and Thailand; and countries in the Tropical Andes region, namely Bolivia, Colombia, Ecuador and Peru. Canada’s contribution will advance gender equality by strengthening leadership skills among women conservationists and enhance locally driven conservation in key biodiversity areas through financial and technical support.

    Project: Biodiversity Ecosystem Restoration for Community Resilience in the Chittagong Hill Tracts in Bangladesh
    Partner: UN Development Programme
    Funding: $12.5 million for fiscal years 2024 to 2025 and 2025 to 2026

    This project aims to strengthen biodiversity conservation and resilient ecosystems in climate-vulnerable and marginalized communities in the Chittagong Hill Tracts region of Bangladesh. The project will work with these communities to develop and implement community-based biodiversity conservation plans. It will also increase women’s role in decision making and in implementing inclusive biodiversity ecosystem restoration plans with local government agencies, as well as improve the restoration of biodiversity ecosystems by vulnerable households and enhance resilient alternative livelihoods of ecosystem-dependent communities to improve market access and biodiversity conservation.

    Project: Supporting the Protection of Marine Biodiversity Within the Eastern Tropical Pacific Ocean Through Dark Vessel Detection Technologies
    Partner: Fisheries and Oceans Canada
    Funding: $5 million for fiscal years 2024 to 2025 and 2025 to 2026

    This project shares Canadian technical expertise to assist Colombia, Costa Rica, Ecuador, Panama and Peru in protecting their unique marine biodiversity and supporting coastal communities, specifically women, Indigenous people and Afro-descendants. The project will provide access to innovative Canadian satellite surveillance technology by MDA Space Ltd. to support monitoring and enforcement efforts to reduce the threats posed by illegal, unreported and unregulated fishing activities.

    Project: Strengthening Marine Law Enforcement in the Eastern Tropical Pacific Ocean
    Partner: WildAid
    Funding: $5 million for fiscal years 2024 to 2025 to 2026 to 2027

    This project will help improve the protection and sustainable use of marine ecosystems in Colombia, Costa Rica, Ecuador, Mexico, Panama and Peru. This will be achieved by strengthening the capacity of national marine authorities and government-endorsed community organizations to reduce the threats posed by illegal, unreported and unregulated fishing. The project will increase the effectiveness of maritime law enforcement by advocating for compliance through education, outreach and the creation of community-wide benefits.

    Project: Enhancing Indigenous Peoples’ Resilience to Climate Change in Colombia
    Partner: World Food Programme
    Funding: $9.5 million for fiscal years 2023 to 2024 to 2027 to 2028

    This project will help increase the resilience of Indigenous communities in the Amazon. The rich and diverse ecosystems in the southern Colombian Amazon rainforest are highly sensitive to climate change, facing rapid alterations in temperature and water availability. This degradation directly affects the food security and nutrition of forest-dependent communities, particularly Indigenous people and women. The project will focus on climate adaptation, sustainable agriculture and environmental management by combining ancestral practices with modern technology. It will promote sustainable agri-food value chains to improve food security and enhance the role of women in climate governance. Project activities will be carried out in Putumayo, Caquetá and Amazonas.

    Project: Podong Indigenous Peoples Initiative
    Partner: International Union for the Conservation of Nature
    Funding: $7 million for fiscal years 2024 to 2025 and 2025 to 2026

    This initiative is the result of a collaboration between the International Union for the Conservation of Nature, Indigenous leaders and the International Indigenous Forum on Biodiversity. Canada’s contribution will help Indigenous people build their capacity to implement gender-responsive biodiversity conservation actions, build leadership skills to engage in global environmental forums and negotiations, and address the barriers Indigenous peoples face in accessing funding for their self-determined climate and biodiversity priorities and actions.

    This initiative will take place in Guatemala, Nepal, Panama and Tanzania. It advances the United Nations Declaration on the Rights of Indigenous Peoples Act, which emphasizes Indigenous peoples’ right to conservation and protection of the environment and the productive capacity of their land.

    Project: Accelerating Systemic Change for Gender Equality and Biodiversity Conservation Through the National Biodiversity Strategies and Action Plans Accelerator Partnership
    Partner: UN Environment Programme
    Funding: $3 million for fiscal years 2024 to 2025 and 2025 to 2026

    The National Biodiversity Strategies and Action Plans (NBSAPs) Accelerator Partnership is a global initiative launched in Montréal at COP15. It provides knowledge, technical and financial support to developing countries for the preparation and implementation of their national biodiversity strategies and action plans. NBSAPs are essential road maps that guide decision making and on-the-ground action to conserve and use biodiversity in a sustainable manner.

    Canada’s support will help Antigua and Barbuda, Comoros, Costa Rica, Eswatini, Tajikistan, Thailand and Togo develop and update their NBSAPs and ensure that they are gender-responsive and inclusive.

    MIL OSI Canada News –

    January 25, 2025

  • MIL-OSI Global: The ancient Irish get way too much credit for Halloween

    Source: The Conversation – USA – By Lisa Bitel, Dean’s Professor of Religion & Professor of History, USC Dornsife College of Letters, Arts and Sciences

    The Celtic festival of Samhain celebrates a time of year when the division between Earth and the otherworld collapses, allowing spirits to pass through. Matt Cardy/Getty Images

    This time of year, I often run across articles proclaiming Halloween a modern form of the pagan Irish holiday of Samhain – pronounced SAW-en. But as a historian of Ireland and its medieval literature, I can tell you: Samhain is Irish. Halloween isn’t.

    The Irish often get credit – or blame – for the bonfires, pranksters, witches, jack-o’-lanterns and beggars who wander from house to house, threatening tricks and soliciting treats.

    The first professional 19th-century folklorists were the ones who created a through line from Samhain to Halloween. Oxford University’s John Rhys and James Frazer of the University of Cambridge were keen to find the origins of their national cultures.

    They observed lingering customs in rural areas of Britain and Ireland and searched medieval texts for evidence that these practices and beliefs had ancient pagan roots. They mixed stories of magic and paganism with harvest festivals and whispers of human sacrifice, and you can still find echoes of their outdated theories on websites.

    But the Halloween we celebrate today has more to do with the English, a ninth-century pope and America’s obsession with consumerism.

    A changing of the seasons

    For two millennia, Samhain, the night of Oct. 31, has marked the turn from summer to winter on the Irish calendar. It was one of four seasonal signposts in agricultural and pastoral societies.

    After Samhain, people brought the animals inside as refuge from the long, cold nights of winter. Imbolc, which is on Feb. 1, marked the beginning of the lambing season, followed by spring planting. Beltaine signaled the start of mating season for humans and beasts alike on May 1, and Lughnasadh kicked off the harvest on Aug. 1.

    But whatever the ancient Irish did on Oct. 31 is lost to scholars because there’s almost no evidence of their pagan traditions except legends written by churchmen around 800 A.D., about 400 years after the Irish started turning Christian. Although they wrote about the adventures of their ancestors, churchmen could only imagine the pagan ways that had disappeared.

    A neopagan celebration of Samhain in October 2021.
    Wikimedia Commons, CC BY-SA

    An otherworld more utopian than terrifying

    These stories about the pagan past told of Irish kings holding annual weeklong feasts, markets and games at Samhain. The day ended early in northwestern Europe, before 5 p.m., and winter nights were long. After sundown, people went inside to eat, drink and listen to storytellers.

    The stories did not link Samhain with death and horror. But they did treat Samhain as a night of magic, when the otherworld – what, in Irish, was known as the “sí” – opened its portals to mortals. One tale, “The Adventure of Nera,” warned that if you went out on Samhain Eve, you might meet dead men or warriors from the sí, or you might unknowingly wander into the otherworld.

    When Nera went out on a dare, he met a thirsty corpse in search of drink and unwittingly followed warriors through a portal into the otherworld. But instead of ghosts and terror, Nera found love. He ended up marrying a “ban sídh” – pronounced “BAN-shee” – an otherworldly woman. But here’s the medieval twist to the tale: He lived happily ever after in this otherworld with his family and farm.

    The Irish otherworld was no hell, either. In medieval tales, it is a sunny place in perpetual spring. Everyone who lives there is beautiful, powerful, immortal and blond. They have good teeth. The rivers flow with mead and wine, and food appears on command. No sexual act is a sin. The houses sparkle with gems and precious metals. Even the horses are perfect.

    Clampdown on pagan customs

    The link between Oct. 31, ghosts and devils was really the pope’s fault.

    In 834, Pope Gregory IV decreed Nov. 1 the day for celebrating all Christian saints. In English, the feast day became All Hallows Day. The night before – Oct. 31 – became known as All Hallows Eve.

    Some modern interpretations insist that Pope Gregory created All Hallows Day to quell pagan celebrations of Samhain. But Gregory knew nothing of ancient Irish seasonal holidays. In reality, he probably did it because everyone celebrated All Saints on different days and, like other Popes, Gregory sought to consolidate and control the liturgical calendar.

    In the later Middle Ages, All Hallows Eve emerged as a popular celebration of the saints. People went to church and prayed to the saints for favors and blessings. Afterward, they went home to feast. Then, on Nov. 2, they celebrated All Souls’ Day by praying for the souls of their lost loved ones, hoping that prayers would help their dead relatives out of purgatory and into heaven.

    But in the 16th century, the Protestant rulers of Britain and Ireland quashed saints’ feast days, because praying to saints seemed idolatrous. Protestant ministers did their best to eliminate popular customs of the early November holidays, such as candle-lit processions and harvest bonfires.

    In the minds of ministers, these customs smacked of heathenism.

    A mishmash of traditions

    Our Halloween of costumed beggars and leering jack-o’-lanterns descends from this mess of traditions, storytelling and antiquarianism.

    Like our ancestors, we constantly remake our most important holidays to suit current culture.

    Jack-o’-lanterns are neither ancient nor Irish. One of the earliest references is an 18th-century account of an eponymous Jack, who tricked the devil one too many times and was condemned to wander the world forever.

    Supposedly, Jack, or whatever the hero was called, carved a turnip and stuck a candle in it as his lantern. But the custom of carving turnips in early November probably originated in England with celebrations of All Saints’ Day and another holiday, Guy Fawkes Day on Nov. 5, with its bonfires and fireworks, and it spread from there.

    Guy Fawkes Day, an annual celebration in Great Britain, features fireworks and bonfires and is observed on Nov. 5.
    Hulton-Deutsch Collection/Corbis via Getty Images

    As for ancient bonfires, the Irish and Britons built them to celebrate Beltaine, but not Samhain – at least, not according to the medieval tales.

    In 19th-century Ireland, All Hallows Eve was a time for communal suppers, games like bobbing for apples and celebrating the magic of courtship. For instance, girls tried to peel apples in one long peel; then they examined the peels to see what letters they resembled – the initials of their future husbands’ names. Boys crept out of the gathering, despite warnings, to make mischief, taking off farm gates or stealing cabbages and hurling them at the neighbors’ doors.

    Halloween with an American sheen

    Across the Atlantic, these customs first appeared in the mid-19th century, when the Irish, English and many other immigrant groups brought their holidays to the U.S.

    In medieval Scotland, “guisers” were people who dressed in disguise and begged for “soul cakes” on All Souls Day. These guisers probably became the costumed children who threatened – and sometimes perpetrated – mischief unless given treats. Meanwhile, carved turnips became jack-o’-lanterns, since pumpkins were plentiful in North America – and easier to carve.

    Like Christmas, Valentine’s Day and Easter, Halloween eventually became a feast of consumerism. Companies mass-produced costumes, paper decorations and packaged candy. People in Britain and Ireland blamed the Americans for the spread of modern Halloween and its customs. British schools even tried to quash the holiday in the 1990s because of its disorderly and demonic connotations.

    The only real remnant of Samhain in Halloween is the date. Nowadays, no one expects to stumble into a romance in the sí. Only those drawn to the ancient Celtic past sense the numinous opening of the otherworld at Samhain.

    But who’s to say which reality prevails when the portals swing open in the dark of Oct. 31?

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

    – ref. The ancient Irish get way too much credit for Halloween – https://theconversation.com/the-ancient-irish-get-way-too-much-credit-for-halloween-239801

    MIL OSI – Global Reports –

    January 25, 2025

  • MIL-OSI Global: Rising partisanship is making nonprofits more reluctant to engage in policy debates − new research

    Source: The Conversation – USA – By Heather MacIndoe, Associate Professor of Public Policy, UMass Boston

    Divisiveness is on the rise. wildpixel/iStock via Getty Images Plus

    Afraid of partisan rancor, nonprofits are biting their tongues, with divisive politics hindering public policy engagement by social service organizations. This is one of our findings in a new study we conducted on behalf of Independent Sector – a coalition of nonprofits, foundations and corporate giving programs.

    Although the law bars charitable nonprofits from endorsing political candidates, charities are allowed to engage in at least some advocacy, lobbying and public affairs work tied to issues that are relevant to their own work. For example, a food pantry can hold an event about food insecurity in its neighborhood. Or the executive director of a homeless shelter can lobby elected officials about proposed zoning changes that would interfere with a planned expansion.

    Nonprofit advocacy involves attempts to influence government policy. This may include some lobbying, along with information-sharing activities, such as sponsoring events to raise public awareness of an issue, conducting research, or educating the public about policies that affect an organization.

    We, scholars who research nonprofits, spoke with a diverse sample of nonprofit leaders to learn about their organizations’ policy engagement.

    Some of the 40 executive directors of social service nonprofits across the nation whom we interviewed had engaged in advocacy, and others had not. The groups were of different sizes and were founded at different times. They were located in red, blue and purple states.

    Our team set out to identify some of the causes of a decline in nonprofit advocacy through these interviews.

    A few of these nonprofit leaders indicated that they lack expertise or don’t fully understand the restrictions they face regarding advocacy. We also heard many of these executives express concerns about partisanship and political polarization.

    As this growing divisiveness has permeated even the most local aspects of American life, many food pantries, homeless shelters and other social service nonprofits are hesitating to take policy positions that may appear partisan to members of their local communities or donors.

    In 2023, fights erupted at Glendale, Calif., school board meetings over the adoption of a resolution recognizing June as Pride Month.
    Robert Gauthier/Los Angeles Times via Getty Images

    When addressing a social media post about Israel and Palestine that had been misconstrued and sparked controversy, the leader of a legal services nonprofit remarked: “The more polarized we are as Americans, the harder it becomes for us to have an open conversation.”

    Other nonprofits feared the consequences of any kind of engagement regarding policy questions.

    “Nonprofits sometimes are afraid to engage with government officials,” a food security nonprofit leader said, because that advocacy might lead to “some form of retaliation” by the authorities.

    Another concern they expressed: Advocacy might alienate donors who disagree with the nonprofit leaders’ stances.

    “It’s like there’s no middle ground anymore,” said the executive director of an emergency housing center. Others discussed how polarization has led to more divisions in board rooms and the loss of donors. That makes it harder for these organizations to decide to take a public stand on many issues.

    Why it matters

    This study followed up on an earlier stage of our research, which showed that nonprofit advocacy and lobbying had declined over the past two decades.

    Extreme partisanship weakens democracy and erodes social relationships.

    We find this trend especially concerning because charitable nonprofits often serve as a voice for many people who don’t have one in American society.

    As a result, when nonprofits fail to engage in the policy process, those voices go unheard, and their needs may become more likely to go unmet. One reason for this is that the people with direct expertise aren’t weighing in on policies that could reduce the need for those services in the first place.

    “The loudest voices are the ones that get heard,” as one nonprofit leader put it. The “people we support don’t have a voice.”

    What still isn’t known

    We don’t know how polarization might affect longer-term engagement by the nonprofit sector.

    Indeed, some of these organizations have stepped up their advocacy efforts over the past five years, and some took strategic steps to buffer their organizations from resistance to policy engagement, such as by replacing board members who were opposed to taking policy stances that represented their clients’ interests.

    Future research is needed to understand these dynamics more fully and how nonprofits respond to prolonged contentious political discourse.

    The Research Brief is a short take about interesting academic work.

    Heather MacIndoe receives funding from Independent Sector and is a current Visiting Scholar with them.

    Lewis Faulk previously received funding from Independent Sector, where he is also a former visiting scholar.

    Mirae Kim previously received funding from Independent Sector. She is affiliated with the Association for Research on Nonprofit Organizations and Voluntary Action (ARNOVA) as a non-paid board member.

    – ref. Rising partisanship is making nonprofits more reluctant to engage in policy debates − new research – https://theconversation.com/rising-partisanship-is-making-nonprofits-more-reluctant-to-engage-in-policy-debates-new-research-231225

    MIL OSI – Global Reports –

    January 25, 2025

  • MIL-OSI Global: Corporate social responsibility disclosures are a double-edged sword, new research suggests

    Source: The Conversation – USA – By Vivek Astvansh, Associate Professor of Quantitative Marketing and Analytics, McGill University

    Hoping to win over customers, businesses from Amazon to Zoom have taken to touting their good deeds in corporate social responsibility reports.

    CSR reports let companies spotlight what they’ve done for workers, consumers, communities and the environment – essentially all their goals beyond simply making a profit. Research shows that CSR statements are linked to rising sales.

    As a marketing professor, I thought that raised an interesting question: When companies find success with CSR disclosures, are they bringing in new customers – or are their extra sales coming from their existing base alone?

    In a recent study of several hundred Chinese companies, a colleague and I put the question to the test. We found that a CSR disclosure lowers a business’s dependence on current customers by 2.1%.

    That’s welcome news for businesses. It means those additional sales are coming from new customers, who are indeed impressed by the company’s CSR efforts.

    But the findings weren’t all positive.

    To sell more products, companies generally need to buy more supplies. So a logical follow-up question is: Does a company’s CSR disclosure lead it to source purchases from new suppliers?

    In fact, we found the opposite. Companies that released CSR disclosures seemed to scare away new suppliers. This is probably because suppliers often bear the costs when a company chooses to prioritize social responsibility.

    Becoming dependent on suppliers comes at a cost to businesses. When suppliers know a company depends on them, they tend to demand payment in cash rather than credit. That can hurt a company, because it now has less cash for investments.

    So while CSR reports impress customers, they appear to antagonize suppliers – and that comes at a price.

    Why it matters

    Prior research has shown that CSR disclosures can boost sales, but it’s long been unclear whether these additional sales are sourced from old customers or newly acquired ones. Our work brings clarity that businesses can use in making decisions.

    The findings are also of interest to lawmakers, regulators and corporate responsibility advocates who are debating making CSR reports mandatory.

    The U.S. doesn’t require businesses to release CSR reports, but some countries do. One is China, which in 2008 mandated that all public companies submit annual CSR reports starting in 2009. This created the conditions for the nearly natural experiment we conducted.

    Interestingly, the U.S. Securities and Exchange Commission has reportedly considered making some form of corporate social responsibility reporting mandatory. In the absence of requirements, many American corporations will continue to voluntarily report their CSR.

    In other words, the need for empirical evidence on the cost and benefits of CSR disclosure is greater than ever.

    What’s next

    The increasing incidence of extreme weather events and weather-related fatalities and injuries has piqued my interest in environmental responsibility. I have two ongoing research projects.

    First, I’m using a company’s public disclosures to measure its environmental risks and the activities it has undertaken to mitigate them. Second, I am researching how CEO incentives shape a company’s environmental disclosure, activities and spending – or the lack thereof.

    The Research Brief is a short take on interesting academic work.

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

    – ref. Corporate social responsibility disclosures are a double-edged sword, new research suggests – https://theconversation.com/corporate-social-responsibility-disclosures-are-a-double-edged-sword-new-research-suggests-241540

    MIL OSI – Global Reports –

    January 25, 2025

  • MIL-OSI Global: Beyond bottled water and sandwiches: What FEMA is doing to get hurricane victims back into their homes

    Source: The Conversation – USA – By Shannon Van Zandt, Professor of Landscape Architecture and Urban Planning, Texas A&M University

    Two people survey their beachfront home and business, which was destroyed in Hurricane Milton, on Manasota Key, Fla., Oct. 13, 2024. AP Photo/Rebecca Blackwell

    In a pattern all too familiar to people affected by disasters, hurricanes Helene and Milton have disappeared from the headlines, just a few weeks after these disasters ravaged the Southeast. Although reporters have moved on, recovery is just beginning for people who were displaced.

    According to government and private analysts, damages may exceed US$50 billion apiece for these two storms. The Red Cross estimates that over 7,200 homes were destroyed or severely damaged and that more than 1,200 people were living in shelters across the affected states as of late October 2024.

    Staffers from the Federal Emergency Management Agency have been on the ground since before Helene and Milton hit, positioned to help as soon as the storms passed, along with state and local responders. But many people aren’t clear about how FEMA helps or what its responsibilities are.

    This may be one reason why the agency has had to dispel rumors about its response to Helene in North Carolina, such as assertions that representatives were coming to seize damaged property.

    We study the impacts of natural disasters and how communities recover. Here’s what FEMA does in zones battered by disasters like Helene and Milton:

    This FEMA video explains how to initiate claims after federally declared disasters.

    Quick cash grants, then funding for repairs

    FEMA works year-round helping communities prepare for disasters and training emergency management personnel to respond to these events. In the wake of declared federal disasters, it offers its Public Assistance and Individuals and Households programs.

    Public Assistance Program funds are available to state and local governments and some nonprofits to help pay for things like removing debris, preventing further damage and restoring public infrastructure. Support from the Individuals and Households Program may include funds for temporary housing and for repairing or replacing primary residences, as well as provision of temporary housing units for people displaced from their homes.

    FEMA launched a new form of flexible aid in March 2024 that provides quick cash payments of $750 per household for immediate needs, such as food, water, gasoline and emergency shelter. Contrary to rumors that have circulated in the wake of Helene, these payments are just a start, not the maximum support that FEMA offers.

    Applicants have to file claims to receive further aid. These requests go through extensive review, such as inspections of home damage. FEMA then decides how much aid to provide, if any.

    The agency will fund repairs intended to make the home safe to live in, but this work may not be enough to return the home to its pre-disaster state. Currently, the maximum FEMA aid for housing assistance is $42,500, plus an additional $42,500 for other disaster-related needs. For many, these amounts will be insufficient.

    FEMA officials say the agency has enough funding to handle immediate response and recovery from both Helene and Milton. However,
    until damage from both storms has been fully assessed, it is hard to know whether FEMA will need supplemental funds from Congress to support long-term recovery.

    Insurance plays a key role

    FEMA’s programs are intended to help with temporary housing and other needs that aren’t covered by insurance. Homeowners are expected to protect themselves against losing their dwellings by insuring their homes.

    However, some natural disasters are not always covered by homeowners insurance. They include storm-driven flooding, earthquakes and wind damage from hurricanes and tornadoes.

    In places that are vulnerable to these hazards, homeowners may have to seek separate coverage, either from private insurers or government-backed lenders of last resort. Households that don’t purchase special coverage, either because it costs too much or they don’t think they need it, will struggle to recover.

    According to FEMA, only 4% of U.S. homeowners have flood insurance, while 99% of U.S. counties have experienced flooding since 1996.

    Other federal funding sources

    Another federal funding source for housing repair and replacement and other personal property losses is the Small Business Administration. But, unlike FEMA grants that don’t need to be repaid, the SBA only offers low-interest loans.

    The main source of funding for long-term housing recovery is the U.S. Department of Housing and Urban Development’s Community Development Block Grant – Disaster Recovery grants. These funds must be approved by Congress following a disaster, so it can take months or years for funds to reach communities.

    Awarding this money as block grants gives state and local governments more flexibility to meet the needs of affected communities. However, it also makes it easier to allocate the funds in ways that don’t address the housing needs of the people they are intended to help.

    In recent years, we have seen many cases in which state or local officials have spent these funds inappropriately. For example, after Hurricane Katrina in 2005, Mississippi Governor Haley Barbour redirected most of his state’s HUD funds to economic development projects, including expanding the port of Gulfport, rather than rebuilding housing for storm survivors.

    Fighting to direct funds to those who need them most often requires legal action, extending the wait for hard-hit communities that need it.

    Renters have few options

    Disaster recovery programs often overlook renters, even though in many areas up to half of residents may rent their homes. Renters have little control over whether their homes are rebuilt at all, much less whether they will be allowed to return to them.

    Our research has shown that owner-occupied housing generally recovers much more quickly than rental housing. Apartment buildings also face a more uncertain recovery than single-family homes.

    Helping the neediest victims

    Even after recent updates to its rules, FEMA still struggles to adequately meet the needs of the most vulnerable groups in society. This includes low-income and minority households, people with disabilities and those who are undocumented.

    Poor households often live in homes that are in bad shape or that have gone through previous disasters without repair. In such cases, it can be hard for FEMA inspectors to determine how much damage was caused by the current disaster, which in turn can lead to claims being denied.

    In south Texas, after hurricanes Dolly and Ike in 2008, thousands of low-income households’ claims were denied, leading to a class-action lawsuit that homeowners ultimately won. After Hurricane Maria devastated Puerto Rico in 2017, many homeowners were denied rebuilding aid because they couldn’t provide a title to prove ownership.

    In response, FEMA created new rules in 2023 for demonstrating ownership. For example, FEMA has modified and expanded the types of documentation needed to prove ownership. The agency has also changed eligibility and assistance rules to make it easier to qualify for assistance.

    Recent research suggests that, at least on the whole, FEMA’s Individual Assistance Program is not likely to underserve poor households. Nonetheless, as people across the Southeast take stock of losses from this year’s hurricanes, we believe it will be important to pay special attention to under-resourced households, whose needs may not be adequately addressed by federal programs.

    Shannon Van Zandt receives funding from the U.S. Department of Housing & Urban Development and the National Institutes for Standards & Technology. She is a board member of Texas Housers, a non-profit that advocates for housing for low-income Texans.

    Walter Gillis Peacock research has been funded by a number of agencies including the National Institute for Standards and Technology, the National Science Foundation, the National Oceanic and Atmospheric Administration, the Department of Homeland Security, and the U.S. Army Corps of Engineers.

    – ref. Beyond bottled water and sandwiches: What FEMA is doing to get hurricane victims back into their homes – https://theconversation.com/beyond-bottled-water-and-sandwiches-what-fema-is-doing-to-get-hurricane-victims-back-into-their-homes-241176

    MIL OSI – Global Reports –

    January 25, 2025

  • MIL-OSI United Kingdom: UK, EU and Canada impose new sanctions targeting Myanmar military regime and its associates

    Source: United Kingdom – Executive Government & Departments

    The UK, EU and Canada have announced further sanctions targeting the Myanmar military’s access to military material, equipment and funds.

    • The UK, EU and Canada have announced a further round of sanctions to increase pressure on the Myanmar military regime and its associates.  

    • UK sanctions target entities supplying aviation fuel and equipment to the Myanmar military. August 2024 saw the highest number of airstrikes on record by the Myanmar military, killing dozens of civilians.  

    The UK, EU and Canada have announced further sanctions targeting the Myanmar military’s access to military material, equipment and funds.  

    UK action will help to constrain the Myanmar military’s ability to conduct airstrikes on civilians, which amount to gross human rights violations.  

    The latest round of UK sanctions is against six entities involved either in providing aviation fuel to the Myanmar military or in the supply of restricted goods, including aircraft parts. Today’s announcement bolsters previous sanctions against suppliers of aviation fuel to the military in February and March 2023 and arms dealers in October 2023.  

    The UK will continue to work with partners to restrict the sale and transfer of arms and finance to the Myanmar military. Since the coup, the UK has provided more than £150 million for life-saving humanitarian assistance, healthcare, education and support for civil society and local communities in Myanmar.

    Minister for the Indo-Pacific, Catherine West said:  

    The human rights violations taking place across Myanmar, including airstrikes on civilian infrastructure, by the Myanmar military is unacceptable and the impact on innocent civilians is intolerable. 

