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  • MIL-OSI United Nations: Experts of the Committee on the Rights of the Child Praise Ecuador’s Social Expenditure for Children, Ask about December 2024 Child Murders and Excessive Use of Force against Child Demonstrators

    Source: United Nations – Geneva

    The Committee on the Rights of the Child today concluded its consideration of the seventh periodic report of Ecuador, with Committee Experts praising the State’s social expenditure for children and adolescents, and raising questions about the murder of four children in December 2024 and excessive use of force against child demonstrators by the police.

    Mary Beloff, Committee Expert and Coordinator of the Country Taskforce for Ecuador, praised the efforts made by the country to enhance social expenditure aimed at children and adolescents.  She said it was a pleasure to hear the focus being placed on resource allocation to guarantee rights in early childhood.

    However, she said the examination was marked by the atrocious events that took place in Guayaquil in December 2024, related to the illegal detention, forced disappearance and subsequent murder of four children.  Investigating the social conditions that led to these events was an essential part of the Committee’s work.

    Velina Todorova, Committee Expert and Taskforce Member, said that in October 2019, in the context of the national strike, the personal integrity of at least 12 children was severely impacted by the public forces.  During the June 2022 strike, violence was also used against children. How was the State safeguarding the rights of children to freedom of assembly?

    Marcelo Vázquez Bermúdez, Permanent Representative of Ecuador to the United Nations Office at Geneva, presenting the report, said Ecuador had several cash transfers for social protection for children or adolescents in situations of poverty and vulnerability, including the human development bonus, the Joaquín Gallegos Lara bonus, and the lifetime pension.

    The murder of four minors in December 2024 had profoundly shocked the Government and the people of Ecuador, the delegation said. The Ecuadorian State had acted immediately following these events and had been carrying out due actions to investigate and punish the perpetrators.  Investigations had begun and 16 members of the armed forces were now in pretrial detention.

    Measures had been taken to prevent cases of excessive use of force by the police against children from reoccurring, the delegation said. Institutional guidelines had been developed to protect the rights of citizens involved in demonstrations, and an organic law regulating the legitimate use of force had been developed and disseminated.  The State party recognised that all children and adolescents had the right to protest peacefully.

    In closing remarks, Ms. Beloff said that the dialogue had provided insight on the issues faced by Ecuador and areas that needed to be focused on in public policies.  The Committee hoped that the State party would be able to achieve its goals for the benefit of all Ecuadorian children.

    Zaida Rovira, Minister of Economic and Social Inclusion of Ecuador, in concluding remarks, said that the State party was committed to taking on its challenges by increasing the budget for children, and developing robust standards and laws and an institutional system with sufficiently trained staff.  The topics discussed in the dialogue would inform the State’s future efforts for children and adolescents.

    The delegation of Ecuador consisted of representatives from the Ministry of Economic and Social Inclusion; the Ministry of Education; the Ministry of Women and Human Rights; Ecuador Grows without Child Malnutrition; the National Comprehensive Care Service for Adults Persons Deprived of Liberty and Adolescent Offenders; and the Permanent Mission of Ecuador to the United Nations Office at Geneva.

    The Committee will issue the concluding observations on the report of Ecuador at the end of its ninety-eighth session on 31 January.  Those, and other documents relating to the Committee’s work, including reports submitted by States parties, will be available on the session’s webpage.  Summaries of the public meetings of the Committee can be found here, while webcasts of the public meetings can be found here.

    The Committee will next meet in public on Thursday, 30 January at 3 p.m. to hold an informal meeting with States.

    Report

    The Committee has before it the seventh periodic report of Ecuador (CRC/C/ECU/7).

    Presentation of Report

    MARCELO VÁZQUEZ BERMÚDEZ, Permanent Representative of Ecuador to the United Nations Office at Geneva, said Ecuador was fully committed to fulfilling its international obligations under the Convention.  In May 2024, the organic law for the support and reparation for relatives of victims of femicide and violent deaths for gender reasons was adopted. Between 2023 and 2024, the Attorney General’s Office issued seven key technical instruments to strengthen the protection and care of victims, especially children, adolescents and persons affected by gender-based violence.  These instruments included guidelines on complaints and protective measures against physical, psychological, or sexual violence; guidelines to avoid revictimisation; and operational guides for the investigation of crimes such as human trafficking and the recruitment of children and adolescents for criminal purposes. 

    Through the Child Development Centres and the “growing with our children” programme, the Government provided comprehensive care to 289,000 children and adolescents in vulnerable situations in 2024.  In addition, there was close collaboration with indigenous, Afro-descendant, and Montubio communities and children on the move.  There were also several cash transfers for social protection for children or adolescents in situations of poverty and vulnerability, namely the human development bonus, the Joaquín Gallegos Lara bonus, and the lifetime pension.

    One of the most outstanding achievements was the creation of the Technical Secretariat for the “Ecuador grows without child malnutrition” policy and the implementation of its strategy, as well as the intersectoral strategic plan for the prevention and reduction of chronic child malnutrition.  These allowed effective collaboration between various government entities, focusing on the prevention and reduction of chronic malnutrition in children under two years of age.  Due to the implementation of the strategy, by 2024, the indicator on prevalence of chronic malnutrition in children under two years of age was reduced to 19.3 per cent, from the previous level of 24.8 per cent.  The programme was expected to achieve the goal of reducing the malnutrition rate to less than 15 per cent. 

    As an important component of the strategy, there was a cash transfer called the “1,000 days voucher”, which consisted of a fixed transfer and payments conditional on the commitment to attend prenatal check-ups and early registration of the birth in the Civil Registry.  Furthermore, all beneficiaries of the “1,000 days bonus” had the right to receive weekly family counselling services from specialised educators of the Ministry of Economic and Social Inclusion.

    ZAIDA ROVIRA, Minister of Economic and Social Inclusion of Ecuador, said Ecuador guaranteed access to quality vaccines approved by the World Health Organization, ensuring that every child received the appropriate vaccine to prevent diseases. As of August 2024, 95 out of every 100 Ecuadorian children had completed their vaccination schedule.  Between 2020 and 2023, maternal mortality was almost halved. The suicide prevention manual had been issued, which focused on the construction of support networks, from 10 years of age onwards.  Around 2,724 people had been trained in using the manual for the early identification of suicidal ideation, and 21 community support networks had been established for the prevention of suicide. 

    The Ministry of Labour, in collaboration with the International Labour Organization and the United Nations Economic Commission for Latin America and the Caribbean, had implemented a tool called the child labour risk identification model, which made it possible to identify the territories most prone to child labour and estimate the impact of various associated factors.  More than 1,000 labour inspections took place between January 2023 and July 2024.  In addition, 217 dialogue tables had been held with key actors, such as decentralised autonomous governments and civil society organizations, to design local intervention strategies. 

    Digital literacy campaigns had been carried out to educate the population on the safe and effective use of information technologies; 919 digital points had been opened nationwide.  Between 2023 and 2024, more than 9,000 visas were issued for children and adolescents seeking refuge, with particular focus on the Venezuelan population.  Between 2023 and 2024, Ecuadorian Consulates had handled 10,668 cases of children and adolescents in vulnerable conditions abroad, managing to resolve the majority of these cases. 

    The National Service for the comprehensive care of adults deprived of liberty and adolescent offenders, through the horizon of change work plan, had strengthened the comprehensive development of socio-educational measures by strengthening care for more than 739 adolescents in conflict with the law.  In addition, awareness-raising talks and trainings were carried out in educational units, reaching more than 7,000 adolescents.  Ms. Rovira hoped the exchange with the Committee members would help the country delve deeper into progress made and provide clarity on any issues. 

    Questions by Committee Experts

    MARY BELOFF, Committee Expert and Taskforce Coordinator, said the Committee was aware that the national context in which the dialogue was taking place was complex in many ways, especially since the declaration of an internal armed conflict.  The examination being carried out by the Committee was inevitably marked by the atrocious events that took place in Guayaquil in December 2024, related to the illegal detention, forced disappearance and subsequent murder of four children: Saúl Arboleda (15 years old); the brothers Josué Arroyo (14 years old) and Ismael Arroyo (15 years old); and Steven Medina (11 years old).  Investigating the social conditions that led to these events was an essential part of the work of the Committee in order to contribute to ensure that similar events never happened again in the country.

    There were more than 50 norms and standards to do with the rights of the child and adolescents which required legislative amendments.  What was the timeline for this?  Where did the difficulties lie in this regard?  The Committee praised the efforts made by the country to enhance social expenditure aimed at children and adolescents.  However, there had been a regressive trend after the pandemic in this respect.  How did the State plan to draw up a budget which considered the specific needs of children and adolescents in the country?  If a crisis were to occur again, how would expenditure on child-related matters be protected?  What were the State’s plans to ensure there was a coordination body at the national and local levels in order to facilitate missing data?  How was the State planning to extend its scope to cover the entire population, particularly those at the greatest risk of social disadvantage?

    Ecuador faced a situation described as one of structural discrimination, which had a direct link to poverty.  This affected indigenous populations, Afro-indigenous populations, and children in State custody.  What were the comprehensive policies which the State was planning to establish to put an end to structural discrimination?    How was the monitoring of centres where children were deprived of their liberty carried out, particularly during the state of emergency? How was it ensured that legislation relating to child labour was enforced?  The Committee was aware of the number of instruments relating to child participation.  However, it was indicated that children’s voices were not really being heard.  How was Ecuador going to include the voices of children and adolescents, particularly when it pertained to their rights? 

    VELINA TODOROVA, Committee Expert and Taskforce Member, said in October 2019, in the context of the national strike, the personal integrity of at least 12 children was severely impacted by the public forces.  Children suffered from injuries, as well as what could be as considered acts of torture. During the June 2022 strike, violence was also used against children, which was serious and unjustifiable.  How was the State safeguarding the rights of children to freedom of assembly?  Could the Committee be informed of investigations, prosecutions and reparations relating to these events?  Over the past few years, there had been acts of cruelty towards children by the Ecuadorian State.  Ecuador was in a state of deep regression of children’s rights, which the Committee had expressed concern about in 2016.  There were many reasons for this, and the State had failed to address the root causes. 

    The Committee understood that children in Ecuador did not feel safe in their families, neighbourhoods, and schools due to the increase presence of gangs in schools.  Many children had witnessed violent acts by gangs, including shootings.  Was this a real concern for the Government?  There had been a shocking increase in the number of deaths of children by 640 per cent, between 2019 and 2023, as well as enforced disappearances and acts of torture.  The Committee was informed that children in marginalised communities were most affected by security operations.  What progress had been made in investigations into these events?  How could the Government guarantee that perpetrators would face justice and convictions?   

    Another worrying trend was the use of children and adolescents by organised crime groups.  Boys as young as eight years old were recruited, as well as indigenous children and those from remote communities.  There were also many reports of illiteracy in these areas. Could the delegation explain the actions by the State to approve legislation trying children as adults in certain cases, such as murder?  In 2023, the forced recruitment of children and adolescents in the context of armed conflict was criminalised in Ecuador, which was highly commendable.  However, to date there had been no convictions under this crime.  What was the Government doing to address the human rights of children? 

    Every second child in Ecuador between 0 and five years of age suffered violence at home.  Did high profile politicians or celebrities in Ecuador ever condemn this kind of violence publicly?  Would the Government implement a programme for respectful parenting? What were the plans for the proper implementation of the law on femicide?  What measures had been taken to implement an early warning system on femicide?  How many children reported violence to the Public Defenders Service?  The levels of sexual abuse were a disgrace for Ecuador; girls were often victims of rape within their close circles of trust, including fathers, brothers and teachers.  Many cases were not reported and there was a high degree of impunity. Why was there such a high level of impunity for perpetrators?  Could this be attributed to the lack of trained prosecutors?  How were victims interviewed with the view to avoid harmful repetitive interviews? 

    One of the greatest issues in Ecuador was teenage pregnancy.  Six girls under 14 became mothers every day.  Although abortion was decriminalised, it was understood that the legal restrictions on abortion violated the rights of pregnant women. How did the State guarantee that rape victims could access safe abortions without obstacles?  What measures had been adopted to guarantee the non-criminalisation of doctors who performed abortions? 

    Responses by the Delegation

    The delegation said when it came the murder of the four minors, this case had profoundly shocked the Government and the people of Ecuador.  The Ecuadorian State had acted immediately following these events and had been carrying out due actions to investigate and punish the perpetrators. These events took place in December 2024, when the disappearance of the minors was reported.  The competent authorities then took all necessary actions to locate the children.  Investigations had begun and 16 members of the armed forces were now in pretrial detention.  All actions were being undertaken to ensure that the perpetrators were punished for this serious crime.

    Ecuador was a country with limited resources but it had focused on addressing childhood issues. There had been a delay concerning the Code of Children and Adolescents, which would end the scattered pieces of legislation that were a cause for concern.  The early childhood law was before the Assembly, as was the law on malnutrition.  Chronic malnutrition was high in Ecuador, and this had been a key focus of the State since 2018.  Many ministries were involved in this process and a system allowed information to be received from all ministries, allowing work to be honed into the vulnerable territories and ascertain where the greatest vulnerability level lay. Chronic malnutrition had been reduced by four points, which showed that the strategies were working.  The strategy focused on ages 0 to two, as well as pregnant mothers, and it was hoped this could be extended to other ages. 

    “Ecuador grows without malnutrition” was the pilot project being rolled out to address one of the main problems of the enjoyment of the rights of children and adolescents in the country.  Follow-up was carried out on each of the households for all families living in poverty and extreme vulnerability.  It was ensured that all care services for children and adolescents had a budget for the entire year.  Each of the State’s services had been and would be monitored continually to ensure their efficiency with funds. 

    More than 20,000 new families had been included in the “human development voucher” cash programme. In Ecuador there were money transfers for children who had no parents due to violent deaths.  They received support from several Government ministries to provide them with priority, comprehensive reparations.  The Ombudsman law ensured anyone could defend their rights without discrimination.  Ecuador had conducted around 1,000 annual inspections for child labour.  These were conducted on the ground and online to ensure a nationwide reach. 

    Ecuador had received an award for best practices because of work being done with the youth. The programme “horizon of change” aimed to be a worldwide reference point by 2035.  Currently, the programme was working with high-level methodologies, including a therapeutic system used with the youth.  The State was also investing heavily in occupational vocational activities, including through a programme which covered topics, including baking and juvenile fashion, among other areas. 

    In centres with young offenders, there was a whole staff of psychologists and medical professionals on hand.  The State was also working to bolster the self-esteem of young offenders through art and culture.  A life skills programme aimed to teach young offenders how to handle depression and anxiety, and work in this area had also been carried out in schools. 

    There were approximately 40,000 children and adolescents who were not in the education system.  The Government had identified them and was encouraging them to go back to school. School dropout had dropped between 2021 and 2023.  Children within the educational system had the right to participation.  There was a participation model which placed children and adolescents closer to the centre on issues which related to them.  A campaign had been drafted to reduce racial discrimination, and another to address violence in the education system. The shared responsibility of families was promoted throughout the education system, and child rearing skills programmes were offered, including on communication skills, emotional sympathy, learning support, preventing sexual violence, and teenage pregnancy, among others.  Over one million families benefited from these sessions in 2024. 

    Teen pregnancy was an issue of concern in the country, particularly the health of the baby due to malnutrition.  The teen fertility rate had decreased.  There were many communications strategies which addressed the issue of teen pregnancy. There was a law in force for abortion in cases of violence.  Pregnancy in the case of rape could be terminated up to 12 weeks. 

    Questions by Committee Experts

    VELINA TODOROVA, Committee Expert and Taskforce Member, asked if the malnutrition of the baby was really the key issue when it came to teen pregnancy?  Could examples of the messaging to pregnant girls be provided? Had it been considered that boys or men who were responsible for the pregnancy also needed to receive messages? The Committee had received many reports that the phenomenon of child marriage existed, and was underrated by the Government.  Information had been received that around 30,000 girls lived in early unions, particularly in Amazon communities.  There was an increase in early unions between girls 12 and 14 years old.  Many of these adolescent girls remained in these unions until they were 18 and then they married.  Did the delegation not consider this a trend which needed the attention of the Government? 

    Had the State ever considered the reason for the high number of missing girls?  Was it likely that some of these girls were sold by parents or were involved in prostitution?  One form of using children in prostitution was the so-called “prepaid” with contact being made discreetly and in advance.  What were the policies of the Government regarding this issue? 

    MARY BELOFF, Committee Expert and Taskforce Coordinator, said it was a pleasure to hear the focus being placed on resource allocation to guarantee rights in early childhood. This trend was promising, and it was hoped it would be consolidated in coming years.  What would the budgetary allocation be for the new Code of Children and Adolescents?  Were there any plans to increase the investment per capita amongst children? What was the State planning to do to reach out to all vulnerable populations to grapple with the issue of recruitment proactively?

    A Committee Expert said between January and November 2024, there had been nine complaints of enforced disappearance, 80 complaints of torture, and 145 complaints of excessive use of force.  It would appear the poorest neighbourhoods were the most impacted.  What was the State doing to prevent this pattern?  Afro-Ecuadorians, migrants and trans children were groups which faced discrimination.  There were two cases before the court on trans children.  What was the State doing to address this issue of discrimination? 

    Another Expert asked if the consent form was used in cases of all children in terms of abortion?  Could a minor give their consent for abortion? Were parents informed if their child requested an abortion?  Was there any special support put in place for young girls to ascertain if the pregnancy was the result of a rape?  What was being done to protect the young girls in this context?

    An Expert asked if a young girl who was over the age of 14 who was pregnant due to rape was required to bring the pregnancy to term? 

    VELINA TODOROVA, Committee Expert and Taskforce Member, asked about the inclusiveness of policies for children with disabilities in the areas of care and education?  Did Ecuador implement a policy of inclusive education and community-based care for children who could not stay with their families? What was the difference between comprehensive child development services and specialised comprehensive rehabilitation centres of the Ministry of Health? 

    ZARA RATOU, Committee Expert and Taskforce Member, said in the case of children deprived of a family environment, the technical standard was part of the strategy for the deinstitutionalisation of children and promoted their reintegration into the family environment.  What progress had been made in terms of ending institutionalisation and the adoption of a strategy and action plan for the deinstitutionalisation of children and adolescents to take into account judicial proceedings?  Was there information on the effective implementation of the technical standard of family support, family custody, and foster care?  Had a framework been set up by the Government to guarantee extended coverage for children?  What measures had been taken to facilitate the rehabilitation and social reintegration of children?  What measures had been taken to strengthen the capacity of professionals working with families and children, including judges, law enforcement, and social workers to ensure alternative care solutions?

    What measures had been taken by the Government to speed up the national adoption process, including by increasing the number of family judges and ensuring that properly trained professionals worked in foster care centres? Could information be provided on the implementation and results of the application of the technical standard of family support, family custody, and foster care placement to expedite the adoption process?

    What steps was the Government taking to adopt a comprehensive strategy to ensure equal access to essential health services for children living in marginalised situations?  How did the State maintain and strengthen measures to achieve universal immunisation coverage, such as the 2023 national immunisation campaign for a polio-free, measles-free, and rubella-free Ecuador?  What measures had the Government implemented to maintain and strengthen Ecuador’s national strategy to ensure that children grow up free of child malnutrition?  What was the Government doing to improve prevention strategies on anaemia, diarrhoea, and respiratory diseases?  What support was given to breastfeeding campaigns?  What measures was the Government taking to provide appropriate support to mothers through counselling structures in hospitals and the implementation of the baby-friendly hospitals initiative throughout the country? 

    According to the information received, the suicide rate had increased from 1.7 per cent in 2018 to 7.2 per cent in 2022.  Could information be provided on the adoption and implementation of the national mental health policy and the national suicide prevention strategy?  Ms. Ratou commended the Government for the efforts of the intersectoral policy for the prevention of pregnancy among girls and adolescents, which had achieved remarkable results in 2019-2022.  However,

    could more information on the implementation of the policy for the prevention of pregnancies be provided?  How was the Government providing children and adolescents with accurate and objective information on the prevention of substance abuse, such as tobacco and alcohol?

    What steps had been taken to improve the follow-up treatment of HIV/AIDS-infected mothers and their children?  Were there revised and harmonised laws and policies on HIV/AIDS to ensure access to confidential HIV testing services?  What measures had been taken to provide counselling to adolescents without the need for parental consent?  Was there specific data on government strategies to protect intersex children?  What steps were being taken to fully guarantee the rights of inter-sex children?

    MARY BELOFF, Committee Expert and Taskforce Coordinator, asked if any mechanism had been implemented to allow children who were not registered to benefit from cash transfers?  What strategy could be used to reach these children who lived in remote areas?  What was the State’s responsibility in terms of the oil and mining industry and its impact on the environment, which could violate the rights of children and adolescents? What mechanisms were there for oversight and sanctioning?  What were the mitigation measures used to address the environmental impacts felt by the country?  Was there any policy on this issue?  How often were the most affected communities consulted? 

    BENYAM MEZMUR, Committee Expert and Taskforce Member, acknowledged the efforts made by the State party despite the challenges.  Significant resources went to the education of children between the ages of five and 17. How would early childhood education be addressed?  What had been the impact of interventions to address school dropout?  Had there been improvements to the water and sanitation systems in schools?  The intersectoral policy for the prevention of pregnancy in girls and adolescents was positively noted.  Why were all complaints not transferred to the Ombudsman’s office?  What was the criteria to establish which complaints were transferred?  The State should be congratulated on progress in learning outcomes since the COVID-19 pandemic.  What was the Government doing to move beyond this? 

    Some school bus drivers were recognised as committing sexual violence against children.  How was the State addressing this?  There were concerns about access to justice for asylum seeking migrants and children.  How would this be addressed?  There were also concerns around the regularisation process in the State party. To what extent were temporary residents’ visas being issued to individuals?  How would the Government address shortcomings faced by migrant children, particularly those from Venezuela?  To what extent were efforts to combat xenophobic speech against migrant and refugee children effective?  Could information be provided on children in street situations, including violence faced at the hands of law officials?  There were concerns around the lack of resources for monitoring of rehabilitation centres, where children were deprived of their liberty.  What was the State party doing to address this challenge?  Would 14 be maintained as the criminal age of responsibility?   

    Responses by the Delegation

    The delegation said over 37,000 members of the armed forces and 57,000 police officers were trained on the principles of human rights, and manuals, protocols, and training modules had been developed on protecting the rights of children and adolescents.  There were internal investigation units that could issue sanctions against police officers and armed forces personnel who committed human rights violations.  The Attorney-General also conducted investigations of such cases and could pursue criminal proceedings.

    An inter-sectoral prevention policy was in place to reduce incidences of teenage pregnancy. Personalised school curricula and virtual learning platforms had been developed for girls who fell pregnant. The State had sexual and reproductive health education programmes, manuals on adolescent health, and over 1,000 health centres providing reproductive health care for adolescents. The Ministry of Health was working to properly implement the law on the voluntary termination of pregnancy and had trained over 5,000 public health workers on the law.

    The State party was working to use online tools to identify and prevent cases of gender-based violence.  There was a national plan in place to prevent violence against children and a safe schools project.  The State sought to guarantee clear paths of redress for victims of ill treatment. More than 33,000 teachers had been trained in early detection of incidences of violence.

    The bill on the rights of boys, girls, and adolescents, which sought to establish a governing body on the rights of children and adolescents, was being debated in the National Assembly.  The budget for children and adolescents had significantly increased in recent years. For example, from 2021 to 2025, the budget for early childhood education had increased by more than 20 per cent. In 2024, there was a 1.5 per cent reduction in the poverty rate from 2023, from 26 to 24.5 per cent.  The State party had implemented various actions, including cash transfers and vouchers, to reduce the poverty rate.