    That is why today the UK is announcing fresh sanctions targeting the suppliers of equipment and aviation fuel to the Myanmar military. Alongside the EU and Canada, we are today further constraining the military’s access to funds, equipment and resources. 

    These sanctions will increase pressure on the Myanmar military. The UK remains steadfast in our support for the Myanmar people and their aspirations for a peaceful and democratic future.

    On 1 February 2021, the Myanmar military overthrew the democratically elected government, led by Aung San Suu Kyi, and installed a military regime. Since then, they have used violence and atrocities to maintain power and suppress any opposition voices. Increasingly brutal tactics have been implemented as the military continue to cling on to power, leading to the highest number of airstrikes on record by the Myanmar military this August (2024), killing dozens of civilians. 

    Over 3.4 million people are now displaced from their homes due to the fighting, over 18 million people are in need of humanitarian assistance, and Myanmar is now seeing a proliferation in serious and organised crime. 

    Background  

    Since the coup, the UK has designated 25 individuals and 33 entities under the Myanmar Sanctions Regime. The UK continues to lead international efforts to undermine the regime’s credibility and constrain their access to revenue and arms. 

    Today the UK has sanctioned: 

    1. Asia Sun Group Company Limited – for being owned or controlled by Zaw Min Tun, a Myanmar businessman previously sanctioned by the UK in 2023 for making available economic resources, namely aviation fuel, directly or indirectly to or for the benefit of the Myanmar security forces. 

    2. Swan Energy Company Limited – for being associated with Asia Sun Trading Company Limited and by for making available economic resources (aviation fuel) directly or indirectly to or for the benefit of the Myanmar security forces.  

    3. Myan-Oil Company Limited – for being associated with Asia Sun Trading Company Limited. 

    4. Rich Ray Trading Company Limited – for being associated with Asia Sun Trading Company Limited and by making available economic resources (aviation fuel) directly or indirectly to or for the benefit of the Myanmar security forces. 

    5. Progress Technology Support Company (a.k.a Royal Shune Lei Co) – for being involved in the supply to Myanmar of restricted goods or restricted technology or of material related to such goods or technology.  

    6. King Royal Technologies Company Limited- for being involved in the supply to Myanmar of goods or technology which could contribute to a serious human rights violation or abuse.

    Media enquiries

    Email newsdesk@fcdo.gov.uk

    Telephone 020 7008 3100

    Contact the FCDO Communication Team via email (monitored 24 hours a day) in the first instance, and we will respond as soon as possible.

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    Updates to this page

    Published 29 October 2024

    MIL OSI United Kingdom –

    January 25, 2025

  • MIL-OSI Europe: ASIA/MYANMAR – Appointment of bishop of Myitkyina

    Source: Agenzia Fides – MIL OSI

    Tuesday, 29 October 2024

    Vatican City (Agenzia Fides) – The Holy Father has appointed the Reverend Fr. John Mung Ngawn La Sam, M.F., of the Missionaries of Faith, until now parish priest of Saint Paul Church and head of the Retreat Centre in Shadau, as bishop of the diocese of Myitkyina, Myanmar.Msgr. John Mung Ngawn La Sam, M.F., was born on 27 April 1973 in Moe Gok. He studied law atMyitkyina University and philosophy at Saint Joseph’s Institute of Philosophy in Pyi Oo Lwin. After completing the year of spirituality at the formation house of the Missionaries of the Faith in Rome (2009-2010), he studied theology at the Pontifical Lateran University (2011-2014).He gave his religious vows in the Congregation of the Missionary Fathers of Faith on 8 September and was ordained a priest on 16 January 2016.He has held the following offices: assistant parish priest of the Saint Colombano Cathedral, Myitkyina (2016-2017), and since 2017, parish priest of Saint Paul’s Church and head of the Retreat Centre in the diocese of Myitkyina. (EG) (Agenzia Fides, 29/10/2024)
    Share:

    MIL OSI Europe News –

    January 25, 2025

  • MIL-OSI: First Financial Northwest, Inc. Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    RENTON, Wash., Oct. 29, 2024 (GLOBE NEWSWIRE) — First Financial Northwest, Inc. (the “Company”) (NASDAQ GS: FFNW), the holding company for First Financial Northwest Bank (the “Bank”), today reported a net loss of $608,000, or $(0.07) per diluted share, for the quarter ended September 30, 2024, compared to net income of $1.6 million, or $0.17 per diluted share, for the quarter ended June 30, 2024, and net income of $1.5 million, or $0.16 per diluted share, for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, the Company reported a net loss of $128,000, or $(0.01) per diluted share, compared to net income of $5.1 million, or $0.56 per diluted share, for the comparable period in 2023.

    The net loss for the quarter was primarily the result of a $1.6 million provision for credit losses. Our allowance for credit losses (“ACL”) analysis determined that a provision for credit losses of $1.6 million was appropriate as of September 30, 2024. This provision mainly relates to two participation loans totaling $6.0 million, for which we are not the lead lender. These loans, secured by short-term rehabilitation and assisted living facilities, have been individually evaluated and classified as “substandard” since March 2022 due to a decline in demand for the services provided at such facilities post-COVID. While payments on the loans were current as of September 30, 2024, updated appraisals received during the quarter resulted in an increase in our ACL. The loan guarantors are under contract to sell another property, with the sale expected to close in the fourth quarter of 2024. Proceeds from this sale are expected to be applied to the two loans, which would improve our position. Additionally, the guarantors reported interest from a national real estate developer in purchasing one of the facilities, though no purchase agreement was entered into as of September 30, 2024. The ACL was also impacted by higher forecasted unemployment rates and increased construction and land development loan balances. Additionally, reserves for unfunded commitments increased by $75,000 due to increased construction lending activity during the quarter.

    “While we recorded a provision for credit losses during the quarter ended September 30, 2024, our credit quality remained strong, with only $853,000 in nonaccrual loans relative to our $1.14 billion total loan portfolio. Our strong credit quality is directly related to our top-notch lending department employees who originate, document and underwrite these loans,” stated Joseph W. Kiley III, President and CEO.

    “We also continue to work closely with Global Federal Credit Union (“Global”) to prepare for the closing of the pending transaction and to ensure a smooth transition for our customers and employees. I truly appreciate the efforts and patience of our employees, customers, and shareholders as we await the final required approval from the National Credit Union Administration before we can close the transaction,” concluded Kiley.

    Highlights for the quarter ended September 30, 2024:

    • Net loans receivable totaled $1.13 billion at September 30, 2024, down $8.9 million from the prior quarter end.
    • Book value per share was $17.39 at September 30, 2024, compared to $17.51 at June 30, 2024, and $17.35 at September 30, 2023.
    • The Bank’s Tier 1 leverage and total capital ratios were 10.9% and 16.7% at September 30, 2024, compared to 10.9% and 16.6% at June 30, 2024, and 10.3% and 16.0% at September 30, 2023, respectively.
    • Credit quality remained strong with nonaccrual loans totaling only $853,000, or 0.07% of total loans.
    • A $1.6 million provision for credit losses was recorded in the current quarter, compared to a $200,000 recapture of provision for credit losses in the prior quarter and a $300,000 recapture of provision for credit losses in the comparable quarter in 2023.

    Deposits totaled $1.17 billion at September 30, 2024, compared to $1.09 billion at June 30, 2024, and $1.21 billion at September 30, 2023. The $79.2 million increase in deposits at September 30, 2024, compared to June 30, 2024, was due primarily to a $81.9 million increase in retail certificates of deposit and a $624,000 increase in noninterest-bearing demand deposits, partially offset by a $1.5 million, $1.4 million, $392,000, and $104,000 decline in interest-bearing demand deposits, money market deposits, savings and brokered deposits, respectively. The increased deposits were used to pay down our FHLB advances to $100.0 million at September 30, 2024, from $176.0 million at June 30, 2024.

    Advances from the FHLB totaled $100.0 million at September 30, 2024, down from $176.0 million at June 30, 2024, and $125.0 million at September 30, 2023, as the increase in deposits during the current quarter allowed us to reduce our reliance on FHLB advances. At September 30, 2024, the $100.0 million in FHLB advances were tied to cash flow hedge agreements where the Bank pays a fixed rate and receives a variable rate in return to assist in the Bank’s interest rate risk management efforts. These cash flow hedge agreements had a weighted average remaining term of 30.8 months and a weighted average fixed interest rate of 1.93% as of September 30, 2024. The average cost of borrowings was 3.19% for the quarter ended September 30, 2024, compared to 2.64% for the quarter ended June 30, 2024, and 2.42% for the quarter ended September 30, 2023.

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

      Sep 30,
    2024    		   Jun 30,
    2024    		   Sep 30,
    2023    		   Three
    Month
    Change    		   One
    Year
    Change
    Deposits: (Dollars in thousands)
    Noninterest-bearing demand $ 100,466   $ 99,842   $ 104,164   $ 624     $ (3,698 )
    Interest-bearing demand   55,506     57,033     60,816     (1,527 )     (5,310 )
    Savings   17,031     17,423     18,844     (392 )     (1,813 )
    Money market   495,978     497,345     501,168     (1,367 )     (5,190 )
    Certificates of deposit, retail   447,474     365,527     349,446     81,947       98,028  
    Brokered deposits   50,900     51,004     175,972     (104 )     (125,072 )
    Total deposits $ 1,167,355   $ 1,088,174   $ 1,210,410   $ 79,181     $ (43,055 )
     

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

    September 30, 2024
      Noninterest-bearing demand Interest-bearing demand Savings Money
    market    		 Certificates of deposit, retail Brokered
    deposits    		 Total
      (Dollars in thousands)
    King County              
    Renton $ 29,388 $ 14,153 $ 10,654 $ 305,836 $ 315,721 $ – $ 675,752
    Landing   3,442   1,660   237   8,348   12,733   –   26,420
    Woodinville   1,968   2,234   959   8,852   11,522   –   25,535
    Bothell   2,965   1,151   401   1,536   5,918   –   11,971
    Crossroads   14,770   2,039   107   31,665   18,136   –   66,717
    Kent   5,417   10,502   44   16,053   8,562   –   40,578
    Kirkland   10,967   1,890   206   11,243   2,240   –   26,546
    Issaquah   1,186   294   18   2,547   6,580   –   10,625
    Total King County   70,103   33,923   12,626   386,080   381,412   –   884,144
    Snohomish County              
    Mill Creek   3,990   2,171   384   14,628   10,312   –   31,485
    Edmonds   9,254   6,831   330   18,549   13,281   –   48,245
    Clearview   5,587   5,242   1,462   21,206   12,251   –   45,748
    Lake Stevens   3,970   4,282   1,244   23,257   15,571   –   48,324
    Smokey Point   2,994   1,664   969   29,353   11,387   –   46,367
    Total Snohomish County   25,795   20,190   4,389   106,993   62,802   –   220,169
    Pierce County              
    University Place   2,940   53   4   1,848   1,458   –   6,303
    Gig Harbor   1,628   1,340   12   1,057   1,802   –   5,839
    Total Pierce County   4,568   1,393   16   2,905   3,260   –   12,142
                   
    Brokered deposits   –   –   –   –   –   50,900   50,900
                   
    Total deposits $ 100,466 $ 55,506 $ 17,031 $ 495,978 $ 447,474 $ 50,900 $ 1,167,355
    June 30, 2024
      Noninterest-bearing demand Interest-bearing demand Savings Money
    market    		 Certificates of deposit, retail Brokered
    deposits    		 Total
      (Dollars in thousands)
    King County              
    Renton $ 30,336 $ 14,380 $ 11,186 $ 306,176 $ 246,076 $ – $ 608,154
    Landing   2,079   566   113   7,895   9,881   –   20,534
    Woodinville   1,953   2,949   987   10,931   10,845   –   27,665
    Bothell   3,336   847   398   1,595   6,055   –   12,231
    Crossroads   13,585   2,858   28   25,599   17,748   –   59,818
    Kent   7,729   8,142   42   14,525   7,448   –   37,886
    Kirkland   8,326   1,789   210   15,007   1,752   –   27,084
    Issaquah   1,287   232   22   3,971   6,202   –   11,714
    Total King County   68,631   31,763   12,986   385,699   306,007   –   805,086
    Snohomish County              
    Mill Creek   5,823   2,306   420   15,209   9,578   –   33,336
    Edmonds   10,418   9,470   402   20,255   12,753   –   53,298
    Clearview   4,810   4,888   1,444   18,695   9,504   –   39,341
    Lake Stevens   4,111   4,445   1,171   22,618   14,090   –   46,435
    Smokey Point   2,700   3,152   982   31,808   10,435   –   49,077
    Total Snohomish County   27,862   24,261   4,419   108,585   56,360   –   221,487
    Pierce County              
    University Place   2,385   41   2   1,819   1,503   –   5,750
    Gig Harbor   964   968   16   1,242   1,657   –   4,847
    Total Pierce County   3,349   1,009   18   3,061   3,160   –   10,597
                   
    Brokered deposits   –   –   –   –   –   51,004   51,004
                   
    Total deposits $ 99,842 $ 57,033 $ 17,423 $ 497,345 $ 365,527 $ 51,004 $ 1,088,174
     

    Net loans receivable totaled $1.13 billion at September 30, 2024, compared to $1.14 billion at June 30, 2024, and $1.17 billion at September 30, 2023. During the quarter ended September 30, 2024, loan repayments outpaced new loan fundings across all loan categories except construction and land development. The average balance of net loans receivable totaled $1.13 billion for the quarter ended September 30, 2024, compared to $1.14 billion for the quarter ended June 30, 2024, and $1.17 billion for the quarter ended September 30, 2023.

    The ACL represented 1.42% of total loans receivable at September 30, 2024, compared to 1.29% at both June 30, 2024, and September 30, 2023.

    Nonaccrual loans totaled $853,000 at September 30, 2024, compared to $4.7 million at June 30, 2024, and $201,000 at September 30, 2023. The decrease compared to the prior quarter was due primarily to the payoff of a $4.1 million commercial real estate loan that had been reported as nonaccrual as of June 30, 2024. The Bank did not incur any loss related to this credit. Additionally, there was no other real estate owned at September 30, 2024, June 30, 2024, or September 30, 2023.

    Net interest income totaled $8.5 million for the quarter ended September 30, 2024, compared to $9.0 million for the quarter ended June 30, 2024, and $9.7 million for the quarter ended September 30, 2023.

    Total interest income was $19.4 million for the quarter ended September 30, 2024, compared to $19.3 million for the quarter ended June 30, 2024, and $19.7 million for the quarter ended September 30, 2023. The increase in total interest income during the current quarter was primarily due to interest income on interest-earning deposits held with banks which increased to $863,000 in the quarter ended September 30, 2024, up 79.0% from $482,000 in the quarter ended June 30, 2024, partially offset by decreases in interest income on loans and investments of $147,000 or 0.9% and $142,000 or 7.5%, respectively. The decrease in total interest income during the current quarter compared to the comparable quarter in 2023, was primarily due to decreases in interest income on loans of $260,000 or 1.5% and on investments of $374,000 or 17.7%, partially offset by increases in interest income on interest-earning deposits held with banks and dividends on FHLB stock of $338,000 or 64.4% and $37,000 or 32.7%, respectively.

    Yield on loans decreased to 5.86% during the recent quarter from 5.93% for the quarter ended June 30, 2024, and increased from 5.73% for the quarter ended September 30, 2023. During the June 30, 2024 quarter, the Bank modified over $130 million in loans under its agreement with Global, resulting in a $214,000 increase in net deferred loan fees and costs, which increased the loan yield. In the most recent quarter, these fees and costs decreased by $266,000. The yield on investment securities for the current quarter was 4.30%, down from 4.38% last quarter and up from 3.98% a year ago.

    Total interest expense was $11.0 million for the quarter ended September 30, 2024, compared to $10.3 million for the quarter ended June 30, 2024, and $10.0 million for the quarter ended September 30, 2023. The increase from the quarters ended June 30, 2024 and September 30, 2023, was due to increases in funding costs. Interest expense on deposits increased $250,000 or 2.6% to $9.7 million, while interest expense on other borrowings increased $364,000 or 42.9% to $1.2 million during the current quarter, compared to the prior quarter. The increase in interest expense on deposits was primarily due to a $32.5 million increase in the average balances of certificates of deposit, partially offset by declines of $28.9 million and $10.7 million in the average balances of brokered deposits and money market deposits, respectively. In addition, the average cost of interest-bearing deposits was 3.80% for the quarter ended September 30, 2024, up from 3.71% for the quarter ended June 30, 2024. The increase in interest expense on other borrowings was due to a $22.4 million increase in the average balance of borrowings, coupled with a 55-basis point increase in the average cost of other borrowings to 3.19% during the quarter ended September 30, 2024, compared to the prior quarter. The increase in interest expense during the current quarter compared to the same quarter in 2023, was also due to increases in both the average balance and cost of outstanding borrowings, which increased by $26.1 million and 77 basis points, respectively.

    Net interest margin was 2.46% for the quarter ended September 30, 2024, compared to 2.66% for the quarter ended June 30, 2024, and 2.69% for the quarter ended September 30, 2023. The decrease in the net interest margin for the quarter ended September 30, 2024, was due primarily to continued pressure on funding costs. The average yield on interest-earning assets decreased seven basis points to 5.66% during the quarter ended September 30, 2024, from 5.73% during the quarter ended June 30, 2024, and increased 20 basis points from 5.46% during the quarter ended September 30, 2023. The average cost of interest-bearing liabilities increased 13 basis points to 3.72% during the quarter, from 3.59% during the quarter ended June 30, 2024, and increased 48 basis points from 3.24% during the quarter ended September 30, 2023. The net interest margin for the month of September 2024 was 2.49%.

    Noninterest income for the quarter ended September 30, 2024, totaled $677,000, up slightly from $673,000 for the quarter ended June 30, 2024, and unchanged from $677,000 for the quarter ended September 30, 2023. The increase compared to the quarter ended June 30, 2024, was primarily due to fluctuations related to our fintech focused venture capital investment more than offsetting the decreases in BOLI income, wealth management revenue and deposit and loan related fees in the quarter.

    Noninterest expense totaled $8.5 million for the quarter ended September 30, 2024, compared to $7.9 million for the prior quarter, and $8.8 million for the same period in 2023. The increase from the June 30, 2024 quarter was primarily due to a $789,000 increase in salaries and employee benefits. This was because the June 2024 quarter included $939,000 in deferred loan costs related to loan modifications, which reduced salary and employee benefit expenses, compared to $117,000 in deferred loan costs in the quarter ended September 30, 2024. Partially offsetting this was a $411,000 refund from the defined benefit plan buyout following a final census review of remaining plan participants. Professional fees also declined by $164,000 in the current quarter, largely due to a $101,000 decline in transaction-related expenses and a $54,000 decline in legal fees. Compared to the September 30, 2023 quarter, the decline in noninterest expense was primarily due to a $412,000 decrease in salaries and employee benefits, a $51,000 decrease in marketing expenses, a $35,000 decline in regulatory assessments, and $10,000 in lower occupancy and equipment expense. These reductions were partially offset by higher data processing, other general and administrative expenses and professional fees.

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

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

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

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

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets
    (Dollars in thousands)
    (Unaudited)
     
    Assets Sep 30,
    2024    		   Jun 30,
    2024    		   Sep 30,
    2023    		   Three
    Month
    Change    		   One
    Year
    Change
                       
    Cash on hand and in banks $ 8,423     $ 10,811     $ 8,074     (22.1 )%   4.3 %
    Interest-earning deposits with banks   72,884       48,173       49,618     51.3     46.9  
    Investments available-for-sale, at fair value   156,609       160,693       204,975     (2.5 )   (23.6 )
    Investments held-to-maturity, at amortized cost   2,462       2,456       2,450     0.2     0.5  
    Loans receivable, net of allowance of $16,265, $14,796, and $15,306 respectively   1,126,146       1,135,067       1,168,079     (0.8 )   (3.6 )
    Federal Home Loan Bank (“FHLB”) stock, at cost   5,403       8,823       6,803     (38.8 )   (20.6 )
    Accrued interest receivable   6,638       6,632       7,263     0.1     (8.6 )
    Deferred tax assets, net   2,690       2,360       3,156     14.0     (14.8 )
    Premises and equipment, net   18,584       19,007       19,921     (2.2 )   (6.7 )
    Bank owned life insurance (“BOLI”), net   38,661       38,368       37,398     0.8     3.4  
    Prepaid expenses and other assets   8,898       11,447       13,673     (22.3 )   (34.9 )
    Right of use asset (“ROU”), net   2,473       2,670       2,818     (7.4 )   (12.2 )
    Goodwill   889       889       889     0.0     0.0  
    Core deposit intangible, net   326       357       451     (8.7 )   (27.7 )
    Total assets $ 1,451,086     $ 1,447,753     $ 1,525,568     0.2     (4.9 )
                       
    Liabilities and Stockholders’ Equity                  
                       
    Deposits                  
    Noninterest-bearing deposits $ 100,466     $ 99,842     $ 104,164     0.6     (3.6 )
    Interest-bearing deposits   1,066,889       988,332       1,106,246     7.9     (3.6 )
    Total deposits   1,167,355       1,088,174       1,210,410     7.3     (3.6 )
    Advances from the FHLB   100,000       176,000       125,000     (43.2 )   (20.0 )
    Advance payments from borrowers for taxes and insurance   5,211       2,764       4,760     88.5     9.5  
    Lease liability, net   2,673       2,866       3,011     (6.7 )   (11.2 )
    Accrued interest payable   294       1,117       2,646     (73.7 )   (88.9 )
    Other liabilities   15,340       16,139       20,506     (5.0 )   (25.2 )
    Total liabilities   1,290,873       1,287,060       1,366,333     0.3     (5.5 )
                       
    Commitments and contingencies                  
                       
    Stockholders’ Equity                  
    Preferred stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding   –       –       –     n/a   n/a
    Common stock, $0.01 par value; authorized 90,000,000 shares; issued and outstanding                  
    9,213,969 shares at September 30, 2024; 9,179,825 shares at June 30, 2024; and 9,179,510 shares at September 30, 2023   92       92       92     0.0     0.0  
    Additional paid-in capital   72,916       72,953       72,926     (0.1 )   (0.0 )
    Retained earnings   93,692       94,300       96,206     (0.6 )   (2.6 )
    Accumulated other comprehensive loss, net of tax   (6,487 )     (6,652 )     (9,989 )   (2.5 )   (35.1 )
    Total stockholders’ equity   160,213       160,693       159,235     (0.3 )   0.6  
    Total liabilities and stockholders’ equity $ 1,451,086     $ 1,447,753     $ 1,525,568     0.2 %   (4.9 )%
    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Consolidated Income Statements
    (Dollars in thousands, except per share data)
    (Unaudited)
     
      Quarter Ended        
      Sep 30,
    2024    		   Jun 30,
    2024    		   Sep 30,
    2023    		   Three
    Month
    Change    		   One
    Year
    Change
    Interest income                  
    Loans, including fees $ 16,658     $ 16,805     $ 16,918     (0.9 )%   (1.5 )%
    Investments   1,744       1,886       2,118     (7.5 )   (17.7 )
    Interest-earning deposits with banks   863       482       525     79.0     64.4  
    Dividends on FHLB Stock   150       144       113     4.2     32.7  
    Total interest income   19,415       19,317       19,674     0.5     (1.3 )
    Interest expense                  
    Deposits   9,748       9,498       9,205     2.6     5.9  
    Other borrowings   1,213       849       766     42.9     58.4  
    Total interest expense   10,961       10,347       9,971     5.9     9.9  
    Net interest income   8,454       8,970       9,703     (5.8 )   (12.9 )
    Provision (recapture of provision) for credit losses   1,575       (200 )     (300 )   (887.5 )   (625.0 )
    Net interest income after provision (recapture of provision) for credit losses   6,879       9,170       10,003     (25.0 )   (31.2 )
                       
    Noninterest income                  
    BOLI income   295       310       244     (4.8 )   20.9  
    Wealth management revenue   42       54       53     (22.2 )   (20.8 )
    Deposit related fees   236       240       247     (1.7 )   (4.5 )
    Loan related fees   96       97       79     (1.0 )   21.5  
    Other income (expense), net   8       (28 )     54     (128.6 )   (85.2 )
    Total noninterest income   677       673       677     0.6     0.0  
                       
    Noninterest expense                  
    Salaries and employee benefits   4,606       3,817       5,018     20.7     (8.2 )
    Occupancy and equipment   1,183       1,225       1,193     (3.4 )   (0.8 )
    Professional fees   585       749       553     (21.9 )   5.8  
    Data processing   838       856       742     (2.1 )   12.9  
    Regulatory assessments   165       170       200     (2.9 )   (17.5 )
    Insurance and bond premiums   113       118       111     (4.2 )   1.8  
    Marketing   46       47       97     (2.1 )   (52.6 )
    Other general and administrative   952       959       856     (0.7 )   11.2  
    Total noninterest expense   8,488       7,941       8,770     6.9     (3.2 )
    (Loss) income before federal income tax (benefit) provision   (932 )     1,902       1,910     (149.0 )   (148.8 )
    Federal income tax (benefit) provision   (324 )     347       409     (193.4 )   (179.2 )
    Net (loss) income $ (608 )   $ 1,555     $ 1,501     (139.1 )%   (140.5 )%
                       
    Basic (loss) earnings per share $ (0.07 )   $ 0.17     $ 0.16          
    Diluted (loss) earnings per share $ (0.07 )   $ 0.17     $ 0.16          
    Weighted average number of common shares outstanding   9,190,146       9,168,414       9,127,568          
    Weighted average number of diluted shares outstanding   9,190,146       9,235,446       9,150,059          
     

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

      September 30, 2024 June 30, 2024 September 30, 2023
      Amount   Percent   Amount   Percent   Amount   Percent
      (Dollars in thousands)
    Commercial real estate:                      
    Residential:                      
    Multifamily $ 132,811     11.6 %   $ 134,302     11.7 %   $ 140,022     11.7 %
    Total multifamily residential   132,811     11.6       134,302     11.7       140,022     11.7  
                           
    Non-residential:                      
    Retail   118,840     10.4       118,154     10.4       130,101     11.0  
    Office   73,778     6.5       74,032     6.4       72,773     6.1  
    Hotel / motel   54,716     4.8       55,018     4.8       63,954     5.4  
    Storage   32,443     2.8       32,636     2.8       33,229     2.8  
    Mobile home park   22,443     2.0       23,159     2.0       21,285     1.8  
    Warehouse   18,743     1.6       18,868     1.6       19,446     1.6  
    Nursing Home   11,407     1.0       11,474     1.0       11,676     1.0  
    Other non-residential   30,719     2.7       32,139     2.8       42,227     3.7  
    Total non-residential   363,089     31.8       365,480     31.8       394,691     33.4  
                           
    Construction/land:                      
    One-to-four family residential   42,846     3.8       39,908     3.5       43,532     3.7  
    Multifamily   7,227     0.6       6,078     0.5       2,043     0.2  
    Land development   10,148     0.8       9,800     0.8       9,766     0.8  
    Total construction/land   60,221     5.2       55,786     4.8       55,341     4.7  
                           
    One-to-four family residential:                      
    Permanent owner occupied   279,744     24.5       283,516     24.7       260,970     22.1  
    Permanent non-owner occupied   221,127     19.4       225,423     19.6       232,238     19.6  
    Total one-to-four family residential   500,871     43.9       508,939     44.3       493,208     41.7  
                           