    State law guaranteed comprehensive care for all children with HIV, who were entitled to free treatment.  Programmes promoting screening for HIV and child prophylaxis had helped to reduce mother-to-child transmission. 

    The State party also aimed to improve the availability and quality of mental health care clinics across the country. The organic law on mental health established processes for diagnosis, rehabilitation, and reintegration into the community.

    Ecuador had established support groups for mothers that encouraged breastfeeding.  The breastfeeding rate had recently increased from 51 to 53 per cent. Over 3,000 breastfeeding-friendly areas had been certified by the State.  A book on baby nutrition had been produced and breast milk banks had been set up.

    Ecuador had a national immunisation project that was based on World Health Organization guidelines.  Eighteen vaccinations were provided to children and adults by public health care clinics.  The rate of children who were vaccinated before the age of one had increased to 91 per cent.  Vaccinations were voluntary and free of charge.  Interventions in remote provinces had been carried out to promote vaccination.  In the second half of 2025, the State party would start to provide cellular vaccinations against various diseases.

    One of the pillars of the State’s strategy to tackle malnutrition was to improve access to safe water supplies. The national Government was supporting decentralised governments to bolster the development of water filtration. The prevalence of acute diarrhoea and respiratory infections in children under two had decreased in recent years.

    Alternative care modalities, including institutional and foster care, had been established to provide care to children who were victims of violence.  A national guardianship programme was also in place to bolster family ties and reduce institutionalisation.  Over 19 million United States dollars had been invested in the protection system in 2024.  The State party focused on deinstitutionalisation and family integration.  Placement in foster homes was a measure of last resort. An independent committee was monitoring the implementation of child protection policies.  There were two specialised units working to care for child victims of trafficking and reinsert them into family environments.

    Ecuador had regulated the adoption process and was working to reduce delays in the process.  Registration of adoptive families was now done online. An entry interview was conducted and families were assessed, then they underwent a four-week training course. Adoption units monitored the situation in adoptive families for two years after children were adopted.

    Ecuador recognised the right of children and adolescents to live in a safe environment.  The State’s second nationally determined contribution under the Paris Agreement for 2026 to 2035 was approved yesterday.  It highlighted indigenous knowledge as key to combatting climate change, and aimed to ensure social protection for children, encouraging them to engage in climate action. A roundtable on the protection of environmental human rights defenders had been set up and was drafting a public policy on their protection.  Standards on free, prior and informed consent had been developed and were considered in court cases relating to development projects.

    The Constitution, the Organic Law on Disability, and the Code on Children and Adolescents promoted the rights of children with disabilities.  Over 1,400 caregivers participated in a support network for children with disabilities.  Subsidies, vouchers, and pensions were provided to families caring for persons with disabilities to lighten the economic burden.  Around 34 million United States dollars was allocated to this annually.  In 2023 and 2024, there were over 38,000 students with disabilities in the regular school system, while around 3,000 were enrolled in special schools.  A public policy was in place to prevent violence against children with disabilities.  Around 1,300 civil servants had been trained to improve care for children with disabilities.  The State party sought to broaden programmes for children with disabilities in remote areas and ensure that they could fully enjoy their rights.

    Questions by Committee Experts

    MARY BELOFF, Committee Expert and Taskforce Coordinator, asked whether the worsening security situation in the country would affect public opinion regarding proposed legislation on the rights of children and adolescents.  The various reforms of the social protection sector were very welcome.  Why was there such a high number of persons behind bars?  What measures were in place to provide alternatives to detention for adolescents?

    VELINA TODOROVA, Committee Expert and Taskforce Member, asked why no information had been provided on cases of the use of force by State officials against children in 2017 and 2022?  A commission had been established to investigate allegations of sexual abuse against children by members of the Catholic Church in 2017, which identified several cases of cover-ups of such abuse.  Did the State party plan to establish a Truth Commission related to this issue?  How were teachers, parents, and children prepared to support children with disabilities in inclusive education?  What was meant by the concept of “care by agreement”?

    BENYAM MEZMUR, Committee Expert and Taskforce Member, cited concerns regarding the potential abuse of children’s rights in the implementation of the state of emergency.  How would the State party prevent this?  Were there plans to develop distinct legislation addressing the recruitment of children by non-State armed groups?  There had reportedly been a decline in vaccination coverage recently; why was this?

    ZARA RATOU, Committee Expert and Taskforce Member, asked whether cellular vaccines, which could have undesired effects on children, would be administered to them.

    Other Committee Experts asked questions on strategies to address high rates of child murders and suicides; measures to protect children from structural violence and organised crime; plans for full vaccination against the pneumococcal virus and polio; the coverage of the sexual and reproductive health education programme; measures to protect children in the Galapagos islands from abuse; plans to restore speciality to the juvenile justice system; why children vaccinated in the public sector did not receive the same vaccines as in the private sector; when the State party would update the national vaccination schedule; measures to ensure all births were registered; whether pregnant girls’ parents needed to consent to abortions; whether the national preventive mechanism provided specialised oversight of the detention of children; and inquiries into human rights violations occurring in international intercountry adoptions.

    Responses by the Delegation

    The delegation said thousands of institutions were providing inclusive education for children with disabilities, and over 126,000 teachers had received training on providing inclusive education.  A new national curriculum had been developed to encourage inclusive education, and there were also models of education tailored to the needs of children with various disabilities.  A programme had been developed to support children whose education had been delayed and there were policies in place to promote reinsertion for children who had dropped out of school.  Around one per cent of educational institutions were in a state of disrepair. The State party was investing more funds in refurbishing schools.  A voluntary early childhood education system had been developed, and 18,000 children were enrolled in the system. 

    All complaints of sexual violence occurring in schools needed to be reported to the police. Health services provided psychological care to child victims.  Schools were required to report complaints of abuse of students by bus drivers, which prosecutors duly investigated.  Data on violence in schools was collected to inform public protection policies and to provide specialised care to students.  A plan of action to prevent gender-based violence against children with disabilities in the education system was being implemented.

    Ecuador had growing rates of violence and terrorist crimes, which were an affront to the State’s sovereignty.  Given this situation, the Government declared a state of emergency in 2024.  All states of emergency were reviewed by the Constitutional Court, which had found them to be lawful.  All policies administered under states of emergency respected the rights of children and adolescents and promoted peace and human rights.

    The Constitution banned discrimination based on migration status.  The organic law on people on the move and other legislation ensured the rights of all migrant children in Ecuador and the provision of comprehensive care to them.  A specialised policy had been developed on caring for and regularising the status of unaccompanied minors.  Between 2021 and 2025, more than 4,900 children and adolescents were granted international protection by Ecuador.  Single parent migrant families had access to free legal representation.  There was an awareness raising campaign in place aiming to prevent discrimination against migrants on the northern border.  Guides had been developed that promoted the inclusion of migrant children in society and the education system.  All foreign persons had the same access to education and healthcare as Ecuadorian nationals.

    Ecuador had stepped up efforts to combat trafficking in persons.  It had produced guidance booklets against these crimes and was implementing preventive checks at border points.  The State party had managed to prevent over 3,000 irregular exits by children in recent years.  Training had been provided to border officials on detecting victims of trafficking, and an interactive map had been developed that displayed patterns in criminal activity.  Funding in the response to trafficking had been boosted in recent years.

    The police had a unit that was investigating illegal intercountry adoptions and taking measures to prevent such adoptions.  A protocol for the searching for the origins of adoptees had been developed.

    Measures had been taken to prevent cases of excessive use of force by the police against children from reoccurring.  Institutional guidelines had been developed to protect the rights of citizens involved in demonstrations, and an organic law regulating the legitimate use of force had been developed and disseminated.  The State party recognised that all children and adolescents had the right to protest peacefully.

    The State party was raising awareness of the importance of juvenile justice.  Measures imposed on adolescents aimed to ensure that they could rehabilitate and return to society.  These measures could be applied on adolescents for a minimum period of one year and a maximum of eight, depending on the severity of the crime. There were custodial and non-custodial socio-educational measures.  Units for social reintegration had bedrooms instead of cells, recreational areas, canteens, and educational workshops.  Around 430 adolescents were housed in these units, around half of whom had committed rape. The “good citizenship” programme was addressing the issue of adolescent rape.  No young persons had passed away in these centres in 2024.

    Parents did not need to give permission for girls to seek abortions.  Babies needed to be registered within 45 days of birth.  The cellular vaccine that the State would use had been scientifically tested and found to be safe for children aged six months and over.

    Concluding Remarks 

    MARY BELOFF, Committee Expert and Taskforce Coordinator, thanked the delegation for its efforts to answer the Committee’s questions.  The dialogue had provided insight on the issues faced by Ecuador and areas that needed to be focused on in public policies.  Ecuador had expressed its commitment to implementing the Convention.  The Committee hoped that the State party would be able to achieve its goals for the benefit of all children.

    ZAIDA ROVIRA, Minister of Economic and Social Inclusion of Ecuador, said that the dialogue had been sincere and candid.  The delegation had provided information on the implementation of the Convention through public policies, plans, and programmes aimed at protecting the rights of children and adolescents.  It had submitted official, verified information that it hoped had dispelled the Committee’s concerns.  It called for the Committee’s support to build a system for the protection of all children and adolescents.  It hoped to make its policies a reality in a short space of time.

    The State party had a debt to children and adolescents in the country.  It was committed to taking on its challenges by increasing the budget for children, developing robust standards and laws and an institutional system with sufficiently trained staff, and promoting cooperation with civil society.  The topics discussed in the dialogue would inform the State’s future efforts for children and adolescents.

     

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

     

    CRC25.008E

    MIL OSI United Nations News

  • MIL-OSI USA: Artemis II Stacking Operations Update

    Source: NASA

    Teams with NASA’s Exploration Ground Systems Program continue stacking the SLS (Space Launch System) rocket’s twin solid rocket booster motor segments for the agency’s Artemis II mission, inside the Vehicle Assembly Building (VAB) at NASA’s Kennedy Space Center in Florida.
    Currently, six of the 10 segments are secured atop mobile launcher 1 with the right forward center segment as the latest addition. Teams will continue integrating the booster stack – the left center center segment adorned with the NASA “worm” insignia is the next segment to be integrated.
    The right and left forward assemblies were brought to the VAB from the spaceport’s Booster Fabrication Facility on Jan. 14. The forward assemblies are comprised of three parts: the nose cone which serves as the aerodynamic fairing; a forward skirt, which house avionics; and the frustum which houses motors that separates the boosters from the SLS core stage during flight. The remaining booster segments will be transported from the Rotation, Processing, and Surge Facility to the VAB when engineers are ready to integrate them. The forward assemblies will be the last segments integrated to complete the booster configuration, ahead of integration with the core stage.
    Image Credit: NASA/Kim Shiflett

    MIL OSI USA News

  • MIL-OSI Security: Five Defendants Sentenced in Options Trading Scheme

    Source: Office of United States Attorneys

    ATLANTA – Milan Patel has been sentenced to prison in connection with a years-long market manipulation scheme in which he and his co-conspirators conceived, drafted, and disseminated false rumors about publicly traded companies and then profitably traded on these rumors by purchasing and selling mainly short-term call options.

    “The defendants used their financial acumen to manipulate the securities markets by releasing false information about publicly traded companies,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office is committed to working with our law enforcement partners to investigate and prosecute all forms of securities fraud.”

    “These sentencings should serve as a reminder to anyone attempting to tilt the balance of financial markets in their direction using insider trading, investigating this illegal behavior is a top priority of the FBI and you will be held accountable,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta.

    According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: Between approximately October 2017 and January 2020, Milan Patel, Bart Ross, Mark Melnick, Anthony Salandra, and Charles Parrino conspired to trade securities—primarily short-term call options—in large, publicly traded companies based on materially false rumors about those companies that they generated and disseminated. These materially false rumors were intended to increase the price of the securities (both the underlying stock and options).

    Call options are essentially a contract that gives the options’ holder the right, but not the obligation, to buy shares of the underlying stock at a set price per share—the option’s strike price—on or before a set future date (the option’s expiration date). Generally, the holder of a call option benefits when the price of the underlying stock increases. Short-term call options are ones that generally expire within a week.

    Ross, Salandra, and Parrino, were formerly registered brokers with the Financial Industry Regulatory Authority (FINRA) and were responsible for drafting some of the fraudulent rumors. The conspirators would often refine a proposed rumor by exchanging drafts among themselves using the Trillian instant messaging application.

    Melnick was a day trader and T3 Live Senior Trading Strategist who often provided technical evaluations on whether a particular false rumor would be successful. These rumors were carefully crafted to: (a) appear plausible enough to other market participants to move the price of the underlying security; and (b) move the price of the security in a particular direction—namely move the stock or option price up—so that Patel and the other conspirators could profitably trade on the rumors.

    Patel was responsible for disseminating the rumor via Trillian to multiple accounts, which would in turn result in the false rumor being distributed over one or more market subscription services, including Trade The News, TradeXchange, and Benzinga, as well as various Twitter accounts.

    Before Patel disseminated the rumor, the co-conspirators would acquire a position in the publicly traded company that was the subject of the rumor. The co-conspirators purchased short-term call options often mere seconds before Patel disseminated the rumor. The conspirators often purchased short-term call options because the price of such options is more sensitive than the price of the underlying stock. The conspirators profited from their scheme by selling the options (or other securities) after they increased in price. They would then sell off their positions shortly after the rumor was disseminated and the price of the option or underlying stock had increased.

    In total, the defendants executed more than 500 trades and made $2,651,320 in profits as a result of their fraudulent scheme.

    U.S. District Judge Leigh Martin May sentenced the defendants in the case as follows:

    •Milan Patel, 49, of Cumming, Georgia, was sentenced on January 23, 2025, to 18 months in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Patel was convicted on August 20, 2024, after he pleaded guilty to conspiracy to commit securities fraud.

    •Charles Parrino, 59, of West Palm Beach, Florida, was sentenced on January 17, 2025, to one year and one day in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Parrino was convicted on September 27, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.

    •Mark Melnick, 44, of Marlboro, New Jersey, was sentenced on December 18, 2024, to three years’ probation with the first six months to be served on home confinement. He was also ordered to pay a $4,000 fine. Melnick was convicted on September 21, 2021, after he pleaded guilty to conspiracy to commit securities and wire fraud.

    •Anthony Salandra, 60, of Delray Beach, Florida, was sentenced on December 5, 2024, to three years’ probation with the first six months to be served on home confinement. Salandra was convicted on April 11, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.

    •Bart Ross, 60, of Atlanta, Georgia, was sentenced on September 7, 2022, to three years’ probation. Ross was convicted on December 18, 2020, after he pleaded guilty to conspiracy to commit securities and wire fraud.

    This case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission.

    Assistant U.S. Attorney Alex R. Sistla prosecuted the case.

    The SEC is investigating potential civil violations of the U.S. securities laws relating to above-described scheme. In connection with its investigation, the SEC filed separate civil enforcement actions against Patel, Parrino, Melnick, Salandra, and Ross in the U.S. District Court for the Northern District of Georgia.

    For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

    MIL Security OSI

  • MIL-OSI NGOs: Pakistan: Authorities pass bill with sweeping controls on social media   

    Source: Amnesty International –

    Responding to the passage of the Prevention of Electronic Crimes (Amendment) Act 2025 at the National Assembly, Babu Ram Pant, Deputy Regional Director of Campaigns, South Asia, said: 

    “The latest amendment to the draconian Prevention of Electronic Crimes Act (PECA) by the National Assembly will further tighten the government’s grip over Pakistan’s heavily controlled digital landscape, if passed by both houses of Parliament. 

    “The amendment introduces a criminal offence against those perpetrating so-called ‘false and fake information’ and imposes a maximum penalty of three years’ imprisonment with a fine. The vague and ambiguous framing of some elements of the offense together with a history of the PECA being used to silence dissent raises concerns that this new offence will chill what little is left of the right to online expression in the country.  

    “Presented in the absence of any consultation or debate, the amendment also expands the powers previously available to the Pakistan Telecommunications Authority through the newly created Social Media Regulation and Protection Authority. These provisions grant authorities power to block and remove content based on vague criteria, which will violate the right to freedom of expression and fail to meet standards of proportionality and necessity under international human rights law. 

    The latest amendment to the draconian Prevention of Electronic Crimes Act (PECA) by the National Assembly will further tighten the government’s grip over Pakistan’s heavily controlled digital landscape, if passed by both houses of Parliament. 

    Babu Ram Pant, Deputy Regional Director of Campaigns, South Asia

    “These developments are in step with deployment of intrusive digital surveillance technologies and laws such as the Digital Nation Pakistan Bill, that fail to incorporate any human rights safeguards. Amnesty International calls on the authorities to immediately withdraw the Bill and instead engage in a meaningful consultative process with civil society to amend PECA to bring it in line with international human rights law.” 

    Background: 

    The amendment Bill was presented in and passed by the National Assembly on 23 January 2025 and referred to the Standing Committee the next day by the Senate after backlash from opposition, media and civil society.  

    The Prevention of Electronic Crimes Act passed in 2016 triggered widespread criticism from human rights organizations and activists for its potential for harmful impact on the right to freedom of expression and access to information in the country. The nine years since have confirmed these fears as journalists, human rights defenders and political opposition have been targeted under the law. Recently, the authorities have frequently imposed blanket bans on social media platforms and have blocked X, formerly Twitter, since February 2024. 

    MIL OSI NGO

  • MIL-OSI USA: FEMA Seeks Multi-Family Properties to House Georgia Storm Survivors

    Source: US Federal Emergency Management Agency 2

    FEMA Seeks Multi-Family Properties to House Georgia Storm Survivors

    FEMA is seeking multi-family properties that can be used as temporary housing for eligible survivors of Hurricane Helene. These units must meet local, state and federal housing regulations. Multi-family properties for consideration should be in and around the communities affected by Hurricane Helene, to include Appling, Berrien, Burke, Clinch, Coffee, Emanuel, Jeff Davis, Jefferson, Lanier, Lowndes, McDuffie and Toombs counties. FEMA encourages all interested multifamily properties to consider participating. The deadline for property owners and managers to reply to this request for information is Saturday, Feb. 22, 2025. Interested parties will need to email FEMA-dr4830ga-mlrrfi@fema.dhs.gov.What is Multi-Family Lease and Repair program?Multi-Family Lease and Repair (MLR) is a form of temporary housing assistance that allows FEMA to repair or make improvements to existing multifamily rental/residential property for the purpose of providing temporary housing to eligible FEMA applicants. The properties in MLR are to be offered as temporary housing to eligible disaster survivors. The properties must be available for a term of no less than 18 months, with the option of a lease extension. The properties should be complexes that are able to accommodate a considerable number of people in a single location. Each property must have been previously used as a multifamily housing complex and contain multiple rental units. Hotels, hospitals, nursing homes, etc. are not considered residential properties and are not authorized for MLR. The site must be repairable to local, state and federal regulations within a four-month period and cannot be located in a floodway. MLR is not intended to repair or improve individual units to rehouse existing tenants.What conditions does the property need to meet?All property management companies or owners must register to do business with FEMA through the System for Award Management (SAM) at SAM.gov.The property owner must provide all property management services, including building maintenance.The vacant units on the property must be available to be leased exclusively to FEMA for use as temporary housing for eligible survivors for a term expiring no earlier than 18 months, with the possibility of contract extension.The property must be in an area with access to community and wraparound services such as accessible public transportation, schools, fire and emergency services, grocery stores, etc.Each unit must provide complete and independent living facilities for one or more persons and contain permanent provisions for living, sleeping, cooking and sanitation.The property must contain multiple units.The property must have been previously used as multifamily housing.The property owner must agree to allow FEMA to make reasonable accommodation and/or modification repairs or improvements during the term of the lease without requiring FEMA to remove the improvements at the end of the lease agreement. What other terms or conditions are there?A provision granting FEMA exclusive use of the units and sole discretion to identify and select occupants during the term of the lease agreement.A provision granting FEMA the option of releasing the unit to the owner and ceasing all monthly payments for the unit at any time by providing 30 days’ notice.A provision incorporating a lease addendum containing FEMA’s conditions of eligibility and termination of tenancy and eviction into any lease between the property owner and the occupant. A provision agreeing to waive credit screening for eligible applicants.A provision allowing FEMA to reassign a vacated unit when eligible applicants need temporary housing assistance, and a unit becomes available before the end of the period of assistance.Property owners must be current and in good standing with property mortgage payments and ensure mortgage standing verification is provided as well as proof of ownership. What information is requested?Interested property owners should provide the following information:Name of complex, location, owner name and phone number or contact information (if not property owner)Status of property’s mortgage payments.Total number of housing units within the property.Number of vacant housing units containing a separate bathroom, kitchen, and living space.Number of vacant housing units available for FEMA exclusive use.Number of vacant housing units compliant with Uniform Federal Accessibility Standards and/or features that provide accessibility for individuals with disabilities. Description of repairs and improvements required to make the housing units habitable. Description of repairs currently underway, if applicable.Projected length of time required to make the housing units habitable (from execution of the contract). Year building was constructed (if known).Years the building was used for multi-family housing.Rental rates during the last year of operation (state whether utilities were included, and if so, which ones).Pet restrictions, such as type, number, or size, and applicable pet deposits; andNumber of parking spaces (including accessible and van-accessible) available for each housing unit. Where do I respond to the request for information?Interested property owners or management companies must provide responses and comments on or before Saturday, Feb. 22, 2025 at 5:00pm EST to FEMA-dr4830ga-mlrrfi@fema.dhs.gov. The email subject line should read:  RFI# RFI70FBR425I00000008_DR4830GA  Response: FEMA-dr4830ga-mlrrfi@fema.dhs.gov.More information about this opportunity can be found at SAM.gov.The RFI does not constitute a Request for Proposal (RFP0), Invitation for Bid (IFB), or Request for Quotation (RFQ), and it is not to be construed as a commitment by the government to enter into a contract, nor will the government pay for the information submitted in response to this request. Response to this notification will be used to determine which properties meet the Direct Lease criteria and provide the most timely and cost-effective means of providing direct assistance to eligible disaster survivors. FEMA wants to obtain market information or capabilities for planning purposes. For the latest information about Georgia’s recovery, visit fema.gov/helene/georgia. Follow FEMA Region 4 @FEMARegion4 on X or follow FEMA on social media at: FEMA Blog on fema.gov, @FEMA or @FEMAEspanol on X, FEMA or FEMA Espanol on Facebook, @FEMA on Instagram, and via FEMA YouTube channel. Also, follow Acting Administrator Cameron Hamilton on X @FEMA_Cam.                                                                                    ###FEMA’s mission is helping people before, during and after disasters.
    jakia.randolph
    Fri, 01/24/2025 – 20:07

    MIL OSI USA News

  • MIL-OSI USA: FEMA Seeks Property Management Companies in Georgia for Direct Lease

    Source: US Federal Emergency Management Agency

    Headline: FEMA Seeks Property Management Companies in Georgia for Direct Lease

    FEMA Seeks Property Management Companies in Georgia for Direct Lease

    FEMA is seeking information from property management companies with ready-for-occupancy residential or rental properties in Georgia communities affected by Hurricane Helene. These units must meet local, state and federal housing regulations. Property management companies for consideration should be doing business in and around communities affected by Hurricane Helene, to include Appling, Berrien, Burke, Clinch, Coffee, Emanuel, Jeff Davis, Jefferson, Lanier, Lowndes, McDuffie and Toombs counties, as well as surrounding communities. FEMA encourages all interested property management companies to consider participating.The deadline for companies to reply to this request for information is Wednesday, Feb. 12, 2025. What is Direct Lease program? Direct Lease is a form of Direct Temporary Housing Assistance that allows FEMA to enter into contracts directly with property management companies to lease properties not generally available to the public. Properties must be available for no less than 18 months, with an option for lease extension. The properties will then be offered as temporary housing to eligible disaster survivors. This includes corporate apartments, vacation rentals, secondary homes, bank-owned properties, condominiums, townhouses and other dwellings. FEMA may use these units for eligible applicants who are unable to use rental assistance due to lack of available resources. What conditions does the property need to meet?The property must be an existing residential property not typically available to the public (i.e. corporate apartments, vacation rentals, and second homes), for use as temporary housing. Units occupied using a form of FEMA Rental Assistance cannot be combined with FEMA Direct Lease Assistance. Hotels, motels and other transient accommodations will not be acquired for Direct Lease. The property must comply with Housing Quality Standards established by the U.S. Department of Housing and Urban Development and all relevant state building and occupancy standards and regulations. All utilities, appliances, and other furnishings must be functional. Each unit must provide complete living facilities, including provisions for cooking, eating and sanitation within the unit. The property must be located within reasonable access to community and wrap-around services, such as accessible public transportation, schools, fire and emergency services, grocery stores, etc.All property management companies or owners must register to do business with FEMA through the System for Award Management (SAM) at SAM.gov.What terms or conditions are there?A provision granting FEMA exclusive use of the units and sole discretion to identify and select occupants during the term of the lease agreement.A provision granting FEMA the option of releasing the unit to the owner and ceasing all monthly payments for the unit at any time by providing 30 days’ notice.A provision allowing FEMA to make, at FEMA’s expense, reasonable modifications or improvements to the property to provide a reasonable accommodation for an eligible applicant with a disability or other access and functional needs.A provision allowing FEMA to restore the property to its original condition before any reasonable modifications or improvements as requested by the property owner.A provision incorporating a lease addendum containing FEMA’s conditions of eligibility and termination of tenancy and eviction into any lease between the property owner and the occupant.A provision agreeing to waive credit screening for eligible applicants.A provision allowing FEMA to reassign a vacated unit when eligible applicants need temporary housing assistance, and a unit becomes available before the end of the period of assistance.Property owners must provide all building maintenance services.Property owners must be current and in good standing with property mortgage payments and have a current rental license verification.What information is requested?Interested property owners should provide the following information:Name of complex, location, owner name and phone number or contact information (if not property owner).Number of vacant units containing a separate bathroom, kitchen and living space available for FEMA exclusive use and the number of bedrooms each unit contains.Number of units compliant with Uniform Federal Accessibility Standards and/or features that provide accessibility for individuals with disabilities.Confirmation the property owner is current and up to date with the property’s mortgage payments.Confirmation that the property is readily available for applicants to move in.History of the building’s use (dates used as a rental, etc.) if applicable.Utilities included in rent.Numbers of units fully furnished.Rental range for property, including any associated fees.Pet restrictions, such as type, number, or size, and applicable pet deposits; andNumber of parking spaces (including accessible and van-accessible) available for each housing unit.Where do I respond to the request for information?Interested property owners or management companies must provide responses and comments by Wednesday, Feb. 12, 2025 to fema-dr4830ga-directleaserfi@fema.dhs.gov. The email subject line should read RFI# 70FBR425I00000007.More information about this opportunity can be found at SAM.gov.The RFI does not constitute a Request for Proposal (RFP0), Invitation for Bid (IFB), or Request for Quotation (RFQ), and it is not to be construed as a commitment by the government to enter into a contract, nor will the government pay for the information submitted in response to this request. Response to this notification will be used to determine which properties meet the Direct Lease criteria and provide the most timely and cost-effective means of providing direct assistance to eligible disaster survivors. FEMA wants to obtain market information or capabilities for planning purposes. For the latest information about Georgia’s recovery, visit fema.gov/helene/georgia. Follow FEMA Region 4 @FEMARegion4 on X or follow FEMA on social media at: FEMA Blog on fema.gov, @FEMA or @FEMAEspanol on X, FEMA or FEMA Espanol on Facebook, @FEMA on Instagram, and via FEMA YouTube channel. Also, follow Acting Administrator Cameron Hamilton on X @FEMA_Cam.                                                                                    ###FEMA’s mission is helping people before, during and after disasters.
    jakia.randolph
    Fri, 01/24/2025 – 20:11

    MIL OSI USA News

  • MIL-OSI Security: Kidnapper of Alexandria, VA, Couple Sentenced to 108 Months in Federal Prison

    Source: Office of United States Attorneys

               WASHINGTON – Robbie Terrell Clark, 27, of Washington D.C., was sentenced today in U.S. District Court to 108 months in federal prison for his role in the September 2022 kidnapping and robbery of a pair of victims in Alexandria, Virginia. 

               The sentence was announced by U.S. Attorney Edward R. Martin Jr. for the District of Columbia and FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division. 

               Clark pleaded guilty on May 21, 2024, before U.S. District Court Judge Amy Berman Jackson, to one count of conspiracy to commit kidnapping. In addition to the 108-month prison-term, Judge Berman Jackson ordered Clark to serve four years of supervised release. 

               According to court documents, Clark and his co-conspirators stalked their intended victims before kidnapping and robbing them at gunpoint inside their Alexandria, Virginia apartment building. On September 2, 2022, the co-conspirators planted a GPS tracking device on one of the victim’s Mercedes, which they used to monitor the victims’ locations.  

               On September 3, 2022, the victims attended a family gathering in Maryland. Seizing the opportunity to catch their victims unaware, Clark and his co-conspirators traveled from Washington, D.C. to Virginia in a stolen white Kia and to the victim’s home, where they laid in wait, armed with guns and carrying zip ties. Clark and his co-conspirators were wearing dark clothing, masks, and latex gloves.

               When the victims returned home later that night, Clark and his co-conspirators ambushed them in their parking garage at gunpoint, stealing two Audemars Piguet watches worth $120,000, another $63,500 worth of jewelry, other clothing, and the keys to a victim’s Mercedes.

               After robbing them, and pistol-whipping them with their guns, Clark and the co-conspirators led the victim couple to one of the victim’s apartments. Inside, the co-conspirators continued to hold the victims at gunpoint and ransacked the residence, demanding money. The co-conspirators were unable to locate any money before a security alarm was triggered and the co-conspirators fled, leaving behind several plastic zip ties. 

               Clark and his co-conspirators fled the apartment building shortly before 2 a.m. on September 4, 2022, in the stolen white Kia and the victims’ Mercedes and returned to the District. Law enforcement found the stolen Mercedes hours later in Maryland with the GPS tracking device still attached. Following a lengthy investigation, Clark was identified as a participant and arrested on August 16, 2023, in Washington, D.C. He has been held since.

               At the time of the incident, Clark had a felony conviction in Maryland for possessing a handgun in a vehicle. 

               Clark’s co-conspirator, Tyree McCombs, pleaded guilty on August 14, 2024, to conspiracy to interfere with interstate commerce by robbery in connection with this offense as well as to a separate kidnapping committed two months later. McCombs is awaiting sentencing.

               This case was investigated by FBI Washington Field Office’s Violent Crimes Task Force. The Fairfax County Police Department assisted with the investigation. The matter is being prosecuted by Assistant U.S. Attorney Charles Jones for the District of Columbia.

    22cr377

    MIL Security OSI

  • MIL-OSI USA: Lummis, Kelly Introduce Bipartisan, Bicameral Commercial Driver’s License Reforms  

    US Senate News:

    Source: United States Senator for Wyoming Cynthia Lummis
    WASHINGTON, D.C. – U.S. Senators Cynthia Lummis (R-WY) and Mark Kelly (D-AZ) introduced the Licensing Individual Commercial Exam-takers Now Safely and Efficiently (LICENSE) Act to help ease supply chain challenges by increasing the number of truck drivers in the U.S. The bill builds on waivers the Federal Motor Carrier Safety Administration (FMCSA) implemented during the COVID-19 pandemic.
    “Wyoming relies on America’s truck drivers to deliver goods to folks and small businesses throughout our rural state,” said Lummis. “Streamlining commercial driver’s licensing and cutting this burdensome red tape will ensure the people in the Cowboy State can rely on deliveries so they get the resources they need. I’m proud to work with Senator Kelly to reform the licensing process for America’s truckers.”
    “Arizona’s economy relies on the commercial drivers who work hard to keep goods moving across the nation,” said Kelly. “I’m glad to work with my colleague Senator Lummis to cut red tape, support the trucking industry, and ensure the federal government is doing everything it can to strengthen our economy and lower costs for families in Arizona.” 
    “When the Federal Motor Carrier Safety Administration (FMCSA) provided flexibility on several regulatory requirements during the COVID-19 public health emergency, drivers and motor carriers gained new operational efficiencies without compromising safety,” said American Trucking Associations Senior Vice President of Regulatory & Safety Policy Dan Horvath.  “The LICENSE Act leverages the lessons learned during the pandemic and makes permanent two commonsense waivers that were reissued numerous times since 2020 to reduce administrative burdens for Americans pursuing rewarding careers in the trucking industry. The incorporation of these waivers into law by enactment of the LICENSE Act will provide certainty to the trucking industry and strengthen our supply chain by permanently removing these unnecessary bureaucratic barriers.  This represents an important step toward making it more efficient and simpler for drivers to obtain their CDLs while keeping our roadways safe.”
    “During the past several years that these waivers have been in effect, they have proven that they strike the appropriate balance between maintaining high safety standards while making it easier for aspiring truck drivers to obtain their CDLs.  That’s why DOT reissued them multiple times throughout the pandemic.  Now it is time to provide certainty to the trucking industry by making these effective waivers permanent,” said Wyoming Trucking Association President & CEO Kevin Hawley.  “The LICENSE Act would make a commonsense change to streamline the arduous process for obtaining a CDL, removing unnecessary burdens on our drivers and supply chain.  We commend Senator Lummis for once again standing up for truckers, helping more people to obtain good-paying jobs, and growing Wyoming’s economy.”
    “The LICENSE Act streamlines the CDL testing process by allowing states to test applicants regardless of their residency or training location,” said Ryan Streblow, President and CEO of the National Tank Truck Carriers. “This efficiency is a commonsense solution that aims to address tank truck workforce shortages and strengthen our supply chain.”
    “CVTA members are pleased to see swift reintroduction of the LICENSE Act,” said Danny Bradford, Chairman of the Commercial Vehicle Training Association (CVTA). “This bill reduces bureaucratic barriers that delay new drivers from receiving their Commercial Driver’s License (CDL). We urge Congress to quickly pass this bill as part of an agenda to unleash record growth in the U.S. economy.”
    The LICENSE Act will:
    Expand CDL Testing: State and third-party examiners would be authorized to administer both the CDL skills and knowledge tests, speeding up the licensing process without compromising safety.
    Provide Flexible Supervision for CLP Holders: Licensed drivers accompanying commercial learner’s permit (CLP) holders could move to the sleeper berth of the truck, recognizing that many CLP holders have already passed their road tests and are waiting on their official CDL.
    Streamline Testing Across States: States would be allowed to administer driving skills tests to applicants from other states, making it easier for future truckers to complete testing close to home.
    The LICENSE Act is endorsed by: 
    The Agricultural & Food Transporters Conference (AFTC), the American Trucking Associations (ATA), the Automobile Carriers Conference (ACC), the Commercial Vehicle Training Association (CVTA), the Government Freight Conference (GFC), the Intermodal Motor Carriers Conference (IMCC), the Moving and Storage Conference (MSC), the National Tank Truck Carriers (NTTC), and the Truckload Carriers Association (TCA)
    To read the bill, click here.

    MIL OSI USA News

  • MIL-OSI Global: Can Trump just order new names for Denali and the Gulf of Mexico? A geographer explains who decides what goes on the map

    Source: The Conversation – USA – By Innisfree McKinnon, Associate Professor of Geography, University of Wisconsin-Stout

    Known as Mount McKinley until 2015, Denali’s current name reflects what Native Alaskans call the mountain. Arterra/Universal Images Group via Getty Images

    President Donald Trump’s executive order to rename the Gulf of Mexico and Alaska’s Denali, the tallest peak in the country, has resulted in lots of discussion. While for some, such renaming might seem less important than the big problems the country faces, there is a formal process in the United States for renaming places, and that process is taken seriously.

    Usually, so people don’t get confused, official, agreed-upon names are used by the government. In the U.S., place names are standardized by the U.S. Board on Geographic Names, which is part of the U.S. Geological Survey, the agency in charge of making maps.

    In his executive order, Trump asks the Board on Geographic Names “to honor the contributions of visionary and patriotic Americans” and change its policies and procedures to reflect that.

    Usually, renaming a place starts locally. The people in the state or county propose a name change and gather support. The process in each state is different.

    Lake Bde Maka Ska, formerly Lake Calhoun, is the largest lake in Minneapolis.
    YinYang/E+ via Getty

    How to change a place name

    Minnesota recently changed the name of a large lake in Minneapolis to Bde Maka Ska, which the Minneapolis Park Board described as “a Dakota name for the lake that has been passed down in oral history for many years.”

    The board voted to change the name and took its request to the county commissioners. When the county agreed, the request was then sent to the Minnesota Department of Natural Resources, which made it official for Minnesota. Then, the state of Minnesota sent the request to the Board on Geographic Names, which made it official for the entire U.S.

    It’s a lot of paperwork for something so seemingly minor, but people get passionate about place names. It took 40 years to rename Denali from the name established in the late 19th century, Mount McKinley.

    The state of Alaska requested the name change in 1975, but the Board on Geographic Names didn’t take action. Members of the Ohio congressional delegation – President William McKinley was from Ohio – objected over many years to requests to rename the mountain, and the board did not act on those requests.

    The president appoints the secretary of the Interior Department. The secretary works with the heads of related agencies to appoint the Board on Geographic Names. Current committee policy states, “Input from State geographic names authorities, land
    management agencies, local governments, and Tribal Governments
    are actively pursued.”

    In 2015, President Barack Obama named a new leader for the Department of the Interior, Sally Jewell. Just as Obama made a trip to Alaska in late August 2015, Jewell declared the name change official under a law that allows the secretary of the Interior to change a name if the board doesn’t act on the proposal in a “reasonable” amount of time.

    “This name change recognizes the sacred status of Denali to many Alaska Natives,” Jewell said. “The name Denali has been official for use by the State of Alaska since 1975, but even more importantly, the mountain has been known as Denali for generations. With our own sense of reverence for this place, we are officially renaming the mountain Denali in recognition of the traditions of Alaska Natives and the strong support of the people of Alaska.”

    If someone objects to a name change, they could ask the courts to rule on whether the name change was made legally. Going back to Bde Maka Ska, some people objected to changing the name from Lake Calhoun, so they took the state natural resources agency to court. Eventually, the Minnesota Supreme Court ruled that the name change was done correctly.

    Alaska’s two U.S. senators and prominent state figures have strongly objected to Trump’s renaming attempt.

    How not to change a place name

    Renaming the Gulf of Mexico is a different kind of case, however, from renaming a geographic place within U.S. borders.

    The gulf is not within the territorial U.S. On the coast, the first 12 miles from shore are considered part of that country, but outside of that is international waters.

    The Board on Geographic Names could change the name to Gulf of America on official U.S. maps, but there is no international board in charge of place names. Each country decides what to call places. And there is no official way for the U.S. to make other countries change the name.

    It’s possible that the U.S. could formally ask other countries to change the name, or even impose sanctions against countries that don’t comply.

    If the names were officially changed in the U.S., the government would use the new names in official documents, signage and maps. As for all the people and companies in the world that make maps, they usually use the official names. But there is nothing that would force them to, if they believed that a certain name is more widely recognized.

    Innisfree McKinnon 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. Can Trump just order new names for Denali and the Gulf of Mexico? A geographer explains who decides what goes on the map – https://theconversation.com/can-trump-just-order-new-names-for-denali-and-the-gulf-of-mexico-a-geographer-explains-who-decides-what-goes-on-the-map-248112

    MIL OSI – Global Reports

  • MIL-OSI: Northrim BanCorp Earns $10.9 Million, or $1.95 Per Diluted Share, in Fourth Quarter 2024, and $37.0 Million, or $6.62 Per Diluted Share, for the Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, Jan. 24, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $10.9 million, or $1.95 per diluted share, in the fourth quarter of 2024, compared to $8.8 million, or $1.57 per diluted share, in the third quarter of 2024, and $6.6 million, or $1.19 per diluted share, in the fourth quarter a year ago. The increase in the fourth quarter of 2024 compared to the third quarter of 2024 is primarily due to an increase in purchased receivable income due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to factoring and asset-based lending in the United States, Canada, and the United Kingdom. Additionally, in the fourth quarter of 2024 the Company had an increase in mortgage banking income, primarily as a result of an increase in the fair value of a mortgage servicing portfolio that the Company purchased from another financial institution in the fourth quarter. The increase profitability in the fourth quarter of 2024 as compared to the same quarter of the prior year was largely driven by an increase in mortgage banking income and higher net interest income, as well as an increase in purchased receivable income as noted above, which was only partially offset by higher other operating expenses and an increase in the provision for credit losses.

    Net income for the full year of 2024 increased 46% to $37.0 million, or $6.62 per diluted share, compared to $25.4 million, or $4.49 per diluted share, for the full year of 2023. Increased net interest income resulting from loan and deposit growth supported 2024 earnings in the Community Banking segment but were offset by increases in other operating expenses, primarily in salaries and other personnel expense as the Company continued to expand its branch network into new markets in Alaska. An increase in mortgage originations and an increase in the fair value of mortgage servicing rights resulted in net income of $4.4 million in the Home Mortgage Lending segment in 2024 compared to a $2.5 million loss in 2023.

    Dividends per share in the fourth quarter of 2024 remained consistent with the third quarter of 2024 at $0.62 per share and increased from $0.60 per share in the fourth quarter of 2023.

    “Northrim reported record core earnings in 2024 and record earnings per share in the fourth quarter,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We are pleased with our results as we continue to focus on profitable growth. In the last five years Northrim’s deposit market share in Alaska has increased from 11% to 16%, loans and deposits have increased by almost 100%, and net interest income has increased by 60%.”

    “2024 results were also supported by an improvement in mortgage banking income,” continued Mr. Huston. “We believe the acquisition of Sallyport in the fourth quarter will further diversify fee income and provide attractive risk-adjusted returns to Northrim shareholders.”

    Fourth Quarter 2024 Highlights:

    • Net interest income in the fourth quarter of 2024 increased 7% to $30.8 million compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.47% for the fourth quarter of 2024, a 12-basis point increase from the third quarter of 2024 and a 35-basis point increase compared to the fourth quarter of 2023.
    • Return on average assets (“ROAA”) was 1.43% and return on average equity (“ROAE”) was 16.32% for the fourth quarter of 2024.
    • Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago, primarily due to new customer relationships, expanding market share, and to retaining certain mortgage loans originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”), in the loan portfolio.
    • Total deposits were $2.68 billion at December 31, 2024, up 2% from the preceding quarter, and up 8% from $2.49 billion a year ago. Noninterest bearing demand deposits represented 27% of total deposits at December 31, 2024, down from 29% at September 30, 2024 and 31% at December 31, 2023.
    • Total assets at December 31, 2024 exceeded $3 billion for the first time.
    • The average cost of interest-bearing deposits was 2.15% in the fourth quarter of 2024, down from 2.24% in the third quarter of 2024 and up from 2.00% in the fourth quarter a year ago.
    • Acquired Sallyport for approximately $53.9 million (approximately $47.9 million in cash and $6 million in an earn-out payable over 3 years) on October 31, 2024.
       
    Financial Highlights Three Months Ended
    (Dollars in thousands, except per share data) December 31,
    2024
    September 30,
    2024
    June 30, 2024 March 31, 2024 December 31,
    2023
    Total assets $3,041,869   $2,963,392   $2,821,668   $2,759,560   $2,807,497  
    Total portfolio loans $2,129,263   $2,007,565   $1,875,907   $1,811,135   $1,789,497  
    Total deposits $2,680,189   $2,625,567   $2,463,806   $2,434,083   $2,485,055  
    Total shareholders’ equity $267,116   $260,050   $247,200   $239,327   $234,718  
    Net income $10,927   $8,825   $9,020   $8,199   $6,613  
    Diluted earnings per share $1.95   $1.57   $1.62   $1.48   $1.19  
    Return on average assets 1.43 % 1.22 % 1.31 % 1.19 % 0.93 %
    Return on average shareholders’ equity 16.32 % 13.69 % 14.84 % 13.84 % 11.36 %
    NIM 4.41 % 4.29 % 4.24 % 4.16 % 4.06 %
    NIMTE* 4.47 % 4.35 % 4.30 % 4.22 % 4.12 %
    Efficiency ratio 66.96 % 66.11 % 68.78 % 68.93 % 72.21 %
    Total shareholders’ equity/total assets 8.78 % 8.78 % 8.76 % 8.67 % 8.36 %
    Tangible common equity/tangible assets* 7.23 % 8.28 % 8.24 % 8.14 % 7.84 %
    Book value per share $48.41   $47.27   $44.93   $43.52   $42.57  
    Tangible book value per share* $39.17   $44.36   $42.03   $40.61   $39.68  
    Dividends per share $0.62   $0.62   $0.61   $0.61   $0.60  
    Common shares outstanding 5,518,210   5,501,943   5,501,562   5,499,578   5,513,459  
                         

    * References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. Please refer to the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information in this section are listed on page 13.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in November 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 2.4% or 7,700 jobs between November 2023 and November 2024.

    According to the DOL, Construction had the largest growth in new jobs in Alaska through November compared to the prior year. The Construction sector added 2,100 positions for a year over year growth rate of 12.7% in November 2024. The larger Health Care sector grew by 1,500 jobs for an annual growth rate of 3.7%. The Oil & Gas sector increased by 9.2% or 700 new direct jobs. Transportation, Warehousing and Utilities added 1,000 jobs for a 4.5% growth rate. Professional and Business Services increased 700 jobs year over year through November 2024, up 2.5%.

    The Government sector grew by 1,200 jobs for 1.5% growth, adding 100 Federal jobs, 800 State and 300 Local government positions in Alaska over the same period. Declining sectors between November 2023 and November 2024 were Manufacturing (primarily seafood processing) shrinking 500 jobs (-6.6%), Information, down 100 jobs (-2.2%), and Retail lost 100 jobs (-0.3%).

    Alaska’s Gross State Product (“GSP”) in the third quarter of 2024, exceeded $70 billion for the first time, and is estimated to be $70.1 billion in current dollars, according to the Federal Bureau of Economic Analysis (“BEA”). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. In the third quarter of 2024 Alaska GSP increased at an annualized rate of 2.2%, compared to the average U.S. growth rate of 3.1%. Alaska’s real GSP improvement in the third quarter of 2024 was primarily caused by growth in the Health Care, Trade, Transportation and Warehousing sectors.

    The BEA also calculated Alaska’s seasonally adjusted personal income at $55.7 billion in the third quarter of 2024. This was an annualized improvement in the third quarter of 3.3% for Alaska, compared to the national average of 3.2%. Alaska enjoyed an annual personal income improvement of 3.8% in 2023. The $445 million increase in personal income in the third quarter in Alaska came from a $310 million increase in net earnings from wages, $145 million growth in government transfer receipts (which grew in all 50 states), and a $10 million decrease in investment income.

    The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April 2024 and most recently averaged $72.50 in November 2024. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024 and is projected to increase to 467 thousand bpd in Alaska’s fiscal year 2025. The DOR expects production to continue to grow rapidly to 657 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is reportedly developing the large new Willow field. There are also a number of smaller new fields in Alaska’s North Slope that are contributing to the State of Alaska’s production growth estimates.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $509,994, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 3.9% in 2024 to $412,907, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

    The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or 0.2%.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: http://www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the fourth quarter of 2024, Northrim generated a ROAA of 1.43% and a ROAE of 16.32%, compared to 1.22% and 13.69%, respectively, in the third quarter of 2024 and 0.93% and 11.36%, respectively, in the fourth quarter a year ago. For the year 2024, Northrim generated a ROAA of 1.29% and a ROAE of 14.70%, compared to 0.94% and 11.17% for 2023.