    Business:                      
    Aircraft   –     0.0       –     0.0       1,981     0.2  
    Small Business Administration (“SBA”)   1,745     0.2       1,763     0.2       1,810     0.3  
    Paycheck Protection Plan (“PPP”)   238     0.0       316     0.0       551     0.0  
    Other business   12,416     1.1       12,984     1.1       23,633     1.9  
    Total business   14,399     1.3       15,063     1.3       27,975     2.4  
                           
    Consumer:                      
    Classic, collectible and other auto   58,085     5.1       56,758     4.9       59,955     5.1  
    Other consumer   12,935     1.1       13,535     1.2       12,193     1.0  
    Total consumer   71,020     6.2       70,293     6.1       72,148     6.1  
                           
    Total loans   1,142,411     100.0 %     1,149,863     100.0 %     1,183,385     100.0 %
    Less:                      
    ACL   16,265           14,796           15,306      
    Loans receivable, net $ 1,126,146         $ 1,135,067         $ 1,168,079      
                           
    Concentrations of credit: (1)                      
    Construction loans as % of total capital   36.8 %         34.8 %         37.8 %    
    Total non-owner occupied commercial
    real estate as % of total capital    		   296.2 %         298.8 %         328.1 %    
     

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

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Key Financial Measures
    (Unaudited)
     
      At or For the Quarter Ended
      Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,
        2024       2024       2024       2023       2023  
      (Dollars in thousands, except per share data)
    Performance Ratios: (1)                  
    Return on assets   (0.17 )%     0.43 %     (0.29 )%     0.31 %     0.39 %
    Return on equity   (1.50 )     3.88       (2.67 )     2.97       3.71  
    Dividend payout ratio   0.00       76.47       (108.33 )     100.00       79.26  
    Equity-to-assets ratio   11.04       11.10       10.91       10.74       10.44  
    Tangible equity ratio (2)   10.97       11.02       10.83       10.66       10.36  
    Net interest margin   2.46       2.66       2.55       2.54       2.69  
    Average interest-earning assets to average interest-bearing liabilities   116.46       117.01       116.40       115.84       116.94  
    Efficiency ratio   92.96       82.35       116.97       85.17       84.49  
    Noninterest expense as a percent of average total assets   2.32       2.21       3.05       2.18       2.29  
    Book value per common share $ 17.39     $ 17.51     $ 17.46     $ 17.61     $ 17.35  
    Tangible book value per share (2)   17.26       17.37       17.32       17.47       17.20  
                       
    Capital Ratios: (3)                  
    Tier 1 leverage ratio   10.86 %     10.91 %     10.41 %     10.18 %     10.25 %
    Common equity tier 1 capital ratio   15.43       15.39       14.98       14.90       14.75  
    Tier 1 capital ratio   15.43       15.39       14.98       14.90       14.75  
    Total capital ratio   16.68       16.64       16.24       16.15       16.00  
                       
    Asset Quality Ratios: (4)                  
    Nonaccrual loans as a percent of total loans   0.07 %     0.41 %     0.02 %     0.02 %     0.02 %
    Nonaccrual loans as a percent of total assets   0.06       0.32       0.01       0.01       0.01  
    ACL as a percent of total loans   1.42       1.29       1.30       1.28       1.29  
    Net charge-offs to average loans receivable, net   0.00       0.00       0.00       0.00       0.00  
                       
    Allowance for Credit Losses:                  
    ACL ‒ loans                  
    Beginning balance $ 14,796     $ 14,996     $ 15,306     $ 15,306     $ 15,606  
    Provision (recapture of provision) for credit losses   1,500       (200 )     (300 )     –       (300 )
    Charge-offs   (31 )     –       (10 )     –       –  
    Recoveries   –       –       –       –       –  
    Ending balance $ 16,265     $ 14,796     $ 14,996     $ 15,306     $ 15,306  
                       
    Allowance for unfunded commitments                  
    Beginning balance $ 564     $ 564     $ 439     $ 439     $ 439  
    Provision for credit losses   75       –       125       –       –  
    Ending balance $ 639     $ 564     $ 564     $ 439     $ 439  
                       
    Provision (recapture of provision) for credit losses                  
    ACL – loans $ 1,500     $ (200 )   $ (300 )   $ –     $ (300 )
    Allowance for unfunded commitments   75       –       125       –       –  
    Total $ 1,575     $ (200 )   $ (175 )   $ –     $ (300 )
     

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

    FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES
    Key Financial Measures
    (Unaudited)
     
      At or For the Quarter Ended
      Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,
        2024       2024       2024       2023       2023  
      (Dollars in thousands)
    Yields and Costs: (1)                  
    Yield on loans   5.86 %     5.93 %     5.88 %     5.83 %     5.73 %
    Yield on investments   4.30       4.38       4.11       4.11       3.98  
    Yield on interest-earning deposits   5.27       5.25       5.28       5.32       5.18  
    Yield on FHLB stock   7.73       8.63       7.79       7.29       6.57  
    Yield on interest-earning assets   5.66 %     5.73 %     5.62 %     5.56 %     5.46 %
                       
    Cost of interest-bearing deposits   3.80 %     3.71 %     3.69 %     3.62 %     3.33 %
    Cost of borrowings   3.19       2.64       2.65       2.40       2.42  
    Cost of interest-bearing liabilities   3.72 %     3.59 %     3.58 %     3.50 %     3.24 %
                       
    Cost of total deposits (2)   3.47 %     3.38 %     3.38 %     3.31 %     3.03 %
    Cost of funds (3)   3.44 %     3.30 %     3.31 %     3.23 %     2.97 %
                       
    Average Balances:                  
    Loans $ 1,131,473     $ 1,139,017     $ 1,160,156     $ 1,167,339     $ 1,171,483  
    Investments   161,232       173,102       202,106       206,837       211,291  
    Interest-earning deposits   65,149       36,959       37,032       65,680       40,202  
    FHLB stock   7,719       6,714       6,554       6,584       6,820  
    Total interest-earning assets $ 1,365,573     $ 1,355,792     $ 1,405,848     $ 1,446,440     $ 1,429,796  
                       
    Interest-bearing deposits $ 1,021,041     $ 1,029,608     $ 1,082,168     $ 1,127,690     $ 1,097,324  
    Borrowings   151,478       129,126       125,604       120,978       125,402  
    Total interest-bearing liabilities   1,172,519       1,158,734       1,207,772       1,248,668       1,222,726  
    Noninterest-bearing deposits   96,003       101,196       99,173       102,869       109,384  
    Total deposits and borrowings $ 1,268,522     $ 1,259,930     $ 1,306,945     $ 1,351,537     $ 1,332,110  
                       
    Average assets $ 1,453,431     $ 1,446,207     $ 1,495,753     $ 1,538,955     $ 1,522,224  
    Average stockholders’ equity   161,569       161,057       161,823       159,659       160,299  
     

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

    Non-GAAP Financial Measures

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

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

      Quarter Ended
        Sep 30,
    2024    		       Jun 30,
    2024    		       Mar 31,
    2024    		       Dec 31,
    2023    		       Sep 30,
    2023    		  
      (Dollars in thousands, except per share data)
    Tangible equity to tangible assets and tangible book value per share:
                                           
    Total stockholders’ equity (GAAP) $ 160,213     $ 160,693     $ 160,183     $ 161,660     $ 159,235  
    Less:                  
    Goodwill   889       889       889       889       889  
    Core deposit intangible, net   326       357       388       419       451  
    Tangible equity (Non-GAAP) $ 158,998     $ 159,447     $ 158,906     $ 160,352     $ 157,895  
                       
    Total assets (GAAP) $ 1,451,086     $ 1,447,753     $ 1,468,350     $ 1,505,082     $ 1,525,568  
    Less:                  
    Goodwill   889       889       889       889       889  
    Core deposit intangible, net   326       357       388       419       451  
    Tangible assets (Non-GAAP) $ 1,449,871     $ 1,446,507     $ 1,467,073     $ 1,503,774     $ 1,524,228  
                       
    Common shares outstanding at period end   9,213,969       9,179,825       9,174,425       9,179,510       9,179,510  
                       
    Equity-to-assets ratio (GAAP)   11.04 %     11.10 %     10.91 %     10.74 %     10.44 %
    Tangible equity-to-tangible assets ratio (Non-GAAP)   10.97       11.02       10.83       10.66       10.36  
    Book value per common share (GAAP) $ 17.39     $ 17.51     $ 17.46     $ 17.61     $ 17.35  
    Tangible book value per share (Non-GAAP)   17.26       17.37       17.32       17.47       17.20  

    The MIL Network –

    January 25, 2025

  • MIL-OSI: SECU Foundation Awards $1 Million to SPCA Wake for State’s First Regional Campus for Pets & People

    Source: GlobeNewswire (MIL-OSI)

    RALEIGH, N.C., Oct. 29, 2024 (GLOBE NEWSWIRE) — A $1 million challenge grant from SECU Foundation to SPCA of Wake County (SPCA Wake) will help the largest animal welfare organization in North Carolina establish a Regional Campus for Pets & People. The site will serve as a community hub to expand affordable pet care services and will include a new Learning Center that will provide more space to grow SPCA’s training capacity for new or potential pet owners and develop partnerships and programming for animal shelter professionals across the state.

    SPCA Wake supports 59 counties, including many rural and under-resourced communities, to help match homeless pets with families, prevent animals from entering area shelters, and address animal suffering, neglect, and overpopulation. In 2022, SPCA placed over 4,250 pets in new homes, provided over 7,300 spay or neuter surgeries, managed 6,700 pet helpline requests, and supplied over 159,000 pet meals to owners in need.

    “Pets bring people together and can provide a great source of comfort. It is our hope that the Foundation’s grant will shed light on the phenomenal work of SPCA Wake and the significant need for the new campus facility,” said SECU Foundation Board Chair Chris Ayers. “Our support along with that of many others will undoubtedly help SPCA Wake make a transformative impact in our communities.”

    “We are honored to be a part of SECU Foundation’s legacy of positive impact across North Carolina, and we are humbled to be the first animal welfare organization to receive funding for a capital project,” said SPCA of Wake County President and CEO Kim Janzen. “Thanks to the incredible generosity of our community and the members of State Employees’ Credit Union, we have raised $20.3 million toward the total project goal of $27.5 million.”

    About SECU and SECU Foundation

    A not-for-profit financial cooperative owned by its members, and federally insured by the National Credit Union Administration (NCUA), SECU has been providing employees of the state of North Carolina and their families with consumer financial services for 87 years. SECU is the second largest credit union in the United States with $56 billion in assets. It serves more than 2.8 million members through 275 branch offices, over 1,100 ATMs, Member Services Support via phone, www.ncsecu.org, and the SECU Mobile App. The SECU Foundation, a 501(c)(3) charitable organization funded by the contributions of SECU members, promotes local community development in North Carolina primarily through high-impact projects in the areas of housing, education, healthcare, and human services. Since 2004, SECU Foundation has made a collective financial commitment of over $300 million for initiatives to benefit North Carolinians statewide.

    Contact: Jama Campbell, Executive Director, secufoundation@ncsecu.org

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f58a4914-50cd-44f1-8449-116e398af036

    The MIL Network –

    January 25, 2025

  • MIL-OSI: Federal Home Loan Bank of Indianapolis announces 2024 Board of Directors election results

    Source: GlobeNewswire (MIL-OSI)

    INDIANAPOLIS, Oct. 29, 2024 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of Indianapolis (“FHLBank Indianapolis” or “Bank”) today announced the results of the election of two Indiana Member Directors and three Independent Directors to its Board of Directors (“Board”). The following individuals were elected to the Board and will each serve four-year terms beginning Jan. 1, 2025.

    The new Indiana Member Directors are:

    • Dan L. Moore, executive chairman, Home Bank, S.B., Martinsville, Ind. Previously, Moore served as its chairman, president and CEO and director. Moore served on the Board from 2011 to 2022 and was Board Chair from 2019 to 2022. He also served as Chairman of the Council of Federal Home Loan Banks in 2022.
    • Jamie R. Shinabarger, CEO, Springs Valley Bank & Trust Co., Jasper, Ind. Shinabarger also serves on the bank’s board of directors and of SVB&T Corp., the bank’s holding company in French Lick, Ind.

    The new Independent Directors are:

    • Kathryn M. Dominguez, professor of public policy and economics, University of Michigan’s Gerald R. Ford School of Public Policy in Ann Arbor, Mich. She also serves as the school’s Associate Dean for Academic Affairs and is the co-faculty director of the Center on Finance, Law and Policy. Dominguez was appointed to the Board as an Independent Director to fill a partial term in 2023, and currently serves as the Vice Chair of the Risk Oversight Committee.
    • Charlotte C. Henry, former chief information technology officer for the UAW Retiree Medical Benefits Trust, Detroit. Henry has been an Independent Director on the Board since 2017. She currently serves as the Vice Chair of the Board’s Security and Technology Committee, and formerly served as the Chair of that committee.
    • Todd E. Sears (Public Interest Independent Director), vice president of development, Cohen Esrey, Indianapolis. Previously, Sears served as chief investment officer and chief financial officer of Valeo Financial Advisors and was executive vice president of research, policy and strategy at Kittle Property Group, Inc., in Indianapolis. Sears previously served as the executive vice president for the non-profit CDFI, Indianapolis Neighborhood Housing Partnership. He has served as an Independent Director on the Board since 2021 and previously served on the Board’s Affordable Housing Advisory Council from 2012-2018.

    Annually, the Director of the Federal Housing Finance Agency determines the size of the Board and designates at least a majority, but no more than 60%, of the directorships as member directorships and the remainder as independent directorships. Independent directors are nominated by the Board after consultation with the Bank’s Affordable Housing Advisory Council and the Federal Housing Finance Agency.

    Media contact:
    Scott Thien, Sr. Communications Lead
    317-902-3103
    sthien@fhlbi.com

    Building Partnerships. Serving Communities
    FHLBank Indianapolis is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to provide access to low-cost funding for their member financial institutions, with particular attention paid to providing solutions that support the housing and small business needs of members’ customers. FHLBanks are privately capitalized and funded, and they receive no Congressional appropriations. One of 11 independent regional cooperative banks across the U.S., FHLBank Indianapolis is owned by its Indiana and Michigan financial institution members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. For more information about FHLBank Indianapolis, visit www.fhlbi.com and follow the Bank on LinkedIn, and Instagram and X at @FHLBankIndy.

    The MIL Network –

    January 25, 2025

  • MIL-OSI: First Northwest Bancorp Reports Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    PORT ANGELES, Wash., Oct. 29, 2024 (GLOBE NEWSWIRE) —

    CEO Commentary
    “This was a quarter of mixed results. Progress on customer deposit gathering and the termination of the FDIC Consent Order was overshadowed by a quarterly loss driven by additional provisions primarily related to certain equity loans made to high net worth, accredited investors.

    The teamwork and collaboration between Staff, Management and the Board to address the matters identified in the Consent Order is demonstrative of the qualifications, determination and capabilities of the First Fed team. We appreciate that the FDIC acknowledged the planning, monitoring and execution required to comply with the Order and validation that all of these matters were properly addressed. I am very proud of this accomplishment, and I would like to thank all of the many people within the bank who worked tirelessly to reach this achievement less than one year after the Order was issued.

    Through an internal review of our loan portfolio and with consultation with our prudential regulators, it was determined that larger provisions were required in the second quarter of 2024. As a result, we decided it was appropriate to file a restated quarterly report on Form 10-Q for the quarter ended June 30, 2024, and identified a material weakness in the design of certain internal controls. The loans for which we increased reserves were originated between 2020 and 2023. More recent vintages of our loan portfolio are performing well as we have engaged in lending and partnerships that we have evaluated as having a relatively lower risk profile. The provision for credit losses after the amendment was $8.7 million in the second quarter of 2024.

    Management and the Board of Directors take the reported material weakness very seriously. We have taken corrective action to address the basis for the restatement and are working to promptly remediate. 

    We also acknowledge the ongoing lawsuits filed by some of the Water Station equipment borrowers. We intend to vigorously defend against these claims, which we believe are meritless. We also intend to continue pursuing collection of all monies owed by the litigants using all available legal means.

    Moving forward, the highly capable bankers at First Fed are focused on continuing to build relationships with small businesses and individuals in the communities we serve. We continue to pursue inroads in SBA, treasury, maritime lending, first and second mortgage lending and community banking. We are introducing products and services to meet our customers where they are and to enhance their overall experience with First Fed. We believe that focusing on these fundamentals of Community Banking will improve our results and our overall franchise value.”

    — Matthew P. Deines, President and CEO, First Northwest Bancorp

    2024 FINANCIAL RESULTS   3Q 24     2Q 24     3Q 23     2024 YTD     2023 YTD  
    OPERATING RESULTS (in millions)                                        
    Net (loss) income   $ (2.0 )   $ (2.2 )   $ 2.5     $ (3.8 )   $ 7.8  
    Pre-provision net interest income     14.0       14.2       15.0       42.2       47.2  
    Provision for credit losses     3.1       8.7       0.4       12.8       0.2  
    Noninterest expense     15.8       15.6       14.4       45.8       44.5  
    Total revenue, net of interest expense *     15.8       21.6       17.9       53.5       54.2  
    PER SHARE DATA                                        
    Basic and diluted (loss) earnings   $ (0.23 )   $ (0.25 )   $ 0.28     $ (0.43 )   $ 0.87  
    Book value     17.17       16.81       16.20       17.17       16.20  
    Tangible book value *     17.00       16.64       16.03       17.00       16.03  
    BALANCE SHEET (in millions)                                        
    Total assets   $ 2,255     $ 2,216     $ 2,154     $ 2,255     $ 2,154  
    Total loans     1,735       1,698       1,635       1,735       1,635  
    Total deposits     1,712       1,708       1,658       1,712       1,658  
    Total shareholders’ equity     161       159       156       161       156  
    ASSET QUALITY                                        
    Net charge-off ratio(1)     0.10 %     1.70 %     0.30 %     0.67 %     0.10 %
    Nonperforming assets to total assets     1.35       1.07       0.11       1.35       0.11  
    Allowance for credit losses on loans                                        
    to total loans     1.27       1.14       1.04       1.27       1.04  
    Nonaccrual loan coverage ratio     72       82       714       72       714  
    (1)  Performance ratios are annualized, where appropriate.
    *See reconciliation of Non-GAAP Financial Measures later in this release.
                                             
    2024 FINANCIAL RESULTS (Continued)   3Q 24     2Q 24     3Q 23     2024 YTD     2023 YTD  
    SELECTED RATIOS                                        
    Return on average assets(1)     -0.36 %     -0.40 %     0.46 %     -0.23 %     0.50 %
    Return on average equity(1)     -4.91       -5.47       6.17       -3.14       6.50  
    Return on average tangible common equity(1) *     -4.96       -5.53       6.23       -3.17       6.57  
    Net interest margin     2.70       2.76       2.97       2.74       3.22  
    Efficiency ratio     100.31       72.32       80.52       85.54       82.06  
    Bank common equity tier 1 (CETI) ratio     12.20       12.40       13.43       12.20       13.43  
    Bank total risk-based capital ratio     13.44       13.49       14.38       13.44       14.38  
    (1)  Performance ratios are annualized, where appropriate.
    *See reconciliation of Non-GAAP Financial Measures later in this release.
                                             
      2024 Significant Items as of September 30, 2024
    • Year-to-date net loss of $3.8 million was primarily due to a provision for credit losses of $12.8 million as the collectability of a small number of loan relationships continued to deteriorate and additional reserves were taken on purchased loan pools.
    • First Fed Bank (“First Fed” or the “Bank”) balance sheet restructuring contributed to an improved year-to-date yield on earning assets by 16-basis points over the prior year end to 5.44%.
      –  Sale-leaseback transaction completed in the second quarter, resulting in a $7.9 million gain on sale of premises and equipment.
      –  Sold $23.2 million of lower-yielding security investments which resulted in $2.1 million year-to-date loss on sale.
      –  Purchased $53.3 million of higher-yielding security investments year-to-date.
      –  Continued conversion of lower-yielding bank-owned life insurance (“BOLI”) with one conversion completed in the first quarter and an exchange in the third quarter. Two additional policy restructures expected to be completed by the end of the first quarter of 2025.
    • Net interest margin decreased over the prior year end from 3.13% to 2.74%, impacted by the increase in deposit and borrowing costs outpacing increased yields on loans and investments.
    • Loan mix shifted away from construction and commercial real estate into commercial business, auto, multi-family real estate, one-to-four family and home equity compared to the prior year end. The weighted-average rate on new loans year-to-date was 8.5%.
    • Borrowings increased $14.1 million, or 4.4%, to $335.0 million at September 30, 2024, compared to $320.9 million at December 31, 2023.
    • Repurchased 214,132 shares during the first quarter, which closed out the October 2020 Stock Repurchase Plan.
    • Repurchased 98,156 shares during the third quarter under the new share repurchase plan approved in April 2024. 
    • Year-to-date deposit growth of $34.7 million, or 2.0%, to $1.71 billion, with a $30.0 million shift from savings to money market accounts. Cost of total deposits increased over the prior year end from 1.66% to 2.49%.
    • Estimated insured deposits totaled $1.3 billion, or 77% of total deposits at September 30, 2024. Available liquidity to uninsured deposit coverage remained strong at 142% at September 30, 2024.
    • Classified loans increased to 2.71% of total loans at September 30, 2024, compared to 2.12% at December 31, 2023.
    • Nonperforming assets increased $11.7 million year-to-date mainly due to three commercial loan relationships included in commercial construction, commercial real estate and commercial business.
    • Completed a reduction-in-force impacting 9% of our workforce on July 24, 2024. This action, along with year-to-date headcount management through attrition, is expected to result in a reduction in current levels of compensation expense by approximately $820,000 per quarter starting in the fourth quarter of 2024.
       

    First Northwest Bancorp (Nasdaq: FNWB) (“First Northwest” or the “Company”) today reported a net loss of $2.0 million for the third quarter of 2024, compared to a net loss of $2.2 million for the second quarter of 2024 and net income of $2.5 million for the third quarter of 2023. Basic and diluted loss per share were $0.23 for the third quarter of 2024, compared to basic and diluted loss per share of $0.25 for the second quarter of 2024 and basic and diluted earnings per share of $0.28 for the third quarter of 2023. In the third quarter of 2024, the Company generated a return on average assets of -0.36%, a return on average equity of -4.91% and a return on average tangible common equity* of -4.96%. Loss before provision for income taxes was $3.2 million for the third quarter of 2024, compared to a loss before provision for income taxes of $2.8 million for the preceding quarter, a decrease of $417,000, or 15.1%, and decreased $6.3 million compared to income of $3.1 million for the third quarter of 2023.

    The Bank recorded reserves on individually analyzed loans totaling $1.9 million due to the uncertain future cash flows from specific loan relationships in the third quarter of 2024. An additional credit loss on loans of $1.8 million was attributable to an increase in the reserve on pooled commercial business loans, with a reserve loss rate of 3.4% applied to that segment of the loan portfolio at period end. We believe the reserve on individually analyzed loans does not represent a universal decline in the collectability of all loans in the portfolio. We continue to work on resolution plans for all troubled borrowers. The provision for credit losses on loans had a significant negative impact on net income and was the only reason for the net loss recorded for the third quarter of 2024.

    Steps taken to restructure the Bank’s balance sheet continue to have a positive impact. The fair value hedge on loans, tied to the compounded overnight index swap using the secured overnight financing rate index, established in the first quarter of 2024 added $946,000 to interest income year-to-date. The fair value hedge on loans reduces interest rate risk by reducing liability sensitivity while increasing interest income. We estimate that if rates remain unchanged, this hedge will add $1.3 million of annualized interest income in 2024. The estimated impact will be reduced if the Federal Reserve Board (“FRB”) implements additional rate cuts during the year. The Bank expects to maintain a positive carry on its derivative for up to 75-basis points of additional rate cuts.

    The balance sheet restructure plan also includes the conversion of BOLI policies in order to reinvest in higher yielding products. The first $6.1 million policy earning 2.58% was surrendered during the first quarter and reinvested into a policy earning 5.18%. In the third quarter of 2024, a $1.3 million policy earning 3.18% was exchanged and reinvested into a policy earning 5.73%. The remaining surrender and exchange transactions are expected to be completed by the end of the first quarter of 2025.

    Net Interest Income
    Total interest income decreased $405,000 to $28.2 million for the third quarter of 2024, compared to $28.6 million in the previous quarter, and increased $2.4 million compared to $25.8 million in the third quarter of 2023. Interest income decreased in the third quarter of 2024 primarily due to interest reversals for loans placed on nonaccrual totaling $619,000. The interest adjustments were partially offset by higher yields on performing loans combined with increased loan volume. Interest and fees on loans increased year-over-year as the loan portfolio grew as a result of draws on new and existing lines of credit, originations of commercial real estate, commercial business and home equity loans, and auto and manufactured home loan purchases. Loan yields increased over the prior year due to higher rates on new originations as well as the repricing of variable and adjustable-rate loans tied to the Prime Rate or other indices.

    Total interest expense decreased $190,000 to $14.2 million for the third quarter of 2024, compared to $14.4 million in the second quarter of 2024, and increased $3.3 million compared to $10.9 million in the third quarter of 2023. Interest expense for the three months ended September 30, 2024, was lower primarily due to lower rates on advances combined with decreased advance volumes. The decrease was partially offset by a 9-basis point increase in the cost of deposits to 2.56% for the quarter ended September 30, 2024, from 2.47% for the prior quarter as a result of customers continuing to shift deposit balances into higher earning products. The increase over the third quarter of 2023 was the result of a 71-basis point increase in the cost of deposits from 1.85% in the third quarter one year ago. A shift in the deposit mix from transaction and savings accounts to money market accounts and time deposits also added to the higher cost of deposits compared to the third quarter of 2023. Higher costs of brokered time deposits also contributed to additional deposit costs with a 57-basis point increase to 4.88% for the current quarter compared to 4.31% for the third quarter one year ago.

    Net interest income before provision for credit losses for the third quarter of 2024 decreased $215,000, or 1.5%, to $14.0 million, compared to $14.2 million for the preceding quarter, and decreased $930,000, or 6.2%, from the third quarter one year ago. The impact of the September FRB rate cut will be reflected beginning with fourth quarter 2024 interest income and expenses.

    The Company recorded a $3.1 million provision for credit losses on loans in the third quarter of 2024, primarily due to reserves taken individually analyzed loans and Current Expected Credit Loss model loss factor increases attributable to pooled commercial business and multi-family loans at quarter end. Credit loss provision increases were offset by decreases to the loss factors applied to consumer, commercial real estate and one-to-four family loans. Higher loss factors applied to unfunded commitments and a moderate increase in commitment balances also resulted in a provision for credit losses on unfunded commitments of $57,000 for the quarter. The total provision for credit loss recorded for the third quarter of 2024 was $3.1 million, compared to a credit loss provision of $8.7 million for the preceding quarter and a provision of $371,000 for the third quarter of 2023.

    The net interest margin decreased to 2.70% for the third quarter of 2024, from 2.76% for the prior quarter, and decreased 27-basis points from 2.97% for the third quarter of 2023. The decrease over the linked quarter is primarily due to the accrued interest reversed on three nonperforming commercial loans during the three months ended September 30, 2024, partially offset by an increase in interest income earned on a higher volume of loans. Investment securities also had decreased volume due to regular payments and lower yields due to variable-rate securities compared to the preceding quarter. The Company reported reduced rates and declining volume of borrowings during the quarter which lowered costs; however, these savings were partially offset by an increase in cost due to a higher volume of retail customer deposits. The decrease in net interest margin from the same quarter one year ago is due to higher funding costs for deposits and borrowed funds. Organic loan production comprised 73% of new loan commitments for the third quarter with the remaining 27% added through purchases of higher-yielding loans from established third-party relationships. The Bank’s fair value hedging agreements on securities and loans added $188,000 and $395,000, respectively, to interest income for the third quarter of 2024.