    Net Interest Income/Net Interest Margin

    Net interest income increased 7% to $30.8 million in the fourth quarter of 2024 compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023. Interest expense on deposits increased to $10.6 million in the fourth quarter compared to $10.1 million in the third quarter of 2024 and $8.7 million in the fourth quarter of 2023.

    NIMTE* was 4.47% in the fourth quarter of 2024 compared to 4.35% in the preceding quarter and 4.12% in the fourth quarter a year ago. NIMTE* increased 12 basis points in the fourth quarter of 2024 compared to the prior quarter and 35 basis points compared to the fourth quarter of 2023 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher earning-assets, and higher yields on those assets which were only partially offset by an increase in costs on interest-bearing deposits. The weighted average interest rate for new loans booked in the fourth quarter of 2024 was 7.23% compared to 7.24% in the third quarter of 2024 and 7.74% in the fourth quarter a year ago. The yield on the investment portfolio increased to 2.84% from 2.80% in the third quarter of 2024 and increased from 2.48% in the fourth quarter of 2023. “We are beginning to see improvements in our net interest margin as a result of lower deposit costs from the recent Fed interest rate cuts, in addition to the benefit of new loan volume and loan repricing driving our net interest margin to 4.47% for the fourth quarter,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.16% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of September 30, 2024.

    Provision for Credit Losses

    Northrim recorded a provision for credit losses of $1.2 million in the fourth quarter of 2024, which includes a $125,000 provision for credit losses on purchased receivables, $107,000 benefit to the provision for credit losses on unfunded commitments, and a provision for credit losses on loans of $1.2 million. This compares to a provision for credit losses of $2.1 million in the third quarter of 2024, and a provision for credit losses of $885,000 in the fourth quarter a year ago. The $1.2 million provision for credit losses in the fourth quarter of 2024 is largely attributable to increases in loan and purchased receivable balances.

    Nonperforming loans, net of government guarantees, increased during the quarter to $7.5 million at December 31, 2024, compared to $5.0 million at both September 30, 2024 and December 31, 2023.

    The allowance for credit losses was 292% of nonperforming loans, net of government guarantees, at the end of the fourth quarter of 2024, compared to 394% three months earlier and 345% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $13.0 million, or 30% of total fourth quarter 2024 revenues, as compared to $11.6 million, or 29% of revenues in the third quarter of 2024, and $6.5 million, or 20% of revenues in the fourth quarter of 2023. The increase in other operating income in the fourth quarter of 2024 as compared to the preceding quarter and the fourth quarter of 2023 is largely the result of higher purchased receivable income due to the acquisition of Sallyport. Additionally, other operating income in the fourth quarter of 2024 as compared to the fourth quarter a year ago increased due to an increase in mortgage banking income arising from higher volume of mortgage activity and an increase in the value of mortgage servicing rights. The changes in mortgage banking are discussed further in the Home Mortgage Lending section below.

    Other Operating Expenses

    Operating expenses were $29.4 million in the fourth quarter of 2024, compared to $26.7 million in the third quarter of 2024, and $24.0 million in the fourth quarter of 2023. The increase in other operating expenses in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to an increase in salaries and other personnel expense, as well as increases in professional fees from one-time deal costs associated with the acquisition of Sallyport and insurance expense due to higher FDIC insurance costs due to the Company’s asset and net income growth.

    Income Tax Provision

    In the fourth quarter of 2024, Northrim recorded $2.4 million in state and federal income tax expense for an effective tax rate of 17.8%, compared to $2.8 million, or 24.2% in the third quarter of 2024 and $1.7 million, or 20.7% in the fourth quarter a year ago. For the year, Northrim recorded $10.0 million in state and federal income tax expense in 2024 for an effective tax rate of 21.3%, compared to $6.2 million, or 19.7% in 2023. The decrease in the tax rate in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago is primarily the result of increased tax benefits related to the Company’s investment in low income housing tax credits and the purchase of renewable energy tax credits.

    Community Banking

    In the most recent deposit market share data from the FDIC, Northrim’s deposit market share in Alaska increased to 15.66% of Alaska’s total deposits as of June 30, 2024 compared to 15.04% of Alaska’s total deposits as of June 30, 2023. This represents 62 basis points of growth in market share percentage for Northrim during that period while, according to the FDIC, the total deposits in Alaska were up 2.3% during the same period. Northrim opened a branch in Kodiak in the first quarter of 2023, a loan production office in Homer in the second quarter of 2023, a permanent branch in Nome in the third quarter of 2023, and a branch in Homer in the first quarter of 2024. See below for further discussion regarding the Company’s deposit movement for the quarter.

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as “distressed or underserved non-metropolitan middle-income geographies”.

    Net interest income in the Community Banking segment totaled $27.6 million in the fourth quarter of 2024, compared to $25.9 million in the third quarter of 2024 and $24.2 million in the fourth quarter of 2023. Net interest income increased in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago mostly due to increased interest income on loans that was only partially offset by higher interest expense on deposits.

    The following table provides highlights of the Community Banking segment of Northrim:

       
      Three Months Ended
    (Dollars in thousands, except per share data) December
    31, 2024
    September 30,
    2024
    June 30, 2024 March 31,
    2024
    December
    31, 2023
    Net interest income $27,643   $25,928   $24,318   $24,215   $24,221  
    Provision (benefit) for credit losses 771   1,492   (184 ) 197   885  
    Other operating income 2,535   3,507   2,450   2,468   2,741  
    Other operating expense 19,116   18,723   18,068   17,177   18,158  
    Income before provision for income taxes 10,291   9,220   8,884   9,309   7,919  
    Provision for income taxes 1,474   2,133   1,786   1,966   1,604  
    Net income Community Banking segment $8,817   $7,087   $7,098   $7,343   $6,315  
    Weighted average shares outstanding, diluted 5,597,889   5,583,055   5,558,580   5,554,930   5,578,491  
    Diluted earnings per share $1.58   $1.26   $1.27   $1.32   $1.14  
                         
      Year Ended
    (Dollars in thousands, except per share data) December
    31, 2024
    December
    31, 2023
    Net interest income $102,104   $95,555  
    Provision for credit losses 2,276   3,842  
    Other operating income 10,960   9,130  
    Other operating expense 73,085   69,253  
    Income before provision for income taxes 37,703   31,590  
    Provision for income taxes 7,359   6,175  
    Net income Community Banking segment $30,344   $25,415  
    Weighted average shares outstanding, diluted 5,583,983   5,661,460  
    Diluted earnings per share $5.43   $4.49  
             

    Home Mortgage Lending

    During the fourth quarter of 2024, mortgage loans funded for sale decreased to $162.5 million, of which 89% was for home purchases, compared to $210.0 million and 94% of loans funded for home purchases in the third quarter of 2024, and increased as compared to $79.7 million, of which 96% was for home purchases in the fourth quarter of 2023.

    During the fourth quarter of 2024, the Bank purchased Residential Mortgage-originated mortgage loans to hold on the Bank’s balance sheet of $23.4 million of which roughly two-thirds were jumbos and one-third were mortgages for second homes, with a weighted average interest rate of 6.30%, down from $38.1 million and 6.59% in the third quarter of 2024, and down from $27.1 million and 7.05% in the fourth quarter of 2023. Mortgage loans funded for investment has increased net interest income in the Home Mortgage Lending segment. Net interest income contributed $3.3 million to total revenue in the fourth quarter of 2024, up from $2.9 million in the prior quarter, and up from $2.3 million in the fourth quarter a year ago.

    The Arizona, Colorado, and the Pacific Northwest mortgage expansion markets were responsible for 19% of Residential Mortgage’s $186 million total production in the fourth quarter of 2024, 20% of the $248 million total production in the third quarter of 2024, and 11% of the $107 million in total production in the fourth quarter of 2023.

    The net change in fair value of mortgage servicing rights increased mortgage banking income by $873,000 during the fourth quarter of 2024 compared to a decrease of $968,000 for the third quarter of 2024 and a decrease of $1.0 million for the fourth quarter of 2023. In the fourth quarter of 2024, the Bank purchased an Alaska Housing Finance Corporation (AHFC) servicing portfolio from another financial institution for $2.3 million. At December 31, 2024, this servicing portfolio was valued at $3.1 million resulting in a $750,000 increase in fair value. Mortgage servicing revenue increased to $2.8 million in the fourth quarter of 2024 from $2.6 million in the prior quarter and increased from $2.2 million in the fourth quarter of 2023 due to an increase in production of AHFC mortgages, which contribute to servicing revenues at origination. In the fourth quarter of 2024, the Company’s mortgage servicing portfolio increased to $294.1 million, which includes the purchase of the AHFC servicing portfolio of $235.6 million, $86.3 million in new mortgage loans, net of amortization and payoffs of $27.8 million as compared to a net increase of $64.8 million in the third quarter of 2024 and $62.4 million in the fourth quarter of 2023.

    As of December 31, 2024, Northrim serviced 6,378 loans in its $1.46 billion home mortgage servicing portfolio, a 25% increase compared to the $1.17 billion serviced as of the end of the third quarter of 2024, and a 40% increase from the $1.04 billion serviced a year ago.

    The following table provides highlights of the Home Mortgage Lending segment of Northrim:

       
      Three Months Ended
    (Dollars in thousands, except per share data) December
    31, 2024
    September 30,
    2024
    June 30, 2024 March 31,
    2024
    December
    31, 2023
    Mortgage loan commitments $32,299   $77,591   $88,006   $56,208   $22,926  
               
    Mortgage loans funded for sale $162,530   $209,960   $152,339   $84,324   $79,742  
    Mortgage loans funded for investment 23,380   38,087   29,175   17,403   27,114  
    Total mortgage loans funded $185,910   $248,047   $181,514   $101,727   $106,856  
    Mortgage loan refinances to total fundings 11 % 6 % 6 % 4 % 4 %
    Mortgage loans serviced for others $1,460,720   $1,166,585   $1,101,800   $1,060,007   $1,044,516  
               
    Net realized gains on mortgage loans sold $3,747   $5,079   $3,188   $1,980   $1,462  
    Change in fair value of mortgage loan commitments, net (665 ) 60   391   386   (296 )
    Total production revenue 3,082   5,139   3,579   2,366   1,166  
    Mortgage servicing revenue 2,847   2,583   2,164   1,561   2,180  
    Change in fair value of mortgage servicing rights:          
    Due to changes in model inputs of assumptions1 1,372   (566 ) 239   289   (707 )
    Other2 (499 ) (402 ) (320 ) (314 ) (301 )
    Total mortgage servicing revenue, net 3,720   1,615   2,083   1,536   1,172  
    Other mortgage banking revenue 238   293   222   129   99  
    Total mortgage banking income $7,040   $7,047   $5,884   $4,031   $2,437  
               
    Net interest income $3,280   $2,941   $2,775   $2,232   $2,276  
    Provision (benefit) for credit losses 305   571   64   (48 )  
    Mortgage banking income 7,040   7,047   5,884   4,031   2,437  
    Other operating expense 7,198   7,643   6,697   6,086   5,477  
    Income before provision for income taxes 2,817   1,774   1,898   225   (764 )
    Provision for income taxes 842   497   532   63   (215 )
    Net (loss) income Home Mortgage Lending segment $1,975   $1,277   $1,366   $162   ($549 )
               
    Weighted average shares outstanding, diluted 5,597,889   5,583,055   5,558,580   5,554,930   5,769,415  
    Diluted (loss) earnings per share $0.35   $0.23   $0.25   $0.03   ($0.10 )
    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.
                         
       
      Year Ended
    (Dollars in thousands, except per share data) December
    31, 2024
    December
    31, 2023
    Mortgage loans funded for sale $609,153   $376,154  
    Mortgage loans funded for investment 108,045   146,258  
    Total mortgage loans funded $717,198   $522,412  
    Mortgage loan refinances to total fundings 7 % 4 %
         
    Net realized gains on mortgage loans sold $13,994   $7,828  
    Change in fair value of mortgage loan commitments, net 172   (102 )
    Total production revenue 14,166   7,726  
    Mortgage servicing revenue 9,155   7,368  
    Change in fair value of mortgage servicing rights:    
    Due to changes in model inputs of assumptions1 1,334   (922 )
    Other2 (1,535 ) (1,765 )
    Total mortgage servicing revenue, net 8,954   4,681  
    Other mortgage banking revenue 882   356  
    Total mortgage banking income $24,002   $12,763  
         
    Net interest income $11,228   $7,298  
    Provision for credit losses 892    
    Mortgage banking income 24,002   12,763  
    Other operating expense 27,624   23,497  
    Income before provision for income taxes 6,714   (3,436 )
    Provision for income taxes 1,934   (943 )
    Net (loss) income Home Mortgage Lending segment $4,780   ($2,493 )
         
    Weighted average shares outstanding, diluted 5,583,983   5,661,460  
    Diluted (loss) earnings per share $0.86   ($0.44 )
    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates. 
    2Represents changes due to collection/realization of expected cash flows over time.
     

    Specialty Finance

    On October 31, 2024, the Company completed the acquisition of Sallyport Commercial Finance, LLC in an all cash transaction valued at approximately $53.9 million. Sallyport Commercial Finance, LLC is a leading provider of factoring, asset based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom. The Company determined that a new Specialty Finance segment was appropriate for the Company upon the completion of the acquisition. The Specialty Finance segment also includes Northrim Funding Services, a division of Northrim Bank that has offered factoring solutions to small businesses since 2004. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also include interest income and other fee income.

    The acquisition of Sallyport included $1.13 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter and full year of 2024 in the tables below. Total pre-tax income for Sallyport for two months of operations, excluding transaction costs was $945,000.

    The following table provides highlights of the Specialty Finance segment of Northrim:

       
      Three Months Ended
    (Dollars in thousands, except per share data) December
    31, 2024
    September 30,
    2024
    June 30, 2024 March 31,
    2024
    December
    31, 2023
    Purchased receivable income $3,526   $1,033   $1,243   $1,345   $1,307  
    Other operating income (68 )        
    Interest income 407   158   170   212   235  
    Total revenue 3,865   1,191   1,413   1,557   1,542  
    Provision for credit losses 125          
    Other operating expense 3,063   362   429   374   358  
    Interest expense 489   185   210   212    
    Total expense 3,677   547   639   586   358  
    Income before provision for income taxes 188   644   774   971   1,184  
    Provision for income taxes 53   183   218   276   337  
    Net income Specialty Finance segment $135   $461   $556   $695   $847  
    Weighted average shares outstanding, diluted 5,597,889   5,583,055   5,558,580   5,554,930   5,578,491  
    Diluted earnings per share $0.02   $0.08   $0.10   $0.13   $0.15  
                         
      Year Ended
    (Dollars in thousands, except per share data) December
    31, 2024
    December
    31, 2023
    Purchased receivable income $7,147   $4,482  
    Other operating income (68 )  
    Interest income 947   403  
    Total revenue 8,026   4,885  
    Provision for credit losses 125    
    Other operating expense 4,228   1,431  
    Interest expense 1,096    
    Total expense 5,449   1,431  
    Income before provision for income taxes 2,577   3,454  
    Provision for income taxes 730   982  
    Net income Specialty Finance segment $1,847   $2,472  
    Weighted average shares outstanding, diluted 5,583,983   5,661,460  
    Diluted earnings per share $0.33   $0.44  
             

    Balance Sheet Review

    Northrim’s total assets were $3.04 billion at December 31, 2024, up 3% from the preceding quarter and up 8% from a year ago. Northrim’s loan-to-deposit ratio was 79% at December 31, 2024, up from 76% at September 30, 2024, and 72% at December 31, 2023.

    At December 31, 2024, our liquid assets and investments and loans maturing within one year were $1.01 billion and our funds available for borrowing under our existing lines of credit were $566.8 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.79 billion in the fourth quarter of 2024, up 4% from $2.67 billion in the third quarter of 2024 and up 7% from $2.61 billion in the fourth quarter a year ago. The average yield on interest-earning assets was 6.02% in the fourth quarter of 2024, up from 5.92% in the preceding quarter and 5.51% in the fourth quarter a year ago.

    Average investment securities decreased to $565.8 million in the fourth quarter of 2024, compared to $619.0 million in the third quarter of 2024 and $690.7 million in the fourth quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.84% for the fourth quarter of 2024, up from 2.80% in the preceding quarter and up from 2.48% in the year ago quarter. The average estimated duration of the investment portfolio at December 31, 2024, was approximately 2.4 years down from approximately 2.8 years a year ago. As of December 31, 2024, $79.0 million of available for sale securities are scheduled to mature in the next six months, $55.8 million are scheduled to mature in six months to one year, and $189.3 million are scheduled to mature in the following year, representing a total of $324.0 million or 12% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities increased by $678,000 in the fourth quarter of 2024 as compared to the prior quarter, and decreased by $9.1 million compared to the fourth quarter of 2023, resulting in a total unrealized loss of $8.3 million at December 31, 2024 compared to $7.6 million at September 30, 2024 and $17.4 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.5 years at the end of 2024. Total unrealized losses on held to maturity securities were $1.0 million at December 31, 2024, compared to $2.1 million at September 30, 2024, and $3.3 million a year ago.

    Average interest bearing deposits in other banks increased to $72.2 million in the fourth quarter from $28.4 million in the third quarter of 2024 due to higher deposit balances and maturing portfolio investments. Average interest bearing deposits in other banks decreased in the fourth quarter of this year compared to $126.2 million in the fourth quarter of 2023 as cash was used to fund the growing loan portfolio.

    Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.86 million at December 31, 2024, up 6% or $99.9 million from $1.76 billion in the preceding quarter and up 14% from a year ago. This increase was diversified throughout the loan portfolio including commercial real estate nonowner-occupied and multi-family loans increasing by $35.1 million, construction loans increasing by $28.7 million, commercial loans increasing $24.9 million, and commercial real estate owner-occupied loans increasing $7.2 million from the preceding quarter. Average portfolio loans in the fourth quarter of 2024 were $2.07 billion, which was up 7% from the preceding quarter and up 18% from a year ago. Yields on average portfolio loans in the fourth quarter of 2024 increased slightly to 6.93% from 6.91% in the third quarter of 2024 and increased from 6.55% in the fourth quarter of 2023. The increase in the yield on portfolio loans in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to loan repricing due to the increases in interest rates and new loans booked at higher rates due to changes in the interest rate environment. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.40% in the fourth quarter of 2024 as compared to 7.43% in the third quarter of 2024 and 8.07% in the fourth quarter of 2023.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.68 billion at December 31, 2024, up 2% from $2.63 billion at September 30, 2024, and up 8% from $2.49 billion a year ago. “Our bankers are working hard to continue to bring over new relationships to the Bank, which is helping to magnify normal increases in deposit balances from our customers’ business cycles,” said Ballard. At December 31, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $61,000 as of December 31, 2024. Northrim had 26 customers with balances over $10 million as of December 31, 2024, which accounted for $612.9 million, or 24%, of total deposits. Demand deposits decreased by 8% from the prior quarter and decreased 6% year-over-year to $706.2 million at December 31, 2024. Demand deposits decreased to 27% of total deposits at December 31, 2024 compared to 29% at September 30, 2024 and 31% of total deposits at December 31, 2023. Average interest-bearing deposits were up 9% to $1.95 billion with an average cost of 2.15% in the fourth quarter of 2024, compared to $1.80 billion and an average cost of 2.24% in the third quarter of 2024, and up 13% compared to $1.72 billion and an average cost of 2.00% in the fourth quarter of 2023. Uninsured deposits totaled $1.08 billion or 40% of total deposits as of December 31, 2024 compared to $1.1 billion or 46% of total deposits as of December 31, 2022. As interest rates continued to increase in 2022, Northrim has taken a proactive, targeted approach to increase deposit rates.

    Shareholders’ equity was $267.1 million, or $48.41 book value per share, at December 31, 2024, compared to $260.1 million, or $47.27 book value per share, at September 30, 2024 and $234.7 million, or $42.57 book value per share, a year ago. Tangible book value per share* was $39.17 at December 31, 2024, compared to $44.36 at September 30, 2024, and $39.68 per share a year ago. The increase in shareholders’ equity in the fourth quarter of 2024 as compared to the third quarter of 2024 was largely the result of earnings of $10.9 million which was partially offset by dividends paid of $3.4 million and a decrease in the fair value of the available for sale securities portfolio, which decreased $678,000, net of tax. The Company did not purchase any shares of common stock in the fourth quarter of 2024 and had 110,000 shares remaining under the current share repurchase program as of December 31, 2024. Tangible common equity to tangible assets* was 7.23% as of December 31, 2024, compared to 8.28% as of September 30, 2024 and 7.84% as of December 31, 2023. The decrease in tangible common equity to tangible assets* was primarily due to $35.0 million of Goodwill booked as part of the acquisition of Sallyport. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.76% at December 31, 2024, compared to 11.53% at September 30, 2024, and 11.43% at December 31, 2023.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout the economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $11.6 million at December 31, 2024, up from $5.3 million at September 30, 2024 and from $5.8 million a year ago. Of the NPAs at December 31, 2024, $3.0 million, or 26% are nonaccrual loans related to three commercial relationships, $2.8 million, or 24% is related to a Sallyport nonaccrual loan, and $3.3 million, or 28% is related to one purchased receivable relationship.

    Net adversely classified loans were $9.6 million at December 31, 2024, as compared to $6.5 million at September 30, 2024, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. Net loan recoveries were $51,000 in the fourth quarter of 2024, compared to net loan recoveries of $96,000 in the third quarter of 2024, and net loan charge-offs of $96,000 in the fourth quarter of 2023.

    Northrim had $138.0 million, or 6% of total portfolio loans, in the Healthcare sector; $117.0 million, or 5% of portfolio loans, in the Tourism sector; $104.3 million, or 5% in the Accommodations sector; $87.4 million, or 4% in Retail loans; $84.6 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector; $76.5 million, or 4% in the Fishing sector; and $55.1 million, or 3% in the Restaurants and Breweries sector as of December 31, 2024.

    Northrim estimates that $99.7 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of December 31, 2024, and $1.6 million of these loans are adversely classified. As of December 31, 2024, Northrim has an additional $45.8 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and none of these unfunded commitments are considered to be adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

    http://www.northrim.com

    Forward-Looking Statement
    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our provision for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    http://www.mba.org

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials

                 
    Income Statement            
    (Dollars in thousands, except per share data) Three Months Ended   Year-to-date
    (Unaudited) December 31, September 30, December 31,   December 31, December 31,
      2024 2024 2023   2024 2023
    Interest Income:            
    Interest and fees on loans $37,059   $34,863   $29,508     $134,739   $108,612  
    Interest on investments 3,844   4,164   4,677     16,838   18,695  
    Interest on deposits in banks 883   389   1,743     2,342   4,644  
    Total interest income 41,786   39,416   35,928     153,919   131,951  
    Interest Expense:            
    Interest expense on deposits 10,568   10,123   8,676     39,347   26,511  
    Interest expense on borrowings 377   451   520     1,389   2,184  
    Total interest expense 10,945   10,574   9,196     40,736   28,695  
    Net interest income 30,841   28,842   26,732     113,183   103,256  
                 
    Provision for credit losses 1,201   2,063   885     3,293   3,842  
    Net interest income after provision for            
    loan losses 29,640   26,779   25,847     109,890   99,414  
                 
    Other Operating Income:            
    Mortgage banking income 7,040   7,047   2,437     24,002   12,763  
    Purchased receivable income 3,526   1,033   1,307     7,146   4,482  
    Bankcard fees 1,148   1,196   946     4,366   3,862  
    Service charges on deposit accounts 622   605   532     2,348   2,044  
    Gain on sale of securities 112         112    
    Unrealized gain (loss) on marketable equity securities (364 ) 576   565     465   120  
    Other income 949   1,130   698     3,602   3,104  
    Total other operating income 13,033   11,587   6,485     42,041   26,375  
                 
    Other Operating Expense:            
    Salaries and other personnel expense 18,254   17,549   15,417     67,847   61,741  
    Data processing expense 3,108   2,618   2,500     10,986   9,821  
    Occupancy expense 1,893   1,911   1,783     7,609   7,394  
    Professional and outside services 1,967   903   802     4,351   3,128  
    Marketing expense 965   860   933     3,028   2,929  
    Insurance expense 894   596   675     2,961   2,519  
    OREO expense, net rental income and gains on sale 2   2   (28 )   (385 ) (794 )
    Intangible asset amortization expense     6       17  
    Other operating expense 2,294   2,289   1,905     8,540   7,426  
    Total other operating expense 29,377   26,728   23,993     104,937   94,181  
                 
    Income before provision for income taxes 13,296   11,638   8,339     46,994   31,608  
    Provision for income taxes 2,369   2,813   1,726     10,023   6,214  
    Net income $10,927   $8,825   $6,613     $36,971   $25,394  
                 
    Basic EPS $1.99   $1.60   $1.19     $6.72   $4.53  
    Diluted EPS $1.95   $1.57   $1.19     $6.62   $4.49  
    Weighted average common shares outstanding, basic 5,509,078   5,501,943   5,513,041     5,502,797   5,601,471  
    Weighted average shares outstanding, diluted 5,597,889   5,583,055   5,578,491     5,583,983   5,661,460  
                           
    Balance Sheet      
    (Dollars in thousands)      
    (Unaudited) December 31, September 30, December 31,
      2024 2024 2023
           
    Assets:      
    Cash and due from banks $42,101   $42,805   $27,457  
    Interest bearing deposits in other banks 20,635   60,071   91,073  
    Investment securities available for sale, at fair value 478,617   545,210   637,936  
    Investment securities held to maturity 36,750   36,750   36,750  
    Marketable equity securities, at fair value 8,719   12,957   13,153  
    Investment in Federal Home Loan Bank stock 5,331   4,318   2,980  
    Loans held for sale 59,957   97,937   31,974  
    Portfolio loans 2,129,263   2,007,565   1,789,497  
    Allowance for credit losses, loans (22,020 ) (19,528 ) (17,270 )
    Net portfolio loans 2,107,243   1,988,037   1,772,227  
    Purchased receivables, net 74,078   23,564   36,842  
    Mortgage servicing rights, at fair value 26,439   21,570   19,564  
    Premises and equipment, net 37,757   39,625   40,693  
    Operating lease right-of-use assets 7,455   7,616   9,092  
    Goodwill and intangible assets 50,968   15,967   15,967  
    Other assets 85,819   66,965   71,789  
    Total assets $3,041,869   $2,963,392   $2,807,497  
           
    Liabilities:      
    Demand deposits $706,225   $763,595   $749,683  
    Interest-bearing demand 1,108,404   979,238   927,291  
    Savings deposits 250,900   245,043   255,338  
    Money market deposits 196,290   201,821   221,492  
    Time deposits 418,370   435,870   331,251  
    Total deposits 2,680,189   2,625,567   2,485,055  
    Other borrowings 23,045   13,354   13,675  
    Junior subordinated debentures 10,310   10,310   10,310  
    Operating lease liabilities 7,487   7,635   9,092  
    Other liabilities 53,722   46,476   54,647  
    Total liabilities 2,774,753   2,703,342   2,572,779  
           
    Shareholders’ Equity:      
    Total shareholders’ equity 267,116   260,050   234,718  
    Total liabilities and shareholders’ equity $3,041,869   $2,963,392   $2,807,497  
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans                        
      December 31,
    2024
      September 30,
    2024
      June 30, 2024   March 31, 2024   December 31,
    2023
      Balance % of
    total
      Balance % of
    total
      Balance % of
    total
      Balance % of
    total
      Balance % of
    total
    Commercial loans $518,148   24 %   $492,414   24 %   $495,781   26 %   $475,220   26 %   $486,057   27 %
    Commercial real estate:                            
    Owner occupied properties 420,060   20 %   412,827   20 %   383,832   20 %   372,507   20 %   368,357   20 %
    Nonowner occupied and multifamily properties 619,431   29 %   584,302   31 %   551,130   30 %   529,904   30 %   519,115   30 %
    Residential real estate:                            
    1-4 family properties secured by first liens 270,535   13 %   248,514   12 %   222,026   12 %   218,552   12 %   203,534   11 %
    1-4 family properties secured by junior liens & revolving secured by first liens 48,857   2 %   45,262   2 %   41,258   2 %   35,460   2 %   33,783   2 %
    1-4 family construction 39,789   2 %   39,794   2 %   29,510   2 %   27,751   2 %   31,239   2 %
    Construction loans 214,068   10 %   185,362   9 %   154,009   8 %   153,537   8 %   149,788   8 %
    Consumer loans 7,562   %   7,836   %   6,679   %   6,444   %   6,180   %
    Subtotal 2,138,450       2,016,311       1,884,225       1,819,375       1,798,053    
    Unearned loan fees, net (9,187 )     (8,746 )     (8,318 )     (8,240 )     (8,556 )  
    Total portfolio loans $2,129,263       $2,007,565       $1,875,907       $1,811,135       $1,789,497    
                                 
    Composition of Deposits                        
      December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
      Balance % of
    total
      Balance % of
    total
      Balance % of
    total
      Balance % of
    total
      Balance % of
    total
    Demand deposits $706,225   27 %   $763,595   29 %   $704,471   29 %   $714,244   29 %   $749,683   31 %
    Interest-bearing demand 1,108,404   41 %   979,238   37 %   906,010   36 %   889,581   37 %   927,291   37 %
    Savings deposits 250,900   9 %   245,043   9 %   238,156   10 %   246,902   10 %   255,338   10 %
    Money market deposits 196,290   7 %   204,821   8 %   195,159   8 %   209,785   9 %   221,492   9 %
    Time deposits 418,370   16 %   435,870   17 %   420,010   17 %   373,571   15 %   331,251   13 %
    Total deposits $2,680,189       $2,628,567       $2,463,806       $2,434,083       $2,485,055    
                                           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Asset Quality
    December 31, September 30, December 31,
        2024 2024 2023
      Nonaccrual loans $7,516   $4,944   $6,069  
      Loans 90 days past due and accruing 17   17    
      Total nonperforming loans 7,533   4,961   6,069  
      Nonperforming loans guaranteed by government     (1,067 )
      Net nonperforming loans 7,533   4,961   5,002  
      Repossessed assets 297   297    
      Nonperforming purchased receivables 3,768     808  
      Net nonperforming assets $11,598   $5,258   $5,810  
      Nonperforming loans, net of government guarantees / portfolio loans 0.35 % 0.25 % 0.28 %
      Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees 0.38 % 0.26 % 0.30 %
      Nonperforming assets, net of government guarantees / total assets 0.38 % 0.18 % 0.21 %
      Nonperforming assets, net of government guarantees / total assets net of government guarantees 0.40 % 0.19 % 0.21 %
                   
      Adversely classified loans, net of government guarantees $9,636   $6,503   $7,057  
      Special mention loans, net of government guarantees $19,769   $9,641   $6,580  
      Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans 0.03 % 0.08 % 0.03 %
      Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees 0.03 % 0.09 % 0.03 %
                   
      Allowance for credit losses – loans / portfolio loans 1.03 % 0.97 % 0.97 %
      Allowance for credit losses – loans / portfolio loans, net of government guarantees 1.10 % 1.04 % 1.02 %
      Allowance for credit losses – loans / nonperforming loans, net of government guarantees 292 % 394 % 345 %
                   
      Allowance for credit losses – purchased receivables / purchased receivables 4.69 % % %
      Allowance for credit losses – purchased receivables / nonperforming purchased receivables 97 % % %
                   
      Gross loan charge-offs for the quarter $149   $15   $281  
      Gross loan recoveries for the quarter ($200 ) ($111 ) ($185 )
      Net loan (recoveries) charge-offs for the quarter ($51 ) ($96 ) $96  
      Net loan (recoveries) charge-offs year-to-date ($215 ) ($164 ) ($38 )
      Net loan (recoveries) charge-offs for the quarter / average loans, for the quarter 0.00 % 0.00 % 0.01 %
      Net loan (recoveries) charge-offs year-to-date / average loans, year-to-date annualized (0.01 )% (0.01 )% 0.00 %
                   

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                            
      Three Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023
        Average     Average     Average
      Average Tax
    Equivalent
      Average Tax
    Equivalent
      Average Tax
    Equivalent
      Balance Yield/Rate   Balance Yield/Rate   Balance Yield/Rate
    Assets              
    Interest bearing deposits in other banks $72,212   4.72 %   $28,409   5.28 %   $126,174   5.40 %
    Portfolio investments 565,785   2.84 %   619,012   2.80 %   690,659   2.48 %
    Loans held for sale 83,304   5.97 %   93,689   6.20 %   45,732   6.55 %
    Portfolio loans 2,066,216   6.93 %   1,933,181   6.91 %   1,749,732   6.55 %
    Total interest-earning assets 2,787,517   6.02 %   2,674,291   5.92 %   2,612,297   5.51 %
    Nonearning assets 251,364       196,266       214,934    
    Total assets $3,038,881       $2,870,557       $2,827,231    
                   
    Liabilities and Shareholders Equity              
    Interest-bearing deposits $1,954,495   2.15 %   $1,796,107   2.24 %   $1,724,409   2.00 %
    Borrowings 29,251   3.95 %   43,555   4.07 %   47,964   4.25 %
    Total interest-bearing liabilities 1,983,746   2.18 %   1,839,662   2.29 %   1,772,373   2.06 %
                   
    Noninterest-bearing demand deposits 738,911       722,000       760,566    
    Other liabilities 49,815       52,387       63,321    
    Shareholders’ equity 266,409       256,508       230,971    
    Total liabilities and shareholders’ equity $3,038,881       $2,870,557       $2,827,231    
    Net spread   3.84 %   3.63 %     3.45 %
    NIM   4.41 %   4.29 %     4.06 %
    NIMTE*   4.47 %   4.35 %     4.12 %
    Cost of funds   1.59 %   1.64 %     1.44 %
    Average portfolio loans to average interest-earning assets 74.12 %     72.29 %     66.98 %  
    Average portfolio loans to average total deposits 76.71 %     76.77 %     70.41 %  
    Average non-interest deposits to average total deposits 27.43 %     28.67 %     30.61 %  
    Average interest-earning assets to average interest-bearing liabilities 140.52 %     145.37 %     147.39 %  
                           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates          
      Year-to-date
      December 31, 2024   December 31, 2023
        Average     Average
      Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate
    Assets          
    Interest bearing deposits in other banks $44,913   5.09 %   $91,161   5.02 %
    Portfolio investments 623,756   2.82 %   715,367   2.43 %
    Loans held for sale 68,790   6.08 %   41,769   6.19 %
    Portfolio loans 1,910,156   6.87 %   1,643,943   6.49 %
    Total interest-earning assets 2,647,615   5.86 %   2,492,240   5.36 %
    Nonearning assets 213,397       198,107    
    Total assets $2,861,012       $2,690,347    
               
    Liabilities and Shareholders Equity          
    Interest-bearing deposits $1,802,286   2.18 %   $1,614,386   1.64 %
    Borrowings 33,799   3.81 %   51,038   4.24 %
    Total interest-bearing liabilities 1,836,085   2.21 %   1,665,424   1.72 %
               
    Noninterest-bearing demand deposits 718,163       749,859    
    Other liabilities 55,265       47,820    
    Shareholders’ equity 251,499       227,244    
    Total liabilities and shareholders’ equity $2,861,012       $2,690,347    
    Net spread   3.65 %     3.64 %
    NIM   4.28 %     4.14 %
    NIMTE*   4.33 %     4.21 %
    Cost of funds   1.59 %     1.19 %
    Average portfolio loans to average interest-earning assets 72.15 %     65.96 %  
    Average portfolio loans to average total deposits 75.79 %     69.53 %  
    Average non-interest deposits to average total deposits 28.49 %     31.72 %  
    Average interest-earning assets to average interest-bearing liabilities 144.20 %     149.65 %  
                   

    Additional Financial Information
    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)          
      December 31,
    2024
      September 30, 2024   December 31,
    2023
    Book value per share $48.41     $47.27     $42.57  
    Tangible book value per share* $39.17     $44.36     $39.68  
    Total shareholders’ equity/Total assets 8.78 %   8.78 %   8.36 %
    Tangible common equity/Tangible assets* 7.23 %   8.28 %   7.84 %
    Tier 1 capital / Risk adjusted assets 9.76 %   11.53 %   11.43 %
    Total capital / Risk adjusted assets 10.94 %   12.50 %   12.35 %
    Tier 1 capital / Average assets 7.68 %   9.08 %   8.72 %
    Common shares outstanding 5,518,210     5,501,943     5,513,459  
    Unrealized gain on AFS debt securities, net of income taxes ($8,295 )   ($7,617 )   ($17,415 )
    Unrealized (loss) on derivatives and hedging activities, net of income taxes $1,272     $863     $978  
                     
    Profitability Ratios                            
      December 31,
    2024
      September
    30, 2024
      June 30, 2024   March 31,
    2024
      December 31,
    2023
    For the quarter:                            
    NIM 4.41 %   4.29 %   4.24 %   4.16 %   4.06 %
    NIMTE* 4.47 %   4.35 %   4.30 %   4.22 %   4.12 %
    Efficiency ratio 66.96 %   66.11 %   68.78 %   68.93 %   72.21 %
    Return on average assets 1.43 %   1.22 %   1.31 %   1.19 %   0.93 %
    Return on average equity 16.32 %   13.69 %   14.84 %   13.84 %   11.36 %
                                 
      December 31,
    2024
      December 31,
    2023
    Year-to-date:          
    NIM 4.28 %   4.14 %
    NIMTE* 4.33 %   4.21 %
    Efficiency ratio 67.60 %   72.64 %
    Return on average assets 1.29 %   0.94 %
    Return on average equity 14.70 %   11.17 %
               

    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2023 and 2022. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin.

       
      Three Months Ended
      December 31,
    2024
      September 30,
    2024
      June 30, 2024   March 31,
    2024
      December 31,
    2023
    Net interest income $30,841     $28,842     $27,053     $26,447     $26,732  
    Divided by average interest-bearing assets 2,787,517     2,674,291     2,568,266     2,558,558     2,612,297  
    Net interest margin (“NIM”)2 4.41 %   4.29 %   4.24 %   4.16 %   4.06 %
                       
    Net interest income $30,841     $28,842     $27,053     $26,447     $26,732  
    Plus: reduction in tax expense related to tax-exempt interest income 379     385     378     379     374  
      $31,220     $29,227     $27,431     $26,826     $27,106  
    Divided by average interest-bearing assets 2,787,517     2,674,291     2,568,266     2,558,558     2,612,297  
    NIMTE2 4.47 %   4.35 %   4.30 %   4.22 %   4.12 %
                                 
      Year-to-date
      December 31,
    2024
      December 31,
    2023
    Net interest income $113,183     $103,256  
    Divided by average interest-bearing assets 2,647,615     2,492,240  
    Net interest margin (“NIM”)3 4.28 %   4.14 %
           
    Net interest income $113,183     $103,256  
    Plus: reduction in tax expense related to tax-exempt interest income 1,521     1,576  
      $114,704     $104,832  
    Divided by average interest-bearing assets 2,647,615     2,492,240  
    NIMTE3 4.33 %   4.21 %
               
    2Calculated using actual days in the quarter divided by 366 for the quarters ended in 2024 and 365 for the quarters ended in 2023, respectively.
               
    3Calculated using actual days in the year divided by 366 for year-to-date period in 2024 and 365 for year-to-date period in 2023, respectively.
               

    *Non-GAAP Financial Measures

    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value

    Tangible book value is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by common shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share.

                       
      December 31,
    2024
      September 30,
    2024
      June 30, 2024   March 31,
    2024
      December 31,
    2023
                       
    Total shareholders’ equity $267,116     $260,050     $247,200     $239,327     $234,718  
    Divided by common shares outstanding 5,518     5,502     5,502     5,500     5,513  
    Book value per share $48.41     $47.26     $44.93     $43.52     $42.57  
                                 
      December 31,
    2024
      September 30,
    2024
      June 30, 2024   March 31,
    2024
      December 31,
    2023
                       
    Total shareholders’ equity $267,116     $260,050     $247,200     $239,327     $234,718  
    Less: goodwill and intangible assets 50,968     15,967     15,967     15,967     15,967  
      $216,148     $244,083     $231,233     $223,360     $218,751  
    Divided by common shares outstanding 5,518     5,502     5,502     5,500     5,513  
    Tangible book value per share $39.17     $44.36     $43.52     $40.61     $39.68  
                                 

    Tangible Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets.

                       
    Northrim BanCorp, Inc. December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
                       
    Total shareholders’ equity $267,116     $260,050     $247,200     $239,327     $234,718  
    Total assets 3,041,869     2,963,392     2,821,668     2,759,560     2,807,497  
    Total shareholders’ equity to total assets 8.78 %   8.78 %   8.76 %   8.67 %   8.36 %
                                 
    Northrim BanCorp, Inc. December 31,
    2024
      September 30,
    2024
      June 30, 2024   March 31,
    2024
      December 31,
    2023
    Total shareholders’ equity $267,116     $260,050     $247,200     $239,327     $234,718  
    Less: goodwill and other intangible assets, net 50,968     15,967     15,967     15,967     15,967  
    Tangible common shareholders’ equity $216,148     $244,083     $231,233     $223,360     $218,751  
                       
    Total assets $3,041,869     $2,963,392     $2,821,668     $2,759,560     $2,807,497  
    Less: goodwill and other intangible assets, net 50,968     15,967     15,967     15,967     15,967  
    Tangible assets $2,990,901     $2,947,425     $2,805,701     $2,743,593     $2,791,530  
    Tangible common equity ratio 7.23 %   8.28 %   8.24 %   8.14 %   7.84 %
                                 

    Note Transmitted on GlobeNewswire on January 24, 2025, at 12:15 pm Alaska Standard Time.

       
    Contact: Mike Huston, President, CEO, and COO
      (907) 261-8750
      Jed Ballard, Chief Financial Officer
      (907) 261-3539
       

    The MIL Network

  • MIL-OSI Security: Nuclear Energy in the Clean Energy Transition

    Source: International Atomic Energy Agency – IAEA

    Dispatchable energy

    Unlike wind and solar, nuclear power plants and hydropower offer dispatchable energy, meaning they are able to adjust their output to meet electricity demand. Additionally, the expanded use of nuclear power for non-electric applications, including district heating, hydrogen production, desalination and heat for industrial processes, offers further options to reduce emissions.

    To support this increasing nuclear energy demand, the IAEA is actively assisting countries by providing technical expertise and capacity building to help them establish or expand nuclear power plants.

    Integrated Nuclear Infrastructure Reviews (INIR) are an example where the IAEA assists countries to assess the status of their national infrastructure as they embark on establishing nuclear power plants. INIR missions enable countries to engage in discussions and receive guidance from experts about recommendations and best practices in nuclear power infrastructure development.

    These missions ensure that the infrastructure necessary for the safe, secure and sustainable use of nuclear power is developed and implemented in a responsible and orderly manner.

    In 2009, the IAEA conducted the first INIR Mission to a country initiating the use of nuclear power. Since then, INIR missions have been hosted by various states including the United Arab Emirates, that has successfully established the Barakah Nuclear Energy Plant. This year, it is expected to supply around 25 per cent of the UAE’s electricity, up from its current contribution of 20 per cent, reducing the country’s carbon emissions by 22 million tonnes annually.

    Similarly, countries like Sweden, France and Finland have utilized nuclear energy combined with hydro and renewables to largely decarbonize their electricity production.  France has an extremely low level of CO2 emissions from electricity generation, since over 90 per cent of its electricity is from low-carbon sources, 70 per cent of that from nuclear power. And 94 percent of Sweden’s electricity comes from low carbon sources in Sweden with more than a third coming from nuclear, according to the IEA.

    Newcomer countries

    The IAEA is also supporting newcomer countries and developing countries in their transition to nuclear energy, with trainings, technical assistance, and technology transfer of tools and methodologies to help them evaluate the role of different technologies in meeting their future energy needs while reducing greenhouse gas emissions. 

    “A few years ago, discussions might have been about phasing out nuclear energy. Today, at the World Economic Forum, we’re on the road to tripling nuclear capacity. This shows a shift in how nuclear energy is increasingly seen as essential for net-zero and energy transition,” said Mr Grossi this week at the first ever public session on nuclear energy at the World Economic forum Annual Meeting in Davos.

    The IAEA’s latest projections indicate that world nuclear capacity will increase 2.5 times the current capacity by 2050. At present, 31 countries operate power plants, with 419 reactors in operation, a combined electrical capacity of 378.1 gigawatt GW, producing about 10 per cent of the world’s electricity.  Additionally, over 62 reactors are currently under construction, highlighting the growing adoption of nuclear energy worldwide.

    “I am confident 2025 will see commitments translated into concrete projects. Nuclear energy is still providing the world with a quarter of its low-carbon power and supporting the roll out of intermittent renewables like solar and wind. In future we will see even more nuclear deliver the clean, reliable, and secure power the world needs. As always, IAEA will be there to assist countries in making it happen,” said Mr Grossi.