    The yield on average earning assets for the third quarter of 2024 decreased 11-basis points to 5.44% compared to 5.55% for the second quarter of 2024 and increased 30-basis points from 5.14% for the third quarter of 2023. The third quarter decrease is attributable to the accrued interest reversed on nonperforming loans, a lower yield and volume of investment securities and a decrease in the balance of Federal Home Loan Bank (“FHLB”) stock. The year-over-year increase in interest income was primarily due to higher average loan balances augmented by increases in yields on all earning assets, which were positively impacted by the higher rate environment.

    The cost of average interest-bearing liabilities decreased 5-basis points to 3.23% for the third quarter of 2024, compared to 3.28% for the second quarter of 2024, and increased 63-basis points from 2.60% for the third quarter of 2023. Total cost of funds decreased to 2.82% for the third quarter of 2024 from 2.87% in the prior quarter and increased from 2.23% for the third quarter of 2023. Current quarter decreases were due to lower average balances and costs on borrowings. The Bank continues to offer higher rate specials on money market and CD accounts to attract and retain retail customer deposits. The average brokered CD balance decreased $5.5 million from the linked quarter with a 6-basis point decrease in the average rate paid on brokered funds.

    The increase in cost of average interest-bearing liabilities over the same quarter last year was driven by higher rates paid on deposits and borrowings and higher average CD balances. The Company attracted and retained funding through the use of promotional products and a focus on digital account acquisition. The mix of retail deposit balances shifted from no or low-cost transaction and savings accounts towards higher cost term certificate and higher yield money market accounts. Retail CDs represented 29.3%, 26.8% and 27.6% of retail deposits at September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Average interest-bearing deposit balances increased $44.8 million, or 3.2%, to $1.45 billion for the third quarter of 2024 compared to the second quarter of 2024 and increased $75.0 million, or 5.4%, compared to $1.38 billion for the third quarter of 2023.

    Selected Yields   3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    Loan yield     5.51 %     5.62 %     5.51 %     5.38 %     5.31 %
    Investment securities yield     4.90       5.01       4.75       4.53       4.18  
    Cost of interest-bearing deposits     3.00       2.91       2.86       2.52       2.22  
    Cost of total deposits     2.56       2.47       2.43       2.12       1.85  
    Cost of borrowed funds     4.35       4.76       4.52       4.50       4.45  
    Net interest spread     2.21       2.27       2.28       2.40       2.54  
    Net interest margin     2.70       2.76       2.76       2.84       2.97  
                                             

    Noninterest Income
    Noninterest income decreased to $1.8 million for the third quarter of 2024 compared to $7.4 million for the second quarter of 2024. Nonrecurring second quarter transactions included a sale-leaseback transaction which resulted in a gain on sale of premises and equipment of $7.9 million, partially offset by a $2.1 million loss on the sale of lower-yielding available-for-sale securities. Income from the gain on sale of loans in the third quarter of 2024 includes $51,000 from SBA loans, compared to $116,000 in the prior quarter. Write-downs on sold loan servicing rights mark-to-market valuation totaled $161,000 for the third quarter of 2024 compared to $103,000 in the prior quarter. Other noninterest income includes a valuation gain on partnership investments of $279,000 compared to a loss of $56,000 in the preceding quarter.

    Noninterest income decreased 38.7% from $2.9 million in the same quarter one year ago. The third quarter of 2023 included $750,000 in credit enhancements reimbursed to the Company on Splash charge-offs recorded in other noninterest income. The quarter ended September 30, 2023, also included a $102,000 gain on sale of mortgage loans, compared to a $6,000 gain in the third quarter of 2024.

    Noninterest Income                                        
    $ in thousands   3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    Loan and deposit service fees   $ 1,059     $ 1,076     $ 1,102       1,068     $ 1,068  
    Sold loan servicing fees and servicing rights mark-to-market     10       74       219       276       98  
    Net gain on sale of loans     58       150       52       33       171  
    Net (loss) gain on sale of investment securities     —       (2,117 )     —       (5,397 )     —  
    Net gain on sale of premises and equipment     —       7,919       —       —       —  
    Increase in cash surrender value of bank-owned life insurance     315       293       243       260       252  
    Other income     337       (48 )     572       831       1,315  
    Total noninterest income   $ 1,779     $ 7,347     $ 2,188     $ (2,929 )   $ 2,904  
                                             

    Noninterest Expense
    Noninterest expense totaled $15.9 million for the third quarter of 2024, compared to $15.6 million for the preceding quarter and $14.4 million for the third quarter a year ago. Increases were primarily due to one-time severance payouts of $704,000 during the three months ended September 30, 2024, partially offset by a decrease in occupancy due to the one-time tax assessment on the sale-leaseback of $359,000 paid in the previous quarter. Other expense increased this quarter primarily due to $161,000 of additional credit related expenses.

    The increase in total noninterest expenses compared to the third quarter of 2023 is mainly due to current quarter one-time severance payouts of $704,000, additional payroll tax expense of $342,000 and additional medical benefit expense of $162,000. Payroll tax expense in the third quarter of 2023 included accretion of the employee retention credit (“ERC”) which reduced the expense by $293,000. In the fourth quarter of 2023, the Bank stopped the recognition of the ERC for the foreseeable future. Occupancy increased due to the additional rent of $416,000 from the previous quarter sale-leaseback transaction. Other increases compared to the third quarter of 2023 included $51,000 in stockholder communications, $103,000 of state taxes, $163,000 in FDIC insurance premiums, and $269,000 of additional credit related expenses. These increases were partially offset by lower legal fees of $204,000, consulting fees of $146,000 and advertising costs of $91,000. The Company continues to focus on controlling compensation expense and reducing advertising and other discretionary spending to improve earnings.

    Noninterest Expense                                        
    $ in thousands   3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    Compensation and benefits   $ 8,582     $ 8,588     $ 8,128     $ 7,397     $ 7,795  
    Data processing     2,085       2,008       1,944       2,107       1,945  
    Occupancy and equipment     1,553       1,799       1,240       1,262       1,173  
    Supplies, postage, and telephone     360       317       293       351       292  
    Regulatory assessments and state taxes     548       457       513       376       446  
    Advertising     409       377       309       235       501  
    Professional fees     698       684       910       1,119       929  
    FDIC insurance premium     533       473       386       418       369  
    Other expense     1,080       906       580       3,725       926  
    Total noninterest expense   $ 15,848     $ 15,609     $ 14,303     $ 16,990     $ 14,376  
                                             
    Efficiency ratio     100.31 %     72.32 %     88.75 %     150.81 %     80.52 %
                                             

    Investment Securities
    Investment securities increased $4.2 million, or 1.4%, to $310.9 million at September 30, 2024, compared to $306.7 million three months earlier, and increased $1.5 million compared to $309.3 million at September 30, 2023. The market value of the portfolio increased $8.1 million during the third quarter of 2024 primarily due to the market rally in the second half the third quarter which drove the yield curve lower. At September 30, 2024, municipal bonds totaled $81.4 million and comprised the largest portion of the investment portfolio at 26.2%. Agency issued mortgage-backed securities (“MBS agency”) were the second largest segment, totaling $78.5 million, or 25.3%, of the portfolio at quarter end. Included in MBS non-agency were $29.6 million of commercial mortgage-backed securities (“CMBS”), of which 89.8% were in “A” tranches and the remaining 10.2% were in “B” tranches. Our largest exposure in the CMBS portfolio at September 30, 2024, was to long-term care facilities, which comprised 65.0%, or $19.2 million, of our private label CMBS securities. All of the CMBS bonds had credit enhancements ranging from 28.8% to 71.8%, with a weighted-average credit enhancement of 55.3%, that further reduced the risk of loss on these investments.

    The estimated average life of the securities portfolio was approximately 7.4 years at September 30, 2024, 7.8 years at the prior quarter end and 7.7 years for the third quarter of 2023. The effective duration of the portfolio was approximately 3.9 years at September 30, 2024, compared to 4.3 years in the prior quarter and 4.9 years at the end of the third quarter of 2023. Our recent investment purchases have primarily been floating rate securities to take advantage of higher short-term rates above those offered on cash and to reduce our liability sensitivity.

    Investment Securities Available for Sale, at Fair Value                                        
    $ in thousands   3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    Municipal bonds   $ 81,363     $ 78,825     $ 87,004     $ 87,761     $ 93,995  
    U.S. Treasury notes     —       —       —       —       2,377  
    International agency issued bonds (Agency bonds)     —       —       —       —       1,703  
    U.S. government agency issued asset-backed securities (ABS agency)     13,296       13,982       14,822       11,782       —  
    Corporate issued asset-backed securities (ABS corporate)     16,391       16,483       13,929       5,286       —  
    Corporate issued debt securities (Corporate debt):                                        
    Senior positions     10,241       9,066       13,617       9,270       16,975  
    Subordinated bank notes     43,817       43,826       39,414       42,184       37,360  
    U.S. Small Business Administration securities (SBA)     9,317       9,772       7,911       —       —  
    Mortgage-backed securities:                                        
    U.S. government agency issued mortgage-backed securities (MBS agency)     78,549       77,301       83,271       63,247       66,946  
    Non-agency issued mortgage-backed securities (MBS non-agency)     57,886       57,459       65,987       76,093       89,968  
    Total securities available for sale, at fair value   $ 310,860     $ 306,714     $ 325,955     $ 295,623     $ 309,324  
                                             

    Loans and Unfunded Loan Commitments
    Net loans, excluding loans held for sale, increased $36.7 million, or 2.2%, to $1.71 billion at September 30, 2024, from $1.68 billion at June 30, 2024, and increased $96.4 million, or 6.0%, from $1.62 billion one year ago.

    Commercial business loans increased $38.2 million, primarily attributable to a $29.0 million increase in our Northpointe Bank Mortgage Purchase Program participation, organic originations totaling $7.9 million and draws on existing lines of credit of $5.7 million which were partially offset by payments. One-to-four family loans increased $5.9 million during the third quarter of 2024 as a result of $14.2 million in residential construction loans that converted to permanent amortizing loans, partially offset by payoffs and scheduled payments. Home equity loans increased $4.3 million over the previous quarter due to organic home equity loan production of $5.5 million and draws on new and existing commitments of $4.6 million, partially offset by payoffs and scheduled payments. Multi-family loans increased $3.7 million during the current quarter. The increase was primarily the result of $9.2 million of construction loans converting into permanent amortizing loans, partially offset by payoffs and scheduled payments. Commercial real estate loans increased $497,000 during the third quarter of 2024 compared to the previous quarter as originations of $8.6 million were offset by payoffs and scheduled payments.

    Construction loans decreased $11.6 million during the quarter, with $23.4 million converting into fully amortizing loans, partially offset by draws on new and existing loans. New single-family residence construction loan commitments totaled $4.1 million in the third quarter, compared to $2.7 million in the preceding quarter. Auto and other consumer loans decreased $4.4 million during the third quarter of 2024 as payoffs and scheduled payments were higher than $5.8 million of new auto loan purchases, a $4.3 million manufactured home loan pool and individual manufactured home loan purchases totaling $1.2 million. 

    The Company originated $3.4 million in residential mortgages during the third quarter of 2023 and sold $3.9 million, with an average gross margin on sale of mortgage loans of approximately 2.06%. This production compares to residential mortgage originations of $5.0 million in the preceding quarter with sales of $4.9 million, and an average gross margin of 2.05%. Single-family home inventory remained historically low and higher market rates on mortgage loans continued to limit saleable mortgage loan production through much of the third quarter.

    Loans by Collateral and Unfunded Commitments                                        
    $ in thousands   3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    One-to-four family construction   $ 51,607     $ 49,440     $ 70,100     $ 60,211     $ 72,991  
    All other construction and land     45,166       58,346       55,286       69,484       71,092  
    One-to-four family first mortgage     469,053       434,840       436,543       426,159       409,207  
    One-to-four family junior liens     14,701       13,706       12,608       12,250       12,859  
    One-to-four family revolving open-end     48,459       44,803       45,536       42,479       38,413  
    Commercial real estate, owner occupied:                                        
    Health care     29,407       29,678       29,946       22,523       22,677  
    Office     17,901       19,215       17,951       18,468       18,599  
    Warehouse     11,645       14,613       14,683       14,758       14,890  
    Other     64,535       56,292       55,063       61,304       57,414  
    Commercial real estate, non-owner occupied:                                        
    Office     49,770       50,158       53,099       53,548       53,879  
    Retail     49,717       50,101       50,478       51,384       51,466  
    Hospitality     62,282       62,628       66,982       67,332       61,339  
    Other     82,573       84,428       93,040       94,822       96,083  
    Multi-family residential     354,118       350,382       339,907       333,428       325,338  
    Commercial business loans     86,904       79,055       90,781       76,920       75,068  
    Commercial agriculture and fishing loans     15,369       14,411       10,200       5,422       4,437  
    State and political subdivision obligations     404       405       405       405       439  
    Consumer automobile loans     144,036       151,121       139,524       132,877       134,695  
    Consumer loans secured by other assets     132,749       129,293       122,895       108,542       104,999  
    Consumer loans unsecured     4,411       5,209       6,415       7,712       9,093  
    Total loans   $ 1,734,807     $ 1,698,124     $ 1,711,442     $ 1,660,028     $ 1,634,978  
                                             
    Unfunded commitments under lines of credit or existing loans   $ 166,446     $ 155,005     $ 148,736     $ 149,631     $ 154,722  
                                             

    Deposits
    Total deposits increased $3.4 million to $1.71 billion at September 30, 2024, compared to $1.71 billion at June 30, 2024, and increased $53.9 million, or 3.3%, compared to $1.66 billion one year ago. During the third quarter of 2024, total retail customer deposit balances increased $23.4 million and brokered deposit balances decreased $20.0 million. Compared to the preceding quarter, there were balance increases of $18.1 million in consumer time deposits, $17.7 million in business money market accounts, $7.9 million in consumer demand accounts and $7.7 million in business time deposits. These increases were partially offset by decreases in business demand accounts of $26.4 million, brokered time deposits of $20.0 million, consumer money market accounts of $7.4 million, business savings accounts of $6.5 million, consumer savings accounts of $5.3 million and public fund time deposits of $941,000, during the third quarter of 2024. Increases in time deposits and money market accounts were driven by customer behavior as they sought out higher rates. Overall, the current rate environment continues to contribute to greater competition for deposits with ongoing deposit rate specials offered to attract new funds.

    The Company estimates that $401.0 million, or 23%, of total deposit balances were uninsured at September 30, 2024. Approximately $265.7 million, or 16%, of total deposits were uninsured business and consumer deposits with the remaining $135.3 million, or 8%, consisting of uninsured public funds at September 30, 2024. Uninsured public fund balances were fully collateralized. The Bank holds an FHLB standby letter of credit as part of our participation in the Washington Public Deposit Protection Commission program which covered $115.5 million of related deposit balances while the remaining $19.8 million of uninsured tribal accounts was fully covered through pledged securities at September 30, 2024.

    As of September 30, 2024, consumer deposits made up 58% of total deposits with an average balance of $24,000 per account, business deposits made up 22% of total deposits with an average balance of $51,000 per account, public fund deposits made up 8% of total deposits with an average balance of $1.6 million per account and the remaining 12% of account balances are brokered time deposits. We have maintained the majority of our public fund relationships for over 10 years. Approximately 70% of our customer base is located in rural areas, with 18% in urban areas and the remaining 12% are brokered deposits as of September 30, 2024.

    Deposits                                        
    $ in thousands   3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    Noninterest-bearing demand deposits   $ 252,999     $ 276,543     $ 252,083     $ 269,800     $ 280,475  
    Interest-bearing demand deposits     167,202       162,201       169,418       182,361       179,029  
    Money market accounts     433,307       423,047       362,205       372,706       374,269  
    Savings accounts     212,763       224,631       242,148       253,182       260,279  
    Certificates of deposit, retail     441,665       398,161       443,412       410,136       379,484  
    Total retail deposits     1,507,936       1,484,583       1,469,266       1,488,185       1,473,536  
    Certificates of deposit, brokered     203,705       223,705       207,626       169,577       179,586  
    Total deposits   $ 1,711,641     $ 1,708,288     $ 1,676,892     $ 1,657,762     $ 1,653,122  
                                             
    Public fund and tribal deposits included in total deposits   $ 139,729     $ 138,439     $ 132,652     $ 128,627     $ 130,974  
    Total loans to total deposits     101 %     99 %     102 %     100 %     99 %
                                             
    Deposit Mix   3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    Noninterest-bearing demand deposits     14.8 %     16.2 %     15.0 %     16.3 %     17.0 %
    Interest-bearing demand deposits     9.8       9.5       10.1       11.0       10.8  
    Money market accounts     25.3       24.8       21.6       22.5       22.6  
    Savings accounts     12.4       13.1       14.4       15.3       15.7  
    Certificates of deposit, retail     25.8       23.3       26.5       24.7       23.0  
    Certificates of deposit, brokered     11.9       13.1       12.4       10.2       10.9  
                                             
    Cost of Deposits for the Quarter Ended   3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    Interest-bearing demand deposits     0.45 %     0.47 %     0.45 %     0.45 %     0.46 %
    Money market accounts     2.65       2.40       2.08       1.48       1.22  
    Savings accounts     1.64       1.62       1.63       1.54       1.42  
    Certificates of deposit, retail     4.16       4.10       4.13       3.92       3.52  
    Certificates of deposit, brokered     4.88       4.94       4.94       4.72       4.31  
    Cost of total deposits     2.56       2.47       2.43       2.12       1.85  
                                             

    Asset Quality
    The allowance for credit losses on loans (“ACLL”) increased $2.6 million from $19.3 million at June 30, 2024, to $22.0 million at September 30, 2024. The ACLL as a percentage of total loans was 1.27% at September 30, 2024, increasing from 1.14% at June 30, 2024, and increasing from 1.04% one year earlier. The current quarter increase can be attributed to $1.9 million of additional reserves taken on individually evaluated commercial business loans due uncertainty in the collectability of these loans. The pooled loan reserve increased $1.2 million due to higher loss factors applied to commercial business and multi-family loans, partially offset by lower loss factors applied to one-to-four family, commercial real estate, home equity, auto and other consumer loans. Loss factors were revised based on the results of an annual loss driver analysis, in conjunction with other relevant factors, to update each segment’s sensitivity to qualitative factors used in the calculation of the pooled reserve at September 30, 2024.

    Nonperforming loans totaled $30.4 million at September 30, 2024, an increase of $6.8 million from June 30, 2024, primarily attributable to a $5.6 million delinquent commercial real estate relationship and two commercial business loans with an aggregate total of $1.7 million placed on nonaccrual due to credit concerns. The percentage of the allowance for credit losses on loans to nonperforming loans decreased to 72% at September 30, 2024, from 82% at June 30, 2024, and from 714% at September 30, 2023. This ratio continues to decline as higher balances of real estate loans are included in nonperforming assets with no significant corresponding increase to the ACLL as these secured loans are considered adequately reserved for based on information currently available.

    Classified loans increased $7.2 million to $46.9 million at September 30, 2024, due to the downgrade of one $6.4 million commercial real estate loan and ten commercial business loans totaling $5.6 million during the third quarter, partially offset by loan payoffs totaling $5.0 million. An $11.2 million construction loan relationship, which became a classified loan in the fourth quarter of 2022; an $8.1 million commercial construction loan relationship, which became classified in the previous quarter; and a $6.2 million commercial loan relationship, which became classified in the fourth quarter of 2023, account for 55% of the classified loan balance at September 30, 2024. The Bank has exercised legal remedies, including the appointment of a third-party receiver and foreclosure actions, to liquidate the underlying collateral to satisfy the real estate loans in two of these three collateral dependent relationships. The Bank is also closely monitoring certain equity program loans, with 14 loans totaling $5.9 million included in classified loans at September 30, 2024, and an additional nine loans totaling $3.1 million included in the special mention risk grading category.

    $ in thousands   3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    Allowance for credit losses on loans to total loans     1.27 %     1.14 %     1.05 %     1.05 %     1.04 %
    Allowance for credit losses on loans to nonaccrual loans     72       82       92       94       714  
    Nonaccrual loans to total loans     1.75       1.39       1.14       1.12       0.15  
    Net charge-off ratio (annualized)     0.10       1.70       0.19       0.14       0.30  
                                             
    Total nonaccrual loans   $ 30,376     $ 23,631     $ 19,481     $ 18,644     $ 2,374  
    Reserve for unfunded commitments   $ 704     $ 647     $ 548     $ 817     $ 828  
                                             

    Capital
    Total shareholders’ equity increased to $160.8 million at September 30, 2024, compared to $158.9 million three months earlier, due to an increase in the after-tax fair market values of the available-for-sale investment securities portfolio of $6.3 million, partially offset by a net loss of $2.0 million, a decrease in the after-tax fair market values of derivatives of $1.2 million, share repurchases totaling $1.0 million and dividends declared of $659,000.

    Book value per common share was $17.17 at September 30, 2024, compared to $16.81 at June 30, 2024, and $16.20 at September 30, 2023. Tangible book value per common share* was $17.00 at September 30, 2024, compared to $16.64 at June 30, 2024, and $16.03 at September 30, 2023.

    Capital levels for both the Company and its operating bank, First Fed, remain in excess of applicable regulatory requirements and the Bank was categorized as “well-capitalized” at September 30, 2024. Common Equity Tier 1 and Total Risk-Based Capital Ratios at September 30, 2024, were 12.2% and 13.4%, respectively.

        3Q 24     2Q 24     1Q 24     4Q 23     3Q 23  
    Equity to total assets     7.13 %     7.17 %     7.17 %     7.42 %     7.25 %
    Tangible common equity to tangible assets *     7.06       7.10       7.10       7.35       7.17  
    Capital ratios (First Fed Bank):                                        
    Tier 1 leverage     9.39       9.38       9.74       9.90       10.12  
    Common equity Tier 1 capital     12.20       12.40       12.56       13.12       13.43  
    Tier 1 risk-based     12.20       12.40       12.56       13.12       13.43  
    Total risk-based     13.44       13.49       13.57       14.11       14.38  
                                             

    Share Repurchase Program and Cash Dividend
    First Northwest continued to return capital to our shareholders through cash dividends and share repurchases during the third quarter of 2024. We repurchased 98,156 shares of common stock under the Company’s April 2024 Stock Repurchase Plan (“Repurchase Plan”) at an average price of $10.19 per share for a total of $1.0 million during the quarter ended September 30, 2024, leaving 846,123 shares remaining under the plan. In addition, the Company paid cash dividends totaling $652,000 in the third quarter of 2024.

    ____________________
    *     See reconciliation of Non-GAAP Financial Measures later in this release.

    Awards/Recognition
    The Company received several accolades as a leader in the community in the last year.

    In September 2024, the First Fed team was recognized in the 2024 Best of Olympic Peninsula surveys, winning Best Bank and Best Lender in Clallam County; Best Bank and Best Financial Advisor in the West End; and Best Lender in Jefferson County. First Fed was also a finalist for Best Bank, Best Customer Service, Best Employer and Best Financial Advisor in Jefferson County; Best Customer Service, Best Employer and Best Financial Advisor in Clallam County; and Best Customer Service and Best Employer in the West End.
    In May 2024, First Fed, along with the First Fed Community Foundation, were honored to be ranked second on the Puget Sound Business Journal Midsize Corporate Philanthropists list.
    In October 2023, the First Fed team was honored to bring home the Gold for Best Bank in the Best of the Northwest survey hosted by Bellingham Alive for the second year in a row.
    In September 2023, the First Fed team was recognized in the 2023 Best of Olympic Peninsula surveys as a finalist for Best Employer in Kitsap County and Best Bank and Best Financial Institution in Bainbridge.
       

    About the Company
    First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 16 locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

    Forward-Looking Statements
    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 forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance, perceived opportunities in the market, potential future credit experience, including our ability to collect, the outcome of litigation and statements regarding our mission and vision, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as “believes,” “expects,” “anticipates,” “estimates,” or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; the risk of inaccuracies in the reporting of our financial condition as a result of the material weakness in our internal controls; and other factors described in the Company’s latest Annual Report on Form 10-K under the section entitled “Risk Factors,” and other filings with the Securities and Exchange Commission (“SEC”),which are available on our website at www.ourfirstfed.com and on the SEC’s website at www.sec.gov.

    Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company’s operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2024 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 operations and stock price performance.