    MIL Security OSI

  • MIL-OSI USA: Padilla, Schiff Introduce Bipartisan Legislation to Support Firefighters With Service-Related Cancers

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)

    Padilla, Schiff Introduce Bipartisan Legislation to Support Firefighters With Service-Related Cancers

    WASHINGTON, D.C. — As thousands of firefighters work around the clock to combat the ongoing Southern California fires, U.S. Senators Alex Padilla and Adam Schiff (both D-Calif.) joined Senators Amy Klobuchar (D-Minn.) and Kevin Cramer (R-N.D.) in introducing bipartisan legislation to expand access to federal support for families of firefighters and other first responders who pass away or become permanently disabled from service-related cancers. The Honoring Our Fallen Heroes Act passed unanimously out of the Senate Judiciary Committee last year.
    Currently, firefighters are only eligible for support under the Public Safety Officer Benefits (PSOB) program for physical injuries sustained in the line-of-duty or for deaths from duty-related heart attacks, strokes, mental health conditions such as post-traumatic stress disorder, and 9/11 related illnesses. The Honoring Our Fallen Heroes Act would ensure that families of firefighters and other first responders across the country are eligible to receive similar benefits under the federal PSOB program. The bill would also extend disability benefits in cases where these first responders become permanently and totally disabled due to cancer. 
    “Firefighters and first responders put their lives on the line without a second thought to protect California communities from the devastating Southern California fires,” said Senator Padilla. “When they sacrifice their lives or face severe disabilities due to service-related cancers, we have a shared duty to help get their families back on their feet.”
    “Our first responders risk everything for us – from the front lines of wildfires to the unseen lines of duty that keep our communities safe. When they lose their lives to service-related cancers, their families deserve the full measure of support they’ve earned. No one who has lost so much should be left to face hardship alone,” said Senator Schiff.
    “As we are seeing in California and throughout the country, our firefighters put their lives on the line every day to keep us safe, often exposing themselves to carcinogens that can have lethal long-term effects. It’s unacceptable that firefighters who succumb to cancer from work-related exposure or become permanently and totally disabled don’t receive the same treatment as others who die in the line of duty,” said Senator Klobuchar. “That’s why I’m working with Senator Cramer to ensure that firefighters get the support they deserve. Our bipartisan legislation will honor the memory and sacrifice of St. Paul Fire Department Captain Mike Paidar and so many others who risk their lives in service of their communities.”
    “Our first responders epitomize courage and selfless sacrifice, confronting both the immediate perils of their duty and lingering health risks associated with their service,” said Senator Cramer. “The exposure to dangerous carcinogens happens on our behalf. When these heroes make the ultimate sacrifice, their families should not bear these burdens alone.”
    The PSOB program provides benefits to the survivors of firefighters, law enforcement officers, and other first responders who are killed as the result of injuries sustained in the line of duty. The program also provides disability benefits where first responders become permanently or totally disabled. The Public Safety Officers’ Educational Assistance (PSOEA) program, a component of the PSOB program, provides higher-education assistance to the children and spouses of public safety officers killed or permanently disabled in the line of duty. The PSOB and PSOEA programs are administered by the Department of Justice’s Bureau of Justice Assistance.
    This Honoring Our Fallen Heroes Act is also cosponsored by Senators John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Richard Blumenthal (D-Conn.), Chris Coons (D-Del.), John Cornyn (R-Texas), Ted Cruz (R-Texas), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), John Fetterman (D-Pa.), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), Mazie Hirono (D-Hawaii), Jim Justice (R-W.V.), Mark Kelly (D-Ariz.), Edward J. Markey (D-Mass.), Mike Rounds (R-S.D.), Jeanne Shaheen (D-N.H.), Tina Smith (D-Minn.), Mark Warner (D-Va.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.), and Ron Wyden (D-Ore.).
    The bill is endorsed by the International Association of Fire Fighters (IAFF), Congressional Fire Services Institute (CFSI), Federal Law Enforcement Officers Association (FLEOA), Fraternal Order of Police (FOP), International Association of Fire Chiefs (IAFC), Major County Sheriffs of America (MCSA), Metropolitan Fire Chiefs Association (Metro Chiefs), National Association of Police Organizations (NAPO), National Fallen Firefighters Foundation (NFFF), National Fire Protection Association (NFPA), National Narcotics Officers’ Associations’ Coalition (NNOAC), National Volunteer Fire Council (NVFC), and NYPD Sergeants Benevolent Association.
    Senators Padilla and Schiff have fought relentlessly to get Southern Californians desperately needed disaster relief aid. In the immediate aftermath of the Los Angeles fires, Padilla and Schiff led 47 bipartisan members of the California Congressional delegation in successfully urging President Biden to grant Governor Gavin Newsom’s request for a major disaster declaration to expedite timely relief to Los Angeles County residents impacted by these disasters. Additionally, Padilla introduced a package of critical bipartisan bills to strengthen fire resilience and rebuilding efforts, including legislation to permanently increase wildland firefighter pay.
    Last week, Padilla delivered remarks on the Senate floor urging his Republican colleagues and President Trump to provide essential disaster recovery aid to California without conditioning it on the passage of partisan legislation. He also questioned Secretary of the Interior nominee Doug Burgum and Budget Secretary nominee Russell Vought on their support for fire aid, securing their commitment to not politicize disaster relief resources or funding.

    MIL OSI USA News

  • MIL-OSI USA: January 24th, 2025 Heinrich Hosts Congressional Briefing Highlighting Advancements and Job Creation in the Electric Vehicle Supply Chain

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich

    PHOTOS

    WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the Senate Energy and Natural Resources Committee, hosted a congressional briefing on developments in manufacturing electric vehicles and their supply chains in the United States, from batteries to electric school buses.

    PHOTOS: U.S. Senator Martin Heinrich, Ranking Member of the Senate Energy and Natural Resources Committee, hosts a congressional briefing on the electric vehicle manufacturing supply chain, January 23, 2025.

    Panelists from the Zero Emission Transportation Association Education Fund, Impact Clean Power Technology, SA, and GreenPower Motor Company shared their perspectives on the incredible growth in EV-related investments over recent years and business partnerships that are diversifying domestic supply chains away from foreign entities of concern, including from China, driven by the Inflation Reduction Act and the Infrastructure Investments and Jobs Act.

    “For the last few years, the United States has taken industrial policy seriously. We need to do that because China and other competitors, for years and years, have been taking industrial policy seriously. If we want to control our own supply chains, we need pro-growth tax policies that support those things,” said Heinrich. “There is no question that globally, the electrification of transportation is a consistent phenomenon. The real question for us as a nation, I think, is, do we want to lead this transition? Do we want to compete with our global competitors and be successful, or are we going to cede that leadership to other spaces?”

    “In my view, when you’re winning, keep winning,” Heinrich continued. “Keep the things that are actually moving factories to the United States. What I’ve experienced in the just the few years since we created the Inflation Reduction Act is new manufacturing plants opening in the state of New Mexico and existing manufacturing plants expanding. The supply chains that everybody complained about, saying ‘we don’t have control of those supply chains,’ let’s build those supply chains here. We should be banding together with our allies to control our own supply chains and to build good jobs here and to compete effectively — not just to compete, but to win this race for the future of transportation and energy.”

    Heinrich’s Longtime Leadership on Electric Vehicles

    Heinrich is a staunch advocate for federal investments that make electric vehicles more affordable and accessible for working families as well as electric vehicle charging stations more available for New Mexicans.

    In 2022, Heinrich helped author and pass into law the landmark Inflation Reduction Act, which has created a manufacturing renaissance throughout the country and established New Mexico at the center of the nation’s clean energy future. Heinrich marked the two-year anniversary of the legislation being signed into law in August, highlighting how its incentives have expanded and spurred a number of new clean energy projects across New Mexico.

    Last August, at an event in Albuquerque, Heinrich was joined by Albuquerque Public Schools (APS) Superintendent Gabriella Duran-Blakey and Mom’s Clean Air Force – an organization dedicated to protecting children from air pollution and climate change – to announce nearly $7 million in Infrastructure Law funding to help APS replace older, diesel school buses with 20 new electric school buses. This investment comes from the EPA Clean School Bus Program, which Heinrich helped establish. The investment will help APS save money as they upgrade school bus fleets, replacing existing buses with brand new zero-emission and clean school buses.

    Last year, Heinrich and the New Mexico Congressional Delegation also welcomed nearly $68 million in competitive federal grant funding from the Bipartisan Infrastructure Law’s Charging and Fueling Infrastructure Discretionary Grant Program to build major new electric vehicle charging networks throughout New Mexico. The largest portion of that funding will allow the New Mexico Department of Transportation to contract with a private partner, TeraWatt Infrastructure, to build the I-10 Electric Corridor, which will be the nation’s first network of high-powered charging centers for heavy-duty electric trucks. As part of this network, TeraWatt will build two electric vehicle charging centers for medium-and heavy-duty commercial vehicles conducting routes along Interstate 10 (I-10), located in unincorporated Hidalgo and Doña Ana Counties, near Lordsburg and Vado, N.M. The entire route will extend along the I-10 highway from the San Pedro ports in Southern California to the El Paso, Texas border region.

    Last year, Heinrich also welcomed guidance from the Department of the Treasury and the Internal Revenue Service (IRS) that significantly expanded access to the 30C Alternative Fuel Vehicle Refueling Property Credit. The 30C Alternative Fuel Vehicle Refueling Property Credit was increased through the Inflation Reduction Act and provides billions of dollars for alternative refueling infrastructure investments such as in-home EV chargers, zero-emission truck stops, public chargers, and adding zero-emission refueling to warehouses.

    Heinrich has also led successful efforts to call on the U.S. Postal Service to substantially increase their efforts to electrify the next generation of mail delivery vehicles. With funding that Democrats delivered in the historic Inflation Reduction Act and a commitment from the Biden administration, the next generation of mail delivery vehicles in America will now be 75% battery electric vehicles, and 100% electric starting in 2026.

    MIL OSI USA News

  • MIL-OSI USA: Warner Joins Colleagues in Introducing Bipartisan Legislation to Support First Responders with Service-Related Cancers

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner

    WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) joined Sens. Amy Klobuchar (D-MN), Kevin Cramer (R-ND), and 26 of their Senate colleagues in introducing legislation to expand access to federal support for the families of firefighters and other first responders who pass away or become permanently disabled from service-related cancers. Currently, firefighters are only eligible for support under the Public Safety Officer Benefits (PSOB) program for physical injuries sustained in the line-of-duty, or for deaths from duty-related heart attacks, strokes, mental health conditions such as post-traumatic stress disorder, and 9/11 related illnesses.

    The Honoring our Fallen Heroes Act would expand access to federal support for the families of firefighters and first responders who pass away from cancer caused by carcinogenic exposure during their service. The bill would also extend disability benefits in cases where these first responders become permanently and totally disabled due to cancer.

    “Our first responders put their lives on the line day in and day out to keep our communities safe, and in the face of this work, are often exposed to harmful carcinogens that have led to long-term and devastating diagnoses,” Sen. Warner said. “It is wholly unacceptable that firefighters who have gotten sick due to the job do not receive the same benefits as all those who die in the line of duty. I’m proud to introduce this legislation to ensure that these heroes receive the benefits they deserve.”

    The PSOB program provides benefits to the survivors of fire fighters, law enforcement officers, and other first responders who are killed as the result of injuries sustained in the line of duty. The program also provides disability benefits where first responders become permanently or totally disabled. The Public Safety Officers’ Educational Assistance (PSOEA) program, a component of the PSOB program, provides higher-education assistance to the children and spouses of public safety officers killed or permanently disabled in the line of duty. The PSOB and PSOEA programs are administered by the Department of Justice’s Bureau of Justice Assistance (BJA). The Honoring Our Fallen Heroes Act would ensure that firefighters and other first responders across the country are eligible to receive similar benefits under the federal PSOB program.

    Joining Sens. Warner, Klobuchar, and Cramer in introducing this legislation are Sens. Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), Richard Blumenthal (D-CT), Chris Coons (D-DE), John Cornyn (R-TX), Ted Cruz (R-TX), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Mazie Hirono (D-HI), Jim Justice (R-WV), Mark Kelly (D-AZ), Ed Markey (D-MA), Alex Padilla (D-CA), Mike Rounds (R-SD), Adam Schiff (D-CA), Jeanne Shaheen (D-NH), Tim Sheehy (R-MT), Tina Smith (D-MN), Elizabeth Warren (D-MA), Peter Welch (D-VT), Sheldon Whitehouse (D-RI), and Ron Wyden (D-OR). 

    The legislation is endorsed by the International Association of Fire Fighters (IAFF), as well as the Congressional Fire Services Institute (CFSI); Federal Law Enforcement Officers Association (FLEOA); Fraternal Order of Police (FOP); International Association of Fire Chiefs (IAFC); Major County Sheriffs of America (MCSA); Metropolitan Fire Chiefs Association (Metro Chiefs); National Association of Police Organizations (NAPO); National Fallen Firefighters Foundation (NFFF); National Fire Protection Association (NFPA); National Narcotics Officers’ Associations’ Coalition (NNOAC); National Volunteer Fire Council (NVFC); and Sergeants Benevolent Association of the NYPD.

    Text of the legislation is available here.

     

    MIL OSI USA News

  • MIL-OSI USA: Tillis Statement on President Trump’s Visit to WNC

    US Senate News:

    Source: United States Senator for North Carolina Thom Tillis

    WASHINGTON, D.C. – Today, Senator Thom Tillis released the following statement on President Donald J. Trump’s visit to Western North Carolina to survey the devastation left behind by Helene: 

    “President Trump’s visit is a welcome display of leadership as Western North Carolina recovers from damage and devastation left behind by Helene. Although I was unable to attend due to the Senate being in session, I want to thank him for traveling to North Carolina to witness the damage firsthand. Throughout the transition, both President Trump and Vice President Vance repeatedly reached out to me to check in on how Western North Carolina was doing. That is a testament to how high of a priority the recovery and rebuilding process is for them. Under President Biden, FEMA’s failure to act and communicate swiftly put vulnerable families at risk with freezing temperatures outside. Despite our continued pressure, FEMA made little progress in providing direct housing solutions for those most affected by Helene. Things will be changing under President Trump, and his visit shows his Administration is committed to the people of Western North Carolina as he promised during the campaign. I look forward to working with the Trump-Vance Administration to ensure that every available federal resource is deployed and that red tape preventing families from accessing housing is eliminated.” 

    MIL OSI USA News

  • MIL-OSI USA: Hoeven, Colleagues Reintroduce FARM Act to Add Ag Secretary to CFIUS

    US Senate News:

    Source: United States Senator for North Dakota John Hoeven

    01.24.25

    WASHINGTON – Senator John Hoeven joined Senator Tommy Tuberville (R-AL) and Senator John Fetterman (D-PA) in reintroducing the bipartisan, bicameral Foreign Adversary Risk Management (FARM) Act, to permanently add the U.S. Secretary of Agriculture to the Committee on Foreign Investment in the United States (CFIUS), the governmental body that oversees the vetting process of foreign investment and acquisition of American companies. Currently, CFIUS does not directly consider the needs of the agriculture industry when reviewing foreign investment and ownership in domestic businesses.

    “Our foreign adversaries are buying up American farmland and threatening American food security,” said Senator Hoeven. “We must have stronger supervision of foreign investments that affect the American food supply, and this bill will help achieve that by adding the Agriculture Secretary to CFIUS. This is a logical step to protect our essential food infrastructure and ensure North Dakota and our country remains a leader in agriculture.”

    “Over the last decade, we’ve seen a surge of American farmland purchases from our foreign adversaries,” said Senator Tuberville. “These foreign investments are now reaching every piece of the very large puzzle that makes up our agriculture industry, from farming and processing to packaging and shipping. Food security is national security, and we cannot allow our adversaries to have a foot in the door to our critical supply chains. We must prioritize oversight of foreign investment in our food supply chains, especially from Russia, China, North Korea, and Iran. This starts with giving the agriculture community a permanent seat at the table on CFIUS. As Alabama’s voice on the Senate Ag Committee, I will keep fighting to secure our ag supply chains so that our agriculture community can continue to put food on the table for American families.” 

    “Pennsylvania is home to about 50,000 farms and the farmers who power them already face enough challenges to stay competitive. They shouldn’t also have to compete with foreign adversaries buying up American farmland,” said Senator Fetterman. “America’s farms are critical infrastructure, and CFIUS exists to protect our critical infrastructure from foreign threats. So, adding the Secretary of Agriculture is just plain common sense. I’ve said it before, and I’ll say it again: foreign adversaries have no business owning American farmland. This bill makes that clear and I’m proud to partner with my colleague to get it done.”

      Joining Hoeven, Tuberville and Fetterman in reintroducing this legislation are Senators Roger Marshall (R-KS), Rick Scott (R-FL), Eric Schmitt (R-MO), Kevin Cramer (R-ND), Katie Britt (R-AL), Marsha Blackburn (R-TN), Deb Fischer (R-NE), Steve Daines (R-MT), Cynthia Lummis (R-WY), and Tim Sheehy (R-MT).

    MIL OSI USA News

  • MIL-OSI United Kingdom: Council Service Update January 24

    Source: Northern Ireland – City of Derry

    Council Service Update January 24

    24 January 2025

    Council continues to work with local agencies in the ongoing emergency response to Storm Éowyn which has resulted in significant damage to roads and property throughout the City and District.

    This is compounded by the potential risk of snow and ice forecast for this evening which will make efforts to assess and repair damages even more challenging tomorrow.

    We hope to resume normal Council services as soon as it is safe to do so, but the health and safety of both staff and the general public is our first priority.

    We will begin the process of assessing any impacts on Council sites early tomorrow, but please note that further delays to services are expected.

     Bin collections

    Refuse crew will be out on the ground from 8am tomorrow to collect as many bins as possible that were scheduled for collection today, but we will only be able to do so if it is safe.  Please leave bins in a sheltered place later this evening or early tomorrow morning if you can. Any missed bins will be collected as soon as possible.

     

    Cemeteries and outdoor sites

    Efforts are being made to reopen Council cemeteries, parks, and recycling centres tomorrow morning following assessment.

    Burials will be prioritized, with a number scheduled to take place tomorrow. The cemeteries will open to the wider public as soon as they have been inspected and are safe. 

    Leisure Centres and other venues

    Leisure Centres, the Guildhall and other cultural and community venues will open tomorrow as usual following inspections.

    Grass and 3G pitches will also open subject to pitch inspections for any storm damage.

    We will continue to provide regular updates on our social media platforms and appreciate your patience and cooperation as we work towards restoring full services. Please follow the guidance of the PSNI and stay home and stay safe while warnings are in place.

     

    Emergency Information

    • Stay up to date with the weather forecast for your area and follow advice from emergency services and local authorities.

    • Further updates – Click on – UK weather warnings – Met Office

    Emergency Contact numbers:

    Emergency services 999 or 112

    Flooding Incident Line – 0300 2000 100

    NI Electricity Networks – 03457 643 643

    NI Gas Emergency Service – 0800 002 001

    NI Water – 03457 440 088

    Housing Executive – 03448 920 901

    Report a blocked road – 0300 200 7891

    For further advice see:

    https://www.nidirect.gov.uk/camp…/be-ready-for-emergencies

    http://www.metoffice.gov.uk/guide/weather/warnings

    https://www.metoffice.gov.uk/…/env…/community-resilience

    https://www.infrastructure-ni.gov.uk/…/dfi-rivers-water…

    https://twitter.com/nidirect

    • Report a road drainage fault (https://www.nidirect.gov.uk/…/report-road-drainage-fault);

    NB – register on the Met Office website or download the Met Office app to receive weather warnings; http://www.metoffice.gov.uk/…/mobile…/weather-app

    MIL OSI United Kingdom

  • MIL-OSI: TC Energy to issue fourth quarter 2024 results on Feb. 14

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Jan. 24, 2025 (GLOBE NEWSWIRE) — News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) will hold a teleconference and webcast on Friday, Feb. 14, 2025, to discuss its fourth quarter financial results.

    François Poirier, TC Energy President and Chief Executive Officer, Sean O’Donnell, Executive Vice-President and Chief Financial Officer, and other members of the executive leadership team will discuss the financial results and Company developments at 6:30 a.m. MST / 8:30 a.m. EST.

    Members of the investment community and other interested parties are invited to participate by calling 1-844-763-8274 (Canada/U.S. toll free) or 1-647-484-8814 (International toll). No passcode is required. Please dial in 15 minutes prior to the start of the call. Alternatively, participants may pre-register for the call here. Upon registering, you will receive a calendar booking by email with dial in details and a unique PIN. This process will bypass the operator and avoid the queue. Registration will remain open until the end of the conference call.

    A live webcast of the teleconference will be available on TC Energy’s website at TC Energy — Events and presentations or via the following URL: https://www.gowebcasting.com/13928. The webcast will be available for replay following the meeting.

    A replay of the teleconference will be available two hours after the conclusion of the call until midnight EST on Feb. 21, 2025. Please call 1-855-669-9658 (Canada/U.S. toll free) or 1-412-317-0088 (International toll) and enter passcode 6438166.

    About TC Energy
    We’re a team of 6,500+ energy problem solvers connecting the world to the energy it needs. Our extensive network of natural gas infrastructure assets is one-of-a-kind. We seamlessly move, generate and store energy and deliver it to where it is needed most, to homes and businesses in North America and across the globe through LNG exports. Our natural gas assets are complemented by our strategic ownership and low-risk investments in power generation.

    TC Energy’s common shares trade on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP. To learn more, visit us at TCEnergy.com.

    FORWARD-LOOKING INFORMATION
    This release contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as “anticipate”, “expect”, “believe”, “may”, “will”, “should”, “estimate”, “intend” or other similar words). Forward-looking statements in this document are intended to provide TC Energy security holders and potential investors with information regarding TC Energy and its subsidiaries, including management’s assessment of TC Energy’s and its subsidiaries’ future plans and financial outlook. All forward-looking statements reflect TC Energy’s beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking information, you should not put undue reliance on forward-looking information and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking information due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the most recent Quarterly Report to Shareholders and Annual Report filed under TC Energy’s profile on SEDAR+ at http://www.sedarplus.ca and with the U.S. Securities and Exchange Commission at http://www.sec.gov.

    -30-

    Media Inquiries:
    Media Relations
    media@tcenergy.com
    403-920-7859 or 800-608-7859

    Investor & Analyst Inquiries:
    Gavin Wylie / Hunter Mau
    investor_relations@tcenergy.com
    403-920-7911 or 800-361-6522

    PDF available: http://ml.globenewswire.com/Resource/Download/d8ba0121-2767-4138-8a53-8ecb31b5199c

    The MIL Network

  • MIL-OSI USA: Lee Introduces Pro Life Legislation for March for Life

    US Senate News:

    Source: United States Senator for Utah Mike Lee
    Bills would ban federal tax dollars from subsidizing abortion at home and abroad, repeal law used to target Pro Life activists
    WASHINGTON – Senator Mike Lee (R-UT) has introduced a trio of bills to prevent federal tax dollars from funding or subsidizing abortions in the United States and across the world, in honor of the 2025 March for Life in Washington, DC and state capitals around the country: the Abortion is not Health Care Act, the Protecting Life in Health Savings Accounts Act, the Protecting Life in Foreign Assistance Act, and a repeal of the FACE Act.
    “In our quest to build a society where every precious human life is protected, we cannot allow the tax dollars of American families to be used against the most vulnerable people in our country and across the word: the unborn.” said Senator Lee. “I am also introducing legislation to repeal the FACE Act, which was used by Joe Biden to imprison Pro Life activists, now officially pardoned by President Trump.”
    The Abortion is not Health Care Act would end the tax deductibility of abortions and clarify that this gruesome practice is not health care. Currently, the IRS categorizes an abortion as “medical care” and allows tax benefits to flow to this practice, subsidizing the killing of hundreds of thousands of unborn children each year. This bill would amend Section 213 of the Internal Revenue Code to prohibit elective abortion expenses from being considered eligible for a medical expense deduction.
    Cosponsors include Sens. Hagerty (R-TN), Daines (R-MT), Cramer (R-ND), Blackburn (R-TN), Hawley (R-MO), and Hyde-Smith (R-MS).
    Supporting groups include Students for Life Action, Concerned Women for America, Eagle Forum, Heritage Action
    For a one-pager, click HERE.For bill text, click HERE.
    The Protecting Life in Health Savings Accounts would end the preferential tax treatment of abortion in health savings accounts. Current law allows individuals to use tax-advantaged funds from health savings accounts (HSAs), flexible savings accounts (FSAs), health reimbursement arrangements (HRAs), Archer medical savings accounts (MSAs), and retiree health accounts for the “medical expense” of abortion. This legislation would amend the Internal Revenue Code to explicitly prevent abortions from getting a special tax advantage through the use of these accounts.
    Cosponsors include Sens. Hagerty (R-TN), Daines (R-MT), Cramer (R-ND), Blackburn (R-TN), Hawley (R-MO), and Hyde-Smith (R-MS).
    Supporting groups include Students for Life Action, Concerned Women for America, Eagle Forum
    For a one-pager, click HERE.For bill text, click HERE.
    The Protecting Life in Foreign Assistance Act would ensure that our foreign aid is not funding or promoting abortions overseas. In 1984, President Ronald Reagan first instituted the Mexico City Policy, prohibiting the availability of family planning foreign assistance funds to organizations that provide or promote abortions or advocate to change abortion laws in a foreign country. Since then, the policy has been alternately rescinded and reinstated with changing administrations.
    The Trump Administration rebranded this policy as the Protecting Life in Global Health Assistance (PLGHA) policy and applied it to all global health assistance, foreign nonprofits, and NGOs. This bill would permanently codify an expanded version of the PLGHA policy into law, capturing all assistance provided to foreign or domestic nonprofits, NGOs, and multilateral organizations. With President Biden having rescinded the Protecting Life in Global Health Assistance policy in 2021, American citizens may be complicit in overseas abortions under the guise of “foreign assistance.” Congress must ensure this cannot be the case now or ever again. Doing so would affirm the dignity of unborn human lives everywhere and save countless lives across the globe.
    Cosponsors include Sens. Blackburn (R-TN), Tim Scott (R-SC), Budd (R-NC), Cramer (R-ND), Kennedy (R-LA), Johnson (R-WI), Young (R-IN), Fischer (R-NE), Ricketts (R-NE), Cornyn (R-TX), Banks (R-IN), and Tuberville (R-AL).
    Supporting groups include CatholicVote and Susan B. Anthony Pro-Life America.
    For a one-pager, click HERE.For bill text, click HERE.
    The FACE ACT is a federal law designed to protect access to abortion facilities. While FACE also includes protections for churches, these are duplicative of other federal and state laws and have never been enforced. President Biden’s weaponized Department of Justice used the FACE Act to legally harass peaceful pro-life activists while simultaneously stonewalling good faith efforts by members of Congress to conduct even elementary oversight of the law. While President Trump has pardoned activists imprisoned by the Biden administration, a full repeal of the FACE Act will prevent future administrations from unjustly using this law for the purpose of political persecution.
    Cosponsors include Sens. Hawley (R-MO) & Wicker (R-MS)
    Supporting organizations include Thomas More Society, Family Research Council, Students for Life Action, Catholic Vote, Susan B. Anthony List, Live Action, and Citizens for Renewing America.
    For one-pager, bill text, click HERE.For bill text, click HERE.

    MIL OSI USA News

  • MIL-OSI United Nations: Security Council Adopts Presidential Statement Reaffirming that Acts of Terrorism Constitute among Most Serious Threats to International Peace, Security

    Source: United Nations General Assembly and Security Council

    The Security Council today unanimously adopted a presidential statement reaffirming that acts of international terrorism constitute one of the most serious threats to international peace and security in the twenty-first century, calling on all Member States to summon the requisite political will to denounce all acts of terrorism.

    Through the text (to be issued as document S/PRST/2025/2), the Council — recognizing that terrorism will not be defeated by military, security, law-enforcement and intelligence measures alone — underlined the need to address the conditions conducive to the spread of terrorism.  This includes strengthening efforts for the successful prevention and peaceful resolution of prolonged conflicts and promoting the rule of law, human rights, fundamental freedoms, good governance, tolerance and inclusiveness.

    The Council also underlined the importance of supporting socioeconomic development for sustaining peace in Africa, including through transnational and transregional infrastructure development, industrialization, poverty eradication, job creation, agricultural modernization and promotion of entrepreneurship.  The organ also expressed the need for continued support to African countries that accounts for their national priorities and needs.  Further, it recognized civil society’s importance in increasing awareness of — and more effectively tackling — the threat of terrorism.

    Expressing concern over the alarming increase in terrorist attacks, fatalities and geographic spread of terrorism — particularly in the Sahel and West African coastal States — the Council also underscored the need for Member States to strengthen their criminal-justice, law-enforcement and border-control capacities.  Further, such States need to develop their capacity to investigate, prosecute, disrupt and dismantle trafficking networks to address the linkages between terrorism and organized crime.

    By the statement, the Council reiterated Member States’ obligations to prevent and suppress the financing of terrorist acts, suppress terrorist recruitment and eliminate the supply of weapons to terrorists.  Additionally, it urged States to consider the effects of counter-terrorism measures on exclusively humanitarian activities carried out by impartial humanitarian actors in a manner consistent with international humanitarian law.  The organ also reaffirmed that Member States must ensure that any measures taken to counter terrorism comply with the Charter of the United Nations and international law.

    Acknowledging African Union efforts to strengthen institutional counter-terrorism architecture and enhance intelligence-sharing, the Council encouraged Member States and relevant international organizations to contribute to bolstering the capacity of the Union in conflict prevention, crisis management and post-conflict stabilization.  It also commended the progress made in the partnership between the African Union and the United Nations, stressing that this should further develop into a systematic, operational and strategic partnership.

    Further, the Council — recognizing the terrorist threat in Africa — underlined the importance of prompt, effective implementation of its resolutions related to the fight against terrorism, as well as all sanctions measures against designated individuals, groups, undertakings and entities associated with Da’esh, Al-Qaida and their affiliates.  Additionally, it recognized the significant need to build and strengthen Member States’ capacities — on their request and with a view to supporting national ownership — to more effectively counter terrorism and terrorist financing.

    MIL OSI United Nations News

  • MIL-OSI USA: Booker, Carson Lead Colleagues in Introducing Resolution Designating January as Muslim-American Heritage Month

    US Senate News:

    Source: United States Senator for New Jersey Cory Booker
    WASHINGTON, D.C. – U.S. Senator Cory Booker (D-NJ) and U.S. Representative André Carson (D-IN-07) led colleagues in introducing a resolution recognizing January as Muslim-American Heritage Month and celebrating the achievements of Muslims living in the United States. The resolution highlights the incredible contributions Muslim Americans have made across multiple sectors of society—from medical professionals to entrepreneurs, to faith leaders, athletes, and public servants—to help build a better nation. 
    The resolution further notes the religious discrimination experienced by Muslim Americans and stresses the “need for public education, awareness, and policies that are culturally competent when describing, discussing, or addressing the impacts of being Muslim American in all aspects of the society of the United States.”
    “Muslim Americans have contributed to every facet of American life, and I am proud to introduce this resolution designating January as Muslim-American heritage month, said Senator Booker. “Currently, over 3 million Muslims are living in the United States, and this resolution pays tribute to their incredible impact and celebrates their rich heritage. In addition, I am committed this month, and every month, to working together to combat the continued prejudice and discrimination the Muslim community faces.”
    “Islamophobia thrives in ignorance,” said Congressman Carson. “The American people are too often exposed to anti-Muslim rhetoric instead of the truth: that Muslim Americans are valued members of our community. By sharing stories of Muslim heroes, we can help debunk stereotypes and encourage individuals of all faiths to discover the many values we have in common.”
    “Our country is made stronger by the contributions and achievements of Muslim Americans,” said Senator Durbin. “But we cannot forget that the Muslim American community continues to face discrimination and threats because of their identity.  I hope this resolution serves as both a tribute to the community and a recommitment to standing with them in efforts to build a more welcoming and equitable nation.”  
    “I join in celebrating Muslim American Heritage Month as we take January to uplift Muslim American communities across our nation,” said Senator Kim. “Diverse voices, heritages, and stories make us who we are, forever contributing to our national tapestry and writing our American story. I hope we come together to reflect on our country’s foundational value: freedom of religion – while accepting all faiths by uplifting communities like the Ummah, our diversity remains one of our nation’s greatest strengths.”
    “Virginia is home to so many Muslim Americans, and they continue to enrich our communities,” said Senator Kaine. “I’m glad to join my colleagues in introducing this resolution to acknowledge Muslim Americans’ contributions and achievements by recognizing January as Muslim American Heritage Month.”
    “Muslim-Americans make invaluable contributions to the success of California, which is proudly home to one of the largest Muslim populations in the country,” said Senator Padilla. “I’m glad to join Senator Booker in introducing this resolution to promote greater awareness and appreciation of Muslim-American Heritage Month, as we work toward dismantling prejudice and fostering a more inclusive society for all.”
    The resolution is cosponsored by U.S. Senators Richard Blumenthal (D-CT), Dick Durbin (D-IL), Tim Kaine (D-VA), Andy Kim (D-NJ), Amy Klobuchar (D-MN), Chris Murphy (D-CT), Patty Murray (D-WA), Alex Padilla (D-CA), Chris Van Hollen (D-MD), and Peter Welch (D-VT).
    The full text of the resolution can be found here.

    MIL OSI USA News

  • MIL-OSI USA: 01.24.2025 Sen. Cruz Files Amicus Brief in State Sovereignty Energy Case

    US Senate News:

    Source: United States Senator for Texas Ted Cruz
    WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) filed an amicus brief supporting the State of Texas in the upcoming U.S. Supreme Court cases of NRC v. Texas and ISP v. Texas. The cases before the Court involve the Nuclear Regulatory Commission’s (NRC) authority to license a consolidated interim storage facility for spent nuclear fuel in Andrews County, Texas, a decision challenged by the state of Texas and Governor Abbott. The nuclear fuel facility will be located directly on top of the Permian Basin, which stretches across Southwest Texas and Southeast New Mexico.
    Upon filing the amicus brief, Sen. Cruz said, “The Permian Basin is our nation’s leading oil and gas-producing region and a critical pillar of America’s energy security.
    “I support Attorney General Ken Paxton in opposing the NRC’s federal overreach and will keep fighting to ensure West Texas remains the energy powerhouse it is today.”
    Sen. Cruz was joined by Sen. John Cornyn, Reps. Jody Arrington (R-Texas-19), Henry Cuellar (D-Texas-28), August Pfluger (R-Texas-11), and Ronny Jackson (R-Texas-13) in filing the amicus brief.
    Read the amicus brief for NRC vs. Texas and ISP v. Texas here.
    BACKGROUND
    The NRC issued a license to ISP to construct and operate an interim storage facility designed to hold up to 5,000 metric tons of spent nuclear fuel and high-level radioactive waste. The facility would temporarily store the waste from various nuclear reactors across the United States. Texas argues that the NRC’s actions exceed its statutory authority under federal law, specifically the Nuclear Waste Policy Act (NWPA) of 1982, which governs the disposal of spent nuclear fuel and prioritizes permanent geologic repositories over temporary facilities.
    The Court’s review of the case will address fundamental questions about the scope of the NRC’s authority and the balance of power between state and federal governments. This decision will have far-reaching implications in balancing power between states and federal agencies in regulating hazardous materials.

    MIL OSI USA News

  • MIL-OSI USA: Kaine Statement on Passing of Close Friend & Mentor Henry Marsh

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement regarding the passing of his friend and mentor Henry Marsh:

    “My heart is heavy with grief and full of gratitude that I had the chance to know Henry Marsh—a truly exceptional person. A born-and-raised Richmonder who become active in the civil rights movement before he even graduated from Maggie L. Walker High School, Henry never waited even for a moment to do all he could to serve and improve his community. After he graduated from Virginia Union University, earned a law degree from Howard University, and answered the call to serve in the United States Army, he returned home to work as a civil rights lawyer—tackling crucial cases relating to desegregation and equality in employment. He then made history as Richmond’s first African American mayor. As a former mayor myself, I know how tough that job is and have the deepest appreciation and admiration for how well he did it. And he didn’t stop there—he went on to serve in the Virginia Senate and later as a commissioner of the Virginia Department of Alcoholic Beverage Control Board. Any single one of Henry’s accomplishments would be enough cause to be proud, but he never stopped looking for new opportunities to serve. I’m honored to have called him a friend and mentor and would never have been elected to any office if it weren’t for him. I will be praying for his family and all who knew and loved him.”

    MIL OSI USA News

  • MIL-OSI USA: Kaine Statement on Passing of Close Friend & Mentor Henry Marsh

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement regarding the passing of his friend and mentor Henry Marsh:

    “My heart is heavy with grief and full of gratitude that I had the chance to know Henry Marsh—a truly exceptional person. A born-and-raised Richmonder who become active in the civil rights movement before he even graduated from Maggie L. Walker High School, Henry never waited even for a moment to do all he could to serve and improve his community. After he graduated from Virginia Union University, earned a law degree from Howard University, and answered the call to serve in the United States Army, he returned home to work as a civil rights lawyer—tackling crucial cases relating to desegregation and equality in employment. He then made history as Richmond’s first African American mayor. As a former mayor myself, I know how tough that job is and have the deepest appreciation and admiration for how well he did it. And he didn’t stop there—he went on to serve in the Virginia Senate and later as a commissioner of the Virginia Department of Alcoholic Beverage Control Board. Any single one of Henry’s accomplishments would be enough cause to be proud, but he never stopped looking for new opportunities to serve. I’m honored to have called him a friend and mentor and would never have been elected to any office if it weren’t for him. I will be praying for his family and all who knew and loved him.”

    MIL OSI USA News

  • MIL-OSI Canada: Alberta holds Ottawa accountable for its responsibilities: Ministers McIver and Nixon

    Source: Government of Canada regional news (2)

    MIL OSI Canada News

  • MIL-OSI Global: Amid LA fires, neighbors helped each other survive – 60 years of research shows how local heroes are crucial to disaster response

    Source: The Conversation – USA – By Tricia Wachtendorf, Professor of Sociology and Director, Disaster Research Center, University of Delaware

    Neighbors fill and pass a bucket of pool water to help extinguish a spot fire in Pacific Palisades, Calif., on Jan. 9, 2025. Brian van der Brug / Los Angeles Times via Getty Image

    As wildfires swept through neighborhoods on the outskirts of Los Angeles in January 2025, stories about residents there helping their neighbors and total strangers began trickling out on social media.

    Accounts of Hollywood stars clearing streets for emergency vehicles to get through and raising money for fire victims were widely circulated. But there were many other examples of less-famous people helping older neighbors to safety, and even showing up with trailers to evacuate horses.

    Businesses, including fitness centers, opened their facilities so evacuees could shower or charge their phones. Organizations that routinely work with homeless populations quickly mobilized their members to help ensure people living on the streets and in camps could get to secure, safe locations away from the fires and hazardous air quality.

    Disasters, by definition, overwhelm local resources, making civilian responders like these essential. Sixty years of research at the University of Delaware’s Disaster Research Center and by others examining the social aspects of disaster has repeatedly shown effective disaster management requires mobilizing community resources far beyond official channels.

    Often the response happens through local groups that form in response to a clear need in the community and with shared skills and interests. And this is exactly what we are witnessing in Los Angeles.

    Civilians helping often number in the thousands

    The number of those who step up to help during disasters varies by event, but it can be tremendous.

    Following the 1995 Oklahoma City bombing, over 6,800 volunteers worked with the Red Cross on the response. That same year, volunteers responding to the Kobe earthquake in Japan logged more than 1 million person-days of activity, a measure of the number of people times the hours they contributed.

    People use garden hoses to try to prevent homes from catching fire in Altadena, Calif., on Jan. 8, 2025. Neighbors rushed to help neighbors as the wind blew burning embers into neighborhoods.
    Mario Tama/Getty Images

    In an in-depth study of the Sept. 11, 2001, World Trade Center attacks, we interviewed local residents who used their retired fireboat to pump water for the firefighters at ground zero. Operators of tug, ferry and tour boats in and around New York City immediately responded to quickly evacuate 500,000 people in the area from danger. In fact, the majority of the boats involved belonged to private companies. Other volunteers queued evacuees and organized supplies and rides to get people home.

    Over 900 people, most acting in unofficial capacities, were awarded medals or ribbons for their efforts in just the marine response after the World Trade Center attack.

    A survey of residents after the 1985 Mexico City earthquake found that nearly 10% of local residents volunteered in the first three weeks of the response. Following the 1989 Loma Prieta earthquake, in California, a survey of residents in Santa Cruz and San Francisco counties found that two-thirds of the public were involved in response activities.

    Local businesses are often quick to help in disasters. Greg Dulan, center, who runs a soul food restaurant and food truck, hands out hot meals to wildfire evacuees at a church in Pasadena, Calif., on Jan. 15, 2025.
    Jason Armond/Los Angeles Times via Getty Images

    However, much of the work local residents contribute during and after disasters goes unaccounted for in official reports.

    There is no mechanism to quantify the full extent to which a neighbor or a complete stranger helps someone flee from peril. Yet when people are trapped and minutes count, research shows it is family, friends and neighbors who are already on the scene and are most likely to save lives. It’s often everyday citizens who also take on immediate tasks such as debris removal. Providing a phone, a car, a place to do laundry, or a little bit of elbow grease can fill a gap and let firefighters and other formal responders focus on critical operations.

    Getting the right help to where it’s needed

    Every study of a large-scale disaster conducted by the Disaster Research Center has revealed some level of emergent, informal helping behavior.

    The lack of public understanding about the large number of local residents already involved, often including disaster victims themselves, can lead to an influx of outsiders eager to help. Their arrival can actually pose challenges for the disaster response.

    When too many people show up, or when people try to operate outside their areas of expertise, they can put themselves and others at further risk. Communities often need supplies, but unsolicited goods of the wrong kind or at the wrong time can create more problems than they solve.

    Local groups such as the Pasadena Community Job Center organize volunteers to send them where help is requested. This group is removing debris from streets in Pasadena, Calif., in the wake of the Eaton Fire on Jan. 14, 2025.
    Zoë Meyers/AFP via Getty Images

    So, what can you do to best support these local efforts?

    Making a financial contribution to a trusted disaster response or local organization can go a long way to providing the support communities actually need. Organizations such as the American Red Cross or Feeding America, or local community-based groups that routinely work in the area, are often best suited to help where it’s needed the most.

    Skilled help will be needed for the long term

    Also, remember that disasters don’t end when the emergency is over. Survivors of the Los Angeles-area fires face years of confusing and frustrating recovery tasks ahead.

    Offering help after the immediate threat has passed – particularly skilled help, such as experience in construction or expertise in managing insurance and FEMA paperwork – is just as important.

    For example, after fires in 1970 destroyed hundreds of homes in the San Diego area, local architects, engineers and contractors donated their time and skills to help people rebuild. Their work was coordinated by a local architect and member of the Chamber of Commerce to ensure projects were assigned to reputable volunteers.

    As we recognize the important ways that neighbors and strangers helped those around them, the broader community can support wildfire victims by responding to offering the right help as recovery needs emerge. Just about every skill that is useful in calm times will be needed in these difficult months and years ahead.

    Tricia Wachtendorf receives funding from the National Science Foundation and Arnold Ventures Foundation.

    James Kendra receives funding from the National Science Foundation and the Centers for Disease Control and Prevention.

    ref. Amid LA fires, neighbors helped each other survive – 60 years of research shows how local heroes are crucial to disaster response – https://theconversation.com/amid-la-fires-neighbors-helped-each-other-survive-60-years-of-research-shows-how-local-heroes-are-crucial-to-disaster-response-247660

    MIL OSI – Global Reports

  • MIL-OSI USA: Senators Marshall, Tuberville, and Colleagues Introduce the FARM Act

    US Senate News:

    Source: United States Senator for Kansas Roger Marshall

    Washington, D.C. – U.S. Senators Roger Marshall, M.D., Tommy Tuberville (R-AL), Rick Scott (R-FL), Eric Schmitt (R-MO), Kevin Cramer (R-ND), John Fetterman (D-PA), Katie Britt (R-AL), Marsha Blackburn (R-TN), Deb Fischer (R-NE), Steve Daines (R-MT), John Hoeven (R-ND), Cynthia Lummis (R-WY), and Tim Sheehy (R-MT) introduced the bipartisan, bicameral Foreign Adversary Risk Management (FARM) Act. 
    The FARM Act will permanently add the U.S. Secretary of Agriculture to the Committee on Foreign Investments in the United States (CFIUS), the governmental body that oversees the vetting process of foreign investment and acquisition of American companies, a move to prevent improper foreign interference and disruption to the U.S. agriculture industry.
    “Food Security is National Security, it’s high time that we start recognizing this before it is too late,” said Senator Marshall. “The Secretary of Agriculture needs a seat at the table to help the Committee on Foreign Investment in the United States vet foreign agricultural investments like land. This committee currently does not directly consider the needs of the agriculture industry, the FARM Act changes that.”
    “Over the last decade, we’ve seen a surge of American farmland purchases from our foreign adversaries,” said Senator Tuberville. “These foreign investments are now reaching every piece of the very large puzzle that makes up our agriculture industry, from farming and processing to packaging and shipping. Food security is national security, and we cannot allow our adversaries to have a foot in the door to our critical supply chains. We must prioritize oversight of foreign investment in our food supply chains, especially from Russia, China, North Korea, and Iran. This starts with giving the agriculture community a permanent seat at the table on CFIUS. As Alabama’s voice on the Senate Ag Committee, I will keep fighting to secure our ag supply chains so that our agriculture community can continue to put food on the table for American families.”
    “Pennsylvania is home to about 50,000 farms and the farmers who power them already face enough challenges to stay competitive. They shouldn’t also have to compete with foreign adversaries buying up American farmland,” said Senator John Fetterman. “America’s farms are critical infrastructure, and CFIUS exists to protect our critical infrastructure from foreign threats. So, adding the Secretary of Agriculture is just plain common sense. I’ve said it before, and I’ll say it again: foreign adversaries have no business owning American farmland. This bill makes that clear and I’m proud to partner with my colleague to get it done.”
    Two previous AG secretaries under Democrat administrations have expressed support for making the Secretary of Agriculture a permanent member of CFIUS. U.S. Representative Ronny Jackson (R-TX-13) reintroduced the bipartisan, companion legislation in the House of Representatives. 
    “America’s agricultural industry is no exception to the increasing national security threats our country faces,” said Rep. Jackson. “Biden’s failed leadership allowed unchecked foreign influence, particularly from the Chinese Communist Party, to interfere with and attempt to control our food supply chain. Representing Texas’s top agricultural-producing district, I am committed to ensuring our nation’s food production remains free from foreign manipulation. This is why I am proud to reintroduce the FARM Act, putting America first and ensuring that our agricultural industry remains robust, secure, and free from foreign interference. Thank you to Senator Tuberville for leading companion legislation in the Senate, and we hope this bipartisan legislation, which is crucial to our food security, will move forward quickly to President Trump’s desk.” 
    Read the bill HERE.
    BACKGROUND:
    Over the past few years, the United States has experienced a rapid increase in foreign investment in the agricultural sector, particularly from China. Growing foreign investment in agriculture and other essential industries, like health care and energy, threaten our country’s national security. As Alabama’s voice on the Senate AG Committee, Senator Tuberville has been sounding the alarm about foreign ownership of American farmland and other elements of our food supply chain.
    According to USDA data from December 2023, foreign investors own approximately 45 million acres of U.S. agricultural land. This represents an increase of over 1.5 million acres in one calendar year. Foreign ownership of U.S. agricultural land increased modestly from 2012 to 2017 at an average increase of 0.6 million acres per year. However, since 2017, this number skyrocketed to an annual average of 2.6 million acres annually. Additionally, between 2010 and 2021, entities or individuals from China increased their ownership of U.S. agricultural land more than twentyfold, from 13,720 acres to 383,935 acres. Alabama has the fourth-highest amount of foreign-owned agricultural land in the United States, with 2.2 million acres, most of which is forestland.
    CFIUS is authorized to oversee and review foreign investment and ownership in domestic businesses as it relates to national security. Currently, the Committee does not directly consider the needs of the agriculture industry when reviewing foreign investment and ownership in domestic businesses. 
    Specifically, the FARM Act would:
    add the Secretary of Agriculture as a member to CFIUS;
    protect the U.S. agriculture industry from foreign control through transactions, mergers, acquisitions, or agreements; designate agricultural supply chains as critical infrastructure and critical technologies,
    and require a report to Congress on current and potential foreign investments in the U.S. agricultural industry from USDA and the Government Accountability Office (GAO)

    MIL OSI USA News

  • MIL-OSI USA: Gillibrand Announces Bipartisan Legislation To Address Shortage Of Affordable Child Care

    US Senate News:

    Source: United States Senator for New York Kirsten Gillibrand
    As of 2018, 64% Of New Yorkers Lived In A Child Care Desert  
    Legislation Would Provide $100 Million In Federal Funding To Develop The Child Care Workforce, Build New Child Care Facilities 
    Today U.S. Senator Kirsten Gillibrand held a virtual press conference to discuss her bipartisan legislation to address the nationwide shortage of affordable child care. Nearly two-thirds of New Yorkers live in communities that lack adequate access to child care, a share higher than in all but 4 states. Gillibrand’s bill would provide $100 million in federal funding over 5 years for states to build or expand child care facilities and to help train a robust child care workforce. 
    “Access to quality, affordable child care is a necessity for working parents, but a dire shortage of facilities and workers has made it inaccessible for millions of New Yorkers,” said Senator Gillibrand. “I’m proud to introduce this bipartisan legislation to help recruit, train, and retain child care workers and to build or expand child care facilities in communities that need them. I am committed to working across the aisle to get this done.” 
    The Child Care Workforce and Facilities Act would address the shortage of affordable child care and qualified child care professionals by providing competitive workforce development grants and facilities grants to states. Flexible workforce development grants can be used for a wide range of job training activities, such as offering scholarships or tuition subsidies; paying for the purchase of textbooks, equipment or other required educational materials; or covering other education and referral costs necessary to increase labor participation in the state’s child care sector. Facilities grants would fund the construction, expansion, or renovation of child care facilities.
    Prioritized projects would be ones that expand access to child care in child care deserts – areas where the number of children under the age of five is more than three times the number of slots with local child care providers who are licensed by the state. Under this definition, 64 percent of New Yorkers live in a child care desert, including 73 percent of those in rural areas. Herkimer, Lewis, Wyoming, Oswego, and Jefferson counties face especially extreme shortages. 
    The legislation is led by Senators Amy Klobuchar (D-MN) and Dan Sullivan (R-AK) and cosponsored by Senators Angus King (I-ME), Jeff Merkley (D-OR), Jeanne Shaheen (D-NH), and Sheldon Whitehouse (D-RI). 