    For More Information Contact:
    Matthew P. Deines, President and Chief Executive Officer
    Geri Bullard, EVP, Chief Financial Officer and Chief Operating Officer
    IRGroup@ourfirstfed.com
    360-457-0461

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, except share data) (Unaudited)

        September 30, 2024     June 30, 2024     September 30, 2023     Three Month Change     One Year Change  
    ASSETS                                        
    Cash and due from banks   $ 17,953     $ 19,184     $ 20,609       -6.4 %     -12.9 %
    Interest-earning deposits in banks     64,769       63,995       63,277       1.2       2.4  
    Investment securities available for sale, at fair value     310,860       306,714       309,324       1.4       0.5  
    Loans held for sale     378       1,086       689       -65.2       -45.1  
    Loans receivable (net of allowance for credit losses on loans $21,970, $19,343, and $16,945)     1,714,416       1,677,764       1,618,033       2.2       6.0  
    Federal Home Loan Bank (FHLB) stock, at cost     14,435       13,086       12,621       10.3       14.4  
    Accrued interest receivable     8,939       9,466       8,093       -5.6       10.5  
    Premises and equipment, net     10,436       10,714       17,954       -2.6       -41.9  
    Servicing rights on sold loans, at fair value     3,584       3,740       3,729       -4.2       -3.9  
    Bank-owned life insurance, net     41,429       41,113       40,318       0.8       2.8  
    Equity and partnership investments     14,912       15,085       14,623       -1.1       2.0  
    Goodwill and other intangible assets, net     1,083       1,084       1,087       -0.1       -0.4  
    Deferred tax asset, net     10,802       12,216       16,611       -11.6       -35.0  
    Prepaid expenses and other assets     41,490       40,715       26,577       1.9       56.1  
    Total assets   $ 2,255,486     $ 2,215,962     $ 2,153,545       1.8 %     4.7 %
                                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY                                        
    Deposits   $ 1,711,641     $ 1,708,288     $ 1,657,762       0.2 %     3.3 %
    Borrowings     334,994       302,575       300,416       10.7       11.5  
    Accrued interest payable     2,153       3,143       2,276       -31.5       -5.4  
    Accrued expenses and other liabilities     43,424       41,771       34,651       4.0       25.3  
    Advances from borrowers for taxes and insurance     2,485       1,304       2,375       90.6       4.6  
    Total liabilities     2,094,697       2,057,081       1,997,480       1.8       4.9  
                                             
    Shareholders’ Equity                                        
    Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding     —       —       —       n/a       n/a  
    Common stock, $0.01 par value, authorized 75,000,000 shares; issued and outstanding 9,365,979 at September 30, 2024; issued and outstanding 9,453,247 at June 30, 2024; and issued and outstanding 9,630,735 at September 30, 2023     94       94       96       0.0       -2.1  
    Additional paid-in capital     93,218       93,985       95,658       -0.8       -2.6  
    Retained earnings     100,660       103,322       113,579       -2.6       -11.4  
    Accumulated other comprehensive loss, net of tax     (26,424 )     (31,597 )     (45,850 )     16.4       42.4  
    Unearned employee stock ownership plan (ESOP) shares     (6,759 )     (6,923 )     (7,418 )     2.4       8.9  
    Total shareholders’ equity     160,789       158,881       156,065       1.2       3.0  
    Total liabilities and shareholders’ equity   $ 2,255,486     $ 2,215,962     $ 2,153,545       1.8 %     4.7 %
                                             

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except per share data) (Unaudited)

        Quarter Ended                  
        September 30, 2024     June 30, 2024     September 30, 2023     Three Month Change     One Year Change  
    INTEREST INCOME                                        
    Interest and fees on loans receivable   $ 23,536     $ 23,733     $ 21,728       -0.8 %     8.3 %
    Interest on investment securities     3,786       3,949       3,368       -4.1       12.4  
    Interest on deposits in banks     582       571       524       1.9       11.1  
    FHLB dividends     302       358       214       -15.6       41.1  
    Total interest income     28,206       28,611       25,834       -1.4       9.2  
    INTEREST EXPENSE                                        
    Deposits     10,960       10,180       7,699       7.7       42.4  
    Borrowings     3,226       4,196       3,185       -23.1       1.3  
    Total interest expense     14,186       14,376       10,884       -1.3       30.3  
    Net interest income     14,020       14,235       14,950       -1.5       -6.2  
    PROVISION FOR CREDIT LOSSES                                        
    Provision for credit losses on loans     3,077       8,640       880       -64.4       249.7  
    Provision for (recapture of) credit losses on unfunded commitments     57       99       (509 )     -42.4       111.2  
    Provision for credit losses     3,134       8,739       371       -64.1       744.7  
    Net interest income after provision for credit losses     10,886       5,496       14,579       98.1       -25.3  
    NONINTEREST INCOME                                        
    Loan and deposit service fees     1,059       1,076       1,068       -1.6       -0.8  
    Sold loan servicing fees and servicing rights mark-to-market     10       74       98       -86.5       -89.8  
    Net gain on sale of loans     58       150       171       -61.3       -66.1  
    Net loss on sale of investment securities     —       (2,117 )     —       100.0       n/a  
    Net gain on sale of premises and equipment     —       7,919       —       -100.0       n/a  
    Increase in cash surrender value of bank-owned life insurance     315       293       252       7.5       25.0  
    Other income     337       (48 )     1,315       802.1       -74.4  
    Total noninterest income     1,779       7,347       2,904       -75.8       -38.7  
    NONINTEREST EXPENSE                                        
    Compensation and benefits     8,582       8,588       7,795       -0.1       10.1  
    Data processing     2,085       2,008       1,945       3.8       7.2  
    Occupancy and equipment     1,553       1,799       1,173       -13.7       32.4  
    Supplies, postage, and telephone     360       317       292       13.6       23.3  
    Regulatory assessments and state taxes     548       457       446       19.9       22.9  
    Advertising     409       377       501       8.5       -18.4  
    Professional fees     698       684       929       2.0       -24.9  
    FDIC insurance premium     533       473       369       12.7       44.4  
    Other expense     1,080       906       926       19.2       16.6  
    Total noninterest expense     15,848       15,609       14,376       1.5       10.2  
    (Loss) income before (benefit) provision for income taxes     (3,183 )     (2,766 )     3,107       -15.1       -202.4  
    (Benefit) provision for income taxes     (1,203 )     (547 )     603       -119.9       -299.5  
    Net (loss) income   $ (1,980 )   $ (2,219 )   $ 2,504       10.8 %     -179.1 %
                                             
    Basic and diluted (loss) earnings per common share   $ (0.23 )   $ (0.25 )   $ 0.28       8.0 %     -182.1 %
                                             

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except per share data) (Unaudited)

        Nine Months Ended September 30,     Percent  
        2024     2023     Change  
    INTEREST INCOME                        
    Interest and fees on loans receivable   $ 70,036     $ 62,531       12.0 %
    Interest on investment securities     11,367       9,886       15.0  
    Interest on deposits in banks     1,798       1,545       16.4  
    FHLB dividends     942       628       50.0  
    Total interest income     84,143       74,590       12.8  
    INTEREST EXPENSE                        
    Deposits     31,252       18,261       71.1  
    Borrowings     10,708       9,092       17.8  
    Total interest expense     41,960       27,353       53.4  
    Net interest income     42,183       47,237       -10.7  
    PROVISION FOR CREDIT LOSSES                        
    Provision for credit losses on loans     12,956       1,195       984.2  
    (Recapture of) provision for credit losses on unfunded commitments     (113 )     (1,024 )     89.0  
    Provision for credit losses     12,843       171       7,410.5  
    Net interest income after provision for credit losses     29,340       47,066       -37.7  
    NONINTEREST INCOME                        
    Loan and deposit service fees     3,237       3,273       -1.1  
    Sold loan servicing fees and servicing rights mark-to-market     303       400       -24.3  
    Net gain on sale of loans     260       405       -35.8  
    Net loss on sale of investment securities     (2,117 )     —       100.0  
    Net gain on sale of premises and equipment     7,919       —       100.0  
    Increase in cash surrender value of bank-owned life insurance     851       668       27.4  
    Other income     861       2,203       -60.9  
    Total noninterest income     11,314       6,949       62.8  
    NONINTEREST EXPENSE                        
    Compensation and benefits     25,298       23,812       6.2  
    Data processing     6,037       6,063       -0.4  
    Occupancy and equipment     4,592       3,596       27.7  
    Supplies, postage, and telephone     970       1,082       -10.4  
    Regulatory assessments and state taxes     1,518       1,259       20.6  
    Advertising     1,095       2,471       -55.7  
    Professional fees     2,292       2,619       -12.5  
    FDIC insurance premium     1,392       939       48.2  
    Other     2,566       2,623       -2.2  
    Total noninterest expense     45,760       44,464       2.9  
    (Loss) income before (benefit) provision for income taxes     (5,106 )     9,551       -153.5  
    (Benefit) provision for income taxes     (1,303 )     1,903       -168.5  
    Net (loss) income     (3,803 )     7,648       -149.7  
    Net loss attributable to noncontrolling interest in Quin Ventures, Inc.     —       160       -100.0  
    Net (loss) income attributable to parent   $ (3,803 )   $ 7,808       -148.7 %
                             
    Basic and diluted (loss) earnings per common share   $ (0.43 )   $ 0.87       -149.4 %
                             

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    Selected Financial Ratios and Other Data
    (Dollars in thousands, except per share data) (Unaudited)

        As of or For the Quarter Ended  
        September 30, 2024     June 30, 2024     March 31, 2024     December 31, 2023     September 30, 2023  
    Performance ratios:(1)                                        
    Return on average assets     -0.36 %     -0.40 %     0.07 %     -1.03 %     0.46 %
    Return on average equity     -4.91       -5.47       0.98       -14.05       6.17  
    Average interest rate spread     2.21       2.27       2.28       2.40       2.54  
    Net interest margin(2)     2.70       2.76       2.76       2.84       2.97  
    Efficiency ratio(3)     100.3       72.3       88.8       150.8       80.5  
    Equity to total assets     7.13       7.17       7.17       7.42       7.25  
    Average interest-earning assets to average interest-bearing liabilities     118.0       117.6       118.3       118.2       120.0  
    Book value per common share   $ 17.17     $ 16.81     $ 17.00     $ 16.99     $ 16.20  
                                             
    Tangible performance ratios:(1)                                        
    Tangible common equity to tangible assets(4)     7.06 %     7.10 %     7.10 %     7.35 %     7.17 %
    Return on average tangible common equity(4)     -4.96       -5.53       0.99       -14.20       6.23  
    Tangible book value per common share(4)   $ 17.00     $ 16.64     $ 16.83     $ 16.83     $ 16.03  
                                             
    Asset quality ratios:                                        
    Nonperforming assets to total assets at end of period(5)     1.35 %     1.07 %     0.87 %     0.85 %     0.11 %
    Nonaccrual loans to total loans(6)     1.75       1.39       1.14       1.12       0.15  
    Allowance for credit losses on loans to nonaccrual loans(6)     72.33       81.85       92.18       93.92       713.77  
    Allowance for credit losses on loans to total loans     1.27       1.14       1.05       1.05       1.04  
    Annualized net charge-offs to average outstanding loans     0.10       1.70       0.19       0.14       0.30  
                                             
    Capital ratios (First Fed Bank):                                        
    Tier 1 leverage     9.4 %     9.4 %     9.7 %     9.9 %     10.1 %
    Common equity Tier 1 capital     12.2       12.4       12.6       13.1       13.4  
    Tier 1 risk-based     12.2       12.4       12.6       13.1       13.4  
    Total risk-based     13.4       13.5       13.6       14.1       14.4  
                                             
    Other Information:                                        
    Average total assets   $ 2,209,333     $ 2,219,370     $ 2,166,187     $ 2,127,655     $ 2,139,734  
    Average total loans     1,718,402       1,717,830       1,678,656       1,645,418       1,641,206  
    Average interest-earning assets     2,061,970       2,072,280       2,027,821       1,980,226       1,994,251  
    Average noninterest-bearing deposits     252,911       251,442       249,283       259,845       276,294  
    Average interest-bearing deposits     1,452,817       1,408,018       1,422,116       1,379,059       1,377,734  
    Average interest-bearing liabilities     1,747,649       1,762,858       1,714,474       1,675,044       1,661,996  
    Average equity     160,479       163,079       161,867       155,971       160,994  
    Average common shares — basic     8,756,765       8,783,086       8,876,236       8,928,620       8,906,526  
    Average common shares — diluted     8,756,765       8,783,086       8,907,184       8,968,828       8,934,882  
    Tangible assets(4)     2,253,914       2,214,361       2,238,446       2,200,230       2,151,849  
    Tangible common equity(4)     159,217       157,280       158,932       161,773       154,369  
    (1) Performance ratios are annualized, where appropriate.
    (2) Net interest income divided by average interest-earning assets.
    (3) Total noninterest expense as a percentage of net interest income and total other noninterest income.
    (4) See reconciliation of Non-GAAP Financial Measures later in this release.
    (5) Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.
    (6) Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
       

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    Selected Financial Ratios and Other Data
    (Dollars in thousands, except per share data) (Unaudited)

        As of or For the Nine Months Ended September 30,  
        2024     2023  
    Performance ratios:(1)                
    Return on average assets     -0.23 %     0.50 %
    Return on average equity     -3.14       6.50  
    Average interest rate spread     2.25       2.83  
    Net interest margin(2)     2.74       3.22  
    Efficiency ratio(3)     85.54       82.06  
    Equity to total assets     7.13       7.25  
    Average interest-earning assets to average interest-bearing liabilities     117.9       121.0  
    Book value per common share   $ 17.17     $ 16.20  
                     
    Tangible performance ratios:(1)                
    Tangible common equity to tangible assets(4)     7.06 %     7.17 %
    Return on average tangible common equity(4)     -3.17       6.57  
    Tangible book value per common share(4)   $ 17.00     $ 16.03  
                     
    Asset quality ratios:                
    Nonperforming assets to total assets at end of period(5)     1.35 %     0.11 %
    Nonaccrual loans to total loans(6)     1.75       0.15  
    Allowance for credit losses on loans to nonaccrual loans(6)     72.33       713.77  
    Allowance for credit losses on loans to total loans     1.27       1.04  
    Annualized net charge-offs to average outstanding loans     0.67       0.10  
                     
    Capital ratios (First Fed Bank):                
    Tier 1 leverage     9.4 %     10.1 %
    Common equity Tier 1 capital     12.2       13.4  
    Tier 1 risk-based     12.2       13.4  
    Total risk-based     13.4       14.4  
                     
    Other Information:                
    Average total assets   $ 2,198,337     $ 2,102,980  
    Average total loans     1,705,088       1,698,394  
    Average interest-earning assets     2,054,052       1,959,946  
    Average noninterest-bearing deposits     251,218       284,282  
    Average interest-bearing deposits     1,427,743       1,333,696  
    Average interest-bearing liabilities     1,741,683       1,619,763  
    Average equity     161,803       160,573  
    Average common shares — basic     8,805,124       8,910,391  
    Average common shares — diluted     8,805,124       8,930,404  
    Tangible assets(4)     2,253,914       2,151,849  
    Tangible common equity(4)     159,217       154,369  
    (1) Performance ratios are annualized, where appropriate.
    (2) Net interest income divided by average interest-earning assets.
    (3) Total noninterest expense as a percentage of net interest income and total other noninterest income.
    (4) See reconciliation of Non-GAAP Financial Measures later in this release.
    (5) Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.
    (6) Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
       

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)

        September 30, 2024     June 30, 2024     September 30, 2023     Three Month Change     One Year Change  
        (In thousands)  
    Real Estate:                                        
    One-to-four family   $ 395,792     $ 389,934     $ 369,950     $ 5,858     $ 25,842  
    Multi-family     353,813       350,076       325,496       3,737       28,317  
    Commercial real estate     376,008       375,511       381,508       497       (5,500 )
    Construction and land     95,709       107,273       143,434       (11,564 )     (47,725 )
    Total real estate loans     1,221,322       1,222,794       1,220,388       (1,472 )     934  
    Consumer:                                        
    Home equity     76,960       72,613       64,424       4,347       12,536  
    Auto and other consumer     281,198       285,623       248,786       (4,425 )     32,412  
    Total consumer loans     358,158       358,236       313,210       (78 )     44,948  
    Commercial business     155,327       117,094       101,380       38,233       53,947  
    Total loans receivable     1,734,807       1,698,124       1,634,978       36,683       99,829  
    Less:                                        
    Derivative basis adjustment     (1,579 )     1,017       —       (2,596 )     (1,579 )
    Allowance for credit losses on loans     21,970       19,343       16,945       2,627       5,025  
    Total loans receivable, net   $ 1,714,416     $ 1,677,764     $ 1,618,033     $ 36,652     $ 96,383  
                                             

    Selected loan detail:

        September 30, 2024     June 30, 2024     September 30, 2023     Three Month Change     One Year Change  
        (In thousands)  
    Construction and land loans breakout                                        
    1-4 Family construction   $ 43,125     $ 56,514     $ 63,371     $ (13,389 )   $ (20,246 )
    Multifamily construction     29,109       43,341       54,318       (14,232 )     (25,209 )
    Nonresidential construction     17,500       1,015       18,746       16,485       (1,246 )
    Land and development     5,975       6,403       6,999       (428 )     (1,024 )
    Total construction and land loans   $ 95,709     $ 107,273     $ 143,434     $ (11,564 )   $ (47,725 )
                                             
    Auto and other consumer loans breakout                                        
    Triad Manufactured Home loans   $ 129,600     $ 125,906     $ 101,339     $ 3,694     $ 28,261  
    Woodside auto loans     126,129       131,151       124,833       (5,022 )     1,296  
    First Help auto loans     15,971       17,427       5,079       (1,456 )     10,892  
    Other auto loans     2,064       2,690       5,022       (626 )     (2,958 )
    Other consumer loans     7,434       8,449       12,513       (1,015 )     (5,079 )
    Total auto and other consumer loans   $ 281,198     $ 285,623     $ 248,786     $ (4,425 )   $ 32,412  
                                             
    Commercial business loans breakout                                        
    PPP loans   $ –     $ 5     $ 45     $ (5 )   $ (45 )
    Northpointe Bank MPP     38,155       9,150       162       29,005       37,993  
    Secured lines of credit     37,686       28,862       35,833       8,824       1,853  
    Unsecured lines of credit     1,571       1,133       919       438       652  
    SBA loans     7,219       7,146       9,149       73       (1,930 )
    Other commercial business loans     70,696       70,798       55,272       (102 )     15,424  
    Total commercial business loans   $ 155,327     $ 117,094     $ 101,380     $ 38,233     $ 53,947  
                                             

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)

    Non-GAAP Financial Measures
    This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America (“GAAP”). Non-GAAP measures are presented where management believes the information will help investors understand the Company’s results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. 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. Reconciliations of the GAAP and non-GAAP measures are presented below.

    Calculation of Total Revenue:

        September 30, 2024     June 30, 2024     March 31, 2024     December 31, 2023     September 30, 2023  
        (Dollars in thousands)  
    Net interest income   $ 14,020     $ 14,235     $ 13,928     $ 14,195     $ 14,950  
    Noninterest income     1,779       7,347       2,188       (2,929 )     2,904  
    Total revenue, net of interest expense(1)   $ 15,799     $ 21,582     $ 16,116     $ 11,266     $ 17,854  
     
    (1)  We believe this non-GAAP metric provides an important measure with which to analyze and evaluate income available for noninterest expenses.
     

    Calculations Based on Tangible Common Equity:

        September 30, 2024     June 30, 2024     March 31, 2024     December 31, 2023     September 30, 2023  
        (Dollars in thousands, except per share data)  
    Total shareholders’ equity   $ 160,789     $ 158,881     $ 160,506     $ 163,340     $ 156,065  
    Less: Goodwill and other intangible assets     1,083       1,084       1,085       1,086       1,087  
    Disallowed non-mortgage loan servicing rights     489       517       489       481       609  
    Total tangible common equity   $ 159,217     $ 157,280     $ 158,932     $ 161,773     $ 154,369  
                                             
    Total assets   $ 2,255,486     $ 2,215,962     $ 2,240,020     $ 2,201,797     $ 2,153,545  
    Less: Goodwill and other intangible assets     1,083       1,084       1,085       1,086       1,087  
    Disallowed non-mortgage loan servicing rights     489       517       489       481       609  
    Total tangible assets   $ 2,253,914     $ 2,214,361     $ 2,238,446     $ 2,200,230     $ 2,151,849  
                                             
    Average shareholders’ equity   $ 160,479     $ 163,079     $ 161,867     $ 155,971     $ 160,994  
    Less: Average goodwill and other intangible assets     1,084       1,085       1,085       1,086       1,087  
    Average disallowed non-mortgage loan servicing rights     517       489       481       608       557  
    Total average tangible common equity   $ 158,878     $ 161,505     $ 160,301     $ 154,277     $ 159,350  
                                             
    Net (loss) income   $ (1,980 )   $ (2,219 )   $ 396     $ (5,522 )   $ 2,504  
    Common shares outstanding     9,365,979       9,453,247       9,442,796       9,611,876       9,630,735  
    GAAP Ratios:                                        
    Equity to total assets     7.13 %     7.17 %     7.17 %     7.42 %     7.25 %
    Return on average equity     -4.91 %     -5.47 %     0.98 %     -14.05 %     6.17 %
    Book value per common share   $ 17.17     $ 16.81     $ 17.00     $ 16.99     $ 16.20  
    Non-GAAP Ratios:                                        
    Tangible common equity to tangible assets(1)     7.06 %     7.10 %     7.10 %     7.35 %     7.17 %
    Return on average tangible common equity(1)     -4.96 %     -5.53 %     0.99 %     -14.20 %     6.23 %
    Tangible book value per common share(1)   $ 17.00     $ 16.64     $ 16.83     $ 16.83     $ 16.03  
     
    (1)  We believe these non-GAAP metrics provide an important measure with which to analyze and evaluate financial condition and capital strength. In addition, we believe that use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.
     

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)

        September 30, 2024     September 30, 2023  
        (Dollars in thousands, except per share data)  
    Total shareholders’ equity   $ 160,789     $ 156,065  
    Less: Goodwill and other intangible assets     1,083       1,087  
    Disallowed non-mortgage loan servicing rights     489       609  
    Total tangible common equity   $ 159,217     $ 154,369  
                     
    Total assets   $ 2,255,486     $ 2,153,545  
    Less: Goodwill and other intangible assets     1,083       1,087  
    Disallowed non-mortgage loan servicing rights     489       609  
    Total tangible assets   $ 2,253,914     $ 2,151,849  
                     
    Average shareholders’ equity   $ 161,803     $ 160,573  
    Less: Average goodwill and other intangible assets     1,085       1,088  
    Average disallowed non-mortgage loan servicing rights     496       690  
    Total average tangible common equity   $ 160,222     $ 158,795  
                     
    Net (loss) income   $ (3,803 )   $ 7,808  
    Common shares outstanding     9,365,979       9,630,735  
    GAAP Ratios:                
    Equity to total assets     7.13 %     7.25 %
    Return on average equity     -3.14 %     6.50 %
    Book value per common share   $ 17.17     $ 16.20  
    Non-GAAP Ratios:                
    Tangible common equity to tangible assets(1)     7.06 %     7.17 %
    Return on average tangible common equity(1)     -3.17 %     6.57 %
    Tangible book value per common share(1)   $ 17.00     $ 16.03  
     
    (1)  We believe these non-GAAP metrics provide an important measure with which to analyze and evaluate financial condition and capital strength. In addition, we believe that use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.
     

    Images accompanying this announcement are available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/e387e9e8-0a9a-4306-8623-41b739acb402
    https://www.globenewswire.com/NewsRoom/AttachmentNg/4a433c9b-6823-47f3-8843-0d8138f89182
    https://www.globenewswire.com/NewsRoom/AttachmentNg/d5ca9bb6-4a5d-45aa-8336-dd1ae06f0786
    https://www.globenewswire.com/NewsRoom/AttachmentNg/5b9aaf8c-4fd4-437d-af24-7ba8fc60616c

    The MIL Network –

    January 25, 2025

  • MIL-OSI Canada: The Sexual Misconduct Support and Resource Centre opens call for applications for the Community Support for Sexual Misconduct Survivors Grant Program

    Source: Government of Canada News (2)

    News release

    The Sexual Misconduct Support and Resource Centre (SMSRC) is committed to improving access to support services for individuals affected by sexual misconduct within the Defence community.

    October 29, 2024 – Ottawa, Ontario – Department of National Defence

    The Sexual Misconduct Support and Resource Centre (SMSRC) is committed to improving access to support services for individuals affected by sexual misconduct within the Defence community.

    Today, the SMSRC launched its 2024-25 call for applications for the Community Support for Sexual Misconduct Survivors Grant Program. This initiative aims to broaden the availability of support services and strengthen collaboration between community-based organizations and Department of National Defence (DND) and Canadian Armed Forces (CAF) service providers.

    Grant Details:

    • One-time project grants: up to $50,000
    • Recurrent grants: up to $75,000 annually for two to three years
    • Application deadline: November 26, 2024, at 11:59 PM Pacific Time
    • Funding anticipated to commence: Spring 2025

    The goal of the Grant Program is to broaden the scope of support services accessible to those affected by sexual misconduct in the wider Defence community and increase the collaboration between community-based and DND/CAF service providers. The SMSRC’s Grant Program was developed based on the request of people in the Defence community affected by sexual misconduct to have access to a broad range of culturally competent, confidential, specialized care and support services.

    The grant program is part of It’s Time: Canada’s Strategy to Prevent and Address Gender-Based Violence (the federal GBV Strategy).

    For further information and to apply, please visit the SMSRC Grant Program website.

    Quotes

    “Improving access to support services for members of the Defence Community who have been affected by sexual misconduct is a top priority for the Department of National Defence and the Canadian Armed Forces. By funding projects across Canada, the SMSRC’s Grant Program ensures that our people have access to a broader range of support services. The Defence Community works hard every day to keep Canadians safe and it is our duty to make sure we build an institution where everyone feels respected and empowered to reach their full potential.”

    The Honourable Bill Blair, Minister of National Defence

    “Survivors and individuals affected by sexual misconduct should be able to access the support services they need when and where they need them. This program helps expand access to critical support services close to home. By investing in community-based organizations, our government is empowering communities to provide the care and resources that survivors and their families can count on.”

    The Honourable Ginette Petitpas Taylor, Minister of Veterans Affairs and Associate Minister of National Defence

    “The SMSRC Community Support for Sexual Misconduct Survivors Grant Program is open to receiving applications from community-based service providers. I look forward to establishing grant agreements with organizations across the country to support those affected by sexual misconduct. Together, we can work to make sure that those affected have the support they need.”

    Linda Rizzo-Michelin, Chief Operating Officer, Sexual Misconduct Support and Resource Centre (SMSRC), Department of National Defence

    Quick facts

    • The Grant Program was first launched in the fall of 2022 and currently funds 32 projects in Alberta, British Columbia, Quebec, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Saskatchewan.

    • Eligible organizations include, but are not limited to, sexual assault centres, community support programs and counselling services who have the capacity and expertise to provide support to those that have been affected by sexual misconduct within the wider Defence community.

    • The “wider Defence community” includes current and former CAF members/Veterans, DND public service employees, Cadets, Junior Canadian Rangers, their families, supporters, and caregivers (age 16 and older).

    • The program seeks to support projects that address the needs of diverse populations, women, men, sexually and  gender diverse people; Two Spirit, lesbian, gay, bisexual, transgender, queer, intersex and additionally sexually and gender diverse (2SLGBTQI+) people; Indigenous Peoples; Black, Asian and other racialized people; people living with disabilities; religious minorities; those living in an official language minority community; those living in northern, rural and remote communities; others with diverse identity factors; and/or people who cannot access services in person.

    • In addition to funding community support, the SMSRC provides support services to meet the needs of the wider Defence community.

    Associated links

    Contacts

    Media Relations
    Department of National Defence
    613-904-3333
    mlo-blm@forces.gc.ca

    MIL OSI Canada News –

    January 25, 2025

  • MIL-OSI Global: Haiti’s gangs turn to starving children to bolster their ranks

    Source: The Conversation – UK – By Amalendu Misra, Professor of International Politics, Lancaster University

    After months of relentless gang violence, thousands of killings, and the unseating of a government, Haiti is faced with another heartbreaking issue which seems likely to prolong the Caribbean island nation’s woes for another generation. Testimonies collected by Amnesty International have uncovered how Haiti’s armed gangs are enlisting hundreds of children.

    Ana Piquer, Americas director at Amnesty International, says: “We have documented heartbreaking stories of children forced to work for gangs: from running deliveries to gathering information and performing domestic tasks under threats of violence.”

    Boys as young as six are being forced to work as lookouts, made to build street barriers, trained to use machine guns, and are being ordered to participate in kidnappings and other acts of violence. Girls in the possession of gangs are subjected to rape and other forms of sexual violence by older male gang members, according to Piquer.

    Haiti’s 200 or so armed gangs currently control around 90% of the capital city, Port-au-Prince, and large parts of the country are ungovernable. The collapse in law and order has allowed gang leaders such as Jimmy “Barbecue” Chérizier to commit terrible atrocities largely unchallenged.



    Read more:
    Jimmy ‘Barbecue’ Chérizier: the gangster behind the violence in Haiti who may have political aspirations of his own

    The involvement of children in Haiti’s gangs is not exactly new. According to Unicef, between 30% and 50% of children in Haiti are involved with armed groups in some capacity. There are several socioeconomic explanations for this.

    Haiti was once the wealthiest European colony in the Americas – and staged the only ever successful slave rebellion against its French colonial masters before declaring independence in 1804. But modern Haiti is a failed state where more than half of the population now live below the World Bank’s poverty line.

    According to figures published by the International Fund for Agricultural Development, Haiti has the highest prevalence of food insecurity in Latin America and the Caribbean. One-third of the population goes hungry every day.

    Impoverishment and grinding poverty has made the population desperate. With limited options for survival, many children in Haiti are drawn into criminal groups. At times, the promise of a single meal can be enough to attract a child to join a gang.

    That said, the breakdown of order throughout the country has undoubtedly encouraged the gangs to increase their recruitment of children. As with most conflict zones, once indoctrinated, child soldiers make for cheap and deadly combatants.

    There is also one other specific social factor that contributes to some parents turning a blind eye to their children joining the gangs. The prevalence of child recruitment by gangs can be linked to a Haitian socioeconomic practice called restaveks.

    A restavek, which is Creole for “to stay with”, is a child who is given away by impoverished parents with the unwritten understanding that they will be fed, looked after and will not die of hunger. It has become a form of modern-day slavery.

    The End Slavery Now project has found that “more than 300,000 children are victims of domestic slavery” in Haiti today. Many of these children regularly undergo forms of physical and sexual violence.

    A set pattern

    Child sex slavery and sexual abuse are familiar occurrences in societies torn by civil war. It is more likely to take place in settings where the process of governance is weak or non-existent. This situation facilitates conditions of criminal impunity, leading various actors involved in conflict to sexually exploit children.

    There is an established pattern of predatory child sexual slavery in Haiti. Following the devastating earthquake that struck Haiti in 2010 and the ensuing cholera epidemic, some members of the UN peacekeeping force stationed in the country were found to have been running a child sex racket.

    In 2017, an investigation by the Associated Press revealed at least 134 Sri Lankan peacekeepers were involved. It has been documented that girls as young as 11 were sexually abused and impregnated by the peacekeepers, and then subsequently abandoned to raise their children alone. Impoverished and starving Haitian children fell victim to this racket in exchange for scraps of the peacekeepers’ leftover food.

    According to its own admission, the UN peacekeeping force was responsible for “transactional sex” during its operations in the country.



    Read more:
    ‘They put a few coins in your hands to drop a baby in you’ – 265 stories of Haitian children abandoned by UN fathers

    In 2019, the UN secretary general, António Guterres, branded violence against children as a “silent emergency” of our time. Unfortunately, not much is being done to address this challenge, despite the urgency of Guterres’ statement.

    There are many existential challenges facing Haiti. Some of them are homegrown, such as the prevalence of gangs and their terror techniques.

    But, as it is located on a geological fault line in a region susceptible to severe storms, Haiti is particularly prone to natural disasters. A devastating earthquake in 2010 and a cholera epidemic in 2016 debilitated the country, and the knock-on effects will last decades.

    To make matters worse, Haiti also suffers from a compassion deficit. A lack of real engagement from the international community has contributed to the erosion of the Haitian civil society and left the population at the mercy of gang violence.

    Even the Kenyan-led policing mission tasked with restoring order is suffering from inadequate funding and equipment, which has affected its operational capacity. Only around US$400 million (£308 million) of the US$600 million that was originally pledged for the mission has materialised, with the US shouldering a disproportionate financial burden.

    Preoccupied with more high-profile conflicts elsewhere, the international community appears to have little interest in the horrors that are unfolding under the tropical sun in the faraway Caribbean.

    Amalendu Misra is a recipient of British Academy and Nuffield Foundation fellowships.

    – ref. Haiti’s gangs turn to starving children to bolster their ranks – https://theconversation.com/haitis-gangs-turn-to-starving-children-to-bolster-their-ranks-241386

    MIL OSI – Global Reports –

    January 25, 2025

  • MIL-OSI Global: Palestine’s economy teeters on the brink after a year of war and unrelenting destruction

    Source: The Conversation – UK – By Dalia Alazzeh, Lecturer in Accounting and Finance, University of the West of Scotland

    The Palestinian economy has been devastated beyond recognition. Israel’s intense military operations in Gaza have led to unprecedented destruction, wiping out much of the enclave’s essential infrastructure, private property and agricultural resources.

    Meanwhile, the occupied West Bank is also under severe strain. Similar patterns of destruction, alongside rising settler violence, land confiscations and expanding settlements, have left its economy buckling under the pressure of mounting public debt, unemployment and poverty.

    Gaza’s economy was being suffocated even before the war. A blockade imposed by Israel in 2007 has severely restricted the import and export of goods, while fishermen were limited to a six-mile zone, crippling their ability to earn a livelihood.

    The blockade caused Gaza’s GDP per capita (a measure of the wealth of a country) to shrink by 27% between 2006 and 2022, with unemployment rising to 45.3%. This gave rise to a situation where 80% of the population depended on international aid.

    In addition to the economic blockade, Gaza suffered massive physical destruction due to Israeli military operations in 2008–2009, 2012, 2014, 2021 and 2022. Yet the cumulative effects of 16 years of blockade and military attacks are minor compared to the sheer destruction caused by the current war.

    A report by the UN’s trade and development wing (Unctad) has revealed that in the space of just eight months, between October 2023 and May 2024, Gaza’s GDP per capita was fell by more than half. The economic situation now is almost certainly worse.

    According to the report, which was released in September 2024, Gaza’s GDP dropped by 81% in the final quarter of 2023 alone. The report concluded that the war had left Gaza’s economy in “utter ruin”, warning that even if there was an immediate ceasefire and the 2007–2022 growth trend of 0.4% returns, it will take 350 years just to restore the GDP levels of 2022.


    The only sectors still functioning are health and humanitarian services. All other industries, including agriculture, are at a near standstill. The destruction of between 80% and 96% of agricultural assets has led to rampant food insecurity.

    The scale of destruction in Gaza is unprecedented in modern times and is happening under the world’s gaze. From October 2023 to January 2024 alone, the total cost of damage reached approximately US$18.5 billion (£14.2 billion) – equivalent to seven times Gaza’s GDP in 2022.

    A separate report by the UN Development Programme, which was published in May, predicts that it will take more than 80 years to rebuild just Gaza’s housing stock if it repeats the rate of restructuring seen after Israeli military operations in 2014 and 2021. Merely clearing the debris could take up to 14 years.

    The war has displaced almost all of Gaza’s population, and has thrown people into dire poverty. Unemployment surged to 80%, leaving most households without any source of income. And prices of basic commodities have increased by 250%, which is contributing to famine across the Strip.

    The Gaza Strip is in ruins after more than a year of relentless bombardment.
    Anas-Mohammed / Shutterstock

    The economic crisis has also extended to the West Bank, where GDP has fallen sharply. Military checkpoints, cement blocks and iron gates at the entrances to Palestinian towns and cities, as well as the denial of work permits for Palestinians in Israeli settlements, have resulted in more than 300,000 job losses since the start of the war.

    The Unctad report reveals that the rate of unemployment in the West Bank has tripled to 32% since the start of the conflict, with labour income losses amounting to US$25.5 million. Poverty is rising rapidly.

    Israeli forces have also continued to confiscate Palestinian homes and land. Over the past year alone, 24,000 acres of land in the West Bank have been seized, and over 2,000 Palestinians have been displaced.

    This devastation has been exacerbated by Israel’s decision to withhold the tax revenue it collects for the Palestinian Authority, which typically accounts for between 60% and 65% of the Palestinian public budget, as well as a significant decline in international aid. Aid to Palestine has dropped drastically over the past decade or so, falling from the equivalent of US$2 billion in 2008 to just US$358 million by 2023.

    The Palestinian Authority is facing a massive budget deficit, which is projected to increase by 172% in 2024 compared to the previous year. This financial strain has crippled the Palestinian government’s ability to provide essential services, pay salaries and meet the needs of a population battered by war, displacement and severe poverty.

    The road to recovery

    For the Palestinian economy to have any chance at recovery, several immediate steps are necessary.

    First, international aid should flow into Gaza uninterrupted, and pressure must be applied to ensure that humanitarian aid – particularly food aid – reaches those in need. Data analysis by organisations working in Gaza suggests that Israel is currently blocking 83% of food aid from reaching Gaza.

    Second, the destruction of homes, schools and infrastructure must cease. However, this seems improbable as Israel continues to pursue its military goal of destroying Hamas – an objective most analysts believe to be unachievable.

    And third, the economic restrictions imposed on Gaza and the West Bank must be lifted. Sustainable development – and any prospect for recovery – cannot be achieved without granting the Palestinian people the right to self-determination and sovereignty over their resources.

    This would require new peace agreements, an outcome that appears unlikely at present. But without these crucial interventions, the Palestinian economy will be completely devastated and the humanitarian crisis will worsen, making any future recovery within the lifetime of anyone currently living in Gaza virtually impossible to imagine.

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

    – ref. Palestine’s economy teeters on the brink after a year of war and unrelenting destruction – https://theconversation.com/palestines-economy-teeters-on-the-brink-after-a-year-of-war-and-unrelenting-destruction-241607

    MIL OSI – Global Reports –

    January 25, 2025

  • MIL-OSI United Kingdom: Astra Awards Celebrate Grassroots Innovation23 Oct 2024

    Source: United Kingdom – Royal Air Force

    The Astra Awards celebrated innovation, challenge, and improvement across the RAF at the RAF Museum in London on 17 October 2024.

    Astra is the RAF’s approach to grassroots innovation, which encompasses bureaucracy challenge and continuous improvement. The Astra Awards recognise some of the most inspirational people, ingenious ideas, and the incredible impact they’ve had on our operational output.

    Award Winners

    Astra Unit Award, sponsored by Fujitsu

    Winner: RAF Lossiemouth

    RAF Lossiemouth showcases the future of the Astra Network at a unit level. Enthusiastically grasping the direction to refocus Astra onto grassroots innovation, the team have already made a significant impact on the innovative mindset across the station. Proactively upskilling the existing Continuous Improvement personnel in unfamiliar areas such as additive manufacturing, computer-aided design, and virtual reality, the small team are already proving highly effective in all aspects of grassroots innovation. Positively impacting on people and the operational output across the unit, they are making best use of every asset and opportunity provided to them. To support their work, the team have created an exciting and engaging Astra Hub; a collaborative, innovative space that will allow the whole force to continue to deliver substantial benefits to RAF Lossiemouth and the RAF.

    Astra Innovation Award, sponsored by PA Consulting

    Winner: Project I2T

    Project IMMERSIVE INSTRUCTOR TRAINING, known as I2T, is designed to enhance the delivery of training to Qualified Helicopter Instructors and Qualified Helicopter Crewman Instructors. Significantly modernising the outdated system, the project delivers training using immersive 360-degree video courseware accessed via virtual reality headsets. Developed by Flt Lt Rich Keeling and Dr Jon Allsop at the Central Flying School, it is being implemented by RAF Shawbury to great effect. It is proving to complement the existing training programme and allows instructors to gain skills through repeatable virtual scenarios and error analysis. It bridges the gap between theoretical and real-world flying in a sustainable manner and helps to ensure effective instructors for future helicopter aircrew.

    Astra Challenge Award, sponsored by Boxxe

    Winner: Sergeant Becky Livesey

    Consistently championing change for the benefit of our whole force, Becky has been a driving force behind a challenge to amend outdated policy to support hundreds of individuals with shared parental responsibility. The previous policy only allowed leave to be shared between serving spouses, which did not reflect the changing nature of families and led to personal difficulties and an unstable environment for the children of Service personnel. Her challenge highlighted the negative impact of the policy and was integral to bringing about a significant change. The updated policy now allows leave to be transferred between serving personnel in all three Services who both have parental responsibility for a child, enabling them to use it for childcare purposes. The resulting increase in stability for Service children and the home environment cannot be underestimated, nor can its impact on retention and morale for our people.

    Astra Improvement Award, sponsored by QinetiQ

    Winner: RAF Brize Norton Air Mobility Force Dispatch Optimisation

    The consolidation of key enablers into a centralised dispatch centre at RAF Brize Norton has greatly enhanced communication, professional relationships, and overall efficiency, saving over 15 minutes for every flight from the busy main operating base. The relocation of the Meteorological Office, Jet Plans, and MSC has reduced unnecessary movement and transportation waste, streamlining workflow. The elimination of ‘nav bags’ and the centralisation of Electronic Flight Bags further minimised motion waste. Additionally, process duplication has been removed, reducing rework, and allowing crews to plan without interruption. Crews also save a further 6-8 minutes by no longer needing to visit Load Control, and aircrew now book transport directly, reducing delays. The project has delivered efficiencies for all stakeholders throughout the process.

    Astra Contribution to Operations Award, sponsored by the RAF

    Winner: F-35 Detachment Toolkit

    Recognising the need for rapid deployability in support of ACE, the RAF Marham team developed and delivered a deployable toolkit in support of the F-35 fleet. Employing Lean Six Sigma analysis and modelling high level tool usage across the fleet, they identified the full requirements to ensure the project would deliver a successful product. The team repurposed tools and test equipment from redundant issue centres, obtained funding for a laser etching machine, and procured mobile support units. Owing to their efforts, the F-35 now has a deployable tool capability that was used for the first time in the Iceland Air Policing operation. The capability has increased the potential operational output of the fleet, allowing it to operate effectively in two different locations with minimal impact to the flying programme.

    Astra Ambassador Award, sponsored by the RAF

    Winner: Chief Technician Martyn Sullivan

    Martyn has consistently demonstrated and embodied innovation, challenge, and improvement. His passion for making RAF Coningsby better through well-structured and benefit-led projects has ensured his small team have delivered a positive and lasting impact at unit level. Their demonstrable output adds value across the board. Alongside his commitment to RAF Coningsby, he actively collaborates with the whole force across the RAF, sharing his knowledge and experience and encouraging others to develop their innovative mindset. He created, organised, and delivered courses that developed an internal grassroots innovation network that spans all professions and sections. Furthermore, his exceptional work with industry partners such as BAE Systems has delivered projects that have improved and enhanced the operational output of the Typhoon fleet at both Coningsby and Lossiemouth.

    Spirit of Innovation Award, sponsored by BAE Systems

    Winner: Chief Technician Neil Hunt

    Wing Commander Williamson collected the award on behalf of Chief Technician Hunt. It will be formally presented on unit.

    Neil has shown significant determination and commitment to improvement. After identifying issues with the transportation of F-35 canopies across unit, Neil, alongside Sgt Richard James, developed the F-35 Canopy Transportation Trolley project, which has now been brought into service at RAF Marham. The innovative improvement project has already saved Defence over £600k. Continuing to engage with the Astra improvement process, Neil has submitted a further 13 ideas over the past two years. This includes the F-35 Ejection Seat Transportation Solution, which has once again delivered an effective solution that has delivered significant benefits, saving Defence £1.75m in the first 3 months by removing potential for damage and increasing resource efficiency.

    Neil’s award was collected by Wg Cdr Williamson on his behalf and will be handed over formally on unit.

    Astra Rising Star Award, sponsored by Frazer-Nash Consultancy

    Winner: Elizabeth Garvin

    Beth is new to the Civil Service and the RAF whole force as the Continuous Improvement Facilitator at RAF St Mawgan, who has taken on the role of Astra Ambassador as well as CI Lead. Always keen to learn, she proactively approached the Headquarters CI Team to secure a place on the Lean Six Sigma training course to further develop her skills. Since completing the course, she has rapidly applied her newfound knowledge and skills to delivering improvements across the unit. She has embraced the Astra ethos and amalgamated innovation, challenge, and improvement across all functional areas on unit, developing a growing innovative mindset and culture. Her creation of a regular drumbeat of collaboration opportunities, where she shares insight into activity in other areas, is already proving popular and igniting ideas in others from every area across the unit. Beth epitomises the values and intentions of Astra and grassroots innovation in the RAF whole force.

    Astra People’s Choice Award, sponsored by Babcock

    Winner: D-State Proforma

    Using the tools and techniques of Continuous Improvement, a full review and redesign of the State Demand form at RAF Coningsby was undertaken. The inefficient process saw at least 12 versions of the same form used on unit, with a significant administrative burden for all involved in submitting the 6000+ forms a year. The process was reviewed end-to-end and redesigned to remove unnecessary steps. Considering the needs of all stakeholders, it has simplified the communication flow and established an effective feedback loop. The project has significantly reduced the rejection rate for state demand forms and the potential misallocation of engineering spares. The redesigned form has also saved over 1600 hours per year just at RAF Coningsby and has also been used repeatedly and proven highly successful in the UK and on Op SHADER.

    Astra Team Award, sponsored by Leonardo

    Winner: Ailidh Leather

    Ailidh Leather has been the lead for Project POST ROOM at RAF Cosford, which uses scanning technology to significantly enhance the experience of the Post Room staff and the hundreds of recipients on station. Several years ago, Ailidh identified how technology could transform how mail is processed. With increasing amounts of parcels due to online shopping and inefficient handwritten ledgers, the post room was being swamped with mail leading to long delays in items reaching their intended recipient. Her persistence, determination, and forward thinking have ensured that the project has reached the position it is in today despite numerous setbacks. Through her tenacity, the project is making a real difference to the lives of personnel at Cosford, with potential to be rolled out wider across the RAF.

    Chief of the Air Staff’s Award, sponsored by Astra

    Winner: Air Specialist Class 1 Ross McGrory

    Ross played a pivotal role in Project GAIA, seamlessly transforming it into a Digital Shadow for a deployed medical centre by connecting multiple devices to a central hub. Proactively learning a new programming language, and dedicating a significant amount of his personal time, he developed a working product that provides a critical capability – 24/7 monitoring for emergency medical items such as blood supplies. Ross’s innovative mindset and skillset ensured that the complex system could easily be used by non-technical staff, which is not an easy task. Additionally, as second in command of RAF Leeming‘s Makerspace, which is an integral part of the Astra Hub, he expanded user engagement. He swiftly solved a persistent station issue in just 4 hours, highlighting his technical expertise and commitment to innovation.

    Hundreds gathered in Sunderland Hall at the RAF Museum for an evening of reward and recognition, showcasing grassroots innovation and sharing ideas. Grassroots innovation activities from the whole force were on display to ignite the innovative mindset of our people and encourage collaboration to bring meaningful change.

    Personnel from across the whole force were joined by international allies from the United States Air Force (USAF), Royal Australian Air Force, and Royal Canadian Air Force. Members of the USAF currently based in the UK also joined RAF personnel in demonstrating grassroots innovation projects in their area. The USAF’s AFWERX team are working closely with the RAF’s Astra Team to encourage collaboration on common problem sets, with the first joint grassroots innovation projects already being planned.

    MIL OSI United Kingdom –

    January 25, 2025

  • MIL-OSI United Kingdom: RAF provide Lebanon’s Armed Forces with supplies25 Oct 2024

    Source: United Kingdom – Royal Air Force

    The RAF has delivered more than 12,500 ration packs and 79 battlefield medical kits to the Lebanese Armed Forces.

    This package of medical supplies and provisions are funded by the UK’s Integrated Security Fund and will help support the Lebanese Armed Forces (LAF).

    As the only legitimate military force of the Lebanese state, investing in the Lebanese Armed Forces is essential to the future security and stability of Lebanon, and the wider region.

    For more than a decade, the UK has given critical support to the Lebanese Armed Forces as a trusted partner, through training, mentoring and the provision of equipment. Since 2009, the UK has trained over 34,000 Lebanese Armed Forces personnel and dedicated over £106 million in funding including the gifting of over 300 Land rovers. The UK has also helped to construct nearly 80 Border Observation posts and Forward Operating Bases as part of our efforts to support Lebanese border security.

    The Prime Minister, Foreign Secretary, and Defence Secretary continue to call for an immediate ceasefire in the region to allow space for a political solution. The FCDO advises all British nationals should leave Lebanon immediately and have arranged several charter flights from Lebanon in recent weeks to support this.

    Today’s delivery of supplies from the RAF is in direct response to a request from the Lebanese Armed Forces. We have supported the Lebanese Armed Forces for more than a decade. They are essential to ensuring that the foundations are present for peace in the region. Our support for Lebanese Armed Forces is part of how we aim to reinforce regional security and stability. We continue to work closely with our partners and allies in calling for an immediate ceasefire.

    John Healey
    Defence Secretary

    This package of UK support demonstrates our ongoing commitment to Lebanon’s only legitimate armed forces, forces essential for stability and security of the state and wider region. We continue to call for an immediate ceasefire between Lebanese Hizballah and Israel and a political plan consistent with UN Security Council Resolution 1701. That is the only way to restore security and stability for the people living on both sides of the border.

    David Lammy
    Foreign Secretary

    In October 2024, as a direct response to the mass displacement of people and growing number of civilian casualties, the UK boosted its humanitarian support for Lebanon with a further £10 million. The announcement follows the £5 million humanitarian package delivered through UNICEF to support access to clean water and sanitation, health, and nutrition supplies. The UK has also agreed to match public donations to the DEC Middle East Humanitarian Appeal of up to £10 million.

    The UK government is completely committed to peace in the Middle East and continues to call for de-escalation in the region after being the first nation in the G7 to do so. A ceasefire would pave the way for civilians on both sides of the border to return to their homes.

    MIL OSI United Kingdom –

    January 25, 2025

  • MIL-OSI Russia: Dmitry Patrushev: Roshydromet, as the main coordinating agency in its field, is among the top five services in the world

    Translation. Region: Russian Federation –

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

    Dmitry Patrushev at the opening of the Eighth All-Russian United Meteorological and Hydrological Congress

    October 29, 2024

    Dmitry Patrushev at the opening of the Eighth All-Russian United Meteorological and Hydrological Congress

    October 29, 2024

    Dmitry Patrushev at the opening of the Eighth All-Russian United Meteorological and Hydrological Congress

    October 29, 2024

    Previous news Next news

    Dmitry Patrushev at the opening of the Eighth All-Russian United Meteorological and Hydrological Congress

    This was stated by Deputy Prime Minister Dmitry Patrushev during the opening of the VIII All-Russian United Meteorological and Hydrological Congress in St. Petersburg, dedicated to the 190th anniversary of the founding of the Russian Hydrometeorological Service. This year, specialists from two industry areas – hydrology and meteorology – gathered at one venue for the first time. The central theme of the event was the feasibility of developing a new strategy for the activities of hydrometeorology and related areas.

    Dmitry Patrushev noted that the sphere has come a long way almost two centuries long. All this time, the tools and methods of work have been improved. And today, of course, there are already significant results and reasons for pride.

    “Roshydromet, as the main coordinating agency in its field, is one of the top five services in the world. Nevertheless, work should continue in all key areas. In particular, the Strategy for Activities in the Field of Hydrometeorology until 2030 is currently being implemented. However, given the new tasks set by the President, I believe that it is necessary to think in advance about updating the document in the planning horizon until 2036,” the Deputy Prime Minister said.

    According to the Deputy Prime Minister, first of all, it is necessary to improve the quality of forecasts and, in particular, increase the efficiency of emergency prevention. The uninterrupted functioning of a number of industries depends on this: the agro-industrial, fisheries and forestry complexes, the construction sector, energy and transport. But the main thing, of course, is the safety of people.

    This requires further modernization of the state observation network, which is the main source of information. The government, for its part, is working on the possibility of allocating additional funding for this. Dmitry Patrushev emphasized that the integration of new regions of Russia into the national observation network system must be completed by 2030. 8 billion rubles are allocated for this.

    Speaking about strategic tasks, the Deputy Prime Minister recalled that in accordance with the Presidential Decree on national development goals, the volume of harmful emissions in cities with the highest levels of air pollution should be halved. The relevant measures are aimed at this. At the same time, to assess their results, it is necessary to create a comprehensive system for analyzing the quality of the environment. Work is already underway within the framework of the national project “Ecology”. In 12 cities that became the first participants in the federal project “Clean Air”, the monitoring network has been completely modernized.

    In addition, infrastructure is being updated in populated areas near Lake Baikal. In the future, measures are also envisaged in the new national project “Ecological Well-Being”. In the future, the system of comprehensive air pollution monitoring should cover the entire territory of our country.

    Dmitry Patrushev also spoke about the work organized in the Arctic and Antarctic. Russia is implementing unique projects there that have no analogues in the world. This includes the ice-resistant platform “North Pole” and the new complex “Vostok” in Antarctica, which was put into operation in 2024. They allow expanding the geography of scientific research, using the most advanced technologies even in harsh polar conditions.

    The Deputy Prime Minister said that the renewal of the research fleet will definitely continue. Thus, in the coming years, the expedition vessel Ivan Frolov, which was laid down at the Admiralty Shipyards, will join it.

    As the Deputy Prime Minister noted, one of the most important areas of work of the hydrometeorological service is the analysis and forecasting of climate processes. A system for monitoring climate-active substances in the atmosphere is being created in Russia. Its full launch is expected by 2030. This will ensure a larger-scale collection and processing of data for an objective assessment of the state of the atmosphere and the Earth’s surface. The information obtained will be used in the implementation of measures aimed at adapting the economy to natural changes, including low-carbon transformation.

    In general, further updating of computing capacities and expansion of the scale of space monitoring are required to improve the efficiency of work. Within the framework of the Federal Space Program, the launch of several satellites at once is planned in the interests of Roshydromet.

    “You are facing very serious tasks. For our part, we are trying to do everything possible to improve the working conditions of specialists. This concerns not only the material and technical base, but also wages. On the instructions of the President, an additional 24 billion rubles will be allocated in the coming years to increase the wages of Roshydromet employees,” Dmitry Patrushev summed up.

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

    MIL OSI Russia News –

    January 25, 2025

  • MIL-OSI Canada: Health System Impact Fellows work to bring changes to our health systems

    Source: Government of Canada News (2)

    News release

    Canadians deserve access to high-quality health care. To achieve this, improvements often begin with research that examines how health care services are organized, regulated, managed, financed, and delivered.

    45 highly skilled researchers join health system organizations to help address pressing priorities and improve care for people in Canada

    October 29, 2024 | Ottawa, Ontario | Canadian Institutes of Health Research

    Canadians deserve access to high-quality health care. To achieve this, improvements often begin with research that examines how health care services are organized, regulated, managed, financed, and delivered.

    Today, the Honorable Mark Holland, Minister of Health, announced an investment of over $4.3M to help transform Canada’s health systems through the Health System Impact Program. This funding comes from the Canadian Institutes of Health Research (CIHR) and partners, Michael Smith Health Research BC and the Fonds de recherche du Québec – Santé.

    The Health System Impact Program focuses on health system transformation to ensure that people in Canada have access to the highest quality care. Through this initiative, PhD trainees, postdoctoral researchers and early-career researchers will collaborate with health organizations across the country to lead projects aimed at generating evidence to improve Canada’s health systems, services and policies. For the 2024 cycle, CIHR is supporting 25 PhD trainees and 20 postdoctoral researchers who are embedded in 34 health organizations and connected to 19 universities across Canada.

    These researchers will address a variety of critical health system issues, including optimizing primary health care, improving quality in long-term care homes, supporting the health workforce, advancing equity in cancer care, leveraging digital health opportunities, predicting antimicrobial resistance using machine learning, mitigating the health impacts of climate change, ensuring cultural safety in health care, enhancing mental health services, and more.

    Quotes

    “I would like to congratulate the 2024 cohort of CIHR Health System Impact Fellows. It’s so exciting to see these future research leaders join health system organizations to help tackle pressing priorities and improve care for Canadians. Their dedication to evidence-informed health system improvement and improving access to care for all people in Canada is inspiring, and their skills will contribute to real-world solutions and stronger health systems.”

    The Honourable Mark Holland
    Minister of Health

    “Each year, the contributions of Health System Impact Fellows invigorate our health systems with fresh insights and innovative solutions. It’s inspiring to see our next generation of health researchers thrive in this dynamic environment. They are not just advancing Learning Health Systems; they are helping to reshape the future of health care in Canada, ensuring it is more responsive, equitable, and driven by evidence.”

    Dr. Tammy Clifford
    Acting President, Canadian Institutes of Health Research

    “Our long-standing partnership with CIHR on this fellowship is supporting researchers and strengthening evidence-informed policy throughout BC. The program equips PhD trainees and postdoctoral researchers to translate research into practice and drive positive outcomes in health care environments. That’s an important outcome — building both research and health system capacity.”

    Dr. Bev Holmes
    President & CEO, Michael Smith Health Research BC

    Quick facts

    • CIHR’s Health System Impact program began in 2017 and to date, 328 fellows (111 PhD trainees and 217 postdoctoral researchers) and 12 early-career researchers have been or are currently embedded within 139 health system organizations and connected to 25 universities.  

    • Through this program, fellows receive unparalleled mentorship from senior decision-makers from health system organizations and academic experts from across the country.

    • The Health System Impact program is led by the CIHR Institute of Health Services and Policy Research.