    MIL OSI USA News

  • MIL-OSI USA: Senators Introduce Legislation to Support First Responders Diagnosed with Occupationally-Connected Cancers

    US Senate News:

    Source: United States Senator Kevin Cramer (R-ND)
    WASHINGTON, D.C. – Congress established the Department of Justice’s Public Safety Officers’ Benefits (PSOB) program in 1976 to provide monetary benefits to law enforcement officers, firefighters, and other first responders who become permanently disabled or pass away due to injuries sustained in the line of duty. While the program recognizes those who made the ultimate sacrifice due to 9/11-related cancers, it does not cover first responders who lose their lives due to other service-related cancers. 
    U.S. Senators Kevin Cramer (R-ND) and Amy Klobuchar (D-MN) introduced legislation to ensure all first responders who die or become disabled due to service-related cancers are covered under the PSOB program. 
    The Honoring Our Fallen Heroes Act is built on data indicating elevated cancer risks faced by first responders. A 2011 study by the State University of Buffalo and the National Institute for Occupational Safety and Health revealed significantly higher rates of brain cancer and Hodgkin’s lymphoma among law enforcement officers as compared to the general population. The bill aims to recognize these occupational risks as inherent to service, thereby categorizing cancer-related fatalities as line-of-duty deaths under the PSOB program.
    “Our first responders epitomize courage and selfless sacrifice, confronting both the immediate perils of their duty and lingering health risks associated with their service,” said Cramer. “The exposure to dangerous carcinogens happens on our behalf. When these heroes make the ultimate sacrifice, their families should not bear these burdens alone.”  
    “As we are seeing in California and throughout the country, our firefighters put their lives on the line every day to keep us safe, often exposing themselves to carcinogens that can have lethal long-term effects. It’s unacceptable that firefighters who succumb to cancer from work-related exposure or become permanently and totally disabled don’t receive the same treatment as others who die in the line of duty,” said Klobuchar. “That’s why I’m working with Senator Cramer to ensure that firefighters get the support they deserve. Our bipartisan legislation will honor the memory and sacrifice of St. Paul Fire Department Captain Mike Paidar and so many others who risk their lives in service of their communities.”
    “As Fire Chief of the Fargo Fire Department, I wholeheartedly support the Honoring Our Fallen Heroes Act, reintroduced by Senators Kevin Cramer and Amy Klobuchar,” said Fargo Fire Chief Steven Dirksen. “This crucial legislation extends benefits for service-related cancers to first responders nationwide, recognizing the risks faced by those who dedicate their lives to protecting others.”
    “Firefighters face danger every time they leave the fire station and face a significantly greater risk of being diagnosed with this devastating illness,” said Bismarck Rural Fire Chief Dustin Theurer. “This key legislation is crucial to support the men and women in the fire service and their families.”  
    The Honoring Our Fallen Heroes Act was reported unanimously out of the Senate Judiciary Committee last Congress.
    This legislation has garnered the endorsement of leading public safety organizations, including the International Association of Fire Fighters, Fraternal Order of Police, National Fallen Firefighters Foundation, Congressional Fire Services Institute, International Association of Fire Chiefs, National Volunteer Fire Council, National Association of Police Organizations, Major County Sheriffs of America, National Narcotics Officers’ Associations’ Coalition, National Fire Protection Association, and Federal Law Enforcement Officers Association.
    Additional cosponsors include U.S. Senators Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), Richard Blumenthal (D-CT), Chris Coons (D-DE), John Cornyn (R-TX), Ted Cruz (R-TX), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Mazie Hirono (D-HI), John Hoeven (R-ND), Jim Justice (R-WV), Mark Kelly (D-AZ), Ed Markey (D-MA), Alex Padilla (D-CA), Mike Rounds (R-SD), Adam Schiff (D-CA), Jeanne Shaheen (D-NH), Tim Sheehy (R-MT), Tina Smith (D-MN), Mark Warner (D-VA), Elizabeth Warren (D-MA), Peter Welch (D-VT), and Sheldon Whitehouse (D-RI).
    Click here for bill text. 

    MIL OSI USA News

  • MIL-OSI USA: Commissioner Kristin Johnson’s Keynote Address at the University of Chicago Law School: Charting the Future of Financial Regulation

    Source: US Commodity Futures Trading Commission

    Good afternoon. Thank you to Dean Miles, Professor Birdthistle and the broader University of Chicago Law School for the kind invitation to join you for today’s event. We can often learn a great deal about the future by looking at the past. About 4,000 years ago (c. 2000 B.C.E.), Phoenician sailors developed charts and observations of the Sun and stars. Early mariners’ compasses were inaccurate or inconsistent because they lacked an understanding of magnetic variation. Later, the astrolabe, sextant, chip log, gyroscopic compass, radar, and GPS replaced earlier, primitive tools.
    In remarks earlier this week at a blockchain event at the World Economic Forum in Davos, I explored rapidly advancing technologies—an area that has long been a central focus of my contributions as a lawyer in private practice, in-house counsel, an academic, and most recently, a financial market regulator at the CFTC.[1] Today, on the eve of the Commodity Futures Trading Commission’s (CFTC) 50th Anniversary, we stand, once again on the frontier—a frontier of technological development in markets—including increasingly advanced computing, predictive analytical models, and algorithmic trading, and digital trading, clearing and settlement.
    During the most recent past administration, the Securities Exchange Commission Divisions of Trading and Markets and of Investment Management announced rule amendments to shorten the standard settlement cycle for most broker-dealer transactions from two business days after the trade date (“T+2”) to one business day after the trade date (“T+1”)[2] marking faster, more efficient, less costly trading ushered in, in part, by digitization of trading market infrastructure. Many of our largest market participants have partnered with technology firms to migrate exceptional volumes of data including orders, quotes, trades, cancellations and settlement data to cloud-based storage.
    Executive Orders this week on AI and digital assets or cryptocurrency indicate the new administration’s intent to focus on these new technologies. As we prepare to hear from the new administration regarding solutions to address the intricacies of balancing responsible innovation with the critical goals of ensuring market integrity, market stability, and protection of vulnerable market participants, let’s keep top-of-mind the lessons of the past and the benefits of well-honed regulatory tools which aid us in navigating the sea of technological innovation set forth before us.
    Today, we will consider the two specific technologies at the center of the new administration’s Executive Orders issued yesterday—AI and crypto.
    Artificial Intelligence in Financial Markets
    Financial markets regulation is often defined by two salient questions—what should we regulate and, if we regulate, what should be the scope of regulation. Knowing that crypto technologies are a focus of my remarks, some of you might demand that we tailor these questions and simply focus on the legal standard for distinguishing among regulated products, namely securities and commodities, citing the debate surrounding the legal standard articulated by the Supreme Court of the United States in SCOTUS’s now (in)famous 1946 decision S.E.C. vs Howey,[3] explaining that investment contracts that involve an investment of money in a common enterprise with an expectation of profits to be derived from the efforts of others.
    Leaving this question aside for a moment and focusing on the macro issue, I would note an underlying premise of these two fundamental questions. It is presumed that regulators understand both the products and the markets that are the subject of regulation—that we are clear on the benefits as well as the risks and limitations posed by products, processes, and market structures introduced in our markets. In other words, we are well-informed and deeply engaged in discussions regarding the attributes of what we regulate. I would also share that, for me, this understanding informs “how” I think about regulation.
    The Ever-Expanding Universe of AI Use Cases
    AI has long served financial services firms. For decades, firms have integrated standard algorithms and earlier forms of machine learning in both external client-facing applications as well as internal operations.[4] Developers tout the potential for more nascent uses of AI to enhance critical risk management tools, “inform[ing] trading strategies by identifying patterns, optimizing execution, managing portfolio workflows, and assessing risk-return tradeoffs.”[5] According to proponents, deep learning through neural networks holds promise to simulate the multi-layered, complex decision-making capabilities of the human brain.
    Several years ago, the CFTC identified a number of AI use cases in our regulated markets:

    Trading (including market intelligence, robo-advisory, sentiment analysis, algorithmic trading, smart routing, and transactions)
    Risk Management (including margin and capital requirements, trade monitoring, fraud detection)
    Risk Assessments and Hedging
    Resource Optimization (including energy and computer power)
    RegTech – Applications that enhance or improve compliance and oversight activities (including surveillance, reporting)
    Compliance (including identity and customer validation, anti-money laundering, regulatory reporting)
    Books and Records (including automated trade histories from voice or text)
    Data Processing and Analytics
    Cybersecurity and Resilience
    Customer Service.[6]

    The ever-expanding universe of AI use cases impacts investment, trading, surveillance and compliance, fraud detection, cyber security and supervision and enforcement across the derivatives and broader financial markets. In discussing AI’s application across financial markets, a Treasury report released last month stated “some financial firms have been experimenting with Generative AI tools—to explore the capabilities of AI in enhancing existing processes.”[7]
    “Robo-advisors offer personalized investment advisory services, while AI-driven insights improve forecasting and trading process automation.”[8] The Treasury Department’s recent report on Artificial Intelligence in Financial Services also notes that “financial firms are increasingly using AI—and particularly experimenting with Generative AI—internal business operations, including but not limited to risk management, regulatory compliance, treasury management, fraud detection, and back-office functions.”[9]
    Risks and Challenges Remain
    Attendant risks associated with the increase in use of AI, however, deserves equal attention, particularly for regulators tasked with safeguarding the integrity and stability of financial markets and the global economy. In testimony before Congress and academic work prior to my service at the Commission, I have encouraged regulators and market participants to also consider the following risks fraud and market manipulation, bias and discrimination, and privacy and data protection risks.[10]
    As the Financial Stability Board recently explained, “many of the potential risks of AI may seem new, but when you look beneath the surface, they are strikingly similar to traditional financial risks. Risks that we are familiar with. We already have frameworks to assess concentration risk, third party dependence and interconnectedness. This is good news. But potential new forms of interconnectedness in the financial system may emerge.”[11]
    To that end, it will be imperative for regulators to understand, track, and be poised to address emerging cybersecurity, third-party, concentration, and human capital risks.

    Cybersecurity

    Few would disagree that cybersecurity attacks and related disruptions pose one of the most pernicious and persistent threats to global financial markets.  In a timely and critical report on cybersecurity and AI, Treasury notes that “complex and persistent cyber threats continue to grow, and some experts from financial institutions believe the availability of advanced AI tools such as Generative AI will, at least initially, give threat actors an upper hand.”[12] Following a recent attack that disrupted clearing and settlement in derivatives markets in January of 2023, the Commission adopted a proposed rule enhancing operational resilience for swap dealers. In parallel to this rule, the Market Risk Advisory Committee that I sponsor, encouraged the Commission to consider comprehensive reform and consider the need for parallel reforms for our derivatives clearing organizations. While our principles-based approach to regulation enables dynamic application of existing rules, we must be ever vigilant to ensure that regulation is keeping pace and fit-for-purpose. I am looking forward to advancing these initiatives.

    Third-Party Risk Management

    Financial market regulators have, for several years, noted the challenges of relying on third parties for critical services. While regulated entities may have robust tools to monitor their own activities, our market participants increasingly partner with and rely upon third parties for critical services. Third party critical service providers may not have the comprehensive compliance processes and procedures the regulated entities have. The cascading impact of disruption may impact the many financial institutions that rely on the same critical third-party service providers, potentially engendering systemic risk concerns.[13]

    Concentration Risk

    The increasing reliance on third party service providers and the limited number of critical third-party service providers creates concentration risk. While the largest financial services firms in the world may have less exposure to these threats, smaller and medium sized firms without the technical expertise to develop high-cost technologies may need to rely on third parties and may also adapt these technologies in ways not anticipated by original developers, creating additional frictions.
    At the CFTC, we have been engaged in a longstanding dialogue with our market participants and our colleagues at other federal regulatory agencies to analyze and work to address these concerns—and we plan to continue the conversation.
    Last year, our staff released a request for comment, soliciting data regarding our market participants’ increasing use of AI.[14] We have not been alone in this work. The U.S. Department of Treasury similarly issued a request for information.[15] I worked with staff at the CFTC and staff at Treasury prior to and following these RFIs. The important results of these forms of engagement have only scratched the surface, given that “[o]ne of the most significant learnings from the comment responses is the reported ubiquity of AI usage—in particular traditional AI such as algorithms or machine learning—in virtually every function of financial firms, ranging from compliance management, internal operations, underwriting, customer service, treasury management, and product development and marketing.”[16]
    A Roadmap for the Future
    I have advanced, and will continue to advance, several policy initiatives over the course of my time at the Commission.
    Collaboration is Key

    Continued Dialogue

    There is still much work to be done. Continuing conversations with interested stakeholders across the board is the only way to ensure that we are learning in real time and incorporating that knowledge into sensible actions, both within the regulatory sphere and in the private sector.
    This dialogue “create[s] a framework that simultaneously serves two goals. The first is protecting the integrity of the trading markets so that they fairly serve the interests of participants and the larger public. The second is welcoming and encouraging the development and application of the newest technologies with responsible guardrails. In this way, we can ensure that these technologies help assure that the United States financial markets remain leaders in financial innovation in the years ahead.”[17]

    Interagency coordination

    In the December Treasury report, a brief discussion of the existing and proposed frameworks related to the use of AI in financial services is more than two pages long.[18] And that is just the first layer before adding state laws on AI, which can differ from each other and from federal frameworks, and finally, international standards.
    Of course, each regulator has its own specific mission and mandate. However, regulators must work together to harmonize regulation.[19]
    The Financial Stability Oversight Council echoes this recommendation in its annual report: “The Council supports interagency development of expertise to analyze and monitor potential systemic risks associated with the use of AI in the financial services sector, as well as further inter-agency discussions on developments in AI and associated financial stability risks.”[20]
    FSOC also recognizes the need for collaboration on a global scale. “The U.S. financial system is part of a global network and could potentially be vulnerable to shocks that originate abroad. The Council supports continued engagement with international counterparts on the risks and benefits of AI in financial services.”[21]
    Enhanced Resources for An Enhanced Mission

    Resources Must Keep Pace with Demand

    The CFTC is small but mighty, and continues to punch above its weight on all matters that come before it. In 2015 amidst the Dodd-Frank regulatory mandates, the CFTC had completed a greater percentage of its Dodd-Frank rules than other domestic financial regulatory agencies despite its smaller staff.[22] The same has been true in the past few years, as the Commission has taken on an increased role in addressing digital assets, while continuing its existing work, without any increase in budget.
    As the CFTC oversees increasingly complex markets, and must identify threats from increasingly sophisticated bad actors, it must have the resources to continue to do so effectively. I feel it important to reiterate that “the Commission would benefit from increased resources dedicated to enabling several of the Divisions within the Commission to prepare for and meet the challenges of regulating innovative trading, clearing, and settlement technologies, among other changes to operational infrastructure that merits consideration.”[23]

    An AI Fraud Task Force to Tackle Fraud Full Force

    I have expressly called for the CFTC Division of Enforcement to create an AI Fraud Task Force. While there may be divergent opinions on the benefits and risks engendered by AI, preventing bad actors from using AI to commit fraud against consumers and potentially market participants should be common ground. “Policing derivatives markets is one of the cornerstones of the CFTC’s mission. We must adapt our surveillance technologies and enforcement penalties to keep pace with the rapidly evolving innovation that characterizes global financial markets.”[24]
    A Future Framework for Digital Asset Markets 
    A second Executive Order released yesterday established a Presidential Working Group on Digital Asset Markets within the National Economic Council and appointed a Special Advisor for AI and Crypto to serve as Chairman of the PWG.
    Meaningful regulation in any market begins with identifying and developing standards to address certain risk management concerns. Many of the risks in the digital asset markets are well known.Learning from the lessons of the past few years, I am hopeful that any action to establish digital asset regulation include needed clarity regarding the application of rules and protections that safeguard the integrity of our markets. These regulations often also serve the organizations that implement them well.
    Digital asset market regulation should incorporate the same governance principles that have long governed our markets. Evidence of recent crises in digital asset markets underscore the benefits of strong corporate governance, rules governing conflicts of interest, and separation of customer property to preserve customer assets as part of a broader default management, recovery, and resilience strategy.

    Segregation of Customer Assets

    Our markets are built on trust. Any market that we supervise should have measures in place to protect the trust and confidence of customers and counterparties. Such recovery, resilience, and default risk management approaches should be applicable across markets that engender similar risks. 
    At the core these default-focused efforts create protections that preserve customer assets in the event of a liquidity or solvency crisis. The measures also guard against the commingling of customer funds witnessed in the 2022 crypto crises.[25] 
    The Commodity Exchange Act (CEA) expressly requires separation of customer funds in certain contexts. Section 4d(a)(2) of the CEA requires each FCM to segregate from its own assets all money, securities, and other property deposited by futures customers to margin, secure, or guarantee futures contracts and options on futures contracts traded on designated contract markets.[26] As the PGW takes up the mantle, preservation of customer capital must be a central and key issue. 

    Governance

    Basic corporate governance and internal controls should form part of the health and welfare of any market participant subject to the Commission’s supervision. Among other obligations, our regulations uniformly call for registered entities to have boards of directors, including independent directors, risk management committees, and executive officers that include chief compliance and risk officers who possess the requisite skills and expertise.[27]
    We continuously refine and update our governance standards as our markets evolve. In 2023, the Commission unanimously (please confirm) approved a final rule requiring derivatives clearing organizations (DCOs) to establish and consult with one or more risk management committees (RMCs) comprised of clearing members and customers of clearing members on matters that could materially affect the risk profile of the DCO. Section 5b(c)(2) of the CEA establishes core principles with which a DCO must comply in order to be registered and to maintain registration as a DCO (DCO Core Principles),1 and part 39 of the Commission’s regulations implement the DCO Core Principles. DCO Core Principle O requires a DCO to establish governance arrangements that are transparent, fulfill public interest requirements, and permit the consideration of the views of owners and participants.2 Regulation § 39.24 implements this aspect of Core Principle O by providing minimum requirements regarding the substance and form of a DCO’s governance arrangements.
    In the earlier referenced 2023 final risk governance rule, the Commission adopted minimum requirements for RMC composition and rotation, and required DCOs to establish and enforce fitness standards for RMC members. The Commission adopted requirements for DCOs to maintain written policies and procedures governing the RMC consultation process and the role of RMC members. Finally, the Commission adopted requirements for DCOs to establish one or more market participant risk advisory working groups (RWGs) that must convene at least twice per year, and adopt written policies and procedures related to the formation and role of the RWG.

    Compliance with AML/KYC laws and regulations

    Our experience regulating financial markets has demonstrated that strong AML/KYC regulations protects not only market integrity and stability, but also national security interests. These regulations are foundational and define the scope of who is permitted to actively engage our markets and, in many instances, the broader financial services and banking sector of our economy.
    Concluding with A Word Collaboration
    One of the greatest strengths of our government and, more specifically, the federal agencies that supervise many of the largest global financial market participants in the world is the intellectual leadership that our market regulators demonstrate. Our financial market regulations enhance efficiency, reduce the costs of raising capital, attract global investments, and serve as a model for regulation around the world. Our successful regulation is due, in large part, to our engagement with markets and the global regulatory community.
    As I noted in keynote remarks last year at NYU’s AI Convening, it is imperative for government and regulators to demonstrate a deep and abiding commitment to developing well-informed, research-based, data-driven regulatory solutions that are well-tailored, fit-for-purpose interventions. This requires a multi-stakeholder, public-private partnership that may include for advancing technologies developers, market participants, academics, government and industry researchers, diverse regulators across the financial markets, and public interest organizations.[28]
    Last year, in response to a staff advisory on the use of AI in CFTC-regulated markets,[29] I noted that “[w]orking in partnership with market participants, we are able to enhance our ability to accomplish our mission of ensuring market stability and market integrity. .”[30]
    I started this week in Davos, Switzerland, where I shared remarks at a conference about blockchain and AI, and about how the World Economic Forum Annual Meeting theme of “Collaboration for the Intelligent Age” is relevant to my work at the CFTC on these topics. World leaders in government, business, and civil society are still there, discussing the most pressing issues facing our global markets and broader societies, and trying to solve problems on a global scale. Nowhere is that more salient than in the United States, as we are close out the first week of a new executive administration.
    When we reflect on the future of finance, we must think back to the lessons learned as markets navigated sustained periods of extreme distress. Collaboration has served as one of the most important tools in our toolkit.
    The creation of the Financial Stability Oversight Council has proved a valuable source for convening the heads of financial market regulators across our government can carefully identifying and addressing anticipated systemic risk concerns. In addition to collaboration across market and prudential regulators, efforts by the SEC and CFTC to navigate implementation of the Dodd-Frank Act rules offers a second example of successful collaboration among market regulators. The discussions regarding regulation of AI, crypto, and other novel and emerging technologies should benefit from similar collaboration across regulators authority and across the aisle.
    Navigating difficult conditions requires focus, discipline, leadership and a steady hand at the helm. In recent years, our markets have navigated the onset of a global pandemic, geopolitical conflicts, sustained inflation.
    I am committed to working together to achieve this goal. As we enter this new year and new administration, collaboration will be as important as ever to achieve the benefits of scale and take advantage of all that innovation has to offer financial markets.
    Simply stated, and echoing this year’s World Economic Forum theme at Davos, we must find a path to collaboration in an intelligent age.

    [3] 328 U.S. 293 (1946).

    [5] Treasury December Report at 15.

    [7] Treasury December Report at 14.

    [8] Treasury December Report at 15.

    [9] Treasury December Report at 16.

    [13] Treasury December Report at 25.

    [16] See Treasury December Report.

    [18] Treasury December Report at 30.

    [19] “While many financial firms operating in the financial services sector are subject to laws and regulations that are technology-agnostic and can apply to AI technologies, respondents noted different regulatory standards among financial firms for the same activities.” Treasury December Report at 28.

    [25] See 1, 17 C.F.R. Pt. 1 (segregation of futures customer funds); 17 C.F.R. Pt. 22 (segregation of swaps customer funds); 17 C.F.R. Pt. 30 (segregation of foreign futures customer funds).

    [26] 7 U.S.C. § 6d(a)(2).

    MIL OSI USA News