    Associated links

    Contacts

    Matthew Kronberg
    Press Secretary
    Office of the Honourable Mark Holland
    Minister of Health
    343-552-5654

    Media Relations
    Canadian Institutes of Health Research
    mediarelations@cihr-irsc.gc.ca

    At the Canadian Institutes of Health Research (CIHR) we know that research has the power to change lives. As Canada’s health research investment agency, we collaborate with partners and researchers to support the discoveries and innovations that improve our health and strengthen our health care system.

    MIL OSI Canada News –

    January 25, 2025

  • MIL-OSI USA: From Policy to Action: Anna-Michelle McSorley Focuses on Health Equity for Latinos

    Source: US State of Connecticut

    Anna-Michelle McSorley, assistant professor of allied health sciences, joined the faculty of the College of Agriculture, Health and Natural Resources (CAHNR) this fall. Her work focuses on addressing health inequities related to policies and data collection for Latinos, particularly Puerto Ricans.

    “I’m well-situated at UConn to engage with the very population that is migrating from that territorial context into the state of Connecticut,” McSorley says.

    According to the most recent U.S. Census data, 18.6% of Connecticut’s population is Hispanic or Latino, equating to more than 670,000 people. Puerto Ricans constitute the largest Latino group within this population, representing roughly 45%. Nearly six million Puerto Ricans live outside of Puerto Rico in the States in total.

    McSorley is based at UConn Waterbury. Waterbury has a large Latino population, including more than 110,000 Puerto Ricans. This positions McSorley well to engage directly with the communities her research stands to impact.

    “It’s the rigor of research translated into policy action to benefit the people we are trying to serve,” McSorley says.

    Much of McSorley’s work focuses on Puerto Rico, which is neither an independent nation nor a state, but a territory of the United States.

    McSorley, who identifies as a “Nuyorican” raised between New York and Puerto Rico, understood this unique status from a young age. She realized there was something about how she was able to travel between the U.S. and Puerto Rico that was distinct from other Latino communities and countries.

    “I started thinking about that very early in my life,” McSorley says. “Then, through my education, I was able to pinpoint this difference, identify policies and structures that affect it, and have the vocabulary to highlight it as part of my research.”

    In her research, McSorley takes an expansive view of the federal and local policies, systems, and agencies that affect our health.

    “I think of traditional health policies,” McSorley says. “But I also think of others in our social sphere, like economic policies, that also ultimately shape health outcomes.”

    McSorley recently contributed three papers to a historical special edition of the American Journal of Public Health – the first to exclusively focus on Latino health issues – in which Puerto Rico is prominently featured.

    McSorley was the first author on one of these papers focusing on three key policy areas contributing to health and health care inequities in Puerto Rico: FEMA, Medicaid, and political representation in the island area.

    McSorley and her collaborators assess the ways in which the distribution of FEMA aid and Medicaid funds to the territory perpetuate health disparities.

    McSorley’s paper also highlights the role of political representation, or the lack thereof, in the differential application of federal policies in the territory of Puerto Rico.

    “Yes, these are matters of health policy,” says McSorley. “However, it’s also a question of political processes, potential political biases, and power dynamics.”

    As a territory, Puerto Rico is not a self-governing state. Puerto Ricans in Puerto Rico are U.S. citizens but cannot vote in presidential elections. They are governed by policies enacted by the U.S. Congress, thousands of miles away.

    In a major election year, Puerto Rico’s unresolved status as a territory could become a mobilizing issue across the Latino community, McSorley says.

    Anna-Michelle McSorley from the Department of Allied Health Sciences at UConn Waterbury. (Jason Sheldon/UConn photo)

    “After all, what is being observed in Puerto Rico also serves as a sort of ‘canary in the coal mine’ for communities across the States,” says McSorley. “For instance, the Medicaid block grant structure employed in Puerto Rico has been proposed as an alternative Medicaid funding structure in the States. If applied, this could lead to the same types of cuts to benefits we see in Puerto Rico.”

    The other papers to which McSorley contributed in this edition focus on improving data collected on Latino groups. Data often treats Latino populations as a monolith. However, this group includes dozens of unique populations.

    One paper calls for better empirical methods for data collection and health statistics that more accurately represent the population. The second paper focuses on Latino reproductive health inequities.

    “I want to address data gaps,” McSorley says. “How we collect data on Latinos, and Puerto Ricans specifically in the U.S. or the territory matters in terms of honoring different needs of populations.”

    This work relates to CAHNR’s Strategic Vision area focused on Promoting Diversity, Equity, Inclusion, and Justice and Enhancing Health and Well-Being Locally, Nationally, and Globally.

    Follow UConn CAHNR on social media

    MIL OSI USA News –

    January 25, 2025

  • MIL-OSI USA: Gov. Justice delivers $1 million Abandoned Mine Land Economic Revitalization grant to Mylan Park

    Source: US State of West Virginia

    The AMLER program aims to repurpose abandoned mine lands for sustainable economic development across West Virginia, with Mylan Park serving as a prime example of successful revitalization.

    About Mylan Park
    Over the past 20 years, Mylan Park has grown from four baseball and softball fields into full-service sports, recreation, wellness, and events complex spanning 400 beautiful acres. Mylan Park is also proud to be home to a variety of social, training, and educational organizations operating within the park footprint and serving the greater Morgantown community daily through their non-profit and service-oriented missions.

    Today, Mylan Park is recognized as one of West Virginia’s most dynamic venues for users and events of all walks. Owned and operated by the non-profit 501c3 Mylan Park Foundation, Mylan Park now offers 14 indoor and outdoor facilities comprising over 60 acres of athletic field space and more than 180,000 sq. ft. of indoor sport, recreation, and event venues. Each unique component of the park ensures that there is something for everyone and that Mylan Park is truly a place the entire community can enjoy.

    In recent years, the state has awarded the Mylan Park Foundation a $3.75 million grant from the AMLER program and a $3.5 million grant from the West Virginia Water Development Authority. The AMLER grant is supporting the development of Mylan Park’s new RV campground, and the Water Development Authority’s funds have been used to returf the park’s ballfields, upgrade the ballfield facility, and install pickleball courts.

    MIL OSI USA News –

    January 25, 2025

  • MIL-OSI: Eagle Bancorp Montana Earns $2.7 Million, or $0.34 per Diluted Share, in the Third Quarter of 2024; Declares Quarterly Cash Dividend of $0.1425 Per Share

    Source: GlobeNewswire (MIL-OSI)

    HELENA, Mont., Oct. 29, 2024 (GLOBE NEWSWIRE) — Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana (the “Bank”), today reported net income of $2.7 million, or $0.34 per diluted share, in the third quarter of 2024, compared to $1.7 million, or $0.22 per diluted share, in the preceding quarter, and $2.6 million, or $0.34 per diluted share, in the third quarter of 2023. In the first nine months of 2024, net income was $6.3 million, or $0.81 per diluted share, compared to $7.9 million, or $1.01 per diluted share, in the first nine months of 2023.

    Eagle’s board of directors declared a quarterly cash dividend of $0.1425 per share on October 17, 2024. The dividend will be payable December 6, 2024, to shareholders of record November 15, 2024. The current dividend represents an annualized yield of 3.49% based on recent market prices.

    “We produced improved top and bottom line operating results during the third quarter of 2024, with net interest income and noninterest income both increasing compared to the second quarter of 2024,” said Laura F. Clark, President and CEO. “As in previous quarters, we continued to remain selective on the loans we added during the quarter, while adhering to disciplined loan pricing. The result was tempered loan growth during the third quarter of 1.1%, and 4.0% year-over-year. Total deposits increased 2.0% during the quarter over the linked quarter, as we continue to maintain our attractive deposit mix. With our strong deposit franchise, pristine credit quality, and ample capital levels, we are well positioned for growth throughout the remainder of the year and into 2025.”

    Third Quarter 2024 Highlights (at or for the three-month period ended September 30, 2024, except where noted):

    • Net income was $2.7 million, or $0.34 per diluted share, in the third quarter of 2024, compared to $1.7 million, or $0.22 per diluted share, in the preceding quarter, and $2.6 million, or $0.34 per diluted share, in the third quarter a year ago.
    • Net interest margin (“NIM”) was 3.34% in the third quarter of 2024, a seven basis point contraction compared to 3.41% in the preceding quarter and the third quarter a year ago.
    • Revenues (net interest income before the provision for credit losses, plus noninterest income) were $20.8 million in the third quarter of 2024, compared to $19.9 million in the preceding quarter and $21.6 million in the third quarter a year ago.
    • The accretion of the loan purchase discount into loan interest income from acquisitions was $167,000 in the third quarter of 2024, compared to accretion on purchased loans from acquisitions of $304,000 in the preceding quarter.
    • Total loans increased 4.0% to $1.53 billion, at September 30, 2024, compared to $1.48 billion a year earlier, and increased 1.1% compared to $1.52 billion at June 30, 2024.
    • Total deposits increased $35.0 million or 2.2% to $1.65 billion at September 30, 2024, compared to a year earlier, and increased $31.6 million or 2.0%, compared to June 30, 2024.
    • The allowance for credit losses represented 1.12% of portfolio loans and 356.7% of nonperforming loans at September 30, 2024, compared to 1.10% of portfolio loans and 209.3% of nonperforming loans at September 30, 2023.
    • The Company’s available borrowing capacity was approximately $348.1 million at September 30, 2024.
            September 30, 2024
    (Dollars in thousands)     Borrowings Outstanding Remaining Borrowing Capacity
    Federal Home Loan Bank advances $ 219,167 $ 219,365
    Federal Reserve Bank discount window   –   28,734
    Correspondent bank lines of credit   –   100,000
    Total       $ 219,167 $ 348,099
               
    • The Company paid a quarterly cash dividend in the second quarter of $0.1425 per share on September 6, 2024, to shareholders of record August 16, 2024.

    Balance Sheet Results

    Eagle’s total assets increased 4.0% to $2.15 billion at September 30, 2024, compared to $2.06 billion a year ago, and increased 2.2% compared to $2.10 billion three months earlier. The investment securities portfolio totaled $307.0 million at September 30, 2024, compared to $308.8 million a year ago, and $306.9 million at June 30, 2024.

    Eagle originated $58.0 million in new residential mortgages during the quarter and sold $51.0 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.31%. This production compares to residential mortgage originations of $60.6 million in the preceding quarter with sales of $53.2 million and an average gross margin on sale of mortgage loans of approximately 3.01%. Mortgage volumes remain low as rates have continued to be elevated relative to rates on existing mortgages.

    Total loans increased $58.9 million, or 4.0%, compared to a year ago, and $17.2 million, or 1.1%, from three months earlier. Commercial real estate loans increased 5.2% to $644.0 million at September 30, 2024, compared to $612.0 million a year earlier. Commercial real estate loans were comprised of 69.3% non-owner occupied and 30.7% owner occupied at September 30, 2024. Agricultural and farmland loans increased 5.8% to $290.0 million at September 30, 2024, compared to $274.1 million a year earlier. Residential mortgage loans increased 6.7% to $156.8 million, compared to $146.9 million a year earlier. Commercial loans increased 10.2% to $143.2 million, compared to $130.0 million a year ago. Commercial construction and development loans decreased 17.3% to $125.3 million, compared to $151.6 million a year ago. Home equity loans increased 12.5% to $93.6 million, residential construction loans increased 8.5% to $52.2 million, and consumer loans decreased 1.3% to $29.4 million, compared to a year ago.

    “Our deposit mix continued to shift towards higher yielding deposits due to the higher interest rate environment. However, we anticipate deposit rates will continue to stabilize or improve following the recent Fed rate cuts,” said Miranda Spaulding, CFO.

    Total deposits increased to $1.65 billion at September 30, 2024, compared to $1.62 billion at September 30, 2023, and at June 30, 2024. Noninterest-bearing checking accounts represented 25.4%, interest-bearing checking accounts represented 12.7%, savings accounts represented 12.9%, money market accounts comprised 21.3% and time certificates of deposit made up 27.7% of the total deposit portfolio at September 30, 2024. Time certificates of deposit include $22.1 million in brokered certificates at September 30, 2024, compared to $40.0 million at September 30, 2023, and $26.2 million at June 30, 2024. The average cost of total deposits was 1.76% in the third quarter of 2024, compared to 1.70% in the preceding quarter and 1.28% in the third quarter of 2023. The estimated amount of uninsured deposits was approximately $307.0 million, or 18% of total deposits, at September 30, 2024, compared to $284.0 million, or 17% of total deposits, at June 30, 2024.

    Shareholders’ equity was $177.7 million at September 30, 2024, compared to $157.3 million a year earlier and $170.2 million three months earlier. Book value per share increased to $22.17 at September 30, 2024, compared to $19.69 a year earlier and $21.23 three months earlier. Tangible book value per share, a non-GAAP financial measure calculated by dividing shareholders’ equity, less goodwill and core deposit intangible, by common shares outstanding, was $17.23 at September 30, 2024, compared to $14.55 a year earlier and $16.25 three months earlier.  

    Operating Results

    “Our core NIM declined slightly during the third quarter, compared to the preceding quarter, due to relatively flat yields on interest earning assets and cost of funds expansion,” said Clark. “We anticipate continued stabilization and eventual improvement in our cost of funds as we continue through this rate cycle.”

    Eagle’s NIM was 3.34% in the third quarter of 2024, a seven basis point contraction compared to 3.41% in both the preceding quarter and the third quarter a year ago. The interest accretion on acquired loans totaled $167,000 and resulted in a three basis-point increase in the NIM during the third quarter of 2024, compared to $304,000 and a seven basis-point increase in the NIM during the preceding quarter. Funding costs for the third quarter of 2024 were 2.89%, compared to 2.78% in the second quarter of 2024 and 2.37% in the third quarter of 2023. Average yields on interest earning assets for the third quarter of 2024 increased to 5.66%, compared to 5.64% in the second quarter of 2024 and 5.27% in the third quarter a year ago. For the first nine months of 2024, the NIM was 3.36% compared to 3.57% for the first nine months of 2023.

    Net interest income, before the provision for credit losses, increased to $15.8 million in the third quarter of 2024, compared to $15.6 million in both the second quarter of 2024, and in the third quarter of 2023. Year-to-date, net interest income decreased 1.3% to $46.6 million, compared to $47.3 million in the same period one year earlier.

    Revenues for the third quarter of 2024 increased 4.4% to $20.8 million, compared to $19.9 million in the preceding quarter and decreased 3.9% compared to $21.6 million in the third quarter a year ago. In the first nine months of 2024, revenues were $59.9 million, compared to $64.2 million in the first nine months of 2023. The decrease compared to the first nine months a year ago was largely due to lower volumes in mortgage banking activity.

    Total noninterest income increased 16.7% to $5.0 million in the third quarter of 2024, compared to $4.3 million in the preceding quarter, and decreased 17.4% compared to $6.0 million in the third quarter a year ago. The increase from the preceding quarter was largely due to income from bank owned life insurance of $724,000. Net mortgage banking income, the largest component of noninterest income, totaled $2.6 million in the third quarter of 2024, compared to $2.4 million in the preceding quarter and $4.3 million in the third quarter a year ago. This decrease compared to the third quarter a year ago was largely driven by a decline in net gain on sale of mortgage loans. This was impacted by lower mortgage loan volumes. In the first nine months of 2024, noninterest income decreased 21.9% to $13.2 million, compared to $16.9 million in the first nine months of 2023. Net mortgage banking income decreased 36.0% to $7.2 million in the first nine months of 2024, compared to $11.3 million in the first nine months of 2023. These decreases were driven by a decline in net gain on sale of mortgage loans.

    Third quarter noninterest expense was $17.3 million, which was unchanged compared to the preceding quarter and a 3.4% decrease compared to $17.9 million in the third quarter a year ago. Lower salaries and employee benefits contributed to the decrease compared to the year ago quarter. In the first nine months of 2024, noninterest expense decreased 3.0% to $51.6 million, compared to $53.2 million in the first nine months of 2023.

    For the third quarter of 2024, the Company recorded income tax expense of $529,000. This compared to income tax expense of $444,000 in the preceding quarter and $524,000 in the third quarter of 2023. The effective tax rate for the third quarter of 2024 was 16.3%, compared to 16.6% for the third quarter of 2023. The year-to-date effective tax rate was 17.5% for 2024 compared to 19.5% for the same period in 2023.

    Credit Quality

    During the third quarter of 2024, Eagle recorded a provision for credit losses of $277,000. This compared to a $412,000 provision for credit losses in the preceding quarter and $588,000 in the third quarter a year ago. The allowance for credit losses represented 356.7% of nonperforming loans at September 30, 2024, compared to 330.8% three months earlier and 209.3% a year earlier. Nonperforming loans were $4.8 million at September 30, 2024, $5.1 million at June 30, 2024, and $7.8 million a year earlier.

    Net loan charge-offs totaled $17,000 in the third quarter of 2024, compared to net loan charge-offs of $2,000 in the preceding quarter and net loan charge-offs of $108,000 in the third quarter a year ago. The allowance for credit losses was $17.1 million, or 1.12% of total loans, at September 30, 2024, compared to $16.8 million, or 1.11% of total loans, at June 30, 2024, and $16.2 million, or 1.10% of total loans, a year ago.

    Capital Management

    The ratio of tangible common shareholders’ equity (shareholders’ equity, less goodwill and core deposit intangible) to tangible assets (total assets, less goodwill and core deposit intangible) was 6.56% at September 30, 2024, from 5.75% a year ago and 6.33% three months earlier. As of September 30, 2024, the Bank’s regulatory capital was in excess of all applicable regulatory requirements and is deemed well capitalized. The Bank’s Tier 1 capital to adjusted total average assets was 9.87% as of September 30, 2024.

    About the Company

    Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana, and is the holding company of Opportunity Bank of Montana, a community bank established in 1922 that serves consumers and small businesses in Montana through 29 banking offices. Additional information is available on the Bank’s website at www.opportunitybank.com. The shares of Eagle Bancorp Montana, Inc. are traded on the NASDAQ Global Market under the symbol “EBMT.”

    Forward Looking Statements

    This release may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and may be identified by the use of such words as “believe,” “will” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” These forward-looking statements include, but are not limited to statements of our goals, intentions and expectations; statements regarding our business plans, prospects, mergers, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. These factors include, but are not limited to, changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; general economic conditions and political events, either nationally or in our market areas, that are worse than expected including the ability of the U.S. Congress to increase the U.S. statutory debt limit, as needed, as well as the impact of the 2024 U.S. presidential election; the emergence or continuation of widespread health emergencies or pandemics including the magnitude and duration of the COVID-19 pandemic, including but not limited to vaccine efficacy and immunization rates, new variants, steps taken by governmental and other authorities to contain, mitigate and combat the pandemic, adverse effects on our employees, customers and third-party service providers, the increase in cyberattacks in the current work-from-home environment, the ultimate extent of the impacts on our business, financial position, results of operations, liquidity and prospects, continued deterioration in general business and economic conditions could adversely affect our revenues and the values of our assets and liabilities, lead to a tightening of credit and increase stock price volatility, and potential impairment charges; the impact of volatility in the U.S. banking industry, including the associated impact of any regulatory changes or other mitigation efforts taken by governmental agencies in response thereto; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on economic conditions and our business; an inability to access capital markets or maintain deposits or borrowing costs; competition among banks, financial holding companies and other traditional and non-traditional financial service providers; loan demand or residential and commercial real estate values in Montana; the concentration of our business in Montana; our ability to continue to increase and manage our commercial real estate, commercial business and agricultural loans; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, bank operations, consumer or employee litigation); inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets that lead to impairment in the value of our investment securities and goodwill; other economic, governmental, competitive, regulatory and technological factors that may affect our operations; our ability to implement new technologies and maintain secure and reliable technology systems including those that involve the Bank’s third-party vendors and service providers; cyber incidents, or theft or loss of Company or customer data or money; our ability to appropriately address social, environmental, and sustainability concerns that may arise from our business activities; the effect of our recent or future acquisitions, including the failure to achieve expected revenue growth and/or expense savings, the failure to effectively integrate their operations, the outcome of any legal proceedings and the diversion of management time on issues related to the integration.

    Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. All information set forth in this press release is current as of the date of this release and the company undertakes no duty or obligation to update this information.

    Use of Non-GAAP Financial Measures

    In addition to results presented in accordance with generally accepted accounting principles utilized in the United States, or GAAP, the Financial Ratios and Other Data contains non-GAAP financial measures. Non-GAAP financial measures include: 1) core efficiency ratio, 2) tangible book value per share and 3) tangible common equity to tangible assets. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and performance trends, and to enhance investors’ overall understanding of such financial performance. In particular, the use of tangible book value per share and tangible common equity to tangible assets is prevalent among banking regulators, investors and analysts.

    The numerator for the core efficiency ratio is calculated by subtracting acquisition costs and intangible asset amortization from noninterest expense. Tangible assets and tangible common shareholders’ equity are calculated by excluding intangible assets from assets and shareholders’ equity, respectively. For these financial measures, our intangible assets consist of goodwill and core deposit intangible. Tangible book value per share is calculated by dividing tangible common shareholders’ equity by the number of common shares outstanding. We believe that this measure is consistent with the capital treatment by our bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios and present this measure to facilitate the comparison of the quality and composition of our capital over time and in comparison, to our competitors.

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. Further, the non-GAAP financial measure of tangible book value per share should not be considered in isolation or as a substitute for book value per share or total shareholders’ equity determined in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Reconciliation of the GAAP and non-GAAP financial measures are presented below.

                   
    Balance Sheet              
    (Dollars in thousands, except per share data)       (Unaudited)  
                September 30, June 30, September 30,
                  2024     2024     2023  
                     
    Assets:              
      Cash and due from banks       $ 22,954   $ 22,361   $ 19,743  
      Interest bearing deposits in banks       19,035     1,401     1,040  
      Federal funds sold           200     –     –  
      Total cash and cash equivalents       42,189     23,762     20,783  
      Securities available-for-sale, at fair value       306,982     306,869     308,786  
      Federal Home Loan Bank (“FHLB”) stock       11,218     10,136     10,438  
      Federal Reserve Bank (“FRB”) stock       4,131     4,131     4,131  
      Mortgage loans held-for-sale, at fair value       13,429     10,518     17,880  
      Loans:              
      Real estate loans:            
      Residential 1-4 family         156,811     157,053     146,938  
      Residential 1-4 family construction       52,217     50,228     48,135  
      Commercial real estate         644,019     627,326     611,963  
      Commercial construction and development     125,323     137,427     151,614  
      Farmland           145,356     142,353     143,789  
      Other loans:              
      Home equity           93,646     93,213     83,221  
      Consumer           29,445     29,118     29,832  
      Commercial           143,190     143,641     129,952  
      Agricultural           144,645     137,134     130,329  
      Total loans           1,534,652     1,517,493     1,475,773  
      Allowance for credit losses         (17,130 )   (16,830 )   (16,230 )
      Net loans           1,517,522     1,500,663     1,459,543  
      Accrued interest and dividends receivable       14,844     13,195     13,657  
      Mortgage servicing rights, net         15,443     15,614     15,738  
      Assets held-for-sale, at cost         257     257     –  
      Premises and equipment, net         100,297     98,397     92,979  
      Cash surrender value of life insurance, net       52,852     48,529     47,647  
      Goodwill           34,740     34,740     34,740  
      Core deposit intangible, net         4,834     5,168     6,264  
      Other assets           26,375     26,976     30,478  
      Total assets         $ 2,145,113   $ 2,098,955   $ 2,063,064  
                     
    Liabilities:              
      Deposit accounts:              
      Noninterest bearing       $ 419,760   $ 400,113   $ 435,655  
      Interest bearing           1,230,752     1,218,752     1,179,823  
      Total deposits         1,650,512     1,618,865     1,615,478  
      Accrued expenses and other liabilities       38,593     35,804     31,597  
      FHLB advances and other borrowings       219,167     215,050     199,757  
      Other long-term debt, net         59,111     59,074     58,962  
      Total liabilities         1,967,383     1,928,793     1,905,794  
                     
    Shareholders’ Equity:              
      Preferred stock (par value $0.01 per share; 1,000,000 shares      
      authorized; no shares issued or outstanding)     –     –     –  
      Common stock (par value $0.01; 20,000,000 shares authorized;      
      8,507,429 shares issued; 8,016,784, 8,016,784 and 7,988,132      
      shares outstanding at September 30, 2024, June 30, 2024 and      
      September 30, 2023, respectively       85     85     85  
      Additional paid-in capital         109,040     108,962     109,422  
      Unallocated common stock held by Employee Stock Ownership Plan   (4,154 )   (4,297 )   (4,727 )
      Treasury stock, at cost (490,645, 490,645 and 519,297 shares at      
      September 30, 2024, June 30, 2024 and September 30, 2023, respectively)           (11,124 )   (11,124 )   (11,574 )
      Retained earnings           98,979     97,413     94,979  
      Accumulated other comprehensive loss, net of tax     (15,096 )   (20,877 )   (30,915 )
      Total shareholders’ equity       177,730     170,162     157,270  
      Total liabilities and shareholders’ equity   $ 2,145,113   $ 2,098,955   $ 2,063,064  
                     
    Income Statement      (Unaudited)   (Unaudited)
    (Dollars in thousands, except per share data)     Three Months Ended   Nine Months Ended
                  September 30, June 30, September 30,   September 30,
                    2024   2024   2023     2024   2023  
    Interest and dividend income:                
      Interest and fees on loans     $ 23,802 $ 22,782 $ 21,068   $ 68,526 $ 57,942  
      Securities available-for-sale       2,598   2,631   2,794     7,953   8,586  
      FRB and FHLB dividends       266   264   212     777   480  
      Other interest income       94   145   20     268   66  
        Total interest and dividend income       26,760   25,822   24,094     77,524   67,074  
    Interest expense:                  
      Interest expense on deposits       7,190   6,884   5,152     20,622   11,767  
      FHLB advances and other borrowings       3,084   2,625   2,672     8,206   5,993  
      Other long-term debt       684   681   683     2,048   2,035  
        Total interest expense       10,958   10,190   8,507     30,876   19,795  
    Net interest income         15,802   15,632   15,587     46,648   47,279  
    Provision for credit losses       277   412   588     554   1,186  
        Net interest income after provision for credit losses     15,525   15,220   14,999     46,094   46,093  
                             
    Noninterest income:                
      Service charges on deposit accounts       430   428   447     1,258   1,313  
      Mortgage banking, net       2,602   2,417   4,338     7,196   11,252  
      Interchange and ATM fees       662   640   643     1,865   1,861  
      Appreciation in cash surrender value of life insurance     1,038   320   382     1,646   1,165  
      Net loss on sale of available-for-sale securities       –   –   –     –   (222 )
      Other noninterest income       251   464   225     1,239   1,541  
        Total noninterest income       4,983   4,269   6,035     13,204   16,910  
                             
    Noninterest expense:                
      Salaries and employee benefits       9,894   10,273   10,837     29,885   31,614  
      Occupancy and equipment expense       2,134   2,104   1,956     6,337   6,100  
      Data processing       1,587   1,382   1,486     4,494   4,270  
      Advertising         277   316   340     846   930  
      Amortization         337   348   386     1,054   1,201  
      Loan costs         385   412   517     1,195   1,426  
      FDIC insurance premiums       295   284   301     878   862  
      Professional and examination fees       438   423   408     1,345   1,484  
      Other noninterest expense       1,923   1,765   1,644     5,576   5,311  
        Total noninterest expense       17,270   17,307   17,875     51,610   53,198  
                             
    Income before provision for income taxes       3,238   2,182   3,159     7,688   9,805  
    Provision for income taxes       529   444   524     1,343   1,913  
    Net income         $ 2,709 $ 1,738 $ 2,635   $ 6,345 $ 7,892  
                             
    Basic earnings per common share     $ 0.35 $ 0.22 $ 0.34   $ 0.81 $ 1.01  
    Diluted earnings per common share     $ 0.34 $ 0.22 $ 0.34   $ 0.81 $ 1.01  
                             
    Basic weighted average shares outstanding       7,836,921   7,830,925   7,784,279     7,830,947   7,787,987  
                             
    Diluted weighted average shares outstanding       7,860,138   7,845,272   7,791,966     7,848,196   7,792,593  
                             
    ADDITIONAL FINANCIAL INFORMATION   (Unaudited)  
    (Dollars in thousands, except per share data) Three or Nine Months Ended
          September 30, June 30, September 30,
            2024     2024     2023  
               
    Mortgage Banking Activity (For the quarter):      
      Net gain on sale of mortgage loans $ 1,691   $ 1,600   $ 3,591  
      Net change in fair value of loans held-for-sale and derivatives   159     12     (71 )
      Mortgage servicing income, net   752     805     818  
      Mortgage banking, net   $ 2,602   $ 2,417   $ 4,338  
               
    Mortgage Banking Activity (Year-to-date):      
      Net gain on sale of mortgage loans $ 4,705     $ 8,551  
      Net change in fair value of loans held-for-sale and derivatives   (2 )     234  
      Mortgage servicing income, net   2,493       2,467  
      Mortgage banking, net   $ 7,196     $ 11,252  
               
    Performance Ratios (For the quarter):      
      Return on average assets   0.51 %   0.33 %   0.51 %
      Return on average equity   6.56 %   4.30 %   6.63 %
      Yield on average interest earning assets   5.66 %   5.64 %   5.27 %
      Cost of funds     2.89 %   2.78 %   2.37 %
      Net interest margin   3.34 %   3.41 %   3.41 %
      Core efficiency ratio*   81.47 %   85.22 %   80.89 %
               
    Performance Ratios (Year-to-date):      
      Return on average assets   0.41 %     0.53 %
      Return on average equity   5.19 %     6.54 %
      Yield on average interest earning assets   5.59 %     5.07 %
      Cost of funds     2.78 %     1.94 %
      Net interest margin   3.36 %     3.57 %
      Core efficiency ratio*   84.47 %     81.01 %
               
    * The core efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of acquisition
    costs and intangible asset amortization, by the sum of net interest income and non-interest income.    
               
               
    ADDITIONAL FINANCIAL INFORMATION      
    (Dollars in thousands, except per share data)      
            (Unaudited)  
    Asset Quality Ratios and Data: As of or for the Three Months Ended
          September 30, June 30, September 30,
            2024     2024     2023  
               
      Nonaccrual loans   $ 3,859   $ 4,012   $ 7,753  
      Loans 90 days past due and still accruing   944     1,076     –  
      Total nonperforming loans     4,803     5,088     7,753  
      Other real estate owned and other repossessed assets   4     4     –  
      Total nonperforming assets   $ 4,807   $ 5,092   $ 7,753  
               
      Nonperforming loans / portfolio loans   0.31 %   0.34 %   0.53 %
      Nonperforming assets / assets   0.22 %   0.24 %   0.38 %
      Allowance for credit losses / portfolio loans   1.12 %   1.11 %   1.10 %
      Allowance for credit losses/ nonperforming loans   356.65 %   330.78 %   209.34 %
      Gross loan charge-offs for the quarter $ 22   $ 12   $ 122  
      Gross loan recoveries for the quarter $ 5   $ 10   $ 14  
      Net loan charge-offs for the quarter $ 17   $ 2   $ 108  
               
               
          September 30, June 30, September 30,
            2024     2024     2023  
    Capital Data (At quarter end):      
      Common shareholders’ equity (book value) per share $ 22.17   $ 21.23   $ 19.69  
      Tangible book value per share** $ 17.23   $ 16.25   $ 14.55  
      Shares outstanding   8,016,784     8,016,784     7,988,132  
      Tangible common equity to tangible assets***   6.56 %   6.33 %   5.75 %
               
    Other Information:        
      Average investment securities for the quarter $ 305,730   $ 306,207   $ 319,308  
      Average investment securities year-to-date $ 308,688   $ 310,168   $ 335,898  
      Average loans for the quarter **** $ 1,547,246   $ 1,513,313   $ 1,476,584  
      Average loans year-to-date **** $ 1,519,951   $ 1,506,303   $ 1,417,291  
      Average earning assets for the quarter $ 1,874,669   $ 1,837,418   $ 1,812,610  
      Average earning assets year-to-date $ 1,847,468   $ 1,833,867   $ 1,768,361  
      Average total assets for the quarter $ 2,116,839   $ 2,077,448   $ 2,052,443  
      Average total assets year-to-date $ 2,086,951   $ 2,072,013   $ 1,999,864  
      Average deposits for the quarter $ 1,622,254   $ 1,625,882   $ 1,602,770  
      Average deposits year-to-date $ 1,624,936   $ 1,625,826   $ 1,596,201  
      Average equity for the quarter $ 165,162   $ 161,533   $ 158,933  
      Average equity year-to-date $ 163,106   $ 162,084   $ 160,917  
               
    ** The tangible book value per share is a non-GAAP ratio that is calculated by dividing shareholders’ equity,  
    less goodwill and core deposit intangible, by common shares outstanding.      
    *** The tangible common equity to tangible assets is a non-GAAP ratio that is calculated by dividing shareholders’  
    equity, less goodwill and core deposit intangible, by total assets, less goodwill and core deposit intangible.  
    **** Includes loans held for sale      
           
    Reconciliation of Non-GAAP Financial Measures              
                           
    Core Efficiency Ratio     (Unaudited)     (Unaudited)  
    (Dollars in thousands)   Three Months Ended   Nine Months Ended  
              September 30, June 30, September 30,   September 30,  
                2024     2024     2023       2024     2023    
    Calculation of Core Efficiency Ratio:              
      Noninterest expense $ 17,270   $ 17,307   $ 17,875     $ 51,610   $ 53,198    
      Intangible asset amortization   (337 )   (348 )   (386 )     (1,054 )   (1,201 )  
        Core efficiency ratio numerator   16,933     16,959     17,489       50,556     51,997    
                           
      Net interest income   15,802     15,632     15,587       46,648     47,279    
      Noninterest income   4,983     4,269     6,035       13,204     16,910    
        Core efficiency ratio denominator   20,785     19,901     21,622       59,852     64,189    
                           
      Core efficiency ratio (non-GAAP)   81.47 %   85.22 %   80.89 %     84.47 %   81.01 %  
                           
    Tangible Book Value and Tangible Assets   (Unaudited)
    (Dollars in thousands, except per share data)   September 30, June 30, September 30,
                  2024     2024     2023  
    Tangible Book Value:            
      Shareholders’ equity     $ 177,730   $ 170,162   $ 157,270  
      Goodwill and core deposit intangible, net     (39,574 )   (39,908 )   (41,004 )
        Tangible common shareholders’ equity (non-GAAP) $ 138,156   $ 130,254   $ 116,266  
                     
      Common shares outstanding at end of period   8,016,784     8,016,784     7,988,132  
                     
      Common shareholders’ equity (book value) per share (GAAP) $ 22.17   $ 21.23   $ 19.69  
                     
      Tangible common shareholders’ equity (tangible book value)      
        per share (non-GAAP)     $ 17.23   $ 16.25   $ 14.55  
                     
    Tangible Assets:            
      Total assets       $ 2,145,113   $ 2,098,955   $ 2,063,064  
      Goodwill and core deposit intangible, net     (39,574 )   (39,908 )   (41,004 )
        Tangible assets (non-GAAP)   $ 2,105,539   $ 2,059,047   $ 2,022,060  
                     
      Tangible common shareholders’ equity to tangible assets      
        (non-GAAP)         6.56 %   6.33 %   5.75 %
                     
    Contacts: Laura F. Clark, President and CEO
      (406) 457-4007
      Miranda J. Spaulding, SVP and CFO
      (406) 441-5010  

    The MIL Network –

    January 25, 2025

  • MIL-OSI: AutoScheduler Adds Vice President of Customer Success to Reinforce Focus on Successful Customer Implementations

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas, Oct. 29, 2024 (GLOBE NEWSWIRE) — AutoScheduler.AI, an innovative Warehouse Orchestration Platform and WMS accelerator, announces that Ian Johnston has joined the company as the Vice President of Customer Success. He will replace Stephen Zujkowski, who is retiring. Ian has over a decade of experience in supply chain operations, logistics management, and strategic leadership. He will use his expertise to help AutoScheduler’s customers gain value and success from deploying AutoScheduler solutions. He will be the face of success for all AutoScheduler’s customers, ensuring the talented implementation team continues delivering exceptional services and fostering true partnerships.

    “As a leader within Amazon, Ian has demonstrated a deep understanding of operational planning and championed many technology implementations that enabled transformative changes within numerous operations,” says Keith Moore, CEO of AutoScheduler.AI. “His rich and diverse experience in leading and supporting innovation and a keen understanding of driving customer excellence make him a perfect fit for this pivotal role at AutoScheduler.AI.”

    “I am looking forward to setting new benchmarks for excellence in customer success with the best project delivery experiences, clear communications, and robust customer relationships, enabling AutoScheduler.AI to be the market leader in warehouse orchestration,” says Ian Johnston, Vice President, Customer Success, AutoScheduler.AI. “I am dedicated to driving value for clients through our innovative solutions and aligning AutoScheduler’s capabilities with customer needs.”

    As Vice President of Customer Success, Ian oversees the strategy, execution, and management of all aspects of customer deployment and satisfaction. He will ensure that customers derive maximum value from AutoScheduler, leading to improved fulfillment, better labor utilization, and lower costs. As the leader in the Customer Success organization, he will drive measurable positive business outcomes, customer satisfaction, retention, and expansion across the customer base.

    Before joining AutoScheduler.AI, Ian served as Director of Supply Chain at Amazon, overseeing North America’s largest heavy bulky logistics network, which included managing demand forecasting, capacity management, and product development for the U.S. and Canada. Ian’s leadership contributed to significant advancements in operational efficiency, including the development of several novel planning products that enhanced forecast accuracy and capacity flexibility, reducing Amazon’s cost to serve and improving delivery speeds. Prior to Amazon, Ian served as a Marine Infantry Officer, where he led combat operations in Afghanistan and deterrence operations in Southeast Asia. He later served at the White House, supporting two administrations and several high-profile events.

    Ian holds an MBA from the University of Virginia’s Darden School of Business, a BA in Political Science with a minor in Spanish from The Citadel, and is actively pursuing a Master of Science in Real Estate at the University of San Diego.

    About AutoScheduler.AI
    AutoScheduler.AI orchestrates warehouse activities directly on top of your WMS, optimizing operations for peak performance. Developed alongside industry leaders like P&G and successfully deployed at prominent companies such as Pepsi, General Mills, and Unilever, our AI and Machine Learning platform seamlessly integrates with your existing systems. Focused on labor planning, inventory workflow, human-robotics interaction, and space utilization, we streamline operations, reducing travel and inventory handling while maximizing OTIF rates and labor efficiency. With prescriptive analytics driving insights, our clients harness the power to enhance efficiencies and generate value across their supply chains. Reach out to us at info@autoscheduler.ai for more information.

    Contact:
    Becky Boyd
    MediaFirst PR
    Becky@MediaFirst.Net
    Cell: (404) 421-8497

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/199e4f06-1419-40e1-8665-b27f4eb199cd

    The MIL Network –

    January 25, 2025

  • MIL-OSI: New CINQ by Coinstar™ Digital Wallet Launches Crypto and Stablecoin Capabilities Powered by Zero Hash

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Oct. 29, 2024 (GLOBE NEWSWIRE) — Zero Hash, the leading crypto and stablecoin infrastructure platform, today announced its partnership with Coinstar®, LLC, a global financial services leader, to embed crypto payments capabilities within CINQ by Coinstar™, a new digital wallet designed to expand how consumers use and manage their finances. This collaboration allows up to 9,500 of Coinstar’s 17,000+ network of kiosks across the U.S. to facilitate cash-to-crypto transactions.

    Through a partnership with Zero Hash, CINQ by Coinstar has launched with the initial ability to purchase cryptocurrency and stablecoins with cash at more than 9,500 Coinstar kiosks across the U.S., or through the CINQ by Coinstar mobile app. Users of the CINQ by Coinstar app, powered by Zero Hash, can seamlessly move in, out and between cash, stablecoins and crypto. A broader range of digital payment services for the CINQ by Coinstar wallet are expected to follow in 2025 as recently announced by Coinstar.

    The overarching objective of the partnership is to provide a seamless mechanism of dollar digitalization to the large percentage of underbanked and underserved households within the United States. Specifically: 

    • The unbanked who now have access to an electronic cash account
      • 6% of Adult Americans are unbanked; 24.6 million Americans are underbanked (Source: Fed Reserve, 2024)
    • The immigrant remitting money home
      • About half of all remittances are cash-based among the most common users (Source: Visa, 2023)

    “Zero Hash is delighted to partner with Coinstar, a household brand in money transformation for more than 30 years. Its vast network of self-serve kiosks and mobile apps will help further expand access to the underbanked and immigrants looking to remit funds. Upwards of 50% of remittances are cash-based and the multiple “hops” in remittance often mean these transfers incur high fees. Linking this cash infrastructure to the “network of networks” which is crypto and stablecoins, provides a key unlock for cheaper and quicker remittances for example,” said Edward Woodford, CEO and Founder at Zero Hash. “ CINQ by Coinstar has been able to seamlessly embed our regulatory compliant infrastructure to support new ways for cash-preferred customers to move safely and seamlessly between fiat and crypto use cases.”

    Powered by Zero Hash’s identity verification service, every customer is validated before cash can be entered into the kiosk for crypto, stablecoin and fiat transactions. Additional controls include Documentary Verification and Liveness Verification before certain services may be enabled. Users can buy over 25 crypto and stablecoin assets with paper currency at Coinstar kiosks in major grocery stores across North America as well as through the CINQ by Coinstar mobile app. Users can also connect multiple bank accounts, with Zero Hash’s platform facilitating USD deposits via ACH, allowing users to hold balances in cash or crypto and easily manage their financial needs.

    “Zero Hash has been an incredible partner in helping us extend our trusted services into the digital world,” said Kevin McColly, CEO of Coinstar. “Their secure and industry leading crypto and stablecoin infrastructure has allowed us to seamlessly bridge the gap between cash and cryptocurrency, making it easier for our customers to access and manage their finances.” 

    There are two ways to get started buying cryptocurrency through Zero Hash at Coinstar kiosks:

    1. Download the CINQ by Coinstar app, verify your account and visit a Coinstar kiosk with your cash. Or connect your bank account in the app and get started immediately.
    2. Visit a Coinstar kiosk, select cryptocurrency from the options and choose CINQ by Coinstar to get started with your crypto purchase through Zero Hash. Enter your mobile number at the kiosk and last 4 SSN or Date of Birth, then download the CINQ by Coinstar app and complete your account setup.

    To learn more about CINQ by Coinstar and follow along for additional product innovations, visit www.cinqwallet.com, or to find a CINQ by Coinstar enabled kiosk, visit our kiosk finder here.1 

    1: The CINQ by Coinstar wallet is available in all 50 states. However, Zero Hash enabled Kiosks are not currently available in all states, including the state of New York.  Transactional limits may also apply.

    About Zero Hash  
    Zero Hash is the leading crypto and stablecoin infrastructure provider that seamlessly connects fiat, crypto and stablecoins in one platform, enabling a better way to move and transfer money and value globally.

    Through its embeddable infrastructure, start-ups, enterprises and Fortune 500 companies build a diverse range of use cases: cross-border payments, commerce, trading, remittance, payroll, tokenization, wallets and on and off-ramps.

    Zero Hash Holdings is backed by investors, including Point72 Ventures, Bain Capital Ventures, and NYCA.

    Zero Hash LLC is a FinCen-registered Money Service Business and a regulated Money Transmitter that can operate in 51 US jurisdictions. Zero Hash LLC and Zero Hash Liquidity Services LLC are licensed to engage in virtual currency business activity by the New York State Department of Financial Services. In Canada, Zero Hash LLC is registered as a Money Service Business with FINTRAC.

    Zero Hash Australia Pty Ltd. is registered with AUSTRAC as a Digital Currency Exchange Provider, with DCE registered provider number DCE100804170-001.  This registration enables Zero Hash to offer its crypto services in Australia.  Zero Hash Australia Pty Ltd. is registered on the New Zealand register of financial service providers, with Financial Service Provider (FSP)  number FSP1004503.  A FSP in New Zealand is a registration and does not mean that Zero Hash Australia Pty Ltd. is licensed by a New Zealand regulator to provide crypto services.  Zero Hash Australia Pty Ltd.’s registration on the New Zealand register of financial service providers does not mean that Zero Hash Australia is subject to active regulation or oversight by a New Zealand regulator.  Zero Hash Europe B.V. is registered as a Virtual Asset Services Provider (VASP) registration by the Dutch Central Bank (Relation number: R193684).  Zero Hash Europe Sp. Zoo is registered as a VASP by the Tax Administration Chamber of Poland in Katowice (Registration number RDWW – 1212).

    Connect with Zero Hash
    Website | Twitter | LinkedIn | Medium

    Zero Hash Contact

    Shaun O’keeffe

    (855) 744-7333

    media@zerohash.com

    Zero Hash Disclosures
    Zero Hash services and product offerings, including the availability of kiosk services, may not be available in all jurisdictions. Zero Hash accounts are not subject to FDIC or SIPC protections, or any such equivalent protections that may exist outside of the US. Zero Hash’s technical support and enablement of any asset is not an endorsement of such asset and is not a recommendation to buy, sell, or hold any crypto asset. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero. Zero Hash is not registered with the SEC or FINRA. Zero Hash does not provide any securities services and is not a custodian of securities, including security tokens, on behalf of customers. 

    About Coinstar, LLC
    Coinstar® is a global leader in money transformation and the largest physical self-serve financial network with a digital wallet, CINQ by Coinstar. Through its digital wallet, mobile app and network of 24,000 kiosks in North America and Europe, Coinstar offers a wide range of financial services which enable users to transform their physical currency. Its reliable payment solutions offer one-stop shopping experiences at convenient kiosk locations including coin conversion to cash, NO FEE eGift cards and charitable donations as well as account transfer services powered by our bank partners. Users can also move money and transact more seamlessly in the digital world through CINQ by Coinstar with the ability to buy, sell and transfer cryptocurrencies in its initial rollout. For brand advertisers, Coinstar offers adPlanet™ Retail Media Group, which enables lead generation on the interactive kiosk screen and a digital out of home network that delivers advertising via high-definition screens on top of Coinstar kiosks at select retail and grocery locations. For more information on Coinstar, visit www.coinstar.com.

    The MIL Network –

    January 25, 2025

  • MIL-OSI Economics: A test of resolve: credible resolution following the 2023 banking turmoil

    Source: Bank for International Settlements

    Introduction

    I would like to welcome you all to the Resolution Conference 2024, the first that has been co-organised by the BIS Financial Stability Institute (FSI), the Financial Stability Board (FSB) and the International Association of Deposit Insurers (IADI). This event is motivated by the banking turmoil in March 2023. The 18 months that have passed since those events have given time to reflect seriously on it and derive some lessons. This conference provides an opportunity to take stock, compare notes and try to identify a productive way forward.

    Scene-setting

    It is now commonplace to say that the March 2023 failures of several US regional banks, followed a week later by the near failure of Credit Suisse, were the first meaningful test of the international resolution framework that was put in place following the Great Financial Crisis (GFC).

    The headline message is that large bank failures did not lead to a systemic crisis. Authorities managed them in an orderly manner with no ultimate loss to public funds. Creditors and shareholders bore losses. In the case of Credit Suisse, there was a significant writedown of loss-absorbing instruments. This is a noteworthy achievement, and stands in stark contrast to the GFC.

    The extensive work to put in place cross-border cooperative arrangements has demonstrably strengthened the financial system. The outcomes might have been very different without the planning and coordination that took place between home and host authorities, and the understanding and trust that have been developed.

    However, work remains to be done. The reports published last year by the FSB and IADI set out lessons learned for resolution and deposit insurance.1 They include the risk of faster failures, accelerated by digital technologies; the scope of resolution planning and requirements for loss-absorbing capacity (LAC); and flexibility in resolution strategies. Other reports, including by the Basel Committee on Banking Supervision, elaborate on the supervisory shortcomings and the vulnerabilities arising from large quantities of uninsured deposits. Work on all these issues is ongoing.

    In any case, I would like to concentrate my remarks on two elements of the bank resolution framework that I think must be tackled as we go forward. The first is the power to bail-in creditors as a key element of resolution strategies. The second is the need to put in place effective facilities for providing liquidity in resolution. The events of March 2023 highlighted the importance of both. They are also among the elements of a resolution framework that are most challenging to implement.

    The credibility of bail-in

    Bail-in powers are core to the resolution framework adopted after the GFC. Bail-in allows a systemically important bank to be recapitalised without the need to find a buyer for its business or to split up its operations, at least in the short term. Appropriate liabilities absorb losses without putting a failing bank into insolvency. Crucially, it is designed to ensure that a bank’s owners and investors, rather than depositors or taxpayers, bear the costs of resolution costs.

    In practice, a bail-in is a highly complex transaction involving multiple parties, and a huge amount of work has been carried out on how to execute it. A typical bail-in would involve multiple valuations; a mechanism to write down and cancel instruments, which are likely to be traded; and the issuance of new shares to the bailed-in debt holders. The process has been mapped out in detail by resolution authorities. However, a full bail-in strategy remains untested.

    Credit Suisse had a resolution strategy based on bail-in, and FINMA and key host authorities had prepared extensively to execute that strategy.

    In the end, the Swiss authorities chose not to follow the resolution playbook because they had another option that achieved their objectives: a state-brokered commercial merger of Credit Suisse and UBS. Nevertheless, the contractual writedown of all the outstanding Additional Tier 1 (AT1) capital instruments issued by Credit Suisse was a key element of the transaction. The writedown extinguished liabilities amounting to CHF 16 billion from the bank’s balance sheet.2

    Although the writedown was more limited than that planned under the full bail-in strategy for Credit Suisse, it demonstrates that bail-in is a core instrument in the crisis management framework. Contrary to what some commentators have feared, a substantial debt writedown is possible and can be executed without significant systemic disruption.

    Nevertheless, there are a few lessons to draw from this to reinforce that bail-in is credible and feasible.

    Flexible resolution toolkits

    First, authorities need flexibility. Planning is essential, but it cannot be prescriptive. We cannot know with absolute confidence in advance how a failure will happen and what actions will best safeguard financial stability. Accordingly, authorities need options so that they can shape their response to the circumstances of a failure. This implies a toolkit approach under which authorities can combine the use of different tools.

    The Credit Suisse transaction demonstrated that, even in the case of a global systemically important bank (G-SIB), bail-in may not be an exclusive strategy, but debt writedown could be a core element. Moreover, bail-in is not a tool exclusively for G-SIBs. For other banks, the writedown of liabilities in resolution can finance transfers of business and reduce the demands on industry-funded sources such as deposit insurance funds.

    Flexibility of this kind brings operational complexities. A toolbox approach means that authorities and firms need to accommodate different options in resolution planning. Banks will need the systems and capabilities to support those options. Key aspects of resolvability such as structure and LAC may become even more complex. However, an effective toolbox approach will further reduce the residual risk that public funds will be needed in crisis management.

    Loss-absorbing capacity

    Second, for bail-in to be credible banks must have liabilities that can be written down with legal certainty and without systemic impact. The FSB’s TLAC standard ensures this for G-SIBs. Some jurisdictions have extended similar requirements for LAC to other banks that could be systemic in failure.

    For example, the EU requirement for resolution-related LAC, the minimum requirement for own funds and eligible liabilities (MREL) – applies to all banks. The amount above the regulatory minimum required for individual banks is based on their resolution strategy. It aims to ensure that any bank that is expected to be resolved rather than wound up maintains LAC in sufficient quantity and quality to absorb losses and recapitalise it in resolution.

    The US financial regulators have consulted on a proposal to require banks with $100 billion or more in assets to maintain a layer of long-term debt. This additional LAC would be used, in the event of a bank’s failure, to absorb losses and increase the resolution options. It should also foster depositor confidence among uninsured deposits.

    The three US regional banks that failed in 2023 had little or no outstanding long-term debt. It has been observed elsewhere that if the proposed requirement had applied to Silicon Valley Bank and Signature Bank, they might have been resolved within the FDIC’s normal funding constraints, without a systemic risk exception being required.3

    If bail-in is to help fund resolution transfers, there need to be instruments that can be written down. The amounts are lower than that needed to recapitalise the bank and finance restructuring in a “pure” bail-in. Nevertheless, calibrating those requirements may be challenging.

    Moreover, meeting LAC requirements should not put banks’ legitimate business models in jeopardy. This is particularly relevant for banks that are predominantly deposit funded. A pragmatic way to alleviate the challenges for those banks is to take account of the resolution funding available from external sources, such as deposit insurance or resolution funds, when setting LAC requirements.4

    Liquidity for crisis management

    Let me turn now to liquidity for crisis management. Resolution powers can recapitalise a failing bank through bail-in. However, capital is not enough on its own. Without liquidity, the resolution will fail.

    Market funding will almost certainly not be available to a bank following its resolution until counterparty confidence can be restored. Resolution frameworks therefore require a credible source of liquidity, at the necessary scale and for a sufficient period of time to allow a resolved firm to return to market-based funding.

    This is recognised by the FSB, which has published two sets of guidance on funding in resolution. However, the arrangements in place vary considerably across jurisdictions and in many cases are not designed for the resolution needs of systemically important banks.

    The liquidity arrangements that were needed in the case of Credit Suisse support this point. The Swiss government had been working on a public liquidity backstop, but this was not yet in place in March 2023. Accordingly, the authorities had to adopt emergency legislation to enable the Swiss National Bank (SNB) to provide a liquidity facility of up to CHF 200 billion. Part of that lending was uncollateralised and coupled with a privileged bankruptcy status for the SNB and part was backed by a guarantee from the Swiss state.

    This case illustrates that ordinary central bank lending arrangements, including emergency liquidity assistance, may not be sufficient for resolution. The amount of liquidity needed by a systemically important bank will be considerable and required over an extended period. Moreover, lending may need to be secured against a wider range of assets or, in extreme circumstances, be uncollateralised. Arrangements for resolution funding must meet these needs. This implies a fiscal backstop to increase the firepower where that is needed.

    A fiscal backstop might appear to introduce a risk to public funds, something that the framework for ending “too big to fail” was designed to avoid. But the risks of loss to public funds should be low. It’s worth noting that all lending in relation to Credit Suisse was repaid, and no losses were incurred by the SNB or the Swiss state under its indemnity. If resolution is effective, the bank will be viable and the borrowing should be repaid.

    Concluding remarks

    I will end where I began. Financial crises provide a good opportunity to identify flaws or shortcomings in the policy framework. The March 2023 banking turmoil was the most significant banking crisis since the GFC and the subsequent policy reforms. Therefore, we should grasp this opportunity to draw lessons.

    Overall, authorities managed to preserve financial stability. In Switzerland, that was accomplished, despite the failure of a G-SIB, without any cost to the taxpayer. This was a remarkable achievement, and the resolution framework developed after the GFC contributed to that.

    But we also need to take note of the obstacles encountered in the process. In particular, it is clear that maximising the potential of bail-in and the provision of liquidity in resolution are pending tasks that need to be addressed.

    Work to do that is ongoing, and this conference is a small but significant part of that process. I am delighted that so many people have come to Basel to participate, and I expect productive discussions during the day.

    MIL OSI Economics –

    January 25, 2025
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